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Free Online Federal Tax Filing 2012

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Free Online Federal Tax Filing 2012

Free online federal tax filing 2012 1. Free online federal tax filing 2012   Tax Withholding for 2014 Table of Contents Introduction Useful Items - You may want to see: Salaries and WagesDetermining Amount of Tax Withheld Using Form W-4 Completing Form W-4 and Worksheets Getting the Right Amount of Tax Withheld Rules Your Employer Must Follow Exemption From Withholding Supplemental Wages Penalties Tips Taxable Fringe BenefitsSpecial rule. Free online federal tax filing 2012 Exceptions. Free online federal tax filing 2012 Sick Pay Pensions and AnnuitiesPeriodic Payments Nonperiodic Payments Eligible Rollover Distributions Choosing Not To Have Income Tax Withheld Gambling WinningsException. Free online federal tax filing 2012 Identical wagers. Free online federal tax filing 2012 Unemployment Compensation Federal Payments Backup WithholdingTaxpayer identification number. Free online federal tax filing 2012 Underreported interest or dividends. Free online federal tax filing 2012 Introduction This chapter discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. Free online federal tax filing 2012 This chapter explains in detail the rules for withholding tax from each of these types of income. Free online federal tax filing 2012 The discussion of salaries and wages includes an explanation of how to complete Form W-4. Free online federal tax filing 2012 This chapter also covers backup withholding on interest, dividends, and other payments. Free online federal tax filing 2012 Useful Items - You may want to see: Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request See chapter 5 of this publication for information about getting these publications and forms. Free online federal tax filing 2012 Salaries and Wages Income tax is withheld from the pay of most employees. Free online federal tax filing 2012 Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Free online federal tax filing 2012 It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Free online federal tax filing 2012 See Supplemental Wages , later, for definitions of accountable and nonaccountable plans. Free online federal tax filing 2012 If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Free online federal tax filing 2012 This is explained under Exemption From Withholding , later. Free online federal tax filing 2012 You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Free online federal tax filing 2012 If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed in chapter 2. Free online federal tax filing 2012 Military retirees. Free online federal tax filing 2012   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. Free online federal tax filing 2012 Household workers. Free online federal tax filing 2012   If you are a household worker, you can ask your employer to withhold income tax from your pay. Free online federal tax filing 2012 A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Free online federal tax filing 2012   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Free online federal tax filing 2012 If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed in chapter 2. Free online federal tax filing 2012 Farmworkers. Free online federal tax filing 2012   Generally, income tax is withheld from your cash wages for work on a farm unless your employer both: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. Free online federal tax filing 2012 Differential wage payments. Free online federal tax filing 2012   When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Free online federal tax filing 2012 Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. Free online federal tax filing 2012 The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Free online federal tax filing 2012 Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. Free online federal tax filing 2012 The amount you earn in each payroll period. Free online federal tax filing 2012 The information you give your employer on Form W-4. Free online federal tax filing 2012 Form W-4 includes four types of information that your employer will use to figure your withholding. Free online federal tax filing 2012 Whether to withhold at the single rate or at the lower married rate. Free online federal tax filing 2012 How many withholding allowances you claim (each allowance reduces the amount withheld). Free online federal tax filing 2012 Whether you want an additional amount withheld. Free online federal tax filing 2012 Whether you are claiming an exemption from withholding in 2014. Free online federal tax filing 2012 See Exemption From Withholding , later. Free online federal tax filing 2012 Note. Free online federal tax filing 2012 You must specify a filing status and a number of withholding allowances on Form W-4. Free online federal tax filing 2012 You cannot specify only a dollar amount of withholding. Free online federal tax filing 2012 New Job When you start a new job, you must fill out a Form W-4 and give it to your employer. Free online federal tax filing 2012 Your employer should have copies of the form. Free online federal tax filing 2012 If you need to change the information later, you must fill out a new form. Free online federal tax filing 2012 If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. Free online federal tax filing 2012 You may be able to avoid overwithholding if your employer agrees to use the part-year method. Free online federal tax filing 2012 See Part-Year Method , later, for more information. Free online federal tax filing 2012 Employee also receiving pension income. Free online federal tax filing 2012   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Free online federal tax filing 2012 However, you can choose to split your withholding allowances between your pension and job in any manner. Free online federal tax filing 2012 Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. Free online federal tax filing 2012 When this happens, you may need to give your employer a new Form W-4 to change your withholding status or number of allowances. Free online federal tax filing 2012 If the changes reduce the number of allowances you are allowed to claim or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. Free online federal tax filing 2012 See Marital Status (Line 3 of Form W-4) and Withholding Allowances (Line 5 of Form W-4) , later. Free online federal tax filing 2012 Generally, you can submit a new Form W-4 whenever you wish to change your withholding allowances for any other reason. Free online federal tax filing 2012 See Table 1-1 for examples of personal and financial changes you should consider. Free online federal tax filing 2012 Table 1-1. Free online federal tax filing 2012 Personal and Financial Changes Factor Examples Lifestyle change Marriage Divorce Birth or adoption of child Loss of an exemption Purchase of a new home Retirement Filing chapter 11 bankruptcy Wage income You or your spouse start or stop working, or start or stop a second job Change in the amount of taxable income not subject to withholding Interest income Dividends Capital gains Self-employment income IRA (including certain Roth  IRA) distributions Change in the amount of adjustments to income IRA deduction Student loan interest deduction Alimony expense Change in the amount of itemized deductions or tax credits Medical expenses Taxes Interest expense Gifts to charity Job expenses Dependent care expenses Education credit Child tax credit Earned income credit If you change the number of your withholding allowances, you can request that your employer withhold using the Cumulative Wage Method , explained later. Free online federal tax filing 2012 Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too much or too little. Free online federal tax filing 2012 If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Free online federal tax filing 2012 You can get a blank Form W-4 from your employer or print the form from IRS. Free online federal tax filing 2012 gov. Free online federal tax filing 2012 You should try to have your withholding match your actual tax liability. Free online federal tax filing 2012 If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. Free online federal tax filing 2012 If too much tax is withheld, you will lose the use of that money until you get your refund. Free online federal tax filing 2012 Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. Free online federal tax filing 2012 See Table 1-1 for examples. Free online federal tax filing 2012 Note. Free online federal tax filing 2012 You cannot give your employer a payment to cover federal income tax withholding on salaries and wages for past pay periods or a payment for estimated tax. Free online federal tax filing 2012 When Should You Check Your Withholding? The earlier in the year you check your withholding, the easier it is to get the right amount of tax withheld. Free online federal tax filing 2012 You should check your withholding when any of the following situations occur. Free online federal tax filing 2012 You receive a paycheck stub (statement) covering a full pay period in 2014, showing tax withheld based on 2014 tax rates. Free online federal tax filing 2012 You prepare your 2013 tax return and get a: Big refund, or Balance due that is: More than you can comfortably pay, or Subject to a penalty. Free online federal tax filing 2012 There are changes in your life or financial situation that affect your tax liability. Free online federal tax filing 2012 See Table 1-1. Free online federal tax filing 2012 There are changes in the tax law that affect your tax liability. Free online federal tax filing 2012 How Do You Check Your Withholding? You can use the worksheets and tables in this publication to see if you are having the right amount of tax withheld. Free online federal tax filing 2012 You can also use the IRS Withholding calculator at www. Free online federal tax filing 2012 irs. Free online federal tax filing 2012 gov/individuals. Free online federal tax filing 2012 If you use the worksheets and tables in this publication, follow these steps. Free online federal tax filing 2012 Fill out Worksheet 1-5 to project your total federal income tax liability for 2014. Free online federal tax filing 2012 Fill out Worksheet 1-7 to project your total federal withholding for 2014 and compare that with your projected tax liability from Worksheet 1-5. Free online federal tax filing 2012 If you are not having enough tax withheld, line 6 of Worksheet 1-7 will show you how much more to have withheld each payday. Free online federal tax filing 2012 For ways to increase the amount of tax withheld, see How Do You Increase Your Withholding? If line 5 of Worksheet 1-7 shows that you are having more tax withheld than necessary, see How Do You Decrease Your Withholding, for ways to decrease the amount of tax you have withheld each payday. Free online federal tax filing 2012 How Do You Increase Your Withholding? There are two ways to increase your withholding. Free online federal tax filing 2012 You can: Decrease the number of allowances you claim on Form W-4, or Enter an additional amount that you want withheld from each paycheck on Form W-4. Free online federal tax filing 2012 Requesting an additional amount withheld. Free online federal tax filing 2012   You can request that an additional amount be withheld from each paycheck by following these steps. Free online federal tax filing 2012 Complete Worksheets 1-5 and 1-7. Free online federal tax filing 2012 Complete a new Form W-4 if the amount on Worksheet 1-7, line 5: Is more than you want to pay with your tax return or in estimated tax payments throughout the year, or Would cause you to pay a penalty when you file your tax return for 2014. Free online federal tax filing 2012 Enter on your new Form W-4, the same number of withholding allowances your employer now uses for your withholding. Free online federal tax filing 2012 This is the number of allowances you entered on the last Form W-4 you gave your employer. Free online federal tax filing 2012 Enter on your new Form W-4, the amount from Worksheet 1-7, line 6. Free online federal tax filing 2012 Give your newly completed Form W-4 to your employer. Free online federal tax filing 2012   If you have this additional amount withheld from your pay each payday, you should avoid owing a large amount at the end of the year. Free online federal tax filing 2012 Example. Free online federal tax filing 2012 Early in 2014, Steve Miller used Worksheets 1-5, 1-6, and 1-7 to project his 2014 tax liability ($4,316) and his withholding for the year ($3,516). Free online federal tax filing 2012 Steve's tax will be underwithheld by $800 ($4,316 − $3,516). Free online federal tax filing 2012 His choices are to pay this amount when he files his 2014 tax return, make estimated tax payments, or increase his withholding now. Free online federal tax filing 2012 Steve gets a new Form W-4 from his employer, who tells him that there are 50 paydays remaining in 2014. Free online federal tax filing 2012 Steve completes the new Form W-4 as before, entering the same number of withholding allowances as before, but, in addition, entering $16 ($800 ÷ 50) on the form as the additional amount to be withheld from his pay each payday. Free online federal tax filing 2012 He gives the completed form to his employer. Free online federal tax filing 2012 What if I have more than one job or my spouse also has a job?   You are more likely to need to increase your withholding if you have more than one job or if you are married filing jointly and your spouse also works. Free online federal tax filing 2012 If this is the case, you can increase your withholding for one or more of the jobs. Free online federal tax filing 2012   You can apply the amount on Worksheet 1-7, line 5, to only one job or divide it between the jobs any way you wish. Free online federal tax filing 2012 For each job, determine the extra amount that you want to apply to that job and divide that amount by the number of paydays remaining in 2014 for that job. Free online federal tax filing 2012 This will give you the additional amount to enter on the Form W-4 you will file for that job. Free online federal tax filing 2012 You need to give your employer a new Form W-4 for each job for which you are changing your withholding. Free online federal tax filing 2012 Example. Free online federal tax filing 2012 Meg Green works in a store and earns $46,000 a year. Free online federal tax filing 2012 Her husband, John, works full-time in manufacturing and earns $68,000 a year. Free online federal tax filing 2012 In 2014, they will also have $184 in taxable interest and $1,000 of other taxable income. Free online federal tax filing 2012 They expect to file a joint income tax return. Free online federal tax filing 2012 Meg and John complete Worksheets 1-5, 1-6, and 1-7. Free online federal tax filing 2012 Line 5 of Worksheet 1-7 shows that they will owe an additional $4,459 after subtracting their withholding for the year. Free online federal tax filing 2012 They can divide the $4,459 any way they want. Free online federal tax filing 2012 They can enter an additional amount on either of their Forms W-4, or divide it between them. Free online federal tax filing 2012 They decide to have the additional amount withheld from John's wages, so they enter $91 ($4,459 ÷ 49 remaining paydays) on his Form W-4. Free online federal tax filing 2012 Both claim the same number of allowances as before. Free online federal tax filing 2012 How Do You Decrease Your Withholding? If your completed Worksheets 1-5 and 1-7 show that you may have more tax withheld than your projected tax liability for 2014, you may be able to decrease your withholding. Free online federal tax filing 2012 There are two ways to do this. Free online federal tax filing 2012 You can: Decrease any additional amount you are having withheld, or Increase the number of allowances you claim on Form W-4. Free online federal tax filing 2012 You can claim only the number of allowances to which you are entitled. Free online federal tax filing 2012 To see if you can decrease your withholding by increasing your allowances, see the Form W-4 instructions and the rest of this publication. Free online federal tax filing 2012 Increasing the number of allowances. Free online federal tax filing 2012   Figure and increase the number of withholding allowances you can claim as follows. Free online federal tax filing 2012 On a new Form W-4, complete the Personal Allowances Worksheet. Free online federal tax filing 2012 If you plan to itemize deductions, claim adjustments to income, or claim tax credits, complete a new Deductions and Adjustments Worksheet. Free online federal tax filing 2012 If you plan to claim tax credits, see Converting Credits to Withholding Allowances, later. Free online federal tax filing 2012 If you meet the criteria on line H of the Form W-4 Personal Allowances Worksheet, complete a new Two-Earners/Multiple Jobs Worksheet. Free online federal tax filing 2012 If the number of allowances you can claim on Form W-4, is different from the number you already are claiming, give the newly completed Form W-4 to your employer. Free online federal tax filing 2012 Converting Credits to Withholding Allowances Table 1-2 , later, shows many of the tax credits you may be able to use to decrease your withholding. Free online federal tax filing 2012 The Form W-4 Personal Allowances Worksheet provides only rough adjustments for the child and dependent care credit and the child tax credit. Free online federal tax filing 2012 Complete Worksheet 1-8 to figure these credits more accurately and also take other credits into account. Free online federal tax filing 2012 Include the amount from line 12 of Worksheet 1-8 in the total on line 5 of the Deductions and Adjustments Worksheet. Free online federal tax filing 2012 Then complete the Deductions and Adjustments Worksheet and the rest of Form W-4. Free online federal tax filing 2012 If you take the child and dependent care credit into account on Worksheet 1-8, enter -0- on line F of the Personal Allowances Worksheet. Free online federal tax filing 2012 If you take the child tax credit into account on Worksheet 1-8, enter -0- on line G of the Personal Allowances Worksheet. Free online federal tax filing 2012 Example. Free online federal tax filing 2012 Brett and Alyssa Davis are married and expect to file a joint return for 2014. Free online federal tax filing 2012 Their expected taxable income from all sources is $68,000. Free online federal tax filing 2012 They expect to have $15,900 of itemized deductions. Free online federal tax filing 2012 Their projected tax credits include a child and dependent care credit of $960 and an adoption credit of $1,500. Free