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How To File An Amended 2011 Tax Return

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How To File An Amended 2011 Tax Return

How to file an amended 2011 tax return Publication 516 - Main Content Table of Contents U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Tax ReturnFiling Information Foreign Bank Accounts U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). How to file an amended 2011 tax return U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Tax Return Filing Information If you are a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. How to file an amended 2011 tax return However, the special rules explained in the following discussions may apply to you. How to file an amended 2011 tax return See also Tax Treaty Benefits, later. How to file an amended 2011 tax return When To File and Pay Most individual tax returns cover a calendar year, January through December. How to file an amended 2011 tax return The regular due date for these tax returns is April 15 of the following year. How to file an amended 2011 tax return If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. How to file an amended 2011 tax return If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. How to file an amended 2011 tax return You must pay interest on any tax not paid by the regular due date. How to file an amended 2011 tax return Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. How to file an amended 2011 tax return See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. How to file an amended 2011 tax return If your return is filed late, the postmark or delivery service date does not determine the date of filing. How to file an amended 2011 tax return In that case, your return is considered filed when it is received by the IRS. How to file an amended 2011 tax return Extensions You may be able to get an extension of time to file your return and pay your tax. How to file an amended 2011 tax return Automatic 2-month extension. How to file an amended 2011 tax return   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. How to file an amended 2011 tax return To get this extension, you must attach a statement to your return explaining how you qualified. How to file an amended 2011 tax return You will owe interest on any tax not paid by the regular due date of your return. How to file an amended 2011 tax return Married taxpayers. How to file an amended 2011 tax return   If you file a joint return, either you or your spouse can qualify for the automatic extension. How to file an amended 2011 tax return If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. How to file an amended 2011 tax return Additional extension. How to file an amended 2011 tax return   You can apply for an additional extension of time to file your return by filing Form 4868. How to file an amended 2011 tax return You must file Form 4868 by the due date for your income tax return. How to file an amended 2011 tax return   Generally, you must file it by April 15. How to file an amended 2011 tax return However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. How to file an amended 2011 tax return Check the box on line 8 of Form 4868. How to file an amended 2011 tax return Payment of tax. How to file an amended 2011 tax return   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. How to file an amended 2011 tax return The late-payment penalty applies if, through withholding, etc. How to file an amended 2011 tax return , you paid less than 90% of your actual tax liability by the original due date of your income tax return. How to file an amended 2011 tax return Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. How to file an amended 2011 tax return Electronic filing. How to file an amended 2011 tax return   You can file for the additional extension by phone, using your home computer, or through a tax professional. How to file an amended 2011 tax return See Form 4868 for more information. How to file an amended 2011 tax return Limit on additional extensions. How to file an amended 2011 tax return   You generally cannot get a total extension of more than 6 months. How to file an amended 2011 tax return However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. How to file an amended 2011 tax return   For more information, see Publication 54. How to file an amended 2011 tax return Foreign Bank Accounts You must file Form TD F 90-22. How to file an amended 2011 tax return 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. How to file an amended 2011 tax return This applies if the combined assets in the account(s) were more than $10,000. How to file an amended 2011 tax return Do not include accounts in a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return military banking facility operated by a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return financial institution. How to file an amended 2011 tax return File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. How to file an amended 2011 tax return Do not attach it to Form 1040. How to file an amended 2011 tax return If you are required to file Form TD F 90-22. How to file an amended 2011 tax return 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). How to file an amended 2011 tax return You also may be required to file Form 8938 with your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. How to file an amended 2011 tax return For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. How to file an amended 2011 tax return For more information, see Form 8938 and its instructions. How to file an amended 2011 tax return U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. How to file an amended 2011 tax return If you are a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return law. How to file an amended 2011 tax return This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). How to file an amended 2011 tax return If you are a nonresident alien, your income from sources outside the United States is not subject to U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return tax. How to file an amended 2011 tax return Foreign Earned Income Exclusion Employees of the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government as an employee. How to file an amended 2011 tax return But see Other Employment, later. How to file an amended 2011 tax return Special Situations In the following two situations, your pay is from the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government and does not qualify for the foreign earned income exclusion. How to file an amended 2011 tax return U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return agency reimbursed by foreign country. How to file an amended 2011 tax return   If you are a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government employee paid by a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return agency to perform services in a foreign country, your pay is from the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. How to file an amended 2011 tax return This is true even if the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return agency is reimbursed by the foreign government. How to file an amended 2011 tax return Employees of post exchanges, etc. How to file an amended 2011 tax return   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government, the earnings you receive are paid by the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government. How to file an amended 2011 tax return This is true whether they are paid from appropriated or nonappropriated funds. How to file an amended 2011 tax return These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. How to file an amended 2011 tax return Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. How to file an amended 2011 tax return Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. How to file an amended 2011 tax return In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizens or green card holders. How to file an amended 2011 tax return Consequently, if you are a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizen or green card holder, you will generally not be entitled to reduce your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return tax on your government pay. How to file an amended 2011 tax return If you are neither a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. How to file an amended 2011 tax return Review the treaty text carefully. How to file an amended 2011 tax return U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizens must always file Form 1040. How to file an amended 2011 tax return Non-U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. How to file an amended 2011 tax return If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. How to file an amended 2011 tax return Most income tax treaties contain an article providing relief from double taxation. How to file an amended 2011 tax return Many treaties contain special foreign tax credit rules for U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizens who are residents of a treaty country. How to file an amended 2011 tax return For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. How to file an amended 2011 tax return Allowances, Differentials, and Special Pay Most payments received by U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government civilian employees for working abroad, including pay differentials, are taxable. How to file an amended 2011 tax return However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. How to file an amended 2011 tax return The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. How to file an amended 2011 tax return Pay differentials. How to file an amended 2011 tax return   Pay differentials you receive as financial incentives for employment abroad are taxable. How to file an amended 2011 tax return Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. How to file an amended 2011 tax return   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. How to file an amended 2011 tax return The area does not have to be a qualified hazardous duty area as discussed in Publication 3. How to file an amended 2011 tax return Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. How to file an amended 2011 tax return Foreign areas allowances. How to file an amended 2011 tax return   Certain foreign areas allowances are tax free. How to file an amended 2011 tax return Your employer should not have included these allowances as wages on your Form W-2. How to file an amended 2011 tax return   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. How to file an amended 2011 tax return Title I, chapter 9, of the Foreign Service Act of 1980. How to file an amended 2011 tax return Section 4 of the Central Intelligence Agency Act of 1949, as amended. How to file an amended 2011 tax return Title II of the Overseas Differentials and Allowances Act. How to file an amended 2011 tax return Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. How to file an amended 2011 tax return These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. How to file an amended 2011 tax return Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. How to file an amended 2011 tax return Cost-of-living allowances. How to file an amended 2011 tax return   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. How to file an amended 2011 tax return The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. How to file an amended 2011 tax return Cost-of-living allowances are not included on your Form W-2. How to file an amended 2011 tax return Federal court employees. How to file an amended 2011 tax return   If you are a federal court employee, the preceding paragraph also applies to you. How to file an amended 2011 tax return The cost-of-living allowance must be granted by rules similar to regulations approved by the President. How to file an amended 2011 tax return American Institute in Taiwan. How to file an amended 2011 tax return   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government. How to file an amended 2011 tax return Federal reemployment payments after serving with an international organization. How to file an amended 2011 tax return   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. How to file an amended 2011 tax return These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. How to file an amended 2011 tax return Allowances or reimbursements for travel and transportation expenses. How to file an amended 2011 tax return   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. How to file an amended 2011 tax return Lodging furnished to a principal representative of the United States. How to file an amended 2011 tax return   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. How to file an amended 2011 tax return However, amounts paid by the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return government for your usual costs of operating and maintaining your household are taxable. How to file an amended 2011 tax return If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. How to file an amended 2011 tax return Peace Corps. How to file an amended 2011 tax return   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. How to file an amended 2011 tax return Taxable allowances. How to file an amended 2011 tax return   The following allowances must be included on your Form W-2 and reported on your return as wages. How to file an amended 2011 tax return If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. How to file an amended 2011 tax return The part of living allowances designated by the Director of the Peace Corps as basic compensation. How to file an amended 2011 tax return This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. How to file an amended 2011 tax return Leave allowances. How to file an amended 2011 tax return Readjustment allowances or “termination payments. How to file an amended 2011 tax return ” Taxable allowances are considered received by you when credited to your account. How to file an amended 2011 tax return Example. How to file an amended 2011 tax return Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. How to file an amended 2011 tax return Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. How to file an amended 2011 tax return Nontaxable allowances. How to file an amended 2011 tax return   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. How to file an amended 2011 tax return These allowances should not be included on your Form W-2. How to file an amended 2011 tax return These allowances are tax free whether paid by the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government or the foreign country in which you are stationed. How to file an amended 2011 tax return Other Income Other employment. How to file an amended 