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

One Source Talent Chicago

Filing A Amended Tax Return Form 1040xPrintable 1040ez FormFile State Tax Returns FreeFile Back Taxes OnlineState Income TaxAmend 2009 Tax Return OnlineFiling 1040xTax Return For Students 2011Irs 1040ezAmended Taxes2011 1040 Form2013 Form 1040ezFederal Amended Tax FormsH&r Block Free Tax PrepAmmended Tax ReturnsIrs Amended Return FormTax Forms For 20081040ez FormsH And R Block1040 Easy Form 2014How To File Amended 2012 Tax ReturnFreetaxusa 2012Where Can I Do My State Taxes Online For FreePrintable 1040ez FormFree Federal And State Tax FilingFree E File 2011How Do You Amend Your Taxes2012 Tax Filing OnlineFederal Tax Forms For 2011Turbotax Free State EfileIrs1040ez FormState Tax Forms InstructionsHow Can I File An Amended Tax ReturnCan I File 2010 Taxes In 2012I Need To File 2011 Tax ReturnCt 1040nr PyTaxcut OnlineFree State Tax Returns With FederalFile Past Taxes For FreeIllinois 1040x

One Source Talent Chicago

One source talent chicago 15. One source talent chicago   Selling Your Home Table of Contents Reminder Introduction Useful Items - You may want to see: Main Home Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Business Use or Rental of Home Reporting the SaleSeller-financed mortgage. One source talent chicago More information. One source talent chicago Special SituationsException for sales to related persons. One source talent chicago Recapturing (Paying Back) a Federal Mortgage Subsidy Reminder Home sold with undeducted points. One source talent chicago  If you have not deducted all the points you paid to secure a mortgage on your old home, you may be able to deduct the remaining points in the year of the sale. One source talent chicago See Mortgage ending early under Points in chapter 23. One source talent chicago Introduction This chapter explains the tax rules that apply when you sell your main home. One source talent chicago In most cases, your main home is the one in which you live most of the time. One source talent chicago If you sold your main home in 2013, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). One source talent chicago See Excluding the Gain , later. One source talent chicago Generally, if you can exclude all the gain, you do not need to report the sale on your tax return. One source talent chicago If you have gain that cannot be excluded, it is taxable. One source talent chicago Report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040). One source talent chicago You may also have to complete Form 4797, Sales of Business Property. One source talent chicago See Reporting the Sale , later. One source talent chicago If you have a loss on the sale, you generally cannot deduct it on your return. One source talent chicago However, you may need to report it. One source talent chicago See Reporting the Sale , later. One source talent chicago The following are main topics in this chapter. One source talent chicago Figuring gain or loss. One source talent chicago Basis. One source talent chicago Excluding the gain. One source talent chicago Ownership and use tests. One source talent chicago Reporting the sale. One source talent chicago Other topics include the following. One source talent chicago Business use or rental of home. One source talent chicago Recapturing a federal mortgage subsidy. One source talent chicago Useful Items - You may want to see: Publication 523 Selling Your Home 530 Tax Information for Homeowners 547 Casualties, Disasters, and Thefts Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 982 Reduction of Tax Attributes Due to Discharge of Indebtedness 8828 Recapture of Federal Mortgage Subsidy 8949 Sales and Other Dispositions of Capital Assets Main Home This section explains the term “main home. One source talent chicago ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. One source talent chicago To exclude gain under the rules of this chapter, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. One source talent chicago Land. One source talent chicago   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. One source talent chicago However, if you sell vacant land used as part of your main home and that is adjacent to it, you may be able to exclude the gain from the sale under certain circumstances. One source talent chicago See Vacant land under Main Home in Publication 523 for more information. One source talent chicago Example. One source talent chicago You buy a piece of land and move your main home to it. One source talent chicago Then you sell the land on which your main home was located. One source talent chicago This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. One source talent chicago More than one home. One source talent chicago   If you have more than one home, you can exclude gain only from the sale of your main home. One source talent chicago You must include in income gain from the sale of any other home. One source talent chicago If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time during the year. One source talent chicago Example 1. One source talent chicago You own two homes, one in New York and one in Florida. One source talent chicago From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. One source talent chicago In the absence of facts and circumstances indicating otherwise, the New York home is your main home. One source talent chicago You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. One source talent chicago Example 2. One source talent chicago You own a house, but you live in another house that you rent. One source talent chicago The rented house is your main home. One source talent chicago Example 3. One source talent chicago You own two homes, one in Virginia and one in New Hampshire. One source talent chicago In 2009 and 2010, you lived in the Virginia home. One source talent chicago In 2011 and 2012, you lived in the New Hampshire home. One source talent chicago In 2013, you lived again in the Virginia home. One source talent chicago Your main home in 2009, 2010, and 2013 is the Virginia home. One source talent chicago Your main home in 2011 and 2012 is the New Hampshire home. One source talent chicago You would be eligible to exclude gain from the sale of either home (but not both) in 2013. One source talent chicago Property used partly as your main home. One source talent chicago   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. One source talent chicago For details, see Business Use or Rental of Home , later. One source talent chicago Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. One source talent chicago Subtract the adjusted basis from the amount realized to get your gain or loss. One source talent chicago     Selling price     − Selling expenses       Amount realized       Amount realized     − Adjusted basis       Gain or loss   Selling Price The selling price is the total amount you receive for your home. One source talent chicago It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. One source talent chicago Payment by employer. One source talent chicago   You may have to sell your home because of a job transfer. One source talent chicago If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. One source talent chicago Your employer will include it as wages in box 1 of your Form W-2, and you will include it in your income on Form 1040, line 7. One source talent chicago Option to buy. One source talent chicago   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. One source talent chicago If the option is not exercised, you must report the amount as ordinary income in the year the option expires. One source talent chicago Report this amount on Form 1040, line 21. One source talent chicago Form 1099-S. One source talent chicago   If you received Form 1099-S, Proceeds From Real Estate Transactions, box 2 (Gross proceeds) should show the total amount you received for your home. One source talent chicago   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. One source talent chicago Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. One source talent chicago Amount Realized The amount realized is the selling price minus selling expenses. One source talent chicago Selling expenses. One source talent chicago   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. One source talent chicago ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. One source talent chicago This adjusted basis must be determined before you can figure gain or loss on the sale of your home. One source talent chicago For information on how to figure your home's adjusted basis, see Determining Basis , later. One source