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Tax Amendment Form 2010

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Tax Amendment Form 2010

Tax amendment form 2010 Publication 4492 - Main Contents Table of Contents DefinitionsHurricane Katrina Disaster Area Katrina Covered Disaster Area Gulf Opportunity (GO) Zone (Core Disaster Area) Hurricane Rita Disaster Area (Rita Covered Disaster Area) Rita GO Zone Hurricane Wilma Disaster Area Wilma Covered Disaster Area Wilma GO Zone Extended Tax Deadlines Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Charitable Deduction for Contributions of Food Inventory Charitable Deduction for Contributions of Book Inventories to Public Schools Casualty and Theft LossesTime limit for making election. Tax amendment form 2010 Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Hurricane Distributions Repayment of Qualified Hurricane Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by Hurricane Katrina Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Work Opportunity Credit Employee Retention Credit Hurricane Katrina Housing Credit Reforestation Costs Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax Help Definitions The following definitions are used throughout this publication. Tax amendment form 2010 Hurricane Katrina Disaster Area The Hurricane Katrina disaster area covers the area for which the President declared a major disaster before September 14, 2005, because of Hurricane Katrina. Tax amendment form 2010 The Hurricane Katrina disaster area covers the entire states of Alabama, Florida, Louisiana, and Mississippi. Tax amendment form 2010 Katrina Covered Disaster Area A portion of the Hurricane Katrina disaster area has been designated by the IRS as a covered disaster area. Tax amendment form 2010 The Katrina covered disaster area covers the following areas in four states. Tax amendment form 2010 Alabama. Tax amendment form 2010   The counties of Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox, and Winston. Tax amendment form 2010 Florida. Tax amendment form 2010   The counties of Bay, Broward, Collier, Escambia, Franklin, Gulf, Miami-Dade, Monroe, Okaloosa, Santa Rosa, and Walton. Tax amendment form 2010 Louisiana. Tax amendment form 2010   All parishes. Tax amendment form 2010 Mississippi. Tax amendment form 2010   All counties. Tax amendment form 2010 Gulf Opportunity (GO) Zone (Core Disaster Area) The GO Zone (also called the core disaster area) covers the portion of the Hurricane Katrina disaster area determined by the Federal Emergency Management Agency (FEMA) to be eligible for either individual only or both individual and public assistance from the Federal Government. Tax amendment form 2010 The GO Zone covers the following areas in three states. Tax amendment form 2010 Alabama. Tax amendment form 2010   The counties of Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa, and Washington. Tax amendment form 2010 Louisiana. Tax amendment form 2010   The parishes of Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Tax amendment form 2010 Bernard, St. Tax amendment form 2010 Charles, St. Tax amendment form 2010 Helena, St. Tax amendment form 2010 James, St. Tax amendment form 2010 John the Baptist, St. Tax amendment form 2010 Martin, St. Tax amendment form 2010 Mary, St. Tax amendment form 2010 Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge, and West Feliciana. Tax amendment form 2010 Mississippi. Tax amendment form 2010   The counties of Adams, Amite, Attala, Choctaw, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Holmes, Humphreys, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, and Yazoo. Tax amendment form 2010 Hurricane Rita Disaster Area (Rita Covered Disaster Area) The Hurricane Rita disaster area (also designated by the IRS as the Rita covered disaster area) covers the area for which the President declared a major disaster before October 6, 2005, because of Hurricane Rita. Tax amendment form 2010 This area covers the entire states of Louisiana and Texas. Tax amendment form 2010 Rita GO Zone The Rita GO Zone covers the portion of the Hurricane Rita disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. Tax amendment form 2010 The Rita GO Zone covers the following areas in two states. Tax amendment form 2010 Louisiana. Tax amendment form 2010   The parishes of Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, Evangeline, Iberia, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Plaquemines, Sabine, St. Tax amendment form 2010 Landry, St. Tax amendment form 2010 Martin, St. Tax amendment form 2010 Mary, St. Tax amendment form 2010 Tammany, Terrebonne, Vermilion, Vernon, and West Baton Rouge. Tax amendment form 2010 Texas. Tax amendment form 2010   The counties of Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler, and Walker. Tax amendment form 2010 Hurricane Wilma Disaster Area The Hurricane Wilma disaster area covers the area for which the President declared a major disaster before November 14, 2005, because of Hurricane Wilma. Tax amendment form 2010 The Hurricane Wilma disaster area covers the entire state of Florida. Tax amendment form 2010 Wilma Covered Disaster Area A portion of the Hurricane Wilma disaster area has been designated by the IRS as a covered disaster area. Tax amendment form 2010 The Wilma covered disaster area covers the following counties. Tax amendment form 2010 Florida. Tax amendment form 2010   Brevard, Broward, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Osceola, Palm Beach, Polk, St. Tax amendment form 2010 Lucie, and Sarasota. Tax amendment form 2010 Wilma GO Zone The Wilma GO Zone covers the portion of the Hurricane Wilma disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. Tax amendment form 2010 The Wilma GO Zone covers the following counties. Tax amendment form 2010 Florida. Tax amendment form 2010   Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. Tax amendment form 2010 Lucie. Tax amendment form 2010 Extended Tax Deadlines The IRS has extended deadlines that apply to filing returns, paying taxes, and performing certain other time-sensitive acts for certain taxpayers affected by Hurricane Katrina, Rita, or Wilma, until February 28, 2006. Tax amendment form 2010 The extension applies to deadlines (either an original or extended due date) that occur during the following periods. Tax amendment form 2010 After August 28, 2005 (August 23, 2005, for Florida affected taxpayers), and before February 28, 2006, for taxpayers affected by Hurricane Katrina. Tax amendment form 2010 After September 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Rita. Tax amendment form 2010 After October 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Wilma. Tax amendment form 2010 Affected taxpayer. Tax amendment form 2010   The following taxpayers are eligible for the extension. Tax amendment form 2010 Any individual whose main home is located in a covered disaster area. Tax amendment form 2010 Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Tax amendment form 2010 Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained or whose tax professional's office is in a covered disaster area. Tax amendment form 2010 The main home or principal place of business does not have to be located in the covered area. Tax amendment form 2010 Any individual visiting a county or parish in the