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How Do I Get 2012 Tax Forms

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How Do I Get 2012 Tax Forms

How do i get 2012 tax forms Publication 929 - Main Content Table of Contents Part 1. How do i get 2012 tax forms Rules for All Dependents Filing RequirementsEarned Income Only Unearned Income Only Both Earned and Unearned Income Other Filing Requirements Should a Return Be Filed Even If Not Required? Responsibility for Child's ReturnThird party designee. How do i get 2012 tax forms Designated as representative. How do i get 2012 tax forms IRS notice. How do i get 2012 tax forms Standard DeductionStandard Deduction of Zero Dependent's Own Exemption Withholding From WagesExceptions. How do i get 2012 tax forms Part 2. How do i get 2012 tax forms Tax on Unearned Income of Certain ChildrenWhich Parent's Return To Use Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, Lines A–C) Step 1. How do i get 2012 tax forms Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. How do i get 2012 tax forms Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. How do i get 2012 tax forms Figuring the Child's Tax (Form 8615, Part III) Alternative Minimum Tax Illustrated Example Part 1. How do i get 2012 tax forms Rules for All Dependents This part of the publication discusses the filing requirements for dependents, who is responsible for a child's return, how to figure a dependent's standard deduction and exemption (if any), and whether a dependent can claim exemption from federal income tax withholding. How do i get 2012 tax forms Filing Requirements Whether a dependent has to file a return generally depends on the amount of the dependent's earned and unearned income and whether the dependent is married, is age 65 or older, or is blind. How do i get 2012 tax forms A dependent may have to file a return even if his or her income is less than the amount that would normally require a return. How do i get 2012 tax forms See Other Filing Requirements, later. How do i get 2012 tax forms The following sections apply to dependents with: Earned income only, Unearned income only, and Both earned and unearned income. How do i get 2012 tax forms  To find out whether a dependent must file, read the section that applies, or use Table 1. How do i get 2012 tax forms Earned Income Only A dependent whose gross income is only earned income must file a return if the gross income is more than the amount listed in the following table. How do i get 2012 tax forms Marital Status Amount Single   Under 65 and not blind $6,100 Either 65 or older or blind $7,600 65 or older and blind $9,100 Married*   Under 65 and not blind $6,100 Either 65 or older or blind $7,300 65 or older and blind $8,500 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). How do i get 2012 tax forms Example. How do i get 2012 tax forms William is 16. How do i get 2012 tax forms His mother claims an exemption for him on her income tax return. How do i get 2012 tax forms He worked part time on weekends during the school year and full time during the summer. How do i get 2012 tax forms He earned $7,000 in wages. How do i get 2012 tax forms He did not have any unearned income. How do i get 2012 tax forms He must file a tax return because he has earned income only and his gross income is more than $6,100. How do i get 2012 tax forms If he is blind, he does not have to file a return because his gross income is not more than $7,600. How do i get 2012 tax forms Unearned Income Only A dependent whose gross income is only unearned income must file a return if the gross income is more than the amount listed in the following table. How do i get 2012 tax forms Marital Status Amount Single   Under 65 and not blind $1,000 Either 65 or older or blind $2,500 65 or older and blind $4,000 Married*   Under 65 and not blind $1,000 Either 65 or older or blind $2,200 65 or older and blind $3,400 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). How do i get 2012 tax forms Example. How do i get 2012 tax forms Sarah is 18 and single. How do i get 2012 tax forms Her parents can claim an exemption for her on their income tax return. How do i get 2012 tax forms She received $1,970 of taxable interest and dividend income. How do i get 2012 tax forms She did not work during the year. How do i get 2012 tax forms She must file a tax return because she has unearned income only and her gross income is more than $1,000. How do i get 2012 tax forms If she is blind, she does not have to file a return because she has unearned income only and her gross income is not more than $2,500. How do i get 2012 tax forms Election to report child's unearned income on parent's return. How do i get 2012 tax forms   A parent of a child under age 19 (or under age 24 if a full-time student) may be able to elect to include the child's interest and dividend income on the parent's return. How do i get 2012 tax forms See Parent's Election To Report Child's Interest and Dividends in Part 2. How do i get 2012 tax forms If the parent makes this election, the child does not have to file a return. How do i get 2012 tax forms Both Earned and Unearned Income A dependent who has both earned and unearned income generally must file a return if the dependent's gross income is more than line 5 of the following worksheet. How do i get 2012 tax forms Filing Requirement Worksheet for Most Dependents 1. How do i get 2012 tax forms Enter dependent's earned income plus $350     2. How do i get 2012 tax forms Minimum amount   $1,000 3. How do i get 2012 tax forms Compare lines 1 and 2. How do i get 2012 tax forms Enter the larger amount     4. How do i get 2012 tax forms Maximum amount   6,100 5. How do i get 2012 tax forms Compare lines 3 and 4. How do i get 2012 tax forms Enter the smaller amount     6. How do i get 2012 tax forms Enter the dependent's gross income. How do i get 2012 tax forms If line 6 is more than line 5, the dependent must file an income tax return. How do i get 2012 tax forms If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. How do i get 2012 tax forms       Table 1. How do i get 2012 tax forms 2013 Filing Requirements for Dependents If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. How do i get 2012 tax forms   See the definitions of “dependent,”“earned income,”“unearned income,” and “gross income” in the Glossary. How do i get 2012 tax forms   Single dependents—Were you either age 65 or older or blind?     No. How do i get 2012 tax forms You must file a return if any of the following apply. How do i get 2012 tax forms       Your unearned income was over $1,000. How do i get 2012 tax forms Your earned income was over $6,100. How do i get 2012 tax forms Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. How do i get 2012 tax forms         Yes. How do i get 2012 tax forms You must file a return if any of the following apply. How do i get 2012 tax forms     Your unearned income was over $2,500 ($4,000 if 65 or older and blind), Your earned income was over $7,600 ($9,100 if 65 or older and blind), Your gross income was more than the larger of—       $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). How do i get 2012 tax forms       Married dependents—Were you either age 65 or older or blind?     No. How do i get 2012 tax forms You must file a return if any of the following apply. How do i get 2012 tax forms       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. How do i get 2012 tax forms Your unearned income was over $1,000. How do i get 2012 tax forms Your earned income was over $6,100. How do i get 2012 tax forms Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. How do i get 2012 tax forms       Yes. How do i get 2012 tax forms You must file a return if any of the following apply. How do i get 2012 tax forms       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. How do i get 2012 tax forms Your unearned income was over $2,200 ($3,400 if 65 or older and blind), Your earned income was over $7,300 ($8,500 if 65 or older and blind), Your gross income was more than the larger of—       $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). How do i get 2012 tax forms       Example 1. How do i get 2012 tax forms Joe is 20, single, not blind, and a full-time college student. How do i get 2012 tax forms He does not provide more than half of his own support, and his parents claim an exemption for him on their income tax return. How do i get 2012 tax forms He received $200 taxable interest income and earned $2,750 from a part-time job. How do i get 2012 tax forms He does not have to file a tax return because his gross income of $2,950 ($200 interest plus $2,750 in wages) is not more than $3,100, the amount on line 5 of his filled-in Filing Requirement Worksheet for Most Dependents (shown next). How do i get 2012 tax forms Filled-in Example 1 Filing Requirement Worksheet  for Most Dependents 1. How do i get 2012 tax forms Enter dependent's earned income plus $350   $ 3,100 2. How do i get 2012 tax forms Minimum amount   1,000 3. How do i get 2012 tax forms Compare lines 1 and 2. How do i get 2012 tax forms Enter the larger amount   3,100 4. How do i get 2012 tax forms Maximum amount   6,100 5. How do i get 2012 tax forms Compare lines 3 and 4. How do i get 2012 tax forms Enter the smaller amount   3,100 6. How do i get 2012 tax forms Enter the dependent's gross income. How do i get 2012 tax forms If line 6 is more than line 5, the dependent must file an income tax return. How do i get 2012 tax forms If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. How do i get 2012 tax forms   $ 2,950   Example 2. How do i get 2012 tax forms The facts are the same as in Example 1 except that Joe had $600 taxable interest income. How do i get 2012 tax forms He must file a tax return because his gross income of $3,350 ($600 interest plus $2,750 wages) is more than $3,100, the amount on line 5 of his filled-in worksheet (shown next). How do i get 2012 tax forms Filled-in Example 2 Filing Requirement Worksheet for Most Dependents 1. How do i get 2012 tax forms Enter dependent's earned income plus $350   $ 3,100 2. How do i get 2012 tax forms Minimum amount   1,000 3. How do i get 2012 tax forms Compare lines 1 and 2. How do i get 2012 tax forms Enter the larger amount   3,100 4. How do i get 2012 tax forms Maximum amount   6,100 5. How do i get 2012 tax forms Compare lines 3 and 4. How do i get 2012 tax forms Enter the smaller amount   3,100 6. How do i get 2012 tax forms Enter the dependent's gross income. How do i get 2012 tax forms If line 6 is more than line 5, the dependent must file an income tax return. How do i get 2012 tax forms If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. How do i get 2012 tax forms   $ 3,350   Age 65 or older or blind. How do i get 2012 tax forms A dependent who is age 65 or older or blind must file a return if his or her gross income is more than line 7 of the following worksheet. How do i get 2012 tax forms Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. How do i get 2012 tax forms Enter dependent's earned income plus $350     2. How do i get 2012 tax forms Minimum amount   $1,000 3. How do i get 2012 tax forms Compare lines 1 and 2. How do i get 2012 tax forms Enter the larger amount     4. How do i get 2012 tax forms Maximum amount   6,100 5. How do i get 2012 tax forms Compare lines 3 and 4. How do i get 2012 tax forms Enter the smaller amount     6. How do i get 2012 tax forms Enter the amount from the following table that applies to the dependent       Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. How do i get 2012 tax forms Add lines 5 and 6. How do i get 2012 tax forms Enter the total     8. How do i get 2012 tax forms Enter the dependent's gross income. How do i get 2012 tax forms If line 8 is more than line 7, the dependent must file an income tax return. How do i get 2012 tax forms If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more     Example 3. How do i get 2012 tax forms The facts are the same as in Example 2 except that Joe is also blind. How do i get 2012 tax forms He does not have to file a return because his gross income of $3,350 is not more than $4,600, the amount on line 7 of his filled-in Filing Requirement Worksheet for Dependents Who Are Age 65 or Older or Blind (shown next). How do i get 2012 tax forms   Filled-in Example 3 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. How do i get 2012 tax forms Enter dependent's earned income plus $350   $3,100 2. How do i get 2012 tax forms Minimum amount   1,000 3. How do i get 2012 tax forms Compare lines 1 and 2. How do i get 2012 tax forms Enter the larger amount   3,100 4. How do i get 2012 tax forms Maximum amount   6,100 5. How do i get 2012 tax forms Compare lines 3 and 4. How do i get 2012 tax forms Enter the smaller amount   3,100 6. How do i get 2012 tax forms Enter the amount from the following table that applies to the dependent   1,500   Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. How do i get 2012 tax forms Add lines 5 and 6. How do i get 2012 tax forms Enter the total   4,600 8. How do i get 2012 tax forms Enter the dependent's gross income. How do i get 2012 tax forms If line 8 is more than line 7, the dependent must file an income tax return. How do i get 2012 tax forms If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more   $3,350 Other Filing Requirements Some dependents may have to file a tax return even if their income is less than the amount that would normally require them to file a return. How do i get 2012 tax forms A dependent must file a tax return if he or she owes any other taxes, such as: Social security and Medicare taxes on tips not reported to his or her employer or on wages received from an employer who did not withhold these taxes, Uncollected social security and Medicare or railroad retirement taxes on tips reported to his or her employer or on group-term life insurance, Alternative minimum tax, Additional tax on a health savings account from Form 8889, Part III, Recapture taxes, such as the tax from recapture of an education credit, or Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. How do i get 2012 tax forms But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by itself. How do i get 2012 tax forms A dependent must also file a tax return if he or she: Had wages of $108. How do i get 2012 tax forms 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes, or Had net earnings from self-employment of at least $400. How do i get 2012 tax forms Spouse itemizes. How do i get 2012 tax forms   A dependent must file a return if the dependent's spouse itemizes deductions on a separate return and the dependent has $5 or more of gross income (earned and/or unearned). How do i get 2012 tax forms Should a Return Be Filed Even If Not Required? Even if a dependent does not meet any of the filing requirements discussed earlier, he or she should file a tax return if either of the following applies. How do i get 2012 tax forms Income tax was withheld from his or her income. How do i get 2012 tax forms He or she qualifies for the earned income credit, additional child tax credit, health coverage tax credit, or refundable American opportunity