online federal tax filing 2012 The Davis' complete Worksheet 1-8, as follows, to see whether they can convert their tax credits into additional withholding allowances. Free online federal tax filing 2012 Line 1, expected child and dependent care credit—$960. Free online federal tax filing 2012 Line 9, expected adoption credit—$1,500. Free online federal tax filing 2012 Line 10, total estimated tax credits—$2,460. Free online federal tax filing 2012 Line 11. Free online federal tax filing 2012 Their combined total income from all sources, $68,000, falls between $42,001 and $98,000 on the table for married filing jointly or qualifying widow(er). Free online federal tax filing 2012 The number to the right of this range is 6. Free online federal tax filing 2012 7. Free online federal tax filing 2012 Line 12, multiply line 10 by line 11—$16,482. Free online federal tax filing 2012 Then the Davis' complete the Form W-4 worksheets. Free online federal tax filing 2012 Because they choose to account for their child and dependent care credit on the Deductions and Adjustments Worksheet, they enter -0- on line F of the Personal Allowances Worksheet and figure a new total for line H. Free online federal tax filing 2012 They take the result on line 12 of Worksheet 1-8, add it to their other adjustments on line 5 of the Form W-4 Deductions and Adjustments Worksheet, and complete the Form W-4 worksheets. Free online federal tax filing 2012 When Will Your New Form W-4 Go Into Effect? If the change is for the current year, your employer must put your new Form W-4 into effect no later than the start of the first payroll period ending on or after the 30th day after the day on which you give your employer your revised Form W-4. Free online federal tax filing 2012 If the change is for next year, your new Form W-4 will not take effect until next year. Free online federal tax filing 2012 Retirees Returning to the Workforce When you first began receiving your pension, you told the payer how much tax to withhold, if any, by completing Form W-4P, Withholding Certificate for Pension or Annuity Payments (or similar form). Free online federal tax filing 2012 However, if your retirement pay is from the military or certain deferred compensation plans, you completed Form W-4 instead of Form W-4P. Free online federal tax filing 2012 You completed either form based on your projected income at that time. Free online federal tax filing 2012 Now that you are returning to the workforce, your new Form W-4 (given to your employer) and your Form W-4 or W-4P (on file with your pension plan) must work together to determine the correct amount of withholding for your new amount of income. Free online federal tax filing 2012 The worksheets that come with Forms W-4 and W-4P are basically the same, so you can use either set of worksheets to figure out how many withholding allowances you are entitled to claim. Free online federal tax filing 2012 Start off with the Personal Allowances Worksheet. Free online federal tax filing 2012 Then, if you will be itemizing your deductions, claiming adjustments to income, or claiming tax credits when you file your tax return, complete the Deductions and Adjustments Worksheet. Free online federal tax filing 2012 The third worksheet is the most important for this situation. Free online federal tax filing 2012 Form W-4 calls it the Two-Earners/Multiple Jobs Worksheet, Form W-4P calls it the Multiple Pensions/More-Than-One-Income Worksheet—both are the same. Free online federal tax filing 2012 If you have more than one source of income, in order to have enough withholding to cover the tax on your higher income, you may need to claim fewer withholding allowances or request your employer to withhold an additional amount from each paycheck. Free online federal tax filing 2012 Once you have figured out how many allowances you are entitled to claim, look at the income from both your pension and your new job, and how often you receive payments. Free online federal tax filing 2012 It is your decision how to divide up your withholding allowances between these sources of income. Free online federal tax filing 2012 For example, you may want to “take home” most of your weekly paycheck to use as spending money and use your monthly pension to “pay the bills. Free online federal tax filing 2012 ” In that case, change your Form W-4P to zero allowances and claim all that you are entitled to on your Form W-4. Free online federal tax filing 2012 There are a couple of ways you can get a better idea of how much tax will be withheld when claiming a certain number of allowances. Free online federal tax filing 2012 Use the withholding tables in Publication 15 (Circular E), Employer's Tax Guide. Free online federal tax filing 2012 Contact your pension provider and your employer's payroll department. Free online federal tax filing 2012 And remember, this is not a final decision. Free online federal tax filing 2012 If you do not get the correct amount of withholding with the first Forms W-4 and W-4P you submit, you should refigure your allowances (or divide them differently) using the information and worksheets in this publication, or the resources mentioned above. Free online federal tax filing 2012 You should go through this same process each time your life situation changes, whether it be for personal or financial reasons. Free online federal tax filing 2012 You may need more tax withheld, or you may need less. Free online federal tax filing 2012 Table 1-2. Free online federal tax filing 2012 Tax Credits for 2014 For more information about the . Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012 See . Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012 Adoption credit Form 8839 instructions Child and dependent care expenses, credit for Publication 503, Child and Dependent Care Expenses Child tax credit (including the additional child tax credit) Instructions for Form 1040 or Form 1040A Earned income credit Publication 596, Earned Income Credit Education credits Publication 970, Tax Benefits for Education Elderly or the disabled, credit for the Publication 524, Credit for the Elderly or the Disabled Foreign tax credit (except any credit that applies to wages not subject to U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 income tax withholding because they are subject to income tax withholding by a foreign country) Publication 514, Foreign Tax Credit for Individuals General business credit Form 3800, General Business Credit Mortgage interest credit Publication 530, Tax Information for First-Time Homeowners Qualified electric vehicle passive activity credit Form 8834 Prior year minimum tax, credit for (if you paid alternative minimum tax in an earlier year) Form 8801 instructions Retirement savings contributions credit (saver's credit) Publication 590, Individual Retirement Arrangements (IRAs) Tax credit bonds, credit to holders of Form 8912 instructions Completing Form W-4 and Worksheets When reading the following discussion, you may find it helpful to refer to Form W-4. Free online federal tax filing 2012 Marital Status There is a lower withholding rate for people who qualify to check the “Married” box on line 3 of Form W-4. Free online federal tax filing 2012 Everyone else must have tax withheld at the higher single rate. Free online federal tax filing 2012 Single. Free online federal tax filing 2012   You must check the “Single” box if any of the following applies. Free online federal tax filing 2012 You are single. Free online federal tax filing 2012 If you are divorced, or separated from your spouse under a court decree of separate maintenance, you are considered single. Free online federal tax filing 2012 You are married, but neither you nor your spouse is a citizen or resident of the United States. Free online federal tax filing 2012 You are married, either you or your spouse is a nonresident alien, and you have not chosen to have that person treated as a resident alien for tax purposes. Free online federal tax filing 2012 For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. Free online federal tax filing 2012 Married. Free online federal tax filing 2012   You qualify to check the “Married” box if any of the following applies. Free online federal tax filing 2012 You are married and neither you nor your spouse is a nonresident alien. Free online federal tax filing 2012 You are considered married for the whole year even if your spouse died during the year. Free online federal tax filing 2012 You are married and either you or your spouse is a nonresident alien who has chosen to be treated as a resident alien for tax purposes. Free online federal tax filing 2012 For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. Free online federal tax filing 2012 You expect to be able to file your return as a qualifying widow or widower. Free online federal tax filing 2012 You usually can use this filing status if your spouse died within the previous 2 years and you provide more than half the cost of keeping up a home for the entire year that was the main home for you and your child whom you can claim as a dependent. Free online federal tax filing 2012 However, you must file a new Form W-4 showing your filing status as single by December 1 of the last year you are eligible to file as a qualifying widow or widower. Free online federal tax filing 2012 For more information on this filing status, see Qualifying Widow(er) With Dependent Child under Filing Status in Publication 501, Exemptions, Standard Deduction, and Filing Information. Free online federal tax filing 2012 Married, but withhold at higher single rate. Free online federal tax filing 2012   Some married people find that they do not have enough tax withheld at the married rate. Free online federal tax filing 2012 This can happen, for example, when both spouses work. Free online federal tax filing 2012 To avoid this, you can check the “Married, but withhold at higher Single rate” box (even if you qualify for the married rate). Free online federal tax filing 2012 Also, you may find that more tax is withheld if you fill out the Two-Earners/Multiple Jobs Worksheet, explained later. Free online federal tax filing 2012 Withholding Allowances The more allowances you claim on Form W-4, the less income tax your employer will withhold. Free online federal tax filing 2012 You will have the most tax withheld if you claim “0” allowances. Free online federal tax filing 2012 The number of allowances you can claim depends on the following factors. Free online federal tax filing 2012 How many exemptions you can take on your tax return. Free online federal tax filing 2012 Whether you have income from more than one job. Free online federal tax filing 2012 What deductions, adjustments to income, and credits you expect to have for the year. Free online federal tax filing 2012 Whether you will file as head of household. Free online federal tax filing 2012 If you are married (filing jointly), it also depends on whether your spouse also works and claims any allowances on his or her own Form W-4. Free online federal tax filing 2012 Or, if married filing separately, whether or not your spouse also works. Free online federal tax filing 2012 Form W-4 worksheets. Free online federal tax filing 2012    Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Free online federal tax filing 2012 The worksheets are for your own records. Free online federal tax filing 2012 Do not give them to your employer. Free online federal tax filing 2012   Complete only one set of Form W-4 worksheets, no matter how many jobs you have. Free online federal tax filing 2012 If you are married and will file a joint return, complete only one set of worksheets for you and your spouse, even if you both earn wages and each must give Form W-4 to your employers. Free online federal tax filing 2012 Complete separate sets of worksheets only if you and your spouse will file separate returns. Free online federal tax filing 2012   If you are not exempt from withholding (see Exemption From Withholding , later), complete the Personal Allowances Worksheet on page 1 of the form. Free online federal tax filing 2012 Also, use the worksheets on page 2 of the form to adjust the number of your withholding allowances for itemized deductions and adjustments to income, and for two-earner or multiple-job situations. Free online federal tax filing 2012 If you want to adjust the number of your withholding allowances for certain tax credits, use the Deductions and Adjustments Worksheet on page 2 of Form W-4, even if you do not have any deductions or adjustments. Free online federal tax filing 2012   Complete all worksheets that apply to your situation. Free online federal tax filing 2012 The worksheets will help you figure the maximum number of withholding allowances you are entitled to claim so that the amount of income tax withheld from your wages will match, as closely as possible, the amount of income tax you will owe at the end of the year. Free online federal tax filing 2012 Multiple jobs. Free online federal tax filing 2012   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Free online federal tax filing 2012 Then split your allowances between the Forms W-4 for each job. Free online federal tax filing 2012 You cannot claim the same allowances with more than one employer at the same time. Free online federal tax filing 2012 You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Free online federal tax filing 2012 Married individuals. Free online federal tax filing 2012   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. Free online federal tax filing 2012 Use only one set of worksheets. Free online federal tax filing 2012 You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Free online federal tax filing 2012   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. Free online federal tax filing 2012 Alternative method of figuring withholding allowances. Free online federal tax filing 2012   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. Free online federal tax filing 2012   The method you use must be based on withholding schedules, the tax rate schedules, and the 2014 Estimated Tax Worksheet in chapter 2. Free online federal tax filing 2012 It must take into account only the items of income, adjustments to income, deductions, and tax credits that are taken into account on Form W-4. Free online federal tax filing 2012   You can use the number of withholding allowances determined under an alternative method rather than the number determined using the Form W-4 worksheets. Free online federal tax filing 2012 You still must give your employer a Form W-4 claiming your withholding allowances. Free online federal tax filing 2012 Employees who are not citizens or residents. Free online federal tax filing 2012   If you are neither a citizen nor a resident of the United States, you usually can claim only one withholding allowance. Free online federal tax filing 2012 However, this rule does not apply if you are a resident of Canada or Mexico, or if you are a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 national. Free online federal tax filing 2012 It also does not apply if your spouse is a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen or resident and you have chosen to be treated as a resident of the United States for tax purposes. Free online federal tax filing 2012 Special rules apply to residents of South Korea and India. Free online federal tax filing 2012 For more information, see Withholding From Compensation in chapter 8 of Publication 519. Free online federal tax filing 2012 Personal Allowances Worksheet Use the Personal Allowances Worksheet on page 1 of Form W-4 to figure your withholding allowances based on all of the following that apply. Free online federal tax filing 2012 Exemptions. Free online federal tax filing 2012 Only one job. Free online federal tax filing 2012 Head of household filing status. Free online federal tax filing 2012 Child and dependent care credit. Free online federal tax filing 2012 Child tax credit. Free online federal tax filing 2012 Exemptions (worksheet lines A, C, and D). Free online federal tax filing 2012   You can claim one withholding allowance for each exemption you expect to claim on your tax return. Free online federal tax filing 2012 Self. Free online federal tax filing 2012   You can claim an allowance for your exemption on line A unless another person can claim an exemption for you on his or her tax return. Free online federal tax filing 2012 If another person is entitled to claim an exemption for you, you cannot claim an allowance for your exemption even if the other person will not claim your exemption. Free online federal tax filing 2012 Spouse. Free online federal tax filing 2012   You can claim an allowance for your spouse's exemption on line C unless your spouse is claiming his or her own exemption or another person can claim an exemption for your spouse. Free online federal tax filing 2012 Do not claim this allowance if you and your spouse expect to file separate returns. Free online federal tax filing 2012 Dependents. Free online federal tax filing 2012   You can claim one allowance on line D for each exemption you will claim for a dependent on your tax return. Free online federal tax filing 2012 Only one job (worksheet line B). Free online federal tax filing 2012    You can claim an additional withholding allowance if any of the following apply for 2014. Free online federal tax filing 2012 You are single and you have only one job at a time. Free online federal tax filing 2012 You are married, you have only one job at a time, and your spouse does not work. Free online federal tax filing 2012 Your wages from a second job or your spouse's wages (or the total of both) are $1,500 or less. Free online federal tax filing 2012 If you qualify for this allowance, enter “1” on line B of the worksheet. Free online federal tax filing 2012 Head of household filing status (worksheet line E). Free online federal tax filing 2012   Generally, you can file as head of household if you are unmarried and pay more than half the cost of keeping up a home that: Was the main home for all of 2014 of your parent whom you can claim as a dependent, or You lived in for more than half the year with your qualifying child or any other person you can claim as a dependent. Free online federal tax filing 2012 For more information, see Publication 501. Free online federal tax filing 2012   If you expect to file as head of household on your 2014 tax return, enter “1” on line E of the worksheet. Free online federal tax filing 2012 Reduction of personal allowances. Free online federal tax filing 2012   For 2014, your deduction for personal exemptions on your tax return is reduced if your adjusted gross income (AGI) is more than the AGI shown next for your filing status. Free online federal tax filing 2012 Personal Allowance Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1-1 