File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Free Taxes H&r Block

Where To Get State Tax Forms2010 Tax CalculatorTaxact 2011 Returning UserMyfreetaxes Com KingcountyHow Do I File My 2012 Taxes For FreeEz 1040 Form1040ez Tax Form And BookletTax Cut Free FileWhat Forms Do I Need To File My 2011 TaxesFree 2011 Tax Software DownloadFree FileState Tax Forms 20122011 Taxact LoginMyfreetaxes 20142011 Federal Income Tax Forms 1040 EzFiling 2012 Tax ReturnsCan You Efile A 1040xTax Form 1040ezFree Income Tax ServiceFree Tax ReturnsH&r Block Free Tax Software1040ez 2012 FormTurbotax Deluxe 2010Amending Your Tax ReturnFree Tax Calculator 2011Need Do 2011 TaxesFree Tax Software OnlineE File State TaxesHow To File An Amended Tax ReturnE File Tax Returns2011 1040 Form Download1040ez Income Tax FormFillable Form 1040ezIrs ComFree State Tax Fileing1040 Easy FormHow To File Unemployment Taxes1040ez Form For 2013Filing A 2012 Tax ReturnFree Tax Return For 2012

Free Taxes H&r Block

Free taxes h&r block 10. Free taxes h&r block   Business Bad Debts Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Definition of Business Bad DebtAccrual method. Free taxes h&r block Cash method. Free taxes h&r block Debt acquired from a decedent. Free taxes h&r block Liquidation. Free taxes h&r block Types of Business Bad Debts When a Debt Becomes Worthless How To Claim a Business Bad DebtSpecific Charge-Off Method Nonaccrual-Experience Method Recovery of a Bad DebtNet operating loss (NOL) carryover. Free taxes h&r block Introduction You have a bad debt if you cannot collect money owed to you. Free taxes h&r block A bad debt is either a business bad debt or a nonbusiness bad debt. Free taxes h&r block This chapter discusses only business bad debts. Free taxes h&r block Generally, a business bad debt is one that comes from operating your trade or business. Free taxes h&r block You can deduct business bad debts on Schedule C (Form 1040) or your applicable business income tax return. Free taxes h&r block All other bad debts are nonbusiness bad debts and are deductible only as short-term capital losses. Free taxes h&r block For more information on nonbusiness bad debts, see Publication 550. Free taxes h&r block Topics - This chapter discusses: Definition of business bad debt When a debt becomes worthless How to claim a business bad debt Recovery of a bad debt Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 556 Examination of Returns, Appeal Rights, and Claims for Refund Form (and Instructions) Schedule C (Form 1040) Profit or Loss From Business 1040X Amended U. Free taxes h&r block S. Free taxes h&r block Individual Income Tax Return 1045 Application for Tentative Refund 1139 Corporation Application for Tentative Refund 3115 Application for Change in Accounting Method See chapter 12 for information about getting publications and forms. Free taxes h&r block Definition of Business Bad Debt A business bad debt is a loss from the worthlessness of a debt that was either: Created or acquired in your trade or business, or Closely related to your trade or business when it became partly or totally worthless. Free taxes h&r block A debt is closely related to your trade or business if your primary motive for incurring the debt is business related. Free taxes h&r block Bad debts of a corporation (other than an S corporation) are always business bad debts. Free taxes h&r block Credit sales. Free taxes h&r block   Business bad debts are mainly the result of credit sales to customers. Free taxes h&r block Goods that have been sold, but not yet paid for, and services that have been performed, but not yet paid for, are recorded in your books as either accounts receivable or notes receivable. Free taxes h&r block After a reasonable period of time, if you have tried to collect the amount due, but are unable to do so, the uncollectible part becomes a business bad debt. Free taxes h&r block   Accounts or notes receivable valued at fair market value (FMV) when received are deductible only at that value, even though the FMV may be less than the face value. Free taxes h&r block If you purchased an account receivable for less than its face value, and the receivable subsequently becomes worthless, the most you are allowed to deduct is the amount you paid to acquire it. Free taxes h&r block    You can claim a business bad debt deduction only if the amount owed to you was previously included in gross income. Free taxes h&r block This applies to amounts owed to you from all sources of taxable income, including sales, services, rents, and interest. Free taxes h&r block Accrual method. Free taxes h&r block   If you use the accrual method of accounting, you generally report income as you earn it. Free taxes h&r block You can only claim a bad debt deduction for an uncollectible receivable if you have previously included the uncollectible amount in income. Free taxes h&r block   If you qualify, you can use the nonaccrual-experience method of accounting discussed later. Free taxes h&r block Under this method, you do not have to accrue income that, based on your experience, you do not expect to collect. Free taxes h&r block Cash method. Free taxes h&r block   If you use the cash method of accounting, you generally report income when you receive payment. Free taxes h&r block You cannot claim a bad debt deduction for amounts owed to you because you never included those amounts in income. Free taxes h&r block For example, a cash basis architect cannot claim a bad debt deduction if a client fails to pay the bill because the architect's fee was never included in income. Free taxes h&r block Debts from a former business. Free taxes h&r block   If you sell your business but retain its receivables, these debts are business debts because they arose out of your trade or business. Free taxes h&r block If any of these receivables subsequently become worthless, the loss is still a business bad debt. Free taxes h&r block Debt acquired from a decedent. Free taxes h&r block   The character of a loss from debts of a business acquired from a decedent is determined in the same way as debts acquired on the purchase of a business. Free taxes h&r block The executor of the decedent's estate treats any loss from the debts as a business bad debt if the debts were closely related to the decedent's trade or business when they became worthless. Free taxes h&r block Otherwise, a loss from these debts becomes a nonbusiness bad debt for the decedent's estate. Free taxes h&r block Liquidation. Free taxes h&r block   If you liquidate your business and some of the accounts receivable that you retain become worthless, they become business bad debts. Free taxes h&r block Types of Business Bad Debts Business bad debts may result from the following. Free taxes h&r block Loans to clients and suppliers. Free taxes h&r block   If you loan money to a client, supplier, employee, or distributor for a business reason and you are unable to collect the loan after attempting to do so, you have a business bad debt. Free taxes h&r block Debts owed by political parties. Free taxes h&r block   If a political party (or other organization that accepts contributions or spends money to influence elections) owes you money and the debt becomes worthless, you can claim a bad debt deduction only if all of the following requirements are met. Free taxes h&r block You use the accrual method of accounting. Free taxes h&r block The debt arose from the sale of goods or services in the ordinary course of your trade or business. Free taxes h&r block More than 30% of your receivables accrued in the year of the sale were from sales to political parties. Free taxes h&r block You made substantial and continuing efforts to collect on the debt. Free taxes h&r block Loan or capital contribution. Free taxes h&r block   You cannot claim a bad debt deduction for a loan you made to a corporation if, based on the facts and circumstances, the loan is actually a contribution to capital. Free taxes h&r block Debts of an insolvent partner. Free taxes h&r block   If your business partnership breaks up and one of your former partners becomes insolvent, you may have to pay more than your pro rata share of the partnership's debts. Free taxes h&r block If you pay any part of the insolvent partner's share of the debts, you can claim a bad debt deduction for the amount you paid that is attributable to the insolvent partner's share. Free taxes h&r block Business loan guarantee. Free taxes h&r block   If you guarantee a debt that subsequently becomes worthless, the debt can qualify as a business bad debt if all the following requirements are met. Free taxes h&r block You made the guarantee in the course of your trade or business. Free taxes h&r block You have a legal duty to pay the debt. Free taxes h&r block You made the guarantee before the debt became worthless. Free taxes h&r block You meet this requirement if you reasonably expected you would not have to pay the debt without full reimbursement from the borrower. Free taxes h&r block You received reasonable consideration for making the guarantee. Free taxes h&r block You meet this requirement if you made the guarantee in accord with