education credit. How do i get 2012 tax forms See the tax return instructions to find out who qualifies for these credits. How do i get 2012 tax forms  By filing a return, the dependent can get a refund. How do i get 2012 tax forms Responsibility for Child's Return Generally, a child is responsible for filing his or her own tax return and for paying any tax, penalties, or interest on that return. How do i get 2012 tax forms If a child cannot file his or her own return for any reason, such as age, the child's parent, guardian, or other legally responsible person must file it for the child. How do i get 2012 tax forms Signing the child's return. How do i get 2012 tax forms   If the child cannot sign his or her return, a parent or guardian must sign the child's name followed by the words “By (signature), parent (or guardian) for minor child. How do i get 2012 tax forms ” Authority of parent or guardian. How do i get 2012 tax forms   A parent or guardian who signs a return on a child's behalf can deal with the IRS on all matters connected with the return. How do i get 2012 tax forms   In general, a parent or guardian who does not sign the child's return can only provide information concerning the child's return and pay the child's tax. How do i get 2012 tax forms That parent or guardian is not entitled to receive information from the IRS or legally bind the child to a tax liability arising from the return. How do i get 2012 tax forms Third party designee. How do i get 2012 tax forms   A child's parent or guardian who does not sign the child's return may be authorized, as a third party designee, to discuss the processing of the return with the IRS as well as provide information concerning the return. How do i get 2012 tax forms The child or the person signing the return on the child's behalf must check the “Yes” box in the “Third Party Designee” area of the return and name the parent or guardian as the designee. How do i get 2012 tax forms   If designated, a parent or guardian can respond to certain IRS notices and receive information about the processing of the return and the status of a refund or payment. How do i get 2012 tax forms This designation does not authorize the parent or guardian to receive any refund check, bind the child to any tax liability, or otherwise represent the child before the IRS. How do i get 2012 tax forms See the return instructions for more information. How do i get 2012 tax forms Designated as representative. How do i get 2012 tax forms   A parent or guardian who does not sign the child's return may be designated as the child's representative by the child or the person signing the return on the child's behalf. How do i get 2012 tax forms Form 2848, Power of Attorney and Declaration of Representative, is used to designate a child's representative. How do i get 2012 tax forms See Publication 947, Practice Before the IRS and Power of Attorney, for more information. How do i get 2012 tax forms   If designated, a parent or guardian can receive information about the child's return but cannot legally bind the child to a tax liability unless authorized to do so by the law of the state in which the child lives. How do i get 2012 tax forms IRS notice. How do i get 2012 tax forms   If you or the child receives a notice from the IRS concerning the child's return or tax liability, you should immediately inform the IRS that the notice concerns a child. How do i get 2012 tax forms The notice will show who to contact. How do i get 2012 tax forms The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. How do i get 2012 tax forms Child's earnings. How do i get 2012 tax forms   For federal income tax purposes, amounts a child earns by performing services are included in the gross income of the child and not the gross income of the parent. How do i get 2012 tax forms This is true even if, under state law, the parent has the right to the earnings and may actually have received them. How do i get 2012 tax forms If the child does not pay the tax due on this income, the parent may be liable for the tax. How do i get 2012 tax forms Child's expenses. How do i get 2012 tax forms   Deductions for payments that are made out of a child's earnings are the child's, even if the payments are made by the parent. How do i get 2012 tax forms Example. How do i get 2012 tax forms You made payments on your child's behalf that are deductible as a business expense and a charitable contribution. How do i get 2012 tax forms You made the payments out of your child's earnings. How do i get 2012 tax forms These items can be deducted only on the child's return. How do i get 2012 tax forms Standard Deduction The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of: $1,000, or The individual's earned income plus $350, but not more than the regular standard deduction (generally $6,100). How do i get 2012 tax forms However, the standard deduction may be higher for a dependent who: Is 65 or older, or Is blind. How do i get 2012 tax forms Certain dependents cannot claim any standard deduction. How do i get 2012 tax forms See Standard Deduction of Zero , later. How do i get 2012 tax forms Worksheet 1. How do i get 2012 tax forms   Use Worksheet 1 to figure the dependent's standard deduction. How do i get 2012 tax forms Worksheet 1. How do i get 2012 tax forms Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. How do i get 2012 tax forms If you were 65 or older and/or blind, check the correct number of boxes below. How do i get 2012 tax forms Put the total number of boxes checked in box c and go to line 1. How do i get 2012 tax forms a. How do i get 2012 tax forms You 65 or older   Blind   b. How do i get 2012 tax forms Your spouse, if claiming  spouse's exemption 65 or older   Blind   c. How do i get 2012 tax forms Total boxes checked         1. How do i get 2012 tax forms Enter your earned income (defined below) plus $350. How do i get 2012 tax forms If none, enter -0-. How do i get 2012 tax forms 1. How do i get 2012 tax forms     2. How do i get 2012 tax forms Minimum amount. How do i get 2012 tax forms   2. How do i get 2012 tax forms $1,000   3. How do i get 2012 tax forms Compare lines 1 and 2. How do i get 2012 tax forms Enter the larger of the two amounts here. How do i get 2012 tax forms 3. How do i get 2012 tax forms     4. How do i get 2012 tax forms Enter on line 4 the amount shown below for your filing status. How do i get 2012 tax forms       Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 4. How do i get 2012 tax forms     5. How do i get 2012 tax forms Standard deduction. How do i get 2012 tax forms         a. How do i get 2012 tax forms Compare lines 3 and 4. How do i get 2012 tax forms Enter the smaller amount here. How do i get 2012 tax forms If under 65 and not blind, stop here. How do i get 2012 tax forms This is your standard deduction. How do i get 2012 tax forms Otherwise, go on to line 5b. How do i get 2012 tax forms 5a. How do i get 2012 tax forms     b. How do i get 2012 tax forms If 65 or older or blind, multiply $1,500 ($1,200 if married) by the number in box c above. How do i get 2012 tax forms Enter the result here. How do i get 2012 tax forms 5b. How do i get 2012 tax forms     c. How do i get 2012 tax forms Add lines 5a and 5b. How do i get 2012 tax forms This is your standard deduction for 2013. How do i get 2012 tax forms 5c. How do i get 2012 tax forms     Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. How do i get 2012 tax forms It also includes any amount received as a scholarship that you must include in income. How do i get 2012 tax forms   Example 1. How do i get 2012 tax forms Michael is single, age 15, and not blind. How do i get 2012 tax forms His parents can claim him as a dependent on their tax return. How do i get 2012 tax forms He has taxable interest income of $800 and wages of $150. How do i get 2012 tax forms He enters $500 (his earned income plus $350) on line 1 of Worksheet 1. How do i get 2012 tax forms On line 3, he enters $1,000, the larger of $500 or $1,000. How do i get 2012 tax forms Michael enters $6,100 on line 4. How do i get 2012 tax forms On line 5a, he enters $1,000, the smaller of $1,000 or $6,100. How do i get 2012 tax forms His standard deduction is $1,000. How do i get 2012 tax forms Example 2. How do i get 2012 tax forms Judy, a full-time student, is single, age 22, and not blind. How do i get 2012 tax forms Her parents can claim her as a dependent on their tax return. How do i get 2012 tax forms She has dividend income of $275 and wages of $2,500. How do i get 2012 tax forms She enters $2,850 (her earned income plus $350) on line 1 of Worksheet 1. How do i get 2012 tax forms On line 3, she enters $2,850, the larger of $2,850 or $1,000. How do i get 2012 tax forms She enters $6,100 on line 4. How do i get 2012 tax forms On line 5a, she enters $2,850 (the smaller of $2,850 or $6,100) as her standard deduction. How do i get 2012 tax forms Example 3. How do i get 2012 tax forms Amy, who is single, is claimed as a dependent on her parents' tax return. How do i get 2012 tax forms She is 18 years old and blind. How do i get 2012 tax forms She has taxable interest income of $1,000 and wages of $2,000. How do i get 2012 tax forms She enters $2,350 (her earned income plus $350) on line 1 of Worksheet 1. How do i get 2012 tax forms She enters $2,350 (the larger of $2,350 or $1,000) on line 3, $6,100 on line 4, and $2,350 (the smaller of $2,350 or $6,100) on line 5a. How do i get 2012 tax forms Because Amy is blind, she checks the box for blindness and enters “1” in box c at the top of Worksheet 1. How do i get 2012 tax forms She enters $1,500 (the number in box c times $1,500) on line 5b. How do i get 2012 tax forms Her standard deduction on line 5c is $3,850 ($2,350 + $1,500). How do i get 2012 tax forms Standard Deduction of Zero The standard deduction for the following dependents is zero. How do i get 2012 tax forms A married dependent filing a separate return whose spouse itemizes deductions. How do i get 2012 tax forms A dependent who files a return for a period of less than 12 months due to a change in his or her annual accounting period. How do i get 2012 tax forms A nonresident or dual-status alien dependent, unless the dependent is married to a U. How do i get 2012 tax forms S. How do i get 2012 tax forms citizen or resident alien at the end of the year and chooses to be treated as a U. How do i get 2012 tax forms S. How do i get 2012 tax forms resident for the year. How do i get 2012 tax forms See Publication 519, U. How do i get 2012 tax forms S. How do i get 2012 tax forms Tax Guide for Aliens, for information on making this choice. How do i get 2012 tax forms Example. How do i get 2012 tax forms Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. How do i get 2012 tax forms However, her husband elects to file a separate return and itemize his deductions. How do i get 2012 tax forms Because he itemizes, Jennifer's standard deduction on her return is zero. How do i get 2012 tax forms She can, however, itemize any of her allowable deductions. How do i get 2012 tax forms Dependent's Own Exemption A person who can be claimed as a dependent on another taxpayer's return cannot claim his or her own exemption. How do i get 2012 tax forms This is true even if the other taxpayer does not actually claim the exemption. How do i get 2012 tax forms Example. How do i get 2012 tax forms James and Barbara can claim their child, Ben, as a dependent on their return. How do i get 2012 tax forms Ben is a college student who works during the summer and must file a tax return. How do i get 2012 tax forms Ben cannot claim his own exemption on his return. How do i get 2012 tax forms This is true even if James and Barbara do not claim him as a dependent on their return. How do i get 2012 tax forms Withholding From Wages Employers generally withhold federal income tax, social security tax, and Medicare tax from an employee's wages. How do i get 2012 tax forms If the employee claims exemption from withholding on Form W-4, the employer will not withhold federal income tax. How do i get 2012 tax forms The exemption from withholding does not apply to social security and Medicare taxes. How do i get 2012 tax forms Conditions for exemption from withholding. How do i get 2012 tax forms   An employee can claim exemption from withholding for 2014 only if he or she meets both of the following conditions. How do i get 2012 tax forms For 2013, the employee had a right to a refund of all federal income tax withheld because he or she had no tax liability. How do i get 2012 tax forms For 2014, the employee expects a refund of all federal income tax withheld because he or she expects to have no tax liability. How do i get 2012 tax forms Dependents. How do i get 2012 tax forms   An employee who is a dependent ordinarily cannot claim exemption from withholding if both of the following are true. How do i get 2012 tax forms The employee's gross income will be more than $1,000, the minimum standard deduction for 2014. How do i get 2012 tax forms The employee's unearned income will be more than $350. How do i get 2012 tax forms Exceptions. How do i get 2012 tax forms   An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee: Is age 65 or older, Is blind, or Will claim on his or her 2014 tax return: Adjustments to income, Tax credits, or Itemized deductions. How do i get 2012 tax forms The above exceptions do not apply to supplemental wages greater than $1,000,000. How do i get 2012 tax forms For more information, see Exemption From Withholding in chapter 1 of Publication 505. How do i get 2012 tax forms Example. How do i get 2012 tax forms Guy is 17 and a student. How do i get 2012 tax forms During the summer he works part time at a grocery store. How do i get 2012 tax forms He expects to earn about $1,200 this year. How do i get 2012 tax forms He also worked at the store last summer and received a refund of all his withheld income tax because he did not have a tax liability. How do i get 2012 tax forms The only other income he expects during the year is $375 interest on a savings account. How do i get 2012 tax forms He expects that his parents will be able to claim him as a dependent on their tax return. How do i get 2012 tax forms He is not blind and will not claim adjustments to income, itemized deductions, a higher standard deduction, or tax credits on his return. How do i get 2012 tax forms Guy cannot claim exemption from withholding when he fills out Form W-4 because his parents will be able to claim him as a dependent, his gross income will be more than $1,000 (the minimum standard deduction amount) and his unearned income will be more than $350. How do i get 2012 tax forms Claiming exemption from withholding. How do i get 2012 tax forms    To claim exemption from withholding, an employee must enter “Exempt” in the space provided on Form W-4, line 7. How do i get 2012 tax forms The employee must complete the rest of the form, as explained in the form instructions, and give it to his or her employer. How do i get 2012 tax forms Renewing an exemption from withholding. How do i get 2012 tax forms   An exemption from withholding is good for only one year. How do i get 2012 