2011 tax return   If, in addition to your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. How to file an amended 2011 tax return In addition, if your spouse is a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. How to file an amended 2011 tax return For more information, see Publication 54. How to file an amended 2011 tax return The tax treaty rules relating to income from personal services generally apply to income from private employment. How to file an amended 2011 tax return As discussed above, the saving clause applies to you if you are a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). How to file an amended 2011 tax return Sale of personal property. How to file an amended 2011 tax return   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return dollars, the excess of the amount received in U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return dollars over the cost or other basis of the property is a capital gain. How to file an amended 2011 tax return Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. How to file an amended 2011 tax return However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. How to file an amended 2011 tax return Sale of your home. How to file an amended 2011 tax return   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. How to file an amended 2011 tax return Losses are not deductible. How to file an amended 2011 tax return   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). How to file an amended 2011 tax return Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. How to file an amended 2011 tax return   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. How to file an amended 2011 tax return   For detailed information on selling your home, see Publication 523. How to file an amended 2011 tax return Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. How to file an amended 2011 tax return Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. How to file an amended 2011 tax return These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. How to file an amended 2011 tax return Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. How to file an amended 2011 tax return Your tax home is not limited to the Embassy, consulate, or duty station. How to file an amended 2011 tax return It includes the entire city or general area in which your principal place of employment is located. How to file an amended 2011 tax return Traveling away from home. How to file an amended 2011 tax return   You are traveling away from home if you meet both of the following requirements. How to file an amended 2011 tax return Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. How to file an amended 2011 tax return You need to get sleep or rest to meet the demands of your work while away from home. How to file an amended 2011 tax return This requirement is not satisfied by merely napping in your car. How to file an amended 2011 tax return You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. How to file an amended 2011 tax return Temporary assignment. How to file an amended 2011 tax return   If your assignment or job away from your tax home is temporary, your tax home does not change. How to file an amended 2011 tax return You are considered to be away from home for the whole period, and your travel expenses are deductible. How to file an amended 2011 tax return Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. How to file an amended 2011 tax return   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. How to file an amended 2011 tax return An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. How to file an amended 2011 tax return   You must determine whether your assignment is temporary or indefinite when you start work. How to file an amended 2011 tax return If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. How to file an amended 2011 tax return Employment that is initially temporary may become indefinite due to changed circumstances. How to file an amended 2011 tax return A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. How to file an amended 2011 tax return Exception for federal crime investigations or prosecutions. How to file an amended 2011 tax return   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. How to file an amended 2011 tax return This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. How to file an amended 2011 tax return Limit on meals and entertainment. How to file an amended 2011 tax return   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. How to file an amended 2011 tax return However, the limit does not apply to expenses reimbursed under a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government expense allowance arrangement. How to file an amended 2011 tax return Individuals subject to hours of service limits. How to file an amended 2011 tax return   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. How to file an amended 2011 tax return   Individuals subject to the Department of Transportation's “hours of service” limits include the following. How to file an amended 2011 tax return Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. How to file an amended 2011 tax return Interstate truck operators and bus drivers who are under Department of Transportation regulations. How to file an amended 2011 tax return Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. How to file an amended 2011 tax return Certain merchant mariners who are under Coast Guard regulations. How to file an amended 2011 tax return Primary purpose of trip must be for business. How to file an amended 2011 tax return   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. How to file an amended 2011 tax return However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. How to file an amended 2011 tax return   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. How to file an amended 2011 tax return This applies even if you engage in business activities while there. How to file an amended 2011 tax return However, you can deduct any expenses while at your destination that are directly related to your business. How to file an amended 2011 tax return Expenses paid for others. How to file an amended 2011 tax return   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. How to file an amended 2011 tax return Home leave. How to file an amended 2011 tax return   The Foreign Service Act requires U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. How to file an amended 2011 tax return This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. How to file an amended 2011 tax return   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. How to file an amended 2011 tax return You must be able to verify these amounts in order to claim them. How to file an amended 2011 tax return Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. How to file an amended 2011 tax return More information. How to file an amended 2011 tax return   See chapter 1 of Publication 463 for more information on travel expenses. How to file an amended 2011 tax return Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. How to file an amended 2011 tax return Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. How to file an amended 2011 tax return They do not include expenses you have when traveling away from home overnight. How to file an amended 2011 tax return Those expenses are deductible as travel expenses and are discussed earlier. How to file an amended 2011 tax return Commuting. How to file an amended 2011 tax return   You cannot deduct your transportation costs of going between your home and your regular business location. How to file an amended 2011 tax return These costs are personal commuting expenses. How to file an amended 2011 tax return   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. How to file an amended 2011 tax return   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. How to file an amended 2011 tax return More information. How to file an amended 2011 tax return   For more information on transportation expenses, see chapter 4 of Publication 463. How to file an amended 2011 tax return Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. How to file an amended 2011 tax return Membership dues. How to file an amended 2011 tax return   You can deduct membership dues you pay to professional societies that relate to your business or profession. How to file an amended 2011 tax return Subscriptions. How to file an amended 2011 tax return   You can deduct subscriptions to professional publications that relate to your business or profession. How to file an amended 2011 tax return Educational expenses. How to file an amended 2011 tax return   Generally, educational expenses are considered to be personal expenses and are not deductible. How to file an amended 2011 tax return However, under some circumstances, educational expenses are deductible as business expenses. How to file an amended 2011 tax return   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. How to file an amended 2011 tax return   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. How to file an amended 2011 tax return These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. How to file an amended 2011 tax return   See Publication 970, Tax Benefits for Education, for more information on educational expenses. How to file an amended 2011 tax return    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. How to file an amended 2011 tax return However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. How to file an amended 2011 tax return These benefits are explained in Publication 970. How to file an amended 2011 tax return Foreign service representation expenses. How to file an amended 2011 tax return   If you are an employee of the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. How to file an amended 2011 tax return If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. How to file an amended 2011 tax return You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. How to file an amended 2011 tax return The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. How to file an amended 2011 tax return    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. How to file an amended 2011 tax return These rules are explained in Publication 463. How to file an amended 2011 tax return Representation expenses. How to file an amended 2011 tax return   These are expenses that further the interest of the United States abroad. How to file an amended 2011 tax return They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. How to file an amended 2011 tax return They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. How to file an amended 2011 tax return   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. How to file an amended 2011 tax return These regulations are available on the Internet at www. How to file an amended 2011 tax return state. How to file an amended 2011 tax return gov/m/a/als. How to file an amended 2011 tax return Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. How to file an amended 2011 tax return ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. How to file an amended 2011 tax return Impairment-related work expenses. How to file an amended 2011 tax return   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. How to file an amended 2011 tax return Attendant care includes a reader for a blind person and a helper for a person with a physical disability. How to file an amended 2011 tax return These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). How to file an amended 2011 tax return They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. How to file an amended 2011 tax return Loss on conversion of U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return dollars into foreign currency. How to file an amended 2011 tax return   The conversion of U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. How to file an amended 2011 tax return Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. How to file an amended 2011 tax return For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). How to file an amended 2011 tax return The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. How to file an amended 2011 tax return You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. How to file an amended 2011 tax return For each trip away from home, the dates you left and returned and the number of days spent on business. How to file an amended 2011 tax return The destination or area of your travel, described by the name of the city, town, or similar designation. How to file an amended 2011 tax return The business reason for your travel or the business benefit gained or expected to be gained from your travel. How to file an amended 2011 tax return How to record your expenses. How to file an amended 2011 tax return   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. How to file an amended 2011 tax return They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. How to file an amended 2011 tax return You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. How to file an amended 2011 tax return   Each expense should be recorded separately in your records. How to file an amended 2011 tax return However, some items can be totaled in reasonable categories. How to file an amended 2011 tax return You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. How to file an amended 2011 tax return You may record tips separately or with the cost of the service. How to file an amended 2011 tax return    Documentary evidence generally is required to support all lodging expenses while traveling away from home. How to file an amended 2011 tax return It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. How to file an amended 2011 tax return Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. How to file an amended 2011 tax return It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. How to file an amended 2011 tax return    A canceled check by itself does not prove a business cost. How to file an amended 2011 tax return You must have other evidence to show that the check was used for a business purpose. How to file an amended 2011 tax return Your records must be timely. How to file an amended 2011 tax return   Record the elements for the expense in your account book or other record at or near the time of the expense. How to file an amended 2011 tax return A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. How to file an amended 2011 tax return Confidential information. How to file an amended 2011 tax return   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. How to file an amended 2011 tax return However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. How to file an amended 2011 tax return How To Report Business Expenses As a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. How