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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Military Tax Credits

Where To File 2011 Tax ReturnIrs Ez Form 2011Irs Gov Efile1040ez OnlineFile 1040xHr BlockFree Tax Filing For Low Income2010 Tax FormsIncome Tax Return Preparation2010 Amended Tax Return InstructionsDo Active Duty Military Pay State Taxes1042 Ez2011 Irs 1040ez FormFree Tax Filing For Low Income1040x Forms2009 Tax Return Form1040 Ez E FileTurbotax Online 2012Free State Tax FormsForm 1040ez 2011H And R Free FileAarp Tax Aide Locations2012 Free Tax Software OnlineH & R BlockHow Do I File My 2011 TaxesCan I E File A 2012 Tax ReturnUs Military TaxesFile Back Taxes OnlineMyfreetaxes.com/everettWww Irs Gov Form1040xIrs 1040ez OnlineFree File Taxes2013 1040ez FormHow To Amend A 2012 Tax ReturnMilitary Pay TaxesWhere Can I File Just My State TaxesH&rblock ComFree Turbo TaxFree Tax 2007Fill State Taxes Free

Military Tax Credits

Military tax credits 23. Military tax credits   Interest Expense Table of Contents Introduction Useful Items - You may want to see: Home Mortgage InterestAmount Deductible Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement Investment InterestInvestment Property Allocation of Interest Expense Limit on Deduction Items You Cannot DeductPersonal Interest Allocation of Interest How To ReportMore than one borrower. Military tax credits Mortgage proceeds used for business or investment. Military tax credits Introduction This chapter discusses what interest expenses you can deduct. Military tax credits Interest is the amount you pay for the use of borrowed money. Military tax credits The following are types of interest you can deduct as itemized deductions on Schedule A (Form 1040). Military tax credits Home mortgage interest, including certain points and mortgage insurance premiums. Military tax credits Investment interest. Military tax credits This chapter explains these deductions. Military tax credits It also explains where to deduct other types of interest and lists some types of interest you cannot deduct. Military tax credits Use Table 23-1 to find out where to get more information on various types of interest, including investment interest. Military tax credits Useful Items - You may want to see: Publication 936 Home Mortgage Interest Deduction 550 Investment Income and Expenses Home Mortgage Interest Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). Military tax credits The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. Military tax credits You can deduct home mortgage interest if all the following conditions are met. Military tax credits You file Form 1040 and itemize deductions on Schedule A (Form 1040). Military tax credits The mortgage is a secured debt on a qualified home in which you have an ownership interest. Military tax credits (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interest of the lender. Military tax credits The term “qualified home” means your main home or second home. Military tax credits For details, see Publication 936. Military tax credits )  Both you and the lender must intend that the loan be repaid. Military tax credits Amount Deductible In most cases, you can deduct all of your home mortgage interest. Military tax credits How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. Military tax credits Fully deductible interest. Military tax credits   If all of your mortgages fit into one or more of the following three categories at all times during the year, you can deduct all of the interest on those mortgages. Military tax credits (If any one mortgage fits into more than one category, add the debt that fits in each category to your other debt in the same category. Military tax credits )   The three categories are as follows: Mortgages you took out on or before October 13, 1987 (called grandfathered debt). Military tax credits Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2013 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). Military tax credits Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2013 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2). Military tax credits The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. Military tax credits   See Part II of Publication 936 for more detailed definitions of grandfathered, home acquisition, and home equity debt. Military tax credits    You can use Figure 23-A to check whether your home mortgage interest is fully deductible. Military tax credits Figure 23-A. Military tax credits Is My Home Mortgage Interest Fully Deductible? Please click here for the text description of the image. Military tax credits Figure 23-A. Military tax credits Is My Interest Fully Deductible? Limits on deduction. Military tax credits   You cannot fully deduct interest on a mortgage that does not fit into any of the three categories listed earlier. Military tax credits If this applies to you, see Part II of Publication 936 to figure the amount of interest you can deduct. Military tax credits Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. Military tax credits It also describes certain special situations that may affect your deduction. Military tax credits Late payment charge on mortgage payment. Military tax credits   You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan. Military tax credits Mortgage prepayment penalty. Military tax credits   If you pay off your home mortgage early, you may have to pay a penalty. Military tax credits You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. Military tax credits Sale of home. Military tax credits   If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of sale. Military tax credits Example. Military tax credits John and Peggy Harris sold their home on May 7. Military tax credits Through April 30, they made home mortgage interest payments of $1,220. Military tax credits The settlement sheet for the sale of the home showed $50 interest for the 6-day period in May up to, but not including, the date of sale. Military tax credits Their mortgage interest deduction is $1,270 ($1,220 + $50). Military tax credits Prepaid interest. Military tax credits   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. Military tax credits You can deduct in each year only the interest that qualifies as home mortgage interest for that year. Military tax credits However, there is an exception that applies to points, discussed later. Military tax credits Mortgage interest credit. Military tax credits   You may be able to claim a mortgage interest credit if you were issued a mortgage credit certificate (MCC) by a state or local government. Military tax credits Figure the credit on Form 8396, Mortgage Interest Credit. Military tax credits If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. Military tax credits   For more information on the credit, see chapter 37. Military tax credits Ministers' and military housing allowance. Military tax credits   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you can still deduct your home mortgage interest. Military tax credits Hardest Hit Fund and Emergency Homeowners' Loan