normal business practice or for a good faith business purpose. Free taxes h&r block Example. Free taxes h&r block Jane Zayne owns the Zayne Dress Company. Free taxes h&r block She guaranteed payment of a $20,000 note for Elegant Fashions, a dress outlet. Free taxes h&r block Elegant Fashions is one of Zayne's largest clients. Free taxes h&r block Elegant Fashions later defaulted on the loan. Free taxes h&r block As a result, Ms. Free taxes h&r block Zayne paid the remaining balance of the loan in full to the bank. Free taxes h&r block She can claim a business bad debt deduction only for the amount she paid, since her guarantee was made in the course of her trade or business for a good faith business purpose. Free taxes h&r block She was motivated by the desire to retain one of her better clients and keep a sales outlet. Free taxes h&r block Deductible in the year paid. Free taxes h&r block   If you make a payment on a loan you guaranteed, you can deduct it in the year paid, unless you have rights against the borrower. Free taxes h&r block Rights against a borrower. Free taxes h&r block   When you make payment on a loan you guaranteed, you may have the right to take the place of the lender. Free taxes h&r block The debt is then owed to you. Free taxes h&r block If you have this right, or some other right to demand payment from the borrower, you cannot claim a bad debt deduction until these rights become partly or totally worthless. Free taxes h&r block Joint debtor. Free taxes h&r block   If two or more debtors jointly owe you money, your inability to collect from one does not enable you to deduct a proportionate amount as a bad debt. Free taxes h&r block Sale of mortgaged property. Free taxes h&r block   If mortgaged or pledged property is sold for less than the debt, the unpaid, uncollectible balance of the debt is a bad debt. Free taxes h&r block When a Debt Becomes Worthless A debt becomes worthless when there is no longer any chance the amount owed will be paid. Free taxes h&r block This may occur when the debt is due or prior to that date. Free taxes h&r block To demonstrate worthlessness, you must only show that you have taken reasonable steps to collect the debt but were unable to do so. Free taxes h&r block It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. Free taxes h&r block Bankruptcy of your debtor is generally good evidence of the worthlessness of at least a part of an unsecured and unpreferred debt. Free taxes h&r block Property received for debt. Free taxes h&r block   If you receive property in partial settlement of a debt, reduce the debt by the property's FMV, which becomes the property's basis. Free taxes h&r block You can deduct the remaining debt as a bad debt if and when it becomes worthless. Free taxes h&r block   If you later sell the property for more than its basis, any gain on the sale is due to the appreciation of the property. Free taxes h&r block It is not a recovery of a bad debt. Free taxes h&r block For information on the sale of an asset, see Publication 544. Free taxes h&r block How To Claim a Business Bad Debt There are two methods to claim a business bad debt. Free taxes h&r block The specific charge-off method. Free taxes h&r block The nonaccrual-experience method. Free taxes h&r block Generally, you must use the specific charge-off method. Free taxes h&r block However, you may use the nonaccrual-experience method if you meet the requirements discussed later under Nonaccrual-Experience Method . Free taxes h&r block Specific Charge-Off Method If you use the specific charge-off method, you can deduct specific business bad debts that become either partly or totally worthless during the tax year. Free taxes h&r block However, with respect to partly worthless bad debts, your deduction is limited to the amount you charged off on your books during the year. Free taxes h&r block Partly worthless debts. Free taxes h&r block   You can deduct specific bad debts that become partly uncollectible during the tax year. Free taxes h&r block Your tax deduction is limited to the amount you charge off on your books during the year. Free taxes h&r block You do not have to charge off and deduct your partly worthless debts annually. Free taxes h&r block You can delay the charge off until a later year. Free taxes h&r block However, you cannot deduct any part of a debt after the year it becomes totally worthless. Free taxes h&r block Significantly modified debt. Free taxes h&r block   An exception to the charge-off rule exists for debt which has been significantly modified and on which the holder recognized gain. Free taxes h&r block For more information, see Regulations section 1. Free taxes h&r block 166-3(a)(3). Free taxes h&r block Deduction disallowed. Free taxes h&r block   Generally, you can claim a partial bad debt deduction only in the year you make the charge-off on your books. Free taxes h&r block If, under audit, the IRS does not allow your deduction and the debt becomes partly worthless in a later tax year, you can deduct the amount you charged off in that year plus the disallowed amount charged off in the earlier year. Free taxes h&r block The charge-off in the earlier year, unless reversed on your books, fulfills the charge-off requirement for the later year. Free taxes h&r block Totally worthless debts. Free taxes h&r block   If a debt becomes totally worthless in the current tax year, you can deduct the entire amount, less any amount deducted in an earlier tax year when the debt was only partly worthless. Free taxes h&r block   You do not have to make an actual charge-off on your books to claim a bad debt deduction for a totally worthless debt. Free taxes h&r block However, you may want to do so. Free taxes h&r block If you do not and the IRS later rules the debt is only partly worthless, you will not be allowed a deduction for the debt in that tax year because a deduction of a partly worthless bad debt is limited to the amount actually charged off. Free taxes h&r block See Partly worthless debts, earlier. Free taxes h&r block Filing a claim for refund. Free taxes h&r block   If you did not deduct a bad debt on your original return for the year it became worthless, you can file a claim for a credit or refund. Free taxes h&r block If the bad debt was totally worthless, you must file the claim by the later of the following dates. Free taxes h&r block 7 years from the date your original return was due (not including extensions). Free taxes h&r block 2 years from the date you paid the tax. Free taxes h&r block   If the claim is for a partly worthless bad debt, you must file the claim by the later of the following dates. Free taxes h&r block 3 years from the date you filed your original return. Free taxes h&r block 2 years from the date you paid the tax. Free taxes h&r block You may have longer to file the claim if you were unable to manage your financial affairs due to a physical or mental impairment. Free taxes h&r block Such an impairment requires proof of existence. Free taxes h&r block   For details and more information about filing a claim, see Publication 556. Free taxes h&r block Use one of the following forms to file a claim. Free taxes h&r block For more information, see the instructions for the applicable form. Free taxes h&r block Table 10-1. Free taxes h&r block Forms Used To File a Claim IF you filed as a. Free taxes h&r block . Free taxes h&r block . Free taxes h&r block THEN file. Free taxes h&r block . Free taxes h&r block . Free taxes h&r block Sole proprietor or farmer Form 1040X Corporation Form 1120X S corporation Form 1120S and check box H(4) Partnership Form 1065X if filing on paper or  Form 1065 and check box G(5) if filing electronically Nonaccrual-Experience Method If you use an accrual method of accounting and qualify under the rules explained in this section, you can use the nonaccrual-experience method for bad debts. Free taxes h&r block Under this method, you do not accrue service related income you expect to be uncollectible. Free taxes h&r block Because the expected uncollectible amounts are not included in income, these amounts are not later deducted from income. Free taxes h&r block Generally, you can use the nonaccrual-experience method for accounts receivable for services you performed only if: The services are provided in the fields of accounting, actuarial science, architecture, consulting, engineering, health, law, or the performing arts, or You meet the $5 million gross receipts test for all prior years. Free taxes h&r block Service related income. Free taxes h&r block   You can use the nonaccrual-experience method only for amounts earned by performing services. Free taxes h&r block You cannot use this method for amounts owed to you from activities such as lending money, selling goods, or acquiring receivables or other rights to receive payment. Free taxes h&r block Gross receipts test. Free taxes h&r block   To find out if you meet the $5 million gross receipts test for all prior years, you must figure the average annual gross receipts for each prior year. Free taxes h&r block If your average annual gross receipts for any year exceeds $5 million, you cannot use the