talent chicago Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. One source talent chicago Gain on sale. One source talent chicago   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, in most cases is taxable. One source talent chicago Loss on sale. One source talent chicago   If the amount realized is less than the adjusted basis, the difference is a loss. One source talent chicago A loss on the sale of your main home cannot be deducted. One source talent chicago Jointly owned home. One source talent chicago   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. One source talent chicago Separate returns. One source talent chicago   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. One source talent chicago Your ownership interest is generally determined by state law. One source talent chicago Joint owners not married. One source talent chicago   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. One source talent chicago Each of you applies the rules discussed in this chapter on an individual basis. One source talent chicago Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. One source talent chicago Foreclosure or repossession. One source talent chicago   If your home was foreclosed on or repossessed, you have a disposition. One source talent chicago See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, to determine if you have ordinary income, gain, or loss. One source talent chicago Abandonment. One source talent chicago   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. One source talent chicago Trading (exchanging) homes. One source talent chicago   If you trade your old home for another home, treat the trade as a sale and a purchase. One source talent chicago Example. One source talent chicago You owned and lived in a home with an adjusted basis of $41,000. One source talent chicago A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. One source talent chicago This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 – $41,000). One source talent chicago If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). One source talent chicago Transfer to spouse. One source talent chicago   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss. One source talent chicago This is true even if you receive cash or other consideration for the home. One source talent chicago As a result, the rules in this chapter do not apply. One source talent chicago More information. One source talent chicago   If you need more information, see Transfer to spouse in Publication 523 and Property Settlements in Publication 504, Divorced or Separated Individuals. One source talent chicago Involuntary conversion. One source talent chicago   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. One source talent chicago This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations . One source talent chicago Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. One source talent chicago Your basis in your home is determined by how you got the home. One source talent chicago Generally, your basis is its cost if you bought it or built it. One source talent chicago If you got it in some other way (inheritance, gift, etc. One source talent chicago ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. One source talent chicago While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. One source talent chicago The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. One source talent chicago See Adjusted Basis , later. One source talent chicago You can find more information on basis and adjusted basis in chapter 13 of this publication and in Publication 523. One source talent chicago Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. One source talent chicago Purchase. One source talent chicago   If you bought your home, your basis is its cost to you. One source talent chicago This includes the purchase price and certain settlement or closing costs. One source talent chicago In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. One source talent chicago If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed in Publication 523. One source talent chicago Settlement fees or closing costs. One source talent chicago   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. One source talent chicago You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. One source talent chicago A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). One source talent chicago    Chapter 13 lists some of the settlement fees and closing costs that you can include in the basis of property, including your home. One source talent chicago It also lists some settlement costs that cannot be included in basis. One source talent chicago   Also see Publication 523 for additional items and a discussion of basis other than cost. One source talent chicago Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. One source talent chicago To figure your adjusted basis, you can use Worksheet 1 in Publication 523. One source talent chicago Do not use Worksheet 1 if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. One source talent chicago Increases to basis. One source talent chicago   These include the following. One source talent chicago Additions and other improvements that have a useful life of more than 1 year. One source talent chicago Special assessments for local improvements. One source talent chicago Amounts you spent after a casualty to restore damaged property. One source talent chicago Improvements. One source talent chicago   These add to the value of your home, prolong its useful life, or adapt it to new uses. One source talent chicago You add the cost of additions and other improvements to the basis of your property. One source talent chicago   For example, putting a recreation room or another bathroom in your unfinished basement, putting up a new fence, putting in new plumbing or wiring, putting on a new roof, or paving your unpaved driveway are improvements. One source talent chicago An addition to your house, such as a new deck, a sunroom, or a new garage, is also an improvement. One source talent chicago Repairs. One source talent chicago   These maintain your home in good condition but do not add to its value or prolong its life. One source talent chicago You do not add their cost to the basis of your property. One source talent chicago   Examples of repairs include repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes. One source talent chicago Decreases to basis. One source talent chicago   These include the following. One source talent chicago Discharge of qualified principal residence indebtedness that was excluded from income. One source talent chicago Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. One source talent chicago For details, see Publication 4681. One source talent chicago Gain you postponed from the sale of a previous home before May 7, 1997. One source talent chicago Deductible casualty losses. One source talent chicago Insurance payments you received or expect to receive for casualty losses. One source talent chicago Payments you received for granting an easement or right-of-way. One source talent chicago Depreciation allowed or allowable if you used your home for business or rental purposes. One source talent chicago Energy-related credits allowed for expenditures made on the residence. One source talent chicago (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. One source talent chicago ) Adoption credit you claimed for improvements added to the basis of your home. One source talent chicago Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. One source talent chicago Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. One source talent chicago An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. One source talent chicago District of Columbia first-time homebuyer credit (allowed on the purchase of a principal residence in the District of Columbia beginning on August 5, 1997 and before January 1, 2012). One source talent chicago General sales taxes (allowed beginning 2004 and ending before 2014) claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. One source talent chicago Discharges of qualified principal residence indebtedness. One source talent chicago   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. One source talent chicago This exclusion applies to discharges made after 2006 and before 2014. One source talent chicago If you choose to exclude this income, you must reduce (but not below zero) the basis of the principal residence by the amount excluded from your gross income. One source talent chicago   File Form 982 with your tax return. One source talent chicago