Programs. Military tax credits   You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. Military tax credits You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. Military tax credits You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. Military tax credits If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received from payer(s) / borrower(s)), box 4 (mortgage insurance premiums) and box 5 (real property taxes). Military tax credits However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. Military tax credits Mortgage assistance payments under section 235 of the National Housing Act. Military tax credits   If you qualify for mortgage assistance payments for lower-income families under section 235 of the National Housing Act, part or all of the interest on your mortgage may be paid for you. Military tax credits You cannot deduct the interest that is paid for you. Military tax credits No other effect on taxes. Military tax credits   Do not include these mortgage assistance payments in your income. Military tax credits Also, do not use these payments to reduce other deductions, such as real estate taxes. Military tax credits Divorced or separated individuals. Military tax credits   If a divorce or separation agreement requires you or your spouse or former spouse to pay home mortgage interest on a home owned by both of you, the payment of interest may be alimony. Military tax credits See the discussion of Payments for jointly-owned home in chapter 18. Military tax credits Redeemable ground rents. Military tax credits   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. Military tax credits   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. Military tax credits For more information, see Publication 936. Military tax credits Nonredeemable ground rents. Military tax credits   Payments on a nonredeemable ground rent are not mortgage interest. Military tax credits You can deduct them as rent if they are a business expense or if they are for rental property. Military tax credits Reverse mortgages. Military tax credits   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. Military tax credits With a reverse mortgage, you retain title to your home. Military tax credits Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Military tax credits Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. Military tax credits Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until the loan is paid in full. Military tax credits Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Publication 936. Military tax credits Rental payments. Military tax credits   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. Military tax credits This is true even if the settlement papers call them interest. Military tax credits You cannot deduct these payments as home mortgage interest. Military tax credits Mortgage proceeds invested in tax-exempt securities. Military tax credits   You cannot deduct the home mortgage interest on grandfathered debt or home equity debt if you used the proceeds of the mortgage to buy securities or certificates that produce tax-free income. Military tax credits “Grandfathered debt” and “home equity debt” are defined earlier under Amount Deductible. Military tax credits Refunds of interest. Military tax credits   If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. Military tax credits If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. Military tax credits However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. Military tax credits This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. Military tax credits    If you received a refund of interest you overpaid in an earlier year, you generally will receive a Form 1098, Mortgage Interest Statement, showing the refund in box 3. Military tax credits For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. Military tax credits   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in chapter 12. Military tax credits Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Military tax credits Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. Military tax credits A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. Military tax credits See Points paid by the seller , later. Military tax credits General Rule You generally cannot deduct the full amount of points in the year paid. Military tax credits Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. Military tax credits See Deduction Allowed Ratably , next. Military tax credits For exceptions to the general rule, see Deduction Allowed in Year Paid , later. Military tax credits Deduction Allowed Ratably If you do not meet the tests listed under Deduction Allowed in Year Paid , later, the loan is not a home improvement loan, or you choose not to deduct your points in full in the year paid, you can deduct the points ratably (equally) over the life of the loan if you meet all the following tests. Military tax credits You use the cash method of accounting. Military tax credits This means you report income in the year you receive it and deduct expenses in the year you pay them. Military tax credits Most individuals use this method. Military tax credits Your loan is secured by a home. Military tax credits (The home does not need to be your main home. Military tax credits ) Your loan period is not more than 30 years. Military tax credits If your loan period is more than 10 years, the terms of your loan are the same as other loans offered in your area for the same or longer period. Military tax credits Either your loan amount is $250,000 or less, or the number of points is not more than: 4, if your loan period is 15 years or less, or 6, if your loan period is more than 15 years. Military tax credits Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. Military tax credits (You can use Figure 23-B as a quick guide to see whether your points are fully deductible in the year paid. Military tax credits ) Your loan is secured by your main home. Military tax credits (Your main home is the one you ordinarily live in most of the time. Military tax credits ) Paying points is an established business practice in the area where the loan was made. Military tax credits The points paid were not more than the points generally charged in that area. Military tax credits You use the cash method of accounting. Military tax credits This means you report income in the year you receive it and deduct expenses in the year you pay them. Military tax credits (If you want more information about this method, see Accounting Methods in chapter 1. Military tax credits ) The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Military tax credits The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. Military tax credits The funds you provided are not required to have been applied to the points. Military tax credits They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. Military tax credits You cannot have borrowed these funds from your lender or mortgage broker. Military tax credits You use your loan to buy or build your main home. Military tax credits The points were computed as a percentage of