non-accural experience method. Free taxes h&r block   The average annual gross receipts for any year is the average of gross receipts from the year in question and the 2 previous years. Free taxes h&r block For example, if you were figuring the average annual gross receipts for 2013, you would average your gross receipts for 2011, 2012, and 2013. Free taxes h&r block Interest or penalty charged. Free taxes h&r block   Generally, you cannot use the nonaccrual-experience method for amounts due on which you charge interest or a late payment penalty. Free taxes h&r block However, do not treat a discount offered for early payment as the charging of interest or a penalty if both the following apply. Free taxes h&r block You otherwise accrue the full amount due as gross income at the time you provide the services. Free taxes h&r block You treat the discount allowed for early payment as an adjustment to gross income in the year of payment. Free taxes h&r block Change in accounting method. Free taxes h&r block   Generally, you must obtain consent to change to a nonaccrual-experience method (other than one of the safe harbor methods) or to change from one method to another. Free taxes h&r block See Form 3115 and the Instructions for Form 3115 for more information. Free taxes h&r block Recovery of a Bad Debt If you claim a deduction for a bad debt on your income tax return and later recover (collect) all or part of it, you may have to include all or part of the recovery in gross income. Free taxes h&r block The amount you include is limited to the amount you actually deducted. Free taxes h&r block However, you can exclude the amount deducted that did not reduce your tax. Free taxes h&r block Report the recovery as “Other income” on the appropriate business form or schedule. Free taxes h&r block See Recoveries in Publication 525 for more information. Free taxes h&r block Net operating loss (NOL) carryover. Free taxes h&r block   If a bad debt deduction increases an NOL carryover that has not expired before the beginning of the tax year in which the recovery takes place, you treat the deduction as having reduced your tax. Free taxes h&r block A bad debt deduction that contributes to a NOL helps lower taxes in the year to which you carry the NOL. Free taxes h&r block For more information about NOLs, see Publication 536. Free taxes h&r block Also, see the Instructions for Form 1045, and the Instructions for Form 1139. Free taxes h&r block Prev  Up  Next   Home   More Online Publications
Español

Uniformed Services University of the Health Sciences

The Uniformed Services University of the Health Sciences is comprised of a School of Medicine and a School of Nursing, providing higher health sciences education ad training to service members.

Contact the Agency or Department

Website: Uniformed Services University of the Health Sciences

E-mail:

Address: 4301 Jones Bridge Rd
Bethesda, MD 20814

Phone Number: (301) 295-3013(301) 295-3383 (Admissions)

The Free Taxes H&r Block

Free taxes h&r block Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Free taxes h&r block Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Free taxes h&r block Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Free taxes h&r block Any forgiven tax liability owed to the IRS will not have to be paid. Free taxes h&r block Any forgiven tax liability that has already been paid will be refunded. Free taxes h&r block (See Refund of Taxes Paid, later. Free taxes h&r block ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Free taxes h&r block Then read Amount of Tax Forgiven. Free taxes h&r block Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Free taxes h&r block Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Free taxes h&r block See Minimum Amount of Relief later under Amount of Tax Forgiven. Free taxes h&r block Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Free taxes h&r block Oklahoma City attack. Free taxes h&r block   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Free taxes h&r block Example 1. Free taxes h&r block A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Free taxes h&r block His income tax is forgiven for 1994 and 1995. Free taxes h&r block Example 2. Free taxes h&r block A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Free taxes h&r block She subsequently died of her wounds in 1996. Free taxes h&r block Her income tax is forgiven for 1994, 1995, and 1996. Free taxes h&r block September 11 attacks and anthrax attacks. Free taxes h&r block   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Free taxes h&r block Example 1. Free taxes h&r block A Pentagon employee died in the September 11 attack. Free taxes h&r block Her income tax is forgiven for 2000 and 2001. Free taxes h&r block Example 2. Free taxes h&r block A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Free taxes h&r block His income tax liability is forgiven for 2000, 2001, and 2002. Free taxes h&r block Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Free taxes h&r block On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Free taxes h&r block To figure the tax to be forgiven, use the following worksheets. Free taxes h&r block Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Free taxes h&r block Use Worksheet B for any eligible year the decedent filed a joint return. Free taxes h&r block See the illustrated Worksheet B near the end of this publication. Free taxes h&r block Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Free taxes h&r block Instead, complete Worksheet C and file a return for the decedent's last tax year. Free taxes h&r block See Minimum Amount of Relief, later. Free taxes h&r block If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Free taxes h&r block In English–7 a. Free taxes h&r block m. Free taxes h&r block to 10 p. Free taxes h&r block m. Free taxes h&r block local time. Free taxes h&r block In Spanish–8 a. Free taxes h&r block m. Free taxes h&r block to 9:30 p. Free taxes h&r block m. Free taxes h&r block local time. Free taxes h&r block Both spouses died. Free taxes h&r block   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Free taxes h&r block Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Free taxes h&r block If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Free taxes h&r block However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Free taxes h&r block The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Free taxes h&r block Residents of community property states. Free taxes h&r block   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Free taxes h&r block Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Free taxes h&r block Worksheet B. Free taxes h&r block Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free taxes h&r block 1       2 Enter the decedent's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 2       3 Enter the decedent's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free taxes h&r block See the instructions. Free taxes h&r block 4       5 Subtract line 4 from line 3. Free taxes h&r block 5       6 Enter the surviving spouse's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 6       7 Enter the surviving spouse's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free taxes h&r block 8       9 Subtract line 8 from line 7. Free taxes h&r block 9       10 Add lines 5 and 9. Free taxes h&r block 10       11 Enter the total tax from the joint return. Free taxes h&r block See Table 1 on page 5 for the line number for years before 2002. Free taxes h&r block 11       12 Add lines 4 and 8. Free taxes h&r block 12       13 Subtract line 12 from line 11. Free taxes h&r block 13       14 Divide line 5 by line 10. Free taxes h&r block Enter the result as a decimal. Free taxes h&r block 14       15 Tax to be forgiven. Free taxes h&r block Multiply line 13 by line 14 and enter the result. Free taxes h&r block 15       Note. Free taxes h&r block If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free taxes h&r block Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free taxes h&r block If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free taxes h&r block The IRS will determine the amount to be refunded. Free taxes h&r block Worksheet B. Free taxes h&r block Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free taxes h&r block 1       2 Enter the decedent's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 2       3 Enter the decedent's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free taxes h&r block See the instructions. Free taxes h&r block 4       5 Subtract line 4 from line 3. Free taxes h&r block 5       6 Enter the surviving spouse's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 6       7 Enter the surviving spouse's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free taxes h&r block 8       9 Subtract line 8 from line 7. Free taxes h&r block 9       10 Add lines 5 and 9. Free taxes h&r block 10       11 Enter the total tax from the joint return. Free taxes h&r block See Table 1 on page 5 for the line number for years before 2002. Free taxes h&r block 11       12 Add lines 4 and 8. Free taxes h&r block 12       13 Subtract line 12 from