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State Income Tax Form

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State Income Tax Form

State income tax form 14. State income tax form   Sale of Property Table of Contents Reminder Introduction Useful Items - You may want to see: Sales and TradesWhat Is a Sale or Trade? How To Figure Gain or Loss Nontaxable Trades Transfers Between Spouses Related Party Transactions Capital Gains and LossesCapital or Ordinary Gain or Loss Capital Assets and Noncapital Assets Holding Period Nonbusiness Bad Debts Wash Sales Rollover of Gain From Publicly Traded Securities Reminder Foreign income. State income tax form  If you are a U. State income tax form S. State income tax form citizen who sells property located outside the United States, you must report all gains and losses from the sale of that property on your tax return unless it is exempt by U. State income tax form S. State income tax form law. State income tax form This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the payer. State income tax form Introduction This chapter discusses the tax consequences of selling or trading investment property. State income tax form It explains the following. State income tax form What a sale or trade is. State income tax form Figuring gain or loss. State income tax form Nontaxable trades. State income tax form Related party transactions. State income tax form Capital gains or losses. State income tax form Capital assets and noncapital assets. State income tax form Holding period. State income tax form Rollover of gain from publicly traded securities. State income tax form Other property transactions. State income tax form   Certain transfers of property are not discussed here. State income tax form They are discussed in other IRS publications. State income tax form These include the following. State income tax form Sales of a main home, covered in chapter 15. State income tax form Installment sales, covered in Publication 537, Installment Sales. State income tax form Transactions involving business property, covered in Publication 544, Sales and Other Dispositions of Assets. State income tax form Dispositions of an interest in a passive activity, covered in Publication 925, Passive Activity and At-Risk Rules. State income tax form    Publication 550, Investment Income and Expenses (Including Capital Gains and Losses), provides a more detailed discussion about sales and trades of investment property. State income tax form Publication 550 includes information about the rules covering nonbusiness bad debts, straddles, section 1256 contracts, puts and calls, commodity futures, short sales, and wash sales. State income tax form It also discusses investment-related expenses. State income tax form Useful Items - You may want to see: Publication 550 Investment Income and Expenses Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 8949 Sales and Other Dispositions of Capital Assets 8824 Like-Kind Exchanges Sales and Trades If you sold property such as stocks, bonds, or certain commodities through a broker during the year, you should receive, for each sale, a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or substitute statement, from the broker. State income tax form Generally, you should receive the statement by February 15 of the next year. State income tax form It will show the gross proceeds from the sale. State income tax form If you sold a covered security in 2013, your 1099-B (or substitute statement) will show your basis. State income tax form Generally, a covered security is a security you acquired after 2010, with certain exceptions. State income tax form See the Instructions for Form 8949. State income tax form The IRS will also get a copy of Form 1099-B from the broker. State income tax form Use Form 1099-B (or substitute statement received from your broker) to complete Form 8949. State income tax form What Is a Sale or Trade? This section explains what is a sale or trade. State income tax form It also explains certain transactions and events that are treated as sales or trades. State income tax form A sale is generally a transfer of property for money or a mortgage, note, or other promise to pay money. State income tax form A trade is a transfer of property for other property or services and may be taxed in the same way as a sale. State income tax form Sale and purchase. State income tax form   Ordinarily, a transaction is not a trade when you voluntarily sell property for cash and immediately buy similar property to replace it. State income tax form The sale and purchase are two separate transactions. State income tax form But see Like-kind exchanges under Nontaxable Trades, later. State income tax form Redemption of stock. State income tax form   A redemption of stock is treated as a sale or trade and is subject to the capital gain or loss provisions unless the redemption is a dividend or other distribution on stock. State income tax form Dividend versus sale or trade. State income tax form   Whether a redemption is treated as a sale, trade, dividend, or other distribution depends on the circumstances in each case. State income tax form Both direct and indirect ownership of stock will be considered. State income tax form The redemption is treated as a sale or trade of stock if: The redemption is not essentially equivalent to a dividend (see chapter 8), There is a substantially disproportionate redemption of stock, There is a complete redemption of all the stock of the corporation owned by the shareholder, or The redemption is a distribution in partial liquidation of a corporation. State income tax form Redemption or retirement of bonds. State income tax form   A redemption or retirement of bonds or notes at their maturity is generally treated as a sale or trade. State income tax form   In addition, a significant modification of a bond is treated as a trade of the original bond for a new bond. State income tax form For details, see Regulations section 1. State income tax form 1001-3. State income tax form Surrender of stock. State income tax form   A surrender of stock by a dominant shareholder who retains ownership of more than half of the corporation's voting shares is treated as a contribution to capital rather than as an immediate loss deductible from taxable income. State income tax form The surrendering shareholder must reallocate his or her basis in the surrendered shares to the shares he or she retains. State income tax form Worthless securities. State income tax form    Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became completely worthless during the tax year are treated as though they were sold on the last day of the tax year. State income tax form This affects whether your capital loss is long term or short term. State income tax form See Holding Period , later. State income tax form   Worthless securities also include securities that you abandon after March 12, 2008. State income tax form To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it. State income tax form All the facts and circumstances determine whether the transaction is properly characterized as an abandonment or other type of transaction, such as an actual sale or exchange, contribution to capital, dividend, or gift. State income tax form    If you are a cash basis taxpayer and make payments on a negotiable promissory note that you issued for stock that became worthless, you can deduct these payments as losses in the years you actually make the payments. State income tax form Do not deduct them in the year the stock became worthless. State income tax form How to report loss. State income tax form    Report worthless securities in Part I or Part II, whichever applies, of Form 8949. State income tax form In column (a), enter “Worthless. State income tax form ”    Report your worthless securities transactions on Form 8949 with the correct box checked for these transactions. State income tax form See Form 8949 and the Instructions for Form 8949. State income tax form For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. State income tax form See also Schedule D (Form 1040), Form 8949, and their separate instructions. State income tax form Filing a claim for refund. State income tax form   If you do not claim a loss for a worthless security on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the loss. State income tax form You must use Form 1040X, Amended U. State income tax form S. State income tax form Individual Income Tax Return, to amend your return for the year the security became worthless. State income tax form You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. State income tax form For more information about filing a claim, see Amended Returns and Claims for Refund in chapter 1. State income tax form How To Figure Gain or Loss You figure gain or loss on a sale or trade of property by comparing the amount you realize with the adjusted basis of the property. State income tax form Gain. State income tax form   If the amount you realize from a sale or trade is more than the adjusted basis of the property you transfer, the difference is a gain. State income tax form Loss. State income tax form   If the adjusted basis of the property you transfer is more than the amount you realize, the difference is a loss. State income tax form Adjusted basis. State income tax form   The adjusted basis of property is your original cost or other original basis properly adjusted (increased or decreased) for certain items. State income tax form See chapter 13 for more information about determining the adjusted basis of property. State income tax form Amount realized. State income tax form   The amount you realize from a sale or trade of property is everything you receive for the property minus your expenses of sale (such as redemption fees, sales commissions, sales charges, or exit fees). State income tax form Amount realized includes the money you receive plus the fair market value of any property or services you receive. State income tax form If you received a note or other debt instrument for the property, see How To Figure Gain or Loss in chapter 4 of Publication 550 to figure the amount realized. State income tax form If you finance the buyer's purchase of your property and the debt instrument does not provide for adequate stated interest, the unstated interest that you must report as ordinary income will reduce the amount realized from the sale. State income tax form For more information, see Publication 537. State income tax form Fair market value. State income tax form   Fair market value is the price at which the property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. State income tax form Example. State income tax form You trade A Company stock with an adjusted basis of $7,000 for B Company stock with a fair market value of $10,000, which is your amount realized. State income tax form Your gain is $3,000 ($10,000 − $7,000). State income tax form Debt paid off. State income tax form    A debt against the property, or against you, that is paid off as a part of the transaction, or that is assumed by the buyer, must be included in the amount realized. State income tax form This is true even if neither you nor the buyer is personally liable for the debt. State income tax form For example, if you sell or trade property that is subject to a nonrecourse loan, the amount you realize generally includes the full amount of the note assumed by the buyer even if the amount of the note is more than the fair market value of the property. State income tax form Example. State income tax form You sell stock that you had pledged as security for a bank loan of $8,000. State income tax form Your basis in the stock is $6,000. State income tax form The buyer pays off your bank loan and pays you $20,000 in cash. State income tax form The amount realized is $28,000 ($20,000 + $8,000). State income tax form Your gain is $22,000 ($28,000 − $6,000). State income tax form Payment of cash. State income tax form   If you trade property and cash for other property, the amount you realize is the fair market value of the property you receive. State income tax form Determine your gain or loss by subtracting the cash you pay plus the adjusted basis of the property you trade in from the amount you realize. State income tax form If the result is a positive number, it is a gain. State income tax form If the result is a negative number, it is a loss. State income tax form No gain or loss. State income tax form   You may have to use a basis for figuring gain that is different from the basis used for figuring loss. State income tax form In this case, you may have neither a gain nor a loss. State income tax form See Basis Other Than Cost in chapter 13. State income tax form Nontaxable Trades This section discusses trades that generally do not result in a taxable gain or deductible loss. State income tax form For more information on nontaxable trades, see chapter 1 of Publication 544. State income tax form Like-kind exchanges. State income tax form   If you trade business or investment property for other business or investment property of a like kind, you do not pay tax on any gain or deduct any loss until you sell or dispose of the property you receive. State income tax form To be nontaxable, a trade must meet all six of the following conditions. State income tax form The property must be business or investment property. State income tax form You must hold both the property you trade and the property you receive for productive use in your trade or business or for investment. State income tax form Neither property may be property used for personal purposes, such as your home or family car. State income tax form The property must not be held primarily for sale. State income tax form The property you trade and the property you receive must not be property you sell to customers, such as merchandise. State income tax form The property must not be stocks, bonds, notes, choses in action, certificates of trust or beneficial interest, or other securities or evidences of indebtedness or interest, including partnership interests. State income tax form However, see Special rules for mutual ditch, reservoir, or irrigation company stock, in chapter 4 of Publication 550 for an exception. State income tax form Also, you can have a nontaxable trade of corporate stocks under a different rule, as discussed later. State income tax form There must be a trade of like property. State income tax form The trade of real estate for real estate, or personal property for similar personal property, is a trade of like property. State income tax form The trade of an apartment house for a store building, or a panel truck for a pickup truck, is a trade of like property. State income tax form The trade of a piece of machinery for a store building is not a trade of like property. State income tax form Real property located in the United States and real property located outside the United States are not like property. State income tax form Also, personal property used predominantly within the United States and personal property used predominantly outside the United States are not like property. State income tax form The property to be received must be identified in writing within 45 days after the date you transfer the property given up in the trade. State income tax form The property to be received must be received by the earlier of: The 180th day after the date on which you transfer the property given up in the trade, or The due date, including extensions, for your tax return for the year in which the transfer of the property given up occurs. State income tax form    If you trade property with a related party in a like-kind exchange, a special rule may apply. State income tax form See Related Party Transactions , later in this chapter. State income tax form Also, see chapter 1 of Publication 544 for more information on exchanges of business property and special rules for exchanges using qualified intermediaries or involving multiple properties. State income tax form Partly nontaxable exchange. State income tax form   If you receive money or unlike property in addition to like property, and the above six conditions are met, you have a partly nontaxable trade. State income tax form You are taxed on any gain you realize, but only up to the amount of the money and the fair market value of the unlike property you receive. State