to file an amended 2011 tax return If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. How to file an amended 2011 tax return However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. How to file an amended 2011 tax return If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. How to file an amended 2011 tax return Form 2106 or Form 2106-EZ. How to file an amended 2011 tax return   You must complete Form 2106 or 2106-EZ to deduct your expenses. How to file an amended 2011 tax return Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. How to file an amended 2011 tax return Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). How to file an amended 2011 tax return Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. How to file an amended 2011 tax return Form 2106-EZ. How to file an amended 2011 tax return   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. How to file an amended 2011 tax return You can use Form 2106-EZ if you meet both of the following conditions. How to file an amended 2011 tax return You are not reimbursed by your employer for any expenses. How to file an amended 2011 tax return (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. How to file an amended 2011 tax return ) If you claim car expenses, you use the standard mileage rate. How to file an amended 2011 tax return Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. How to file an amended 2011 tax return Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. How to file an amended 2011 tax return However, you cannot deduct any expenses for which you received a tax-free allowance as a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government employee. How to file an amended 2011 tax return To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. How to file an amended 2011 tax return Closely related to the start of work. How to file an amended 2011 tax return   The move must be closely related, both in time and in place, to the start of work at the new location. How to file an amended 2011 tax return In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. How to file an amended 2011 tax return   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. How to file an amended 2011 tax return A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. How to file an amended 2011 tax return Distance test. How to file an amended 2011 tax return   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. How to file an amended 2011 tax return If you did not have an old job location, your new job location must be at least 50 miles from your former home. How to file an amended 2011 tax return Time test. How to file an amended 2011 tax return   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. How to file an amended 2011 tax return Deductible moving expenses. How to file an amended 2011 tax return   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). How to file an amended 2011 tax return    The cost of your meals is not a deductible moving expense. How to file an amended 2011 tax return   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. How to file an amended 2011 tax return For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. How to file an amended 2011 tax return Expenses must be reasonable. How to file an amended 2011 tax return   You can deduct only those expenses that are reasonable for the circumstances of your move. How to file an amended 2011 tax return For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. How to file an amended 2011 tax return Members of your household. How to file an amended 2011 tax return   A member of your household includes anyone who has both your former home and new home as his or her home. How to file an amended 2011 tax return It does not include a tenant or employee unless you can claim that person as a dependent. How to file an amended 2011 tax return Retirees. How to file an amended 2011 tax return   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. How to file an amended 2011 tax return You do not have to meet the time test described earlier. How to file an amended 2011 tax return Survivors. How to file an amended 2011 tax return   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. How to file an amended 2011 tax return The move must begin within 6 months after the decedent's death. How to file an amended 2011 tax return It must be from the decedent's former home outside the United States, and that home must also have been your home. How to file an amended 2011 tax return You do not have to meet the time test described earlier. How to file an amended 2011 tax return How to report moving expenses. How to file an amended 2011 tax return   Use Form 3903 to report your moving expenses and figure your allowable deduction. How to file an amended 2011 tax return Claim the deduction as an adjustment to income on Form 1040. How to file an amended 2011 tax return (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. How to file an amended 2011 tax return ) Reimbursements. How to file an amended 2011 tax return   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. How to file an amended 2011 tax return You also must include in gross income reimbursements paid to you under a nonaccountable plan. How to file an amended 2011 tax return However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. How to file an amended 2011 tax return Additional information. How to file an amended 2011 tax return   For additional information about moving expenses, see Publication 521. How to file an amended 2011 tax return Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. How to file an amended 2011 tax return Contributions. How to file an amended 2011 tax return   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. How to file an amended 2011 tax return You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. How to file an amended 2011 tax return For more information, see Publication 526, Charitable Contributions. How to file an amended 2011 tax return Real estate tax and home mortgage interest. How to file an amended 2011 tax return   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. How to file an amended 2011 tax return You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. How to file an amended 2011 tax return Example. How to file an amended 2011 tax return Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. How to file an amended 2011 tax return During the year, Adam used the allowance, with other funds, to provide a home for himself. How to file an amended 2011 tax return His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). How to file an amended 2011 tax return Adam did not have any other expenses related to providing a home for himself. How to file an amended 2011 tax return Adam must reduce his deductions for home mortgage interest and real estate taxes. How to file an amended 2011 tax return He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). How to file an amended 2011 tax return The result is 3/4. How to file an amended 2011 tax return Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). How to file an amended 2011 tax return He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. How to file an amended 2011 tax return Exception to the reduction. How to file an amended 2011 tax return   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. How to file an amended 2011 tax return Required statement. How to file an amended 2011 tax return   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. How to file an amended 2011 tax return The statement must contain all of the following information. How to file an amended 2011 tax return The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. How to file an amended 2011 tax return The amount of otherwise deductible expenses attributable to each type of tax-free income. How to file an amended 2011 tax return The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. How to file an amended 2011 tax return An explanation of how you determined the amounts not directly attributable to each type of tax-free income. How to file an amended 2011 tax return   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. How to file an amended 2011 tax return Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return income tax liability or deduct them as an itemized deduction when figuring your taxable income. How to file an amended 2011 tax return Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. How to file an amended 2011 tax return Foreign tax credit. How to file an amended 2011 tax return   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. How to file an amended 2011 tax return If you choose to figure a credit against your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return income tax return. How to file an amended 2011 tax return    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. How to file an amended 2011 tax return If all your foreign income is exempt from U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return tax, you will not be able to claim a foreign tax credit. How to file an amended 2011 tax return   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. How to file an amended 2011 tax return Exemption from limit. How to file an amended 2011 tax return   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. How to file an amended 2011 tax return Your only foreign income is passive income, such as interest, dividends, and royalties. How to file an amended 2011 tax return The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). How to file an amended 2011 tax return The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. How to file an amended 2011 tax return If you make the election, you can claim a foreign tax credit without filing Form 1116. How to file an amended 2011 tax return However, you cannot carry back or carry over any unused foreign tax to or from this year. How to file an amended 2011 tax return See the instructions for the appropriate line in the Tax and Credits section of Form 1040. How to file an amended 2011 tax return Foreign tax deduction. How to file an amended 2011 tax return   If you choose to deduct all foreign income taxes on your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return income tax return, itemize the deduction on Schedule A (Form 1040). How to file an amended 2011 tax return You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. How to file an amended 2011 tax return Example. How to file an amended 2011 tax return Dennis and Christina are married and live and work in Country X. How to file an amended 2011 tax return Dennis works for the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government and Christina is employed by a private company. How to file an amended 2011 tax return They pay income tax to Country X on Christina's income only. How to file an amended 2011 tax return Dennis and Christina file a joint tax return and exclude all of Christina's income. How to file an amended 2011 tax return They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. How to file an amended 2011 tax return Deduction for other foreign taxes. How to file an amended 2011 tax return   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. How to file an amended 2011 tax return You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. How to file an amended 2011 tax return   You can deduct real property taxes you pay that are imposed on you by a foreign country. How to file an amended 2011 tax return You take this deduction on Schedule A (Form 1040). How to file an amended 2011 tax return You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. How to file an amended 2011 tax return More information. How to file an amended 2011 tax return   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. How to file an amended 2011 tax return Local (Foreign) Tax Return As a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. How to file an amended 2011 tax return Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. How to file an amended 2011 tax return Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. How to file an amended 2011 tax return Review the treaty text carefully to determine whether your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Government remuneration is taxable in the host country. How to file an amended 2011 tax return You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). How to file an amended 2011 tax return If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. How to file an amended 2011 tax return If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. How to file an amended 2011 tax return Most income tax treaties contain an article providing relief from double taxation. How to file an amended 2011 tax return Many treaties contain special foreign tax credit rules for U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizens who are residents of a treaty country. How to file an amended 2011 tax return For more information about the foreign tax credit, see Foreign Taxes, earlier. How to file an amended 2011 tax return Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. How to file an amended 2011 tax return For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. How to file an amended 2011 tax return Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. How to file an amended 2011 tax return Check with the appropriate U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Embassy for more information. How to file an amended 2011 tax return Double Withholding If your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return income tax return on this income. How to file an amended 2011 tax return Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. How to file an amended 2011 tax return How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. How to file an amended 2011 tax return By selecting the method that is best for you, you will have quick and easy access to tax help. How to file an amended 2011 tax return Free help with your tax return. How to file an amended 2011 tax return   Free help in preparing your return is available nationwide from IRS-certified volunteers. How to file an amended 2011 tax return The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. How to file an amended 2011 tax return The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. How to file an amended 2011 tax return Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. How to file an amended 2011 tax return Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. How to file an amended 2011 tax return To find the nearest VITA or TCE site, visit IRS. How to file an amended 2011 tax return gov or call 1-800-906-9887 or 1-800-829-1040. How to file an amended 2011 tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. How to file an amended 2011 tax return To find the nearest AARP