the principal amount of the mortgage. Military tax credits The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. Military tax credits The points may be shown as paid from either your funds or the seller's. Military tax credits Figure 23-B. Military tax credits Are My Points Fully Deductible This Year? Please click here for the text description of the image. Military tax credits Figure 23-B. Military tax credits Are My Points Fully Deductible This Year? Note. Military tax credits If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan. Military tax credits Home improvement loan. Military tax credits   You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met. Military tax credits Second home. Military tax credits You cannot fully deduct in the year paid points you pay on loans secured by your second home. Military tax credits You can deduct these points only over the life of the loan. Military tax credits Refinancing. Military tax credits   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. Military tax credits This is true even if the new mortgage is secured by your main home. Military tax credits   However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed under Deduction Allowed in Year Paid , earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Military tax credits You can deduct the rest of the points over the life of the loan. Military tax credits Example 1. Military tax credits In 1998, Bill Fields got a mortgage to buy a home. Military tax credits In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. Military tax credits The mortgage is secured by his home. Military tax credits To get the new loan, he had to pay three points ($3,000). Military tax credits Two points ($2,000) were for prepaid interest, and one point ($1,000) was charged for services, in place of amounts that ordinarily are stated separately on the settlement statement. Military tax credits Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. Military tax credits The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. Military tax credits Bill's first payment on the new loan was due July 1. Military tax credits He made six payments on the loan in 2013 and is a cash basis taxpayer. Military tax credits Bill used the funds from the new mortgage to repay his existing mortgage. Military tax credits Although the new mortgage loan was for Bill's continued ownership of his main home, it was not for the purchase or improvement of that home. Military tax credits He cannot deduct all of the points in 2013. Military tax credits He can deduct two points ($2,000) ratably over the life of the loan. Military tax credits He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. Military tax credits The other point ($1,000) was a fee for services and is not deductible. Military tax credits Example 2. Military tax credits The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. Military tax credits Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. Military tax credits His deduction is $500 ($2,000 × 25%). Military tax credits Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. Military tax credits This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. Military tax credits The total amount Bill deducts in 2013 is $550 ($500 + $50). Military tax credits Special Situations This section describes certain special situations that may affect your deduction of points. Military tax credits Original issue discount. Military tax credits   If you do not qualify to either deduct the points in the year paid or deduct them ratably over the life of the loan, or if you choose not to use either of these methods, the points reduce the issue price of the loan. Military tax credits This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. Military tax credits Amounts charged for services. Military tax credits   Amounts charged by the lender for specific services connected to the loan are not interest. Military tax credits Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. Military tax credits You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. Military tax credits Points paid by the seller. Military tax credits   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. Military tax credits Treatment by seller. Military tax credits   The seller cannot deduct these fees as interest. Military tax credits But they are a selling expense that reduces the amount realized by the seller. Military tax credits See chapter 15 for information on selling your home. Military tax credits Treatment by buyer. Military tax credits    The buyer reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them. Military tax credits If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. Military tax credits If any of those tests are not met, the buyer deducts the points over the life of the loan. Military tax credits   For information about basis, see chapter 13. Military tax credits Funds provided are less than points. Military tax credits   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the funds you provided were less than the points charged to you (test (6)), you can deduct the points in the year paid, up to the amount of funds you provided. Military tax credits In addition, you can deduct any points paid by the seller. Military tax credits Example 1. Military tax credits When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). Military tax credits You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. Military tax credits Of the $1,000 charged for points, you can deduct $750 in the year paid. Military tax credits You spread the remaining $250 over the life of the mortgage. Military tax credits Example 2. Military tax credits The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. Military tax credits In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). Military tax credits You spread the remaining $250 over the life of the mortgage. Military tax credits You must reduce the basis of your home by the $1,000 paid by the seller. Military tax credits Excess points. Military tax credits   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the points paid were more than generally paid in your area (test (3)), you deduct in the year paid only the points that are generally charged. Military tax credits You must spread any additional points over the life of the mortgage. Military tax credits Mortgage ending early. Military tax credits   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. Military tax credits However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. Military tax credits Instead, deduct the remaining balance over the term of the new loan. Military tax credits    A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. Military tax credits Example. Military tax credits Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. Military tax credits He deducts $200 points per year. Military tax credits Through 2012, Dan has deducted $2,200 of the points. Military tax credits Dan prepaid his mortgage in full in 2013. Military tax credits He can deduct the remaining $800 of points in 2013. Military tax credits Limits on