to figure your reduced number of personal allowances on lines A, C, and D of the Personal Allowances Worksheet. Free online federal tax filing 2012 Worksheet 1-1. Free online federal tax filing 2012 Personal Allowances Worksheet (Form W-4) Reduction of Personal Allowances if AGI Above Phaseout Threshold 1. Free online federal tax filing 2012 Enter the total amount of allowances on lines A, C, and D of the Personal Allowance Worksheet without regard to the phaseout rule 1. Free online federal tax filing 2012   2. Free online federal tax filing 2012 Enter your expected AGI 2. Free online federal tax filing 2012       3. Free online federal tax filing 2012 Enter $254,200 if single $305,050 if married filing jointly or qualifying widow(er) $152,525 if married filing separately $279,650 if head of household 3. Free online federal tax filing 2012       4. Free online federal tax filing 2012 Subtract line 3 from line 2 4. Free online federal tax filing 2012       5. Free online federal tax filing 2012 Divide line 4 by $125,000 ($62,500 if married filing separately). Free online federal tax filing 2012 Enter the result as a decimal 5. Free online federal tax filing 2012   6. Free online federal tax filing 2012 Multiply line 1 by line 5. Free online federal tax filing 2012 If the result is not a whole number, increase it to the next higher whole number 6. Free online federal tax filing 2012   7. Free online federal tax filing 2012 Subtract line 6 from line 1. Free online federal tax filing 2012 The total of the numbers you enter on A, C, and D of the Personal Allowances Worksheet can not be more than this amount 7. Free online federal tax filing 2012     Child and dependent care credit (worksheet line F). Free online federal tax filing 2012   Enter “1” on line F if you expect to claim a credit for at least $2,000 of qualifying child or dependent care expenses on your 2014 return. Free online federal tax filing 2012 Generally, qualifying expenses are those you pay for the care of your dependent who is your qualifying child under age 13 or for your spouse or dependent who is not able to care for himself or herself so that you can work or look for work. Free online federal tax filing 2012 For more information, see Publication 503, Child and Dependent Care Expenses. Free online federal tax filing 2012   Instead of using line F, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. Free online federal tax filing 2012 Child tax credit (worksheet line G). Free online federal tax filing 2012   If your total income will be less than $65,000 ($95,000 if married), enter “2” on line G for each eligible child. Free online federal tax filing 2012 Subtract “1” from that amount if you have three to six eligible children. Free online federal tax filing 2012 Subtract “2” from that amount if you have seven or more eligible children. Free online federal tax filing 2012   If your total income will be between $65,000 and $84,000 ($95,000 and $119,000 if married), enter “1” on line G for each eligible child. Free online federal tax filing 2012   An eligible child is any child: Who is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Who will be under age 17 at the end of 2014, Who is younger than you (or your spouse if filing jointly) or permanently and totally disabled, Who will not provide over half of his or her own support for 2014, Who will not file a joint return, unless the return is filed only as a claim for refund, Who will live with you for more than half of 2014, Who is a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen, U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 national, or U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 resident alien, and Who will be claimed as a dependent on your return. Free online federal tax filing 2012 If you are a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen or U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 national and your adopted child lived with you all year as a member of your household, that child meets the citizenship test. Free online federal tax filing 2012   Also, if any other person can claim the child as an eligible child, see Qualifying child of more than one person in the 2013 instructions for Form 1040 or 1040A, line 6c. Free online federal tax filing 2012   For more information about the child tax credit, see the instructions for Form 1040 or Form 1040A. Free online federal tax filing 2012   Instead of using line G, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. Free online federal tax filing 2012 Total personal allowances (worksheet line H). Free online federal tax filing 2012    Add lines A through G and enter the total on line H. Free online federal tax filing 2012 If you do not use either of the worksheets on the back of Form W-4, enter the number from line H on line 5 of Form W-4. Free online federal tax filing 2012 Deductions and Adjustments Worksheet Use the Deductions and Adjustments Worksheet on page 2 of Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. Free online federal tax filing 2012 Also, complete this worksheet when you have changes to those items to see if you need to change your withholding. Free online federal tax filing 2012 Use the amount of each item you reasonably can expect to show on your return. Free online federal tax filing 2012 However, do not use more than: The amount shown for that item on your 2013 return (or your 2012 return if you have not yet filed your 2013 return), plus Any additional amount related to a transaction or occurrence (such as payments already made, the signing of an agreement, or the sale of property) that you can prove has happened or will happen during 2013 or 2014. Free online federal tax filing 2012 Do not include any amount shown on your last tax return that has been disallowed by the IRS. Free online federal tax filing 2012 Example. Free online federal tax filing 2012 On June 30, 2013, you bought your first home. Free online federal tax filing 2012 On your 2013 tax return, you claimed itemized deductions of $6,600, the total mortgage interest and real estate tax you paid during the 6 months you owned your home. Free online federal tax filing 2012 Based on your mortgage payment schedule and your real estate tax assessment, you reasonably can expect to claim deductions of $13,200 for those items on your 2014 return. Free online federal tax filing 2012 You can use $13,200 to figure the number of your withholding allowances for itemized deductions. Free online federal tax filing 2012 Not itemizing deductions. Free online federal tax filing 2012   If you expect to claim the standard deduction on your tax return, skip lines 1 and 2, and enter “0” on line 3 of the worksheet. Free online federal tax filing 2012 Itemized deductions (worksheet line 1). Free online federal tax filing 2012   Enter your estimated total itemized deductions on line 1 of the worksheet. Free online federal tax filing 2012   Listed below are some of the deductions you can take into account when figuring additional withholding allowances for 2014. Free online federal tax filing 2012 You normally claim these deductions on Schedule A of Form 1040. Free online federal tax filing 2012 Medical and dental expenses that are more than 10% (7. Free online federal tax filing 2012 5% if either you or your spouse was born before January 2, 1950) of your 2014 AGI (defined under AGI , later). Free online federal tax filing 2012 State and local income or property taxes. Free online federal tax filing 2012 Deductible home mortgage interest. Free online federal tax filing 2012 Investment interest up to net investment income. Free online federal tax filing 2012 Charitable contributions. Free online federal tax filing 2012 Casualty and theft losses that are more than $100 and 10% of your AGI. Free online federal tax filing 2012 Fully deductible miscellaneous itemized deductions, including: Impairment-related work expenses of persons with disabilities, Federal estate tax on income in respect of a decedent, Repayment of more than $3,000 of income held under a claim of right that you included in income in an earlier year because at the time you thought you had an unrestricted right to it, Unrecovered investments in an annuity contract under which payments have ceased because of the annuitant's death, Gambling losses up to the amount of gambling winnings reported on your return, and Casualty and theft losses from  income-producing property. Free online federal tax filing 2012 Other miscellaneous itemized deductions that are more than 2% of your AGI, including: Unreimbursed employee business expenses, such as education expenses, work clothes and uniforms, union dues and fees, and the cost of work-related small tools and supplies, Safe deposit box rental, Tax counsel and assistance, and Certain fees paid to an IRA trustee or custodian. Free online federal tax filing 2012 AGI. Free online federal tax filing 2012   For the purpose of estimating your itemized deductions, your AGI is your estimated total income for 2014 minus any estimated adjustments to income (discussed later) that you include on line 4 of the Deductions and Adjustments Worksheet. Free online federal tax filing 2012 Phaseout of itemized deductions. Free online federal tax filing 2012   For 2014, your total itemized deductions may be phased out (reduced) if your AGI is more than the following thresholds. Free online federal tax filing 2012    Itemized Deduction Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1–2 to figure your reduction in itemized deductions. Free online federal tax filing 2012 Worksheet 1-2. Free online federal tax filing 2012 Deductions and Adjustments Worksheet (Form W-4)—Line 1 Phaseout of Itemized Deductions 1. Free online federal tax filing 2012 Enter the estimated total of your itemized deductions 1. Free online federal tax filing 2012   2. Free online federal tax filing 2012 Enter the amount included in line 1 for medical and dental expenses, investment interest, casualty or theft losses, and gambling losses 2. Free online federal tax filing 2012   3. Free online federal tax filing 2012 Is the amount on line 2 less than the amount on line 1? ❑ No. Free online federal tax filing 2012 Stop here. Free online federal tax filing 2012 Your deduction is not limited. Free online federal tax filing 2012 Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. Free online federal tax filing 2012  ❑ Yes. Free online federal tax filing 2012 Subtract line 2 from line 1. Free online federal tax filing 2012 3. Free online federal tax filing 2012       4. Free online federal tax filing 2012 Multiply line 3 by 80% (. Free online federal tax filing 2012 80) 4. Free online federal tax filing 2012       5. Free online federal tax filing 2012 Enter your expected AGI 5. Free online federal tax filing 2012       6. Free online federal tax filing 2012 Enter $305,050 If married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately 6. Free online federal tax filing 2012   7. Free online federal tax filing 2012 Is the amount on line 6 less than the amount on line 5? ❑ No. Free online federal tax filing 2012 Stop here. Free online federal tax filing 2012 Your deduction is not limited. Free online federal tax filing 2012 Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. Free online federal tax filing 2012  ❑ Yes. Free online federal tax filing 2012 Subtract line 6 from line 5. Free online federal tax filing 2012 7. Free online federal tax filing 2012       8. Free online federal tax filing 2012 Multiply line 7 by 3% (. Free online federal tax filing 2012 03) 8. Free online federal tax filing 2012       9. Free online federal tax filing 2012 Enter the smaller of line 4 or line 8 9. Free online federal tax filing 2012     10. Free online federal tax filing 2012 Subtract line 9 from line 1. Free online federal tax filing 2012 Enter the result here and on line 1 of the Deductions and Adjustments Worksheet 10. Free online federal tax filing 2012     Adjustments to income (worksheet line 4). Free online federal tax filing 2012   Enter your estimated total adjustments to income on line 4 of the Deductions and Adjustments Worksheet. Free online federal tax filing 2012   You can take the following adjustments to income into account when figuring additional withholding allowances for 2014. Free online federal tax filing 2012 These adjustments appear on page 1 of your Form 1040 or 1040A. Free online federal tax filing 2012 Net losses from Schedules C, D, E, and F of Form 1040 and from Part II of Form 4797, line 18b. Free online federal tax filing 2012 Net operating loss carryovers. Free online federal tax filing 2012 Certain business expenses of reservists, performing artists, and fee-based government officials. Free online federal tax filing 2012 Health savings account or medical savings account deduction. Free online federal tax filing 2012 Certain moving expenses. Free online federal tax filing 2012 Deduction for self-employment tax. Free online federal tax filing 2012 Deduction for contributions to self-employed SEP, and qualified SIMPLE plans. Free online federal tax filing 2012 Self-employed health insurance deduction. Free online federal tax filing 2012 Penalty on early withdrawal of savings. Free online federal tax filing 2012 Alimony paid. Free online federal tax filing 2012 IRA deduction. Free online federal tax filing 2012 Student loan interest deduction. Free online federal tax filing 2012 Jury duty pay given to your employer. Free online federal tax filing 2012 Reforestation amortization and expenses. Free online federal tax filing 2012 Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. Free online federal tax filing 2012 Repayment of certain supplemental unemployment benefits. Free online federal tax filing 2012 Contributions to IRC 501(c)(18)(D) pension plans. Free online federal tax filing 2012 Contributions by certain chaplains to IRC 403(b) plans. Free online federal tax filing 2012 Attorney fees and court costs for certain unlawful discrimination claims. Free online federal tax filing 2012 Attorney fees and court costs for certain whistleblower awards. Free online federal tax filing 2012 Estimated amount of decrease in tax attributable to income averaging using Schedule J (Form 1040). Free online federal tax filing 2012 Tax credits (worksheet line 5). Free online federal tax filing 2012   Although you can take most tax credits into account when figuring withholding allowances, the Personal Allowances Worksheet uses only the child and dependent care credit (line F) and the child tax credit (line G). Free online federal tax filing 2012 But you can take these credits and others into account by adding an extra amount on line 5 of the Deductions and Adjustments Worksheet. Free online federal tax filing 2012   If you take the child and dependent care credit into account on line 5, do not use line F. Free online federal tax filing 2012 If you take the child tax credit into account on line 5, do not use line G. Free online federal tax filing 2012   In addition to the child and dependent care credit and the child tax credit, you can generally take into account the following credits. Free online federal tax filing 2012 See the individual tax form instructions for more details. Free online federal tax filing 2012 Foreign tax credit, except any credit that applies to wages not subject to U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 income tax withholding because they are subject to income tax withholding by a foreign country. Free online federal tax filing 2012 See Publication 514, Foreign Tax Credit for Individuals. Free online federal tax filing 2012 Credit for the elderly or the disabled. Free online federal tax filing 2012 See Publication 524, Credit for the Elderly or the Disabled. Free online federal tax filing 2012 Education credits. Free online federal tax filing 2012 See Publication 970, Tax Benefits for Education. Free online federal tax filing 2012 Retirement savings contributions credit (saver's credit). Free online federal tax filing 2012 See Publication 590. Free online federal tax filing 2012 Mortgage interest credit. Free online federal tax filing 2012 See Publication 530, Tax Information for Homeowners. Free online federal tax filing 2012 Adoption credit. Free online federal tax filing 2012 See the Instructions for Form 8839. Free online federal tax filing 2012 Credit for nonrefundable portion of prior year minimum tax if you paid alternative minimum tax in an earlier year. Free online federal tax filing 2012 See the Instructions for Form 8801. Free online federal tax filing 2012 General business credit. Free online federal tax filing 2012 See the Instructions for Form 3800. Free online federal tax filing 2012 Earned income credit. Free online federal tax filing 2012 See Publication 596. Free online federal tax filing 2012 Figuring line 5 entry. Free online federal tax filing 2012   To figure the amount to add on line 5 for tax credits, multiply your estimated total credits by the appropriate number from Table 1-3 . Free online federal tax filing 2012 Example. Free online federal tax filing 2012 You are married and expect to file a joint return for 2014. Free online federal tax filing 2012 Your combined estimated wages are $68,000. Free online federal tax filing 2012 Your estimated tax credits include a child and dependent care credit of $960 and a mortgage interest credit of $1,700 (total credits = $2,660). Free online federal tax filing 2012 In Table 1-3, the number corresponding to your combined estimated wages ($42,001 – $98,000) is 6. Free online federal tax filing 2012 7. Free online federal tax filing 2012 Multiply your total estimated tax credits of $2,660 by 6. Free online federal tax filing 2012 7. Free online federal tax filing 2012 Add the result, $17,822, to the amount you otherwise would show on line 5 of the Deductions and Adjustments Worksheet and enter the total on line 5. Free online federal tax filing 2012 Because you choose to account for your child and dependent care credit this way, do not make an entry on line F of the Personal Allowances Worksheet. Free online federal tax filing 2012 Nonwage income (worksheet line 6). Free online federal tax filing 2012   Enter on line 6 your estimated total nonwage income (other than tax-exempt income). Free online federal tax filing 2012 Nonwage income includes interest, dividends, net rental income, unemployment compensation, alimony, gambling winnings, prizes and awards, hobby income, capital gains, royalties, and partnership income. Free online federal tax filing 2012   If line 6 is more than line 5, you may not have enough income tax withheld from your wages. Free online federal tax filing 2012 See Getting the Right Amount of Tax Withheld , later. Free online federal tax filing 2012 Net deductions and adjustments (worksheet line 8). Free online federal tax filing 2012    If line 7 is less than $3,950, enter “0” on line 8. Free online federal tax filing 2012 If line 7 is $3,950 or more, divide it by $3,950, drop any fraction, and enter the result on line 8. Free online federal tax filing 2012 Example. Free online federal tax filing 2012 If line 7 is $5,200, $5,200 ÷ $3,950 = 1. Free online federal tax filing 2012 32. Free online federal tax filing 2012 Drop the fraction (. Free online federal tax filing 2012 32) and enter “1” on line 8. Free online federal tax filing 2012 Two-Earners/Multiple Jobs Worksheet Complete the Two-Earners/Multiple Jobs Worksheet on page 2 of Form W-4 if you have more than one job or are married and you and your spouse both work and the combined earnings from all jobs are more than $50,000 ($20,000 if married). Free online federal tax filing 2012 Reducing your allowances (worksheet lines 1-3). Free online federal tax filing 2012   On line 1 of the worksheet, enter the number from line H of the Personal Allowances Worksheet (or line 10 of the Deductions and Adjustments Worksheet, if used). Free online federal tax filing 2012 Using Table 1 in the Two-Earners/Multiple Jobs Worksheet, find the number listed beside the amount of your estimated wages for the year from your lowest paying job (or if lower and you are filing jointly, your spouse's job). Free online federal tax filing 2012 Enter that number on line 2. Free online federal tax filing 2012 However, if you are married filing jointly and estimated wages from the highest paying job are $65,000 or less, do not enter more than “3. Free online federal tax filing 2012 ”    Table 1-3. Free online federal tax filing 2012 Deductions and Adjustments Worksheet (Form W-4)—Line 5 a. Free online federal tax filing 2012  Married Filing Jointly or Qualifying Widow(er) If combined income from all sources is:   Multiply credits by: $0 – 42,000 10. Free online federal tax filing 2012 0 $42,001 – 98,000 6. Free online federal tax filing 2012 7 $98,001 – 180,000 4. Free online federal tax filing 2012 0 $180,001 – 270,000 3. Free online federal tax filing 2012 6 $270,001 – 440,000 3. Free online federal tax filing 2012 0 $440,001 – 490,000. Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012 2. Free online federal tax filing 2012 9 $490,001 and over 2. Free online federal tax filing 2012 5 b. Free online federal tax filing 2012  Single If combined income from all sources is:   Multiply credits by: $0 – 19,000 10. Free online federal tax filing 2012 0 $19,001 – 47,000 6. Free online federal tax filing 2012 7 $47,001 – 104,000 4. Free online federal tax filing 2012 0 $104,001 – 205,000 3. Free online federal tax filing 2012 6 $205,001 – 430,000 3. Free online federal tax filing 2012 0 $430,001 and over 2. Free online federal tax filing 2012 5 c. Free online federal tax filing 2012  Head of Household If combined income from all sources is:   Multiply credits by: $0 – 30,000 10. Free online federal tax filing 2012 0 $30,001 – 66,000 6. Free online federal tax filing 2012 7 $66,001 – 150,000 4. Free online federal tax filing 2012 0 $150,001 – 235,000 3. Free online federal tax filing 2012 6 $235,001 – 430,000 3. Free online federal tax filing 2012 0 $430,001 – 460,000 2. Free online federal tax filing 2012 9 $460,001 and over 2. Free online federal tax filing 2012 5 d. Free online federal tax filing 2012  Married Filing Separately   If combined income from all sources is:   Multiply credits by: $0 – 21,000 10. Free online federal tax filing 2012 0 $21,001 – 49,000 6. Free online federal tax filing 2012 7 $49,001 – 90,000 4. Free online federal tax filing 2012 0 $90,001 – 135,000 3. Free online federal tax filing 2012 6 $135,001 – 220,000 3. Free online federal tax filing 2012 0 $220,001 – 245,000 2. Free online federal tax filing 2012 9 $245,001 and over 2. Free online federal tax filing 2012 5   Subtract line 2 from line 1 and enter the result (but not less than zero) on line 3 and on Form W-4, line 5. Free online federal tax filing 2012 If line 1 is more than or equal to line 2, do not use the rest of the worksheet. Free online federal tax filing 2012   If line 1 is less than line 2, enter “0” on Form W-4, line 5. Free online federal tax filing 2012 Then complete lines 4 through 9 of the worksheet to figure the additional withholding needed to avoid underwithholding. Free online federal tax filing 2012 Other amounts owed. Free online federal tax filing 2012   If you expect to owe amounts other than income tax, such as self-employment tax, include them on line 8. Free online federal tax filing 2012 The total is the additional withholding needed for the year. Free online federal tax filing 2012 Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. Free online federal tax filing 2012 You accurately complete all the Form W-4 worksheets that apply to you. Free online federal tax filing 2012 You give your employer a new Form W-4 when changes occur. Free online federal tax filing 2012 But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Free online federal tax filing 2012 This is most likely to happen in the following situations. Free online federal tax filing 2012 You are married and both you and your spouse work. Free online federal tax filing 2012 You have more than one job at a time. Free online federal tax filing 2012 You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Free online federal tax filing 2012 You will owe additional amounts with your return, such as self-employment tax. Free online federal tax filing 2012 Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Free online federal tax filing 2012 Your earnings are more than $130,000 if you are single or $180,000 if you are married. Free online federal tax filing 2012 You work only part of the year. Free online federal tax filing 2012 You change the number of your withholding allowances during the year. Free online federal tax filing 2012 You are subject to Additional Medicare Tax or Net Investment Income Tax. Free online federal tax filing 2012 If you anticipate liability for Additional Medicare Tax or Net Investment Income Tax, you may request that your employer withhold an additional amount of income tax withholding on Form W-4. Free online federal tax filing 2012 Part-Year Method If you work only part of the year and your employer agrees to use the part-year withholding method, less tax will be withheld from each wage payment than would be withheld if you worked all year. Free online federal tax filing 2012 To be eligible for the part-year method, you must meet both of the following requirements. Free online federal tax filing 2012 You must use the calendar year (the 12 months from January 1 through December 31) as your tax year. Free online federal tax filing 2012 You cannot use a fiscal year. Free online federal tax filing 2012 You must not expect to be employed for more than 245 days during the year. Free online federal tax filing 2012 To figure this limit, count all calendar days that you are employed (including weekends, vacations, and sick days) beginning with the first day you are on the job for pay and ending with your last day of work. Free online federal tax filing 2012 If you are temporarily laid off for 30 days or less, count those days too. Free online federal tax filing 2012 If you are laid off for more than 30 days, do not count those days. Free online federal tax filing 2012 You will not meet this requirement if you begin working before May 1 and expect to work for the rest of the year. Free online federal tax filing 2012 How to apply for the part-year method. Free online federal tax filing 2012   You must ask your employer in writing to use this method. Free online federal tax filing 2012 The request must state all three of the following. Free online federal tax filing 2012 The date of your last day of work for any prior employer during the current calendar year. Free online federal tax filing 2012 That you do not expect to be employed more than 245 days during the current calendar year. Free online federal tax filing 2012 That you use the calendar year as your tax year. Free online federal tax filing 2012 Cumulative Wage Method If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. Free online federal tax filing 2012 You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. Free online federal tax filing 2012 You must ask your employer in writing to use this method. Free online federal tax filing 2012 To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Free online federal tax filing 2012 ) since the beginning of the year. Free online federal tax filing 2012 Aids for Figuring Your Withholding IRS Withholding Calculator. Free online federal tax filing 2012   If you had too much or too little income tax withheld from your pay, the IRS provides a withholding calculator on its website. Free online federal tax filing 2012 Go to www. Free online federal tax filing 2012 irs. Free online federal tax filing 2012 gov/Individuals/IRS-Withholding-Calculator. Free online federal tax filing 2012 It can help you determine the correct amount to be withheld any time during the year. Free online federal tax filing 2012 Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Free online federal tax filing 2012 These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Free online federal tax filing 2012 New Form W-4. Free online federal tax filing 2012   When you start a new job, your employer should give you a Form W-4 to fill out. Free online federal tax filing 2012 Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Free online federal tax filing 2012   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Free online federal tax filing 2012 The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. Free online federal tax filing 2012 No Form W-4. Free online federal tax filing 2012   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. Free online federal tax filing 2012 Repaying withheld tax. Free online federal tax filing 2012   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. Free online federal tax filing 2012 Your employer cannot repay any of the tax previously withheld. Free online federal tax filing 2012 Instead, claim the full amount withheld when you file your tax return. Free online federal tax filing 2012   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. Free online federal tax filing 2012 Your employer can repay the amount that was withheld incorrectly. Free online federal tax filing 2012 If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. Free online federal tax filing 2012 IRS review of your withholding. Free online federal tax filing 2012   Whether you are entitled to claim a certain number of allowances or a complete exemption from withholding is subject to review by the IRS. Free online federal tax filing 2012 Your employer may be required to send a copy of the Form W-4 to the IRS. Free online federal tax filing 2012 There is a penalty for supplying false information on Form W-4. Free online federal tax filing 2012 See Penalties , later. Free online federal tax filing 2012   If the IRS determines that you cannot claim more than a specified number of withholding allowances or claim a complete exemption from withholding, the IRS will issue a notice of the maximum number of withholding allowances permitted (commonly referred to as a “lock-in letter”) to both you and your employer. Free online federal tax filing 2012   The IRS will provide a period of time during which you can dispute the determination before your employer adjusts your withholding. Free online federal tax filing 2012 If you believe that you are entitled to claim complete exemption from withholding or claim more withholding allowances than the maximum number specified by the IRS in the lock-in letter, you must submit a new Form W-4 and a written statement to support your claims to the IRS. Free online federal tax filing 2012 Contact information (a toll-free number and an IRS office address) will be provided in the lock-in letter. Free online federal tax filing 2012 At the end of this period, if you have not responded or if your response is not adequate, your employer will be required to withhold based on the original lock-in letter. Free online federal tax filing 2012   After the lock-in letter takes effect, your employer must withhold tax on the basis of the withholding rate (marital status) and maximum number of withholding allowances specified in that letter. Free online federal tax filing 2012   If you later believe that you are entitled to claim exemption from withholding or more allowances than the IRS determined, you can complete a new Form W-4 and a written statement to support the claims made on the Form W-4 and send them directly to the IRS address shown on the lock-in letter. Free online federal tax filing 2012 Your employer must continue to figure your withholding on the basis of the number of allowances previously determined by the IRS until the IRS advises your employer otherwise. Free online federal tax filing 2012   At any time, either before or after the lock-in letter becomes effective, you may give your employer a new Form W-4 that does not claim complete exemption from withholding and results in more income tax withheld than specified in the lock-in letter. Free online federal tax filing 2012 Your employer must then withhold tax based on this new Form W-4. Free online federal tax filing 2012   Additional information is available at IRS. Free online federal tax filing 2012 gov. Free online federal tax filing 2012 Enter “withholding compliance questions” in the search box. Free online federal tax filing 2012 Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Free online federal tax filing 2012 The exemption applies only to income tax, not to social security or Medicare tax. Free online federal tax filing 2012 You can claim exemption from withholding for 2014 only if both of the following situations apply. Free online federal tax filing 2012 For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Free online federal tax filing 2012 For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Free online federal tax filing 2012 Use Figure 1-A to help you decide whether you can claim exemption from withholding. Free online federal tax filing 2012 Do not use Figure 1-A if you: Are 65 or older, Are blind, Will itemize deductions on your 2014 return, Will claim an exemption for a dependent on your 2014 return, or Will claim any tax credits on your 2014 return. Free online federal tax filing 2012 These situations are discussed later. Free online federal tax filing 2012 Students. Free online federal tax filing 2012   If you are a student, you are not automatically exempt. Free online federal tax filing 2012 If you work only part time or during the summer, you may qualify for exemption from withholding. Free online federal tax filing 2012 Example 1. Free online federal tax filing 2012 You are a high school student and expect to earn $2,500 from a summer job. Free online federal tax filing 2012 You do not expect to have any other income during the year, and your parents will be able to claim an exemption for you on their tax return. Free online federal tax filing 2012 You worked last summer and had $375 federal income tax withheld from your pay. Free online federal tax filing 2012 The entire $375 was refunded when you filed your 2013 return. Free online federal tax filing 2012 Using Figure 1-A, you find that you can claim exemption from withholding. Free online federal tax filing 2012 Please click here for the text description of the image. Free online federal tax filing 2012 Figure 1-A: Exemption From Withholding on Form W-4 Example 2. Free online federal tax filing 2012 The facts are the same as in Example 1, except that you also have a savings account and expect to have $400 interest income during the year. Free online federal tax filing 2012 Using Figure 1-A, you find that you cannot claim exemption from withholding because your unearned income will be more than $350 and your total income will be more than $1,000. Free online federal tax filing 2012    You may have to file a tax return, even if you are exempt from withholding. Free online federal tax filing 2012 See Publication 501 to see whether you must file a return. Free online federal tax filing 2012    Age 65 or older or blind. Free online federal tax filing 2012 If you are 65 or older or blind, use Worksheet 1-3 or Worksheet 1-4, to help you decide whether you can claim exemption from withholding. Free online federal tax filing 2012 Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Free online federal tax filing 2012 Instead, see Itemizing deductions or claiming exemptions or credits, next. Free online federal tax filing 2012 Itemizing deductions or claiming exemptions or credits. Free online federal tax filing 2012   If you had no tax liability for 2013, and you will: Itemize deductions, Claim an exemption for a dependent, or Claim a tax credit, use the 2014 Estimated Tax Worksheet (also see chapter 2), to figure your 2014 expected tax liability. Free online federal tax filing 2012 You can claim exemption from withholding only if your total expected tax liability (line 13c of the worksheet) is zero. Free online federal tax filing 2012 Claiming exemption from withholding. Free online federal tax filing 2012   To claim exemption, you must give your employer a Form W-4. Free online federal tax filing 2012 Do not complete lines 5 and 6. Free online federal tax filing 2012 Enter “Exempt” on line 7. Free online federal tax filing 2012   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. Free online federal tax filing 2012 If you claim exemption in 2014 but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. Free online federal tax filing 2012   Your claim of exempt status may be reviewed by the IRS. Free online federal tax filing 2012 See IRS review of your withholding , earlier. Free online federal tax filing 2012 An exemption is good for only 1 year. Free online federal tax filing 2012   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Free online federal tax filing 2012 Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Free online federal tax filing 2012 The payer can figure withholding on supplemental wages using the same method used for your regular wages. Free online federal tax filing 2012 However, if these payments are identified separately from regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. Free online federal tax filing 2012 Expense allowances. Free online federal tax filing 2012   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Free online federal tax filing 2012 A nonaccountable plan is a reimbursement arrangement that does not require you to account for, or prove, your business expenses to your employer or does not require you to return your employer's payments that are more than your proven expenses. Free online federal tax filing 2012   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. Free