Hurricane Katrina or Hurricane Rita covered disaster area that was injured or killed (and the estate of an individual killed) as a result of the hurricane or its aftermath. Tax amendment form 2010 Any estate or trust whose tax records needed to meet a filing or payment deadline are maintained in a covered disaster area. Tax amendment form 2010 Generally, any individual who is a worker assisting in the relief activities in a covered disaster area. Tax amendment form 2010 However, a relief worker assisting in the Wilma covered disaster area is not an affected taxpayer unless the worker is affiliated with a recognized government or philanthropic organization assisting in the relief activities. Tax amendment form 2010 The spouse of an affected taxpayer, solely with regard to a joint income tax return with that taxpayer. Tax amendment form 2010   To ensure correct processing, affected taxpayers should write the assigned disaster designation (for example, “Hurricane Katrina”) in red ink at the top of any forms or documents filed with the IRS. Tax amendment form 2010 Affected taxpayers can also identify themselves to the IRS or ask hurricane-related questions by calling the special IRS disaster hotline at 1-866-562-5227. Tax amendment form 2010 Acts extended. Tax amendment form 2010   Deadlines for performing the following acts are extended. Tax amendment form 2010 Filing any return of income, estate, gift, generation-skipping transfer, excise, or employment tax. Tax amendment form 2010 Paying any income, estate, gift, generation-skipping transfer, excise, or employment tax. Tax amendment form 2010 This includes making estimated tax payments. Tax amendment form 2010 Making certain contributions, distributions, recharacterizing contributions, or making a rollover to or from a qualified retirement plan. Tax amendment form 2010 Filing certain petitions with the Tax Court. Tax amendment form 2010 Filing a claim for credit or refund of any tax. Tax amendment form 2010 Bringing suit upon a claim for credit or refund. Tax amendment form 2010 Certain other acts described in Revenue Procedure 2005-27. Tax amendment form 2010 You can find Revenue Procedure 2005-27 on page 1050 of Internal Revenue Bulletin 2005-20 at www. Tax amendment form 2010 irs. Tax amendment form 2010 gov/pub/irs-irbs/irb05-20. Tax amendment form 2010 pdf. Tax amendment form 2010 Forgiveness of interest and penalties. Tax amendment form 2010   The IRS may forgive the interest and penalties on any underpaid income, estate, gift, employment, or excise tax for the length of any extension. Tax amendment form 2010 Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions Individuals. Tax amendment form 2010   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% adjusted gross income (AGI) limit. Tax amendment form 2010 A qualified contribution is a charitable contribution paid in cash or by check after August 27, 2005, and before January 1, 2006, to a 50% limit organization (other than certain private foundations described in section 509(a)(3)) if you make an election to have the 50% limit not apply to these contributions. Tax amendment form 2010   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. Tax amendment form 2010 You can carry over any contributions you are not able to deduct for 2005 because of this limit. Tax amendment form 2010 In 2006, treat the carryover of your unused qualified contributions as a carryover of contributions subject to the 50% limit. Tax amendment form 2010 Exception. Tax amendment form 2010   Qualified contributions do not include a contribution to a segregated fund or account for which you (or any person you appoint or designate) have or expect to have advisory privileges with respect to distributions or investments based on your contribution. Tax amendment form 2010 Corporations. Tax amendment form 2010   A corporation may elect to deduct qualified cash contributions without regard to the 10% taxable income limit if the contributions were made after August 27, 2005, and before January 1, 2006, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3)), for Hurricane Katrina, Rita, or Wilma relief efforts. Tax amendment form 2010 The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Tax amendment form 2010 Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% limit. Tax amendment form 2010 Partners and shareholders. Tax amendment form 2010   Each partner in a partnership and each shareholder in an S corporation makes a separate election to have the appropriate limit not apply. Tax amendment form 2010 More information. Tax amendment form 2010   For more information, see Publication 526 or Publication 542, Corporations. Tax amendment form 2010 Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. Tax amendment form 2010 Standard Mileage Rate for Charitable Use of Vehicles The following are special standard mileage rates in effect in 2005 and 2006 for the cost of operating your automobile for providing charitable services solely related to Hurricane Katrina. Tax amendment form 2010 29 cents per mile for the period August 25 through August 31, 2005. Tax amendment form 2010 34 cents per mile for the period September 1 through December 31, 2005. Tax amendment form 2010 32 cents per mile for the period January 1 through December 31, 2006. Tax amendment form 2010 Mileage Reimbursements to Charitable Volunteers You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger automobile for the benefit of a qualified charitable organization in providing relief related to Hurricane Katrina during the period beginning on August 25, 2005, and ending on December 31, 2006. Tax amendment form 2010 You cannot claim a deduction or credit for amounts you receive as a mileage reimbursement. Tax amendment form 2010 You must keep records of miles driven, time, place (or use), and purpose of the mileage. Tax amendment form 2010 The amount you can exclude from income cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. Tax amendment form 2010 40. Tax amendment form 2010 5 cents per mile for the period August 25 through August 31, 2005. Tax amendment form 2010 48. Tax amendment form 2010 5 cents per mile for the period September 1 through December 31, 2005. Tax amendment form 2010 44. Tax amendment form 2010 5 cents per mile for the period January 1 through December 31, 2006. Tax amendment form 2010 Charitable Deduction for Contributions of Food Inventory Any taxpayer engaged in a trade or business is eligible to claim a deduction for a contribution of “apparently wholesome food” inventory to a qualified charitable organization described in section 501(c)(3) (except for private nonoperating foundations) after August 27, 2005, and before January 1, 2006. Tax amendment form 2010 “Apparently wholesome food” is food that meets all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. Tax amendment form 2010 The deduction is equal to the lesser of: The basis of the donated food plus one-half of the gain that would have been realized if the donated food had been sold at fair market value on the date of the donation, or Two times the basis of the donated food. Tax amendment form 2010 The taxpayer must receive written certification from the donee stating: The donated food is related to the purpose or function of the donee's basis for exemption under section 501(c)(3) and is to be used