Tax-Aide site, visit AARP's website at www. How to file an amended 2011 tax return aarp. How to file an amended 2011 tax return org/money/taxaide or call 1-888-227-7669. How to file an amended 2011 tax return   For more information on these programs, go to IRS. How to file an amended 2011 tax return gov and enter “VITA” in the search box. How to file an amended 2011 tax return Internet. How to file an amended 2011 tax return You can access the IRS website at IRS. How to file an amended 2011 tax return gov 24 hours a day, 7 days a week to: E-file your return. How to file an amended 2011 tax return Find out about commercial tax preparation and e-file services available free to eligible taxpayers. How to file an amended 2011 tax return Check the status of your 2012 refund. How to file an amended 2011 tax return Go to IRS. How to file an amended 2011 tax return gov and click on Where’s My Refund. How to file an amended 2011 tax return Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. How to file an amended 2011 tax return If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). How to file an amended 2011 tax return Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. How to file an amended 2011 tax return Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. How to file an amended 2011 tax return Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. How to file an amended 2011 tax return So in a change from previous filing seasons, you won't get an estimated refund date right away. How to file an amended 2011 tax return Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. How to file an amended 2011 tax return You can obtain a free transcript online at IRS. How to file an amended 2011 tax return gov by clicking on Order a Return or Account Transcript under “Tools. How to file an amended 2011 tax return ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. How to file an amended 2011 tax return You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. How to file an amended 2011 tax return Download forms, including talking tax forms, instructions, and publications. How to file an amended 2011 tax return Order IRS products. How to file an amended 2011 tax return Research your tax questions. How to file an amended 2011 tax return Search publications by topic or keyword. How to file an amended 2011 tax return Use the Internal Revenue Code, regulations, or other official guidance. How to file an amended 2011 tax return View Internal Revenue Bulletins (IRBs) published in the last few years. How to file an amended 2011 tax return Figure your withholding allowances using the IRS Withholding Calculator at www. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov/individuals. How to file an amended 2011 tax return Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. How to file an amended 2011 tax return gov by typing Alternative Minimum Tax Assistant in the search box. How to file an amended 2011 tax return Sign up to receive local and national tax news by email. How to file an amended 2011 tax return Get information on starting and operating a small business. How to file an amended 2011 tax return Phone. How to file an amended 2011 tax return Many services are available by phone. How to file an amended 2011 tax return   Ordering forms, instructions, and publications. How to file an amended 2011 tax return Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). How to file an amended 2011 tax return You should receive your order within 10 days. How to file an amended 2011 tax return Asking tax questions. How to file an amended 2011 tax return Call the IRS with your tax questions at 1-800-829-1040. How to file an amended 2011 tax return Solving problems. How to file an amended 2011 tax return You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). How to file an amended 2011 tax return An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. How to file an amended 2011 tax return Call your local Taxpayer Assistance Center for an appointment. How to file an amended 2011 tax return To find the number, go to www. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. How to file an amended 2011 tax return TTY/TDD equipment. How to file an amended 2011 tax return If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. How to file an amended 2011 tax return The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. How to file an amended 2011 tax return These individuals can also access the IRS through relay services such as the Federal Relay Service at www. How to file an amended 2011 tax return gsa. How to file an amended 2011 tax return gov/fedrelay. How to file an amended 2011 tax return TeleTax topics. How to file an amended 2011 tax return Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. How to file an amended 2011 tax return Checking the status of your 2012 refund. How to file an amended 2011 tax return To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). How to file an amended 2011 tax return Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. How to file an amended 2011 tax return If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). How to file an amended 2011 tax return Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. How to file an amended 2011 tax return Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. How to file an amended 2011 tax return Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. How to file an amended 2011 tax return Outside the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return If you are outside the United States, taxpayer assistance is available at the following U. How to file an amended 2011 tax return S Embassies or consulate. How to file an amended 2011 tax return Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. How to file an amended 2011 tax return If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). How to file an amended 2011 tax return If you are in a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Virgin Islands) and have a tax question, you can call 1-800-829-1040. How to file an amended 2011 tax return Evaluating the quality of our telephone services. How to file an amended 2011 tax return To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. How to file an amended 2011 tax return One method is for a second IRS representative to listen in on or record random telephone calls. How to file an amended 2011 tax return Another is to ask some callers to complete a short survey at the end of the call. How to file an amended 2011 tax return Walk-in. How to file an amended 2011 tax return Some products and services are available on a walk-in basis. How to file an amended 2011 tax return   Products. How to file an amended 2011 tax return You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. How to file an amended 2011 tax return Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. How to file an amended 2011 tax return Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. How to file an amended 2011 tax return Services. How to file an amended 2011 tax return You can walk in to your local TAC most business days for personal, face-to-face tax help. How to file an amended 2011 tax return An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. How to file an amended 2011 tax return If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. How to file an amended 2011 tax return No appointment is necessary—just walk in. How to file an amended 2011 tax return Before visiting, check www. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov/localcontacts for hours of operation and services provided. How to file an amended 2011 tax return If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. How to file an amended 2011 tax return You can leave a message and a representative will call you back within 2 business days. How to file an amended 2011 tax return All other issues will be handled without an appointment. How to file an amended 2011 tax return To call your local TAC, go to  www. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. How to file an amended 2011 tax return Outside the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Embassies and consulates. How to file an amended 2011 tax return Mail. How to file an amended 2011 tax return You can send your order for forms, instructions, and publications to the address below. How to file an amended 2011 tax return You should receive a response within 10 days after your request is received. How to file an amended 2011 tax return  Internal Revenue Service 1201 N. How to file an amended 2011 tax return Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return If you are outside the United States, you can get tax assistance by writing to the address below. How to file an amended 2011 tax return  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. How to file an amended 2011 tax return   The Taxpayer Advocate Service (TAS) is your voice at the IRS. How to file an amended 2011 tax return Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. How to file an amended 2011 tax return TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. How to file an amended 2011 tax return Remember, the worst thing you can do is nothing at all. How to file an amended 2011 tax return   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. How to file an amended 2011 tax return You face (or your business is facing) an immediate threat of adverse action. How to file an amended 2011 tax return You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. How to file an amended 2011 tax return   If you qualify for help, they will do everything they can to get your problem resolved. How to file an amended 2011 tax return You will be assigned to one advocate who will be with you at every turn. How to file an amended 2011 tax return TAS has offices in every state, the District of Columbia, and Puerto Rico. How to file an amended 2011 tax return Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. How to file an amended 2011 tax return And its services are always free. How to file an amended 2011 tax return   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. How to file an amended 2011 tax return The TAS tax toolkit at www. How to file an amended 2011 tax return TaxpayerAdvocate. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov can help you understand these rights. How to file an amended 2011 tax return   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov/advocate. How to file an amended 2011 tax return You can also call the toll-free number at 1-877-777-4778. How to file an amended 2011 tax return Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. How to file an amended 2011 tax return These individuals can also access the IRS through relay services such as the Federal Relay Service at www. How to file an amended 2011 tax return gsa. How to file an amended 2011 tax return gov/fedrelay. How to file an amended 2011 tax return   TAS also handles large-scale or systemic problems that affect many taxpayers. How to file an amended 2011 tax return If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov/advocate. How to file an amended 2011 tax return    Outside the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. How to file an amended 2011 tax return You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. How to file an amended 2011 tax return R. How to file an amended 2011 tax return 00968-8000 Low Income Taxpayer Clinics (LITCs). How to file an amended 2011 tax return   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. How to file an amended 2011 tax return Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. How to file an amended 2011 tax return These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. How to file an amended 2011 tax return Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. How to file an amended 2011 tax return For more information and to find a clinic near you, see the LITC page on www. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. How to file an amended 2011 tax return This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. How to file an amended 2011 tax return Free tax services. How to file an amended 2011 tax return   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. How to file an amended 2011 tax return Learn about free tax information from the IRS, including publications, services, and education and assistance programs. How to file an amended 2011 tax return The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. How to file an amended 2011 tax return The majority of the information and services listed in this publication are available to you free of charge. How to file an amended 2011 tax return If there is a fee associated with a resource or service, it is listed in the publication. How to file an amended 2011 tax return   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. How to file an amended 2011 tax return DVD for tax products. How to file an amended 2011 tax return You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. How to file an amended 2011 tax return Prior-year forms, instructions, and publications. How to file an amended 2011 tax return Tax Map: an electronic research tool and finding aid. How to file an amended 2011 tax return Tax law frequently asked questions. How to file an amended 2011 tax return Tax Topics from the IRS telephone response system. How to file an amended 2011 tax return Internal Revenue Code—Title 26 of the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Code. How to file an amended 2011 tax return Links to other Internet-based tax research materials. How to file an amended 2011 tax return Fill-in, print, and save features for most tax forms. How to file an amended 2011 tax return Internal Revenue Bulletins. How to file an amended 2011 tax return Toll-free and email technical support. How to file an amended 2011 tax return Two releases during the year. How to file an amended 2011 tax return  – The first release will ship the beginning of January 2013. How to file an amended 2011 tax return  – The final release will ship the beginning of March 2013. How to file an amended 2011 tax return Purchase the DVD from National Technical Information Service (NTIS) at www. How to file an amended 2011 tax return irs. How to file an amended 2011 tax return gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). How to file an amended 2011 tax return Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in South Dakota

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Aberdeen  115 Fourth Ave. S.E.
Aberdeen, SD 57401 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:00 a.m. - 12:00 noon)

 

Services Provided

(605) 226-7273 
Rapid City  515 Ninth St.
Rapid City, SD 57701 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(605) 348-2006 
Sioux Falls  1720 S. Southeastern Ave.
