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

State Income Tax E File

Turbotax 2011 DeluxeFree Federal And State E FileFile Tax Extension For 2011Free Military TaxesI Want To File My State Taxes Online For FreeHow To File Taxes While UnemployedIrs Amended FormIncome Tax Forms For 20121040x Amended FormForm 1040x InstructionsAmended ReturnsFiling State Income Tax ReturnCan You File A 1040x OnlineFiling Tax Extension 2012File Your State Taxes Free1040x Amended Tax Form2011 1040 Tax FormWww Hnrblock ComHow To Fill Out An Amended Tax FormFree Tax Filing For Low IncomeForm 1040x For 20122011 1040ez InstructionsIrsfreefile2011 Form 1040State 1040 Ez FormHow Do You Fill Out A 1040x FormFree Efile 2012Federal Tax Forms 20111040ez DownloadHr Block Free State ReturnFree Download Irs 1040 FormEtaxDo Taxes Online 2010Free Turbotax 2013How Do I File 2010 Tax ReturnForm 1040x OnlineIrs Forms 1040ez1040ezformIncome Tax 1040ezFree Income Tax Filing For College Students

State Income Tax E File

State income tax e file 2. State income tax e file   Filing Status Table of Contents What's New Introduction Useful Items - You may want to see: Marital StatusDivorced persons. State income tax e file Divorce and remarriage. State income tax e file Annulled marriages. State income tax e file Head of household or qualifying widow(er) with dependent child. State income tax e file Considered married. State income tax e file Same-sex marriage. State income tax e file Spouse died during the year. State income tax e file Married persons living apart. State income tax e file Single Married Filing JointlyFiling a Joint Return Married Filing SeparatelySpecial Rules Head of HouseholdConsidered Unmarried Keeping Up a Home Qualifying Person Qualifying Widow(er) With Dependent Child What's New Filing status for same-sex married couples. State income tax e file  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. State income tax e file See Same-sex marriage under Marital Status, later. State income tax e file Introduction This chapter helps you determine which filing status to use. State income tax e file There are five filing statuses. State income tax e file Single. State income tax e file Married Filing Jointly. State income tax e file Married Filing Separately. State income tax e file Head of Household. State income tax e file Qualifying Widow(er) With Dependent Child. State income tax e file If more than one filing status applies to you, choose the one that will give you the lowest tax. State income tax e file You must determine your filing status before you can determine whether you must file a tax return (chapter 1), your standard deduction (chapter 20), and your tax (chapter 30). State income tax e file You also use your filing status to determine whether you are eligible to claim certain deductions and credits. State income tax e file Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 519 U. State income tax e file S. State income tax e file Tax Guide for Aliens 555 Community Property Marital Status In general, your filing status depends on whether you are considered unmarried or married. State income tax e file Unmarried persons. State income tax e file   You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. State income tax e file State law governs whether you are married or legally separated under a divorce or separate maintenance decree. State income tax e file Divorced persons. State income tax e file   If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. State income tax e file Divorce and remarriage. State income tax e file   If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. State income tax e file Annulled marriages. State income tax e file    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. State income tax e file You must file Form 1040X, Amended U. State income tax e file S. State income tax e file Individual Income Tax Return, claiming single or head of household status for all tax years that are affected by the annulment and are not closed by the statute of limitations for filing a tax return. State income tax e file Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. State income tax e file If you filed your original return early (for example, March 1), your return is considered filed on the due date (generally April 15). State income tax e file However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. State income tax e file Head of household or qualifying widow(er) with dependent child. State income tax e file   If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. State income tax e file See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. State income tax e file Married persons. State income tax e file   If you are considered married, you and your spouse can file a joint return or separate returns. State income tax e file Considered married. State income tax e file   You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. State income tax e file You are married and living together as a married couple. State income tax e file You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. State income tax e file You are married and living apart, but not legally separated under a decree of divorce or separate maintenance. State income tax e file You are separated under an interlocutory (not final) decree of divorce. State income tax e file Same-sex marriage. State income tax e file   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. State income tax e file The term “spouse” includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. State income tax e file However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not considered a marriage under state (or foreign) law are not considered married for federal tax purposes. State income tax e file For more details, see Publication 501. State income tax e file Spouse died during the year. State income tax e file   If your spouse died during the year, you are considered married for the whole year for filing status purposes. State income tax e file   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. State income tax e file For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . State income tax e file   If you remarried before the end of the tax year, you can file a joint return with your new spouse. State income tax e file Your deceased spouse's filing status is married filing separately for that year. State income tax e file Married persons living apart. State income tax e file   If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. State income tax e file If you qualify to file as head of household instead of married filing separately, your standard deduction will be higher. State income tax e file Also, your tax may be lower, and you may be able to claim the earned income credit. State income tax e file See Head of Household , later. State income tax e file Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. State income tax e file To determine your marital status, see Marital Status , earlier. State income tax e file Widow(er). State income tax e file   Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. State income tax e file You may, however, be able to use another filing status that will give you a lower tax. State income tax e file See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. State income tax e file How to file. State income tax e file   You can file Form 1040. State income tax e file If you have taxable income of less than $100,000, you may be able to file Form 1040A. State income tax e file If, in addition, you have no dependents, and are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. State income tax e file If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. State income tax e file Use the Single column of the Tax Table or Section A of the Tax Computation Worksheet to figure your tax. State income tax e file Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. State income tax e file On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. State income tax e file You can file a joint return even if one of you had no income