solely for the care of the ill, the needy, or infants; and The food was not given in exchange for money, other property, or services. Tax amendment form 2010 For a taxpayer other than a C corporation, the deduction is limited to 10% of the taxpayer's total net income from all trades or businesses from which the food contributions were made (figured without regard to the deduction for charitable contributions). Tax amendment form 2010 For example, if a taxpayer is a sole proprietor, a shareholder in an S corporation, and a partner in a partnership, and each made a contribution of apparently wholesome food inventory, the taxpayer's deduction is limited to 10% of the taxpayer's total net income from the sole proprietorship, S corporation, and partnership (figured without regard to the deduction for charitable contributions). Tax amendment form 2010 Charitable Deduction for Contributions of Book Inventories to Public Schools A corporation (other than an S corporation) may be allowed a charitable deduction for a qualified book contribution made after August 27, 2005, and before January 1, 2006, to a public school that: Provides elementary or secondary education (kindergarten through grade 12), and Normally maintains a regular faculty and curriculum and has a regular enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. Tax amendment form 2010 . Tax amendment form 2010 The deduction is equal to the lesser of: The basis of the donated books plus one-half of the gain that would have been realized if the donated books had been sold at fair market value on the date of the donation, or Two times the basis of the donated books. Tax amendment form 2010 The corporation must receive written certification from the school stating that the donated books are suitable for the organization's educational programs and will be used for such programs. Tax amendment form 2010 Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that were caused by Hurricane Katrina, Rita, or Wilma. Tax amendment form 2010 For more information, see Publication 547. Tax amendment form 2010 Limits on personal casualty or theft losses caused by Hurricane Katrina, Rita, or Wilma. Tax amendment form 2010   The following losses to personal use property are not subject to the $100 or 10% of adjusted gross income limits. Tax amendment form 2010 Losses that arose in the Hurricane Katrina disaster area after August 24, 2005, and that were caused by Hurricane Katrina. Tax amendment form 2010 Losses that arose in the Hurricane Rita disaster area after September 22, 2005, and that were caused by Hurricane Rita. Tax amendment form 2010 Losses that arose in the Hurricane Wilma disaster area after October 22, 2005, and that were caused by Hurricane Wilma. Tax amendment form 2010 Qualifying losses include losses from flooding or other casualty, and from theft, that arose in the hurricane disaster area and that were caused by the hurricane. Tax amendment form 2010 Special instructions for individuals who elect to claim a Hurricane Katrina, Rita, or Wilma casualty or theft loss for 2004. Tax amendment form 2010   Casualty and theft losses are generally deductible only in the year the casualty occurred or theft was discovered. Tax amendment form 2010 However, Hurricane Katrina, Rita, and Wilma are Presidentially declared disasters. Tax amendment form 2010 Therefore, you can elect to deduct losses from these hurricanes on your tax return for the previous year. Tax amendment form 2010 If you make this election, use the following additional instructions to complete your forms. Tax amendment form 2010   Individuals filing or amending their 2004 tax return whose only casualty or theft losses to personal use property claimed on that return were caused by Hurricane Katrina, Rita, or Wilma should write “Hurricane Katrina,” “Hurricane Rita,” or “Hurricane Wilma” at the top of Form 1040 or 1040X. Tax amendment form 2010 They must also complete and attach the 2004 Form 4684 and write “Hurricane Katrina,”“Hurricane Rita,” or “Hurricane Wilma” on the dotted line next to line 11 and enter -0- on lines 11 and 17. Tax amendment form 2010   Individuals filing or amending their 2004 tax return who also have casualty or theft losses to personal use property not related to Hurricane Katrina, Rita, or Wilma should disregard the caution directing taxpayers to use only one Form 4684, located above line 13, and complete lines 13 through 18 on two Forms 4684. Tax amendment form 2010 The Form 1040 or 1040X and the first Form 4684 should be prepared as explained above for Hurricane Katrina, Rita, or Wilma losses only. Tax amendment form 2010 The second Form 4684 should be prepared in the normal manner for all gains and non-Hurricane Katrina, Rita or Wilma losses. Tax amendment form 2010 If both Forms 4684 have a loss on line 18, they should carry the combined losses from that line to Schedule A (Form 1040), line 19. Tax amendment form 2010 If there is a gain on line 15 of the second Form 4684, disregard the instruction to enter it on Schedule D (Form 1040), and instead enter on Schedule A (Form 1040), line 19, the excess of the loss from the first Form 4684 over the gain on line 15 of the second Form 4684. Tax amendment form 2010 , Time limit for making election. Tax amendment form 2010   You must make this election to claim your casualty or theft loss in 2004 by the later of the following dates. Tax amendment form 2010 The due date (without extensions) for filing your 2005 income tax return. Tax amendment form 2010 The due date (with extensions) for filing your 2004 income tax return. Tax amendment form 2010 Example. Tax amendment form 2010 If you are a calendar year individual taxpayer, you have until April 17, 2006, to amend your 2004 tax return to claim a casualty or theft loss that occurred during 2005. Tax amendment form 2010 Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Tax amendment form 2010 Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). Tax amendment form 2010 However, for property that was involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Tax amendment form 2010 For more information, see the Instructions for Form 4684. Tax amendment form 2010 Net Operating Losses Qualified GO Zone loss. Tax amendment form 2010   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Tax amendment form 2010 However, the portion of an NOL that is a qualified GO Zone loss can be carried back to the 5 tax years before the NOL year. Tax amendment form 2010 In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Tax amendment form 2010   A qualified GO Zone loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified GO Zone casualty loss (as defined below), Moving expenses paid or incurred after August 27, 2005, and before January 1, 2008, for the employment of an individual whose main home was in the GO Zone before August 28, 2005, who was unable to remain in that home because of Hurricane Katrina, and whose main job location (after the move) is in the GO Zone, Temporary housing expenses paid or incurred after August 27, 2005, and before January 1, 2008, to house employees of the taxpayer whose main job location is in the GO Zone, Depreciation or amortization allowable for any qualified GO Zone property (even if you elected not to claim the special GO Zone depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after