online federal tax filing 2012 Accountable plan. Free online federal tax filing 2012   To be an accountable plan, your employer's reimbursement or allowance arrangement must include all three of the following rules. Free online federal tax filing 2012 Your expenses must have a business connection. Free online federal tax filing 2012 That is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Free online federal tax filing 2012 You must adequately account to your employer for these expenses within a reasonable period of time. Free online federal tax filing 2012 You must return any excess reimbursement or allowance within a reasonable period of time. Free online federal tax filing 2012    An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. Free online federal tax filing 2012   The definition of reasonable period of time depends on the facts and circumstances of your situation. Free online federal tax filing 2012 However, regardless of those facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Free online federal tax filing 2012 You receive an advance within 30 days of the time you have an expense. Free online federal tax filing 2012 You adequately account for your expenses within 60 days after they were paid or incurred. Free online federal tax filing 2012 You return any excess reimbursement within 120 days after the expense was paid or incurred. Free online federal tax filing 2012 You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Free online federal tax filing 2012 Nonaccountable plan. Free online federal tax filing 2012   Any plan that does not meet the definition of an accountable plan is considered a nonaccountable plan. Free online federal tax filing 2012 For more information about accountable and nonaccountable plans, see chapter 6 of Publication 463, Travel, Entertainment, Gift, and Car Expenses. Free online federal tax filing 2012 Penalties You may have to pay a penalty of $500 if both of the following apply. Free online federal tax filing 2012 You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Free online federal tax filing 2012 You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Free online federal tax filing 2012 There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. Free online federal tax filing 2012 The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Free online federal tax filing 2012 These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. Free online federal tax filing 2012 A simple error or an honest mistake will not result in one of these penalties. Free online federal tax filing 2012 For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a Form W-4 penalty. Free online federal tax filing 2012 However, see chapter 4 for information on the penalty for underpaying your tax. Free online federal tax filing 2012 Tips The tips you receive while working on your job are considered part of your pay. Free online federal tax filing 2012 You must include your tips on your tax return on the same line as your regular pay. Free online federal tax filing 2012 However, tax is not withheld directly from tip income, as it is from your regular pay. Free online federal tax filing 2012 Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Free online federal tax filing 2012 Reporting tips to your employer. Free online federal tax filing 2012   If you receive tips of $20 or more in a month while working for any one employer, you must report to your employer the total amount of tips you receive on the job during the month. Free online federal tax filing 2012 The report is due by the 10th day of the following month. Free online federal tax filing 2012   If you have more than one job, make a separate report to each employer. Free online federal tax filing 2012 Report only the tips you received while working for that employer, and only if they total $20 or more for the month. Free online federal tax filing 2012 How employer figures amount to withhold. Free online federal tax filing 2012   The tips you report to your employer are counted as part of your income for the month you report them. Free online federal tax filing 2012 Your employer can figure your withholding in either of two ways. Free online federal tax filing 2012 By withholding at the regular rate on the sum of your pay plus your reported tips. Free online federal tax filing 2012 By withholding at the regular rate on your pay plus a percentage of your reported tips. Free online federal tax filing 2012 Not enough pay to cover taxes. Free online federal tax filing 2012   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. Free online federal tax filing 2012   If you do not give your employer money to cover the shortage, your employer first withholds as much Medicare tax and social security or railroad retirement tax as possible, up to the proper amount, and then withholds income tax up to the full amount of your pay. Free online federal tax filing 2012 If not enough tax is withheld, you may have to pay estimated tax. Free online federal tax filing 2012 When you file your return, you also may have to pay any Medicare and social security tax or railroad retirement tax your employer could not withhold. Free online federal tax filing 2012 Tips not reported to your employer. Free online federal tax filing 2012   On your tax return, you must report all the tips you receive during the year, even tips you do not report to your employer (this includes the value of any noncash tips you received, such as tickets, passes, or other items of value). Free online federal tax filing 2012 Make sure you are having enough tax withheld, or are paying enough estimated tax (see chapter 2), to cover all your tip income. Free online federal tax filing 2012 Allocated tips. Free online federal tax filing 2012   If you work in a large food or beverage establishment, your employer may have to report an allocated amount of tips on your Form W-2. Free online federal tax filing 2012   Your employer should not withhold income tax, Medicare tax, and social security or railroad retirement tax on the allocated amount. Free online federal tax filing 2012 Withholding is based only on your pay plus your reported tips. Free online federal tax filing 2012 Your employer should refund to you any incorrectly withheld tax. Free online federal tax filing 2012 More information. Free online federal tax filing 2012   For more information on the reporting and withholding rules for tip income and on tip allocation, see Publi
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The Free Online Federal Tax Filing 2012

Free online federal tax filing 2012 Publication 501 - Main Content Table of Contents Who Must FileSelf-employed persons. Free online federal tax filing 2012 Filing Requirements for Most Taxpayers Dependents Other Situations Who Should File Filing StatusMarital Status Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) With Dependent Child ExemptionsForm 1040EZ filers. Free online federal tax filing 2012 Form 1040A filers. Free online federal tax filing 2012 Form 1040 filers. Free online federal tax filing 2012 More information. Free online federal tax filing 2012 Personal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Free online federal tax filing 2012 Taxpayer identification numbers for aliens. Free online federal tax filing 2012 Taxpayer identification numbers for adoptees. Free online federal tax filing 2012 Standard DeductionStandard Deduction Amount Standard Deduction for Dependents Who Should Itemize How To Get Tax HelpLow Income Taxpayer Clinics Who Must File If you are a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen or resident alien, whether you must file a federal income tax return depends on your gross income, your filing status, your age, and whether you are a dependent. Free online federal tax filing 2012 For details, see Table 1 and Table 2. Free online federal tax filing 2012 You also must file if one of the situations described in Table 3 applies. Free online federal tax filing 2012 The filing requirements apply even if you owe no tax. Free online federal tax filing 2012 Table 1. Free online federal tax filing 2012 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012 AND at the end of 2013 you were. Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012 * THEN file a return if your gross income was at least. Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012 ** single under 65  $10,000 65 or older $11,500 head of household under 65 $12,850 65 or older $14,350 married, filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married, filing separately any age  $3,900 qualifying widow(er) with dependent child under 65 $16,100 65 or older $17,300 * If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. Free online federal tax filing 2012 ** Gross income means all income you receive in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Free online federal tax filing 2012 Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Free online federal tax filing 2012 If (a) or (b) applies, see the Form 1040 instructions to figure the taxable part of social security benefits you must include in gross income. Free online federal tax filing 2012 Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Free online federal tax filing 2012 Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Free online federal tax filing 2012 But in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. Free online federal tax filing 2012 *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Free online federal tax filing 2012 You may have to pay a penalty if you are required to file a return but fail to do so. Free online federal tax filing 2012 If you willfully fail to file a return, you may be subject to criminal prosecution. Free online federal tax filing 2012 For information on what form to use — Form 1040EZ, Form 1040A, or Form 1040 — see the instructions for your tax return. Free online federal tax filing 2012 Gross income. Free online federal tax filing 2012    Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. Free online federal tax filing 2012 If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. Free online federal tax filing 2012 For a list of community property states, see Community property states under Married Filing Separately, later. Free online federal tax filing 2012 Self-employed persons. Free online federal tax filing 2012    If you are self-employed in a business that provides services (where products are not a factor), your gross income from that business is the gross receipts. Free online federal tax filing 2012 If you are self-employed in a business involving manufacturing, merchandising, or mining, your gross income from that business is the total sales minus the cost of goods sold. Free online federal tax filing 2012 In either case, you must add any income from investments and from incidental or outside operations or sources. Free online federal tax filing 2012    You must file Form 1040 if you owe any self-employment tax. Free online federal tax filing 2012 Filing status. Free online federal tax filing 2012    Your filing status generally depends on whether you are single or married. Free online federal tax filing 2012 Whether you are single or married is determined at the end of your tax year, which is December 31 for most taxpayers. Free online federal tax filing 2012 Filing status is discussed in detail later in this publication. Free online federal tax filing 2012 Age. Free online federal tax filing 2012    Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. Free online federal tax filing 2012 For 2013, you are 65 or older if you were born before January 2, 1949. Free online federal tax filing 2012 Filing Requirements for Most Taxpayers You must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1. Free online federal tax filing 2012 Dependents should see Table 2 instead. Free online federal tax filing 2012 Deceased Persons You must file an income tax return for a decedent (a person who died) if both of the following are true. Free online federal tax filing 2012 You are the surviving spouse, executor, administrator, or legal representative. Free online federal tax filing 2012 The decedent met the filing requirements described in this publication at the time of his or her death. Free online federal tax filing 2012 For more information, see Final Income Tax Return for Decedent — Form 1040 in Publication 559. Free online federal tax filing 2012 Table 2. Free online federal tax filing 2012 2013 Filing Requirements for Dependents See Exemptions for Dependents to find out if you are a dependent. Free online federal tax filing 2012 If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Free online federal tax filing 2012  In this table, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. Free online federal tax filing 2012 It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Free online federal tax filing 2012 Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Free online federal tax filing 2012 Gross income is the total of your unearned and earned income. Free online federal tax filing 2012 If your gross income was $3,900 or more, you usually cannot be claimed as a dependent unless you are a qualifying child. Free online federal tax filing 2012 For details, see Exemptions for Dependents. Free online federal tax filing 2012 Single dependents—Were you either age 65 or older or blind? □ No. Free online federal tax filing 2012 You must file a return if any of the following apply. Free online federal tax filing 2012 Your unearned income was more than $1,000. Free online federal tax filing 2012 Your earned income was more than $6,100. Free online federal tax filing 2012 Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750) plus $350. Free online federal tax filing 2012     □ Yes. Free online federal tax filing 2012 You must file a return if any of the following apply. Free online federal tax filing 2012 Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Free online federal tax filing 2012 Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Free online federal tax filing 2012 Your gross income was more than the larger of—  $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Free online federal tax filing 2012     Married dependents—Were you either age 65 or older or blind? □ No. Free online federal tax filing 2012 You must file a return if any of the following apply. Free online federal tax filing 2012 Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Free online federal tax filing 2012 Your unearned income was more than $1,000. Free online federal tax filing 2012 Your earned income was more than $6,100. Free online federal tax filing 2012 Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750 plus $350. Free online federal tax filing 2012     □ Yes. Free online federal tax filing 2012 You must file a return if any of the following apply. Free online federal tax filing 2012 Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Free online federal tax filing 2012 Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Free online federal tax filing 2012 Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Free online federal tax filing 2012 Your gross income was more than the larger of— $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Free online federal tax filing 2012     U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 Citizens or Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you earned or received abroad, including any income you can exclude under the foreign earned income exclusion. Free online federal tax filing 2012 For more information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 Citizens and Resident Aliens Abroad. Free online federal tax filing 2012 Residents of Puerto Rico If you are a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 income tax return for any year in which you meet the income requirements. Free online federal tax filing 2012 This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Free online federal tax filing 2012 If you are a bona fide resident of Puerto Rico for the whole year, your U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 gross income does not include income from sources within Puerto Rico. Free online federal tax filing 2012 It does, however, include any income you received for your services as an employee of the United States or any U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 agency. Free online federal tax filing 2012 If you receive income from Puerto Rican sources that is not subject to U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 tax, you must reduce your standard deduction, which reduces the amount of income you can have before you must file a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 income tax return. Free online federal tax filing 2012 For more information, see Publication 570, Tax Guide for Individuals With Income From U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 Possessions. Free online federal tax filing 2012 Individuals With Income From U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 Virgin Islands, special rules may apply when determining whether you must file a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 federal income tax return. Free online federal tax filing 2012 In addition, you may have to file a return with the individual possession government. Free online federal tax filing 2012 See Publication 570 for more information. Free online federal tax filing 2012 Dependents A person who is a dependent may still have to file a return. Free online federal tax filing 2012 It depends on his or her earned income, unearned income, and gross income. Free online federal tax filing 2012 For details, see Table 2. Free online federal tax filing 2012 A dependent must also file if one of the situations described in Table 3 applies. Free online federal tax filing 2012 Responsibility of parent. Free online federal tax filing 2012    If a dependent child must file an income tax return but cannot file due to age or any other reason, a parent, guardian, or other legally responsible person must file it for the child. Free online federal tax filing 2012 If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. Free online federal tax filing 2012 ” Earned income. Free online federal tax filing 2012    Earned income includes salaries, wages, professional fees, and other amounts received as pay for work you actually perform. Free online federal tax filing 2012 Earned income (only for purposes of filing requirements and the standard deduction) also includes any part of a scholarship that you must include in your gross income. Free online federal tax filing 2012 See chapter 1 of Publication 970, Tax Benefits for Education, for more information on taxable and nontaxable scholarships. Free online federal tax filing 2012 Child's earnings. Free online federal tax filing 2012    Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Free