income tax form You cannot deduct a loss. State income tax form Like property and unlike property transferred. State income tax form   If you give up unlike property in addition to the like property, you must recognize gain or loss on the unlike property you give up. State income tax form The gain or loss is the difference between the adjusted basis of the unlike property and its fair market value. State income tax form Like property and money transferred. State income tax form   If all of the above conditions (1) – (6) are met, you have a nontaxable trade even if you pay money in addition to the like property. State income tax form Basis of property received. State income tax form   To figure the basis of the property received, see Nontaxable Exchanges in chapter 13. State income tax form How to report. State income tax form   You must report the trade of like property on Form 8824. State income tax form If you figure a recognized gain or loss on Form 8824, report it on Schedule D (Form 1040), or on Form 4797, Sales of Business Property, whichever applies. State income tax form See the instructions for Line 22 in the Instructions for Form 8824. State income tax form   For information on using Form 4797, see chapter 4 of Publication 544. State income tax form Corporate stocks. State income tax form   The following trades of corporate stocks generally do not result in a taxable gain or a deductible loss. State income tax form Corporate reorganizations. State income tax form   In some instances, a company will give you common stock for preferred stock, preferred stock for common stock, or stock in one corporation for stock in another corporation. State income tax form If this is a result of a merger, recapitalization, transfer to a controlled corporation, bankruptcy, corporate division, corporate acquisition, or other corporate reorganization, you do not recognize gain or loss. State income tax form Stock for stock of the same corporation. State income tax form   You can exchange common stock for common stock or preferred stock for preferred stock in the same corporation without having a recognized gain or loss. State income tax form This is true for a trade between two stockholders as well as a trade between a stockholder and the corporation. State income tax form Convertible stocks and bonds. State income tax form   You generally will not have a recognized gain or loss if you convert bonds into stock or preferred stock into common stock of the same corporation according to a conversion privilege in the terms of the bond or the preferred stock certificate. State income tax form Property for stock of a controlled corporation. State income tax form   If you transfer property to a corporation solely in exchange for stock in that corporation, and immediately after the trade you are in control of the corporation, you ordinarily will not recognize a gain or loss. State income tax form This rule applies both to individuals and to groups who transfer property to a corporation. State income tax form It does not apply if the corporation is an investment company. State income tax form   For this purpose, to be in control of a corporation, you or your group of transferors must own, immediately after the exchange, at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the outstanding shares of each class of nonvoting stock of the corporation. State income tax form   If this provision applies to you, you may have to attach to your return a complete statement of all facts pertinent to the exchange. State income tax form For details, see Regulations section 1. State income tax form 351-3. State income tax form Additional information. State income tax form   For more information on trades of stock, see Nontaxable Trades in chapter 4 of Publication 550. State income tax form Insurance policies and annuities. State income tax form   You will not have a recognized gain or loss if the insured or annuitant is the same under both contracts and you trade: A life insurance contract for another life insurance contract or for an endowment or annuity contract or for a qualified long-term care insurance contract, An endowment contract for another endowment contract that provides for regular payments beginning at a date no later than the beginning date under the old contract or for an annuity contract or for a qualified long-term insurance contract, An annuity contract for annuity contract or for a qualified long-term care insurance contract, or A qualified long-term care insurance contract for a qualified long-term care insurance contract. State income tax form   You also may not have to recognize gain or loss on an exchange of a portion of an annuity contract for another annuity contract. State income tax form For transfers completed before October 24, 2011, see Revenue Ruling 2003-76 in Internal Revenue Bulletin 2003-33 and Revenue Procedure 2008-24 in Internal Revenue Bulletin 2008-13. State income tax form Revenue Ruling 2003-76 is available at www. State income tax form irs. State income tax form gov/irb/2003-33_IRB/ar11. State income tax form html. State income tax form Revenue Procedure 2008-24 is available at www. State income tax form irs. State income tax form gov/irb/2008-13_IRB/ar13. State income tax form html. State income tax form For transfers completed on or after October 24, 2011, see Revenue Ruling 2003-76, above, and Revenue Procedure 2011-38, in Internal Revenue Bulletin 2011-30. State income tax form Revenue Procedure 2011-38 is available at www. State income tax form irs. State income tax form gov/irb/2011-30_IRB/ar09. State income tax form html. State income tax form   For tax years beginning after December 31, 2010, amounts received as an annuity for a period of 10 years or more, or for the lives of one or more individuals, under any portion of an annuity, endowment, or life insurance contract, are treated as a separate contract and are considered partial annuities. State income tax form A portion of an annuity, endowment, or life insurance contract may be annuitized, provided that the annuitization period is for 10 years or more or for the lives of one or more individuals. State income tax form The investment in the contract is allocated between the part of the contract from which amounts are received as an annuity and the part of the contract from which amounts are not received as an annuity. State income tax form   Exchanges of contracts not included in this list, such as an annuity contract for an endowment contract, or an annuity or endowment contract for a life insurance contract, are taxable. State income tax form Demutualization of life insurance companies. State income tax form   If you received stock in exchange for your equity interest as a policyholder or an annuitant, you generally will not have a recognized gain or loss. State income tax form See Demutualization of Life Insurance Companies in Publication 550. State income tax form U. State income tax form S. State income tax form Treasury notes or bonds. State income tax form   You can trade certain issues of U. State income tax form S. State income tax form Treasury obligations for other issues designated by the Secretary of the Treasury, with no gain or loss recognized on the trade. State income tax form See Savings bonds traded in chapter 1 of Publication 550 for more information. State income tax form Transfers Between Spouses Generally, no gain or loss is recognized on a transfer of property from an individual to (or in trust for the benefit of) a spouse, or if incident to a divorce, a former spouse. State income tax form This nonrecognition rule does not apply in the following situations. State income tax form The recipient spouse or former spouse is a nonresident alien. State income tax form Property is transferred in trust and liability exceeds basis. State income tax form Gain must be recognized to the extent the amount of the liabilities assumed by the trust, plus any liabilities on the property, exceed the adjusted basis of the property. State income tax form For other situations, see Transfers Between Spouses in chapter 4 of Publication 550. State income tax form Any transfer of property to a spouse or former spouse on which gain or loss is not recognized is treated by the recipient as a gift and is not considered a sale or exchange. State income tax form The recipient's basis in the property will be the same as the adjusted basis of the giver immediately before the transfer. State income tax form This carryover basis rule applies whether the adjusted basis of the transferred property is less than, equal to, or greater than either its fair market value at the time of transfer or any consideration paid by the recipient. State income tax form This rule applies for purposes of determining loss as well as gain. State income tax form Any gain recognized on a transfer in trust increases the basis. State income tax form A transfer of property is incident to a divorce if the transfer occurs within 1 year after the date on which the marriage ends, or if the transfer is related to the ending of the marriage. State income tax form Related Party Transactions Special rules apply to the sale or trade of property between related parties. State income tax form Gain on sale or trade of depreciable property. State income tax form   Your gain from the sale or trade of property to a related party may be ordinary income, rather than capital gain, if the property can be depreciated by the party receiving it. State income tax form See chapter 3 of Publication 544 for more information. State income tax form Like-kind exchanges. State income tax form   Generally, if you trade business or investment property for other business or investment property of a like kind, no gain or loss is recognized. State income tax form See Like-kind exchanges , earlier, under Nontaxable Trades. State income tax form   This rule also applies to trades of property between related parties, defined next under Losses on sales or trades of property. State income tax form However, if either you or the related party disposes of the like property within 2 years after the trade, you both must report any gain or loss not recognized on the original trade on your return filed for the year in which the later disposition occurs. State income tax form See Related Party Transactions in chapter 4 of Publication 550 for exceptions. State income tax form Losses on sales or trades of property. State income tax form   You cannot deduct a loss on the sale or trade of property, other than a distribution in complete liquidation of a corporation, if the transaction is directly or indirectly between you and the following related parties. State income tax form Members of your family. State income tax form This includes only your brothers and sisters, half-brothers and half-sisters, spouse, ancestors (parents, grandparents, etc. State income tax form ), and lineal descendants (children, grandchildren, etc. State income tax form ). State income tax form A partnership in which you directly or indirectly own more than 50% of the capital interest or the profits interest. State income tax form A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock. State income tax form (See Constructive ownership of stock , later. State income tax form ) A tax-exempt charitable or educational organization directly or indirectly controlled, in any manner or by any method, by you or by a member of your family, whether or not this control is legally enforceable. State income tax form   In addition, a loss on the sale or trade of property is not deductible if the transaction is directly or indirectly between the following related parties. State income tax form A grantor and fiduciary, or the fiduciary and beneficiary, of any trust. State income tax form Fiduciaries of two different trusts, or the fiduciary and beneficiary of two different trusts, if the same person is the grantor of both trusts. State income tax form A trust fiduciary and a corporation of which more than 50% in value of the outstanding stock is directly or indirectly owned by or for the trust, or by or for the grantor of the trust. State income tax form A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest, or the profits interest, in the partnership. State income tax form Two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. State income tax form Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. State income tax form An executor and a beneficiary of an estate (except in the case of a sale or trade to satisfy a pecuniary bequest). State income tax form Two corporations that are members of the same controlled group. State income tax form (Under certain conditions, however, these losses are not disallowed but must be deferred. State income tax form ) Two partnerships if the same persons own, directly or indirectly, more than 50% of the capital interests or the profit interests in both partnerships. State income tax form Multiple property sales or trades. State income tax form   If you sell or trade to a related party a number of blocks of stock or pieces of property in a lump sum, you must figure the gain or loss separately for each block of stock or piece of property. State income tax form The gain on each item may be taxable. State income tax form However, you cannot deduct the loss on any item. State income tax form Also, you cannot reduce gains from the sales of any of these items by losses on the sales of any of the other items. State income tax form Indirect transactions. State income tax form   You cannot deduct your loss on the sale of stock through your broker if, under a prearranged plan, a related party buys the same stock you had owned. State income tax form This does not apply to a trade between related parties through an exchange that is purely coincidental and is not prearranged. State income tax form Constructive ownership of stock. State income tax form   In determining whether a person directly or indirectly owns any of the outstanding stock of a corporation, the following rules apply. State income tax form Rule 1. State income tax form   Stock directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. State income tax form Rule 2. State income tax form   An individual is considered to own the stock directly or indirectly owned by or for his or her family. State income tax form Family includes only brothers and sisters, half-brothers and half-sisters, spouse, ancestors, and lineal descendants. State income tax form Rule 3. State income tax form   An individual owning, other than by applying rule 2, any stock in a corporation is considered to own the stock directly or indirectly owned by or for his or her partner. State income tax form Rule 4. State income tax form   When applying rule 1, 2, or 3, stock constructively owned by a person under rule 1 is treated as actually owned by that person. State income tax form But stock constructively owned by an individual under rule 2 or rule 3 is not treated as owned by that individual for again applying either rule 2 or rule 3 to make another person the constructive owner of the stock. State income tax form Property received from a related party. State income tax form    If you sell or trade at a gain property you acquired from a related party, you recognize the gain only to the extent it is more than the loss previously disallowed to the related party. State income tax form This rule applies only if you are the original transferee and you acquired the property by purchase or exchange. State income tax form This rule does not apply if the related party's loss was disallowed because of the wash sale rules described in chapter 4 of Publication 550 under Wash Sales. State income tax form   If you sell or trade at a loss property you acquired from a related party, you cannot recognize the loss that was not allowed to the related party. State income tax form Example 1. State income tax form Your brother sells you stock for $7,600. State income tax form His cost basis is $10,000. State income tax form Your brother cannot deduct the loss of $2,400. State income tax form Later, you sell the same stock to an unrelated party for $10,500, realizing a gain of $2,900. State income tax form Your reportable gain is $500 (the $2,900 gain minus the $2,400 loss not allowed to your brother). State income tax form Example 2. State income tax form If, in Example 1, you sold the stock for $6,900 instead of $10,500, your