Sioux Falls, SD 57103 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(605) 330-4539 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If  face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (605) 377-1600 in Aberdeen or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see  Tax Topic 104

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
115 4th Ave. SE
Aberdeen, SD 57401

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The How To File An Amended 2011 Tax Return

How to file an amended 2011 tax return 5. How to file an amended 2011 tax return   Business Income Table of Contents Introduction Kinds of IncomeBartering for Property or Services Real Estate Rents Personal Property Rents Interest and Dividend Income Canceled Debt Other Income Items That Are Not IncomeAmount you can exclude. How to file an amended 2011 tax return Short-term lease. How to file an amended 2011 tax return Retail space. How to file an amended 2011 tax return Qualified long-term real property. How to file an amended 2011 tax return Guidelines for Selected Occupations Accounting for Your Income Introduction This chapter primarily explains business income and how to account for it on your tax return, what items are not considered income, and gives guidelines for selected occupations. How to file an amended 2011 tax return If there is a connection between any income you receive and your business, the income is business income. How to file an amended 2011 tax return A connection exists if it is clear that the payment of income would not have been made if you did not have the business. How to file an amended 2011 tax return You can have business income even if you are not involved in the activity on a regular full-time basis. How to file an amended 2011 tax return Income from work you do on the side in addition to your regular job can be business income. How to file an amended 2011 tax return You report most business income, such as income from selling your products or services, on Schedule C or C-EZ. How to file an amended 2011 tax return But you report the income from the sale of business assets, such as land and office buildings, on other forms instead of Schedule C or C-EZ. How to file an amended 2011 tax return For information on selling business assets, see chapter 3. How to file an amended 2011 tax return Nonemployee compensation. How to file an amended 2011 tax return Business income includes amounts you received in your business that were properly shown on Forms 1099-MISC. How to file an amended 2011 tax return This includes amounts reported as nonemployee compensation in box 7 of the form. How to file an amended 2011 tax return You can find more information in the instructions on the back of the Form 1099-MISC you received. How to file an amended 2011 tax return Kinds of Income You must report on your tax return all income you receive from your business unless it is excluded by law. How to file an amended 2011 tax return In most cases, your business income will be in the form of cash, checks, and credit card charges. How to file an amended 2011 tax return But business income can be in other forms, such as property or services. How to file an amended 2011 tax return These and other types of income are explained next. How to file an amended 2011 tax return If you are a U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return citizen who has business income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt from tax under U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return law. How to file an amended 2011 tax return If you live outside the United States, you may be able to exclude part or all of your foreign-source business income. How to file an amended 2011 tax return For details, see Publication 54, Tax Guide for U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Citizens and Resident Aliens Abroad. How to file an amended 2011 tax return Bartering for Property or Services Bartering is an exchange of property or services. How to file an amended 2011 tax return You must include in your gross receipts, at the time received, the fair market value of property or services you receive in exchange for something else. How to file an amended 2011 tax return If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as the fair market value unless the value can be shown to be otherwise. How to file an amended 2011 tax return Example 1. How to file an amended 2011 tax return You are a self-employed lawyer. How to file an amended 2011 tax return You perform legal services for a client, a small corporation. How to file an amended 2011 tax return In payment for your services, you receive shares of stock in the corporation. How to file an amended 2011 tax return You must include the fair market value of the shares in income. How to file an amended 2011 tax return Example 2. How to file an amended 2011 tax return You are an artist and create a work of art to compensate your landlord for the rent-free use of your apartment. How to file an amended 2011 tax return You must include the fair rental value of the apartment in your gross receipts. How to file an amended 2011 tax return Your landlord must include the fair market value of the work of art in his or her rental income. How to file an amended 2011 tax return Example 3. How to file an amended 2011 tax return You are a self-employed accountant. How to file an amended 2011 tax return Both you and a house painter are members of a barter club, an organization that each year gives its members a directory of members and the services each member provides. How to file an amended 2011 tax return Members get in touch with other members directly and bargain for the value of the services to be performed. How to file an amended 2011 tax return In return for accounting services you provided for the house painter's business, the house painter painted your home. How to file an amended 2011 tax return You must include in gross receipts the fair market value of the services you received from the house painter. How to file an amended 2011 tax return The house painter must include the fair market value of your accounting services in his or her gross receipts. How to file an amended 2011 tax return Example 4. How to file an amended 2011 tax return You are a member of a barter club that uses credit units to credit or debit members' accounts for goods or services provided or received. How to file an amended 2011 tax return As soon as units are credited to your account, you can use them to buy goods or services or sell or transfer the units to other members. How to file an amended 2011 tax return You must include the value of credit units you received in your gross receipts for the tax year in which the units are credited to your account. How to file an amended 2011 tax return The dollar value of units received for services by an employee of the club, who can use the units in the same manner as other members, must be included in the employee's gross income for the tax year in which received. How to file an amended 2011 tax return It is wages subject to social security and Medicare taxes (FICA), federal unemployment taxes (FUTA), and income tax withholding. How to file an amended 2011 tax return See Publication 15 (Circular E), Employer's Tax Guide. How to file an amended 2011 tax return Example 5. How to file an amended 2011 tax return You operate a plumbing business and use the cash method of accounting. How to file an amended 2011 tax return You join a barter club and agree to provide plumbing services to any member for a specified number of hours. How to file an amended 2011 tax return Each member has access to a directory that lists the members of the club and the services available. How to file an amended 2011 tax return Members contact each other directly and request services to be performed. How to file an amended 2011 tax return You are not required to provide services unless requested by another member, but you can use as many of the offered services as you wish without paying a fee. How to file an amended 2011 tax return You must include the fair market value of any services you receive from club members in your gross receipts when you receive them even if you have not provided any services to club members. How to file an amended 2011 tax return Information returns. How to file an amended 2011 tax return   If you are involved in a bartering transaction, you may have to file either of the following forms. How to file an amended 2011 tax return Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. How to file an amended 2011 tax return Form 1099-MISC, Miscellaneous Income. How to file an amended 2011 tax return For information about these forms, see the General Instructions for Certain Information Returns. How to file an amended 2011 tax return Real Estate Rents If you are a real estate dealer who receives income from renting real property or an owner of a hotel, motel, etc. How to file an amended 2011 tax return , who provides services (maid services, etc. How to file an amended 2011 tax return ) for guests, report the rental income and expenses on Schedule C or C-EZ. How to file an amended 2011 tax return If you are not a real estate dealer or the kind of owner described in the preceding sentence, report the rental income and expenses on Schedule E. How to file an amended 2011 tax return For more information, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes). How to file an amended 2011 tax return Real estate dealer. How to file an amended 2011 tax return   You are a real estate dealer if you are engaged in the business of selling real estate to customers with the purpose of making a profit from those sales. How to file an amended 2011 tax return Rent you receive from real estate held for sale to customers is subject to SE tax. How to file an amended 2011 tax return However, rent you receive from real estate held for speculation or investment is not subject to SE tax. How to file an amended 2011 tax return Trailer park owner. How to file an amended 2011 tax return   Rental income from a trailer park is subject to SE tax if you are a self-employed trailer park owner who provides trailer lots and facilities and substantial services for the convenience of your tenants. How to file an amended 2011 tax return    You generally are considered to provide substantial services for tenants if they are primarily for the tenants' convenience and normally are not provided to maintain the lots in a condition for occupancy. How to file an amended 2011 tax return Services are substantial if the compensation for the services makes up a material part of the tenants' rental payments. How to file an amended 2011 tax return   Examples of services that are not normally provided for the tenants' convenience include supervising and maintaining a recreational hall provided by the park, distributing a monthly newsletter to tenants, operating a laundry facility, and helping tenants buy or sell their trailers. How to file an amended 2011 tax return   Examples of services that are normally provided to maintain the lots in a condition for tenant occupancy include city sewerage, electrical connections, and roadways. How to file an amended 2011 tax return Hotels, boarding houses, and apartments. How to file an amended 2011 tax return   Rental income you receive for the use or occupancy of hotels, boarding houses, or apartment houses is subject to SE tax if you provide services for the occupants. How to file an amended 2011 tax return   Generally, you are considered to provide services for the occupants if the services are primarily for their convenience and are not services normally provided with the rental of rooms for occupancy only. How to file an amended 2011 tax return An example of a service that is not normally provided for the convenience of the occupants is maid service. How to file an amended 2011 tax return However, providing heat and light, cleaning stairways and lobbies, and collecting trash are services normally provided for the occupants' convenience. How to file an amended 2011 tax return Prepaid rent. How to file an amended 2011 tax return   Advance payments received under a lease that does not put any restriction on their use or enjoyment are income in the year you receive them. How to file an amended 2011 tax return This is true no matter what accounting method or period you use. How to file an amended 2011 tax return Lease bonus. How to file an amended 2011 tax return   A bonus you receive from a lessee for granting a lease is an addition to the rent. How to file an amended 2011 tax return Include it in your gross receipts in the year received. How to file an amended 2011 tax return Lease cancellation payments. How to file an amended 2011 tax return   