August 27, 2005, and before January 1, 2008, for any damage from Hurricane Katrina to property located in the GO Zone. Tax amendment form 2010 Qualified GO Zone casualty loss. Tax amendment form 2010   A qualified GO Zone casualty loss is any deductible section 1231 loss of property located in the GO Zone if the loss was caused by Hurricane Katrina. Tax amendment form 2010 For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by Hurricane Katrina of property located in the GO Zone. Tax amendment form 2010 Any such loss taken into account in figuring your qualified GO Zone loss is not eligible for the election to be treated as having occurred in the previous tax year. Tax amendment form 2010 5-year NOL carryback of certain timber losses. Tax amendment form 2010   Generally, you can carry the portion of an NOL due to income and deductions attributable to a farming business back to the 5 tax years before the NOL year. Tax amendment form 2010 You can treat income and deductions attributable to qualified timber property as attributable to a farming business if any portion of the property is located in the GO Zone, Rita GO Zone, or Wilma GO Zone, and the income and deductions are allocable to the part of your tax year which is after the applicable date below. Tax amendment form 2010 August 27, 2005, if any portion of the property is located in the GO Zone. Tax amendment form 2010 September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). Tax amendment form 2010 October 22, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the RITA GO Zone). Tax amendment form 2010   These rules will not apply after 2006. Tax amendment form 2010   However, these rules apply only to a timber producer who: Held qualified timber property (defined in Publication 535, Business Expenses) on the applicable date below: August 28, 2005, if any portion of the property is located in the GO Zone, September 23, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone), or October 23, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the Rita GO Zone); Is not a corporation with stock publicly traded on an established securities market; Is not a real estate investment trust; and Did not hold more than 500 acres of qualified timber property on the applicable date above. Tax amendment form 2010 More information. Tax amendment form 2010   For more information on NOLs, see Publication 536 or Publication 542, Corporations. Tax amendment form 2010 IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of Hurricane Katrina, Rita, or Wilma. Tax amendment form 2010 Definitions Qualified hurricane distribution. Tax amendment form 2010   A qualified hurricane distribution is any distribution you received from an eligible retirement plan if all of the following apply. Tax amendment form 2010 The distribution was made: After August 24, 2005, and before January 1, 2007, for Hurricane Katrina; After September 22, 2005, and before January 1, 2007, for Hurricane Rita; or After October 22, 2005, and before January 1, 2007, for Hurricane Wilma. Tax amendment form 2010 Your main home was located in a hurricane disaster area listed below on the date shown for that area. Tax amendment form 2010 August 28, 2005, for the Hurricane Katrina disaster area. Tax amendment form 2010 September 23, 2005, for the Hurricane Rita disaster area. Tax amendment form 2010 October 23, 2005, for the Hurricane Wilma disaster area. Tax amendment form 2010 You sustained an economic loss because of Hurricane Katrina, Rita, or Wilma and your main home was in that hurricane disaster area on the date shown in (2) above for that hurricane. Tax amendment form 2010 Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Tax amendment form 2010   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified hurricane distribution, regardless of whether the distribution was made on account of Hurricane Katrina, Rita, or Wilma. Tax amendment form 2010 Qualified hurricane distributions are permitted without regard to your need or the actual amount of your economic loss. Tax amendment form 2010   The total of your qualified hurricane distributions from all plans is limited to $100,000. Tax amendment form 2010 If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. Tax amendment form 2010   A reduction or offset (after August 24, 2005, for Katrina; after September 22, 2005, for Rita; or after October 22, 2005, for Wilma) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified hurricane distribution. Tax amendment form 2010 Eligible retirement plan. Tax amendment form 2010   An eligible retirement plan can be any of the following. Tax amendment form 2010 A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Tax amendment form 2010 A qualified annuity plan. Tax amendment form 2010 A tax-sheltered annuity contract. Tax amendment form 2010 A governmental section 457 deferred compensation plan. Tax amendment form 2010 A traditional, SEP, SIMPLE, or Roth IRA. Tax amendment form 2010 Main home. Tax amendment form 2010   Generally, your main home is the home where you live most of the time. Tax amendment form 2010 A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Tax amendment form 2010 Taxation of Qualified Hurricane Distributions Qualified hurricane distributions are included in income in equal amounts over three years. Tax amendment form 2010 However, if you elect, you can include the entire distribution in your income in the year it was received. Tax amendment form 2010 Qualified hurricane distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Tax amendment form 2010 However, any distributions you receive in excess of the $100,000 qualified hurricane distribution limit may be subject to the additional tax on early distributions. Tax amendment form 2010 For more information, see Form 8915. Tax amendment form 2010 Repayment of Qualified Hurricane Distributions If you choose, you generally can repay any portion of a qualified hurricane distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Tax amendment form 2010 Also, you can repay a qualified hurricane distribution made on account of a hardship from a retirement plan. Tax amendment form 2010 However, see Exceptions below for qualified hurricane distributions you cannot repay. Tax amendment form 2010 You have three years from the day after the date you received the distribution to make a repayment. Tax amendment form 2010 Amounts that are repaid are treated as a qualified rollover and are not included in income. Tax amendment form 2010 Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Tax amendment form 2010 See Form 8915 for more information on how to report repayments. Tax amendment form 2010 Exceptions. Tax amendment form 2010   You cannot repay the following types of distributions. Tax amendment form 2010 Qualified hurricane distributions received as a beneficiary (other than a surviving spouse). Tax amendment form 2010 Required minimum distributions. Tax amendment form 2010 Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Tax amendment form 2010 Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area, you can repay that distribution before March 1, 2006, to an eligible retirement plan after August 24, 2005 (Katrina); after September 22, 2005 (Rita); or after October 22, 2005 (Wilma). Tax amendment form 2010 For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Tax