recognized loss is only $700 (your $7,600 basis minus $6,900). State income tax form You cannot deduct the loss that was not allowed to your brother. State income tax form Capital Gains and Losses This section discusses the tax treatment of gains and losses from different types of investment transactions. State income tax form Character of gain or loss. State income tax form   You need to classify your gains and losses as either ordinary or capital gains or losses. State income tax form You then need to classify your capital gains and losses as either short term or long term. State income tax form If you have long-term gains and losses, you must identify your 28% rate gains and losses. State income tax form If you have a net capital gain, you must also identify any unrecaptured section 1250 gain. State income tax form   The correct classification and identification helps you figure the limit on capital losses and the correct tax on capital gains. State income tax form Reporting capital gains and losses is explained in chapter 16. State income tax form Capital or Ordinary Gain or Loss If you have a taxable gain or a deductible loss from a transaction, it may be either a capital gain or loss or an ordinary gain or loss, depending on the circumstances. State income tax form Generally, a sale or trade of a capital asset (defined next) results in a capital gain or loss. State income tax form A sale or trade of a noncapital asset generally results in ordinary gain or loss. State income tax form Depending on the circumstances, a gain or loss on a sale or trade of property used in a trade or business may be treated as either capital or ordinary, as explained in Publication 544. State income tax form In some situations, part of your gain or loss may be a capital gain or loss and part may be an ordinary gain or loss. State income tax form Capital Assets and Noncapital Assets For the most part, everything you own and use for personal purposes, pleasure, or investment is a capital asset. State income tax form Some examples are: Stocks or bonds held in your personal account, A house owned and used by you and your family, Household furnishings, A car used for pleasure or commuting, Coin or stamp collections, Gems and jewelry, and Gold, silver, or any other metal. State income tax form Any property you own is a capital asset, except the following noncapital assets. State income tax form Property held mainly for sale to customers or property that will physically become a part of the merchandise for sale to customers. State income tax form For an exception, see Capital Asset Treatment for Self-Created Musical Works , later. State income tax form Depreciable property used in your trade or business, even if fully depreciated. State income tax form Real property used in your trade or business. State income tax form A copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property that is: Created by your personal efforts, Prepared or produced for you (in the case of a letter, memorandum, or similar property), or Acquired under circumstances (for example, by gift) entitling you to the basis of the person who created the property or for whom it was prepared or produced. State income tax form For an exception to this rule, see Capital Asset Treatment for Self-Created Musical Works , later. State income tax form Accounts or notes receivable acquired in the ordinary course of a trade or business for services rendered or from the sale of property described in (1). State income tax form U. State income tax form S. State income tax form Government publications that you received from the government free or for less than the normal sales price, or that you acquired under circumstances entitling you to the basis of someone who received the publications free or for less than the normal sales price. State income tax form Certain commodities derivative financial instruments held by commodities derivatives dealers. State income tax form Hedging transactions, but only if the transaction is clearly identified as a hedging transaction before the close of the day on which it was acquired, originated, or entered into. State income tax form Supplies of a type you regularly use or consume in the ordinary course of your trade or business. State income tax form Investment Property Investment property is a capital asset. State income tax form Any gain or loss from its sale or trade is generally a capital gain or loss. State income tax form Gold, silver, stamps, coins, gems, etc. State income tax form   These are capital assets except when they are held for sale by a dealer. State income tax form Any gain or loss you have from their sale or trade generally is a capital gain or loss. State income tax form Stocks, stock rights, and bonds. State income tax form   All of these (including stock received as a dividend) are capital assets except when held for sale by a securities dealer. State income tax form However, if you own small business stock, see Losses on Section 1244 (Small Business) Stock , later, and Losses on Small Business Investment Company Stock, in chapter 4 of Publication 550. State income tax form Personal Use Property Property held for personal use only, rather than for investment, is a capital asset, and you must report a gain from its sale as a capital gain. State income tax form However, you cannot deduct a loss from selling personal use property. State income tax form Capital Asset Treatment for Self-Created Musical Works You can elect to treat musical compositions and copyrights in musical works as capital assets when you sell or exchange them if: Your personal efforts created the property, or You acquired the property under circumstances (for example, by gift) entitling you to the basis of the person who created the property or for whom it was prepared or produced. State income tax form You must make a separate election for each musical composition (or copyright in a musical work) sold or exchanged during the tax year. State income tax form You must make the election on or before the due date (including extensions) of the income tax return for the tax year of the sale or exchange. State income tax form You must make the election on Form 8949 by treating the sale or exchange as the sale or exchange of a capital asset, according to Form 8949, Schedule D (Form 1040), and their separate instructions. State income tax form For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. State income tax form See also Schedule D (Form 1040), Form 8949, and their separate instructions. State income tax form You can revoke the election if you have IRS approval. State income tax form To get IRS approval, you must submit a request for a letter ruling under the appropriate IRS revenue procedure. State income tax form See, for example, Rev. State income tax form Proc. State income tax form 2013-1, corrected by Announcement 2013–9, and amplified and modified by Rev. State income tax form Proc. State income tax form 2013–32, available at www. State income tax form irs. State income tax form gov/irb/2013-01_IRB/ar06. State income tax form html. State income tax form Alternatively, you are granted an automatic 6-month extension from the due date of your income tax return (excluding extensions) to revoke the election, provided you timely file your income tax return, and within this 6-month extension period, you file Form 1040X that treats the sale or exchange as the sale or exchange of property that is not a capital asset. State income tax form Discounted Debt Instruments Treat your gain or loss on the sale, redemption, or retirement of a bond or other debt instrument originally issued at a discount or bought at a discount as capital gain or loss, except as explained in the following discussions. State income tax form Short-term government obligations. State income tax form   Treat gains on short-term federal, state, or local government obligations (other than tax-exempt obligations) as ordinary income up to your ratable share of the acquisition discount. State income tax form This treatment applies to obligations with a fixed maturity date not more than 1 year from the date of issue. State income tax form Acquisition discount is the stated redemption price at maturity minus your basis in the obligation. State income tax form   However, do not treat these gains as income to the extent you previously included the discount in income. State income tax form See Discount on Short-Term Obligations in chapter 1 of Publication 550. State income tax form Short-term nongovernment obligations. State income tax form   Treat gains on short-term nongovernment obligations as ordinary income up to your ratable share of original issue discount (OID). State income tax form This treatment applies to obligations with a fixed maturity date of not more than 1 year from the date of issue. State income tax form   However, to the extent you previously included the discount in income, you do not have to include it in income again. State income tax form See Discount on Short-Term Obligations in chapter 1 of Publication 550. State income tax form Tax-exempt state and local government bonds. State income tax form   If these bonds were originally issued at a discount before September 4, 1982, or you acquired them before March 2, 1984, treat your part of OID as tax-exempt interest. State income tax form To figure your gain or loss on the sale or trade of these bonds, reduce the amount realized by your part of OID. State income tax form   If the bonds were issued after September 3, 1982, and acquired after March 1, 1984, increase the adjusted basis by your part of OID to figure gain or loss. State income tax form For more information on the basis of these bonds, see Discounted Debt Instruments in chapter 4 of Publication 550. State income tax form   Any gain from market discount is usually taxable on disposition or redemption of tax-exempt bonds. State income tax form If you bought the bonds before May 1, 1993, the gain from market discount is capital gain. State income tax form If you bought the bonds after April 30, 1993, the gain is ordinary income. State income tax form   You figure the market discount by subtracting the price you paid for the bond from the sum of the original issue price of the bond and the amount of accumulated OID from the date of issue that represented interest to any earlier holders. State income tax form For more information, see Market Discount Bonds in chapter 1 of Publication 550. State income tax form    A loss on the sale or other disposition of a tax-exempt state or local government bond is deductible as a capital loss. State income tax form Redeemed before maturity. State income tax form   If a state or local bond issued before June 9, 1980, is redeemed before it matures, the OID is not taxable to you. State income tax form   If a state or local bond issued after June 8, 1980, is redeemed before it matures, the part of OID earned while you hold the bond is not taxable to you. State income tax form However, you must report the unearned part of OID as a capital gain. State income tax form Example. State income tax form On July 2, 2002, the date of issue, you bought a 20-year, 6% municipal bond for $800. State income tax form The face amount of the bond was $1,000. State income tax form The $200 discount was OID. State income tax form At the time the bond was issued, the issuer had no intention of redeeming it before it matured. State income tax form The bond was callable at its face amount beginning 10 years after the issue date. State income tax form The issuer redeemed the bond at the end of 11 years (July 2, 2013) for its face amount of $1,000 plus accrued annual interest of $60. State income tax form The OID earned during the time you held the bond, $73, is not taxable. State income tax form The $60 accrued annual interest also is not taxable. State income tax form However, you must report the unearned part of OID ($127) as a capital gain. State income tax form Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). State income tax form   If you sell, trade, or redeem for a gain one of these debt instruments, the part of your gain that is not more than your ratable share of the OID at the time of the sale or redemption is ordinary income. State income tax form The rest of the gain is capital gain. State income tax form If, however, there was an intention to call the debt instrument before maturity, all of your gain that is not more than the entire OID is treated as ordinary income at the time of the sale. State income tax form This treatment of taxable gain also applies to corporate instruments issued after May 27, 1969, under a written commitment that was binding on May 27, 1969, and at all times thereafter. State income tax form Long-term debt instruments issued after May 27, 1969 (or after July 1, 1982, if a government instrument). State income tax form   If you hold one of these debt instruments, you must include a part of OID in your gross income each year you own the instrument. State income tax form Your basis in that debt instrument is increased by the amount of OID that you have included in your gross income. State income tax form See Original Issue Discount (OID) in chapter 7 for information about OID that you must report on your tax return. State income tax form   If you sell or trade the debt instrument before maturity, your gain is a capital gain. State income tax form However, if at the time the instrument was originally issued there was an intention to call it before its maturity, your gain generally is ordinary income to the extent of the entire OID reduced by any amounts of OID previously includible in your income. State income tax form In this case, the rest of the gain is capital gain. State income tax form Market discount bonds. State income tax form   If the debt instrument has market discount and you chose to include the discount in income as it accrued, increase your basis in the debt instrument by the accrued discount to figure capital gain or loss on its disposition. State income tax form If you did not choose to include the discount in income as it accrued, you must report gain as ordinary interest income up to the instrument's accrued market discount. State income tax form The rest of the gain is capital gain. State income tax form See Market Discount Bonds in chapter 1 of Publication 550. State income tax form   A different rule applies to market discount bonds issued before July 19, 1984, and purchased by you before May 1, 1993. State income tax form See Market discount bonds under Discounted Debt Instruments in chapter 4 of Publication 550. State income tax form Retirement of debt instrument. State income tax form   Any amount you receive on the retirement of a debt instrument is treated in the same way as if you had sold or traded that instrument. State income tax form Notes of individuals. State income tax form   If you hold an obligation of an individual issued with OID after March 1, 1984, you generally must include the OID in your income currently, and your gain or loss on its sale or retirement is generally capital gain or loss. State income tax form An exception to this treatment applies if the obligation is a loan between individuals and all the following requirements are met. State income tax form The lender is not in the business of lending money. State income tax form The amount of the loan, plus the amount of any outstanding prior loans, is $10,000 or less. State income tax form Avoiding federal tax is not one of the principal purposes of the loan. State income tax form   If the exception applies, or the obligation was issued before March 2, 1984, you do not include the OID in your income currently. State income tax form When you sell or redeem the obligation, the part of your gain that is not more than your accrued share of OID at that time is ordinary income. State income tax form The rest of the gain, if any, is capital gain. State income tax form Any loss on the sale or redemption is capital loss. State income tax form Deposit in Insolvent or Bankrupt Financial Institution If you lose money you have on deposit in a bank, credit union, or other financial institution that becomes insolvent or bankrupt, you may be able to deduct your loss in one of three ways. State income tax form Ordinary loss. State income tax form Casualty loss. State income tax form Nonbusiness bad debt (short-term capital loss). State