tax forms An employee must file a new Form W-4 by February 15 each year to continue the exemption. How do i get 2012 tax forms Part 2. How do i get 2012 tax forms Tax on Unearned Income of Certain Children The two rules that follow may affect the tax on the unearned income of certain children. How do i get 2012 tax forms If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. How do i get 2012 tax forms (See Parent's Election To Report Child's Interest and Dividends , later. How do i get 2012 tax forms ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. How do i get 2012 tax forms (See Tax for Certain Children Who Have Unearned Income , later. How do i get 2012 tax forms ) For these rules, the term “child” includes a legally adopted child and a stepchild. How do i get 2012 tax forms These rules apply whether or not the child is a dependent. How do i get 2012 tax forms These rules do not apply if neither of the child's parents were living at the end of the year. How do i get 2012 tax forms Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. How do i get 2012 tax forms The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . How do i get 2012 tax forms Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. How do i get 2012 tax forms Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . How do i get 2012 tax forms Parents are married. How do i get 2012 tax forms   If the child's parents file separate returns, use the return of the parent with the greater taxable income. How do i get 2012 tax forms Parents not living together. How do i get 2012 tax forms   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. How do i get 2012 tax forms If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. How do i get 2012 tax forms   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in Publication 501. How do i get 2012 tax forms Parents are divorced. How do i get 2012 tax forms   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. How do i get 2012 tax forms Custodial parent remarried. How do i get 2012 tax forms   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. How do i get 2012 tax forms Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. How do i get 2012 tax forms Do not use the return of the noncustodial parent. How do i get 2012 tax forms   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. How do i get 2012 tax forms If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. How do i get 2012 tax forms Parents never married. How do i get 2012 tax forms   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. How do i get 2012 tax forms If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. How do i get 2012 tax forms Widowed parent remarried. How do i get 2012 tax forms   If a widow or widower remarries, the new spouse is treated as the child's other parent. How do i get 2012 tax forms The rules explained earlier under Custodial parent remarried apply. How do i get 2012 tax forms Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. How do i get 2012 tax forms If you do, your child will not have to file a return. How do i get 2012 tax forms You can make this election only if all the following conditions are met. How do i get 2012 tax forms Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. How do i get 2012 tax forms Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). How do i get 2012 tax forms The child's gross income was less than $10,000. How do i get 2012 tax forms The child is required to file a return unless you make this election. How do i get 2012 tax forms The child does not file a joint return for the year. How do i get 2012 tax forms No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. How do i get 2012 tax forms No federal income tax was withheld from your child's income under the backup withholding rules. How do i get 2012 tax forms You are the parent whose return must be used when applying the special tax rules for children. How do i get 2012 tax forms (See Which Parent's Return To Use , earlier. How do i get 2012 tax forms ) These conditions are also shown in Figure 1. How do i get 2012 tax forms Certain January 1 birthdays. How do i get 2012 tax forms   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. How do i get 2012 tax forms You cannot make this election for such a child unless the child was a full-time student. How do i get 2012 tax forms   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. How do i get 2012 tax forms You cannot make this election for such a child. How do i get 2012 tax forms How to make the election. How do i get 2012 tax forms    Make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. How do i get 2012 tax forms (If you make this election, you cannot file Form 1040A or Form 1040EZ. How do i get 2012 tax forms ) Attach a separate Form 8814 for each child for whom you make the election. How do i get 2012 tax forms You can make the election for one or more children and not for others. How do i get 2012 tax forms Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. How do i get 2012 tax forms Rate may be higher. How do i get 2012 tax forms   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. How do i get 2012 tax forms This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. How do i get 2012 tax forms However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. How do i get 2012 tax forms Deductions you cannot take. How do i get 2012 tax forms   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. How do i get 2012 tax forms The additional standard deduction if the child is blind. How do i get 2012 tax forms The deduction for a penalty on an early withdrawal of your child's savings. How do i get 2012 tax forms Itemized deductions (such as your child's investment expenses or charitable contributions). How do i get 2012 tax forms Figure 1. How do i get 2012 tax forms Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. How do i get 2012 tax forms Figure 1. How do i get 2012 tax forms Can You Include Your Child's Income On Your Tax Return? Deductible investment interest. How do i get 2012 tax forms   If you use Form 8814, your child's unearned income is considered your unearned income. How do i get 2012 tax forms To figure the limit on your deductible investment interest, add the child's unearned income to yours. How do i get 2012 tax forms However, if your child received qualified dividends, capital gain distributions, or Alaska Permanent Fund dividends, see chapter 3 of Publication 550 for information about how to figure the limit. How do i get 2012 tax forms Alternative minimum tax. How do i get 2012 tax forms    If your child received tax-exempt interest (or exempt-interest dividends paid by a regulated investment company) from certain private activity bonds, you must determine if that interest is a tax preference item for alternative minimum tax (AMT) purposes. How do i get 2012 tax forms If it is, you must include it with your own tax preference items when figuring your AMT. How do i get 2012 tax forms See Form 6251, Alternative Minimum Tax—Individuals, and its instructions for details. How do i get 2012 tax forms Reduced deductions or credits. How do i get 2012 tax forms   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return, including the following. How do i get 2012 tax forms Deduction for contributions to a traditional individual retirement arrangement (IRA). How do i get 2012 tax forms Deduction for student loan interest. How do i get 2012 tax forms Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. How do i get 2012 tax forms Credit for child and dependent care expenses. How do i get 2012 tax forms Child tax credit. How do i get 2012 tax forms Education tax credits. How do i get 2012 tax forms Earned income credit. How do i get 2012 tax forms Penalty for underpayment of estimated tax. How do i get 2012 tax forms   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. How do i get 2012 tax forms If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. How do i get 2012 tax forms Get Publication 505 for more information. How do i get 2012 tax forms Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. How do i get 2012 tax forms Only the amount over $2,000 is added to your income. How do i get 2012 tax forms The amount over $2,000 is shown on Form 8814, line 6. How do i get 2012 tax forms Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. How do i get 2012 tax forms Include the amount from Form 8814, line 12, on Form 1040 or Form 1040NR, line 21. How do i get 2012 tax forms If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040 or Form 1040NR, line 21. How do i get 2012 tax forms On the dotted line next to line 21, enter “Form 8814” and the total of the Form 8814, line 12 amounts. How do i get 2012 tax forms Note. How do i get 2012 tax forms The tax on the first $2,000 is figured on Form 8814, Part II. How do i get 2012 tax forms See Figuring Additional Tax , later. How do i get 2012 tax forms Qualified dividends. How do i get 2012 tax forms   Enter on Form 8814, line 2a, any ordinary dividends your child received. How do i get 2012 tax forms This amount may include qualified dividends. How do i get 2012 tax forms Qualified dividends are those dividends reported on Form 1040, line 9b, or Form 1040NR, line 10b, and are eligible for lower tax rates that apply to a net capital gain. How do i get 2012 tax forms For detailed information about qualified dividends, see Publication 550. How do i get 2012 tax forms   If your child received qualified dividends, the amount of these dividends that is added to your income must be reported on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. How do i get 2012 tax forms You do not include these dividends on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. How do i get 2012 tax forms   Enter the child's qualified dividends on Form 8814, line 2b. How do i get 2012 tax forms But do not include this amount on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. How do i get 2012 tax forms Instead, include the amount from Form 8814, line 9, on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. How do i get 2012 tax forms (The amount on Form 8814, line 9, may be less than the amount on Form 8814, line 2b, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. How do i get 2012 tax forms ) Capital gain distributions. How do i get 2012 tax forms   Enter on Form 8814, line 3, any capital gain distributions your child received. How do i get 2012 tax forms The amount of these distributions that is added to your income must be reported on Schedule D (Form 1040), line 13, or, if you are not required to file Schedule D, on Form 1040, line 13, or Form 1040NR, line 14. How do i get 2012 tax forms You do not include it on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. How do i get 2012 tax forms   Include the amount from Form 8814, line 10, on Schedule D, line 13; Form 1040, line 13; or Form 1040NR, line 14, whichever applies. How do i get 2012 tax forms (The amount on Form 8814, line 10, may be less than the amount on Form 8814, line 3, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. How do i get 2012 tax forms ) Collectibles (28% rate) gain. How do i get 2012 tax forms    If any of the child's capital gain distributions are reported on Form 1099-DIV as collectibles (28% rate) gain, you must determine how much to also include on line 4 of the 28% Rate Gain Worksheet, in the instructions for Schedule D, line 18. How do i get 2012 tax forms Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. How do i get 2012 tax forms The numerator is the part of the child's total capital gain distribution that is collectibles (28% rate) gain. How do i get 2012 tax forms The denominator is the child's total capital gain distribution. How do i get 2012 tax forms Enter the result on line 4 of the 28% Rate Gain Worksheet. How do i get 2012 tax forms Unrecaptured section 1250 gain. How do i get 2012 tax forms   If any of the child's capital gain distributions are reported on Form 1099-DIV as unrecaptured section 1250 gain, you must determine how much to include on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the instructions for Schedule D, line 19. How do i get 2012 tax forms Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. How do i get 2012 tax forms The numerator is the part of the child's total capital gain distribution that is unrecaptured section 1250 gain. How do i get 2012 tax forms The denominator is the child's total capital gain distribution. How do i get 2012 tax forms Enter the result on the Unrecaptured Section 1250 Gain Worksheet, line 11. How do i get 2012 tax forms Section 1202 gain. How do i get 2012 tax forms   If any of the child's capital gain distributions are reported as section 1202 gain (gain on qualified small business stock) on Form 1099-DIV, part or all of that gain may be eligible for the section 1202 exclusion. How do i get 2012 tax forms (For information about the exclusion, see chapter 4 of Publication 550. How do i get 2012 tax forms ) To figure that part, multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. How do i get 2012 tax forms The numerator is the part of the child's total capital gain distribution that is section 1202 gain. How do i get 2012 tax forms The denominator is the child's total capital gain distribution. How do i get 2012 tax forms Your section 1202 exclusion is generally 50% of the result, but may be subject to a limit. How do i get 2012 tax forms In some cases, the exclusion is more than 50%. How do i get 2012 tax forms See the instructions for Schedule D for details and information on how to report the exclusion amount. How do i get 2012 tax forms Example. How do i get 2012 tax forms Fred is 6 years old. How do i get 2012 tax forms In 2013, he received dividend income of $2,100, which included $1,575 of ordinary dividends and a $525 capital gain distribution from a mutual fund. How do i get 2012 tax forms (None of the distributions were reported on Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain. How do i get 2012 tax forms ) All of the ordinary dividends are qualified dividends. How do i get 2012 tax forms He has no other income and is not subject to backup withholding. How do i get 2012 tax forms No estimated tax payments were made under his name and social security number. How do i get 2012 tax forms Fred's parents elect to include Fred's income on their tax return instead of filing a return for him. How do i get 2012 tax forms They figure the amount to report on Form 1040, lines 9a and 9b, the amount to report on their Schedule D, line 13, and the amount to report on Form 1040, line 21, as follows. How do i get 2012 tax forms They leave lines 1a and 1b of Form 8814 blank because Fred does not have any interest income. How do i get 2012 tax forms They enter his ordinary dividends of $1,575 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. How do i get 2012 tax forms They enter the amount of Fred's capital gain distributions, $525, on line 3. How do i get 2012 tax forms Next, they add the amounts on lines 1a, 2a, and 3 and enter the result, $2,100, on line 4. How do i get 2012 tax forms They subtract the base amount on line 5, $2,000, from the amount on line 