line 11. Free taxes h&r block 13       14 Divide line 5 by line 10. Free taxes h&r block Enter the result as a decimal. Free taxes h&r block 14       15 Tax to be forgiven. Free taxes h&r block Multiply line 13 by line 14 and enter the result. Free taxes h&r block 15       Note. Free taxes h&r block If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free taxes h&r block Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free taxes h&r block If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free taxes h&r block The IRS will determine the amount to be refunded. Free taxes h&r block Instructions for Worksheet B Table 1. Free taxes h&r block Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free taxes h&r block * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free taxes h&r block ** File Form 4506 to get a transcript of the decedent's account. Free taxes h&r block Table 1. Free taxes h&r block Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free taxes h&r block * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free taxes h&r block ** File Form 4506 to get a transcript of the decedent's account. Free taxes h&r block Lines 2 and 6. Free taxes h&r block   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Free taxes h&r block   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Free taxes h&r block Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Free taxes h&r block Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free taxes h&r block   Allocate business deductions to the owner of the business. Free taxes h&r block Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free taxes h&r block Lines 3 and 7. Free taxes h&r block   Figure the total tax as if a separate return had been filed. Free taxes h&r block The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Free taxes h&r block When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Free taxes h&r block   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Free taxes h&r block If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Free taxes h&r block Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Free taxes h&r block Line 4. Free taxes h&r block   Enter the total, if any, of the following taxes. Free taxes h&r block Self-employment tax. Free taxes h&r block Social security and Medicare tax on tip income not reported to employer. Free taxes h&r block Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free taxes h&r block Tax on excess accumulation in qualified retirement plans. Free taxes h&r block Household employment taxes. Free taxes h&r block Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free taxes h&r block Tax on golden parachute payments. Free taxes h&r block Minimum Amount of Relief The minimum amount of relief is $10,000. Free taxes h&r block If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Free taxes h&r block The IRS will refund the difference as explained under Refund of Taxes Paid. Free taxes h&r block Use Worksheet C to figure the additional tax payment. Free taxes h&r block But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Free taxes h&r block Example 1. Free taxes h&r block An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Free taxes h&r block The $6,400 is eligible for forgiveness. Free taxes h&r block The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Free taxes h&r block Example 2. Free taxes h&r block A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Free taxes h&r block The IRS will treat $10,000 as a tax payment for 2001. Free taxes h&r block Income received after date of death. Free taxes h&r block   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Free taxes h&r block Examples are the final paycheck or dividends on stock owned by the decedent. Free taxes h&r block However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Free taxes h&r block Nonqualifying income. Free taxes h&r block   The following income is not exempt from tax. Free taxes h&r block The tax on it is not eligible for forgiveness. Free taxes h&r block Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Free taxes h&r block Amounts that would not have been payable but for an action taken after September 11, 2001. Free taxes h&r block The following are examples of nonqualifying income. Free taxes h&r block Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Free taxes h&r block Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Free taxes h&r block Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Free taxes h&r block Interest on savings bonds cashed by the beneficiary of the decedent. Free taxes h&r block If you are responsible for the estate of a decedent, see Publication 559. Free taxes h&r block Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Free taxes h&r block Instructions for lines 2–9 of Worksheet C. Free taxes h&r block   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Free taxes h&r block To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Free taxes h&r block Or, if special requirements are met, you can use the alternative computation instead. Free taxes h&r block See Alternative computation, later. Free taxes h&r block   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Free taxes h&r block Use Form 1041 to figure what the taxable income would be without including the exempt income. Free taxes h&r block Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Free taxes h&r block Alternative computation. Free taxes h&r block   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Free taxes h&r block You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Free taxes h&r block The estate claimed an income distribution deduction on line 18 (Form 1041). Free taxes h&r block Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Free taxes h&r block If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Free taxes h&r block If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Free taxes h&r block Complete the rest of Worksheet C to determine the additional payment allowed. Free taxes h&r block Worksheet C. Free taxes h&r block Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free taxes h&r block Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free taxes h&r block 1 Minimum relief amount. Free taxes h&r block Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free taxes h&r block 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free taxes h&r block 3       4 Add lines 2 and 3. Free taxes h&r block 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free taxes h&r block (See Income received after date of death on page 5. Free taxes h&r block ) 5       6 Add lines 4 and 5. Free taxes h&r block 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free taxes h&r block 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free taxes h&r block 8       9 Tax on exempt income. Free taxes h&r block Subtract line 8 from line 7. Free taxes h&r block 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free taxes h&r block If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free taxes h&r block 10       11 Add lines 9 and 10. Free taxes h&r block 11   12 Additional payment allowed. Free taxes h&r block If line 11 is $10,000 or more, enter -0- and stop here. Free taxes h&r block No additional amount is allowed as a tax payment. Free taxes h&r block Otherwise, subtract line 11 from line 1 and enter the result. Free taxes h&r block 12   Note. Free taxes h&r block The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free taxes h&r block Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free taxes h&r block If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free taxes h&r block Write "Sec. Free taxes h&r block 692(d)(2) Payment" and the amount to the right of the entry space. Free taxes h&r block Also indicate whether a Form 1041 is being filed for the decedent's estate. Free taxes h&r block If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free taxes h&r block Write “Sec. Free taxes h&r block 692(d)(2) Payment” on the dotted line to the left of the entry space. Free taxes h&r block Worksheet C. Free taxes h&r block Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free taxes h&r block Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free taxes h&r block 1 Minimum relief amount. Free taxes h&r block Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free taxes h&r block 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free taxes h&r block 3       4 Add lines 2 and 3. Free taxes h&r block 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free taxes h&r block (See Income received after date of death on page 5. Free taxes h&r block ) 5       6 Add lines 4 and 5. Free taxes h&r block 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free taxes h&r block 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free taxes h&r block 8       9 Tax on exempt income. Free taxes h&r block Subtract line 8 from line 7. Free taxes h&r block 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free taxes h&r block If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free taxes h&r block 10       11 Add lines 9 and 10. Free taxes h&r block 11   12 Additional payment allowed. Free taxes h&r block