amendment form 2010 To be a qualified distribution, the distribution must meet all of the following requirements. Tax amendment form 2010 The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Tax amendment form 2010 The distribution was received in 2005 after February 28 and before: August 29 for Hurricane Katrina; September 24 for Hurricane Rita; or October 24 for Hurricane Wilma. Tax amendment form 2010 The distribution was to be used to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area that was not purchased or constructed because of Hurricane Katrina, Rita, or Wilma. Tax amendment form 2010 Amounts that are repaid before March 1, 2006, are treated as a qualified rollover and are not included in income. Tax amendment form 2010 Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Tax amendment form 2010 A qualified distribution not repaid before March 1, 2006, may be taxable for 2005 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Tax amendment form 2010 You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before March 1, 2006. Tax amendment form 2010 Loans From Qualified Plans The following benefits are available to qualified individuals. Tax amendment form 2010 Increases to the limits for distributions treated as loans from employer plans. Tax amendment form 2010 A 1-year suspension for payments due on plan loans. Tax amendment form 2010 Qualified individual. Tax amendment form 2010   You are a qualified individual if any of the following apply. Tax amendment form 2010 Your main home on August 28, 2005, was located in the Hurricane Katrina disaster area and you had an economic loss because of Hurricane Katrina. Tax amendment form 2010 Your main home on September 23, 2005, was located in the Hurricane Rita disaster area and you had an economic loss because of Hurricane Rita. Tax amendment form 2010 Your main home on October 23, 2005, was located in the Hurricane Wilma disaster area and you had an economic loss because of Hurricane Wilma. Tax amendment form 2010 Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Tax amendment form 2010 Limits on plan loans. Tax amendment form 2010   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Tax amendment form 2010 In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Tax amendment form 2010 The higher limits apply only to loans received during the following period. Tax amendment form 2010 If your main home was located in the Hurricane Katrina disaster area, the period began on September 24, 2005, and ends on December 31, 2006. Tax amendment form 2010 If your main home was located in the Hurricane Rita or Wilma disaster area, the period began on December 21, 2005, and ends on December 31, 2006. Tax amendment form 2010 If you are a qualified individual based on Hurricane Katrina and another hurricane, use the period based on Hurricane Katrina. Tax amendment form 2010 One-year suspension of loan payments. Tax amendment form 2010   Payments on plan loans due before 2007 may be suspended for 1 year by the plan administrator. Tax amendment form 2010 To qualify for the suspension, the due date for any loan payment must occur during the period beginning on: August 28, 2005, if your main home was located in the Hurricane Katrina disaster area. Tax amendment form 2010 September 23, 2005, if your main home was located in the Hurricane Rita disaster area. Tax amendment form 2010 October 23, 2005, if your main home was located in the Hurricane Wilma disaster area. Tax amendment form 2010 If you are a qualified individual based on more than one hurricane, use the period with the earliest beginning date. Tax amendment form 2010 Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit You can elect to use your 2004 earned income to figure your earned income credit (EIC) and additional child tax credit for 2005 if: Your 2005 earned income is less than your 2004 earned income, and At least one of the following statements is true. Tax amendment form 2010 Your main home on August 25, 2005, was in the Gulf Opportunity (GO) Zone. Tax amendment form 2010 Your main home on August 25, 2005, was in the Hurricane Katrina disaster area and you were displaced from that home because of Hurricane Katrina. Tax amendment form 2010 Your main home on September 23, 2005, was in the Rita GO Zone. Tax amendment form 2010 Your main home on September 23, 2005, was in the Hurricane Rita disaster area and you were displaced from that home because of Hurricane Rita. Tax amendment form 2010 Your main home on October 23, 2005, was in the Wilma GO Zone. Tax amendment form 2010 Your main home on October 23, 2005, was in the Hurricane Wilma disaster area and you were displaced from that home because of Hurricane Wilma. Tax amendment form 2010 Earned income. Tax amendment form 2010    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. Tax amendment form 2010 If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. Tax amendment form 2010 Joint returns. Tax amendment form 2010   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. Tax amendment form 2010 If you make the election, your 2004 earned income is the sum of your 2004 earned income and your spouse's 2004 earned income. Tax amendment form 2010 Making the election. Tax amendment form 2010   If you make the election to use your 2004 earned income, the election applies for figuring both the EIC and the additional child tax credit. Tax amendment form 2010 However, you can make the election for the additional child tax credit even if you do not take the EIC. Tax amendment form 2010   Electing to use your 2004 earned income may increase or decrease your EIC. Tax amendment form 2010 Take the following steps to decide whether to make the election. Tax amendment form 2010 Figure your 2005 EIC using your 2004 earned income. Tax amendment form 2010 Figure your 2005 additional child tax credit using your 2004 earned income for EIC purposes. Tax amendment form 2010 Add the results of (1) and (2). Tax amendment form 2010 Figure your 2005 EIC using your 2005 earned income. Tax amendment form 2010 Figure your 2005 additional child tax credit using your 2005 earned income for additional child tax credit purposes. Tax amendment form 2010 Add the results of (4) and (5). Tax amendment form 2010 Compare the results of (3) and (6). Tax amendment form 2010 If (3) is larger than (6), it is to your benefit to make the election. Tax amendment form 2010 If (3) is equal to or smaller than (6), making the election will not help you. Tax amendment form 2010   If you elect to use your 2004 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2004 earned income on the dotted line next to line 66a of Form 1040, on the line next to line 41a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. Tax amendment form 2010   If you elect to use your 2004 earned income and you are claiming the additional child tax credit, enter your 2004 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. Tax amendment form 2010   Because Form 8812 was released before the GO Zone legislation was enacted, the instructions refer only to individuals whose main home was in the Hurricane Katrina disaster area. Tax amendment form 2010 When completing Form 8812, line 4a, use the above rules to determine your eligibility to make the election (instead of the Form 8812 instructions). Tax amendment form 2010 