Report payments you receive from your lessee for canceling a lease in your gross receipts in the year received. How to file an amended 2011 tax return Payments to third parties. How to file an amended 2011 tax return   If your lessee makes payments to someone else under an agreement to pay your debts or obligations, include the payments in your gross receipts when the lessee makes the payments. How to file an amended 2011 tax return A common example of this kind of income is a lessee's payment of your property taxes on leased real property. How to file an amended 2011 tax return Settlement payments. How to file an amended 2011 tax return   Payments you receive in settlement of a lessee's obligation to restore the leased property to its original condition are income in the amount that the payments exceed the adjusted basis of the leasehold improvements destroyed, damaged, removed, or disconnected by the lessee. How to file an amended 2011 tax return Personal Property Rents If you are in the business of renting personal property (equipment, vehicles, formal wear, etc. How to file an amended 2011 tax return ), include the rental amount you receive in your gross receipts on Schedule C or C-EZ. How to file an amended 2011 tax return Prepaid rent and other payments described in the preceding Real Estate Rents discussion can also be received for renting personal property. How to file an amended 2011 tax return If you receive any of those payments, include them in your gross receipts as explained in that discussion. How to file an amended 2011 tax return Interest and Dividend Income Interest and dividends may be considered business income. How to file an amended 2011 tax return Interest. How to file an amended 2011 tax return   Interest received on notes receivable that you have accepted in the ordinary course of business is business income. How to file an amended 2011 tax return Interest received on loans is business income if you are in the business of lending money. How to file an amended 2011 tax return Uncollectible loans. How to file an amended 2011 tax return   If a loan payable to you becomes uncollectible during the tax year and you use an accrual method of accounting, you must include in gross income interest accrued up to the time the loan became uncollectible. How to file an amended 2011 tax return If the accrued interest later becomes uncollectible, you may be able to take a bad debt deduction. How to file an amended 2011 tax return See Bad Debts in chapter 8. How to file an amended 2011 tax return Unstated interest. How to file an amended 2011 tax return   If little or no interest is charged on an installment sale, you may have to treat a part of each payment as unstated interest. How to file an amended 2011 tax return See Unstated Interest and Original Issue Discount (OID) in Publication 537, Installment Sales. How to file an amended 2011 tax return Dividends. How to file an amended 2011 tax return   Generally, dividends are business income to dealers in securities. How to file an amended 2011 tax return For most sole proprietors and statutory employees, however, dividends are nonbusiness income. How to file an amended 2011 tax return If you hold stock as a personal investment separately from your business activity, the dividends from the stock are nonbusiness income. How to file an amended 2011 tax return   If you receive dividends from business insurance premiums you deducted in an earlier year, you must report all or part of the dividend as business income on your return. How to file an amended 2011 tax return To find out how much you have to report, see   Recovery of items previously deducted under Other Income, later. How to file an amended 2011 tax return Canceled Debt The following explains the general rule for including canceled debt in income and the exceptions to the general rule. How to file an amended 2011 tax return General Rule Generally, if your debt is canceled or forgiven, other than as a gift or bequest to you, you must include the canceled amount in your gross income for tax purposes. How to file an amended 2011 tax return Report the canceled amount on line 6 of Schedule C if you incurred the debt in your business. How to file an amended 2011 tax return If the debt is a nonbusiness debt, report the canceled amount on line 21 of Form 1040. How to file an amended 2011 tax return Exceptions The following discussion covers some exceptions to the general rule for canceled debt. How to file an amended 2011 tax return Price reduced after purchase. How to file an amended 2011 tax return   If you owe a debt to the seller for property you bought and the seller reduces the amount you owe, you generally do not have income from the reduction. How to file an amended 2011 tax return Unless you are bankrupt or insolvent, treat the amount of the reduction as a purchase price adjustment and reduce your basis in the property. How to file an amended 2011 tax return Deductible debt. How to file an amended 2011 tax return   You do not realize income from a canceled debt to the extent the payment of the debt would have led to a deduction. How to file an amended 2011 tax return Example. How to file an amended 2011 tax return You get accounting services for your business on credit. How to file an amended 2011 tax return Later, you have trouble paying your business debts, but you are not bankrupt or insolvent. How to file an amended 2011 tax return Your accountant forgives part of the amount you owe for the accounting services. How to file an amended 2011 tax return How you treat the canceled debt depends on your method of accounting. How to file an amended 2011 tax return Cash method — You do not include the canceled debt in income because payment of the debt would have been deductible as a business expense. How to file an amended 2011 tax return Accrual method — You include the canceled debt in income because the expense was deductible when you incurred the debt. How to file an amended 2011 tax return   For information on the cash and accrual methods of accounting, see chapter 2. How to file an amended 2011 tax return Exclusions Do not include canceled debt in income in the following situations. How to file an amended 2011 tax return However, you may be required to file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. How to file an amended 2011 tax return For more information, see Form 982. How to file an amended 2011 tax return The cancellation takes place in a bankruptcy case under title 11 of the U. How to file an amended 2011 tax return S. How to file an amended 2011 tax return Code (relating to bankruptcy). How to file an amended 2011 tax return See Publication 908, Bankruptcy Tax Guide. How to file an amended 2011 tax return The cancellation takes place when you are insolvent. How to file an amended 2011 tax return You can exclude the canceled debt to the extent you are insolvent. How to file an amended 2011 tax return See Publication 908. How to file an amended 2011 tax return The canceled debt is a qualified farm debt owed to a qualified person. How to file an amended 2011 tax return See chapter 3 in Publication 225, Farmer's Tax Guide. How to file an amended 2011 tax return The canceled debt is a qualified real property business debt. How to file an amended 2011 tax return This situation is explained later. How to file an amended 2011 tax return The canceled debt is qualified principal residence indebtedness which is discharged after 2006. How to file an amended 2011 tax return See Form 982. How to file an amended 2011 tax return If a canceled debt is excluded from income because it takes place in a bankruptcy case, the exclusions in situations 2 through 5 do not apply. How to file an amended 2011 tax return If it takes place when you are insolvent, the exclusions in situations 3 and 4 do not apply to the extent you are insolvent. How to file an amended 2011 tax return Debt. How to file an amended 2011 tax return   For purposes of this discussion, debt includes any debt for which you are liable or which attaches to property you hold. How to file an amended 2011 tax return Qualified real property business debt. How to file an amended 2011 tax return   You can elect to exclude (up to certain limits) the cancellation of qualified real property business debt. How to file an amended 2011 tax return If you make the election, you must reduce the basis of your depreciable real property by the amount excluded. How to file an amended 2011 tax return Make this reduction at the beginning of your tax year following the tax year in which the cancellation occurs. How to file an amended 2011 tax return However, if you dispose of the property before that time, you must reduce its basis immediately before the disposition. How to file an amended 2011 tax return Cancellation of qualified real property business debt. How to file an amended 2011 tax return   Qualified real property business debt is debt (other than qualified farm debt) that meets all the following conditions. How to file an amended 2011 tax return It was incurred or assumed in connection with real property used in a trade or business. How to file an amended 2011 tax return It was secured by such real property. How to file an amended 2011 tax return It was incurred or assumed at either of the following times. How to file an amended 2011 tax return Before January 1, 1993. How to file an amended 2011 tax return After December 31, 1992, if incurred or assumed to acquire, construct, or substantially improve the real property. How to file an amended 2011 tax return It is debt to which you choose to apply these rules. How to file an amended 2011 tax return   Qualified real property business debt includes refinancing of debt described in (3) earlier, but only to the extent it does not exceed the debt being refinanced. How to file an amended 2011 tax return   You cannot exclude more than either of the following amounts. How to file an amended 2011 tax return The excess (if any) of: The outstanding principal of qualified real property business debt (immediately before the cancellation), over The fair market value (immediately before the cancellation) of the business real property that is security for the debt, reduced by the outstanding principal amount of any other qualified real property business debt secured by this property immediately before the cancellation. How to file an amended 2011 tax return The total adjusted bases of depreciable real property held by you immediately before the cancellation. How to file an amended 2011 tax return These adjusted bases are determined after any basis reduction due to a cancellation in bankruptcy, insolvency, or of qualified farm debt. How to file an amended 2011 tax return Do not take into account depreciable real property acquired in contemplation of the cancellation. How to file an amended 2011 tax return Election. How to file an amended 2011 tax return   To make this election, complete Form 982 and attach it to your income tax return for the tax year in which the cancellation occurs. How to file an amended 2011 tax return You must file your return by the due date (including extensions). How to file an amended 2011 tax return If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). How to file an amended 2011 tax return For more information, see When To File in the form instructions. How to file an amended 2011 tax return Other Income The following discussion explains how to treat other types of business income you may receive. How to file an amended 2011 tax return Restricted property. How to file an amended 2011 tax return   Restricted property is property that has certain restrictions that affect its value. How to file an amended 2011 tax return If you receive restricted stock or other property for services performed, the fair market value of the property in excess of your cost is included in your income on Schedule C or C-EZ when the restriction is lifted. How to file an amended 2011 tax return However, you can choose to be taxed in the year you receive the property. How to file an amended 2011 tax return For more information on including restricted property in income, see Publication 525, Taxable and Nontaxable Income. How to file an amended 2011 tax return Gains and losses. How to file an amended 2011 tax return   Do not report on Schedule C or C-EZ a gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. How to file an amended 2011 tax return Instead, you must report these gains and losses on other forms. How to file an amended 2011 tax return For more information, see chapter 3. How to file an amended 2011 tax return Promissory notes. How to file an amended 2011 tax return   Report promissory notes and other evidences of debt issued to you in a sale or exchange of