See the form's instructions for detailed information. One source talent chicago Recordkeeping. One source talent chicago You should keep records to prove your home's adjusted basis. One source talent chicago Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. One source talent chicago But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. One source talent chicago Keep records proving the basis of both homes as long as they are needed for tax purposes. One source talent chicago The records you should keep include: Proof of the home's purchase price and purchase expenses, Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis, Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain, Any Form 982 you filed to report any discharge of qualified principal residence indebtedness, Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997, and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. One source talent chicago Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. One source talent chicago This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. One source talent chicago To qualify, you must meet the ownership and use tests described later. One source talent chicago You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. One source talent chicago You can use Worksheet 2 in Publication 523 to figure the amount of your exclusion and your taxable gain, if any. One source talent chicago If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. One source talent chicago See Publication 505, Tax Withholding and Estimated Tax. One source talent chicago Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. One source talent chicago You meet the ownership test. One source talent chicago You meet the use test. One source talent chicago During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. One source talent chicago For details on gain allocated to periods of nonqualified use, see Periods of nonqualified use , later. One source talent chicago You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . One source talent chicago Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. One source talent chicago This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). One source talent chicago Exception. One source talent chicago   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. One source talent chicago However, the maximum amount you may be able to exclude will be reduced. One source talent chicago See Reduced Maximum Exclusion , later. One source talent chicago Example 1—home owned and occupied for at least 2 years. One source talent chicago Mya bought and moved into her main home in September 2011. One source talent chicago She sold the home at a gain in October 2013. One source talent chicago During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. One source talent chicago She meets the ownership and use tests. One source talent chicago Example 2—ownership test met but use test not met. One source talent chicago Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. One source talent chicago He later sold the home for a gain. One source talent chicago He owned the home during the entire 5-year period ending on the date of sale. One source talent chicago He meets the ownership test but not the use test. One source talent chicago He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). One source talent chicago Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. One source talent chicago You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. One source talent chicago Temporary absence. One source talent chicago   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. One source talent chicago The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. One source talent chicago Example 1. One source talent chicago David Johnson, who is single, bought and moved into his home on February 1, 2011. One source talent chicago Each year during 2011 and 2012, David left his home for a 2-month summer vacation. One source talent chicago David sold the house on March 1, 2013. One source talent chicago Although the total time David used his home is less than 2 years (21 months), he meets the requirement and may exclude gain. One source talent chicago The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. One source talent chicago Example 2. One source talent chicago Professor Paul Beard, who is single, bought and moved into a house on August 18, 2010. One source talent chicago He lived in it as his main home continuously until January 5, 2012, when he went abroad for a 1-year sabbatical leave. One source talent chicago On February 6, 2013, 1 month after returning from the leave, Paul sold the house at a gain. One source talent chicago Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. One source talent chicago He cannot exclude any part of his gain, because he did not use the residence for the required 2 years. One source talent chicago Ownership and use tests met at different times. One source talent chicago   You can meet the ownership and use tests during different 2-year periods. One source talent chicago However, you must meet both tests during the 5-year period ending on the date of the sale. One source talent chicago Example. One source talent chicago Beginning in 2002, Helen Jones lived in a rented apartment. One source talent chicago The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. One source talent chicago In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. One source talent chicago On July 12, 2013, while still living in her daughter's home, she sold her condominium. One source talent chicago Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. One source talent chicago She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). One source talent chicago She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). One source talent chicago The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. One source talent chicago Cooperative apartment. One source talent chicago   If you sold stock as a tenant-stockholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitles you to occupy as your main home for at least 2 years. One source talent chicago Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. One source talent chicago Exception for individuals with a disability. One source talent chicago   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. One source talent chicago Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. One source talent chicago If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. One source talent chicago Previous home destroyed or condemned. One source talent chicago   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. One source talent chicago This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home. One source talent chicago Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. One source talent chicago Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. One source talent chicago   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on “qualified official extended duty” as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. One source talent chicago You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on "qualified official extended duty" or as an enrolled volunteer or volunteer leader of the Peace Corps. One source talent chicago This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. One source talent chicago   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. One source talent chicago For more information about the suspension of the 5-year test period, see Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps in Publication 523. One source talent chicago Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. One source talent chicago (But see Special rules for joint returns , next. One source talent chicago ) Special rules for joint returns. One source talent chicago   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. One source talent chicago You are married and file a joint return for the year. One source talent chicago Either you or your spouse meets the ownership test. One source talent chicago Both you and your spouse meet the use test. One source talent chicago During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. One source talent chicago If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. One source talent chicago For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. One source talent chicago Example 1—one spouse sells a home. One source talent chicago Emily sells her home in June 2013 for a gain of $300,000. One source talent chicago She marries Jamie later in the year. One source talent chicago She meets the