deduction. Military tax credits   You cannot fully deduct points paid on a mortgage unless the mortgage fits into one of the categories listed earlier under Fully deductible interest . Military tax credits See Publication 936 for details. Military tax credits Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. Military tax credits The insurance must be in connection with home acquisition debt and the insurance contract must have been issued after 2006. Military tax credits Qualified mortgage insurance. Military tax credits   Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Military tax credits   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. Military tax credits If provided by the Rural Housing Service, it is commonly known as a guarantee fee. Military tax credits These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. Military tax credits Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. Military tax credits Special rules for prepaid mortgage insurance. Military tax credits   Generally, if you paid premiums for qualified mortgage insurance that are allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. Military tax credits You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained. Military tax credits No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. Military tax credits This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. Military tax credits See the Example below. Military tax credits Example. Military tax credits Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. Military tax credits Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. Military tax credits Since the $9,240 in private mortgage insurance is allocable to periods after 2012, Ryan must allocate the $9,240 over the shorter of the life of the mortgage or 84 months. Military tax credits Ryan's adjusted gross income (AGI) for 2012 is $76,000. Military tax credits Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2012. Military tax credits For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less. Military tax credits In this example, the mortgage insurance premiums are allocated over 84 months, which is shorter than the life of the mortgage of 15 years (180 months). Military tax credits Limit on deduction. Military tax credits   If your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated. Military tax credits See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. Military tax credits If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. Military tax credits Form 1098, Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. Military tax credits You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. Military tax credits A governmental unit is a person for purposes of furnishing the statement. Military tax credits The statement for each year should be sent to you by January 31 of the following year. Military tax credits A copy of this form will also be sent to the IRS. Military tax credits The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. Military tax credits However, it should not show any interest that was paid for you by a government agency. Military tax credits As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. Military tax credits However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. Military tax credits See Points , earlier, to determine whether you can deduct points not shown on Form 1098. Military tax credits Prepaid interest on Form 1098. Military tax credits   If you prepaid interest in 2013 that accrued in full by January 15, 2014, this prepaid interest may be included in box 1 of Form 1098. Military tax credits However, you cannot deduct the prepaid amount for January 2014 in 2013. Military tax credits (See Prepaid interest , earlier. Military tax credits ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. Military tax credits You will include the interest for January 2014 with the other interest you pay for 2014. Military tax credits See How To Report , later. Military tax credits Refunded interest. Military tax credits   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. Military tax credits See Refunds of interest , earlier. Military tax credits Mortgage insurance premiums. Military tax credits   The amount of mortgage insurance premiums you paid during 2013 may be shown in box 4 of Form 1098. Military tax credits See Mortgage Insurance Premiums, earlier. Military tax credits Investment Interest This section discusses interest expenses you may be able to deduct as an investor. Military tax credits If you borrow money to buy property you hold for investment, the interest you pay is investment interest. Military tax credits You can deduct investment interest subject to the limit discussed later. Military tax credits However, you cannot deduct interest you incurred to produce tax-exempt income. Military tax credits Nor can you deduct interest expenses on straddles. Military tax credits Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. Military tax credits Investment Property Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. Military tax credits It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Military tax credits Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). Military tax credits Partners, shareholders, and beneficiaries. Military tax credits   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. Military tax credits Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. Military tax credits Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. Military tax credits The allocation is not affected by the use of property that secures the debt. Military tax credits Limit on Deduction Generally, your deduction for investment interest expense is limited to the amount of your net investment income. Military tax credits You can carry over the amount of investment interest that you could not deduct because of this limit to the next tax year. Military tax credits The interest carried over is treated as investment interest paid or accrued in that next year. Military tax credits You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. Military tax credits Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. Military tax credits Investment income. Military tax credits    This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). Military tax credits Investment income does not include Alaska Permanent Fund dividends. Military tax credits It also does not include qualified dividends or net capital gain unless you choose to include them. Military tax credits Choosing to include qualified dividends. Military tax credits   Investment income generally does not include qualified dividends, discussed in chapter 8. Military tax credits However, you can choose to include all or part of your qualified dividends in investment income. Military tax credits   You make this choice by completing Form 4952, line 4g, according to its instructions. Military tax credits   If you choose to include any amount of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. Military tax credits Choosing to include net capital gain. Military tax credits   Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). Military tax credits However, you can choose to include all or part of your net capital gain in investment income. Military tax credits    You make this choice by completing Form 4952, line 4g, according to its instructions. Military tax credits   If you choose to include any amount of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. Military tax credits    Before making either choice, consider the overall effect on your tax liability. Military tax credits Compare your tax if you make one or both of these choices with your tax if you do not. Military tax credits Investment income of child reported on parent's return. Military tax credits    Investment income includes the part of your child's interest and dividend income that you choose to report on your return. Military tax credits If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814, Parents' Election To Report Child's Interest and Dividends. Military tax credits Child's qualified dividends. Military tax credits   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. Military tax credits However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. Military tax credits   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). Military tax credits Child's Alaska Permanent Fund dividends. Military tax credits   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. Military tax credits To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. Military tax credits Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. Military tax credits Subtract the result from the amount on Form 8814, line 12. Military tax credits Child's capital gain distributions. Military tax credits    If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D, line 13, or Form 1040, line 13) generally does not count as investment income. Military tax credits However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. Military tax credits   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). Military tax credits Investment expenses. Military tax credits   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Military tax credits Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. Military tax credits Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A, line 27. Military tax credits Losses from passive activities. Military tax credits   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). Military tax credits See Publication 925, Passive Activity and At-Risk Rules, for information about passive activities. Military tax credits Form 4952 Use Form 4952, Investment Interest Expense Deduction, to figure your deduction for investment interest. Military tax credits Exception to use of Form 4952. Military tax credits   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. Military tax credits Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. Military tax credits You do not have any other deductible investment expenses. Military tax credits You have no carryover of investment interest expense from 2012. Military tax credits If you meet all of these tests, you can deduct all of your investment interest. Military tax credits More Information For more information on investment interest, see Interest Expenses in chapter 3 of Publication 550. Military tax credits Items You Cannot Deduct Some interest payments are not deductible. Military tax credits Certain expenses similar to interest also are not deductible. Military tax credits Nondeductible expenses include the following items. Military tax credits Personal interest (discussed later). Military tax credits Service charges (however, see Other Expenses (Line 23) in chapter 28). Military tax credits Annual fees for credit cards. Military tax credits Loan fees. Military tax credits Credit investigation fees. Military tax credits Interest to purchase or carry tax-exempt securities. Military tax credits Penalties. Military tax credits   You cannot deduct fines and penalties paid to a government for violations of law, regardless of their nature. Military tax credits Personal Interest Personal interest is not deductible. Military tax credits Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. Military tax credits It includes the following items. Military tax credits Interest on car loans (unless you use the car for business). Military tax credits Interest on federal, state, or local income tax. Military tax credits Finance charges on credit cards, retail installment contracts, and revolving charge accounts incurred for personal expenses. Military tax credits Late payment charges by a public utility. Military tax credits You may be able to deduct interest you pay on a qualified student loan. Military tax credits For details, see Publication 970, Tax Benefits for Education. Military tax credits Allocation of Interest If you use the proceeds of a loan for more than one purpose (for example, personal and business), you must allocate the interest on the loan to each use. Military tax credits However, you do not have to allocate home mortgage interest if it is fully deductible, regardless of how the funds are used. Military tax credits You allocate interest (other than fully deductible home mortgage interest) on a loan in the same way as the loan itself is allocated. Military tax credits You do this by tracing disbursements of the debt proceeds to specific uses. Military tax credits For details on how to do this, see chapter 4 of Publication 535. Military tax credits How To Report You must file Form 1040 to deduct any home mortgage interest expense on your tax return. Military tax credits Where you deduct your interest expense generally depends on how you use the loan proceeds. Military tax credits See Table 23-1 for a summary of where to deduct your interest expense. Military tax credits Home mortgage interest and points. Military tax credits   Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. Military tax credits If you paid more deductible interest to the financial institution than the amount shown on Form 1098, show the larger deductible amount on line 10. Military tax credits Attach a statement explaining the difference and print “See attached” next to line 10. Military tax credits    Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. Military tax credits If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11. Military tax credits The seller must give you this number and you must give the seller your TIN. Military tax credits A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Military tax credits Failure to meet any of these requirements may result in a $50 penalty for each failure. Military tax credits The TIN can be either a social security number, an individual taxpayer identification number (issued by the Internal Revenue Service), or an employer identification number. Military tax credits See Social Security Number (SSN) in chapter 1 for more information about TINs. Military tax credits    If you can take a deduction for points that were not reported to you on Form 1098, deduct those points on Schedule A (Form 1040), line 12. Military tax credits   Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. Military tax credits More than one borrower. Military tax credits   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Military tax credits Show how much of the interest each of you paid, and give the name and address of the person who received the form. Military tax credits Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Military tax credits Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. Military tax credits   Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. Military tax credits You should let each of the other borrowers know what his or her share is. Military tax credits Mortgage proceeds used for business or investment. Military tax credits    If your home mortgage interest deduction is limited, but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 23-1. Military tax credits It shows where to deduct the part of your excess interest that is for those activities. Military tax credits Investment interest. Military tax credits    Deduct investment interest, subject to certain limits discussed in Publication 550, on Schedule A (Form 1040), line 14. Military tax credits Amortization of bond premium. Military tax credits   There are various ways to treat the premium you pay to buy taxable bonds. Military tax credits See Bond Premium Amortization in Publication 550. Military tax credits Income-producing rental or royalty interest. Military tax credits   Deduct interest on a loan for income-producing rental or royalty property that is not used in your business in Part I of Schedule E (Form 1040). Military tax credits Example. Military tax credits You rent out part of your home and borrow money to make repairs. Military tax credits You can deduct only the interest payment for the rented part in Part I of Schedule E (Form 1040). Military tax credits Deduct the rest of the interest payment on Schedule A (Form 1040) if it is deductible home mortgage interest. Military tax credits Table 23-1. Military tax credits Where To Deduct Your Interest Expense IF you have . Military tax credits . Military tax credits . Military tax credits THEN deduct it on . Military tax credits . Military tax credits . Military tax credits AND for more information go to . Military tax credits . Military tax credits . Military tax credits deductible student loan interest Form 1040, line 33, or Form 1040A, line 18 Publication 970. Military tax credits deductible home mortgage interest and points reported on Form 1098 Schedule A (Form 1040), line 10 Publication 936. Military tax credits deductible home mortgage interest not reported on Form 1098 Schedule A (Form 1040), line 11 Publication 936. Military tax credits deductible points not reported on Form 1098 Schedule A (Form 1040), line 12 Publication 936. Military tax credits deductible mortgage insurance premiums Schedule A (Form 1040), line 13 Publication 936. Military tax credits deductible investment interest (other than incurred to produce rents or royalties) Schedule A (Form 1040), line 14 Publication 550. Military tax credits deductible business interest (non-farm) Schedule C or C-EZ (Form 1040) Publication 535. Military tax credits deductible farm business interest Schedule F (Form 1040) Publications 225 and 535. Military tax credits deductible interest incurred to produce rents or royalties Schedule E (Form 1040) Publications 527 and 535. Military tax credits personal interest not deductible. Military tax credits Prev  Up  Next   Home   More Online Publications
Español

Inter-American Foundation

The Inter-American Foundation provides grant support to Latin American and Carribean grass-roots groups and non-governmental organizations with creative self-help ideas.

Contact the Agency or Department

Website: Inter-American Foundation

E-mail: (Grant Applications)

Address: 1331 Pennsylvania Ave NW
Suite 1200

Washington, DC 20004

Phone Number: (202) 360-4530

The Military Tax Credits

Military tax credits Publication 80 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Future Developments For the latest information about developments related to Publication 80 (Circular SS), such as legislation enacted after it was published, go to www. Military tax credits irs. Military tax credits gov/pub80. Military tax credits What's New Social security and Medicare tax for 2014. Military tax credits  The social security tax rate is 6. Military tax credits 2% each for the employee and employer, unchanged from 2013. Military tax credits The social security wage base limit is $117,000. Military tax credits The Medicare tax rate is 1. Military tax credits 45% each for the employee and employer, unchanged from 2013. Military tax credits There is no wage base limit for Medicare tax. Military tax credits Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Military tax credits Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. Military tax credits Change of responsible party. Military tax credits . Military tax credits  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. Military tax credits Form 8822-B must be filed within 60 days of the change. Military tax credits If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Military tax credits For a definition of “responsible party”, see the Form 8822-B instructions. Military tax credits Same-sex marriage. Military tax credits  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Military tax credits For more information, see Revenue Ruling 2013-17, 2013-38 I. Military tax credits R. Military tax credits B. Military tax credits 201, available at www. Military tax credits irs. Military tax credits gov/irb/2013-38_IRB/ar07. Military tax credits html. Military tax credits Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Military tax credits Notice 2013-61, 2013-44 I. Military tax credits R. Military tax credits B. Military tax credits 432, is available at www. Military tax credits irs. Military tax credits gov/irb/2013-44_IRB/ar10. Military tax credits html. Military tax credits Reminders Additional Medicare Tax withholding. Military tax credits  In addition to withholding Medicare tax at 1. Military tax credits 45%, you must withhold a 0. Military tax credits 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Military tax credits You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Military tax credits Additional Medicare Tax is only imposed on the employee. Military tax credits There is no employer share of Additional Medicare Tax. Military tax credits All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Military tax credits For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Employment and Payments , in section 12. Military tax credits For more information on Additional Medicare Tax, visit IRS. Military tax credits gov and enter “Additional Medicare Tax” in the search box. Military tax credits Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Military tax credits  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. Military tax credits Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Military tax credits For more information, visit IRS. Military tax credits