or deductions. State income tax e file If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. State income tax e file Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. State income tax e file If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). State income tax e file You can choose the method that gives the two of you the lower combined tax. State income tax e file How to file. State income tax e file   If you file as married filing jointly, you can use Form 1040. State income tax e file If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. State income tax e file If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. State income tax e file If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. State income tax e file Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. State income tax e file Spouse died. State income tax e file   If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. State income tax e file See Spouse died during the year under Marital Status, earlier, for more information. State income tax e file   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. State income tax e file Divorced persons. State income tax e file   If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. State income tax e file Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. State income tax e file Accounting period. State income tax e file   Both of you must use the same accounting period, but you can use different accounting methods. State income tax e file See Accounting Periods and Accounting Methods in chapter 1. State income tax e file Joint responsibility. State income tax e file   Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. State income tax e file This means that if one spouse does not pay the tax due, the other may have to. State income tax e file Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. State income tax e file One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. State income tax e file You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. State income tax e file Divorced taxpayer. State income tax e file   You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. State income tax e file This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. State income tax e file Relief from joint responsibility. State income tax e file   In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. State income tax e file You can ask for relief no matter how small the liability. State income tax e file   There are three types of relief available. State income tax e file Innocent spouse relief. State income tax e file Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or have not lived together for the 12 months ending on the date the election for this relief is filed). State income tax e file Equitable relief. State income tax e file    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. State income tax e file Publication 971, Innocent Spouse Relief, explains these kinds of relief and who may qualify for them. State income tax e file Signing a joint return. State income tax e file   For a return to be considered a joint return, both spouses generally must sign the return. State income tax e file Spouse died before signing. State income tax e file   If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. State income tax e file If neither you nor anyone else has yet been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. State income tax e file Spouse away from home. State income tax e file   If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so that it can be filed on time. State income tax e file Injury or disease prevents signing. State income tax e file   If your spouse cannot sign because of disease or injury and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). State income tax e file ” Be sure to also sign in the space provided for your signature. State income tax e file Attach a dated statement, signed by you, to the return. State income tax e file The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. State income tax e file Signing as guardian of spouse. State income tax e file   If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. State income tax e file Spouse in combat zone. State income tax e file   You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf Area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. State income tax e file Attach a signed statement to your return explaining that your spouse is serving in a combat zone. State income tax e file For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. State income tax e file Other reasons spouse cannot sign. State income tax e file    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). State income tax e file Attach the power of attorney (or a copy of it) to your tax return. State income tax e file You can use Form 2848, Power of Attorney and Declaration of Representative. State income tax e file Nonresident alien or dual-status alien. State income tax e file   Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. State income tax e file However, if one spouse was a nonresident alien or dual-status alien who was married to a U. State income tax e file S. State income tax e file citizen or resident alien at the end of the year, the spouses can choose to file a joint return. State income tax e file If you do file a joint return, you and your spouse are both treated as U. State income tax e file S. State income tax e file residents for the entire tax year. State income tax e file See chapter 1 of Publication 519. State income tax e file Married Filing Separately You can choose married filing separately as your filing status if you are married. State income tax e file This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. State income tax e file If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. State income tax e file You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). State income tax e file This can apply to you even if you are not divorced or legally separated. State income tax e file If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. State income tax e file The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. State income tax e file See Head of Household , later, for more information. State income tax e file You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. State income tax e file However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). State income tax e file This way you can make sure you are using the filing status that results in the lowest combined tax. State income tax e file When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. State income tax e file How to file. State income tax e file   If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. State income tax e file You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. State income tax e file You can file Form 1040. State income tax e file If your taxable income is less than $100,000, you may be able to file Form 1040A. State income tax e file Select this filing status by checking the box on line 3 of either form. State income tax e file Enter your spouse's full name and SSN or ITIN in the spaces provided. State income tax e file If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. State income tax e file Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. State income tax e file Special Rules If you choose married filing separately as your filing status, the following special rules apply. State income tax e file Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. State income tax e file   Your tax rate generally is higher than on a joint return. State income tax e file Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. State income tax e file You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000). State income tax e file If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. State income tax e file For more information about these expenses, the credit, and the exclusion, see chapter 32. State income tax e file You cannot take the earned income credit. State income tax e