ownership and use tests, but Jamie does not. One source talent chicago Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. One source talent chicago The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. One source talent chicago Example 2—each spouse sells a home. One source talent chicago The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. One source talent chicago He meets the ownership and use tests on his home, but Emily does not. One source talent chicago Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. One source talent chicago However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. One source talent chicago Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. One source talent chicago The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. One source talent chicago Sale of main home by surviving spouse. One source talent chicago   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. One source talent chicago   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. One source talent chicago The sale or exchange took place after 2008. One source talent chicago The sale or exchange took place no more than 2 years after the date of death of your spouse. One source talent chicago You have not remarried. One source talent chicago You and your spouse met the use test at the time of your spouse's death. One source talent chicago You or your spouse met the ownership test at the time of your spouse's death. One source talent chicago Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. One source talent chicago Example. One source talent chicago   Harry owned and used a house as his main home since 2009. One source talent chicago Harry and Wilma married on July 1, 2013, and from that date they use Harry's house as their main home. One source talent chicago Harry died on August 15, 2013, and Wilma inherited the property. One source talent chicago Wilma sold the property on September 3, 2013, at which time she had not remarried. One source talent chicago Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. One source talent chicago Home transferred from spouse. One source talent chicago   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. One source talent chicago Use of home after divorce. One source talent chicago   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. One source talent chicago Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. One source talent chicago This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. One source talent chicago In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. One source talent chicago A change in place of employment. One source talent chicago Health. One source talent chicago Unforeseen circumstances. One source talent chicago Unforeseen circumstances. One source talent chicago   The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home. One source talent chicago   See Publication 523 for more information and to use Worksheet 3 to figure your reduced maximum exclusion. One source talent chicago Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income. One source talent chicago But you must meet the ownership and use tests. One source talent chicago Periods of nonqualified use. One source talent chicago   In most cases, gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gains are allocated to periods of nonqualified use. One source talent chicago Nonqualified use is any period after 2008 during which neither you nor your spouse (or your former spouse) used the property as a main home with the following exceptions. One source talent chicago Exceptions. One source talent chicago   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. One source talent chicago The gain resulting from the sale of the property is allocated between qualified and nonqualified use periods based on the amount of time the property was held for qualified and nonqualified use. One source talent chicago Gain from the sale or exchange of a main home allocable to periods of qualified use will continue to qualify for the exclusion for the sale of your main home. One source talent chicago Gain from the sale or exchange of property allocable to nonqualified use will not qualify for the exclusion. One source talent chicago Calculation. One source talent chicago   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain by the following fraction:   Total nonqualified use during the period of ownership after 2008      Total period of ownership     This calculation can be found in Worksheet 2, line 10, in Publication 523. One source talent chicago Example 1. One source talent chicago On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. One source talent chicago She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. One source talent chicago The house was rented from June 1, 2009, to March 31, 2011. One source talent chicago Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. One source talent chicago Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. One source talent chicago During the 5-year period ending on the date of the sale (January 31, 2008-January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. One source talent chicago Five Year Period Used as  Home Used as  Rental 1/31/08 – 5/31/09 16 months       6/1/09 – 3/31/11   22 months 4/1/11 – 1/31/13 22 months         38 months 22 months During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. One source talent chicago Amy divides 668 by 2,080 and obtains a decimal (rounded to at least three decimal places) of 0. One source talent chicago 321. One source talent chicago To figure her gain attributable to the period of nonqualified use, she multiplies $190,000 (the gain not attributable to the $10,000 depreciation deduction) by 0. One source talent chicago 321. One source talent chicago Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain. One source talent chicago Example 2. One source talent chicago William owned and used a house as his main home from 2007 through 2010. One source talent chicago On January 1, 2011, he moved to another state. One source talent chicago He rented his house from that date until April 30, 2013, when he sold it. One source talent chicago During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. One source talent chicago He must report the sale on Form 4797 because it was rental property at the time of sale. One source talent chicago Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. One source talent chicago Because he met the ownership and use tests, he can exclude gain up to $250,000. One source talent chicago However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. One source talent chicago Depreciation after May 6, 1997. One source talent chicago   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. One source talent chicago If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. One source talent chicago See Publication 544 for more information. One source talent chicago Property used partly for business or rental. One source talent chicago   If you used property partly as a home and partly for business or to produce rental income, see Publication 523. One source talent chicago Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and do not qualify to exclude all of it, You have a gain and choose not to exclude it, or You received Form 1099-S. One source talent chicago If any of these conditions apply, report the entire gain or loss. One source talent chicago For details on how to report the gain or loss, see the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949. One source talent chicago If you used the home for business or to produce rental income, you may have to use Form 4797 to report the sale of the business or rental part (or the sale of the entire property if used entirely for business or rental). One source talent chicago See Business Use or Rental of Home in Publication 523 and the Instructions for Form 4797. One source talent chicago Installment sale. One source talent chicago    Some sales are made under arrangements that provide for part or all of the selling price to be paid in a later year. One source talent chicago These sales are called “installment sales. One source talent chicago ” If you finance the buyer's purchase of your home yourself instead of having the buyer get a loan or mortgage from a bank, you probably have an installment sale. One source talent chicago You may be able to report the part of the gain you cannot exclude on the installment basis. One source talent chicago    Use Form 6252, Installment Sale Income, to report the sale. One source talent chicago Enter your exclusion on line 15 of Form 6252. One source talent