If line 11 is $10,000 or more, enter -0- and stop here. Free taxes h&r block No additional amount is allowed as a tax payment. Free taxes h&r block Otherwise, subtract line 11 from line 1 and enter the result. Free taxes h&r block 12   Note. Free taxes h&r block The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free taxes h&r block Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free taxes h&r block If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free taxes h&r block Write "Sec. Free taxes h&r block 692(d)(2) Payment" and the amount to the right of the entry space. Free taxes h&r block Also indicate whether a Form 1041 is being filed for the decedent's estate. Free taxes h&r block If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free taxes h&r block Write “Sec. Free taxes h&r block 692(d)(2) Payment” on the dotted line to the left of the entry space. Free taxes h&r block Worksheet D. Free taxes h&r block Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free taxes h&r block (See Income received after date of death on page 5. Free taxes h&r block ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free taxes h&r block 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free taxes h&r block 5   6 Estate's tax on exempt income. Free taxes h&r block Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free taxes h&r block Figure the total tax that would have been payable by all beneficiaries. Free taxes h&r block Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free taxes h&r block Add the amounts by which each beneficiary's income tax is increased. Free taxes h&r block 7   8 Add lines 6 and 7. Free taxes h&r block Enter this amount on line 9 of Worksheet C. Free taxes h&r block 8   Worksheet D. Free taxes h&r block Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free taxes h&r block (See Income received after date of death on page 5. Free taxes h&r block ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free taxes h&r block 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free taxes h&r block 5   6 Estate's tax on exempt income. Free taxes h&r block Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free taxes h&r block Figure the total tax that would have been payable by all beneficiaries. Free taxes h&r block Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free taxes h&r block Add the amounts by which each beneficiary's income tax is increased. Free taxes h&r block 7   8 Add lines 6 and 7. Free taxes h&r block Enter this amount on line 9 of Worksheet C. Free taxes h&r block 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Free taxes h&r block Income tax liabilities that have been paid. Free taxes h&r block Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Free taxes h&r block See Minimum Amount of Relief, earlier. Free taxes h&r block Example 1. Free taxes h&r block A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Free taxes h&r block The total, $14,000, is eligible for tax forgiveness. Free taxes h&r block However, he paid only $13,000 of that amount. Free taxes h&r block The IRS will refund the $13,000 paid. Free taxes h&r block Example 2. Free taxes h&r block A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Free taxes h&r block The child qualifies for the minimum relief of $10,000. Free taxes h&r block The $10,000 is treated as a tax payment for 2001 and will be refunded. Free taxes h&r block Period for filing a claim for credit or refund. Free taxes h&r block   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Free taxes h&r block For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Free taxes h&r block To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Free taxes h&r block Extension of time for victims of Oklahoma City attack. Free taxes h&r block   The period described above has been extended for victims of the Oklahoma City attack. Free taxes h&r block Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Free taxes h&r block How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Free taxes h&r block Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Free taxes h&r block Return required but not yet filed. Free taxes h&r block   File Form 1040 if the decedent was a U. Free taxes h&r block S. Free taxes h&r block citizen or resident. Free taxes h&r block File Form 1040NR if the decedent was a nonresident alien. Free taxes h&r block A nonresident alien is someone who is not a U. Free taxes h&r block S. Free taxes h&r block citizen or resident. Free taxes h&r block Return required and already filed. Free taxes h&r block   File a separate Form 1040X for each year you are claiming tax relief. Free taxes h&r block Return not required and not filed. Free taxes h&r block   File Form 1040 only for the year of death if the decedent was a U. Free taxes h&r block S. Free taxes h&r block citizen or resident. Free taxes h&r block File Form 1040NR if the decedent was a nonresident alien. Free taxes h&r block Return not required but already filed. Free taxes h&r block   File Form 1040X only for the year of death. Free taxes h&r block How to complete the returns. Free taxes h&r block   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Free taxes h&r block Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Free taxes h&r block If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Free taxes h&r block If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Free taxes h&r block Also, please write one of the following across the top of page 1 of each return. Free taxes h&r block KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Free taxes h&r block ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Free taxes h&r block If you need a copy, use Form 4506. Free taxes h&r block The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Free taxes h&r block Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Free taxes h&r block Send Form 4506 to the address shown in the form instructions. Free taxes h&r block Taxpayer identification number. Free taxes h&r block   A taxpayer identification number must be furnished on the decedent's returns. Free taxes h&r block This is usually the decedent's social security number (SSN). Free taxes h&r block However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Free taxes h&r block If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Free taxes h&r block S. Free taxes h&r block income tax return for any tax year, do not apply for an ITIN. Free taxes h&r block You may claim a refund by filing Form 1040NR without an SSN or ITIN. Free taxes h&r block Necessary Documents Please attach the following documents to the return or amended return. Free taxes h&r block Proof of death. Free taxes h&r block   Attach a copy of the death certificate. Free taxes h&r block If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Free taxes h&r block Form 1310. Free taxes h&r block   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Free taxes h&r block You are a surviving spouse filing an original or amended joint return with the decedent. Free taxes h&r block You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Free taxes h&r block A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Free taxes h&r block A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Free taxes h&r block      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Free taxes h&r block Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Free taxes h&r block Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Free taxes h&r block Use one of the addresses shown below. Free taxes h&r block Where you file the returns or claims depends on whether you use the U. Free taxes h&r block S. Free taxes h&r block Postal Service or a private delivery service. Free taxes h&r block Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Free taxes h&r block U. Free taxes h&r block S. Free taxes h&r block Postal Service. Free taxes h&r block   If you use the U. Free taxes h&r block S. Free taxes h&r block Postal Service, file these returns and claims at the following address. Free taxes h&r block Internal Revenue Service P. Free taxes h&r block O. Free taxes h&r block Box 4053 Woburn, MA 01888 Private delivery service. Free taxes h&r block   Private delivery services cannot deliver items to P. Free taxes h&r block O. Free taxes h&r block boxes. Free taxes h&r block If you use a private delivery service, file these returns and claims at the following address. Free taxes h&r block Internal Revenue Service Stop 661 310 Lowell St. Free taxes h&r block Andover, MA 01810 Designated private delivery services. Free taxes h&r block   You can use the following private delivery services to file these returns and claims. Free taxes h&r block Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Free taxes h&r block DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Free taxes h&r block Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Free taxes h&r block United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Free taxes h&r block M. Free taxes h&r block , UPS Worldwide Express Plus, and UPS Worldwide Express. Free taxes h&r block The private delivery service can tell you how to get written proof of the mailing