income tax form  For more information, see Deposit in Insolvent or Bankrupt Financial Institution, in chapter 4 of Publication 550. State income tax form Sale of Annuity The part of any gain on the sale of an annuity contract before its maturity date that is based on interest accumulated on the contract is ordinary income. State income tax form Losses on Section 1244 (Small Business) Stock You can deduct as an ordinary loss, rather than as a capital loss, your loss on the sale, trade, or worthlessness of section 1244 stock. State income tax form Report the loss on Form 4797, line 10. State income tax form Any gain on section 1244 stock is a capital gain if the stock is a capital asset in your hands. State income tax form Report the gain on Form 8949. State income tax form See Losses on Section 1244 (Small Business) Stock in chapter 4 of Publication 550. State income tax form For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. State income tax form See also Schedule D (Form 1040), Form 8949, and their separate instructions. State income tax form Holding Period If you sold or traded investment property, you must determine your holding period for the property. State income tax form Your holding period determines whether any capital gain or loss was a short-term or long-term capital gain or loss. State income tax form Long-term or short-term. State income tax form   If you hold investment property more than 1 year, any capital gain or loss is a long-term capital gain or loss. State income tax form If you hold the property 1 year or less, any capital gain or loss is a short-term capital gain or loss. State income tax form   To determine how long you held the investment property, begin counting on the date after the day you acquired the property. State income tax form The day you disposed of the property is part of your holding period. State income tax form Example. State income tax form If you bought investment property on February 6, 2012, and sold it on February 6, 2013, your holding period is not more than 1 year and you have a short-term capital gain or loss. State income tax form If you sold it on February 7, 2013, your holding period is more than 1 year and you will have a long-term capital gain or loss. State income tax form Securities traded on established market. State income tax form   For securities traded on an established securities market, your holding period begins the day after the trade date you bought the securities, and ends on the trade date you sold them. State income tax form    Do not confuse the trade date with the settlement date, which is the date by which the stock must be delivered and payment must be made. State income tax form Example. State income tax form You are a cash method, calendar year taxpayer. State income tax form You sold stock at a gain on December 30, 2013. State income tax form According to the rules of the stock exchange, the sale was closed by delivery of the stock 4 trading days after the sale, on January 6, 2014. State income tax form You received payment of the sales price on that same day. State income tax form Report your gain on your 2013 return, even though you received the payment in 2014. State income tax form The gain is long term or short term depending on whether you held the stock more than 1 year. State income tax form Your holding period ended on December 30. State income tax form If you had sold the stock at a loss, you would also report it on your 2013 return. State income tax form U. State income tax form S. State income tax form Treasury notes and bonds. State income tax form   The holding period of U. State income tax form S. State income tax form Treasury notes and bonds sold at auction on the basis of yield starts the day after the Secretary of the Treasury, through news releases, gives notification of acceptance to successful bidders. State income tax form The holding period of U. State income tax form S. State income tax form Treasury notes and bonds sold through an offering on a subscription basis at a specified yield starts the day after the subscription is submitted. State income tax form Automatic investment service. State income tax form   In determining your holding period for shares bought by the bank or other agent, full shares are considered bought first and any fractional shares are considered bought last. State income tax form Your holding period starts on the day after the bank's purchase date. State income tax form If a share was bought over more than one purchase date, your holding period for that share is a split holding period. State income tax form A part of the share is considered to have been bought on each date that stock was bought by the bank with the proceeds of available funds. State income tax form Nontaxable trades. State income tax form   If you acquire investment property in a trade for other investment property and your basis for the new property is determined, in whole or in part, by your basis in the old property, your holding period for the new property begins on the day following the date you acquired the old property. State income tax form Property received as a gift. State income tax form   If you receive a gift of property and your basis is determined by the donor's adjusted basis, your holding period is considered to have started on the same day the donor's holding period started. State income tax form   If your basis is determined by the fair market value of the property, your holding period starts on the day after the date of the gift. State income tax form Inherited property. State income tax form   Generally, if you inherited investment property, your capital gain or loss on any later disposition of that property is long-term capital gain or loss. State income tax form This is true regardless of how long you actually held the property. State income tax form However, if you inherited property from someone who died in 2010, see the information below. State income tax form Inherited property from someone who died in 2010. State income tax form   If you inherit investment property from a decedent who died in 2010, and the executor of the decedent's estate made the election to file Form 8939, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to determine your holding period. State income tax form Real property bought. State income tax form   To figure how long you have held real property bought under an unconditional contract, begin counting on the day after you received title to it or on the day after you took possession of it and assumed the burdens and privileges of ownership, whichever happened first. State income tax form However, taking delivery or possession of real property under an option agreement is not enough to start the holding period. State income tax form The holding period cannot start until there is an actual contract of sale. State income tax form The holding period of the seller cannot end before that time. State income tax form Real property repossessed. State income tax form   If you sell real property but keep a security interest in it, and then later repossess the property under the terms of the sales contract, your holding period for a later sale includes the period you held the property before the original sale and the period after the repossession. State income tax form Your holding period does not include the time between the original sale and the repossession. State income tax form That is, it does not include the period during which the first buyer held the property. State income tax form Stock dividends. State income tax form   The holding period for stock you received as a taxable stock dividend begins on the date of distribution. State income tax form   The holding period for new stock you received as a nontaxable stock dividend begins on the same day as the holding period of the old stock. State income tax form This rule also applies to stock acquired in a “spin-off,” which is a distribution of stock or securities in a controlled corporation. State income tax form Nontaxable stock rights. State income tax form   Your holding period for nontaxable stock rights begins on the same day as the holding period of the underlying stock. State income tax form The holding period for stock acquired through the exercise of stock rights begins on the date the right was exercised. State income tax form Nonbusiness Bad Debts If someone owes you money that you cannot collect, you have a bad debt. State income tax form You may be able to deduct the amount owed to you when you figure your tax for the year the debt becomes worthless. State income tax form Generally, nonbusiness bad debts are bad debts that did not come from operating your trade or business, and are deductible as short-term capital losses. State income tax form To be deductible, nonbusiness bad debts must be totally worthless. State income tax form You cannot deduct a partly worthless nonbusiness debt. State income tax form Genuine debt required. State income tax form   A debt must be genuine for you to deduct a loss. State income tax form A debt is genuine if it arises from a debtor-creditor relationship based on a valid and enforceable obligation to repay a fixed or determinable sum of money. State income tax form Basis in bad debt required. State income tax form    To deduct a bad debt, you must have a basis in it—that is, you must have already included the amount in your income or loaned out your cash. State income tax form For example, you cannot claim a bad debt deduction for court-ordered child support not paid to you by your former spouse. State income tax form If you are a cash method taxpayer (as most individuals are), you generally cannot take a bad debt deduction for unpaid salaries, wages, rents, fees, interest, dividends, and similar items. State income tax form When deductible. State income tax form   You can take a bad debt deduction only in the year the debt becomes worthless. State income tax form You do not have to wait until a debt is due to determine whether it is worthless. State income tax form A debt becomes worthless when there is no longer any chance that the amount owed will be paid. State income tax form   It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. State income tax form You must only show that you have taken reasonable steps to collect the debt. State income tax form Bankruptcy of your debtor is generally good evidence of the worthlessness of at least a part of an unsecured and unpreferred debt. State income tax form How to report bad debts. State income tax form    Deduct nonbusiness bad debts as short-term capital losses on Form 8949. State income tax form    Make sure you report your bad debt(s) (and any other short-term transactions for which you did not receive a Form 1099-B) on Form 8949, Part I, with box C checked. State income tax form    For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. State income tax form See also Schedule D (Form 1040), Form 8949, and their separate instructions. State income tax form   For each bad debt, attach a statement to your return that contains: A description of the debt, including the amount, and the date it became due, The name of the debtor, and any business or family relationship between you and the debtor, The efforts you made to collect the debt, and Why you decided the debt was worthless. State income tax form For example, you could show that the borrower has declared bankruptcy, or that legal action to collect would probably not result in payment of any part of the debt. State income tax form Filing a claim for refund. State income tax form    If you do not deduct a bad debt on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the bad debt. State income tax form To do this, use Form 1040X to amend your return for the year the debt became worthless. State income tax form You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. State income tax form For more information about filing a claim, see Amended Returns and Claims for Refund in chapter 1. State income tax form Additional information. State income tax form   For more information, see Nonbusiness Bad Debts in Publication 550. State income tax form For information on business bad debts, see chapter 10 of Publication 535, Business Expenses. State income tax form Wash Sales You cannot deduct losses from sales or trades of stock or securities in a wash sale. State income tax form A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract or option to buy substantially identical stock or securities, or Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA. State income tax form If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities (except in (4) above). State income tax form The result is your basis in the new stock or securities. State income tax form This adjustment postpones the loss deduction until the disposition of the new stock or securities. State income tax form Your holding period for the new stock or securities includes the holding period of the stock or securities sold. State income tax form For more information, see Wash Sales, in chapter 4 of Publication 550. State income tax form Rollover of Gain From Publicly Traded Securities You may qualify for a tax-free rollover of certain gains from the sale of publicly traded securities. State income tax form This means that if you buy certain replacement property and make the choice described in this section, you postpone part or all of your gain. State income tax form You postpone the gain by adjusting the basis of the replacement property as described in Basis of replacement property , later. State income tax form This postpones your gain until the year you dispose of the replacement property. State income tax form You qualify to make this choice if you meet all the following tests. State income tax form You sell publicly traded securities at a gain. State income tax form Publicly traded securities are securities traded on an established securities market. State income tax form Your gain from the sale is a capital gain. State income tax form During the 60-day period beginning on the date of the sale, you buy replacement property. State income tax form This replacement property must be either common stock of, or a partnership interest in a specialized small business investment company (SSBIC). State income tax form This is any partnership or corporation licensed by the Small Business Administration under section 301(d) of the Small Business Investment Act of 1958, as in effect on May 13, 1993. State income tax form Amount of gain recognized. State income tax form   If you make the choice described in this section, you must recognize gain only up to the following amount. State income tax form The amount realized on the sale, minus The cost of any common stock or partnership interest in an SSBIC that you bought during the 60-day period beginning on the date of sale (and did not previously take into account on an earlier sale of publicly traded securities). State income tax form  If this amount is less than the amount of your gain, you can postpone the rest of your gain, subject to the limit described next. State income tax form If this amount is equal to or more than the amount of your gain, you must recognize the full amount of your gain. State income tax form Limit on gain postponed. State income tax form   The amount of gain you can postpone each year is limited to the smaller of: $50,000 ($25,000 if you are married and file a separate return), or $500,000 ($250,000 if you are married and file a separate return), minus the amount of gain you postponed for all earlier years. State income tax form Basis of replacement property. State income tax form   You must subtract the amount of postponed gain from the basis of your replacement property. State income tax form How to report and postpone gain. State income tax form    See How to report and postpone gain under Rollover of Gain From Publicly Traded Securities in chapter 4 of Publication 550 for details. State income tax form Prev  Up  Next   Home   More Online Publications
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The State Income Tax Form