chicago Seller-financed mortgage. One source talent chicago   If you sell your home and hold a note, mortgage, or other financial agreement, the payments you receive in most cases consist of both interest and principal. One source talent chicago You must separately report as interest income the interest you receive as part of each payment. One source talent chicago If the buyer of your home uses the property as a main or second home, you must also report the name, address, and social security number (SSN) of the buyer on line 1 of Schedule B (Form 1040A or 1040). One source talent chicago The buyer must give you his or her SSN, and you must give the buyer your SSN. One source talent chicago Failure to meet these requirements may result in a $50 penalty for each failure. One source talent chicago If either you or the buyer does not have and is not eligible to get an SSN, see Social Security Number in chapter 1. One source talent chicago More information. One source talent chicago   For more information on installment sales, see Publication 537, Installment Sales. One source talent chicago Special Situations The situations that follow may affect your exclusion. One source talent chicago Sale of home acquired in a like-kind exchange. One source talent chicago   You cannot claim the exclusion if: You acquired your home in a like-kind exchange (also known as a section 1031 exchange), or your basis in your home is determined by reference to the basis of the home in the hands of the person who acquired the property in a like-kind exchange (for example, you received the home from that person as a gift), and You sold the home during the 5-year period beginning with the date your home was acquired in the like-kind exchange. One source talent chicago Gain from a like-kind exchange is not taxable at the time of the exchange. One source talent chicago This means that gain will not be taxed until you sell or otherwise dispose of the property you receive. One source talent chicago To defer gain from a like-kind exchange, you must have exchanged business or investment property for business or investment property of a like kind. One source talent chicago For more information about like-kind exchanges, see Publication 544, Sales and Other Dispositions of Assets. One source talent chicago Home relinquished in a like-kind exchange. One source talent chicago   If you use your main home partly for business or rental purposes and then exchange the home for another property, see Publication 523. One source talent chicago Expatriates. One source talent chicago   You cannot claim the exclusion if the expatriation tax applies to you. One source talent chicago The expatriation tax applies to certain U. One source talent chicago S. One source talent chicago citizens who have renounced their citizenship (and to certain long-term residents who have ended their residency). One source talent chicago For more information about the expatriation tax, see Expatriation Tax in chapter 4 of Publication 519, U. One source talent chicago S. One source talent chicago Tax Guide for Aliens. One source talent chicago Home destroyed or condemned. One source talent chicago   If your home was destroyed or condemned, any gain (for example, because of insurance proceeds you received) qualifies for the exclusion. One source talent chicago   Any part of the gain that cannot be excluded (because it is more than the maximum exclusion) can be postponed under the rules explained in: Publication 547, in the case of a home that was destroyed, or Publication 544, chapter 1, in the case of a home that was condemned. One source talent chicago Sale of remainder interest. One source talent chicago   Subject to the other rules in this chapter, you can choose to exclude gain from the sale of a remainder interest in your home. One source talent chicago If you make this choice, you cannot choose to exclude gain from your sale of any other interest in the home that you sell separately. One source talent chicago Exception for sales to related persons. One source talent chicago   You cannot exclude gain from the sale of a remainder interest in your home to a related person. One source talent chicago Related persons include your brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. One source talent chicago ), and lineal descendants (children, grandchildren, etc. One source talent chicago ). One source talent chicago Related persons also include certain corporations, partnerships, trusts, and exempt organizations. One source talent chicago Recapturing (Paying Back) a Federal Mortgage Subsidy If you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. One source talent chicago You recapture the benefit by increasing your federal income tax for the year of the sale. One source talent chicago You may have to pay this recapture tax even if you can exclude your gain from income under the rules discussed earlier; that exclusion does not affect the recapture tax. One source talent chicago Loans subject to recapture rules. One source talent chicago   The recapture applies to loans that: Came from the proceeds of qualified mortgage bonds, or Were based on mortgage credit certificates. One source talent chicago The recapture also applies to assumptions of these loans. One source talent chicago When recapture applies. One source talent chicago   Recapture of the federal mortgage subsidy applies only if you meet both of the following conditions. One source talent chicago You sell or otherwise dispose of your home at a gain within the first 9 years after the date you close your mortgage loan. One source talent chicago Your income for the year of disposition is more than that year's adjusted qualifying income for your family size for that year (related to the income requirements a person must meet to qualify for the federally subsidized program). One source talent chicago When recapture does not apply. One source talent chicago   Recapture does not apply in any of the following situations. One source talent chicago Your mortgage loan was a qualified home improvement loan (QHIL) of not more than $15,000 used for alterations, repairs, and improvements that protect or improve the basic livability or energy efficiency of your home. One source talent chicago Your mortgage loan was a QHIL of not more than $150,000 in the case of a QHIL used to repair damage from Hurricane Katrina to homes in the hurricane disaster area; a QHIL funded by a qualified mortgage bond that is a qualified Gulf Opportunity Zone Bond; or a QHIL for an owner-occupied home in the Gulf Opportunity Zone (GO Zone), Rita GO Zone, or Wilma GO Zone. One source talent chicago For more information, see Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma. One source talent chicago Also see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. One source talent chicago The home is disposed of as a result of your death. One source talent chicago You dispose of the home more than 9 years after the date you closed your mortgage loan. One source talent chicago You transfer the home to your spouse, or to your former spouse incident to a divorce, where no gain is included in your income. One source talent chicago You dispose of the home at a loss. One source talent chicago Your home is destroyed by a casualty, and you replace it on its original site within 2 years after the end of the tax year when the destruction happened. One source talent chicago The replacement period is extended for main homes destroyed in a federally declared disaster area, a Midwestern disaster area, the Kansas disaster area, and the Hurricane Katrina disaster area. One source talent chicago For more information, see Replacement Period in Publication 547. One source talent chicago You refinance your mortgage loan (unless you later meet the conditions listed previously under When recapture applies ). One source talent chicago Notice of amounts. One source talent chicago   At or near the time of settlement of your mortgage loan, you should receive a notice that provides the federally subsidized amount and other information you will need to figure your recapture tax. One source talent chicago How to figure and report the recapture. One source talent chicago    The recapture tax is figured on Form 8828. One source talent chicago If you sell your home and your mortgage is subject to recapture rules, you must file Form 8828 even if you do not owe a recapture tax. One source talent chicago Attach Form 8828 to your Form 1040. One source talent chicago For more information, see Form 8828 and its instructions. One source talent chicago Prev  Up  Next   Home   More Online Publications
Español