property that is stock in trade or held primarily for sale to customers on Schedule C or C-EZ. How to file an amended 2011 tax return In general, you report them at their stated principal amount (minus any unstated interest) when you receive them. How to file an amended 2011 tax return Lost income payments. How to file an amended 2011 tax return   If you reduce or stop your business activities, report on Schedule C or C-EZ any payment you receive for the lost income of your business from insurance or other sources. How to file an amended 2011 tax return Report it on Schedule C or C-EZ even if your business is inactive when you receive the payment. How to file an amended 2011 tax return Damages. How to file an amended 2011 tax return   You must include in gross income compensation you receive during the tax year as a result of any of the following injuries connected with your business. How to file an amended 2011 tax return Patent infringement. How to file an amended 2011 tax return Breach of contract or fiduciary duty. How to file an amended 2011 tax return Antitrust injury. How to file an amended 2011 tax return Economic injury. How to file an amended 2011 tax return   You may be entitled to a deduction against the income if it compensates you for actual economic injury. How to file an amended 2011 tax return Your deduction is the smaller of the following amounts. How to file an amended 2011 tax return The amount you receive or accrue for damages in the tax year reduced by the amount you pay or incur in the tax year to recover that amount. How to file an amended 2011 tax return Your loss from the injury that you have not yet deducted. How to file an amended 2011 tax return Punitive damages. How to file an amended 2011 tax return   You must also include punitive damages in income. How to file an amended 2011 tax return Kickbacks. How to file an amended 2011 tax return   If you receive any kickbacks, include them in your income on Schedule C or C-EZ. How to file an amended 2011 tax return However, do not include them if you properly treat them as a reduction of a related expense item, a capital expenditure, or cost of goods sold. How to file an amended 2011 tax return Recovery of items previously deducted. How to file an amended 2011 tax return   If you recover a bad debt or any other item deducted in a previous year, include the recovery in income on Schedule C or C-EZ. How to file an amended 2011 tax return However, if all or part of the deduction in earlier years did not reduce your tax, you can exclude the part that did not reduce your tax. How to file an amended 2011 tax return If you exclude part of the recovery from income, you must include with your return a computation showing how you figured the exclusion. How to file an amended 2011 tax return Example. How to file an amended 2011 tax return Joe Smith, a sole proprietor, had gross income of $8,000, a bad debt deduction of $300, and other allowable deductions of $7,700. How to file an amended 2011 tax return He also had 2 personal exemptions for a total of $7,800. How to file an amended 2011 tax return He would not pay income tax even if he did not deduct the bad debt. How to file an amended 2011 tax return Therefore, he will not report as income any part of the $300 he may recover in any future year. How to file an amended 2011 tax return Exception for depreciation. How to file an amended 2011 tax return   This rule does not apply to depreciation. How to file an amended 2011 tax return You recover depreciation using the rules explained next. How to file an amended 2011 tax return Recapture of depreciation. How to file an amended 2011 tax return   In the following situations, you have to recapture the depreciation deduction. How to file an amended 2011 tax return This means you include in income part or all of the depreciation you deducted in previous years. How to file an amended 2011 tax return Listed property. How to file an amended 2011 tax return   If your business use of listed property (explained in chapter 8 under Depreciation ) falls to 50% or less in a tax year after the tax year you placed the property in service, you may have to recapture part of the depreciation deduction. How to file an amended 2011 tax return You do this by including in income on Schedule C part of the depreciation you deducted in previous years. How to file an amended 2011 tax return Use Part IV of Form 4797, Sales of Business Property, to figure the amount to include on Schedule C. How to file an amended 2011 tax return For more information, see What is the Business-Use Requirement? in chapter 5 of Publication 946, How To Depreciate Property. How to file an amended 2011 tax return That chapter explains how to determine whether property is used more than 50% in your business. How to file an amended 2011 tax return Section 179 property. How to file an amended 2011 tax return   If you take a section 179 deduction (explained in chapter 8 under Depreciation ) for an asset and before the end of the asset's recovery period the percentage of business use drops to 50% or less, you must recapture part of the section 179 deduction. How to file an amended 2011 tax return You do this by including in income on Schedule C part of the deduction you took. How to file an amended 2011 tax return Use Part IV of Form 4797 to figure the amount to include on Schedule C. How to file an amended 2011 tax return See chapter 2 in Publication 946 to find out when you recapture the deduction. How to file an amended 2011 tax return Sale or exchange of depreciable property. How to file an amended 2011 tax return   If you sell or exchange depreciable property at a gain, you may have to treat all or part of the gain due to depreciation as ordinary income. How to file an amended 2011 tax return You figure the income due to depreciation recapture in Part III of Form 4797. How to file an amended 2011 tax return For more information, see chapter 4 in Publication 544, Sales and Other Dispositions of Assets. How to file an amended 2011 tax return Items That Are Not Income In some cases the property or money you receive is not income. How to file an amended 2011 tax return Appreciation. How to file an amended 2011 tax return   Increases in value of your property are not income until you realize the increases through a sale or other taxable disposition. How to file an amended 2011 tax return Consignments. How to file an amended 2011 tax return   Consignments of merchandise to others to sell for you are not sales. How to file an amended 2011 tax return The title of merchandise remains with you, the consignor, even after the consignee possesses the merchandise. How to file an amended 2011 tax return Therefore, if you ship goods on consignment, you have no profit or loss until the consignee sells the merchandise. How to file an amended 2011 tax return Merchandise you have shipped out on consignment is included in your inventory until it is sold. How to file an amended 2011 tax return   Do not include merchandise you receive on consignment in your inventory. How to file an amended 2011 tax return Include your profit or commission on merchandise consigned to you in your income when you sell the merchandise or when you receive your profit or commission, depending upon the method of accounting you use. How to file an amended 2011 tax return Construction allowances. How to file an amended 2011 tax return   If you enter into a lease after August 5, 1997, you can exclude from income the construction allowance you receive (in cash or as a rent reduction) from your landlord if you receive it under both the following conditions. How to file an amended 2011 tax return Under a short-term lease of retail space. How to file an amended 2011 tax return For the purpose of constructing or improving qualified long-term real property for use in your business at that retail space. How to file an amended 2011 tax return Amount you can exclude. How to file an amended 2011 tax return   You can exclude the construction allowance to the extent it does not exceed the amount you spent for construction or improvements. How to file an amended 2011 tax return Short-term lease. How to file an amended 2011 tax return   A short-term lease is a lease (or other agreement for occupancy or use) of retail space for 15 years or less. How to file an amended 2011 tax return The following rules apply in determining whether the lease is for 15 years or less. How to file an amended 2011 tax return Take into account options to renew when figuring whether the lease is for 15 years or less. How to file an amended 2011 tax return But do not take into account any option to renew at fair market value determined at the time of renewal. How to file an amended 2011 tax return Two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar retail space are treated as one lease. How to file an amended 2011 tax return Retail space. How to file an amended 2011 tax return   Retail space is real property leased, occupied, or otherwise used by you as a tenant in your business of selling tangible personal property or services to the general public. How to file an amended 2011 tax return Qualified long-term real property. How to file an amended 2011 tax return   Qualified long-term real property is nonresidential real property that is part of, or otherwise present at, your retail space and that reverts to the landlord when the lease ends. How to file an amended 2011 tax return Exchange of like-kind property. How to file an amended 2011 tax return   If you exchange your business property or property you hold for investment solely for property of a like kind to be used in your business or to be held for investment, no gain or loss is recognized. How to file an amended 2011 tax return This means that the gain is not taxable and the loss is not deductible. How to file an amended 2011 tax return A common type of nontaxable exchange is the trade-in of a business automobile for another business automobile. How to file an amended 2011 tax return For more information, see Form 8824. How to file an amended 2011 tax return Leasehold improvements. How to file an amended 2011 tax return   If a tenant erects buildings or makes improvements to your property, the increase in the value of the property due to the improvements is not income to you. How to file an amended 2011 tax return However, if the facts indicate that the improvements are a payment of rent to you, then the increase in value would be income. How to file an amended 2011 tax return Loans. How to file an amended 2011 tax return   Money borrowed through a bona fide loan is not income. How to file an amended 2011 tax return Sales tax. How to file an amended 2011 tax return   State and local sales taxes imposed on the buyer, which you were required to collect and pay over to state or local governments, are not income. How to file an amended 2011 tax return Guidelines for Selected Occupations This section provides information to determine whether your earnings should be reported on Schedule C (Form 1040) or C-EZ (Form 1040). How to file an amended 2011 tax return Direct seller. How to file an amended 2011 tax return   You must report all income you receive as a direct seller on Schedule C or C-EZ. How to file an amended 2011 tax return This includes any of the following. How to file an amended 2011 tax return Income from sales—payments you receive from customers for products they buy from you. How to file an amended 2011 tax return Commissions, bonuses, or percentages you receive for sales and the sales of others who work under you. How to file an amended 2011 tax return Prizes, awards, and gifts you receive from your selling business. How to file an amended 2011 tax return You must report this income regardless of whether it is reported to you on an information return. How to file an amended 2011 tax return   You are a direct seller if you meet all the following conditions. How to file an amended 2011 tax return You are engaged in one of the following trades or businesses. How to file an amended 2011 tax return Selling or soliciting the sale of consumer products either in a home or other place that is not a permanent retail establishment, or to any buyer on a buy-sell basis or a deposit-commission basis for resale in a home or other place of business that is not a permanent retail establishment. How to file an amended 2011 tax return Delivering or distributing newspapers or shopping news (including any services directly related to that trade or business). How to file an amended 2011 tax return Substantially all your pay (whether paid in cash or not) for services described above is directly related to sales or other output (including performance of services) rather than to the number of hours worked. How