State income tax form Publication 503 - Main Content Table of Contents Tests To Claim the CreditQualifying Person Test Earned Income Test Work-Related Expense Test Joint Return Test Provider Identification Test How To Figure the CreditFiguring Total Work-Related Expenses Earned Income Limit Dollar Limit Amount of Credit How To Claim the CreditTax credit not refundable. State income tax form Employment Taxes for Household Employers How To Get Tax HelpLow Income Taxpayer Clinics Tests To Claim the Credit To be able to claim the credit for child and dependent care expenses, you must file Form 1040, Form 1040A, or Form 1040NR, not Form 1040EZ or Form 1040NR-EZ, and meet all the following tests. State income tax form The care must be for one or more qualifying persons who are identified on Form 2441. State income tax form (See Qualifying Person Test. State income tax form ) You (and your spouse if filing jointly) must have earned income during the year. State income tax form (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. State income tax form ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. State income tax form (See Work-Related Expense Test, later. State income tax form ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. State income tax form If you make payments to your child, he or she cannot be your dependent and must be age 19 or older by the end of the year. State income tax form You cannot make payments to: Your spouse, or The parent of your qualifying person if your qualifying person is your child and under age 13. State income tax form See Payments to Relatives or Dependents under Work-Related Expense Test, later. State income tax form Your filing status may be single, head of household, or qualifying widow(er) with dependent child. State income tax form If you are married, you must file a joint return, unless an exception applies to you. State income tax form See Joint Return Test, later. State income tax form You must identify the care provider on your tax return. State income tax form (See Provider Identification Test, later. State income tax form ) If you exclude or deduct dependent care benefits provided by a dependent care benefit plan, the total amount you exclude or deduct must be less than the dollar limit for qualifying expenses (generally, $3,000 if one qualifying person was cared for or $6,000 if two or more qualifying persons were cared for). State income tax form (If two or more qualifying persons were cared for, the amount you exclude or deduct will always be less than the dollar limit, since the total amount you can exclude or deduct is limited to $5,000. State income tax form See Reduced Dollar Limit under How To Figure the Credit, later. State income tax form ) These tests are presented in Figure A and are also explained in detail in this publication. State income tax form Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. State income tax form A qualifying person is: Your qualifying child who is your dependent and who was under age 13 when the care was provided (but see Child of divorced or separated parents or parents living apart , later), Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. State income tax form Dependent defined. State income tax form   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. State income tax form To be your dependent, a person must be your qualifying child (or your qualifying relative). State income tax form Qualifying child. State income tax form   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. State income tax form More information. State income tax form   For more information about who is a dependent or a qualifying child, see Publication 501. State income tax form Physically or mentally not able to care for oneself. State income tax form   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. State income tax form Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. State income tax form Person qualifying for part of year. State income tax form   You determine a person's qualifying status each day. State income tax form For example, if the person for whom you pay child and dependent care expenses no longer qualifies on September 16, count only those expenses through September 15. State income tax form Also see Yearly limit under Dollar Limit, later. State income tax form Birth or death of otherwise qualifying person. State income tax form   In determining whether a person is a qualifying person, a person who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the person's home more than half the time he or she was alive in 2013. State income tax form Taxpayer identification number. State income tax form   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). State income tax form If the correct information is not shown, the credit may be reduced or disallowed. State income tax form Individual taxpayer identification number (ITIN) for aliens. State income tax form   If your qualifying person is a nonresident or resident alien who does not have and cannot get a social security number (SSN), use that person's ITIN. State income tax form The ITIN is entered wherever an SSN is requested on a tax return. State income tax form If the alien does not have an ITIN, he or she must apply for one. State income tax form See Form W-7, Application for IRS Individual Taxpayer Identification Number, for details. State income tax form   An ITIN is for tax use only. State income tax form It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. State income tax form S. State income tax form law. State income tax form Adoption taxpayer identification number (ATIN). State income tax form   If your qualifying person is a child who was placed in your home for adoption and for whom you do not have an SSN, you must get an ATIN for the child. State income tax form File Form W-7A, Application for Taxpayer Identification Number for Pending U. State income tax form S. State income tax form Adoptions. State income tax form Child of divorced or separated parents or parents living apart. State income tax form   Even if you cannot claim your child as a dependent, he or she is treated as your qualifying person if: The child was under age 13 or was not physically or mentally able to care for himself or herself, The child received over half of his or her support during the calendar year from one or both parents who are divorced or legally separated under a decree of divorce or separate maintenance, are separated under a written separation agreement, or lived apart at all times during the last 6 months of the calendar year, The child was in the custody of one or both parents for more than half the year, and You were the child's custodial parent. State income tax form   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. State income tax form If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. State income tax form For details and an exception for a parent who works at night, see Publication 501. State income tax form   The noncustodial parent cannot treat the child as a qualifying person even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents. State income tax form Please click here for the text description of the image. State income tax form Figure a. State income tax form Can you claim the credit Earned Income Test To claim the credit, you (and your spouse if filing jointly) must have earned income during the year. State income tax form Earned income. State income tax form   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. State income tax form A net loss from self-employment reduces earned income. State income tax form Earned income also includes strike benefits and any disability pay you report as wages. State income tax form   Generally, only taxable compensation is included. State income tax form However, you can elect to include nontaxable combat pay in earned income. State income tax form If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. State income tax form (In other words, if one of you makes the election, the other one can also make it but does not have to. State income tax form ) Including this income will give you a larger credit only if your (or your spouse's) other earned income is less than the amount entered on line 3 of Form 2441. State income tax form You should figure your credit both ways and make the election if it gives you a greater tax benefit. State income tax form    You can choose to include your nontaxable combat pay in earned income when figuring your credit for child and dependent care expenses, even if you choose not to include it in earned income for the earned income credit or the exclusion or deduction for dependent care benefits. State income tax form Members of certain religious faiths opposed to social security. State income tax form   This section is for persons who are members of certain religious faiths that are opposed to participation in Social Security Act programs and have an IRS-approved form that exempts certain income from social security and Medicare taxes. State income tax form These forms are: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, and Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits, for use by members of recognized religious groups. State income tax form   Each form is discussed here in terms of what is or is not earned income for purposes of the child and dependent care credit. State income tax form For information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. State income tax form Form 4361. State income tax form   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee are earned income. State income tax form This includes wages, salaries, tips, and other taxable employee compensation. State income tax form   However, amounts you received for ministerial duties, but not as an employee, do not count as earned income. State income tax form Examples include fees for performing marriages and honoraria for delivering speeches. State income tax form   Any amount you received for work that is not related to your ministerial duties is earned income. State income tax form Form 4029. State income tax form   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation are earned income. State income tax form   However, amounts you received as a self-employed individual do not count as earned income. State income tax form What is not earned income?   Earned income does not include: Pensions and annuities, Social security and railroad retirement benefits, Workers' compensation, Interest and dividends, Unemployment compensation, Scholarships or fellowship grants, except for those reported on Form W-2 and paid to you for teaching or other services, Nontaxable workfare payments, Child support payments received, Income of a nonresident alien that is not effectively connected with a U. State income tax form S. State income tax form trade or business, or Any amount received for work while an inmate in a penal institution. State income tax form Rule for student-spouse or spouse not able to care for self. State income tax form   Your spouse is treated as having earned income for any month that he or she is: A full-time student, or Physically or mentally not able to care for himself or herself. State income tax form (Your spouse also must live with you for more than half the year. State income tax form )   If you are filing a joint return, this rule also applies to you. State income tax form You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. State income tax form   Figure the earned income of the nonworking spouse, described under (1) or (2) above, as shown under Earned Income Limit under How To Figure the Credit, later. State income tax form   This rule applies to only one spouse for any one month. State income tax form If, in the same month, both you and your spouse do not work and are either full-time students or not physically or mentally able to care for yourselves, only one of you can be treated as having earned income in that month. State income tax form Full-time student. State income tax form    You are a full-time student if you are enrolled at a school for the number of hours or classes that the school considers full time. State income tax form You must have been a full-time student for some part of each of 5 calendar months during the year. State income tax form (The months need not be consecutive. State income tax form ) School. State income tax form   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. State income tax form A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. State income tax form Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. State income tax form Expenses are considered work-related only if both of the following are true. State income tax form They allow you (and your spouse if filing jointly) to work or look for work. State income tax form They are for a qualifying person's care. State income tax form Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. State income tax form If you are married, generally both you and your spouse must work or look for work. State income tax form One spouse is treated as working during any month he or she is a full-time student or is not physically or mentally able to care for himself or herself. State income tax form Your work can be for others or in your own business or partnership. State income tax form It can be either full time or part time. State income tax form Work also includes actively looking for work. State income tax form However, if you do not find a job and have no earned income for the year, you cannot take this credit. State income tax form See Earned Income Test, earlier. State income tax form An expense is not considered work-related merely because you had it while you were working. State income tax form The purpose of the expense must be to allow you to work. State income tax form Whether your expenses allow you to work or look for work depends on the facts. State income tax form Example 1. State income tax form The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. State income tax form Example 2. State income tax form You work during the day. State income tax form Your spouse works at night and sleeps during the day. State income tax form You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. State income tax form Your expenses are considered work-related. State income tax form Volunteer work. State income tax form   For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. State income tax form Work for part of year. State income tax form   If you work or actively look for work during only part of the period covered by the expenses, then you must figure your expenses for each day. State income tax form For example, if you work all year and pay care expenses of $250 a month ($3,000 for the year), all the expenses are work related. State income tax form However, if you work or look for work for only 2 months and 15 days during the year and pay expenses of $250 a month, your work-related expenses are limited to $625 (2½ months × $250). State income tax form Temporary absence from work. State income tax form   You do not have to figure your expenses for each day during a short, temporary absence from work, such as for vacation or a minor illness, if you have to pay for care anyway. State income tax form Instead, you can figure your credit including the expenses you paid for the period of absence. State income tax form   An absence of 2 weeks or less is a short, temporary absence. State income tax form An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. State income tax form Example. State income tax form You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. State income tax form You become ill and miss 4 months of work but receive sick pay. State income tax form You continue to pay the nanny to care for the children while you are ill. State income tax form Your absence is not a short, temporary absence, and your expenses are not considered work-related. State income tax form Part-time work. State income tax form   If you work part-time, you generally must figure your expenses for each day. State income tax form However, if you have to pay for care weekly, monthly, or in another way that includes both days worked and days not worked, you can figure your credit including the expenses you paid for days you did not work. State income tax form Any day when you work at least 1 hour is a day of work. State income tax form Example 1. State income tax form You work 3 days a week. State income tax form While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. State income tax form You can pay the center $150 for any 3 days a week or $250 for 5 days a week. State income tax form Your child attends the center 5 days a week. State income tax form Your