Better Business Bureaus (BBBs) are nonprofit organizations that encourage honest advertising and selling practices and are supported primarily by local businesses. They offer a variety of consumer services, including consumer education materials; business reports, particularly unanswered or unsettled complaints or other problems; mediation and arbitration services; and information about charities and other organizations that are seeking public donations. They also provide ratings (A, B, C, D, or F) of local companies to express the BBB's confidence that the company operates in a trustworthy manner and demonstrates a willingness to resolve customer concerns.

Akron, OH

Website: Better Business Bureau

Email: info@akronbbb.org

Address: Better Business Bureau
222 W. Market St.
Akron, OH 44303

Phone Number: 330-253-4590

Canton, OH

Website: Better Business Bureau http://www.bbb.org/

Email: info@cantonbbb.org

Address: Better Business Bureau
1434 Cleveland Ave., NW
Canton, OH 44703

Phone Number: 330-454-9401

Toll-free: 1-800-362-0494

Cincinnati, OH

Website: Better Business Bureau

Email: info@cincinnati.bbb.org

Address: Better Business Bureau
7 W. 7th St., Suite 1600
Cincinnati, OH 45202

Phone Number: 513-421-3015

Cleveland, OH

Website: Better Business Bureau

Email: info@cleveland.bbb.org

Address: Better Business Bureau
2800 Euclid Ave., 4th Floor
Cleveland, OH 44115

Phone Number: 216-241-7678

Toll-free: 1-800-233-0361

Columbus, OH

Website: Better Business Bureau

Email: info@columbus-ohbbb.org

Address: Better Business Bureau
1169 Dublin Rd.
Columbus, OH 43215-1005

Phone Number: 614-486-6336

Dayton, OH

Website: Better Business Bureau

Email: info@dayton.bbb.org

Address: Better Business Bureau
15 W. Fourth St., Suite 300
Dayton, OH 45402

Phone Number: 937-222-5825

Toll-free: 1-800-776-5301

Lima, OH

Website: Better Business Bureau

Email: info@limabbb.org

Address: Better Business Bureau
219 N. McDonel St.
Lima, OH 45801

Phone Number: 419-223-7010

Toledo, OH

Website: Better Business Bureau

Email: info@toledobbb.org

Address: Better Business Bureau
Integrity Pl.
7668 King's Pointe Rd.
Toledo, OH 43617