4, $2,100, and enter the result, $100, on line 6. How do i get 2012 tax forms This is the total amount from Form 8814 to be reported on their return. How do i get 2012 tax forms Next, they figure how much of this amount is qualified dividends and how much is capital gain distributions. How do i get 2012 tax forms They divide the amount on line 2b, $1,575, by the amount on line 4, $2,100. How do i get 2012 tax forms They enter the result, . How do i get 2012 tax forms 75, on line 7. How do i get 2012 tax forms They divide the amount on line 3, $525, by the amount on line 4, $2,100. How do i get 2012 tax forms They enter the result, . How do i get 2012 tax forms 25, on line 8. How do i get 2012 tax forms They multiply the amount on line 6, $100, by the decimal on line 7, . How do i get 2012 tax forms 75, and enter the result, $75, on line 9. How do i get 2012 tax forms They multiply the amount on line 6, $100, by the decimal on line 8, . How do i get 2012 tax forms 25, and enter the result, $25, on line 10. How do i get 2012 tax forms They include the amount from line 9, $75, on lines 9a and 9b of their Form 1040 and enter “Form 8814 – $75” on the dotted lines next to lines 9a and 9b. How do i get 2012 tax forms They include the amount from line 10, $25, on line 13 of their Schedule D (Form 1040) and enter “Form 8814 – $25” on the dotted line next to Schedule D, line 13. How do i get 2012 tax forms They enter $100 ($75 + $25) on line 11 and -0- ($100 – $100) on line 12. How do i get 2012 tax forms Because the amount on line 12 is -0-, they do not include any amount from Form 8814 on their Form 1040, line 21. How do i get 2012 tax forms Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. How do i get 2012 tax forms This tax is added to the tax figured on your income. How do i get 2012 tax forms This additional tax is the smaller of: 10% x (your child's gross income − $1,000), or $100. How do i get 2012 tax forms Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44, or Form 1040NR, line 42. How do i get 2012 tax forms Check box a on Form 1040, line 44, or Form 1040NR, line 42. How do i get 2012 tax forms Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. How do i get 2012 tax forms If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. How do i get 2012 tax forms Attach the completed form to the child's Form 1040, Form 1040A, or Form 1040NR. How do i get 2012 tax forms When Form 8615 must be filed. How do i get 2012 tax forms   Form 8615 must be filed for a child if all of the following statements are true. How do i get 2012 tax forms The child's unearned income was more than $2,000. How do i get 2012 tax forms The child is required to file a return for 2013. How do i get 2012 tax forms The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. How do i get 2012 tax forms At least one of the child's parents was alive at the end of 2013. How do i get 2012 tax forms The child does not file a joint return for 2013. How do i get 2012 tax forms These conditions are also shown in Figure 2. How do i get 2012 tax forms Certain January 1 birthdays. How do i get 2012 tax forms   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. How do i get 2012 tax forms IF a child was born on. How do i get 2012 tax forms . How do i get 2012 tax forms . How do i get 2012 tax forms THEN, at the end of 2013, the child is considered to be. How do i get 2012 tax forms . How do i get 2012 tax forms . How do i get 2012 tax forms January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. How do i get 2012 tax forms The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. How do i get 2012 tax forms  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. How do i get 2012 tax forms  ***Do not use Form 8615 for this child. How do i get 2012 tax forms Figure 2. How do i get 2012 tax forms Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. How do i get 2012 tax forms Figure 2. How do i get 2012 tax forms Do You Have To Use Form 8615 To Figure Your Child's Tax? Providing Parental Information (Form 8615, Lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. How do i get 2012 tax forms (If the parents filed a joint return, enter the name and social security number listed first on the joint return. How do i get 2012 tax forms ) On line C, check the box for the parent's filing status. How do i get 2012 tax forms See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on Form 8615. How do i get 2012 tax forms Parent with different tax year. How do i get 2012 tax forms   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. How do i get 2012 tax forms Example. How do i get 2012 tax forms Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 2013 (January 1 – December 31). How do i get 2012 tax forms Kimberly's mother files her tax return on a fiscal year basis (July 1 – June 30). How do i get 2012 tax forms Kimberly must use the information on her mother's return for the tax year ending June 30, 2013, to complete her 2013 Form 8615. How do i get 2012 tax forms Parent's return information not known timely. How do i get 2012 tax forms   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. How do i get 2012 tax forms   You can use any reasonable estimate. How do i get 2012 tax forms This includes using information from last year's return. How do i get 2012 tax forms If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. How do i get 2012 tax forms   When you get the correct information, file an amended return on Form 1040X, Amended U. How do i get 2012 tax forms S. How do i get 2012 tax forms Individual Income Tax Return. How do i get 2012 tax forms Extension of time to file. How do i get 2012 tax forms   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. How do i get 2012 tax forms S. How do i get 2012 tax forms Individual Income Tax Return. How do i get 2012 tax forms See the instructions for Form 4868 for details. How do i get 2012 tax forms    An extension of time to file is not an extension of time to pay. How do i get 2012 tax forms You must make an accurate estimate of the tax for 2013. How do i get 2012 tax forms If you do not pay the full amount due by the regular due date, the child will owe interest and may also be charged penalties. How do i get 2012 tax forms See Form 4868 and its instructions. How do i get 2012 tax forms Parent's return information not available. How do i get 2012 tax forms   If a child cannot get the required information about his or her parent's tax return, the child (or the child's legal representative) can request the necessary information from the Internal Revenue Service (IRS). How do i get 2012 tax forms How to request. How do i get 2012 tax forms   After the end of the tax year, send a signed, written request for the information to the Internal Revenue Service Center where the parent's return will be filed. How do i get 2012 tax forms (The IRS cannot process a request received before the end of the tax year. How do i get 2012 tax forms )    You should also consider getting an extension of time to file the child's return, because there may be a delay in getting the requested information. How do i get 2012 tax forms   The request must contain all of the following. How do i get 2012 tax forms A statement that you are making the request to comply with section 1(g) of the Internal Revenue Code and that you have tried to get the information from the parent. How do i get 2012 tax forms Proof of the child's age (for example, a copy of the child's birth certificate). How do i get 2012 tax forms Evidence the child has more than $2,000 of unearned income (for example, a copy of the child's prior year tax return or copies of Forms 1099 for the current year). How do i get 2012 tax forms The name, address, social security number (if known), and filing status (if known) of the parent whose information is to be shown on Form 8615. How do i get 2012 tax forms    A child's legal representative making the request should include a copy of his or her Power of Attorney, such as Form 2848, or proof of legal guardianship. How do i get 2012 tax forms Step 1. How do i get 2012 tax forms Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. How do i get 2012 tax forms To do that, use Form 8615, Part I. How do i get 2012 tax forms Line 1 (Unearned Income) If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. How do i get 2012 tax forms Adjusted gross income is shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. How do i get 2012 tax forms Form 1040EZ and Form 1040NR-EZ cannot be used if Form 8615 must be filed. How do i get 2012 tax forms If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. How do i get 2012 tax forms However, use the following worksheet if: the child has excluded any foreign earned income, deducted a loss from self-employment, or has a net operating loss from another year. How do i get 2012 tax forms Alternate Worksheet for Form 8615, Line 1 A. How do i get 2012 tax forms Enter the amount from the child's Form 1040, line 22, or Form 1040NR, line 23   B. How do i get 2012 tax forms Enter the total of any net loss  from self-employment, any net operating loss deduction, any foreign earned income exclusion, and any foreign housing exclusion from the child's Form 1040 or Form 1040NR. How do i get 2012 tax forms Enter this total as a positive number (greater than zero)   C. How do i get 2012 tax forms Add line A and line B and  enter the total   D. How do i get 2012 tax forms Enter the child's earned income plus any amount from the child's Form 1040, line 30, or the child's Form 1040NR, line 30     Generally, the child's earned income is the total of the amounts reported on Form 1040, lines 7, 12, and 18 (if line 12 or 18 is a loss, use zero) or Form 1040NR, lines 8, 13, and 19 (if line 13 or 19 is a loss, use zero)   E. How do i get 2012 tax forms Subtract line D from line C. How do i get 2012 tax forms Enter the result here and on Form 8615, line 1   Unearned income defined. How do i get 2012 tax forms   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. How do i get 2012 tax forms It includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from trusts, and unemployment compensation. How do i get 2012 tax forms Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). How do i get 2012 tax forms Nontaxable income. How do i get 2012 tax forms   For this purpose, unearned income includes only amounts the child must include in gross income. How do i get 2012 tax forms Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. How do i get 2012 tax forms Capital loss. How do i get 2012 tax forms   A child's capital losses are taken into account in figuring the child's unearned income. How do i get 2012 tax forms Capital losses are first applied against capital gains. How do i get 2012 tax forms If the capital losses are more than the capital gains, the difference (up to $3,000) is subtracted from the child's interest, dividends, and other unearned income. How do i get 2012 tax forms Any difference over $3,000 is carried to the next year. How do i get 2012 tax forms Income from property received as a gift. How do i get 2012 tax forms   A child's unearned income includes all income produced by property belonging to the child. How do i get 2012 tax forms This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. How do i get 2012 tax forms   A child's unearned income includes income produced by property given as a gift to the child. How do i get 2012 tax forms This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. How do i get 2012 tax forms Example. How do i get 2012 tax forms Amanda Black, age 13, received the following income. How do i get 2012 tax forms Dividends—$800 Wages—$2,100 Taxable interest—$1,200 Tax-exempt interest—$100 Capital gains—$300 Capital losses—($200) The dividends were qualified dividends on stock given to her by her grandparents. How do i get 2012 tax forms Amanda's unearned income is $2,100. How do i get 2012 tax forms This is the total of the dividends ($800), taxable interest ($1,200), and capital gains reduced by capital losses ($300 − $200 = $100). How do i get 2012 tax forms Her wages are earned (not unearned) income because they are received for work actually performed. How do i get 2012 tax forms Her tax-exempt interest is not included because it is nontaxable. How do i get 2012 tax forms Trust income. How do i get 2012 tax forms   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. How do i get 2012 tax forms   However, taxable distributions from a qualified disability trust are considered earned income for the purposes of completing Form 8615. How do i get 2012 tax forms See the Form 8615 instructions for details. How do i get 2012 tax forms Adjustment to income. How do i get 2012 tax forms   In figuring the amount to enter on line 1, the child's unearned income is reduced by any penalty on the early withdrawal of savings. How do i get 2012 tax forms Line 2 (Deductions) If the child does not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $2,000 on line 2. How do i get 2012 tax forms If the child itemizes deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29 (or Schedule A (Form 1040NR), line 15), that are directly connected with the production of the unearned income entered on line 1, or $2,000. How do i get 2012 tax forms Directly connected. How do i get 2012 tax forms   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. How do i get 2012 tax forms These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. How do i get 2012 tax forms    These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). How do i get 2012 tax forms Only the amount greater than 2% of the child's adjusted gross income can be deducted. How do i get 2012 tax forms See Publication 529, Miscellaneous Deductions, for more information. How do i get 2012 tax forms Example 1. How do i get 2012 tax forms Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with his unearned income. How do i get 2012 tax forms His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. How do i get 2012 tax forms Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly-connected itemized deductions of $300. How do i get 2012 tax forms Example 2. How do i get 2012 tax forms Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. How do i get 2012 tax forms She has no other income. How do i get 2012 tax forms She has itemized deductions of $1,050 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with the production of her unearned income. How do i get 2012 tax forms Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). How do i get 2012 tax forms The amount on line 2 is $2,050. How do i get 2012 tax forms This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. How do i get 2012 tax forms Line 3 Subtract line 2 from line 1 and enter the result on this line. How do i get 2012 tax forms If zero or less, do not complete the rest of the form. How do i get 2012 tax forms However, you must still attach Form 8615 to the child's tax return. How do i get 2012 tax forms Figure the tax on the child's taxable income in the normal manner. How do i get 2012 tax forms Line 4 (Child's Taxable Income) Enter on line 4 the child's taxable income from Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. How