Getting your 2004 tax return information. Tax amendment form 2010   If you do not have your 2004 tax records, you can get the amount of earned income used to figure your 2004 EIC by calling 1-866-562-5227. Tax amendment form 2010 You can also get this information by visiting the IRS website at www. Tax amendment form 2010 irs. Tax amendment form 2010 gov. Tax amendment form 2010   If you prefer to figure your 2004 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. Tax amendment form 2010 See Request for Copy or Transcript of Tax Return on page 16. Tax amendment form 2010 Additional Exemption for Housing Individuals Displaced by Hurricane Katrina You may be able to claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by Hurricane Katrina. Tax amendment form 2010 The additional exemption amount is claimed on new Form 8914. Tax amendment form 2010 The additional exemption amount is allowable once per taxpayer for a specific individual in 2005 or 2006, but not in both years. Tax amendment form 2010 The maximum additional exemption amount you can claim for all displaced individuals is $2,000 ($1,000 if married filing separately). Tax amendment form 2010 The additional exemption amount you claim for displaced individuals in 2005 will reduce the $2,000 maximum for 2006. Tax amendment form 2010 If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. Tax amendment form 2010 If married filing separately, only one spouse may claim the additional exemption amount for a specific displaced individual. Tax amendment form 2010 In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). Tax amendment form 2010 To qualify as a displaced individual, the individual: Must have had his or her main home in the Hurricane Katrina disaster area on August 28, 2005, and he or she must have been displaced from that home. Tax amendment form 2010 If the individual's main home was located outside the core disaster area, that home must have been damaged by Hurricane Katrina or the individual must have been evacuated from that home because of Hurricane Katrina, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. Tax amendment form 2010 You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. Tax amendment form 2010 You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. Tax amendment form 2010 Food, clothing, or personal items consumed or used by the displaced individual. Tax amendment form 2010 Reimbursement for the cost of any long distance telephone calls made by the displaced individual. Tax amendment form 2010 Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. Tax amendment form 2010 However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. Tax amendment form 2010 Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. Tax amendment form 2010 For more information, see Form 8914. Tax amendment form 2010 Education Credits The education credits have been expanded for students attending an eligible educational institution located in the Gulf Opportunity Zone (GOZ students) for any tax year beginning in 2005 or 2006. Tax amendment form 2010 The Hope credit for a GOZ student is increased to 100% of the first $2,000 in qualified education expenses and 50% of the next $2,000 of qualified education expenses for a maximum credit of $3,000 per student. Tax amendment form 2010 The lifetime learning credit rate for a GOZ student is increased from 20% to 40%. Tax amendment form 2010 The definition of qualified education expenses for a GOZ student also has been expanded. Tax amendment form 2010 In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a GOZ student include the following. Tax amendment form 2010 Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Tax amendment form 2010 For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. Tax amendment form 2010 For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. Tax amendment form 2010 The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Tax amendment form 2010 The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Tax amendment form 2010 You will need to contact the eligible educational institution for qualified room and board costs. Tax amendment form 2010 For more information, see Form 8863. Tax amendment form 2010 Recapture of Federal Mortgage Subsidy Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Tax amendment form 2010 However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. Tax amendment form 2010 This amount is increased to $150,000 if the loan was provided before 2011 and was used to: Repair damage caused by Hurricane Katrina to a residence in the Hurricane Katrina disaster area, or Alter, repair, or improve an existing owner-occupied residence in the GO Zone, Rita GO Zone, or Wilma GO Zone. Tax amendment form 2010 Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Generally, discharges of nonbusiness debts (such as mortgages) made after August 24, 2005, and before January 1, 2007, are excluded from income for individuals whose main home was in the Hurricane Katrina disaster area on August 25, 2005. Tax amendment form 2010 If the individual's main home was located outside the core disaster area, the individual also must have had an economic loss because of Hurricane Katrina. Tax amendment form 2010 Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Tax amendment form 2010 This relief does not apply to any debt secured by real property located outside the Hurricane Katrina disaster area. Tax amendment form 2010 You may also have to reduce certain tax attributes by the amount excluded. Tax amendment form 2010 For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Tax amendment form 2010 Tax Relief for Temporary Relocation Under the Gulf Opportunity Zone Act of 2005, the IRS may adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2005 or 2006 as a result of a temporary relocation caused by Hurricane Katrina, Rita, or Wilma. Tax amendment form 2010 However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. Tax amendment form 2010 The IRS has exercised this authority as follows. Tax amendment form 2010 In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. Tax amendment form 2010 In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. Tax amendment form 2010 You can treat as a student an individual who enrolled in school before August 25, 2005, and who is unable to attend classes because of Hurricane Katrina, for each month of the enrollment period that individual is prevented by Hurricane Katrina from attending school as planned. Tax amendment form 2010 You can treat as a student an individual who enrolled in school before September 23, 2005, and who is unable to attend classes because of Hurricane Rita, for each month of the enrollment period that individual is prevented by Hurricane Rita from attending school as planned. Tax amendment form 2010 You can treat as a student an individual who enrolled in school before October 23, 2005, and who is unable to attend classes because of Hurricane Wilma, for each month of the enrollment period that individual is prevented by Hurricane Wilma from attending school as planned. Tax amendment form 2010 Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified Gulf Opportunity (GO) Zone property (as defined below) you place in service after August 27, 2005. Tax amendment form 2010 The allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). Tax