date. Free taxes h&r block Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Free taxes h&r block September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Free taxes h&r block Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Free taxes h&r block These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Free taxes h&r block No withholding applies to these payments. Free taxes h&r block Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Free taxes h&r block Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Free taxes h&r block Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Free taxes h&r block (A personal residence can be a rented residence or one you own. Free taxes h&r block ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Free taxes h&r block Qualified disaster relief payments also include the following. Free taxes h&r block Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Free taxes h&r block Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Free taxes h&r block Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Free taxes h&r block Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Free taxes h&r block Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Free taxes h&r block Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Free taxes h&r block However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Free taxes h&r block If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Free taxes h&r block For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Free taxes h&r block If that period has expired, you are granted an extension. Free taxes h&r block You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Free taxes h&r block On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Free taxes h&r block 102(b)(2). Free taxes h&r block ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Free taxes h&r block The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Free taxes h&r block Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Free taxes h&r block Bureau of Justice Assistance payments. Free taxes h&r block   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Free taxes h&r block Government plan annuity. Free taxes h&r block   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Free taxes h&r block This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Free taxes h&r block For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Free taxes h&r block More information. Free taxes h&r block   For more information, see Publication 559. Free taxes h&r block Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Free taxes h&r block The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free taxes h&r block If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free taxes h&r block Affected taxpayers. Free taxes h&r block   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free taxes h&r block Any individual whose main home is located in a covered area (defined later). Free taxes h&r block Any business entity or sole proprietor whose principal place of business is located in a covered area. Free taxes h&r block Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Free taxes h&r block The main home or principal place of business does not have to be located in the covered area. Free taxes h&r block Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Free taxes h&r block Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Free taxes h&r block The spouse on a joint return with a taxpayer who is eligible for postponements. Free taxes h&r block Any other person determined by the IRS to be affected by a terrorist attack. Free taxes h&r block Covered area. Free taxes h&r block   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Free taxes h&r block Abatement of interest. Free taxes h&r block   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Free taxes h&r block Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Free taxes h&r block You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Free taxes h&r block The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Free taxes h&r block The due date (with extensions) for the 2000 return. Free taxes h&r block For more information about disaster area losses, see Publication 547. Free taxes h&r block Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Free taxes h&r block The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Free taxes h&r block The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Free taxes h&r block These credits may reduce or eliminate the estate tax due. Free taxes h&r block A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Free taxes h&r block Recovery from the September 11th Victim Compensation Fund. Free taxes h&r block   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Free taxes h&r block However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Free taxes h&r block Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Free taxes h&r block Which estates must file a return. Free taxes h&r block   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Free taxes h&r block S. Free taxes h&r block citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Free taxes h&r block Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Free taxes h&r block Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Free taxes h&r block S. Free taxes h&r block Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Free taxes h&r block Where to file. Free taxes h&r block   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Free taxes h&r block Internal Revenue Service E & G Department/Stop 824T 201 W. Free taxes h&r block Rivercenter Blvd. Free taxes h&r block Covington, KY 41011 More information. Free taxes h&r block   For more information on the federal estate tax, see the instructions for Form 706. Free taxes h&r block Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Free taxes h&r block The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Free taxes h&r block However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Free taxes h&r block For information about these requirements, see Internal Revenue Code section 5891. Free taxes h&r block Worksheet B Illustrated. Free taxes h&r block Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free taxes h&r block 1 2000 2001   2 Enter the decedent's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 2 $17,259 $14,295   3 Enter the decedent's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free taxes h&r block See the instructions. Free taxes h&r block 4 3,532 3,109   5 Subtract line 4 from line 3. Free taxes h&r block 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions for line 2. Free taxes h&r block 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free taxes h&r block 8 0 0   9 Subtract line 8 from line 7. Free taxes h&r block 9 5,277 5,391   10 Add lines 5 and 9. Free taxes h&r block 10 7,868 7,532   11 Enter the total tax from the joint return. Free taxes h&r block See Table 1 on page 5 for the line number for years before 2002. Free taxes h&r block 11 10,789 9,728   12 Add lines 4 and 8. Free taxes h&r block 12 3,532 3,109   13 Subtract line 12 from line 11. Free taxes h&r block 13 7,257 6,619   14 Divide line 5 by line 10. Free taxes h&r block Enter the result as a decimal. Free taxes h&r block 14 . Free taxes h&r block 329 . Free taxes h&r block 284   15 Tax to be forgiven. Free taxes h&r block Multiply line 13 by line 14 and enter the result. Free taxes h&r block 15 $2,388 $1,880   Note. Free taxes h&r block If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free taxes h&r block Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free taxes h&r block If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free taxes h&r block The IRS will determine the amount to be refunded. Free taxes h&r block Worksheet B Illustrated. Free taxes h&r block Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free taxes h&r block 1 2000 2001   2 Enter the decedent's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 2 $17,259 $14,295   3 Enter the decedent's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free taxes h&r block See the instructions. Free taxes h&r block 4 3,532 3,109   5 Subtract line 4 from line 3. Free taxes h&r block 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions for line 2. Free taxes h&r block 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free taxes h&r block 8 0 0   9 Subtract line 8 from line 7. Free taxes h&r block 9 5,277 5,391   10 Add lines 5 and 9. Free taxes h&r block 10 7,868 7,532   11 Enter the total tax from the joint return. Free taxes h&r block See Table 1 on page 5 for the line number for years before 2002. Free taxes h&r block 11 10,789 9,728   12 Add lines 4 and 8. Free taxes h&r block 12 3,532 3,109   13 Subtract line 12 from line 11. Free taxes h&r block 13 7,257 6,619   14 Divide line 5 by line 10. Free taxes h&r block Enter the result as a decimal. Free taxes h&r block 14 . Free taxes h&r block 329 . Free taxes h&r block 284   15 Tax to be forgiven. Free taxes h&r block Multiply line 13 by line 14 and enter the result. Free taxes h&r block 15 $2,388 $1,880   Note. Free taxes h&r block If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free