gov and enter “work opportunity tax credit” in the search box. Military tax credits Outsourcing payroll duties. Military tax credits  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. Military tax credits The employer remains responsible if the third party fails to perform any required action. Military tax credits If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. Military tax credits gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. Military tax credits Residents of the Philippines working in the Commonwealth of the Northern Mariana Islands (CNMI). Military tax credits  The IRS will not assert that an employer has understated liability for social security and Medicare taxes because they failed to treat services performed before January 1, 2015, in the CNMI by a resident of the Philippines as employment as defined under Internal Revenue Code section 3121(b). Military tax credits For more information, see Announcement 2012-43, 2012-51 I. Military tax credits R. Military tax credits B. Military tax credits 723, available at www. Military tax credits irs. Military tax credits gov/irb/2012-51_IRB/ar15. Military tax credits html. Military tax credits CNMI government employees now subject to social security and Medicare taxes. Military tax credits  Beginning in the fourth calendar quarter of 2012, CNMI government employees are subject to social security and Medicare taxes. Military tax credits COBRA premium assistance credit. Military tax credits  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010, and to premiums paid for up to 15 months. Military tax credits See COBRA premium assistance credit in Publication 15 (Circular E), Employer's Tax Guide. Military tax credits You can get Publication 15 (Circular E) at IRS. Military tax credits gov. Military tax credits You must receive written notice from the IRS to file Form 944. Military tax credits  If you have been filing Forms 941-SS and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941-SS, you must contact the IRS to request to file Form 944. Military tax credits You must receive written notice from the IRS to file Form 944 instead of Forms 941-SS before you may file this form. Military tax credits For more information on requesting to file Form 944 visit IRS. Military tax credits gov and enter “file employment taxes annually” in the search box. Military tax credits Federal employers in the CNMI. Military tax credits  The U. Military tax credits S. Military tax credits Treasury Department and the CNMI Division of Revenue and Taxation entered into an agreement under 5 USC 5517 in December 2006. Military tax credits Under this agreement, all federal employers (including the Department of Defense) are required to withhold CNMI income taxes (rather than federal income taxes) and deposit the CNMI taxes with the CNMI Treasury for employees who are subject to CNMI taxes and whose regular place of federal employment is in the CNMI. Military tax credits Federal employers are also required to file quarterly and annual reports with the CNMI Division of Revenue and Taxation. Military tax credits For questions, contact the CNMI Division of Revenue and Taxation. Military tax credits Change of address. Military tax credits  Use Form 8822-B to notify the IRS of an address change. Military tax credits Do not mail Form 8822-B with your employment tax return. Military tax credits Federal tax deposits must be made by electronic funds transfer. Military tax credits  You must use electronic funds transfer to make all federal tax deposits. Military tax credits Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Military tax credits If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Military tax credits Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Military tax credits EFTPS is a free service provided by the Department of Treasury. Military tax credits Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Military tax credits For more information on making federal tax deposits, see How To Deposit in section 8. Military tax credits For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www. Military tax credits eftps. Military tax credits gov or call 1-800-555-4477 (U. Military tax credits S. Military tax credits Virgin Islands only) or 303-967-5916 (toll call) or 1-800-733-4829 (TDD). Military tax credits Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Military tax credits Electronic filing and payment. Military tax credits  Using electronic options can make filing a return and paying your federal tax easier. Military tax credits Use the Electronic Federal Tax Payment System (EFTPS) to make deposits or pay in full, whether you rely on a tax professional or prepare your own taxes. Military tax credits You can use IRS e-file to file certain returns. Military tax credits If there is a balance due on the return, you can e-file and e-pay in a single step by authorizing an electronic funds withdrawal (EFW) from your bank account while e-filing. Military tax credits Do not use EFW to pay taxes that are required to be deposited. Military tax credits Visit the IRS website at www. Military tax credits irs. Military tax credits gov/efile for more information on filing electronically. Military tax credits For more information on paying your taxes using EFW, visit the IRS website at www. Military tax credits irs. Military tax credits gov/e-pay. Military tax credits A fee may be charged to file electronically. Military tax credits For EFTPS, visit www. Military tax credits eftps. Military tax credits gov or call EFTPS Customer Service at 1-800-555-4477 (U. Military tax credits S. Military tax credits Virgin Islands only) or 303-967-5916 (toll call). Military tax credits For electronic filing of Forms W-2AS, W-2CM, W-2GU, W-2VI, Wage and Tax Statements; W-3SS, Transmittal of Wage and Tax Statements; and W-2c, Corrected Wage and Tax Statement, visit www. Military tax credits socialsecurity. Military tax credits gov/employer. Military tax credits If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. Military tax credits If a valid EIN is not provided, the return or payment will not be processed. Military tax credits This may result in penalties and delays in processing your return or payment. Military tax credits Electronic option for filing Forms W-2AS, W-2CM, W-2GU, or W-2VI. Military tax credits  Employers in American Samoa, the CNMI, Guam, and the U. Military tax credits S. Military tax credits Virgin Islands can now use the Social Security Administration's W-2 Online service to create, save, print, and submit up to 50 Forms W-2AS, W-2CM, W-2GU, or W-2VI at a time over the Internet. Military tax credits Form W-3SS will be generated automatically based on your Forms W-2AS, W-2CM, W-2GU, or W-2VI. Military tax credits For more information, visit Social Security Administration's SSA website at www. Military tax credits ssa. Military tax credits gov/bso/bsowelcome. Military tax credits htm. Military tax credits Credit or debit card payments. Military tax credits  For information on paying your taxes with a credit or debit card, visit the IRS website at