amendment form 2010 The special allowance applies only for the first year the property is placed in service. Tax amendment form 2010 The allowance is deductible for both the regular tax and the alternative minimum tax (AMT). Tax amendment form 2010 There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Tax amendment form 2010 You can elect not to deduct the special GO Zone depreciation allowance for qualified property. Tax amendment form 2010 If you make this election for any property, it applies to all property in the same class placed in service during the year. Tax amendment form 2010 Qualified GO Zone property. Tax amendment form 2010   Property that qualifies for the special GO Zone depreciation allowance includes the following. Tax amendment form 2010 Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Tax amendment form 2010 Water utility property. Tax amendment form 2010 Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Tax amendment form 2010 (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Tax amendment form 2010 ) Qualified leasehold improvement property. Tax amendment form 2010 Nonresidential real property and residential rental property. Tax amendment form 2010   For more information on this property, see Publication 946. Tax amendment form 2010 Other tests to be met. Tax amendment form 2010   To be qualified GO Zone property, the property must also meet all of the following tests. Tax amendment form 2010 You must have acquired the property, by purchase, after August 27, 2005, but only if no binding written contract for the acquisition was in effect before August 28, 2005. Tax amendment form 2010 The property must be placed in service before 2008 (2009 in the case of nonresidential real property and residential rental property). Tax amendment form 2010 Substantially all of the use of the property must be in the GO Zone and in the active conduct of your trade or business in the GO Zone. Tax amendment form 2010 The original use of the property in the GO Zone must begin with you after August 27, 2005. Tax amendment form 2010 Used property can be qualified GO Zone property if it has not previously been used within the GO Zone. Tax amendment form 2010 Also, additional capital expenditures you incurred after August 27, 2005, to recondition or rebuild your property meet the original use test if the original use of the property in the GO Zone began with you. Tax amendment form 2010 Excepted property. Tax amendment form 2010   Qualified GO Zone property does not include any of the following. Tax amendment form 2010 Property required to be depreciated using the Alternative Depreciation System (ADS). Tax amendment form 2010 Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. Tax amendment form 2010 Property for which you are claiming a commercial revitalization deduction. Tax amendment form 2010 Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. Tax amendment form 2010 Any gambling or animal racing property (as defined below). Tax amendment form 2010 Property in the same class as that for which you elected not to claim the special GO Zone depreciation allowance. Tax amendment form 2010   Gambling or animal racing property is: Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and The portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. Tax amendment form 2010 Recapture of special allowance. Tax amendment form 2010   If, in any year after the year you claim the special allowance, the property ceases to be qualified GO Zone property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. Tax amendment form 2010 Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 Gulf Opportunity (GO) Zone property (as defined later) placed in service in the GO Zone. Tax amendment form 2010 Increased dollar limit. Tax amendment form 2010   The limit on the section 179 deduction ($105,000 for 2005, $108,000 for 2006) for qualified section 179 GO Zone property acquired after August 27, 2005, is increased by the smaller of: $100,000, or The cost of qualified section 179 GO Zone property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). Tax amendment form 2010   The amount for which you can make the election is reduced if the cost of all qualified section 179 GO Zone property you placed in service during the year exceeds $420,000 for 2005 ($430,000 for 2006) increased by the smaller of: $600,000, or The cost of qualified section 179 GO Zone property placed in service during the year. Tax amendment form 2010 Qualified section 179 GO Zone property. Tax amendment form 2010   Qualified section 179 GO Zone property is section 179 property that is qualified GO Zone property (explained earlier under Special Depreciation Allowance). Tax amendment form 2010 Section 179 property does not include nonresidential real property or residential rental property. Tax amendment form 2010 For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. Tax amendment form 2010 Work Opportunity Credit For the work opportunity credit, the definition of “targeted group employee” has been expanded to include a Hurricane Katrina employee. Tax amendment form 2010 Hurricane Katrina employee. Tax amendment form 2010   A Hurricane Katrina employee is: A person who, on August 28, 2005, had a main home in the core disaster area and, within a two-year period beginning on that date, is hired to perform services principally in the core disaster area; or A person who, on August 28, 2005, had a main home in the core disaster area, was displaced from that main home as a result of Hurricane Katrina, and was hired during the period beginning on August 28, 2005, and ending on December 31, 2005. Tax amendment form 2010 Qualified wages. Tax amendment form 2010   Generally, qualified wages do not include wages you paid to a targeted group employee who worked for you previously. Tax amendment form 2010 However, wages will qualify if: You paid them to an employee who is a Hurricane Katrina employee, The employee was not in your employment on August 28, 2005, and This is your first hire of the employee as a Hurricane Katrina employee after August 28, 2005. Tax amendment form 2010   For more information, see Form 5884. Tax amendment form 2010 Certification requirements. Tax amendment form 2010   An employee must provide to the employer reasonable evidence that he or she is a Hurricane Katrina employee. Tax amendment form 2010 An employer may accept a completed Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, as such evidence. Tax amendment form 2010 The certification requirements described in Form 8850 do not apply to a Hurricane Katrina employee. Tax amendment form 2010 Do not send any Forms 8850 that have only box 1 checked to the state employment security agency. Tax amendment form 2010 Instead, the employer should keep these Forms 8850 with the employer's other records. Tax amendment form 2010 For more information, see Form 8850 and its instructions. Tax amendment form 2010 Employee Retention Credit An eligible employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone, the Rita GO Zone, or the Wilma GO Zone can claim the employee retention credit. Tax amendment form 2010 The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Tax amendment form 2010 Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Tax amendment form 2010 Use Form 5884-A to claim the