taxes h&r block Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free taxes h&r block If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free taxes h&r block The IRS will determine the amount to be refunded. Free taxes h&r block Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Free taxes h&r block They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Free taxes h&r block The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Free taxes h&r block After the husband died, his estate received income of $4,000. Free taxes h&r block Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Free taxes h&r block This net profit is exempt from income tax as explained earlier under Income received after date of death. Free taxes h&r block The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Free taxes h&r block To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Free taxes h&r block She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Free taxes h&r block To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Free taxes h&r block To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Free taxes h&r block   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Free taxes h&r block Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free taxes h&r block Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free taxes h&r block 1 Minimum relief amount. Free taxes h&r block Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free taxes h&r block 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free taxes h&r block 3 0     4 Add lines 2 and 3. Free taxes h&r block 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free taxes h&r block (See Income received after date of death on page 5. Free taxes h&r block ) 5 1,000     6 Add lines 4 and 5. Free taxes h&r block 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free taxes h&r block 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free taxes h&r block 8 435     9 Tax on exempt income. Free taxes h&r block Subtract line 8 from line 7. Free taxes h&r block 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free taxes h&r block If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free taxes h&r block 10 4,268     11 Add lines 9 and 10. Free taxes h&r block 11 $4,543 12 Additional payment allowed. Free taxes h&r block If line 11 is $10,000 or more, enter -0- and stop here. Free taxes h&r block No additional amount is allowed as a tax payment. Free taxes h&r block Otherwise, subtract line 11 from line 1 and enter the result. Free taxes h&r block 12 $5,457 Note. Free taxes h&r block The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free taxes h&r block Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free taxes h&r block If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free taxes h&r block Write "Sec. Free taxes h&r block 692(d)(2) Payment" and the amount to the right of the entry space. Free taxes h&r block Also indicate whether a Form 1041 is being filed for the decedent's estate. Free taxes h&r block If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free taxes h&r block Write “Sec. Free taxes h&r block 692(d)(2) Payment” on the dotted line to the left of the entry space. Free taxes h&r block Worksheet C Illustrated. Free taxes h&r block Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free taxes h&r block Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free taxes h&r block 1 Minimum relief amount. Free taxes h&r block Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free taxes h&r block 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free taxes h&r block 3 0     4 Add lines 2 and 3. Free taxes h&r block 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free taxes h&r block (See Income received after date of death on page 5. Free taxes h&r block ) 5 1,000     6 Add lines 4 and 5. Free taxes h&r block 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free taxes h&r block 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free taxes h&r block 8 435     9 Tax on exempt income. Free taxes h&r block Subtract line 8 from line 7. Free taxes h&r block 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free taxes h&r block If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free taxes h&r block 10 4,268     11 Add lines 9 and 10. Free taxes h&r block 11 $4,543 12 Additional payment allowed. Free taxes h&r block If line 11 is $10,000 or more, enter -0- and stop here. Free taxes h&r block No additional amount is allowed as a tax payment. Free taxes h&r block Otherwise, subtract line 11 from line 1 and enter the result. Free taxes h&r block 12 $5,457 Note. Free taxes h&r block The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free taxes h&r block Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free taxes h&r block If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free taxes h&r block Write "Sec. Free taxes h&r block 692(d)(2) Payment" and the amount to the right of the entry space. Free taxes h&r block Also indicate whether a Form 1041 is being filed for the decedent's estate. Free taxes h&r block If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free taxes h&r block Write “Sec. Free taxes h&r block 692(d)(2) Payment” on the dotted line to the left of the entry space. Free taxes h&r block Additional Worksheets The following additional worksheets are provided for your convenience. Free taxes h&r block Worksheet A. Free taxes h&r block Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free taxes h&r block 1       2 Enter the total tax from the decedent's income tax return. Free taxes h&r block See Table 1 on page 5 for the line number for years before 2002. Free taxes h&r block 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free taxes h&r block (These taxes are not eligible for forgiveness. Free taxes h&r block )           a Self-employment tax. Free taxes h&r block 3a         b Social security and Medicare tax on tip income not reported to employer. Free taxes h&r block 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free taxes h&r block 3c         d Tax on excess accumulation in qualified retirement plans. Free taxes h&r block 3d         e Household employment taxes. Free taxes h&r block 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free taxes h&r block 3f         g Tax on golden parachute payments. Free taxes h&r block 3g       4 Add lines 3a through 3g. Free taxes h&r block 4       5 Tax to be forgiven. Free taxes h&r block Subtract line 4 from line 2. Free taxes h&r block 5       Note. Free taxes h&r block If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free taxes h&r block Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free taxes h&r block If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free taxes h&r block The IRS will determine the amount to be refunded. Free taxes h&r block Worksheet A. Free taxes h&r block Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free taxes h&r block 1       2 Enter the total tax from the decedent's income tax return. Free taxes h&r block See Table 1 on page 5 for the line number for years before 2002. Free taxes h&r block 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free taxes h&r block (These taxes are not eligible for forgiveness. Free taxes h&r block )           a Self-employment tax. Free taxes h&r block 3a         b Social security and Medicare tax on tip income not reported to employer. Free taxes h&r block 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free taxes h&r block 3c         d Tax on excess accumulation in qualified retirement plans. Free taxes h&r block 3d         e Household employment taxes. Free taxes h&r block 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free taxes h&r block 3f         g Tax on golden parachute payments. Free taxes h&r block 3g       4 Add lines 3a through 3g. Free taxes h&r block 4       5 Tax to be forgiven. Free taxes h&r block Subtract line 4 from line 2. Free taxes h&r block 5       Note. Free taxes h&r block If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free taxes h&r block Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free taxes h&r block If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free taxes h&r block The IRS will determine the amount to be refunded. Free taxes h&r block Worksheet B. Free taxes h&r block Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free taxes h&r block 1       2 Enter the decedent's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 2       3 Enter the decedent's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free taxes h&r block See the instructions. Free taxes h&r block 4       5 Subtract line 4 from line 3. Free taxes h&r block 5       6 Enter the surviving spouse's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 6       7 Enter the surviving spouse's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free taxes h&r block 8       9 Subtract line 8 from line 7. Free taxes h&r block 9       10 Add lines 5 and 9. Free taxes h&r block 10       11 Enter the total tax from the joint return. Free taxes h&r block See Table 1 on page 5 for the line number for years before 2002. Free taxes h&r block 11       