online federal tax filing 2012 This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Free online federal tax filing 2012 But if the child does not pay the tax due on this income, the parent is liable for the tax. Free online federal tax filing 2012 Unearned income. Free online federal tax filing 2012    Unearned income includes income such as interest, dividends, and capital gains. Free online federal tax filing 2012 Trust distributions of interest, dividends, capital gains, and survivor annuities are also considered unearned income. Free online federal tax filing 2012 Election to report child's unearned income on parent's return. Free online federal tax filing 2012    You may be able to include your child's interest and dividend income on your tax return. Free online federal tax filing 2012 If you do this, your child will not have to file a return. Free online federal tax filing 2012 To make this election, all of the following conditions must be met. Free online federal tax filing 2012 Your child was under age 19 (or under age 24 if a student) at the end of 2013. Free online federal tax filing 2012 (A child born on January 1, 1995, is considered to be age 19 at the end of 2013; you cannot make the election for this child unless the child was a student. Free online federal tax filing 2012 Similarly, a child born on January 1, 1990, is considered to be age 24 at the end of 2013; you cannot make the election for this child. Free online federal tax filing 2012 ) Your child had gross income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Free online federal tax filing 2012 The interest and dividend income was less than $10,000. Free online federal tax filing 2012 Your child is required to file a return for 2013 unless you make this election. Free online federal tax filing 2012 Your child does not file a joint return for 2013. Free online federal tax filing 2012 No estimated tax payment was made for 2013 and no 2012 overpayment was applied to 2013 under your child's name and social security number. Free online federal tax filing 2012 No federal income tax was withheld from your child's income under the backup withholding rules. Free online federal tax filing 2012 You are the parent whose return must be used when making the election to report your child's unearned income. Free online federal tax filing 2012   For more information, see Form 8814 and Parent's Election To Report Child's Interest and Dividends in Publication 929. Free online federal tax filing 2012 Other Situations You may have to file a tax return even if your gross income is less than the amount shown in Table 1 or Table 2 for your filing status. Free online federal tax filing 2012 See Table 3 for those other situations when you must file. Free online federal tax filing 2012 Table 3. Free online federal tax filing 2012 Other Situations When You Must File a 2013 Return If any of the four conditions listed below applied to you for 2013, you must file a return. Free online federal tax filing 2012 1. Free online federal tax filing 2012 You owe any special taxes, including any of the following. Free online federal tax filing 2012   a. Free online federal tax filing 2012 Alternative minimum tax. Free online federal tax filing 2012 (See Form 6251. Free online federal tax filing 2012 )   b. Free online federal tax filing 2012 Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Free online federal tax filing 2012 (See Publication 590, Individual Retirement Arrangements (IRAs), and Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Free online federal tax filing 2012 ) But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Free online federal tax filing 2012   c. Free online federal tax filing 2012 Social security or Medicare tax on tips you did not report to your employer (see Publication 531, Reporting Tip Income) or on wages you received from an employer who did not withhold these taxes (see Form 8919). Free online federal tax filing 2012   d. Free online federal tax filing 2012 Write-in taxes, including uncollected social security, Medicare, or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional tax on health savings accounts. Free online federal tax filing 2012 (See Publication 531, Publication 969, and the Form 1040 instructions for line 60. Free online federal tax filing 2012 )   e. Free online federal tax filing 2012 Household employment taxes. Free online federal tax filing 2012 But if you are filing a return only because you owe these taxes, you can file Schedule H (Form 1040) by itself. Free online federal tax filing 2012   f. Free online federal tax filing 2012 Recapture taxes. Free online federal tax filing 2012 (See the Form 1040 instructions for lines 44, 59b, and 60. Free online federal tax filing 2012 ) 2. Free online federal tax filing 2012 You (or your spouse if filing jointly) received Archer MSA, Medicare Advantage MSA, or health savings account distributions. Free online federal tax filing 2012 3. Free online federal tax filing 2012 You had net earnings from self-employment of at least $400. Free online federal tax filing 2012 (See Schedule SE (Form 1040) and its instructions. Free online federal tax filing 2012 ) 4. Free online federal tax filing 2012 You had wages of $108. Free online federal tax filing 2012 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Free online federal tax filing 2012 (See Schedule SE (Form 1040) and its instructions. Free online federal tax filing 2012 ) Who Should File Even if you do not have to file, you should file a tax return if you can get money back. Free online federal tax filing 2012 For example, you should file if one of the following applies. Free online federal tax filing 2012 You had income tax withheld from your pay. Free online federal tax filing 2012 You made estimated tax payments for the year or had any of your overpayment for last year applied to this year's estimated tax. Free online federal tax filing 2012 You qualify for the earned income credit. Free online federal tax filing 2012 See Publication 596, Earned Income Credit (EIC), for more information. Free online federal tax filing 2012 You qualify for the additional child tax credit. Free online federal tax filing 2012 See the instructions for the tax form you file (Form 1040 or 1040A) for more information. Free online federal tax filing 2012 You qualify for the refundable American opportunity education credit. Free online federal tax filing 2012 See Form 8863, Education Credits. Free online federal tax filing 2012 You qualify for the health coverage tax credit. Free online federal tax filing 2012 For information about this credit, see Form 8885, Health Coverage Tax Credit. Free online federal tax filing 2012 You qualify for the credit for federal tax on fuels. Free online federal tax filing 2012 See Form 4136, Credit for Federal Tax Paid on Fuels. Free online federal tax filing 2012 Form 1099-B received. Free online federal tax filing 2012    Even if you are not required to file a return, you should consider filing if all of the following apply. Free online federal tax filing 2012 You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement). Free online federal tax filing 2012 The amount in box 2a of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement in Table 1 or Table 2 that applies to you. Free online federal tax filing 2012 Box 3 of Form 1099-B (or substitute statement) is blank. Free online federal tax filing 2012 In this case, filing a return may keep you from getting a notice from the IRS. Free online federal tax filing 2012 Filing Status You must determine your filing status before you can determine whether you must file a tax return, your standard deduction (discussed later), and your tax. Free online federal tax filing 2012 You also use your filing status to determine whether you are eligible to claim certain other deductions and credits. Free online federal tax filing 2012 There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. Free online federal tax filing 2012 If more than one filing status applies to you, choose the one that will give you the lowest tax. Free online federal tax filing 2012 Marital Status In general, your filing status depends on whether you are considered unmarried or married. Free online federal tax filing 2012 Unmarried persons. Free online federal tax filing 2012    You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. Free online federal tax filing 2012   State law governs whether you are married or legally separated under a divorce or separate maintenance decree. Free online federal tax filing 2012 Divorced persons. Free online federal tax filing 2012    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. Free online federal tax filing 2012 Divorce and remarriage. Free online federal tax filing 2012    If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. Free online federal tax filing 2012 Annulled marriages. Free online federal tax filing 2012    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. Free online federal tax filing 2012 You must file amended returns (Form 1040X) claiming single or head of household status for all tax years that are affected by the annulment and not closed by the statute of limitations for filing a tax return. Free online federal tax filing 2012 Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Free online federal tax filing 2012 If you filed your original tax return early (for example, March 1), your return is considered filed on the due date (generally April 15). Free online federal tax filing 2012 However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. Free online federal tax filing 2012 Head of household or qualifying widow(er) with dependent child. Free online federal tax filing 2012    If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. Free online federal tax filing 2012 See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. Free online federal tax filing 2012 Married persons. Free online federal tax filing 2012    If you are considered married, you and your spouse can file a joint return or separate returns. Free online federal tax filing 2012 Considered married. Free online federal tax filing 2012    You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. Free online federal tax filing 2012 You are married and living together. Free online federal tax filing 2012 You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. Free online federal tax filing 2012 You are married and living apart but not legally separated under a decree of divorce or separate maintenance. Free online federal tax filing 2012 You are separated under an interlocutory (not final) decree of divorce. Free online federal tax filing 2012 Same-sex marriage. Free online federal tax filing 2012    For federal tax purposes, individuals of the same sex are married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Free online federal tax filing 2012 The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Free online federal tax filing 2012 However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not called a marriage under state (or foreign) law are not married for federal tax purposes. Free online federal tax filing 2012   The word “state” as used here includes the District of Columbia, Puerto Rico, and U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 territories and possessions. Free online federal tax filing 2012 It means any domestic jurisdiction that has the legal authority to sanction marriages. Free online federal tax filing 2012 The term “foreign country” means any foreign jurisdiction that has the legal authority to sanction marriages. Free online federal tax filing 2012   If individuals of the same sex are married, they generally must use the married filing jointly or married filing separately filing status. Free online federal tax filing 2012 However, if they did not live together during the last 6 months of the year, one or both of them may be able to use the head of household filing status, as explained later. Free online federal tax filing 2012   For more details, see Answers to Frequently Asked Questions For Individuals of the Same Sex Who Are Married Under State Law on IRS. Free online federal tax filing 2012 gov. Free online federal tax filing 2012 Spouse died during the year. Free online federal tax filing 2012    If your spouse died during the year, you are considered married for the whole year for filing status purposes. Free online federal tax filing 2012   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Free online federal tax filing 2012 For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . Free online federal tax filing 2012   If you remarried before the end of the tax year, you can file a joint return with your new spouse. Free online federal tax filing 2012 Your deceased spouse's filing status is married filing separately for that year. Free online federal tax filing 2012 Married persons living apart. Free online federal tax filing 2012    If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. Free online federal tax filing 2012 If you qualify to file as head of household instead of as married filing separately, your standard deduction will be higher. Free online federal tax filing 2012 Also, your tax may be lower, and you may be able to claim the earned income credit. Free online federal tax filing 2012 See Head of Household , later. Free online federal tax filing 2012 Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. Free online federal tax filing 2012 To determine your marital status, see Marital Status , earlier. Free online federal tax filing 2012 Widow(er). Free online federal tax filing 2012    Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. Free online federal tax filing 2012 You may, however, be able to use another filing status that will give you a lower tax. Free online federal tax filing 2012 See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. Free online federal tax filing 2012 How to file. Free online federal tax filing 2012    You can file Form 1040. Free online federal tax filing 2012 If you have taxable income of less than $100,000, you may be able to file Form 1040A. Free online federal tax filing 2012 If, in addition, you have no dependents, are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Free online federal tax filing 2012 If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. Free online federal tax filing 2012 Use the Single column of the Tax Table, or Section A of the Tax Computation Worksheet, to figure your tax. Free online federal tax filing 2012 Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. Free online federal tax filing 2012 On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. Free online federal tax filing 2012 You can file a joint return even if one of you had no income or deductions. Free online federal tax filing 2012 If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Free online federal tax filing 2012 Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. Free online federal tax filing 2012 If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Free online federal tax filing 2012 You can choose the method that gives the two of you the lower combined tax. Free online federal tax filing 2012 How to file. Free online federal tax filing 2012    If you file as married filing jointly, you can use Form 1040. Free online federal tax filing 2012 If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. Free online federal tax filing 2012 If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Free online federal tax filing 2012 If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. Free online federal tax filing 2012 Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, to figure your tax. Free online federal tax filing 2012 Spouse died. Free online federal tax filing 2012    If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. Free online federal tax filing 2012 See Spouse died during the year , under Married persons, earlier. Free online federal tax filing 2012   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. Free online federal tax filing 2012 Divorced persons. Free online federal tax filing 2012    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. Free online federal tax filing 2012 Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. Free online federal tax filing 2012 Accounting period. Free online federal tax filing 2012    Both of you must use the same accounting period, but you can use different accounting methods. Free online federal tax filing 2012 Joint responsibility. Free online federal tax filing 2012    Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. Free online federal tax filing 2012 This means that if one spouse does not pay the tax due, the other may have to. Free online federal tax filing 2012 Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. Free online federal tax filing 2012 One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. Free online federal tax filing 2012   You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. Free online federal tax filing 2012 Divorced taxpayer. Free online federal tax filing 2012    You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. Free online federal tax filing 2012 This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. Free online federal tax filing 2012 Relief from joint responsibility. Free online federal tax filing 2012    In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Free online federal tax filing 2012 You can ask for relief no matter how small the liability. Free online federal tax filing 2012   There are three types of relief available. Free online federal tax filing 2012 Innocent spouse relief. Free online federal tax filing 2012 Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or who have not lived together for the 12 months ending on the date the election for this relief is filed). Free online federal tax filing 2012 Equitable relief. Free online federal tax filing 2012    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. Free online federal tax filing 2012 Publication 971, Innocent Spouse Relief, explains the kinds of relief and who may qualify for them. Free online federal tax filing 2012 Signing a joint return. Free online federal tax filing 2012    For a return to be considered a joint return, both spouses generally must sign the return. Free online federal tax filing 2012 Spouse died before signing. Free online federal tax filing 2012    If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. Free online federal tax filing 2012 If neither you nor anyone else has been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. Free online federal tax filing 2012 Spouse away from home. Free online federal tax filing 2012    If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so it can be filed on time. Free online federal tax filing 2012 Injury or disease prevents signing. Free online federal tax filing 2012    If your spouse