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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Student Income Tax Return

Filing Extension For 2011How To File 1040x Amended ReturnWww Irs Gov Form1040x1040 Tax FormEfile IrsW2 Ez FormWhere Can I File State Taxes Free OnlineHr Block Free TaxIrs Free File Tax ReturnIrsFree 1040 Ez2012 Irs Tax Forms 1040aMilitary Turbo Tax2012 Ez Tax FormPa Ez FormIrs 1040x Form Instructions2009 Tax FormForm 1040xCan You File A 1040x Online1040ez Form InstructionsH&r Block Free TaxH And R Block On LineSample 1040ezHow To Fill Out The 1040ezE-file Back Taxes Free For Past 3 Years TaxeFiling 1040ez FormHow To File A 2012 Tax ReturnAmend My Taxes OnlineHow Do You File An Amended Tax ReturnIrs Forms 1040ez 2011Irs Tax Forms 1040ezAmended Tax Return DeadlineAmending My Tax ReturnPrintable Tax Form 1040Need To File 2010 Taxes OnlineFree File State ReturnH And R Block 1040ezH&r Block Free Military1040ez Income Tax FormHow Do I Amend My 2009 Tax Return

Student Income Tax Return

Student income tax return 31. Student income tax return   Tax on Unearned Income of Certain Children Table of Contents What's New Introduction Useful Items - You may want to see: Which Parent's Return To UseParents Who Do Not File a Joint Return Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, lines A–C) Step 1. Student income tax return Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Student income tax return Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Student income tax return Figuring the Child's Tax (Form 8615, Part III) What's New Net Investment Income Tax. Student income tax return . Student income tax return  For tax years beginning after December 31, 2012, a child whose tax is figured on Form 8615 may be subject to the Net Investment Income Tax (NIIT). Student income tax return NIIT is a 3. Student income tax return 8% tax on the lesser of the net investment income or the excess of the child's modified adjusted gross income (MAGI) over the threshold amount. Student income tax return Use Form 8960, Net Investment Income Tax, to figure this tax. Student income tax return For more information on NIIT, go to www. Student income tax return irs. Student income tax return gov and enter “Net Investment Income Tax” in the search box. Student income tax return Introduction This chapter discusses the following two rules that may affect the tax on unearned income of certain children. Student income tax return If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. Student income tax return (See Parent's Election To Report Child's Interest and Dividends , later. Student income tax return ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Student income tax return (See Tax for Certain Children Who Have Unearned Income , later. Student income tax return ) For these rules, the term “child” includes a legally adopted child and a stepchild. Student income tax return These rules apply whether or not the child is a dependent. Student income tax return Useful Items - You may want to see: Publication 929 Tax Rules for Children and Dependents Form (and Instructions) 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. Student income tax return The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . Student income tax return Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. Student income tax return Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Student income tax return Parents are married. Student income tax return   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Student income tax return Parents not living together. Student income tax return   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. Student income tax return If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Student income tax return   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in chapter 2. Student income tax return Parents are divorced. Student income tax return   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. Student income tax return Custodial parent remarried. Student income tax return   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Student income tax return Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Student income tax return Do not use the return of the noncustodial parent. Student income tax return   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Student income tax return If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Student income tax return Parents never married. Student income tax return   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. Student income tax return If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Student income tax return Widowed parent remarried. Student income tax return   If a widow or widower remarries, the new spouse is treated as the child's other parent. Student income tax return The rules explained earlier under Custodial parent remarried apply. Student income tax return Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. Student income tax return If you do, your child will not have to file a return. Student income tax return You can make this election only if all the following conditions are met. Student income tax return Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Student income tax return Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Student income tax return The child's gross income was less than $10,000. Student income tax return The child is required to file a return unless you make this election. Student income tax return The child does not file a joint return for the year. Student income tax return No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. Student income tax return No federal income tax was taken out of your child's income under the backup withholding rules. Student income tax return You are the parent whose return must be used when applying the special tax rules for children. Student income tax return (See Which Parent's Return To Use , earlier. Student income tax return ) These conditions are also shown in Figure 31-A. Student income tax return Certain January 1 birthdays. Student income tax return   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Student income tax return You cannot make this election for such a child unless the child was a full-time student. Student income tax return   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Student income tax return You cannot make this election