work-related expenses are limited to $150 a week. State income tax form Example 2. State income tax form The facts are the same as in Example 1 except the center does not offer a 3-day option. State income tax form The entire $250 weekly fee may be a work-related expense. State income tax form Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. State income tax form You do not have to choose the least expensive way of providing the care. State income tax form The cost of a paid care provider may be an expense for the care of a qualifying person even if another care provider is available at no cost. State income tax form Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. State income tax form Expenses for household services qualify if part of the services is for the care of qualifying persons. State income tax form See Household Services, later. State income tax form Expenses not for care. State income tax form   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. State income tax form However, you can include small amounts paid for these items if they are incidental to and cannot be separated from the cost of caring for the qualifying person. State income tax form Otherwise, see the discussion of Expenses partly work-related, later. State income tax form   Child support payments are not for care and do not qualify for the credit. State income tax form Education. State income tax form   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. State income tax form   Expenses to attend kindergarten or a higher grade are not expenses for care. State income tax form Do not use these expenses to figure your credit. State income tax form   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. State income tax form   Summer school and tutoring programs are not for care. State income tax form Example 1. State income tax form You take your 3-year-old child to a nursery school that provides lunch and a few educational activities as part of its preschool childcare service. State income tax form The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. State income tax form You can count the total cost when you figure the credit. State income tax form Example 2. State income tax form You place your 10-year-old child in a boarding school so you can work full time. State income tax form Only the part of the boarding school expense that is for the care of your child is a work-related expense. State income tax form You can count that part of the expense in figuring your credit if it can be separated from the cost of education. State income tax form You cannot count any part of the amount you pay the school for your child's education. State income tax form Care outside your home. State income tax form   You can count the cost of care provided outside your home if the care is for your dependent under age 13 or any other qualifying person who regularly spends at least 8 hours each day in your home. State income tax form Dependent care center. State income tax form   You can count care provided outside your home by a dependent care center only if the center complies with all state and local regulations that apply to these centers. State income tax form   A dependent care center is a place that provides care for more than six persons (other than persons who live there) and receives a fee, payment, or grant for providing services for any of those persons, even if the center is not run for profit. State income tax form Camp. State income tax form   The cost of sending your child to an overnight camp is not considered a work-related expense. State income tax form    The cost of sending your child to a day camp may be a work-related expense, even if the camp specializes in a particular activity, such as computers or soccer. State income tax form Transportation. State income tax form   If a care provider takes a qualifying person to or from a place where care is provided, that transportation is for the care of the qualifying person. State income tax form This includes transportation by bus, subway, taxi, or private car. State income tax form However, transportation not provided by a care provider is not for the care of a qualifying person. State income tax form Also, if you pay the transportation cost for the care provider to come to your home, that expense is not for care of a qualifying person. State income tax form Fees and deposits. State income tax form   Fees you paid to an agency to get the services of a care provider, deposits you paid to an agency or preschool, application fees, and other indirect expenses are work-related expenses if you have to pay them to get care, even though they are not directly for care. State income tax form However, a forfeited deposit is not for the care of a qualifying person if care is not provided. State income tax form Example 1. State income tax form You paid a fee to an agency to get the services of the nanny who cares for your 2-year-old daughter while you work. State income tax form The fee you paid is a work-related expense. State income tax form Example 2. State income tax form You placed a deposit with a preschool to reserve a place for your 3-year-old child. State income tax form You later sent your child to a different preschool and forfeited the deposit. State income tax form The forfeited deposit is not for care and so is not a work-related expense. State income tax form Household Services Expenses you pay for household services meet the work-related expense test if they are at least partly for the well-being and protection of a qualifying person. State income tax form Definition. State income tax form   Household services are ordinary and usual services done in and around your home that are necessary to run your home. State income tax form They include the services of a housekeeper, maid, or cook. State income tax form However, they do not include the services of a chauffeur, bartender, or gardener. State income tax form Housekeeper. State income tax form   In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying person. State income tax form Expenses partly work-related. State income tax form   If part of an expense is work-related (for either household services or the care of a qualifying person) and part is for other purposes, you have to divide the expense. State income tax form To figure your credit, count only the part that is work-related. State income tax form However, you do not have to divide the expense if only a small part is for other purposes. State income tax form Example. State income tax form You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. State income tax form The housekeeper spends most of the time doing normal household work and spends 30 minutes a day driving you to and from work. State income tax form You do not have to divide the expenses. State income tax form You can treat the entire expense of the housekeeper as work-related because the time spent driving is minimal. State income tax form Nor do you have to divide the expenses between the two children, even though the expenses are partly for the 15-year-old child who is not a qualifying person, because the expense is also partly for the care of your 9-year-old child, who is a qualifying person. State income tax form However, the dollar limit (discussed later) is based on one qualifying person, not two. State income tax form Meals and lodging provided for housekeeper. State income tax form   If you have expenses for meals that your housekeeper eats in your home because of his or her employment, count these as work-related expenses. State income tax form If you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also. State income tax form Example. State income tax form To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. State income tax form You can count the extra rent and utility expenses for the housekeeper's bedroom as work-related. State income tax form However, if your housekeeper moves into an existing bedroom in your home, you can count only the extra utility expenses as work-related. State income tax form Taxes paid on wages. State income tax form   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. State income tax form For more information on a household employer's tax responsibilities, see Employment Taxes for Household Employers, later. State income tax form Payments to Relatives or Dependents You can count work-related payments you make to relatives who are not your dependents, even if they live in your home. State income tax form However, do not count any amounts you pay to: A dependent for whom you (or your spouse if filing jointly) can claim an exemption, Your child who was under age 19 at the end of the year, even if he or she is not your dependent, A person who was your spouse any time during the year, or The parent of your qualifying person if your qualifying person is your child and under age 13. State income tax form Joint Return Test Generally, married couples must file a joint return to take the credit. State income tax form However, 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 form Legally separated. State income tax form   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. State income tax form You may be eligible to take the credit on your return using head of household filing status. State income tax form Married and living apart. State income tax form   You are not considered married and are eligible to take the credit if all the following apply. State income tax form You file a return apart from your spouse. State income tax form Your home is the home of a qualifying person for more than half the year. State income tax form You pay more than half the cost of keeping up your home for the year. State income tax form Your spouse does not live in your home for the last 6 months of the year. State income tax form Costs of keeping up a home. State income tax form   The costs of keeping up a home normally include property taxes, mortgage interest, rent, utility charges, home repairs, insurance on the home, and food eaten at home. State income tax form   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. State income tax form   They also do not include the purchase, permanent improvement, or replacement of property. State income tax form For example, you cannot include the cost of replacing a water heater. State income tax form However, you can include the cost of repairing a water heater. State income tax form Death of spouse. State income tax form   If your spouse died during the year and you do not remarry before the end of the year, you generally must file a joint return to take the credit. State income tax form If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's own return. State income tax form Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. State income tax form Use Form 2441, Part I, to show the information. State income tax form If you do not have any care providers and you are filing Form 2441 only to report taxable income in Part III, enter “none” in line 1, column (a). State income tax form Information needed. State income tax form   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. State income tax form    If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. State income tax form If the care provider is an organization, then it is the employer identification number (EIN). State income tax form   You do not have to show the taxpayer identification number if the care provider is a tax-exempt organization (such as a church or school). State income tax form In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. State income tax form   If you cannot provide all of the information or the information is incorrect, you must be able to show that you used due diligence (discussed later) in trying to furnish the necessary information. State income tax form Getting the information. State income tax form    You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information from the care provider. State income tax form If you do not use Form W-10, you can get the information from one of the other sources listed in the instructions for Form W-10, including: A copy of the provider's social security card, A copy of the provider's completed Form W-4, Employee's Withholding Allowance Certificate, if he or she is your household employee, A copy of the statement furnished by your employer if the provider is your employer's dependent care plan, or A letter or invoice from the provider if it shows the necessary information. State income tax form    You should keep this information with your tax records. State income tax form Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. State income tax form Due diligence. State income tax form   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. State income tax form However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. State income tax form   You can show due diligence by getting and keeping the provider's completed Form W-10 or one of the other sources of information just listed. State income tax form Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. State income tax form Provider refusal. State income tax form    If the provider refuses to give you the identifying information, you should report on Form 2441 whatever information you have (such as the name and address). State income tax form Enter “See Attached Statement” in the columns calling for the information you do not have. State income tax form Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. State income tax form Be sure to write your name and social security number on this statement. State income tax form The statement will show that you used due diligence in trying to furnish the necessary information. State income tax form U. State income tax form S. State income tax form citizens and resident aliens living abroad. State income tax form   If you are living abroad, your care provider may not have, and may not be required to get, a U. State income tax form S. State income tax form taxpayer identification number (for example, an SSN or an EIN). State income tax form If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. State income tax form How To Figure the Credit Your credit is a percentage of your work-related expenses. State income tax form Your expenses are subject to the earned income limit and the dollar limit. State income tax form The percentage is based on your adjusted gross income. State income tax form Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. State income tax form Expenses prepaid in an earlier year. State income tax form   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. State income tax form Claim the expenses for the later year as if they were actually paid in that later year. State income tax form Expenses not paid until the following year. State income tax form   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. State income tax form You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. State income tax form See Payments for prior year's expenses under Amount of Credit, later. State income tax form If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. State income tax form You may be able to claim a credit for them on your 2014 return. State income tax form Expenses reimbursed. State income tax form   If a state social services agency pays you a nontaxable amount to reimburse you for some of your child and dependent care expenses, you cannot count the expenses that are reimbursed as work-related expenses. State income tax form Example. State income tax form You paid work-related expenses of $3,000. State income tax form You are reimbursed $2,000 by a state social services agency. State income tax form You can use only $1,000 to figure your credit. State income tax form Medical expenses. State income tax form   Some expenses for the care of qualifying persons who are not able to care for themselves may qualify as work-related expenses and also as medical expenses. State income tax form You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. State income tax form   If you use these expenses to figure the credit and they are more than the earned income limit or the dollar limit, discussed later, you can add the excess to your medical expenses. State income tax form However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. State income tax form For information on medical expenses, see Publication 502, Medical and Dental Expenses. State income tax form    