cannot sign because of injury or disease and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). Free online federal tax filing 2012 ” Be sure to also sign in the space provided for your signature. Free online federal tax filing 2012 Attach a dated statement, signed by you, to the return. Free online federal tax filing 2012 The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. Free online federal tax filing 2012 Signing as guardian of spouse. Free online federal tax filing 2012    If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. Free online federal tax filing 2012 Spouse in combat zone. Free online federal tax filing 2012    You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. Free online federal tax filing 2012 Attach a signed statement to your return explaining that your spouse is serving in a combat zone. Free online federal tax filing 2012 For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. Free online federal tax filing 2012 Other reasons spouse cannot sign. Free online federal tax filing 2012    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). Free online federal tax filing 2012 Attach the power of attorney (or a copy of it) to your tax return. Free online federal tax filing 2012 You can use Form 2848. Free online federal tax filing 2012 Nonresident alien or dual-status alien. Free online federal tax filing 2012    Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. Free online federal tax filing 2012 However, if one spouse was a nonresident alien or dual-status alien who was married to a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen or resident alien at the end of the year, the spouses can choose to file a joint return. Free online federal tax filing 2012 If you do file a joint return, you and your spouse are both treated as U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 residents for the entire tax year. Free online federal tax filing 2012 See chapter 1 of Publication 519. Free online federal tax filing 2012 Married Filing Separately You can choose married filing separately as your filing status if you are married. Free online federal tax filing 2012 This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. Free online federal tax filing 2012 If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. Free online federal tax filing 2012 You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). Free online federal tax filing 2012 This can apply to you even if you are not divorced or legally separated. Free online federal tax filing 2012 If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. Free online federal tax filing 2012 The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. Free online federal tax filing 2012 See Head of Household , later, for more information. Free online federal tax filing 2012 You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. Free online federal tax filing 2012 However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). Free online federal tax filing 2012 This way you can make sure you are using the filing status that results in the lowest combined tax. Free online federal tax filing 2012 When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. Free online federal tax filing 2012 How to file. Free online federal tax filing 2012    If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. Free online federal tax filing 2012 You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. Free online federal tax filing 2012   You can file Form 1040. Free online federal tax filing 2012 If your taxable income is less than $100,000, you may be able to file Form 1040A. Free online federal tax filing 2012 Select this filing status by checking the box on line 3 of either form. Free online federal tax filing 2012 Enter your spouse's full name and SSN or ITIN in the spaces provided. Free online federal tax filing 2012 If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. Free online federal tax filing 2012 Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. Free online federal tax filing 2012 Special Rules If you choose married filing separately as your filing status, the following special rules apply. Free online federal tax filing 2012 Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. Free online federal tax filing 2012 Your tax rate generally is higher than on a joint return. Free online federal tax filing 2012 Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. Free online federal tax filing 2012 You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 on a joint return). Free online federal tax filing 2012 If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Free online federal tax filing 2012 See Joint Return Test in Publication 503, Child and Dependent Care Expenses, for more information. Free online federal tax filing 2012 You cannot take the earned income credit. Free online federal tax filing 2012 You cannot take the exclusion or credit for adoption expenses in most cases. Free online federal tax filing 2012 You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. Free online federal tax filing 2012 You cannot exclude any interest income from qualified U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 savings bonds you used for higher education expenses. Free online federal tax filing 2012 If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. Free online federal tax filing 2012 The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. Free online federal tax filing 2012 Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). Free online federal tax filing 2012 If your spouse itemizes deductions, you cannot claim the standard deduction. Free online federal tax filing 2012 If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. Free online federal tax filing 2012 Adjusted gross income (AGI) limits. Free online federal tax filing 2012    If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. Free online federal tax filing 2012 Individual retirement arrangements (IRAs). Free online federal tax filing 2012    You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. Free online federal tax filing 2012 Your deduction is reduced or eliminated if your income is more than a certain amount. Free online federal tax filing 2012 This amount is much lower for married individuals who file separately and lived together at any time during the year. Free online federal tax filing 2012 For more information, see How Much Can You Deduct? in chapter 1 of Publication 590. Free online federal tax filing 2012 Rental activity losses. Free online federal tax filing 2012    If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income up to $25,000. Free online federal tax filing 2012 This is called a special allowance. Free online federal tax filing 2012 However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. Free online federal tax filing 2012 Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. Free online federal tax filing 2012 See Rental Activities in Publication 925, Passive Activity and At-Risk Rules. Free online federal tax filing 2012 Community property states. Free online federal tax filing 2012    If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. Free online federal tax filing 2012 See Publication 555, Community Property. Free online federal tax filing 2012 Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. Free online federal tax filing 2012 You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. Free online federal tax filing 2012 This does not include any extensions. Free online federal tax filing 2012 A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. Free online federal tax filing 2012 Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Free online federal tax filing 2012 Exception. Free online federal tax filing 2012    A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. Free online federal tax filing 2012 The personal representative has 1 year from the due date (including extensions) of the return to make the change. Free online federal tax filing 2012 See Publication 559 for more information on filing income tax returns for a decedent. Free online federal tax filing 2012 Head of Household You may be able to file as head of household if you meet all the following requirements. Free online federal tax filing 2012 You are unmarried or considered unmarried on the last day of the year. Free online federal tax filing 2012 See Marital Status , earlier, and Considered Unmarried , later. Free online federal tax filing 2012 You paid more than half the cost of keeping up a home for the year. Free online federal tax filing 2012 A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). Free online federal tax filing 2012 However, if the qualifying person is your dependent parent, he or she does not have to live with you. Free online federal tax filing 2012 See Special rule for parent , later, under Qualifying Person. Free online federal tax filing 2012 If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. Free online federal tax filing 2012 You will also receive a higher standard deduction than if you file as single or married filing separately. Free online federal tax filing 2012 How to file. Free online federal tax filing 2012    If you file as head of household, you can use Form 1040. Free online federal tax filing 2012 If you have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Free online federal tax filing 2012 Indicate your choice of this filing status by checking the box on line 4 of either form. Free online federal tax filing 2012 Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. Free online federal tax filing 2012 Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. Free online federal tax filing 2012 You are considered unmarried on the last day of the tax year if you meet all the following tests. Free online federal tax filing 2012 You file a separate return (defined earlier under Joint Return After Separate Returns ). Free online federal tax filing 2012 You paid more than half the cost of keeping up your home for the tax year. Free online federal tax filing 2012 Your spouse did not live in your home during the last 6 months of the tax year. Free online federal tax filing 2012 Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. Free online federal tax filing 2012 See Temporary absences , later. Free online federal tax filing 2012 Your home was the main home of your child, stepchild, or foster child for more than half the year. Free online federal tax filing 2012 (See Home of qualifying person , later, for rules applying to a child's birth, death, or temporary absence during the year. Free online federal tax filing 2012 ) You must be able to claim an exemption for the child. Free online federal tax filing 2012 However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative. Free online federal tax filing 2012 The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents . Free online federal tax filing 2012 If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. Free online federal tax filing 2012 See Publication 555 for more information. Free online federal tax filing 2012 Nonresident alien spouse. Free online federal tax filing 2012    You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. Free online federal tax filing 2012 However, your spouse is not a qualifying person for head of household purposes. Free online federal tax filing 2012 You must have another qualifying person and meet the other tests to be eligible to file as a head of household. Free online federal tax filing 2012 Choice to treat spouse as resident. Free online federal tax filing 2012    You are considered married if you choose to treat your spouse as a resident alien. Free online federal tax filing 2012 See chapter 1 of Publication 519. Free online federal tax filing 2012 Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. Free online federal tax filing 2012 You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 1. Free online federal tax filing 2012 Worksheet 1. Free online federal tax filing 2012 Cost of Keeping Up a Home         Amount You  Paid Total  Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $       Minus total amount you paid   ()       Amount others paid   $       If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. Free online federal tax filing 2012 Costs you include. Free online federal tax filing 2012    Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. Free online federal tax filing 2012   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. Free online federal tax filing 2012 However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Free online federal tax filing 2012 Costs you do not include. Free online federal tax filing 2012    Do not include the cost of clothing, education, medical treatment, vacations, life insurance, or transportation. Free online federal tax filing 2012 Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. Free online federal tax filing 2012 Qualifying Person See Table 4 to see who is a qualifying person. Free online federal tax filing 2012 Any person not described in Table 4 is not a qualifying person. Free online federal tax filing 2012 Example 1—child. Free online federal tax filing 2012 Your unmarried son lived with you all year and was 18 years old at the end of the year. Free online federal tax filing 2012 He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. Free online federal tax filing 2012 As a result, he is your qualifying child (see Qualifying Child , later) and, because he is single, your qualifying person for head of household purposes. Free online federal tax filing 2012 Example 2—child who is not qualifying person. Free online federal tax filing 2012 The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. Free online federal tax filing 2012 Because he does not meet the age test (explained later under Qualifying Child), your son is not your qualifying child. Free online federal tax filing 2012 Because he does not meet the gross income test (explained later under Qualifying Relative), he is not your qualifying relative. Free online federal tax filing 2012 As a result, he is not your qualifying person for head of household purposes. Free online federal tax filing 2012 Example 3—girlfriend. Free online federal tax filing 2012 Your girlfriend lived with you all year. Free online federal tax filing 2012 Even though she may be your qualifying relative if the gross income and support tests (explained later) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you . Free online federal tax filing 2012 See Table 4. Free online federal tax filing 2012 Example 4—girlfriend's child. Free online federal tax filing 2012 The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. Free online federal tax filing 2012 He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test , later). Free online federal tax filing 2012 As a result, he is not your qualifying person for head of household purposes. Free online federal tax filing 2012 Home of qualifying person. Free online federal tax filing 2012    Generally, the qualifying person must live with you for more than half of the year. Free online federal tax filing 2012 Special rule for parent. Free online federal tax filing 2012    If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. Free online federal tax filing 2012 However, you must be able to claim an exemption for your father or mother. Free online federal tax filing 2012 Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. Free online federal tax filing 2012   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. Free online federal tax filing 2012 Death or birth. Free online federal tax filing 2012    You may be eligible to file as head of household even if the qualifying person who qualifies you for this filing status is born or dies during the year. Free online federal tax filing 2012 To qualify you for head of household filing status, the qualifying person (as defined in Table 4) must be one of the following. Free online federal tax filing 2012 Your qualifying child or qualifying relative who lived with you for more than half the part of the year he or she was alive. Free online federal tax filing 2012 Your parent for whom you paid, for the entire part of the year he or she was alive, more than half the cost of keeping up the home he or she lived in. Free online federal tax filing 2012 Example. Free online federal tax filing 2012 You are unmarried. Free online federal tax filing 2012 Your mother, for whom you can claim an exemption, lived in an apartment by herself. Free online federal tax filing 2012 She died on September 2. Free online federal tax filing 2012 The cost of the upkeep of her apartment for the year until her death was $6,000. Free online federal tax filing 2012 You paid $4,000 and your brother paid $2,000. Free online federal tax filing 2012 Your brother made no other payments towards your mother's support. Free online federal tax filing 2012 Your mother had no income. Free online federal tax filing 2012 Because you paid more than half of the cost of keeping up your mother's apartment from January 1 until her death, and you can claim an exemption for her, you can file as a head of household. Free online federal tax filing 2012 Temporary absences. Free online federal tax filing 2012    You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. Free online federal tax filing 2012 It must be reasonable to assume the absent person will return to the home after the temporary absence. Free online federal tax filing 2012 You must continue to keep up the home during the absence. Free online federal tax filing 2012 Kidnapped child. Free online federal tax filing 2012    You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. Free online federal tax filing 2012 You can claim head of household filing status if all the following statements are true. Free online federal tax filing 2012 The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Free online federal tax filing 2012 In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Free online federal tax filing 2012 You would have qualified for head of household filing status if the child had not been kidnapped. Free online federal tax filing 2012   This treatment applies for all years until the earliest of: The year the child is returned, The year there is a determination that the child is dead, or The year the child would have reached age 18. Free online federal tax filing 2012 Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. Free online federal tax filing 2012 The year of death is the last year for which you can file jointly with your deceased spouse. Free online federal tax filing 2012 See Married Filing Jointly , earlier. Free online federal tax filing 2012 You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. Free online federal tax filing 2012 For example, if your spouse died in 2012 and you have not remarried, you may be able to use this filing status for 2013 and 2014. Free online federal tax filing 2012 The rules for using this filing status are explained in detail here. Free online federal tax filing 2012 This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). Free online federal tax filing 2012 It does not entitle you to file a joint return. Free online federal tax filing 2012 How to file. Free online federal tax filing 2012    If you file as a qualifying widow(er) with dependent child, you can use Form 1040. Free online federal tax filing 2012 If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Free online federal tax filing 2012 Check the box on line 5 of either form. Free online federal tax filing 2012 Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Free online federal tax filing 2012 Table 4. Free online federal tax filing 2012 Who Is a Qualifying Person Qualifying You To File as Head of Household?1 See the text of this publication for the other requirements you must meet to claim head of household filing status. Free online federal tax filing 2012 IF the person is your . Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012   AND . Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012   THEN that person is . Free online federal tax filing 2012 . Free online federal tax filing 2012 . Free online federal tax filing 2012 qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. Free online federal tax filing 2012   he or she is married and you can claim an exemption for him or her   a qualifying person. Free online federal tax filing 2012   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. Free online federal tax filing 2012 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. Free online federal tax filing 2012 6   you cannot claim an exemption for him or her   not a qualifying person. Free online federal tax filing 2012 qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests). Free online federal tax filing 2012   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you , later, and you can claim an exemption for him or her5   a qualifying person. Free online federal tax filing 2012   he or she did not live with you more than half the year   not a qualifying person. Free online federal tax filing 2012   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you , later, and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. Free online federal tax filing 2012   you cannot claim an exemption for him or her   not a qualifying person. Free online federal tax filing 2012 1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year. Free online federal tax filing 2012 2 The term “qualifying child” is defined under Exemptions for Dependents, later. Free online federal tax filing 2012 Note: If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child, later. Free online federal tax filing 2012 If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. Free online federal tax filing 2012 3 This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. Free online federal tax filing 2012 4 The term “qualifying relative” is defined under Exemptions for Dependents, later. Free online federal tax filing 2012 5 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. Free online federal tax filing 2012 See Multiple Support Agreement . Free online federal tax filing 2012 6 See Special rule for parent . Free online federal tax filing 2012 Eligibility rules. Free online federal tax filing 2012    You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all the following tests. Free online federal tax filing 2012 You were entitled to file a joint return with your spouse for the year your spouse died. Free online federal tax filing 2012 It does not matter whether you actually filed a joint return. Free online federal tax filing 2012 Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Free online federal tax filing 2012 You have a child or stepchild for whom you can claim an exemption. Free online federal tax filing 2012 This does not include a foster child. Free online federal tax filing 2012 This child lived in your home all year, except for temporary absences. Free online federal tax filing 2012 See Temporary absences , earlier, under Head of Household. Free online federal tax filing 2012 There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. Free online federal tax filing 2012 You paid more than half the cost of keeping up a home for the year. Free online federal tax filing 2012 See Keeping Up a Home , earlier, under Head of Household. Free online federal tax filing 2012 Example. Free online federal tax filing 2012 John's wife died in 2011. Free online federal tax filing 2012 John has not remarried. Free online federal tax filing 2012 He has continued during 2012 and 2013 to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. Free online federal tax filing 2012 For 2011 he was entitled to file a joint return for himself and his deceased wife. Free online federal tax filing 2012 For 2012 and 2013, he can file as a qualifying widower with a dependent child. Free online federal tax filing 2012 After 2013, he can file as head of household if he qualifies. Free online federal tax filing 2012 Death or birth. Free online federal tax filing 2012    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. Free online federal tax filing 2012 You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. Free online federal tax filing 2012 Kidnapped child. Free online federal tax filing 2012    You may be eligible to file as a qualifying widow(er) with dependent child even if the child who qualifies you for this filing status has been kidnapped. Free online federal tax filing 2012 You can claim qualifying widow(er) with dependent child filing status if all the following statements are true. Free online federal tax filing 2012 The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Free online federal tax filing 2012 In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Free online federal tax filing 2012 You would have qualified for qualifying widow(er) with dependent child filing status if the child had not been kidnapped. Free online federal tax filing 2012 As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. Free online federal tax filing 2012 Exemptions Exemptions reduce your taxable income. Free online federal tax filing 2012 You can deduct $3,900 for each exemption you claim in 2013. Free online federal tax filing 2012 If you are entitled to two exemptions for 2013, you can deduct $7,800 ($3,900 × 2). Free online federal tax filing 2012 But you may lose the benefit of part or all of your exemptions if your adjusted gross income is above a certain amount. Free online federal tax filing 2012 See Phaseout of Exemptions , later. Free online federal tax filing 2012 Types of exemptions. Free online federal tax filing 2012    There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). Free online federal tax filing 2012 While each is worth the same amount ($3,900 for 2013), different rules, discussed later, apply to each type. Free online federal tax filing 2012 Dependent cannot claim a personal exemption. Free online federal tax filing 2012    If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim a personal exemption on his or her own tax return. Free online federal tax filing 2012 How to claim exemptions. Free online federal tax filing 2012    How you claim an exemption on your tax return depends on which form you file. Free online federal tax filing 2012 Form 1040EZ filers. Free online federal tax filing 2012    If you file Form 1040EZ, the exemption amount is combined with the standard deduction and entered on line 5. Free online federal tax filing 2012 Form 1040A filers. Free online federal tax filing 2012    If you file Form 1040A, complete lines 6a through 6d. Free online federal tax filing 2012 The total number of exemptions you can claim is the total in the box on line 6d. Free online federal tax filing 2012 Also complete line 26. Free online federal tax filing 2012 Form 1040 filers. Free online federal tax filing 2012    If you file Form 1040, complete lines 6a through 6d. Free online federal tax filing 2012 The total number of exemptions you can claim is the total in the box on line 6d. Free online federal tax filing 2012 Also complete line 42. Free online federal tax filing 2012 If your adjusted gross income is more than $150,000, see Phaseout of Exemptions , later. Free online federal tax filing 2012 U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen or resident alien. Free online federal tax filing 2012    If you are a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen, U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 resident alien, U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 national (defined later) or a resident of Canada or Mexico, you may qualify for any of the exemptions discussed here. Free online federal tax filing 2012 Nonresident aliens. Free online federal tax filing 2012    Generally, if you are a nonresident alien (other than a resident of Canada or Mexico, or certain residents of India or Korea), you can qualify for only one personal exemption for yourself. Free online federal tax filing 2012 You cannot claim exemptions for a spouse or dependents. Free online federal tax filing 2012   These restrictions do not apply if you are a nonresident alien married to a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen or resident alien and have chosen to be treated as a resident of the United States. Free online federal tax filing 2012 More information. Free online federal tax filing 2012    For more information on exemptions if you are a nonresident alien, see chapter 5 in Publication 519. Free online federal tax filing 2012 Dual-status taxpayers. Free online federal tax filing 2012    If you have been both a nonresident alien and a resident alien in the same tax year, you should see Publication 519 for information on determining your exemptions. Free online federal tax filing 2012 Personal Exemptions You are generally allowed one exemption for yourself. Free online federal tax filing 2012 If you are married, you may be allowed one exemption for your spouse. Free online federal tax filing 2012 These are called personal exemptions. Free online federal tax filing 2012 Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. Free online federal tax filing 2012 If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. Free online federal tax filing 2012 Your Spouse's Exemption Your spouse is never considered your dependent. Free online federal tax filing 2012 Joint return. Free online federal tax filing 2012    On a joint return, you can claim one exemption for yourself and one for your spouse. Free online federal tax filing 2012 Separate return. Free online federal tax filing 2012    If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Free online federal tax filing 2012 This is true even if the other taxpayer does not actually claim your spouse as a dependent. Free online federal tax filing 2012 You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 tax purposes and satisfy the other conditions listed above. Free online federal tax filing 2012 Head of household. Free online federal tax filing 2012    If you qualify for head of household filing status because you are considered unmarried, you can claim an exemption for your spouse if the conditions described in the preceding paragraph are satisfied. Free online federal tax filing 2012   To claim the exemption for your spouse, check the box on line 6b of Form 1040 or Form 1040A and enter the name of your spouse in the space to the right of the box. Free online federal tax filing 2012 Enter the SSN or ITIN of your spouse in the space provided at the top of Form 1040 or Form 1040A. Free online federal tax filing 2012 Death of spouse. Free online federal tax filing 2012    If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . Free online federal tax filing 2012 If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . Free online federal tax filing 2012   If you remarried during the year, you cannot take an exemption for your deceased spouse. Free online federal tax filing 2012   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. Free online federal tax filing 2012 If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. Free online federal tax filing 2012 Divorced or separated spouse. Free online federal tax filing 2012    If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Free online federal tax filing 2012 This rule applies even if you provided all of your former spouse's support. Free online federal tax filing 2012 Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Free online federal tax filing 2012 You can claim an exemption for a dependent even if your dependent files a return. Free online federal tax filing 2012 The term “dependent” means: A qualifying child, or A qualifying relative. Free online federal tax filing 2012 The terms “ qualifying child ” and “ qualifying relative ” are defined later. Free online federal tax filing 2012 You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. Free online federal tax filing 2012 Dependent taxpayer test. Free online federal tax filing 2012 Joint return test. Free online federal tax filing 2012 Citizen or resident test. Free online federal tax filing 2012 These three tests are explained in detail later. Free online federal tax filing 2012 All the requirements for claiming an exemption for a dependent are summarized in Table 5. Free online federal tax filing 2012 Table 5. Free online federal tax filing 2012 Overview of the Rules for Claiming an Exemption for a Dependent This table is only an overview of the rules. Free online federal tax filing 2012 For details, see the rest of this publication. Free online federal tax filing 2012 You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer. Free online federal tax filing 2012   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. Free online federal tax filing 2012   You cannot claim a person as a dependent unless that person is a U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 citizen, U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 resident alien, U. Free online federal tax filing 2012 S. Free online federal tax filing 2012 national, or a resident of Canada or Mexico. Free online federal tax filing 2012 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Free online federal tax filing 2012   Tests To Be a Qualifying Child Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Free online federal tax filing 2012   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled. Free online federal tax filing 2012   The child must have lived with you for more than half of the year. Free online federal tax filing 2012 2  The child must not have provided more than half of his or her own support for the year. Free online federal tax filing 2012   The child is not filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid). Free online federal tax filing 2012  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Free online federal tax filing 2012 See the Special Rule for Qualifying Child of More Than One Person described later to find out which person is the person entitled to claim the child as a qualifying child. Free online federal tax filing 2012 The person cannot be your qualifying child or the qualifying child of any other taxpayer. Free online federal tax filing 2012   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). Free online federal tax filing 2012   The person's gross income for the year must be less than $3,900. Free online federal tax filing 2012 3  You must provide more than half of the person's total support for the year. Free online federal tax filing 2012 4  1 There is an exception for certain adopted children. Free online federal tax filing 2012 2 There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Free online federal tax filing 2012 3 There is an exception if the person is disabled and has income from a sheltered workshop. Free online federal tax filing 2012 4 There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Free online federal tax filing 2012 Dependent not allowed a personal exemption. Free online federal tax filing 2012 If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. Free online federal tax filing 2012 This is true even if you do not claim the dependent's exemption on your return. Free online federal tax filing 2012 It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Free online federal tax filing 2012 Housekeepers, maids, or servants. Free online federal tax filing 2012    If these people work for you, you cannot claim exemptions for them. Free online federal tax filing 2012 Child tax credit. Free online federal tax filing 2012    You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Free online federal tax filing 2012 For more information, see the instructions for the tax form you file (Form 1040 or 1040A). Free online federal tax filing 2012 Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Free online federal tax filing 2012 Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. Free online federal tax filing 2012 If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. Free online federal tax filing 2012 Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. Free online federal tax filing 2012 Exception. Free online federal tax filing 2012    You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. Free online federal tax filing 2012 Example 1—child files joint return. Free online federal tax filing 2012 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Free online federal tax filing 2012 He earned $25,000 for the year. Free online federal tax filing 2012 The couple files a joint return. Free online federal tax filing 2012 You cannot take an exemption for your daughter. Free online federal tax filing 2012 Example 2—child files joint return only as claim for refund of withheld tax. Free online federal tax filing 2012 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Free online federal tax filing 2012 Neither is required to file a tax return. Free online federal tax filing 2012 They do not have a child. Free online federal tax filing 2012 Taxes were taken out of their pay so they file a joint return only to get a refund of the withheld taxes. Free online federal tax filing 2012 The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. Free online federal tax filing 2012 You can claim exemptions for each of them if all the other tests to do so are met. Free online federal tax filing 2012 Example 3—child files joint return to claim American opportunity credit. Free online federal tax filing 2012 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Free online federal tax filing 2012 He and his wife are not required to file a tax return. Free online federal tax filing 2012 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Free online federal tax filing 2012 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income