12 Add lines 4 and 8. Free taxes h&r block 12       13 Subtract line 12 from line 11. Free taxes h&r block 13       14 Divide line 5 by line 10. Free taxes h&r block Enter the result as a decimal. Free taxes h&r block 14       15 Tax to be forgiven. Free taxes h&r block Multiply line 13 by line 14 and enter the result. Free taxes h&r block 15       Note. Free taxes h&r block If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free taxes h&r block Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free taxes h&r block If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free taxes h&r block The IRS will determine the amount to be refunded. Free taxes h&r block Worksheet B. Free taxes h&r block Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free taxes h&r block 1       2 Enter the decedent's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 2       3 Enter the decedent's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free taxes h&r block See the instructions. Free taxes h&r block 4       5 Subtract line 4 from line 3. Free taxes h&r block 5       6 Enter the surviving spouse's taxable income. Free taxes h&r block Figure taxable income as if a separate return had been filed. Free taxes h&r block See the instructions. Free taxes h&r block 6       7 Enter the surviving spouse's total tax. Free taxes h&r block See the instructions. Free taxes h&r block 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free taxes h&r block 8       9 Subtract line 8 from line 7. Free taxes h&r block 9       10 Add lines 5 and 9. Free taxes h&r block 10       11 Enter the total tax from the joint return. Free taxes h&r block See Table 1 on page 5 for the line number for years before 2002. Free taxes h&r block 11       12 Add lines 4 and 8. Free taxes h&r block 12       13 Subtract line 12 from line 11. Free taxes h&r block 13       14 Divide line 5 by line 10. Free taxes h&r block Enter the result as a decimal. Free taxes h&r block 14       15 Tax to be forgiven. Free taxes h&r block Multiply line 13 by line 14 and enter the result. Free taxes h&r block 15       Note. Free taxes h&r block If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free taxes h&r block Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free taxes h&r block If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free taxes h&r block The IRS will determine the amount to be refunded. Free taxes h&r block Worksheet C. Free taxes h&r block Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free taxes h&r block Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free taxes h&r block 1 Minimum tax forgiveness. Free taxes h&r block Note. Free taxes h&r block Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free taxes h&r block 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free taxes h&r block 3       4 Add lines 2 and 3. Free taxes h&r block 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free taxes h&r block (See Income received after date of death on page 5. Free taxes h&r block ) 5       6 Add lines 4 and 5. Free taxes h&r block 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free taxes h&r block 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free taxes h&r block 8       9 Tax on exempt income. Free taxes h&r block Subtract line 8 from line 7. Free taxes h&r block 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free taxes h&r block If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free taxes h&r block 10       11 Add lines 9 and 10. Free taxes h&r block 11   12 Additional payment allowed. Free taxes h&r block If line 11 is $10,000 or more, enter -0- and stop here. Free taxes h&r block No additional amount is allowed as a tax payment. Free taxes h&r block Otherwise, subtract line 11 from line 1 and enter the result. Free taxes h&r block 12   Note. Free taxes h&r block The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free taxes h&r block Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free taxes h&r block If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free taxes h&r block Write "Sec. Free taxes h&r block 692(d)(2) Payment" and the amount to the right of the entry space. Free taxes h&r block Also indicate whether a Form 1041 is being filed for the decedent's estate. Free taxes h&r block If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free taxes h&r block Write “Sec. Free taxes h&r block 692(d)(2) Payment” on the dotted line to the left of the entry space. Free taxes h&r block Worksheet C. Free taxes h&r block Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free taxes h&r block Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free taxes h&r block 1 Minimum tax forgiveness. Free taxes h&r block Note. Free taxes h&r block Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free taxes h&r block 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free taxes h&r block 3       4 Add lines 2 and 3. Free taxes h&r block 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free taxes h&r block (See Income received after date of death on page 5. Free taxes h&r block ) 5       6 Add lines 4 and 5. Free taxes h&r block 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free taxes h&r block 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free taxes h&r block 8       9 Tax on exempt income. Free taxes h&r block Subtract line 8 from line 7. Free taxes h&r block 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free taxes h&r block If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free taxes h&r block 10       11 Add lines 9 and 10. Free taxes h&r block 11   12 Additional payment allowed. Free taxes h&r block If line 11 is $10,000 or more, enter -0- and stop here. Free taxes h&r block No additional amount is allowed as a tax payment. Free taxes h&r block Otherwise, subtract line 11 from line 1 and enter the result. Free taxes h&r block 12   Note. Free taxes h&r block The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free taxes h&r block Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free taxes h&r block If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free taxes h&r block Write "Sec. Free taxes h&r block 692(d)(2) Payment" and the amount to the right of the entry space. Free taxes h&r block Also indicate whether a Form 1041 is being filed for the decedent's estate. Free taxes h&r block If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free taxes h&r block Write “Sec. Free taxes h&r block 692(d)(2) Payment” on the dotted line to the left of the entry space. Free taxes h&r block How To Get Tax Help Special IRS assistance. Free taxes h&r block   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Free taxes h&r block We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. Free taxes h&r block Call 1–866–562–5227 Monday through Friday In English–7 a. Free taxes h&r block m. Free taxes h&r block to 10 p. Free taxes h&r block m. Free taxes h&r block local time In Spanish–8 a. Free taxes h&r block m. Free taxes h&r block to 9:30 p. Free taxes h&r block m. Free taxes h&r block local time   The IRS web site at www. Free taxes h&r block irs. Free taxes h&r block gov has notices and other tax relief information. Free taxes h&r block Check it periodically for any new guidance or to see if Congress has enacted new legislation. Free taxes h&r block   Business taxpayers affected by the attacks can e-mail their questions to corp. Free taxes h&r block disaster. Free taxes h&r block relief@irs. Free taxes h&r block gov. Free taxes h&r block   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Free taxes h&r block fema. Free taxes h&r block gov. Free taxes h&r block Other help from the IRS. Free taxes h&r block   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Free taxes h&r block By selecting the method that is best for you, you will have quick and easy access to tax help. Free taxes h&r block Contacting your Taxpayer Advocate. Free taxes h&r block   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Free taxes h&r block   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Free taxes h&r block While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Free taxes h&r block   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Free taxes h&r block Call the IRS at 1–800–829–1040. Free taxes h&r block Call, write, or fax the Taxpayer Advocate office in your area. Free taxes h&r block Call 1–800–829–4059 if you are a TTY/TDD user. Free taxes h&r block   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Free taxes h&r block Free tax services. Free taxes h&r block   To find out what services are available, get Publication 910, Guide to Free Tax Services. Free taxes h&r block It contains a list of free tax publications and an index of tax topics. Free taxes h&r block It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Free taxes h&r block Personal computer. Free taxes h&r block With your personal computer and modem, you can access the IRS on the Internet at www. Free taxes h&r block irs. Free taxes h&r block gov. Free taxes h&r block While visiting our web site, you can: Find answers to questions you may have. Free taxes h&r block Download forms and publications or search for forms and pub