for such a child. Student income tax return Full-time student. Student income tax return   A full-time student is a child who during some part of each of any 5 calendar months of the year was enrolled as a full-time student at a school, or took a full-time on-farm training course given by a school or a state, county, or local government agency. Student income tax return A school includes a technical, trade, or mechanical school. Student income tax return It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Student income tax return How to make the election. Student income tax return   Make the election by attaching Form 8814 to your Form 1040. Student income tax return (If you make this election, you cannot file Form 1040A or Form 1040EZ. Student income tax return ) Attach a separate Form 8814 for each child for whom you make the election. Student income tax return You can make the election for one or more children and not for others. Student income tax return Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Student income tax return Rate may be higher. Student income tax return   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. Student income tax return This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Student income tax return However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. Student income tax return Deductions you cannot take. Student income tax return   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. Student income tax return The additional standard deduction if the child is blind. Student income tax return The deduction for a penalty on an early withdrawal of your child's savings. Student income tax return Itemized deductions (such as your child's investment expenses or charitable contributions). Student income tax return Reduced deductions or credits. Student income tax return   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return including the following. Student income tax return Deduction for contributions to a traditional individual retirement arrangement (IRA). Student income tax return Deduction for student loan interest. Student income tax return Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Student income tax return Credit for child and dependent care expenses. Student income tax return Child tax credit. Student income tax return Education tax credits. Student income tax return Earned income credit. Student income tax return Penalty for underpayment of estimated tax. Student income tax return   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. Student income tax return If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. Student income tax return See chapter 4 for more information. Student income tax return Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Student income tax return Only the amount over $2,000 is added to your income. Student income tax return The amount over $2,000 is shown on Form 8814, line 6. Student income tax return Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Student income tax return Include the amount from Form 8814, line 12, on Form 1040, line 21. Student income tax return Enter “Form 8814” on the dotted line next to line 21. Student income tax return If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040, line 21. Student income tax return Capital gain distributions and qualified dividends. Student income tax return   If your child's dividend income included any capital gain distributions, see Capital gain distributions under Figuring Child's Income in Publication 929, Part 2. Student income tax return If your child's dividend income included any qualified dividends, see Qualified dividends under Figuring Child's Income in Publication 929, Part 2. Student income tax return Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. Student income tax return This tax is added to the tax figured on your income. Student income tax return This additional tax is the smaller of: 10% × (your child's gross income − $1,000), or $100. Student income tax return Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44. Student income tax return Check box a on Form 1040, line 44. Student income tax return Figure 31-A. Student income tax return Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Student income tax return Figure 31–A. Student income tax return Can You Include Your Child's Income On Your Tax Return? Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Student income tax return If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. Student income tax return Attach the completed form to the child's Form 1040 or Form 1040A. Student income tax return When Form 8615 must be filed. Student income tax return   Form 8615 must be filed for a child if all of the following statements are true. Student income tax return The child's investment income was more than $2,000. Student income tax return The child is required to file a return for 2013. Student income tax return The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. Student income tax return At least one of the child's parents was alive at the end of 2013. Student income tax return The child does not file a joint return for 2013. Student income tax return These conditions are also shown in  Figure 31-B. Student income tax return Earned income. Student income tax return   Earned income includes salaries, wages, tips, and other payments received for personal services performed. Student income tax return It does not include unearned income as defined later in this chapter. Student income tax return Support. Student income tax return   Your child's support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. Student income tax return To figure your child's support, count support provided by you, your child, and others. Student income tax return However, a scholarship received by your child is not considered support if your child is a full-time student. Student income tax return See chapter 3 for details about support. Student income tax return Certain January 1 birthdays. Student income tax return   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Student income tax return Figure 31-B. Student income tax return Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Student income tax return Figure 31-B. Student income tax return Do You Have To Use Form 8615 To Figure Your Child's Tax?    