www. Military tax credits irs. Military tax credits gov/e-pay. Military tax credits However, do not use credit or debit cards to make federal tax deposits. Military tax credits Hiring new employees. Military tax credits  Record the number and name from each new employee's social security card. Military tax credits An employee who does not have a social security card should apply for one on Form SS-5, Application for a Social Security Card. Military tax credits See section 3. Military tax credits Reporting discrepancies between Forms 941-SS (or Form 944) and Forms W-2. Military tax credits  File Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, to explain certain wage, tax, and payment discrepancies between Forms 941-SS (or Form 944), and Forms W-2 that were caused by acquisitions, statutory mergers, or consolidations. Military tax credits For more information, see the Instructions for Schedule D (Form 941). Military tax credits Apply for an employer identification number (EIN) online. Military tax credits  You can apply for an EIN online by visiting IRS. Military tax credits gov and clicking on the Apply for an EIN Online link under Tools. Military tax credits Dishonored payments. Military tax credits  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. Military tax credits The penalty is $25 or 2% of the payment, whichever is more. Military tax credits However, the penalty on dishonored payments of $24. Military tax credits 99 or less is an amount equal to the payment. Military tax credits For example, a dishonored payment of $18 is charged a penalty of $18. Military tax credits Private delivery services. Military tax credits  You can use certain private delivery services designated by the IRS to send tax returns or payments. Military tax credits The list includes only the following: DHL Express (DHL): DHL Same Day Service. Military tax credits Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Military tax credits United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Military tax credits M. Military tax credits , UPS Worldwide Express Plus, and UPS Worldwide Express. Military tax credits For the IRS mailing address to use if you are using a private delivery service, go to IRS. Military tax credits gov and enter “private delivery service” in the search box. Military tax credits Your private delivery service can tell you how to get written proof of the mailing date. Military tax credits Private delivery services cannot deliver items to P. Military tax credits O. Military tax credits boxes. Military tax credits You must use the U. Military tax credits S. Military tax credits Postal Service to mail any item to an IRS P. Military tax credits O. Military tax credits box address. Military tax credits Recordkeeping. Military tax credits  Keep all records of employment taxes for 4 years. Military tax credits These should be available for IRS review. Military tax credits There is no required format for such records, but they should include your EIN; the amounts and dates of all wage payments (including fringe benefits) and tips reported; the names, addresses, and occupations of employees receiving such payments and their social security numbers; copies of returns filed; dates of employment; and the dates and amounts of deposits made. Military tax credits Farm employers must keep a record of the name, permanent address, and EIN of each crew leader. Military tax credits See Farm Crew Leaders in section 2. Military tax credits Disregarded entities and qualified subchapter S subsidiaries (QSubs). Military tax credits  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Military tax credits Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. Military tax credits See Regulations sections 1. Military tax credits 1361-4(a)(7) and 301. Military tax credits 7701-2(c)(2)(iv). Military tax credits Photographs of missing children. Military tax credits  The IRS is a proud partner with the National Center for Missing and Exploited Children. Military tax credits Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Military tax credits You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Military tax credits Calendar   If any date for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Military tax credits A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. Military tax credits However, a statewide legal holiday does not delay the due date of federal tax deposits. Military tax credits See Deposits on Business Days Only in section 8. Military tax credits For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Military tax credits S. Military tax credits Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. Military tax credits See Private delivery services under Reminders. Military tax credits The following are important dates and responsibilities. Military tax credits Also see Publication 509, Tax Calendars. Military tax credits By January 31. Military tax credits   Furnish wage and tax statements to employees. Military tax credits Give each employee a completed Form W-2AS, W-2CM, W-2GU, or W-2VI. Military tax credits See section 10 for more information. Military tax credits File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the IRS. Military tax credits If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. Military tax credits U. Military tax credits S. Military tax credits Virgin Islands employers only must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Military tax credits Pay or deposit (if more than $500) any balance of the tax due. Military tax credits If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Military tax credits File Form 944 with the IRS if you were notified by the IRS to file Form 944 instead of quarterly Forms 941-SS. Military tax credits If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Military tax credits By February 28. Military tax credits  File paper wage and tax statements with the Social Security Administration (SSA). Military tax credits File Copy A of Forms W-2AS, W-2CM, W-2GU, or W-2VI, and Form W-3SS with the Social Security Administration (SSA). Military tax credits For electronically filed returns, see By March 31 next. Military tax credits By March 31. Military tax credits  File electronic Forms W-2AS, W-2CM, W-2GU, or W-2VI with the SSA. Military tax credits Visit the SSA's Reporting Instructions & Information webpage at www. Military tax credits socialsecurity. Military tax credits gov/employer for more information. Military tax credits By April 30, July 31, October 31, and January 31. Military tax credits  File Form 941-SS with the IRS. Military tax credits If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Military tax credits Do not file Forms 941-SS for these quarters if you have been notified to file Form 944 and you did not request to file quarterly Forms 941-SS. Military tax credits Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $500. Military tax credits If $500 or less, carry it over to the next quarter. Military tax credits See section 11 for more information. Military tax credits Prev  Up  Next   Home   More Online Publications