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. State income tax form Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. State income tax form See Reduced Dollar Limit, later. State income tax form But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. State income tax form Dependent care benefits. State income tax form    Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person while you work, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. State income tax form Your salary may have been reduced to pay for these benefits. State income tax form If you received benefits as an employee, they should be shown in box 10 of your Form W-2, Wage and Tax Statement. State income tax form See Statement for employee, later. State income tax form Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. State income tax form   Enter the amount of these benefits on Form 2441, Part III, line 12. State income tax form Exclusion or deduction. State income tax form   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. State income tax form Your employer can tell you whether your benefit plan qualifies. State income tax form To claim the exclusion, you must complete Part III of Form 2441. State income tax form You cannot use Form 1040EZ. State income tax form   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. State income tax form Therefore, you would not get an exclusion from wages. State income tax form Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. State income tax form To claim the deduction, you must use Form 2441. State income tax form   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). State income tax form   The definition of earned income for the exclusion or deduction is the same as the definition used when figuring the credit except that earned income for the exclusion or deduction does not include any dependent care benefits you receive. State income tax form    You can choose to include your nontaxable combat pay in earned income when figuring your exclusion or deduction, even if you choose not to include it in earned income for the earned income credit or the credit for child and dependent care expenses. State income tax form Statement for employee. State income tax form   Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. State income tax form Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. State income tax form Effect of exclusion on credit. State income tax form   If you exclude dependent care benefits from your income, the amount of the excluded benefits: Is not included in your work-related expenses, and Reduces the dollar limit, discussed later. State income tax form Earned Income Limit The amount of work-related expenses you use to figure your credit cannot be more than: Your earned income for the year, if you are single at the end of the year, or The smaller of your or your spouse's earned income for the year if you are married at the end of the year. State income tax form Earned income for the purpose of figuring the credit is defined under Earned Income Test, earlier. State income tax form For purposes of item (2), use your spouse's earned income for the entire year, even if you were married for only part of the year. State income tax form Example. State income tax form You remarried on December 3. State income tax form Your earned income for the year was $18,000. State income tax form Your new spouse's earned income for the year was $2,000. State income tax form You paid work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. State income tax form The amount of expenses you use to figure your credit cannot be more than $2,000 (the smaller of your earned income or that of your spouse). State income tax form Separated spouse. State income tax form   If you are legally separated or married and living apart from your spouse (as described under Joint Return Test, earlier), you are not considered married for purposes of the earned income limit. State income tax form Use only your income in figuring the earned income limit. State income tax form Surviving spouse. State income tax form   If your spouse died during the year and you file a joint return as a surviving spouse, you may, but are not required to, take into account the earned income of your spouse who died during the year. State income tax form Community property laws. State income tax form   Disregard community property laws when you figure earned income for this credit. State income tax form Self-employment earnings. State income tax form   If you are self-employed, include your net earnings in earned income. State income tax form For purposes of the child and dependent care credit, net earnings from self-employment generally means the amount from Schedule SE (either Section A or Section B), line 3, minus any deduction for self-employment tax on Form 1040 or Form 1040NR, line 27. State income tax form Include your self-employment earnings in earned income, even if they are less than $400 and you did not file Schedule SE. State income tax form Clergy or church employee. State income tax form   If you are a member of the clergy or a church employee, see the Instructions for Form 2441 for details. State income tax form Statutory employee. State income tax form   If you filed Schedule C (Form 1040) or C-EZ (Form 1040) to report income as a statutory employee, also include as earned income the amount from line 1 of that Schedule C (Form 1040) or C-EZ (Form 1040). State income tax form Net loss. State income tax form   You must reduce your earned income by any net loss from self-employment. State income tax form Optional method if earnings are low or a net loss. State income tax form   If your net earnings from self-employment are low or you have a net loss, you may be able to figure your net earnings by using an optional method instead of the regular method. State income tax form Get Publication 334, Tax Guide for Small Business, for details. State income tax form If you use an optional method to figure net earnings for self-employment tax purposes, include those net earnings in your earned income for this credit. State income tax form In this case, subtract any deduction you claimed on Form 1040 or Form 1040NR, line 27, from the total of the amounts on Schedule SE, Section B, lines 3 and 4b, to figure your net earnings. State income tax form You or your spouse is a student or not able to care for self. State income tax form   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. State income tax form His or her earned income for each month is considered to be at least $250 if there is one qualifying person in your home, or at least $500 if there are two or more. State income tax form Spouse works. State income tax form   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. State income tax form Spouse qualifies for part of month. State income tax form   If your spouse is a full-time student or not able to care for himself or herself for only part of a month, the full $250 (or $500) still applies for that month. State income tax form You are a student or not able to care for self. State income tax form   These rules also apply if you are a student or not able to care for yourself and are filing a joint return. State income tax form For each month or part of a month you are a student or not able to care for yourself, your earned income is considered to be at least $250 (or $500). State income tax form If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. State income tax form Both spouses qualify. State income tax form   If, in the same month, both you and your spouse are either full-time students or not able to care for yourselves, only one spouse can be considered to have this earned income of $250 (or $500) for that month. State income tax form Example. State income tax form Jim works and keeps up a home for himself and his wife Sharon. State income tax form Because of an accident, Sharon is not able to care for herself for 11 months during the tax year. State income tax form During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. State income tax form These expenses also qualify as medical expenses. State income tax form Their adjusted gross income is $29,000 and the entire amount is Jim's earned income. State income tax form Jim and Sharon's earned income limit is the smallest of the following amounts. State income tax form   Jim and Sharon's Earned Income Limit   1) Work-related expenses Jim paid $   3,300   2) Jim's earned income $   29,000   3) Income considered earned by Sharon (11 × $250) $    2,750   Jim and Sharon can use $2,750 to figure the credit and treat the balance of $550 ($3,300 − $2,750) as a medical expense. State income tax form However, if they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit. State income tax form Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. State income tax form This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. State income tax form If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. State income tax form This limit does not need to be divided equally among them. State income tax form For example, if your work-related expenses for the care of one qualifying person are $3,200 and your work-related expenses for another qualifying person are $2,800, you can use the total, $6,000, when figuring the credit. State income tax form Yearly limit. State income tax form   The dollar limit is a yearly limit. State income tax form The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. State income tax form Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. State income tax form Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. State income tax form Example 1. State income tax form You pay $500 a month for after-school care for your son. State income tax form He turned 13 on May 1 and is no longer a qualifying person. State income tax form You can use the $2,000 of expenses for his care January through April to figure your credit because it is not more than the $3,000 yearly limit. State income tax form Example 2. State income tax form In July of this year, to permit your spouse to begin a new job, you enrolled your 3-year-old daughter in a nursery school that provides preschool childcare. State income tax form You paid $300 per month for the childcare. State income tax form You can use the full $1,800 you paid ($300 × 6 months) as qualified expenses because it is not more than the $3,000 yearly limit. State income tax form Reduced Dollar Limit If you received dependent care benefits that you exclude or deduct from your income, you must subtract that amount from the dollar limit that applies to you. State income tax form Your reduced dollar limit is figured on Form 2441, Part III. State income tax form See Dependent Care Benefits, earlier, for information on excluding or deducting these benefits. State income tax form Example 1. State income tax form George is a widower with one child and earns $24,000 a year. State income tax form He pays work-related expenses of $2,900 for the care of his 4-year-old child and qualifies to claim the credit for child and dependent care expenses. State income tax form His employer pays an additional $1,000 under a qualified dependent care benefit plan. State income tax form This $1,000 is excluded from George's income. State income tax form Although the dollar limit for his work-related expenses is $3,000 (one qualifying person), George figures his credit on only $2,000 of the $2,900 work-related expenses he paid. State income tax form This is because his dollar limit is reduced as shown next. State income tax form   George's Reduced Dollar Limit 1) Maximum allowable expenses for one qualifying person $3,000 2) Minus: Dependent care benefits George excludes from income −1,000 3) Reduced dollar limit on expenses George can use for the credit $2,000 Example 2. State income tax form Randall is married and both he and his wife are employed. State income tax form Each has earned income in excess of $6,000. State income tax form They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. State income tax form Randall's work-related expenses are $6,000 for the year. State income tax form Randall's employer has a dependent care assistance program as part of its cafeteria plan, which allows employees to make pre-tax contributions to a dependent care flexible spending arrangement. State income tax form Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. State income tax form Although the dollar limit for his work-related expenses is $6,000 (two or more qualifying persons), Randall figures his credit on only $1,000 of the $6,000 work-related expense paid. State income tax form This is because his dollar limit is reduced as shown next. State income tax form   Randall's Reduced Dollar Limit 1) Maximum allowable expenses for two qualifying persons $6,000 2) Minus: Dependent care benefits selected from employer's cafeteria plan and  excluded from Randall's income −5,000 3) Reduced dollar limit on work-related expenses Randall can use for the credit $1,000 Amount of Credit To determine the amount of your credit, multiply your work-related expenses (after applying the earned income and dollar limits) by a percentage. State income tax form This percentage depends on your adjusted gross income shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. State income tax form The following table shows the percentage to use based on adjusted gross income. State income tax form   IF your adjusted gross income is: THEN the       Over:       But not over:   percentage is:       $0   —   $15,000   35%       15,000   —   17,000   34%       17,000   —   19,000   33%       19,000   —   21,000   32%       21,000   —   23,000   31%       23,000   —   25,000   30%       25,000   —   27,000   29%       27,000   —   29,000   28%       29,000   —   31,000   27%       31,000   —   33,000   26%       33,000   —   35,000   25%       35,000   —   37,000   24%       37,000   —   39,000   23%       39,000   —   41,000   22%       41,000   —   43,000   21%       43,000   —   No limit   20%   To qualify for the credit, you must have one or more qualifying persons. State income tax form You should show the expenses for each person on Form 2441, line 2, column (c). State income tax form However, it is possible a qualifying person could have no expenses and a second qualifying person could have expenses exceeding $3,000. State income tax form You should list -0- for the one person and the actual amount for the second person. State income tax form The $6,000 limit that applies to two or more qualifying persons would still be used to compute your credit unless you already excluded or deducted, in Part III of Form 2441, certain dependent care benefits paid to you (or on your behalf) by your employer. State income tax form Example. State income tax form Roger and Megan Paris have two qualifying children. State income tax form They received $1,000 of dependent care benefits from Megan's employer during 2013, but they incurred a total of $19,500 of child and dependent care expenses. State income tax form They complete Part III of Form 2441 to exclude the $1,000 from their taxable income (offsetting $1,000 of their expenses). State income tax form Roger and Megan continue to line 27 to figure their credit using the remaining $18,500 of expenses. State income tax form Line 30 tells them to complete line 2 without including any dependent care benefits. State income tax form They complete line 2 of Form 2441, listing both Susan and James, as shown in the Line 2 example above. State income tax form Line 2 Example (a) Qualifying person's name (b) Qualifying person's social security number (c) Qualified expenses you incurred and paid in 2013 for the person listed in column (a) First Last Susan Paris 123-00-6789 -0- James Paris 987-00-4321 18,500. State income tax form 00 All of Susan's expenses were covered by the $1,000 of employer-provided dependent care benefits. State income tax form However, their son James has special needs and they paid $18,500 for his care. State income tax form Line 3 imposes a $5,000 limit for two or more children ($6,000 limit, minus $1,000 already excluded from income = $5,000) and Roger and Megan continue to complete the form. State income tax form Even though line 2 indicates one of the Paris children did not have any dependent care expenses, it does not change the fact that they had two qualifying children for the