IF a child was born on. Student income tax return . Student income tax return . Student income tax return THEN, at the end of 2013, the child is considered to be. Student income tax return . Student income tax return . Student income tax return January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Student income tax return The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Student income tax return  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. Student income tax return  ***Do not use Form 8615 for this child. Student income tax return Providing Parental Information (Form 8615, lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. Student income tax return (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Student income tax return ) On line C, check the box for the parent's filing status. Student income tax return See Which Parent's Return To Use at the beginning of this chapter for information on which parent's return information must be used on Form 8615. Student income tax return Parent with different tax year. Student income tax return   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. Student income tax return Parent's return information not known timely. Student income tax return   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. Student income tax return   You can use any reasonable estimate. Student income tax return This includes using information from last year's return. Student income tax return If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Student income tax return    When you get the correct information, file an amended return on Form 1040X, Amended U. Student income tax return S. Student income tax return Individual Income Tax Return. Student income tax return   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Student income tax return S. Student income tax return Individual Income Tax Return. Student income tax return Extensions are discussed in chapter 1. Student income tax return Step 1. Student income tax return Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. Student income tax return To do that, use Form 8615, Part I. Student income tax return Line 1 (unearned income). Student income tax return   If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. Student income tax return Adjusted gross income is shown on Form 1040, line 38, or Form 1040A, line 22. Student income tax return Form 1040EZ cannot be used if Form 8615 must be filed. Student income tax return   If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. Student income tax return   However, if the child has: excluded any foreign earned income, deducted either a loss from self-employment, or deducted a net operating loss from another year, then use the Alternate Worksheet for Form 8615, Line 1, in Publication 929 to figure the amount to enter on Form 8615, line 1. Student income tax return Unearned income defined. Student income tax return   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually done. Student income tax return It includes taxable interest, dividends (including capital gain distributions), capital gains, unemployment compensation, the taxable part of social security and pension payments, and certain distributions from trusts. Student income tax return Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). Student income tax return Nontaxable income. Student income tax return   For this purpose, unearned income includes only amounts the child must include in total income. Student income tax return Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Student income tax return Income from property received as a gift. Student income tax return   A child's unearned income includes all income produced by property belonging to the child. Student income tax return This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. Student income tax return   A child's unearned income includes income produced by property given as a gift to the child. Student income tax return This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Student income tax return Example. Student income tax return Amanda Black, age 13, received the following income. Student income tax return Dividends — $800 Wages — $2,100 Taxable interest — $1,200 Tax-exempt interest — $100 Net capital gains — $100 The dividends were qualified dividends on stock given to her by her grandparents. Student income tax return Amanda's unearned income is $2,100. Student income tax return This is the total of the dividends ($800), taxable interest ($1,200), and net capital gains ($100). Student income tax return Her wages are earned (not unearned) income because they are received for work actually done. Student income tax return Her tax-exempt interest is not included because it is nontaxable. Student income tax return Trust income. Student income tax return   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. Student income tax return   However, for purposes of completing Form 8615, a taxable distribution from a qualified disability trust is considered earned income, not unearned income. Student income tax return Line 2 (deductions). Student income tax return   If the child does not itemize deductions on Schedule A (Form 1040), enter $2,000 on line 2. Student income tax return   If the child does itemize deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29, that are directly connected with the production of unearned income entered on line 1, or $2,000. Student income tax return Directly connected. Student income tax return   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. Student income tax return These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Student income tax return   These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Student income tax return Only the amount greater than 2% of the child's adjusted gross income can be deducted. Student income tax return See chapter 28 for more information. Student income tax return Example 1. Student income tax return Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2% limit) that are directly connected with his unearned income. Student income tax return His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Student income tax return Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly connected itemized deductions of $300. Student income tax return Example 2. Student income tax return Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Student income tax return She has no other income. Student income tax return She has itemized deductions of $1,050 (net of the 2% limit) that are directly connected with the production of her unearned income. Student income tax return Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Student income tax return The amount on line 2 is $2,050. Student income tax return This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Student income tax return Line 3. Student income tax return   Subtract line 2 from line 1 and enter the result on this line. Student income tax return If zero or less, do not complete the rest of the form. Student income tax return However, you must still attach Form 8615 to the child's tax return. Student income tax return Figure the tax on the child's taxable income in the normal manner. Student income tax return Line 4 (child's taxable income). Student income tax return   Enter on line 4 the child's taxable income from Form 1040, line 43, or Form 1040A, line 27. Student income tax return   However, if the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, see the Form 8615 instructions or Pub. Student income tax return 929. Student income tax return Line 5 (net unearned income). Student income tax return   A child's net unearned income cannot be more than his or her taxable income. Student income tax return Enter on Form 8615, line 5, the smaller of line 3 or line 4. Student income tax return This is the child's net unearned income. Student income tax return   If zero or less, do not complete the rest of the form. Student income tax return However, you must still attach Form 8615 to the child's tax return. Student income tax return Figure the tax on the child's taxable income in the normal manner. Student income tax return Step 2. Student income tax return Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. Student income tax return The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. Student income tax return When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. Student income tax return For example, do not refigure the medical expense deduction. Student income tax return Figure the tentative tax on Form 8615, lines 6 through 13. Student income tax return Note. Student income tax return If the child or parent has any capital gains or losses, get Publication 929 for help in completing Form 8615, Part II. Student income tax return Line 6 (parent's taxable income). Student income tax return   Enter on line 6 the parent's taxable income from Form 1040, line 43, Form 1040A, line 27, or Form 1040EZ, line 6. Student income tax return   If the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) was used to figure the parent's tax, enter the amount from line 3 of that worksheet instead of the parent's taxable income. Student income tax return Line 7 (net unearned income of other children). Student income tax return   If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. Student income tax return Do not include the amount from line 5 of the Form 8615 being completed. Student income tax return Example. Student income tax return Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Student income tax return The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon — $800 Jerry — $600 Mike — $1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. Student income tax return Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Student income tax return Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Student income tax return Other children's information not available. Student income tax return   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. Student income tax return See Parent's return information not known timely , earlier. Student income tax return Line 11 (tentative tax). Student income tax return   Subtract line 10 from line 9 and enter the result on this line. Student income tax return This is the tentative tax. Student income tax return   If line 7 is blank, skip lines 12a and 12b and enter the amount from line 11 on line 13. Student income tax return Also skip the discussion for lines 12a and 12b that follows. Student income tax return Lines 12a and 12b (dividing the tentative tax). Student income tax return   If an amount is entered on line 7, divide the tentative tax shown on line 11 among the children according to each child's share of the total net unearned income. Student income tax return This is done on lines 12a, 12b, and 13. Student income tax return Add the amount on line 7 to the amount on line 5 and enter the total on line 12a. Student income tax return Divide the amount on line 5 by the amount on line 12a and enter the result, as a decimal, on line 12b. Student income tax return Example. Student income tax return In the earlier example under Line 7 (net unearned income of other children), Sharon's Form 8615 shows $1,600 on line 7. Student income tax return The amount entered on line 12a is $2,400, the total of the amounts on lines 5 and 7 ($800 + $1,600). Student income tax return The decimal on line 12b is  . Student income tax return 333, figured as follows and rounded to three places. Student income tax return   $800 = . Student income tax return 333     $2,400   Step 3. Student income tax return Figuring the Child's Tax (Form 8615, Part III) The final step in figuring a child's tax using Form 8615 is to determine the larger of: The total of: The child's share of the tentative tax based on the parent's tax rate, plus The tax on the child's taxable income in excess of net unearned income, figured at the child's tax rate, or The tax on the child's taxable income, figured at the child's tax rate. Student income tax return This is the child's tax. Student income tax return It is figured on Form 8615, lines 14 through 18. Student income tax return Alternative minimum tax. Student income tax return   A child may be subject to alternative minimum tax (AMT) if he or she has certain items given preferential treatment under the tax law. Student income tax return See Alternative Minimum Tax (AMT) in chapter 30. Student income tax return    For more information on who is liable for AMT and how to figure it, see Form 6251, Alternative Minimum Tax—Individuals. Student income tax return For information on special limits that apply to a child who files Form 6251, see Certain Children Under Age 24 in the Instructions for Form 6251. Student income tax return Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Tax Relief for Victims of Severe Storms, Flooding, Mudslides and Landslides in West Virginia