file You cannot take the exclusion or credit for adoption expenses in most cases. State income tax e file You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. State income tax e file You cannot exclude any interest income from qualified U. State income tax e file S. State income tax e file savings bonds you used for higher education expenses. State income tax e file If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. State income tax e file The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. State income tax e file Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). State income tax e file If your spouse itemizes deductions, you cannot claim the standard deduction. State income tax e file If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. State income tax e file Adjusted gross income (AGI) limits. State income tax e file   If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. State income tax e file Individual retirement arrangements (IRAs). State income tax e file   You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. State income tax e file Your deduction is reduced or eliminated if your income is more than a certain amount. State income tax e file This amount is much lower for married individuals who file separately and lived together at any time during the year. State income tax e file For more information, see How Much Can You Deduct in chapter 17. State income tax e file Rental activity losses. State income tax e file   If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income, up to $25,000. State income tax e file This is called a special allowance. State income tax e file However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. State income tax e file Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. State income tax e file See Limits on Rental Losses in chapter 9. State income tax e file Community property states. State income tax e file   If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. State income tax e file See Publication 555. State income tax e file Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. State income tax e file You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. State income tax e file This does not include any extensions. State income tax e file A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. State income tax e file Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. State income tax e file Exception. State income tax e file   A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. State income tax e file The personal representative has 1 year from the due date of the return (including extensions) to make the change. State income tax e file See Publication 559, Survivors, Executors, and Administrators, for more information on filing a return for a decedent. State income tax e file Head of Household You may be able to file as head of household if you meet all the following requirements. State income tax e file You are unmarried or “considered unmarried” on the last day of the year. State income tax e file See Marital Status , earlier, and Considered Unmarried , later. State income tax e file You paid more than half the cost of keeping up a home for the year. State income tax e file A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). State income tax e file However, if the qualifying person is your dependent parent, he or she does not have to live with you. State income tax e file See Special rule for parent , later, under Qualifying Person. State income tax e file If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. State income tax e file You will also receive a higher standard deduction than if you file as single or married filing separately. State income tax e file Kidnapped child. State income tax e file   A child may qualify you to file as head of household even if the child has been kidnapped. State income tax e file For more information, see Publication 501. State income tax e file How to file. State income tax e file   If you file as head of household, you can use Form 1040. State income tax e file If your taxable income is less than $100,000, you may be able to file Form 1040A. State income tax e file Indicate your choice of this filing status by checking the box on line 4 of either form. State income tax e file Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. State income tax e file Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. State income tax e file You are considered unmarried on the last day of the tax year if you meet all the following tests. State income tax e file You file a separate return (defined earlier under Joint Return After Separate Returns ). State income tax e file You paid more than half the cost of keeping up your home for the tax year. State income tax e file Your spouse did not live in your home during the last 6 months of the tax year. State income tax e file Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. State income tax e file See Temporary absences , under Qualifying Person, later. State income tax e file Your home was the main home of your child, stepchild, or foster child for more than half the year. State income tax e file (See Home of qualifying person , under Qualifying Person, later, for rules applying to a child's birth, death, or temporary absence during the year. State income tax e file ) You must be able to claim an exemption for the child. State income tax e file However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described in Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3, or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative in chapter 3. State income tax e file The general rules for claiming an exemption for a dependent are explained under Exemptions for Dependents in chapter 3. State income tax e file If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. State income tax e file See Publication 555 for more information. State income tax e file Nonresident alien spouse. State income tax e file   You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. State income tax e file However, your spouse is not a qualifying person for head of household purposes. State income tax e file You must have another qualifying person and meet the other tests to be eligible to file as a head of household. State income tax e file Choice to treat spouse as resident. State income tax e file   You are considered married if you choose to treat your spouse as a resident alien. State income tax e file See Publication 519. State income tax e file Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. State income tax e file You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 2–1. State income tax e file Worksheet 2-1. State income tax e file Cost of Keeping Up a Home   Amount You Paid Total Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $ Minus total amount you paid   () Amount others paid   $ If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. State income tax e file Costs you include. State income tax e file   Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. State income tax e file   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. State income tax e file However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. State income tax e file Costs you do not include. State income tax e file   Do not include the costs of clothing, education, medical treatment, vacations, life insurance, or transportation. State income tax e file Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. State income tax e file Qualifying Person See Table 2-1 to see who is a qualifying person. State income tax e file Any person not described in Table 2-1 is not a qualifying person. State income tax e file Table 2-1. State income tax e file Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Caution. State income tax e file See the text of this chapter for the other requirements you must meet to claim head of household filing status. State income tax e file IF the person is your . State income tax e file . State income tax e file . State income tax e file   AND . State income tax e