do i get 2012 tax forms Child files Form 2555 or 2555-EZ. How do i get 2012 tax forms   If the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) is used to figure the child's tax. How do i get 2012 tax forms Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the child's taxable income on Form 8615, line 4. How do i get 2012 tax forms Line 5 (Net Unearned Income) A child's net unearned income cannot be more than his or her taxable income. How do i get 2012 tax forms Enter on Form 8615, line 5, the smaller of line 3 or line 4. How do i get 2012 tax forms This is the child's net unearned income. How do i get 2012 tax forms If zero or less, do not complete the rest of the form. How do i get 2012 tax forms However, you must still attach Form 8615 to the child's tax return. How do i get 2012 tax forms Figure the tax on the child's taxable income in the normal manner. How do i get 2012 tax forms Step 2. How do i get 2012 tax forms Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. How do i get 2012 tax forms The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. How do i get 2012 tax forms When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. How do i get 2012 tax forms For example, do not refigure the medical expense deduction. How do i get 2012 tax forms Figure the tentative tax on Form 8615, lines 6 through 13. How do i get 2012 tax forms Line 6 (Parent's Taxable Income) Enter on line 6 the amount from the parent's Form 1040, line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form 1040NR, line 41; or Form 1040NR-EZ, line 14. How do i get 2012 tax forms If the parent's taxable income is zero or less, enter zero on line 6. How do i get 2012 tax forms Parent files Form 2555 or 2555-EZ. How do i get 2012 tax forms   If the parent files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet in the Form 1040 instructions is used to figure the parent's tax. How do i get 2012 tax forms Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the parent's taxable income, on line 6 of Form 8615. How do i get 2012 tax forms Line 7 (Net Unearned Income of Other Children) If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. How do i get 2012 tax forms Do not include the amount from line 5 of the Form 8615 being completed. How do i get 2012 tax forms (The term “other child” means any other child whose Form 8615 uses the tax information of the parent identified on Lines A and B of Form 8615. How do i get 2012 tax forms ) Example. How do i get 2012 tax forms Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. How do i get 2012 tax forms The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon—$800 Jerry—$600 Mike—$1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. How do i get 2012 tax forms Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). How do i get 2012 tax forms Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). How do i get 2012 tax forms Other children's information not available. How do i get 2012 tax forms   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. How do i get 2012 tax forms Estimates and extensions are discussed earlier under Providing Parental Information (Form 8615, Lines A–C) . How do i get 2012 tax forms Line 8 (Parent's Taxable Income Plus Children's Net Unearned Income) Enter on this line the total of lines 5, 6, and 7. How do i get 2012 tax forms You must determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, line 9. How do i get 2012 tax forms Net capital gain. How do i get 2012 tax forms   Net capital gain is the smaller of the gain, if any, on Schedule D (Form 1040), line 15, or the gain, if any, on Schedule D, line 16. How do i get 2012 tax forms If Schedule D is not required, it is the amount on Form 1040, line 13; Form 1040A, line 10; or Form 1040NR, line 14. How do i get 2012 tax forms Qualified dividends. How do i get 2012 tax forms   Qualified dividends are those dividends reported on line 9b of Form 1040 or Form 1040A, or line 10b of Form 1040NR. How do i get 2012 tax forms Net capital gain and qualified dividends on line 8. How do i get 2012 tax forms   If neither the child, nor the parent, nor any other child has net capital gain, the net capital gain on line 8 is zero. How do i get 2012 tax forms   If neither the child, nor the parent, nor any other child has qualified dividends, the amount of qualified dividends on line 8 is zero. How do i get 2012 tax forms   If the child, parent, or any other child has net capital gain, figure the amount of net capital gain included on line 8 by adding together the net capital gain amounts included on lines 5, 6, and 7 of Form 8615. How do i get 2012 tax forms   If the child, parent, or any other child has qualified dividends, figure the amount of qualified dividends included on line 8 by adding together the qualified dividend amounts included on lines 5, 6, and 7. How do i get 2012 tax forms   Use the instructions for Form 8615, line 8, including the appropriate Line 5 Worksheet, to find these amounts. How do i get 2012 tax forms See the instructions for Form 8615 for more details. How do i get 2012 tax forms Note. How do i get 2012 tax forms The amount of any net capital gain or qualified dividends is not separately reported on line 8. How do i get 2012 tax forms It is  needed, however, when figuring the tax on line 9. How do i get 2012 tax forms Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Figure the tax on the amount on line 8 using the Tax Table, the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet (in the Form 1040, 1040A, or 1040NR instructions), the Schedule D Tax Worksheet (in the Schedule D instructions), or Schedule J (Form 1040), as follows. How do i get 2012 tax forms If line 8 does not include any net capital gain or qualified dividends, use the Tax Table or Tax Computation Worksheet to figure this tax. How do i get 2012 tax forms But if Schedule J, Income Averaging for Farmers and Fishermen, is used to figure the tax on the parent's return, use it to figure this tax. How do i get 2012 tax forms If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain Tax Worksheet to figure this tax. How do i get 2012 tax forms For details, see the instructions for Form 8615, line 9. How do i get 2012 tax forms However, if the child, parent, or any other child has 28% rate gain or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. How do i get 2012 tax forms But if Schedule J is used to figure the tax on the parent's return, use it to figure this tax. How do i get 2012 tax forms Child files Form 2555 or 2555-EZ. How do i get 2012 tax forms   If line 8 includes any net capital gain or qualified dividends and the child, or any other child filing Form 8615, also files Form 2555 or 2555-EZ, use Using the Schedule D Tax Worksheet for line 9 tax, next, to figure the line 9 tax. How do i get 2012 tax forms Using the Schedule D Tax Worksheet for line 9 tax. How do i get 2012 tax forms    Use the Schedule D Tax Worksheet (in the Schedule D instructions) to figure the line 9 tax on Form 8615 if the child, parent, or any other child has unrecaptured section 1250 gain or 28% rate gain. How do i get 2012 tax forms If you must use the Schedule D Tax Worksheet, first complete any Schedule D and any actual Schedule D Tax Worksheet required for the child, parent, or any other child. How do i get 2012 tax forms Then figure the line 9 tax using another Schedule D Tax Worksheet. How do i get 2012 tax forms (Do not attach this Schedule D Tax Worksheet to the child's return. How do i get 2012 tax forms )   Complete this Schedule D Tax Worksheet as follows. How do i get 2012 tax forms On line 1, enter the amount from Form 8615, line 8. How do i get 2012 tax forms On line 2, enter the qualified dividends included on Form 8615, line 8. How do i get 2012 tax forms (See the earlier discussion for line 8. How do i get 2012 tax forms ) On line 3, enter the total of the amounts, if any, on line 4g of all Forms 4952 filed by the child, parent, or any other child. How do i get 2012 tax forms On line 4, enter the total of the amounts, if any, on line 4e of all Forms 4952 filed by the child, parent, or any other child. How do i get 2012 tax forms If applicable, include instead the smaller amount entered on the dotted line next to line 4e. How do i get 2012 tax forms On lines 5 and 6, follow the worksheet instructions. How do i get 2012 tax forms On line 7, enter the net capital gain included on Form 8615, line 8. How do i get 2012 tax forms (See the earlier discussion for line 8. How do i get 2012 tax forms ) On lines 8 through 10, follow the worksheet instructions. How do i get 2012 tax forms On line 11, enter zero if neither the child, nor the parent, nor any other child has unrecaptured section 1250 gain (Schedule D, line 19) or 28% rate gain (Schedule D, line 18). How do i get 2012 tax forms Otherwise, enter the amount of unrecaptured section 1250 gain and 28% rate gain included in the net capital gain on line 8 of Form 8615. How do i get 2012 tax forms Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11). How do i get 2012 tax forms If the Foreign Earned Income Tax Worksheet was used to figure the parent's tax or the tax of any child, go to step 10 below. How do i get 2012 tax forms Otherwise, skip steps 10, 11, and 12 below, and go to step 13. How do i get 2012 tax forms Determine whether there is a line 8 capital gain excess as follows. How do i get 2012 tax forms Add the amounts on line 2 of all Foreign Earned Income Tax Worksheets completed by the parent or any child for whom Form 8615 is filed. How do i get 2012 tax forms (But for each child do not add more than the excess, if any, of the amount on line 5 of the child's Form 8615 over the child's taxable income on Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. How do i get 2012 tax forms ) Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. How do i get 2012 tax forms Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. How do i get 2012 tax forms If the result is more than zero, that amount is the line 8 capital gain excess. How do i get 2012 tax forms If the result is zero or less, there is no line 8 capital gain excess. How do i get 2012 tax forms If there is no line 8 capital gain excess, skip step 12 below and go to step 13. How do i get 2012 tax forms If there is a line 8 capital gain excess, complete a second Schedule D Tax Worksheet as instructed above and in step 13, but in its entirety and with the following additional modifications. How do i get 2012 tax forms (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet. How do i get 2012 tax forms ) Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. How do i get 2012 tax forms Reduce the amount you would otherwise enter on line 6 (but not below zero) by any of the line 8 capital gain excess not used in (a) above. How do i get 2012 tax forms If the child, parent, or any other child has 28% rate gain, reduce the amount you would otherwise enter on line 8 of Worksheet 1 for Line 11 of the Schedule D Tax Worksheet – 28% Rate Gain (Line 9 Tax), shown later, (but not below zero) by the line 8 capital gain excess, and refigure the amount on line 11 of this Schedule D Tax Worksheet. How do i get 2012 tax forms If the child, parent, or any other child has unrecaptured section 1250 gain, reduce the amount you would otherwise enter on line 8 of Worksheet 2 for Line 11 of the Schedule D Tax Worksheet – Unrecaptured Section 1250 Gain (Line 9 Tax) (but not below zero) by the line 8 capital gain excess not used in 12(c), and refigure the amount on line 11 of this Schedule D Tax Worksheet. How do i get 2012 tax forms Complete lines 12 through 45 following the worksheet instructions. How do i get 2012 tax forms Use the parent's filing status to complete lines 15, 42, and 44. How do i get 2012 tax forms Enter the amount from line 45 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line
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The How Do I Get 2012 Tax Forms

How do i get 2012 tax forms 5. How do i get 2012 tax forms   Excise Taxes Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Prohibited Tax Shelter TransactionsEntity Level Tax Excess Benefit TransactionsTax on Disqualified Persons Tax on Organization Managers Excess Benefit Transaction Excess Business Holdings Taxable Distributions of Sponsoring Organizations Exception. How do i get 2012 tax forms A donor advised fund does not include: Taxes on Prohibited Benefits Resulting From Donor Advised Fund Distributions Excise Taxes on Private Foundations Excise Taxes on Black Lung Benefit Trusts Excise Tax on Failure to Meet the Community Health Needs Assessment Requirements Introduction An excise tax may be imposed on certain tax-exempt organizations. How do i get 2012 tax forms Topics - This chapter discusses: Prohibited tax shelter transactions Excess benefit transactions Excess business holdings Taxable distributions of sponsoring organizations Taxes on prohibited benefits distributed from donor advised funds Excise taxes on private foundations Excise taxes on 501(c)(21) black lung benefit trusts Excise Tax on Failure to Meet the Community Health Needs Assessment Requirements of Hospitals Useful Items - You may want to see: Forms (and Instructions) 4720 Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code See chapter 6 for more information about getting Form 4720. How do i get 2012 tax forms Prohibited Tax Shelter Transactions Section 4965 imposes an excise tax on: Certain tax-exempt entities that are party to prohibited tax shelter transactions, and Any entity manager who approves or otherwise causes the entity to be a party to a prohibited tax shelter transaction and knows or has reason to know that the transaction is a prohibited tax shelter transaction. How do i get 2012 tax forms  Additionally, section 6033 provides new disclosure requirements on a tax-exempt entity that is a party to a prohibited tax shelter transaction. How do i get 2012 tax forms Tax-exempt entities. How do i get 2012 tax forms   Tax-exempt entities that are subject to section 4965 include: Entities described in section 501(c), including but not limited to the following common types of entities: Instrumentalities of the United States described in section 501(c)(1); Churches, hospitals, museums, schools, scientific research organizations, and other charities described in section 501(c)(3); Civic leagues, social welfare organizations, and local associations of employees described in section 501(c)(4); Labor, agricultural, or horticultural organizations described in section 501(c)(5); Business leagues, chambers of commerce, trade associations, and other organizations described in section 501(c)(6); Voluntary employees' beneficiary associations (VEBAs) described in section 501(c)(9); Credit unions described in section 501(c)(14); Insurance companies described in section 501(c)(15); and Veterans' organizations described in section 501(c)(19). How do i get 2012 tax forms Religious or apostolic associations or corporations described in section 501(d). How do i get 2012 tax forms Entities described in section 170(c), including states, possessions of the United States, the District of Columbia, political subdivisions of states and political