purposes of Form 2441. State income tax form Payments for prior year's expenses. State income tax form   If you had work-related expenses in 2012 that you paid in 2013, you may be able to increase the credit on your 2013 return. State income tax form Attach a statement to your form showing how you figured the additional amount from 2012. State income tax form Then enter “CPYE” (Credit for Prior Year Expenses) and the amount of the credit on the dotted line next to line 9 on Form 2441. State income tax form Also enter the name and taxpayer identification number of the person for whom you paid the prior year's expenses. State income tax form Then add this credit to the amount on line 9, and replace the amount on line 9 with the total. State income tax form See Worksheet A. State income tax form Example. State income tax form In 2012, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. State income tax form Of the $2,600, they paid $2,000 in 2012 and $600 in 2013. State income tax form Their adjusted gross income for 2012 was $30,000. State income tax form Sam's earned income of $14,000 was less than Kate's earned income. State income tax form A credit for their 2012 expenses paid in 2013 is not allowed in 2012. State income tax form It is allowed for the 2013 tax year, but they must use their adjusted gross income for 2012 to compute the amount. State income tax form The filled-in Worksheet A they used to figure this credit is shown later. State income tax form Sam and Kate add the $162 from line 13 of this worksheet to their 2013 credit and enter the total on their Form 2441, line 9. State income tax form They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9. State income tax form Worksheet A. State income tax form Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. State income tax form 1. State income tax form   Enter your 2012 qualified expenses paid in 2012 1. State income tax form     2. State income tax form   Enter your 2012 qualified expenses paid in 2013 2. State income tax form     3. State income tax form   Add the amounts on lines 1 and 2 3. State income tax form     4. State income tax form   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. State income tax form     5. State income tax form   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. State income tax form     6. State income tax form   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. State income tax form     7. State income tax form   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. State income tax form     8. State income tax form   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. State income tax form     9. State income tax form   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. State income tax form     10. State income tax form   Subtract the amount on line 9 from the amount on line 8 and enter the result. State income tax form If zero or less, stop here. State income tax form You cannot increase your 2013 credit by any previous year's expenses 10. State income tax form     11. State income tax form   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. State income tax form     12. State income tax form   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. State income tax form             IF your 2012 adjusted gross income is:   THEN the decimal                 Over:   But not over:     amount is:                 $0 — $15,000     . State income tax form 35                 15,000 — 17,000     . State income tax form 34                 17,000 — 19,000     . State income tax form 33                 19,000 — 21,000     . State income tax form 32                 21,000 — 23,000     . State income tax form 31                 23,000 — 25,000     . State income tax form 30                 25,000 — 27,000     . State income tax form 29                 27,000 — 29,000     . State income tax form 28                 29,000 — 31,000     . State income tax form 27                 31,000 — 33,000     . State income tax form 26                 33,000 — 35,000     . State income tax form 25                 35,000 — 37,000     . State income tax form 24                 37,000 — 39,000     . State income tax form 23                 39,000 — 41,000     . State income tax form 22                 41,000 — 43,000     . State income tax form 21                 43,000 — No limit     . State income tax form 20           13. State income tax form   Multiply line 10 by line 12. State income tax form Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. State income tax form Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses           Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. State income tax form       Worksheet A. State income tax form Filled-in Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. State income tax form 1. State income tax form   Enter your 2012 qualified expenses paid in 2012 1. State income tax form   $2,000 2. State income tax form   Enter your 2012 qualified expenses paid in 2013 2. State income tax form   600 3. State income tax form   Add the amounts on lines 1 and 2 3. State income tax form   2,600 4. State income tax form   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. State income tax form   3,000 5. State income tax form   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. State income tax form   0 6. State income tax form   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. State income tax form   3,000 7. State income tax form   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. State income tax form   14,000 8. State income tax form   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. State income tax form   2,600 9. State income tax form   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. State income tax form   2,000 10. State income tax form   Subtract the amount on line 9 from the amount on line 8 and enter the result. State income tax form If zero or less, stop here. State income tax form You cannot increase your 2013 credit by any previous year's expenses 10. State income tax form   600 11. State income tax form   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. State income tax form   30,000 12. State income tax form   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. State income tax form   . State income tax form 27         IF your 2012 adjusted gross income is:   THEN the decimal                 Over   But not over     amount is:                 $0 — $15,000     . State income tax form 35                 15,000 — 17,000     . State income tax form 34                 17,000 — 19,000     . State income tax form 33                 19,000 — 21,000     . State income tax form 32                 21,000 — 23,000     . State income tax form 31                 23,000 — 25,000     . State income tax form 30                 25,000 — 27,000     . State income tax form 29                 27,000 — 29,000     . State income tax form 28                 29,000 — 31,000     . State income tax form 27                 31,000 — 33,000     . State income tax form 26                 33,000 — 35,000     . State income tax form 25                 35,000 — 37,000     . State income tax form 24                 37,000 — 39,000     . State income tax form 23                 39,000 — 41,000     . State income tax form 22                 41,000 — 43,000     . State income tax form 21                 43,000 — No limit     . State income tax form 20           13. State income tax form   Multiply line 10 by line 12. State income tax form Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. State income tax form Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses             Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. State income tax form   $162   How To Claim the Credit To claim the credit, you can file Form 1040, Form 1040A, or Form 1040NR. State income tax form You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. State income tax form Form 1040, Form 1040A, or Form 1040NR. State income tax form    You must complete Form 2441 and attach it to your Form 1040, Form 1040A, or Form 1040NR. State income tax form Enter the credit on your Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46. State income tax form Limit on credit. State income tax form    The amount of credit you can claim is limited to your tax. State income tax form For more information, see the Instructions for Form 2441. State income tax form Tax credit not refundable. State income tax form   You cannot get a refund for any part of the credit that is more than this limit. State income tax form Recordkeeping. State income tax form You should keep records of your work-related expenses. State income tax form Also, if your dependent or spouse is not able to care for himself or herself, your records should show both the nature and length of the disability. State income tax form Other records you should keep to support your claim for the credit are described under Provider Identification Test, earlier. State income tax form Employment Taxes for Household Employers If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer. State income tax form If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. State income tax form If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. State income tax form Self-employed persons who are in business for themselves are not household employees. State income tax form Usually, you are not a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business. State income tax form If you use a placement agency that exercises control over what work is done and how it will be done by a babysitter or companion who works in your home, the worker is not your employee. State income tax form This control could include providing rules of conduct and appearance and requiring regular reports. State income tax form In this case, you do not have to pay employment taxes. State income tax form But, if an agency merely gives you a list of sitters and you hire one from that list, and pay the sitter directly, the sitter may be your employee. State income tax form If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. State income tax form Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. State income tax form Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. State income tax form Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. State income tax form For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. State income tax form State employment tax. State income tax form   You may also have to pay state unemployment tax. State income tax form Contact your state unemployment tax office for information. State income tax form You should also find out whether you need to pay or collect other state employment taxes or carry worker's compensation insurance. State income tax form For a list of state unemployment tax agencies, visit the U. State income tax form S. State income tax form Department of Labor's website. State income tax form To find that website, use the link in Publication 926 or search online. State income tax form How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. State income tax form Free help with your tax return. State income tax form   You can get free help preparing your return nationwide from IRS-certified volunteers. State income tax form The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. State income tax form The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. State income tax form Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. State income tax form In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. State income tax form To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. State income tax form gov, download the IRS2Go app, or call 1-800-906-9887. State income tax form   As part of the TCE program, AARP offers the Tax-Aide counseling program. State income tax form To find the nearest AARP Tax-Aide site, visit AARP's website at www. State income tax form aarp. State income tax form org/money/taxaide or call 1-888-227-7669. State income tax form For more information on these programs, go to IRS. State income tax form gov and enter “VITA” in the search box. State income tax form Internet. State income tax form    IRS. State income tax form gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. State income tax form Download the free IRS2Go app from the iTunes app store or from Google Play. State income tax form Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. State income tax form Check the status of your 2013 refund with the Where's My Refund? application on IRS. State income tax form gov or download the IRS2Go app and select the Refund Status option. State income tax form The IRS issues more than 9 out of 10 refunds in less than 21 days. State income tax form Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. State income tax form You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. State income tax form The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. State income tax form Use the Interactive Tax Assistant (ITA) to research your tax questions. State income tax form No need to wait on the phone or stand in line. State income tax form The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. State income tax form When you reach the response screen, you can print the entire interview and the final response for your records. State income tax form New subject areas are added on a regular basis. State income tax form  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. State income tax form gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. State income tax form You can use the IRS Tax Map, to search publications and instructions by topic or keyword. State income tax form The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. State income tax form When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. State income tax form Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. State income tax form You can also ask the IRS to mail a return or an account transcript to you. State income tax form Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. State income tax form gov or by calling 1-800-908-9946. State income tax form Tax return and tax account transcripts are generally available for the current year and the past three years. State income tax form Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. State income tax form Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. State income tax form If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. State income tax form Check the status of your amended return using Where's My Amended Return? Go to IRS. State income tax form gov and enter Where's My Amended Return? in the search box. State income tax form You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. State income tax form It can take up to 3 weeks from the date you mailed it to show up in our system. State income tax form Make a payment using one of several safe and convenient electronic payment options available on IRS. State income tax form gov. State income tax form Select the Payment tab on the front page of IRS. State income tax form gov for more information. State income tax form Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. State income tax form Figure your income tax withholding with the IRS Withholding Calculator on IRS. State income tax form gov. State income tax form Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. State income tax form Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. State income tax form gov. State income tax form Request an Electronic Filing PIN by going to IRS. State income tax form gov and entering Electronic Filing PIN in the search box. State income tax form Download forms, instructions and publications, including accessible versions for people with disabilities. State income tax form Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. State income tax form gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. State income tax form An employee can answer questions about your tax account or help you set up a payment plan. State income tax form Before you visit, check the Office Locator on IRS. State income tax form gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. State income tax form If you have a special need, such as a disability, you can request an appointment. State income tax form Call the local number listed in the Office Locator, or look in the phone book under Unit