file . State income tax e file . State income tax e file   THEN that person is . State income tax e file . State income tax e file . State income tax e file qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. State income tax e file   he or she is married and you can claim an exemption for him or her   a qualifying person. State income tax e file   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. State income tax e file 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. State income tax e file 6   you cannot claim an exemption for him or her   not a qualifying person. State income tax e file qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests)   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3 and you can claim an exemption for him or her5   a qualifying person. State income tax e file   he or she did not live with you more than half the year   not a qualifying person. State income tax e file   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3 and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. State income tax e file   you cannot claim an exemption for him or her   not a qualifying person. State income tax e file 1A person cannot qualify more than one taxpayer to use the head of household filing status for the year. State income tax e file 2The term “qualifying child” is defined in chapter 3. State income tax e file Note. State income tax e file If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3. State income tax e file If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. State income tax e file 3This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. State income tax e file 4The term “ qualifying relative ” is defined in chapter 3. State income tax e file 5If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. State income tax e file See Multiple Support Agreement in chapter 3. State income tax e file 6See Special rule for parent . State income tax e file Example 1—child. State income tax e file Your unmarried son lived with you all year and was 18 years old at the end of the year. State income tax e file He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. State income tax e file As a result, he is your qualifying child (see Qualifying Child in chapter 3) and, because he is single, your qualifying person for you to claim head of household filing status. State income tax e file Example 2—child who is not qualifying person. State income tax e file The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. State income tax e file Because he does not meet the age test (explained under Qualifying Child in chapter 3), your son is not your qualifying child. State income tax e file Because he does not meet the gross income test (explained later under Qualifying Relative in chapter 3), he is not your qualifying relative. State income tax e file As a result, he is not your qualifying person for head of household purposes. State income tax e file Example 3—girlfriend. State income tax e file Your girlfriend lived with you all year. State income tax e file Even though she may be your qualifying relative if the gross income and support tests (explained in chapter 3) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3. State income tax e file See Table 2-1. State income tax e file Example 4—girlfriend's child. State income tax e file The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. State income tax e file He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test in chapter 3). State income tax e file As a result, he is not your qualifying person for head of household purposes. State income tax e file Home of qualifying person. State income tax e file   Generally, the qualifying person must live with you for more than half of the year. State income tax e file Special rule for parent. State income tax e file   If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. State income tax e file However, you must be able to claim an exemption for your father or mother. State income tax e file Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. State income tax e file   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. State income tax e file Death or birth. State income tax e file   You may be eligible to file as head of household even if the individual who qualifies you for this filing status is born or dies during the year. State income tax e file If the individual is your qualifying child, the child must have lived with you for more than half the part of the year he or she was alive. State income tax e file If the individual is anyone else, see Publication 501. State income tax e file Temporary absences. State income tax e file   You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. State income tax e file It must be reasonable to assume the absent person will return to the home after the temporary absence. State income tax e file You must continue to keep up the home during the absence. State income tax e file Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. State income tax e file The year of death is the last year for which you can file jointly with your deceased spouse. State income tax e file See Married Filing Jointly , earlier. State income tax e file You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. State income tax e file For example, if your spouse died in 2012, and you have not remarried, you may be able to use this filing status for 2013 and 2014. State income tax e file This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). State income tax e file It does not entitle you to file a joint return. State income tax e file How to file. State income tax e file   If you file as qualifying widow(er) with dependent child, you can use Form 1040. State income tax e file If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. State income tax e file Check the box on line 5 of either form. State income tax e file Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. State income tax e file Eligibility rules. State income tax e file   You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all of the following tests. State income tax e file You were entitled to file a joint return with your spouse for the year your spouse died. State income tax e file It does not matter whether you actually filed a joint return. State income tax e file Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. State income tax e file You have a child or stepchild for whom you can claim an exemption. State income tax e file This does not include a foster child. State income tax e file This child lived in your home all year, except for temporary absences. State income tax e file See Temporary absences , earlier, under Head of Household. State income tax e file There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. State income tax e file You paid more than half the cost of keeping up a home for the year. State income tax e file See Keeping Up a Home , earlier, under Head of Household. State income tax e file Example. State income tax e file John's wife died in 2011. State income tax e file John has not remarried. State income tax e file During 2012 and 2013, he continued to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. State income tax e file For 2011 he was entitled to file a joint return for himself and his deceased wife. State income tax e file For 2012 and 2013, he can file as qualifying widower with a dependent child. State income tax e file After 2013 he can file as head of household if he qualifies. State income tax e file Death or birth. State income tax e file    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. State income tax e file You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. State income tax e file Kidnapped child. State income tax e file   A child may qualify you for qualifying widow(er) with dependent child, even if the child has been kidnapped. State income tax e file See Publication 501. State income tax e file    As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. State income tax e file Prev  Up  Next   Home   More Online Publications
Español

Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Utah Department of Commerce

Website: Utah Department of Commerce

Address: Utah Department of Commerce
Division of Consumer Protection
160 E. 300 S, 2nd Floor
PO Box 146704
Salt Lake City, UT 84114-6704

Phone Number: 801-530-6601

Toll-free: 1-800-721-7233

Back to Top

Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Financial Institutions

Website: Department of Financial Institutions

Address: Department of Financial Institutions
PO Box 146800
Salt Lake City, UT 84114-6800

Phone Number: 801-538-8830

Back to Top

Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Insurance Department

Website: Insurance Department

Address: Insurance Department
Consumer Service
State Office Building, Room 3110
450 N. State St.
Salt Lake City, UT 84114-6901

Phone Number: 801-538-3800

Toll-free: 1-800-439-3805 (UT)

TTY: 801-538-3826

Back to Top

Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Commerce

Website: Department of Commerce

Address: Department of Commerce
Division of Securities
PO Box 146760
Salt Lake City, UT 84114-6760

Phone Number: 801-530-6600

Toll-free: 1-800-721-7233 (UT)

Back to Top

Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Service Commission

Website: Public Service Commission

Address: Public Service Commission
Division of Public Utilities
160 East 300 South
Salt Lake City, UT 84114-6751

Phone Number: 801-530-6716

Back to Top

The State Income Tax E File

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