subdivisions of possessions of the United States (but not including the United States). How do i get 2012 tax forms Indian tribal governments within the meaning of section 7701(a)(40). How do i get 2012 tax forms Entity manager. How do i get 2012 tax forms    An entity manager is any person with authority or responsibility similar to that exercised by an officer, director, or trustee, and, for any act, the person that has authority or responsibility with respect to the prohibited transaction. How do i get 2012 tax forms Prohibited tax shelter transaction. How do i get 2012 tax forms   A prohibited tax shelter transaction is any listed transaction, within the meaning of section 6707A(c)(2), and any prohibited reportable transactions. How do i get 2012 tax forms A prohibited reportable transaction is a confidential transaction within the meaning of Regulations section 1. How do i get 2012 tax forms 6011-4(b)(3), and a transaction with contractual protection within the meaning of Regulations section 1. How do i get 2012 tax forms 6011-4(b)(4). How do i get 2012 tax forms See the Instructions for Form 8886 for more information on listed transactions and prohibited reportable transactions. How do i get 2012 tax forms Subsequently listed transaction. How do i get 2012 tax forms   Any transaction to which the tax-exempt entity is a party and is later determined to be a listed transaction after the entity has become a party to it, is a subsequently listed transaction. How do i get 2012 tax forms Entity Level Tax Section 4965(a)(1) imposes an entity level excise tax on any tax-exempt entity described in 1, 2, 3, or 4 above that becomes a party to a prohibited tax shelter transaction or is a party to a subsequently listed transaction (defined earlier). How do i get 2012 tax forms The excise tax imposed on a tax-exempt entity applies to tax years in which the entity becomes a party to the prohibited tax shelter transaction and any subsequent tax years. How do i get 2012 tax forms The amount of the excise tax depends on whether the tax-exempt entity knew or had reason to know that the transaction was a prohibited tax shelter transaction at the time it became a party to the transaction. How do i get 2012 tax forms To figure and report the excise tax imposed on a tax-exempt entity for being a party to a prohibited tax shelter transaction, file Form 4720. How do i get 2012 tax forms For more information about this excise tax, including information about how it is figured, see the Instructions for Form 4720. How do i get 2012 tax forms Manager Level Tax Section 4965(a)(2) imposes an excise tax on any tax-exempt entity manager who approves or otherwise causes the entity to be a party to a prohibited tax shelter transaction and knows (or has reason to know) that the transaction is a prohibited tax shelter transaction. How do i get 2012 tax forms The excise tax, in the amount of $20,000, is assessed for each approval or other act causing the organization to be a party to the prohibited tax shelter transaction. How do i get 2012 tax forms To report this tax, file Form 4720. How do i get 2012 tax forms Excess Benefit Transactions Excise tax on excess benefit transactions. How do i get 2012 tax forms   A disqualified person who benefits from an excess benefit transaction, such as compensation, fringe benefits, or contract payments from certain section 501(c)(3), 501(c)(4), or 501(c)(29) organizations, must correct the transaction and may have to pay an excise tax under section 4958. How do i get 2012 tax forms A manager of the organization may also have to pay an excise tax under section 4958. How do i get 2012 tax forms These taxes are reported on Form 4720. How do i get 2012 tax forms   The excise taxes are imposed if an applicable tax-exempt organization provides an excess benefit to a disqualified person and that benefit exceeds the value of the benefit received in exchange. How do i get 2012 tax forms   There are three taxes under section 4958. How do i get 2012 tax forms Disqualified persons are liable for the first two taxes and certain organization managers are liable for the third tax. How do i get 2012 tax forms    Taxes imposed on excess benefit transactions do not apply to a transaction under a written contract that was binding on September 13, 1995, and at all times thereafter before the transaction occurred. How do i get 2012 tax forms Tax on Disqualified Persons An excise tax equal to 25% of the excess benefit is imposed on each excess benefit transaction between an applicable tax-exempt organization and a disqualified person. How do i get 2012 tax forms The disqualified person who benefited from the transaction is liable for the tax. How do i get 2012 tax forms See definition of Disqualified person, later at Disqualified person. How do i get 2012 tax forms Additional tax on the disqualified person. How do i get 2012 tax forms   If the 25% tax is imposed and the excess benefit transaction is not corrected within the taxable period, an additional excise tax equal to 200% of the excess benefit is imposed on any disqualified person involved. How do i get 2012 tax forms   If a disqualified person makes a payment of less than the full correction amount, the 200% tax is imposed only on the unpaid portion of the correction amount. How do i get 2012 tax forms If more than one disqualified person received an excess benefit from an excess benefit transaction, all such disqualified persons are jointly and severally liable for the taxes. How do i get 2012 tax forms   To avoid the 200% tax, a disqualified person must correct the excess benefit transaction during the taxable period. How do i get 2012 tax forms The 200% tax is abated (refunded if collected) if the excess benefit transaction is corrected within a 90-day correction period beginning on the date a statutory notice of deficiency is issued. How do i get 2012 tax forms Taxable period. How do i get 2012 tax forms   The taxable period means the period beginning with the date on which the excess benefit transaction occurs and ending on the earlier of: The date a notice of deficiency was mailed to the disqualified person for the initial tax on the excess benefit transaction, or The date on which the initial tax on the excess benefit transaction for the disqualified person is assessed. How do i get 2012 tax forms Tax on Organization Managers If tax is imposed on a disqualified person for any excess benefit transaction, an excise tax equal to 10% of the excess benefit is imposed on an organization manager who knowingly participated in an excess benefit transaction, unless such participation was not willful and was due to reasonable cause. How do i get 2012 tax forms This tax cannot exceed $20,000 ($10,000 for transactions entered in a tax year beginning before August 18, 2006), for each transaction. How do i get 2012 tax forms There is also joint and several liability for this tax. How do i get 2012 tax forms A person can be liable for both the tax paid by the disqualified person and the organization manager tax for a particular excess benefit transaction. How do i get 2012 tax forms Organization Manager. How do i get 2012 tax forms   An organization manager is any officer, director, or trustee of an applicable tax-exempt organization, or any individual having powers or responsibilities similar to officers, directors, or trustees of the organization, regardless of title. How do i get 2012 tax forms An organization manager is not considered to have participated in an excess benefit transaction where the manager has opposed the transaction in a manner consistent with the fulfillment of the manager's responsibilities to the organization. How do i get 2012 tax forms For example, a director who votes against giving an excess benefit would ordinarily not be subject to the 10% tax. How do i get 2012 tax forms A person participates in a transaction knowingly if the person: Has actual knowledge of sufficient facts so that, based solely upon those facts, such transaction would be an excess benefit transaction; Is aware that such a transaction under these circumstances may violate the provisions of federal tax law governing excess benefit transactions; and Negligently fails to make reasonable attempts to ascertain whether the transaction is an excess benefit transaction, or the manager is in fact aware that it is such a transaction. How do i get 2012 tax forms Knowing does not mean having reason to know. How do i get 2012 tax forms The organization manager ordinarily will not be considered knowing if, after full disclosure of the factual situation to an appropriate professional, the organization manager relied on the professional's reasoned written opinion on matters within the professional's expertise or if the manager relied on the fact that the requirements for the rebuttable presumption of reasonableness have been satisfied. How do i get 2012 tax forms Participation by an organization manager is willful if it is voluntary, conscious, and intentional. How do i get 2012 tax forms An organization manager's participation is due to reasonable cause if the manager has exercised responsibility on behalf of the organization with ordinary business care and prudence. How do i get 2012 tax forms Excess Benefit Transaction An excess benefit transaction is a transaction in which an economic benefit is provided by an applicable tax-exempt organization, directly or indirectly, to or for the use of any disqualified person, and the value of the economic benefit provided by the organization exceeds the value of the consideration (including the performance of services) received for providing such benefit. How do i get 2012 tax forms The excess benefit transaction rules apply to all transactions with disqualified persons, regardless of whether the amount of the benefit provided is determined in whole or in part by the revenues of one or more activities of the organization. How do i get 2012 tax forms To determine whether an excess benefit transaction has occurred, all consideration and benefits exchanged between a disqualified person and the applicable tax-exempt organization, and all entities it controls, are taken into account. How do i get 2012 tax forms For purposes of determining the value of economic benefits, the value of property, including the right to use property, is the fair market value. How do i get 2012 tax forms Fair market value is the price at which property, or the right to use property, would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy, sell, or transfer property or the right to use property, and both having reasonable knowledge of relevant facts. How do i get 2012 tax forms Donor advised fund transactions occurring after August 17, 2006. How do i get 2012 tax forms   For a donor advised fund, an excess benefit transaction includes a grant, loan, compensation, or other similar payment from the fund to a: Donor or donor advisor, Family member of a donor, or donor advisor, 35% controlled entity of a donor, or donor advisor, or 35% controlled entity of a family member of a donor, or donor advisor. How do i get 2012 tax forms   The excess benefit in this transaction is the amount of the grant, loan, compensation, or other similar payment. How do i get 2012 tax forms For additional information, see the Instructions for Form 4720. How do i get 2012 tax forms Supporting organization transactions occurring after July 25, 2006. How do i get 2012 tax forms   For any supporting organization, defined in section 509(a)(3), an excess benefit transaction includes grants, loans, compensation, or other similar payment provided by the supporting organization to a: Substantial contributor, Family member of a substantial contributor, 35% controlled entity of a substantial contributor, or 35% controlled entity of a family member of a substantial contributor. How do i get 2012 tax forms   Additionally, an excess benefit transaction includes any loans provided by the supporting organization to a disqualified person (other than an organization described in section 509(a)(1), (2), or (4)). How do i get 2012 tax forms   The excess benefit for substantial contributors and parties related to those contributors includes the amount of the grant, loan, compensation, or other similar payment. How do i get 2012 tax forms For additional information, see the Instructions for Form 4720. How do i get 2012 tax forms   Excess benefit transaction rules generally do not apply to transactions between a supporting organization and its supported organization described in section 501(c)(4), (5), or (6) in furtherance of charitable purposes. How do i get 2012 tax forms Date of Occurrence An excess benefit transaction occurs on the date the disqualified person receives the economic benefit from the organization for federal income tax purposes. How do i get 2012 tax forms However, when a single contractual arrangement provides for a series of compensation or other payments to or for the use of a disqualified person during the disqualified person's tax year, any excess benefit transaction with respect to these payments occurs on the last day of the taxpayer's tax year. How do i get 2012 tax forms In the case of benefits provided to a qualified pension, profit-sharing, or stock bonus plan, the transaction occurs on the date the benefit is vested. How do i get 2012 tax forms In the case of the transfer of property subject to a substantial risk of forfeiture, or in the case of rights to future compensation or property, the transaction occurs on the date the property, or the rights to future compensation or property, is not subject to a substantial risk of forfeiture. How do i get 2012 tax forms Where the disqualified person elects to include an amount in gross income in the tax year of transfer under section 83(b), the excess benefit transaction occurs on the date the disqualified person receives the economic benefit for federal income tax purposes. How do i get 2012 tax forms Correcting the excess benefit. How do i get 2012 tax forms   An excess benefit transaction is corrected by undoing the excess benefit to the extent possible, and by taking any additional measures necessary to place the organization in a financial position not worse than what it would have been if the disqualified person were dealing under the highest fiduciary standards. How do i get 2012 tax forms   A disqualified person corrects an excess benefit by making a payment in cash or cash equivalents, excluding payment by a promissory note, equal to the correction amount to the applicable tax-exempt organization. How do i get 2012 tax forms The correction amount equals the excess benefit plus the interest on the excess benefit. How do i get 2012 tax forms The interest rate can be no lower than the applicable federal rate, compounded annually, for the month the transaction occurred. How do i get 2012 tax forms   A disqualified person can, with the agreement of the applicable tax-exempt organization, make a payment by returning the specific property previously transferred in the excess transaction. How do i get 2012 tax forms In this case, the disqualified person is treated as making a payment equal to the lesser of: The fair market