Phone Number: 419-531-3116

Toll-free: 1-800-743-4222

Youngstown, OH

Website: Better Business Bureau

Email: info@youngstown.bbb.org

Address: Better Business Bureau
PO Box 1495
Youngstown, OH 44501

Phone Number: 330-744-3111

The One Source Talent Chicago

One source talent chicago 20. One source talent chicago   Standard Deduction Table of Contents What's New Introduction Standard Deduction Amount Standard Deduction for Dependents Who Should ItemizeWhen to itemize. One source talent chicago Married persons who filed separate returns. One source talent chicago What's New Standard deduction increased. One source talent chicago  The standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2013 than it was for 2012. One source talent chicago The amount depends on your filing status. One source talent chicago You can use the 2013 Standard Deduction Tables in this chapter to figure your standard deduction. One source talent chicago Introduction This chapter discusses the following topics. One source talent chicago How to figure the amount of your standard deduction. One source talent chicago The standard deduction for dependents. One source talent chicago Who should itemize deductions. One source talent chicago Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. One source talent chicago If you have a choice, you can use the method that gives you the lower tax. One source talent chicago The standard deduction is a dollar amount that reduces your taxable income. One source talent chicago It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). One source talent chicago The standard deduction is higher for taxpayers who: Are 65 or older, or Are blind. One source talent chicago You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. One source talent chicago Persons not eligible for the standard deduction. One source talent chicago   Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or her return, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. One source talent chicago You are considered a dual-status alien if you were both a nonresident and resident alien during the year. One source talent chicago Note. One source talent chicago If you are a nonresident alien who is married to a U. One source talent chicago S. One source talent chicago citizen or resident alien at the end of the year, you can choose to be treated as a U. One source talent chicago S. One source talent chicago resident. One source talent chicago (See Publication 519, U. One source talent chicago S. One source talent chicago Tax Guide for Aliens. One source talent chicago ) If you make this choice, you can take the standard deduction. One source talent chicago If an exemption for you can be claimed on another person's return (such as your parents' return), your standard deduction may be limited. One source talent chicago See Standard Deduction for Dependents, later. One source talent chicago Standard Deduction Amount The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. One source talent chicago Generally, the standard deduction amounts are adjusted each year for inflation. One source talent chicago The standard deduction amounts for most people are shown in Table 20-1. One source talent chicago Decedent's final return. One source talent chicago   The standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. One source talent chicago However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. One source talent chicago Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and do not itemize deductions, you are entitled to a higher standard deduction. One source talent chicago You are considered 65 on the day before your 65th birthday. One source talent chicago Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. One source talent chicago Use Table 20-2 to figure the standard deduction amount. One source talent chicago Higher Standard Deduction for Blindness If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. One source talent chicago Not totally blind. One source talent chicago   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is 20 degrees or less. One source talent chicago   If your eye condition is not likely to improve beyond these limits, the statement should include this fact. One source talent chicago You must keep the statement in your records. One source talent chicago   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. One source talent chicago Spouse 65 or Older or Blind You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and cannot be claimed as a dependent by another taxpayer. One source talent chicago You cannot claim the higher standard deduction for an individual other than yourself and your spouse. One source talent chicago Examples The following examples illustrate how to determine your standard deduction using Tables 20-1 and 20-2. One source talent chicago Example 1. One source talent chicago Larry, 46, and Donna, 33, are filing a joint return for 2013. One source talent chicago Neither is blind, and neither can be claimed as a dependent. One source talent chicago They decide not to itemize their deductions. One source talent chicago They use Table 20-1. One source talent chicago Their standard deduction is $12,200. One source talent chicago Example 2. One source talent chicago The facts are the same as in Example 1 except that Larry is blind at the end of 2013. One source talent chicago Larry and Donna use Table 20-2. One source talent chicago Their standard deduction is $13,400. One source talent chicago Example 3. One source talent chicago Bill and Lisa are filing a joint return for 2013. One source talent chicago Both are over age 65. One source talent chicago Neither is blind, and neither can be claimed as a dependent. One source talent chicago If they do not itemize deductions, they use Table 20-2. One source talent chicago Their standard deduction is $14,600. One source talent chicago Standard Deduction for Dependents The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). One source talent chicago However, if the individual is 65 or older or blind, the standard deduction may be higher. One source talent chicago If you (or your spouse, if filing jointly) can be claimed as a dependent on someone else's return, use Table 20-3 to determine your standard deduction. One source talent chicago Earned income defined. One source talent chicago   Earned income is salaries, wages, tips, professional fees, and other amounts received as pay for work you actually perform. One source talent chicago    For purposes of the standard deduction, earned income also includes any part of a scholarship or fellowship grant that you must include in your gross income. One source talent chicago See Scholarships and fellowships in chapter 12 for more information on what qualifies as a scholarship or fellowship grant. One source talent chicago Example 1. One source talent chicago Michael is single. One source talent chicago His parents can claim an exemption for him on their 2013 tax return. One source talent chicago He has interest income of $780 and wages of $150. One source talent chicago He has no itemized deductions. One source talent chicago Michael uses Table 20-3 to find his standard deduction. One source talent chicago He enters $150 (his earned income) on line 1, $500 ($150 + $350) on line 3, $1,000 (the larger of $500 and $1,000) on line 5, and $6,100 on line 6. One source talent chicago His standard deduction, on line 7a, is $1,000 (the smaller of $1,000 and $6,100). One source talent chicago Example 2. One source talent chicago Joe, a 22-year-old full-time college student, can be claimed as a dependent on his parents' 2013 tax return. One source talent chicago Joe is married and files a separate return. One source talent chicago His wife does not itemize deductions on her separate return. One source talent chicago Joe has $1,500 in interest income and wages of $3,800. One source talent chicago He has no itemized deductions. One source talent chicago Joe finds his standard deduction by using Table 20-3. One source talent chicago He enters his earned income, $3,800 on line 1. One source talent chicago He adds lines 1 and 2 and enters $4,150 on line 3. One source talent chicago On line 5, he enters $4,150, the larger of lines 3 and 4. One source talent chicago Because Joe is married filing a separate return, he enters $6,100 on line 6. One source talent chicago On line 7a he enters $4,150 as his standard deduction because it is smaller than $6,100, the amount on line 6. One source talent chicago Example 3. One source talent chicago Amy, who is single, can be claimed as a dependent on her parents' 2013 tax return. One source talent chicago She is 18 years old and blind. One source talent chicago She has interest income of $1,300 and wages of $2,900. One source talent chicago She has no itemized deductions. One source