to file an amended 2011 tax return Your services are performed under a written contract between you and the person for whom you perform the services, and the contract provides that you will not be treated as an employee for federal tax purposes. How to file an amended 2011 tax return Executor or administrator. How to file an amended 2011 tax return   If you administer a deceased person's estate, your fees are reported on Schedule C or C-EZ if you are one of the following: A professional fiduciary. How to file an amended 2011 tax return A nonprofessional fiduciary (personal representative) and both of the following apply. How to file an amended 2011 tax return The estate includes an active trade or business in which you actively participate. How to file an amended 2011 tax return Your fees are related to the operation of that trade or business. How to file an amended 2011 tax return A nonprofessional fiduciary of a single estate that requires extensive managerial activities on your part for a long period of time, provided these activities are enough to be considered a trade or business. How to file an amended 2011 tax return    If the fees do not meet the above requirements, report them on line 21 of Form 1040. How to file an amended 2011 tax return Fishing crew member. How to file an amended 2011 tax return    If you are a member of the crew that catches fish or other water life, your earnings are reported on Schedule C or C-EZ if you meet all the requirements shown in chapter 10 under Fishing crew member . How to file an amended 2011 tax return Insurance agent, former. How to file an amended 2011 tax return   Termination payments you receive as a former self-employed insurance agent from an insurance company because of services you performed for that company are not reported on Schedule C or C-EZ if all the following conditions are met. How to file an amended 2011 tax return You received payments after your agreement to perform services for the company ended. How to file an amended 2011 tax return You did not perform any services for the company after your service agreement ended and before the end of the year in which you received the payment. How to file an amended 2011 tax return You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date your service agreement ended. How to file an amended 2011 tax return The amount of the payments depended primarily on policies sold by you or credited to your account during the last year of your service agreement or the extent to which those policies remain in force for some period after your service agreement ended, or both. How to file an amended 2011 tax return The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payments depended on length of service). How to file an amended 2011 tax return Insurance agent, retired. How to file an amended 2011 tax return   Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is reported on Schedule C or C-EZ. How to file an amended 2011 tax return Also, renewal commissions and deferred commissions for sales made before retirement are generally reported on Schedule C or C-EZ. How to file an amended 2011 tax return   However, renewal commissions paid to the survivor of an insurance agent are not reported on Schedule C or C-EZ. How to file an amended 2011 tax return Newspaper carrier or distributor. How to file an amended 2011 tax return   You are a direct seller and your earnings are reported on Schedule C or C-EZ if all the following conditions apply. How to file an amended 2011 tax return You are in the business of delivering or distributing newspapers or shopping news (including directly related services such as soliciting customers and collecting receipts). How to file an amended 2011 tax return Substantially all your pay for these services directly relates to your sales or other output rather than to the number of hours you work. How to file an amended 2011 tax return You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. How to file an amended 2011 tax return   This rule applies whether or not you hire others to help you make deliveries. How to file an amended 2011 tax return It also applies whether you buy the papers from the publisher or are paid based on the number of papers you deliver. How to file an amended 2011 tax return Newspaper or magazine vendor. How to file an amended 2011 tax return   If you are 18 or older and you sell newspapers or magazines, your earnings are reported on Schedule C or C-EZ if all the following conditions apply. How to file an amended 2011 tax return You sell newspapers or magazines to ultimate consumers. How to file an amended 2011 tax return You sell them at a fixed price. How to file an amended 2011 tax return Your earnings are based on the difference between the sales price and your cost of goods sold. How to file an amended 2011 tax return   This rule applies whether or not you are guaranteed a minimum amount of earnings. How to file an amended 2011 tax return It also applies whether or not you receive credit for unsold newspapers or magazines you return to your supplier. How to file an amended 2011 tax return Notary public. How to file an amended 2011 tax return   Fees you receive for services you perform as a notary public are reported on Schedule C or C-EZ. How to file an amended 2011 tax return These payments are not subject to self-employment tax (see the instructions for Schedule SE (Form 1040)). How to file an amended 2011 tax return Public official. How to file an amended 2011 tax return   Public officials generally do not report what they earn for serving in public office on Schedule C or C-EZ. How to file an amended 2011 tax return This rule applies to payments received by an elected tax collector from state funds on the basis of a fixed percentage of the taxes collected. How to file an amended 2011 tax return Public office includes any elective or appointive office of the United States or its possessions, the District of Columbia, a state or its political subdivisions, or a wholly owned instrumentality of any of these. How to file an amended 2011 tax return   Public officials of state or local governments report their fees on Schedule C or C-EZ if they are paid solely on a fee basis and if their services are eligible for, but not covered by, social security under a federal-state agreement. How to file an amended 2011 tax return Real estate agent or direct seller. How to file an amended 2011 tax return   If you are a licensed real estate agent or a direct seller, your earnings are reported on Schedule C or C-EZ if both the following apply. How to file an amended 2011 tax return Substantially all your pay for services as a real estate agent or direct seller directly relates to your sales or other output rather than to the number of hours you work. How to file an amended 2011 tax return You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. How to file an amended 2011 tax return Securities dealer. How to file an amended 2011 tax return   If you are a dealer in options or commodities, your gains and losses from dealing or trading in section 1256 contracts (regulated futures contracts, foreign currency contracts, nonequity options, dealer equity options, and dealer securities futures contracts) or property related to those contracts (such as stock used to hedge options) are reported on Schedule C or C-EZ. How to file an amended 2011 tax return For more information, see sections 1256 and 1402(i). How to file an amended 2011 tax return Securities trader. How to file an amended 2011 tax return   You are a trader in securities if you are engaged in the business of buying and selling securities for your own account. How to file an amended 2011 tax return As a trader in securities, your gain or loss from the disposition of securities is not reported on Schedule C or C-EZ. How to file an amended 2011 tax return However, see Securities dealer , earlier, for an exception that applies to section 1256 contracts. How to file an amended 2011 tax return For more information about securities traders, see Publication 550, Investment Income and Expenses. How to file an amended 2011 tax return Accounting for Your Income Accounting for your income for income tax purposes differs at times from accounting for financial purposes. How to file an amended 2011 tax return This section discusses some of the more common differences that may affect business transactions. How to file an amended 2011 tax return Figure your business income on the basis of a tax year and according to your regular method of accounting (see chapter 2). How to file an amended 2011 tax return If the sale of a product is an income-producing factor in your business, you usually have to use inventories to clearly show your income. How to file an amended 2011 tax return Dealers in real estate are not allowed to use inventories. How to file an amended 2011 tax return For more information on inventories, see chapter 2. How to file an amended 2011 tax return Income paid to a third party. How to file an amended 2011 tax return   All income you earn is taxable to you. How to file an amended 2011 tax return You cannot avoid tax by having the income paid to a third party. How to file an amended 2011 tax return Example. How to file an amended 2011 tax return You rent out your property and the rental agreement directs the lessee to pay the rent to your son. How to file an amended 2011 tax return The amount paid to your son is gross income to you. How to file an amended 2011 tax return Cash discounts. How to file an amended 2011 tax return   These are amounts the seller permits you to deduct from the invoice price for prompt payment. How to file an amended 2011 tax return For income tax purposes, you can use either of the following two methods to account for cash discounts. How to file an amended 2011 tax return Deduct the cash discount from purchases (see Line 36, Purchases Less Cost of Items Withdrawn for Personal Use in chapter 6). How to file an amended 2011 tax return Credit the cash discount to a discount income account. How to file an amended 2011 tax return You must use the chosen method every year for all your purchase discounts. How to file an amended 2011 tax return   If you use the second method, the credit balance in the account at the end of your tax year is business income. How to file an amended 2011 tax return Under this method, you do not reduce the cost of goods sold by the cash discounts you received. How to file an amended 2011 tax return When valuing your closing inventory, you cannot reduce the invoice price of merchandise on hand at the close of the tax year by the average or estimated discounts received on the merchandise. How to file an amended 2011 tax return Trade discounts. How to file an amended 2011 tax return   These are reductions from list or catalog prices and usually are not written into the invoice or charged to the customer. How to file an amended 2011 tax return Do not enter these discounts on your books of account. How to file an amended 2011 tax return Instead, use only the net amount as the cost of the merchandise purchased. How to file an amended 2011 tax return For more information, see Trade discounts in chapter 6. How to file an amended 2011 tax return Payment placed in escrow. How to file an amended 2011 tax return   If the buyer of your property places part or all of the purchase price in escrow, you do not include any part of it in gross sales until you actually or constructively receive it. How to file an amended 2011 tax return However, upon completion of the terms of the contract and the escrow agreement, you will have taxable income, even if you do not accept the money until the next year. How to file an amended 2011 tax return Sales returns and allowances. How to file an amended 2011 tax return   Credits you allow customers for returned merchandise and any other allowances you make on sales are deductions from gross sales in figuring net sales. How to file an amended 2011 tax return Advance payments. How to file an amended 2011 tax return   Special rules dealing with an accrual method of accounting for payments received in advance are discussed in chapter 2 under Accrual Method. How to file an amended 2011 tax return Insurance proceeds. How to file an amended 2011 tax return   If you receive insurance or another type of reimbursement for a casualty or theft loss, you must subtract it from the loss when you figure your deduction. How to file an amended 2011 tax return You cannot deduct the reimbursed part of a casualty or theft loss. How to file an amended 2011 tax return   For information on casualty or theft losses, see Publication 547, Casualties, Disasters, and Thefts. How to file an amended 2011 tax return Prev  Up  Next   Home   More Online Publications