value of the property on the date the property is returned to the organization, or The fair market value of the property on the date the excess benefit transaction occurred. How do i get 2012 tax forms   If the payment resulting from the return of property is less than the correction amount, the disqualified person must make an additional cash payment to the organization equal to the difference. How do i get 2012 tax forms   If the payment resulting from the return of the property exceeds the correction amount described above, the organization can make a cash payment to the disqualified person equal to the difference. How do i get 2012 tax forms Exception. How do i get 2012 tax forms   For a correction of an excess benefit transaction (discussed earlier), no amount repaid in a manner prescribed by the Secretary can be held in a donor advised fund. How do i get 2012 tax forms Applicable Tax-Exempt Organization An applicable tax-exempt organization is a section 501(c)(3), 501(c)(4), or 501(c)(29) organization that is tax-exempt under section 501(a), or was such an organization at any time during a 5-year period ending on the day of the excess benefit transaction. How do i get 2012 tax forms An applicable tax-exempt organization does not include: A private foundation as defined in section 509(a), A governmental entity that is: Exempt from (or not subject to) taxation without regard to section 501(a), or Not required to file an annual return, or A foreign organization, recognized by the IRS or by treaty, that receives substantially all of its support (other than gross investment income) from sources outside the United States. How do i get 2012 tax forms An organization is not treated as a section 501(c)(3), 501(c)(4), or 501(c)(29) organization for any period covered by a final determination that the organization was not tax-exempt under section 501(a), but only if the determination was not based on private inurement or one or more excess benefit transactions. How do i get 2012 tax forms Disqualified Person A disqualified person is: Any person (at any time during the 5-year period ending on the date of the transaction) in a position to exercise substantial influence over the affairs of the organization, A family member of an individual described in 1, and A 35% controlled entity. How do i get 2012 tax forms For donor advised funds, sponsoring organizations, and certain supporting organizations occurring after August 17, 2006. How do i get 2012 tax forms   The following persons will be considered disqualified persons along with certain family members and 35% controlled entities associated with them. How do i get 2012 tax forms Donors of donor advised funds, Investment advisors of sponsoring organizations, and Disqualified persons of a section 509(a)(3) supporting organization that supports the applicable tax-exempt organization. How do i get 2012 tax forms For certain supporting organization transactions occurring after July 25, 2006. How do i get 2012 tax forms   Substantial contributors to supporting organizations will also be considered disqualified persons with respect to the supporting organizations, along with their family members and 35% controlled entities. How do i get 2012 tax forms Investment advisor. How do i get 2012 tax forms   Investment advisor means for any sponsoring organization, any person compensated by such organization (but not an employee of such organization) for managing the investment of, or providing investment advice for, assets maintained in donor advised funds owned by such sponsoring organization. How do i get 2012 tax forms Substantial contributor. How do i get 2012 tax forms   In general, a substantial contributor means any person who contributed or bequeathed an aggregate of more than $5,000 to the organization, if that amount is more than 2% of the total contributions and bequests received by the end of the organization's tax year in which the contribution or bequest is received. How do i get 2012 tax forms A substantial contributor includes the grantor of a trust. How do i get 2012 tax forms Family members. How do i get 2012 tax forms   Family members of a disqualified person include a disqualified person's spouse, brothers or sisters (whether by whole or half-blood), spouses of brothers or sisters (whether by whole or half-blood), ancestors, children (including a legally adopted child), grandchildren, great grandchildren, and spouses of children, grandchildren, and great grandchildren (whether by whole or half-blood). How do i get 2012 tax forms 35% controlled entity. How do i get 2012 tax forms   A 35% controlled entity is: A corporation in which disqualified persons own more than 35% of the total combined voting power, A partnership in which such persons own more than 35% of the profits interest, or A trust or estate in which such persons own more than 35% of the beneficial interest. How do i get 2012 tax forms   In determining the holdings of a business enterprise, any stock or other interest owned directly or indirectly shall apply. How do i get 2012 tax forms Persons having substantial influence. How do i get 2012 tax forms   Among those who are in a position to exercise substantial influence over the affairs of the organization are, for example, voting members of the governing body, and persons holding the power of: Presidents, chief executives, or chief operating officers. How do i get 2012 tax forms Treasurers and chief financial officers. How do i get 2012 tax forms Persons with a material financial interest in a provider-sponsored organization. How do i get 2012 tax forms Persons not considered to have substantial influence. How do i get 2012 tax forms   Persons who are not considered to be in a position to exercise substantial influence over the affairs of an organization include: An employee who receives benefits that total less than the highly compensated amount in section 414(q)(1)(B)(i) and who does not hold the executive or voting powers mentioned earlier in the discussion on Disqualified Person, is not a family member of a disqualified person, and is not a substantial contributor, Tax-exempt organizations described in section 501(c)(3), and Section 501(c)(4) organizations with respect to transactions engaged in with other section 501(c)(4) organizations. How do i get 2012 tax forms Facts and circumstances. How do i get 2012 tax forms   The determination of whether a person has substantial influence over the affairs of an organization is based on all the facts and circumstances. How do i get 2012 tax forms Facts and circumstances that tend to show a person has substantial influence over the affairs of an organization include, but are not limited to, the following. How do i get 2012 tax forms The person founded the organization. How do i get 2012 tax forms The person is a substantial contributor to the organization under the section 507(d)(2)(A) definition, only taking into account contributions to the organization for the past 5 years. How do i get 2012 tax forms The person's compensation is primarily based on revenues derived from activities of the organization that the person controls. How do i get 2012 tax forms The person has or shares authority to control or determine a substantial portion of the organization's capital expenditures, operating budget, or compensation for employees. How do i get 2012 tax forms The person manages a discrete segment or activity of the organization that represents a substantial portion of the activities, assets, income, or expenses of the organization, as compared to the organization as a whole. How do i get 2012 tax forms The person owns a controlling interest (measured by either vote or value) in a corporation, partnership, or trust that is a disqualified person. How do i get 2012 tax forms The person is a nonstock organization controlled directly or indirectly by one or more disqualified persons. How do i get 2012 tax forms   Facts and circumstances tending to show that a person does not have substantial influence over the affairs of an organization include, but are not limited to, the following. How do i get 2012 tax forms The person has taken a bona fide vow of poverty as an employee or agent of a religious organization or on its behalf. How do i get 2012 tax forms The person is an independent contractor whose sole relationship to the organization is providing professional advice (without having decision-making authority) with respect to transactions from which the independent contractor will not economically benefit either directly or indirectly aside from customary fees received for the professional advice rendered. How do i get 2012 tax forms Any preferential treatment the person receives based on the size of the person's donation is also offered to others making comparable widely solicited donations. How do i get 2012 tax forms The direct supervisor of the person is not a disqualified person. How do i get 2012 tax forms The person does not participate in any management decisions affecting the organization as a whole or a discrete segment of the organization that represents a substantial portion of the activities, assets, income, or expenses of the organization, as compared to the organization as a whole. How do i get 2012 tax forms   In the case of multiple organizations affiliated by common control or governing documents, the determination of whether a person does or does not have substantial influence is made separately for each applicable tax-exempt organization. How do i get 2012 tax forms A person may be a disqualified person with respect to transactions with more than one organization. How do i get 2012 tax forms Reasonable Compensation. How do i get 2012 tax forms    Reasonable compensation is the value that would ordinarily be paid for like services by like enterprises under like circumstances. How do i get 2012 tax forms The section 162 standard will apply in determining the reasonableness of compensation. How do i get 2012 tax forms The fact that a bonus or revenue-sharing arrangement is subject to a cap is a relevant factor in determining reasonableness of compensation. How do i get 2012 tax forms   To determine the reasonableness of compensation, all items of compensation provided by an applicable tax-exempt organization in exchange for performance of services are taken into account in determining the value of compensation (except for economic benefits that are disregarded under the discussion Disregarded benefits , later). How do i get 2012 tax forms Items of compensation include: All forms of cash and noncash compensation, including salary, fees, bonuses, severance payments, and deferred noncash compensation, The payment of liability insurance premiums for, or the payment or reimbursement by the organization of penalties, taxes, or certain expenses under section 4958, unless excludable from income as a de minimis fringe benefit under section 132(a)(4), All other compensatory benefits, whether or not included in gross income for income tax purposes, Taxable and nontaxable fringe benefits, except fringe benefits described in section 132, and Foregone interest on loans. How do i get 2012 tax forms    Intent to treat benefits as compensation. How do i get 2012 tax forms An economic benefit is not treated as consideration for the performance of services unless the organization providing the benefit clearly indicates its intent to treat the benefit as compensation when the benefit is paid. How do i get 2012 tax forms   An applicable tax-exempt organization (or entity that it controls) is treated as clearly indicating its intent to provide an economic benefit as compensation for services only if the organization provides written substantiation that is contemporaneous with the transfer of the economic benefits under consideration. How do i get 2012 tax forms Ways to provide contemporaneous written substantiation of its intent to provide an economic benefit as compensation include: The organization produces a signed written employment contract, The organization reports the benefit as compensation on an original Form W-2, Form 1099, or Form 990, or on an amended form filed before starting an IRS examination, or The disqualified person reports the benefit as income on the person's original Form 1040, or on an amended form filed before starting an IRS examination. How do i get 2012 tax forms Exception. How do i get 2012 tax forms   If the economic benefit is excluded from the disqualified person's gross income for income tax purposes, the applicable tax-exempt organization is not required to indicate its intent to provide an economic benefit as compensation for services. How do i get 2012 tax forms Rebuttable presumption that a transaction is not an excess benefit transaction. How do i get 2012 tax forms   Payments under a compensation arrangement are presumed to be reasonable and the transfer of property (or right to use property) is presumed to be at fair market value, if the following three conditions are met. How do i get 2012 tax forms The transaction is approved in advance by an authorized body of the organization (or an entity it controls) which is composed of individuals who do not have a conflict of interest concerning the transaction. How do i get 2012 tax forms Before making its determination, the authorized body obtained and relied upon appropriate data as to comparability. How do i get 2012 tax forms (There is a special safe harbor for small organizations. How do i get 2012 tax forms If the organization has gross receipts of less than $1 million, appropriate comparability data includes data on compensation paid by three comparable organizations in the same or similar communities for similar services. How do i get 2012 tax forms ) The authorized body adequately documents the basis for its determination concurrently with making that determination. How do i get 2012 tax forms The documentation should include: The terms of the approved transaction and the date approved, The members of the authorized body who were present during debate on the transaction that was approved and those who voted on it, The comparability data obtained and relied upon by the authorized body and how the data was obtained, Any actions by a member of the authorized body having conflict of interest, and Documentation of the basis of the determination before the later of the next meeting of the authorized body or 60 days after the final actions of the authorized body are taken, and approval of records as reasonable, accurate, and complete within a reasonable time thereafter. How do i get 2012 tax forms Disregarded benefits. How do i get 2012 tax forms   The following economic benefits are disregarded for section 4958 purposes. How do i get 2012 tax forms Nontaxable fringe benefits that are excluded from income under section 132. How do i get 2012 tax forms Benefits provided to a volunteer for the organization if the benefit is provided to the general public in exchange for a membership fee or contribution of $75 or less. How do i get 2012 tax forms Benefits provided to a member of an organization due to the payment of a membership fee or to a donor as a result of a deductible contribution, if a significant number of