Updated 4/20/2012 to include Lincoln and Mingo counties

WVA-2012-2, March 27, 2012

CHARLESTON — Victims of the severe storms, flooding, mudslides and landslides that began on March 15, 2012 in parts of West Virginia may qualify for tax relief from the Internal Revenue Service.

The President has declared Lincoln, Logan and Mingo counties a federal disaster area. Individuals who reside or have a business in this county may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after March 15, and on or before May 31, have been postponed to May 31, 2012. This includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an individual retirement account (IRA).  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after March 15, and on or before March 30, as long as the deposits are made by March 30, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Covered Disaster Area

The counties above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until May 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after March 15 and on or before May 31.

The IRS also gives affected taxpayers until May 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after March 15 and on or before May 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after March 15 and on or before March 30 provided the taxpayer makes these deposits by March 30.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “West Virginia/Severe Storms, Flooding, Mudslides, and Landslides” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM (800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

Page Last Reviewed or Updated: 06-Mar-2014

The Student Income Tax Return

Student income tax return Car Expenses Table of Contents Introduction Depreciation of CarSpecial Depreciation Allowance Depreciation Limit Amended Return Election Not To Claim Special Allowance If you purchased a car after September 10, 2001, for use in your business (or as an employee) and figure your deductible expenses using the actual car expense method, new law contains provisions that may affect your depreciation deduction for that car. Student income tax return Publication 463, Travel, Entertainment, Gift, and Car Expenses, contains information on figuring depreciation on your car. Student income tax return However, Publication 463 does not contain the new provisions because it was printed before the law was enacted. Student income tax return The new provisions are in the Supplement to Publication 463, which is reprinted below. Student income tax return Supplement to Publication 463 Travel, Entertainment, Gift, and Car Expenses   Introduction This supplemental publication is for taxpayers who purchased a car for business purposes after September 10, 2001, and figure their deductible expenses, including a deduction for depreciation, using the actual car expense method. Student income tax return After Publication 463 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. Student income tax return Certain provisions of this new law may reduce your taxes for 2001. Student income tax return The new law contains the following provisions. Student income tax return A new depreciation deduction, the special depreciation allowance. Student income tax return An increase in the limit on depreciation for any car for which you claim the new special depreciation allowance. Student income tax return If you have already filed your 2001 return, you may wish to file an amended return to claim any of these benefits. Student income tax return See Amended Return, later. Student income tax return Depreciation of Car If you used the actual car expense method to figure your deduction for a car you own and use in your business (or as an employee), you generally can claim a depreciation deduction. Student income tax return However, there is a limit on the depreciation deduction you can take for your car each year. Student income tax return See Depreciation Limit later. Student income tax return Special Depreciation Allowance The new law allows you to claim a special depreciation allowance. Student income tax return This special allowance is a deduction equal to 30% of the depreciable basis of qualified property. Student income tax return You figure the amount of the special depreciation allowance after any section 179 deduction you choose to claim, but before figuring your regular depreciation deduction under the Modified Accelerated Cost Recovery System (MACRS). Student income tax return See Depreciation Deduction under Actual Car Expenses in chapter 4 of Publication 463 for information about MACRS. Student income tax return You can claim the special depreciation allowance only for the year the qualified property is placed in service. Student income tax return Qualified property. Student income tax return   Qualified property includes a car (any four-wheeled vehicle, including a truck or van not more than 6,000 pounds, that is made primarily for use on public streets, roads, and highways) that meets all of the following requirements. Student income tax return You bought it new. Student income tax return You bought it after September 10, 2001. Student income tax return (But a car is not qualified property if a binding written contract for you to buy the car was in effect before September 11, 2001. Student income tax return ) You began using it for business after September 10, 2001, and used it more than 50% in a qualified business use. Student income tax return Example. Student income tax return Bob bought a new car on October 15, 2001, for $20,000 and placed it in service immediately, using it 75% for business. Student income tax return Bob's car is qualified property. Student income tax return Bob chooses not to take a section 179 deduction for the car. Student income tax return He does claim