talent chicago Amy uses Table 20-3 to find her standard deduction. One source talent chicago She enters her wages of $2,900 on line 1. One source talent chicago She adds lines 1 and 2 and enters $3,250 on line 3. One source talent chicago On line 5, she enters $3,250, the larger of lines 3 and 4. One source talent chicago Because she is single, Amy enters $6,100 on line 6. One source talent chicago She enters $3,250 on line 7a. One source talent chicago This is the smaller of the amounts on lines 5 and 6. One source talent chicago Because she checked one box in the top part of the worksheet, she enters $1,500 on line 7b. One source talent chicago She then adds the amounts on lines 7a and 7b and enters her standard deduction of $4,750 on line 7c. One source talent chicago Example 4. One source talent chicago Ed is single. One source talent chicago His parents can claim an exemption for him on their 2013 tax return. One source talent chicago He has wages of $7,000, interest income of $500, and a business loss of $3,000. One source talent chicago He has no itemized deductions. One source talent chicago Ed uses Table 20-3 to figure his standard deduction. One source talent chicago He enters $4,000 ($7,000 - $3,000) on line 1. One source talent chicago He adds lines 1 and 2 and enters $4,350 on line 3. One source talent chicago On line 5 he enters $4,350, the larger of lines 3 and 4. One source talent chicago Because he is single, Ed enters $6,100 on line 6. One source talent chicago On line 7a he enters $4,350 as his standard deduction because it is smaller than $6,100, the amount on line 6. One source talent chicago Who Should Itemize You should itemize deductions if your total deductions are more than the standard deduction amount. One source talent chicago Also, you should itemize if you do not qualify for the standard deduction, as discussed earlier under Persons not eligible for the standard deduction . One source talent chicago You should first figure your itemized deductions and compare that amount to your standard deduction to make sure you are using the method that gives you the greater benefit. One source talent chicago You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than: $250,000 if single ($275,000 if head of household, $300,000 if married filing jointly or qualifying widow(er); or $150,000 if married filing separately). One source talent chicago See chapter 29 or the instructions for Schedule A (Form 1040) for more information on figuring the correct amount of your itemized deductions. One source talent chicago When to itemize. One source talent chicago   You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Do not qualify for the standard deduction, or the amount you can claim is limited, Had large uninsured medical and dental expenses during the year, Paid interest and taxes on your home, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities, or Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled. One source talent chicago These deductions are explained in chapters 21–28. One source talent chicago    If you decide to itemize your deductions, complete Schedule A and attach it to your Form 1040. One source talent chicago Enter the amount from Schedule A, line 29, on Form 1040, line 40. One source talent chicago Electing to itemize for state tax or other purposes. One source talent chicago   Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal return rather than take the standard deduction. One source talent chicago You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. One source talent chicago To make this election, you must check the box on line 30 of Schedule A. One source talent chicago Changing your mind. One source talent chicago   If you do not itemize your deductions and later find that you should have itemized — or if you itemize your deductions and later find you should not have — you can change your return by filing Form 1040X, Amended U. One source talent chicago S. One source talent chicago Individual Income Tax Return. One source talent chicago See Amended Returns and Claims for Refund in chapter 1 for more information on amended returns. One source talent chicago Married persons who filed separate returns. One source talent chicago   You can change methods of taking deductions only if you and your spouse both make the same changes. One source talent chicago Both of you must file a consent to assessment for any additional tax either one may owe as a result of the change. One source talent chicago    You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. One source talent chicago You both must use the same method of claiming deductions. One source talent chicago If one itemizes deductions, the other should itemize because he or she will not qualify for the standard deduction. One source talent chicago See Persons not eligible for the standard deduction , earlier. One source talent chicago 2013 Standard Deduction Tables If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you cannot take the standard deduction even if you were born before January 2, 1949, or are blind. One source talent chicago Table 20-1. One source talent chicago Standard Deduction Chart for Most People* If your filing status is. One source talent chicago . One source talent chicago . One source talent chicago Your standard deduction is: Single or Married filing separately $6,100 Married filing jointly or Qualifying widow(er) with dependent child 12,200 Head of household 8,950 *Do not use this chart if you were born before January 2, 1949, are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. One source talent chicago Use Table 20-2 or 20-3 instead. One source talent chicago Table 20-2. One source talent chicago Standard Deduction Chart for People Born Before January 2, 1949, or Who are Blind Check the correct number of boxes below. One source talent chicago Then go to the chart. One source talent chicago You: Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked   IF  your filing status is. One source talent chicago . One source talent chicago . One source talent chicago AND the number in the box above is. One source talent chicago . One source talent chicago . One source talent chicago THEN your standard deduction is. One source talent chicago . One source talent chicago . One source talent chicago Single 1 $7,600   2 9,100 Married filing jointly 1 $13,400 or Qualifying 2 14,600 widow(er) with 3 15,800 dependent child 4 17,000 Married filing 1 $7,300 separately 2 8,500   3 9,700   4 10,900 Head of household 1 $10,450   2 11,950 *If someone else can claim you (or your spouse if filing jointly) as a dependent, use Table 20-3 instead. One source talent chicago Table 20-3. One source talent chicago Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse if filing jointly) as a dependent. One source talent chicago Check the correct number of boxes below. One source talent chicago Then go to the worksheet. One source talent chicago You:   Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked 1. One source talent chicago Enter your earned income (defined below). One source talent chicago If none, enter -0-. One source talent chicago 1. One source talent chicago   2. One source talent chicago Additional amount. One source talent chicago 2. One source talent chicago $350 3. One source talent chicago Add lines 1 and 2. One source talent chicago 3. One source talent chicago   4. One source talent chicago Minimum standard deduction. One source talent chicago 4. One source talent chicago $1,000 5. One source talent chicago Enter the larger of line 3 or line 4. One source talent chicago 5. One source talent chicago   6. One source talent chicago Enter the amount shown below for your filing status. One source talent chicago Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 6. One source talent chicago   7. One source talent chicago Standard deduction. One source talent chicago         a. One source talent chicago Enter the smaller of line 5 or line 6. One source talent chicago If born after January 1, 1949, and not blind, stop here. One source talent chicago This is your standard deduction. One source talent chicago Otherwise, go on to line 7b. One source talent chicago 7a. One source talent chicago     b. One source talent chicago If born before January 2, 1949, or blind, multiply $1,500 ($1,200 if married) by the number in the box above. One source talent chicago 7b. One source talent chicago     c. One source talent chicago Add lines 7a and 7b. One source talent chicago This is your standard deduction for 2013. One source talent chicago 7c. One source talent chicago   Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. One source talent chicago It also includes any amount received as a scholarship that you must include in your income. One source talent chicago Prev  Up  Next   Home   More Online Publications