disqualified persons make similar payments or contributions and are offered a similar economic benefit. How do i get 2012 tax forms Benefits provided to a person solely as a member of a charitable class that the applicable tax-exempt organization intends to benefit as part of the accomplishment of its exempt purpose. How do i get 2012 tax forms A transfer of an economic benefit to or for the use of a governmental unit, as defined in section 170(c)(1), if exclusively for public purposes. How do i get 2012 tax forms Special Exception for Initial Contracts      Section 4958 does not apply to any fixed payment made to a person under an initial contract. How do i get 2012 tax forms   A fixed payment is an amount of cash or other property specified in the contract, or determined by a fixed formula that is specified in the contract, which is to be paid or transferred in exchange for the provision of specified services or property. How do i get 2012 tax forms   A fixed formula can, generally, incorporate an amount that depends upon future specified events or contingencies, as long as no one has discretion when calculating the amount of a payment or deciding whether to make a payment (such as a bonus). How do i get 2012 tax forms   An initial contract is a binding written contract between an applicable tax-exempt organization and a person who was not a disqualified person immediately before entering into the contract. How do i get 2012 tax forms   A binding written contract, providing it can be terminated or canceled by the applicable tax-exempt organization without the other party's consent (except as a result of substantial nonperformance) and without substantial penalty, is treated as a new contract, as of the earliest date any termination or cancellation would be effective. How do i get 2012 tax forms Also, if the parties make a material change to a contract, which includes an extension or renewal of the contract (except for an extension or renewal resulting from the exercise of an option by the disqualified person), or a more than incidental change to the amount payable under the contract, it is treated as a new contract as of the effective date of the material change. How do i get 2012 tax forms More information. How do i get 2012 tax forms   For more information, see the Instructions to Forms 990 and 4720. How do i get 2012 tax forms Excess Business Holdings Private foundations are generally not permitted to hold more than a 20% interest in an unrelated business enterprise. How do i get 2012 tax forms They may be subject to an excise tax on the amount of any excess business holdings. How do i get 2012 tax forms For purposes of section 4943, for tax years beginning after August 17, 2006, donor advised funds and certain supporting organizations are considered private foundations. How do i get 2012 tax forms Donor advised fund. How do i get 2012 tax forms   In general, a donor advised fund is a fund or account separately identified by reference to contributions of a donor or donors that is owned and controlled by a sponsoring organization and for which the donor has or expects to have advisory privileges concerning the distribution or investment of the funds. How do i get 2012 tax forms Supporting organizations. How do i get 2012 tax forms   Only certain supporting organizations are subject to the excess business holdings tax under section 4943. How do i get 2012 tax forms These include (1) Type III supporting organizations that are not functionally integrated and (2) Type II supporting organizations that accept any gift or contribution from a person who by himself or in connection with a related party controls the supported organization that the Type II supporting organization supports. How do i get 2012 tax forms Taxes. How do i get 2012 tax forms   A private foundation that has excess holdings in a business enterprise may become liable for an excise tax based on the amount of holdings. How do i get 2012 tax forms The initial tax is 10% (5% for tax years beginning before August 18, 2006) of the value of the excess holdings and is imposed on the last day of each tax year that ends during the taxable period. How do i get 2012 tax forms The excess holdings are determined on the day during the tax year when they were the largest. How do i get 2012 tax forms   A foundation that fails to correct the excess business holdings becomes liable for an additional tax of 200% of the remaining excess business holdings as of the earlier of tax assessment or mailing of a notice of deficiency. How do i get 2012 tax forms   For more information on the tax on excess business holdings, see the Instructions for Form 4720. How do i get 2012 tax forms Taxable Distributions of Sponsoring Organizations An excise tax is imposed on a sponsoring organization for each taxable distribution it makes from a donor advised fund. How do i get 2012 tax forms An excise tax is also imposed on any fund manager of the sponsoring organization who agreed to the making of a distribution, knowing that it is a taxable distribution. How do i get 2012 tax forms Taxable distribution. How do i get 2012 tax forms   A taxable distribution is any distribution from a donor advised fund to any natural person or to any other person if: The distribution is for any purpose other than one specified in section 170(c)(2)(B), or The sponsoring organization maintaining the donor advised fund does not exercise expenditure responsibility with respect to the distribution in accordance with section 4945(h). How do i get 2012 tax forms    However, a taxable distribution does not include a distribution from a donor advised fund to: Any organization described in section 170(b)(1)(A) (other than a disqualified supporting organization), The sponsoring organization of the donor advised fund, or Any other donor advised fund. How do i get 2012 tax forms The tax on taxable distributions applies to distributions occurring in tax years beginning after August 17, 2006. How do i get 2012 tax forms Sponsoring organization. How do i get 2012 tax forms   A sponsoring organization is a section 170(c) organization that is neither a government organization (as referred to in section 170(c)(1) and (2)(A)) nor a private foundation. How do i get 2012 tax forms Donor advised fund. How do i get 2012 tax forms    A donor advised fund is a fund or account: Which is separately identified by reference to contributions of a donor or donors, Which is owned and controlled by a sponsoring organization, and For which the donor (or any person appointed or designated by the donor) has or expects to have advisory privileges concerning the distribution or investment of the funds held in the donor advised funds or accounts because of the donor's status as a donor. How do i get 2012 tax forms Exception. How do i get 2012 tax forms A donor advised fund does not include:    A fund or account that makes distributions only to a single identified organization or governmental entity, or Any fund or account for a person described in 3 above that gives advice about which individuals receive grants for travel, study, or similar purposes, if the following three requirements are met: The person's advisory privileges are performed exclusively by such person in their capacity as a committee member of which all the committee members are appointed by the sponsoring organization, No combination of persons with advisory privileges, described in 3 above, or persons related to those in 3 above directly or indirectly control the committee, and All grants from the fund or account are awarded on an objective and nondiscriminatory basis according to a procedure approved in advance by the board of directors of the sponsoring organization. How do i get 2012 tax forms The procedure must be designed to ensure that all grants meet the requirements of section 4945(g)(1), (2), or (3). How do i get 2012 tax forms Disqualified supporting organization. How do i get 2012 tax forms   A disqualified supporting organization includes (1) a Type III supporting organization that is not functionally integrated and (2) any supporting organization where the donor or donor advisor (and any related parties) directly or indirectly controls a supported organization of the supporting organization. How do i get 2012 tax forms Tax on sponsoring organization. How do i get 2012 tax forms   A tax of 20% of the amount of each taxable distribution is imposed on the sponsoring organization. How do i get 2012 tax forms Tax on fund manager. How do i get 2012 tax forms   If a tax is imposed on a taxable distribution of the sponsoring organization, a tax of 5% of the distribution will be imposed on any fund manager who agreed to the distribution knowing that it was a taxable distribution. How do i get 2012 tax forms Any fund manager who took part in the distribution and is liable for the tax must pay the tax. How do i get 2012 tax forms The maximum amount of tax on all fund managers for any one taxable distribution is $10,000. How do i get 2012 tax forms If more than one fund manager is liable for tax on a taxable distribution, all such managers are jointly and severally liable for the tax. How do i get 2012 tax forms   For more information on the tax on taxable distributions of sponsoring organizations, see the Instructions for Form 4720. How do i get 2012 tax forms Taxes on Prohibited Benefits Resulting From Donor Advised Fund Distributions Prohibited benefit. How do i get 2012 tax forms   If any donor, donor advisor, or related party advises the sponsoring organization about making a distribution which results in a donor, donor advisor, or related party receiving (either directly or indirectly) a more than incidental benefit, then such benefit is a prohibited benefit. How do i get 2012 tax forms The tax on prohibited benefits applies to distributions occurring in tax years beginning after August 17, 2006. How do i get 2012 tax forms Donor advisor. How do i get 2012 tax forms   A donor advisor is any person appointed or designated by a donor to advise a sponsoring organization on the distribution or investment of amounts held in the donor's fund or account. How do i get 2012 tax forms Related party. How do i get 2012 tax forms   A related party includes any family member or 35% controlled entity. How do i get 2012 tax forms See the definition of those terms under Disqualified Person , earlier. How do i get 2012 tax forms Tax on donor, donor advisor, or related person. How do i get 2012 tax forms    A tax of 125% of the benefit resulting from the distribution is imposed on both the party who advised as to the distribution (which might be a donor, donor advisor, or related party) and the party who received such benefit (which might be a donor, donor advisor, or related party). How do i get 2012 tax forms The advisor and the party who received the benefit are jointly and severally liable for the tax. How do i get 2012 tax forms Tax on fund managers. How do i get 2012 tax forms   If a tax is imposed on a prohibited benefit received by a donor, donor advisor, or related person, a tax of 10% of the amount of the prohibited benefit is imposed on any fund manager who agreed to the distribution knowing that it would confer a prohibited benefit. How do i get 2012 tax forms Any fund manager who took part in the distribution and is liable for the tax must pay the tax. How do i get 2012 tax forms The maximum amount of tax on all fund managers for any one taxable distribution is $10,000. How do i get 2012 tax forms If more than one fund manager is liable for tax on a taxable distribution, all such managers are jointly and severally liable for the tax. How do i get 2012 tax forms Exception. How do i get 2012 tax forms   If a person engaged in an excess benefit transaction and received a prohibited benefit for the same transaction, the person is taxed under section 4958, and no tax is imposed under section 4967 for a prohibited benefit. How do i get 2012 tax forms   For more information on taxes on prohibited benefits distributed from donor advised funds, see the Instructions for Form 4720. How do i get 2012 tax forms Excise Taxes on Private Foundations There is an excise tax on the net investment income of most domestic private foundations. How do i get 2012 tax forms Capital gains from appreciation are included in the tax base on private foundation net investment income. How do i get 2012 tax forms This tax must be reported on Form 990-PF and must be paid annually at the time for filing that return or in quarterly estimated tax payments if the total tax for the year (section 4940 tax minus credits) is $500 or more. How do i get 2012 tax forms Form 990-W is used to calculate the estimated tax. How do i get 2012 tax forms In addition, there are several other rules that apply to excise taxes on private foundations. How do i get 2012 tax forms These include: Restrictions on self-dealing between private foundations and their substantial contributors and other disqualified persons, Requirements that the foundation annually distribute income for charitable purposes, Limits on their holdings in any business enterprise (see Excess Business Holdings, earlier), Provisions that investments must not jeopardize the carrying out of exempt purposes, and Provisions to assure that expenditures further the organization's exempt purposes. How do i get 2012 tax forms Violations of these provisions give rise to taxes and penalties against the private foundation and, in some cases, its managers, its substantial contributors, and certain related persons. How do i get 2012 tax forms For more information on the excise taxes imposed on private foundations, see the Instructions for Form 4720 and the Instructions for Form 990-PF. How do i get 2012 tax forms Excise Taxes on Black Lung Benefit Trusts A black lung benefit trust that makes any expenditures, payments, or investments other than those described in chapter 4 under 501(c)(21) - Black Lung Benefit Trusts must pay a tax equal to 10% of the amount of such expenditures. How do i get 2012 tax forms If there are any acts of self-dealing between the trust and a disqualified person, a tax equal to 10% of the amount involved is imposed on the disqualified person. How do i get 2012 tax forms Both of these excise taxes are reported on Schedule A (Form 990-BL). How do i get 2012 tax forms See the Form 990-BL instructions for more information on these taxes and what has to be filed, even if the trust is excepted from filing. How do i get 2012 tax forms Excise Tax on Failure to Meet the Community Health Needs Assessment Requirements For tax years beginning after March 23, 2012, new section 4959 imposes an excise tax on hospital organizations which fail to meet certain section 501(r) requirements for each of their hospital facilities. How do i get 2012 tax forms These entities must meet section 501(r)(3) requirements at all times during their tax year. How do i get 2012 tax forms Section 501(r)(3) requirements pertain to a hospital organization preparing a community health needs assessment (CHNA). How do i get 2012 tax forms See Schedule H, Hospitals (Form 990), for details. How do i get 2012 tax forms Prev  Up  Next   Home   More Online Publications