the new special depreciation allowance. Student income tax return Bob first must figure the car's depreciable basis, which is $15,000 ($20,000 × . Student income tax return 75). Student income tax return He then figures the special depreciation allowance of $4,500 ($15,000 × . Student income tax return 30). Student income tax return The remaining depreciable basis of $10,500 ($15,000 - $4,500) is depreciated using MACRS (200% declining balance method, half-year convention) and results in a deduction of $2,100 ($10,500 × . Student income tax return 20), for a total depreciation deduction for 2001 of $6,600 ($4,500 + $2,100). Student income tax return However, Bob's depreciation deduction is limited to $5,745 ($7,660 × . Student income tax return 75), as discussed next. Student income tax return Depreciation Limit The limit on your depreciation deduction for 2001 is increased to $7,660 for a car that is qualified property (defined above) and for which you claim the special depreciation allowance. Student income tax return The limit is increased to $23,080 if the car is an electric car. Student income tax return The section 179 deduction is treated as depreciation for purposes of this limit. Student income tax return If you use a car less than 100% in your business or work, the limit is $7,660 (or $23,080 for an electric car) multiplied by the percentage of business and investment use during the year. Student income tax return For cars that do not qualify for (or for which you choose not to claim) the special depreciation allowance, the limit remains $3,060 ($9,280 for electric cars). Student income tax return Amended Return If you filed your 2001 calendar year return before June 1, 2002, and did not claim the new special depreciation allowance for a qualified car, you can claim it by filing an amended return on Form 1040X, Amended U. Student income tax return S. Student income tax return Individual Income Tax Return, by April 15, 2003. Student income tax return At the top of the Form 1040X, print “Filed pursuant to Revenue Procedure 2002–33. Student income tax return ” If you are an employee, attach Form 2106, Employee Business Expenses (revised March 2002). Student income tax return If you are self-employed, attach Form 4562, Depreciation and Amortization (revised March 2002). Student income tax return Or, you can claim the special depreciation allowance by filing Form 3115, Application for Change in Accounting Method, with your 2002 return. Student income tax return For details, see Revenue Procedure 2002–33. Student income tax return (But, filing Form 1040X for 2001 enables you to claim the special allowance earlier than attaching Form 3115 to your 2002 return. Student income tax return ) You cannot claim the special depreciation allowance on an amended return (or by using Form 3115) if you made, or are treated as having made, the election not to claim it described later. Student income tax return Example. Student income tax return The facts are the same as in the previous example except that Bob filed his original 2001 income tax return on April 15, 2002, and claimed a $3,000 ($20,000 x . Student income tax return 75 x . Student income tax return 20) depreciation deduction for his new car using MACRS. Student income tax return Bob now wishes to claim the special depreciation allowance for his new car on an amended 2001 return. Student income tax return Bob, who is an employee, files Form 1040X, by April 15, 2003, with an updated Form 2106 (revised March 2002) attached, increasing his total depreciation deduction to $5,745, as figured in the earlier example. Student income tax return Bob's new filled-in Form 2106 is shown later. Student income tax return Election Not To Claim Special Allowance You can elect not to claim the special depreciation allowance for a car by making a statement attached to, or written on, your return indicating that you are electing not to claim the special depreciation allowance for 5-year property. Student income tax return As a general rule, you must make this election by the due date (including extensions) of your return. Student income tax return You can have an automatic extension of 6 months from the due date of your return (excluding extensions) to make the election with an amended return. Student income tax return To get this extension, you must have filed your original return by the due date (including extensions). Student income tax return At the top of the statement, print “Filed pursuant to section 301. Student income tax return 9100–2. Student income tax return ” If you elect not to claim the special depreciation allowance for a car, you cannot claim it for any other 5-year property placed in service during the same year. Student income tax return Unless you elect (or are treated as electing) not to claim the special depreciation allowance, you must reduce the car's adjusted basis by the amount of the allowance, even if the allowance was not claimed. Student income tax return Deemed election for return filed before June 1, 2002. Student income tax return   If you did not make the election not to claim the special depreciation allowance in the time and manner described above, you will still be treated as electing not to claim it if all of the following apply. Student income tax return You filed your 2001 return before June 1, 2002. Student income tax return You claimed depreciation on your return but did not claim the special depreciation allowance. Student income tax return You did not file an amended 2001 return by April 15, 2003, or a Form 3115 with your 2002 return, to claim the special depreciation allowance. Student income tax return Form 2106, Page 1, for Bob Smith Form 2106, Page 2, for Bob Smith Prev  Up  Next   Home   More Online Publications