credit. Tax amendment form 2010 See the following rules and definitions for each hurricane. Tax amendment form 2010 Employers affected by Hurricane Katrina. Tax amendment form 2010   The following definitions apply to employers affected by Hurricane Katrina. Tax amendment form 2010 Eligible employer. Tax amendment form 2010   For this purpose, an eligible employer is any employer who conducted an active trade or business on August 28, 2005, in the GO Zone and whose trade or business was inoperable on any day after August 28, 2005, and before January 1, 2006, because of damage caused by Hurricane Katrina. Tax amendment form 2010 Eligible employee. Tax amendment form 2010   For this purpose, an eligible employee is an employee whose principal place of employment on August 28, 2005, with such eligible employer was in the GO Zone. Tax amendment form 2010 An employee is not an eligible employee for purposes of Hurricane Katrina if the employee is treated as an eligible employee for the work opportunity credit. Tax amendment form 2010 Employers affected by Hurricane Rita. Tax amendment form 2010   The following definitions apply to employers affected by Hurricane Rita. Tax amendment form 2010 Eligible employer. Tax amendment form 2010   For this purpose, an eligible employer is any employer who conducted an active trade or business on September 23, 2005, in the Rita GO Zone and whose trade or business was inoperable on any day after September 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Rita. Tax amendment form 2010 Eligible employee. Tax amendment form 2010   For this purpose, an eligible employee is an employee whose principal place of employment on September 23, 2005, with such eligible employer was in the Rita GO Zone. Tax amendment form 2010 An employee is not an eligible employee for purposes of Hurricane Rita if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina employee retention credit. Tax amendment form 2010 Employers affected by Hurricane Wilma. Tax amendment form 2010   The following definitions apply to employers affected by Hurricane Wilma. Tax amendment form 2010 Eligible employer. Tax amendment form 2010   For this purpose, an eligible employer is any employer who conducted an active trade or business on October 23, 2005, in the Wilma GO Zone and whose trade or business was inoperable on any day after October 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Wilma. Tax amendment form 2010 Eligible employee. Tax amendment form 2010   For this purpose, an eligible employee is an employee whose principal place of employment on October 23, 2005, with such eligible employer was in the Wilma GO Zone. Tax amendment form 2010 An employee is not an eligible employee for purposes of Hurricane Wilma if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina or Rita employee retention credit. Tax amendment form 2010 Qualified wages. Tax amendment form 2010   Qualified wages are wages you paid or incurred before January 1, 2006, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable hurricane, and ending on the date your trade or business resumed significant operations at that place. Tax amendment form 2010 In addition, the wages must have been paid or incurred after the following date. Tax amendment form 2010 August 28, 2005, for Hurricane Katrina. Tax amendment form 2010 September 23, 2005, for Hurricane Rita. Tax amendment form 2010 October 23, 2005, for Hurricane Wilma. Tax amendment form 2010    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Tax amendment form 2010    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Tax amendment form 2010 Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Tax amendment form 2010 Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Tax amendment form 2010   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Tax amendment form 2010 For a special rule that applies to railroad employees, see section 51(h)(1)(B). Tax amendment form 2010   Qualified wages do not include the following. Tax amendment form 2010 Wages paid to your dependent or a related individual. Tax amendment form 2010 See section 51(i)(1). Tax amendment form 2010 Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Tax amendment form 2010 Wages for services of replacement workers during a strike or lockout. Tax amendment form 2010   For more information, see Form 5884-A. Tax amendment form 2010 Hurricane Katrina Housing Credit An employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone can claim the Hurricane Katrina housing credit. Tax amendment form 2010 The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from January 1, 2006, through July 1, 2006. Tax amendment form 2010 The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). Tax amendment form 2010 Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Tax amendment form 2010 The employer must use Form 5884-A to claim the credit. Tax amendment form 2010 A qualified employee is an individual who had a main home in the GO Zone on August 28, 2005, and who performs substantially all employment services in the GO Zone for the employer furnishing the lodging. Tax amendment form 2010 The employee cannot be your dependent or a related individual. Tax amendment form 2010 See section 51(i)(1). Tax amendment form 2010 For more information, see Form 5884-A. Tax amendment form 2010 Reforestation Costs You may be able to elect to deduct a limited amount of reforestation costs for each qualified timber property. Tax amendment form 2010 The deduction for any tax year generally is limited to $10,000 ($5,000 if married filing separately, $0 for a trust). Tax amendment form 2010 However, this limit is increased if you paid or incurred reforestation costs after the applicable date below and any portion of the qualified timber property is located in one of the following areas. Tax amendment form 2010 August 27, 2005, if any portion of the property is located in the GO Zone. Tax amendment form 2010 September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). Tax amendment form 2010 October 22, 2005, if any portion of the property is located in the Wilma GO Zone. Tax amendment form 2010 The limit for each qualified timber property is increased by the smaller of: $10,000 ($5,000 if married filing separately, $0 for a trust), or The amount of reforestation costs you paid or incurred after the applicable date for the qualified timber property, any portion of which is located in the zone described above. Tax amendment form 2010 The increase in the limit applies only to costs paid or incurred before 2008. Tax amendment form 2010 However, these rules do not apply to any timber producer who: Held more than 500 acres of qualified timber property at any time during the tax year, Is a corporation with stock publicly traded on an established securities market, or Is a real estate investment trust. Tax amendment form 2010 For more information about the election to deduct reforestation costs, see chapter 8 in Publication 535, Business Expenses. Tax amendment form 2010 Demolition and Clean-up Costs You can elect to deduct 50% of any qualified GO Zone clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Tax amendment form 2010 Qualified GO Zone clean-up costs are any amounts paid or incurred after August 27, 2005, and before January 1, 2008, for the removal of debris from, or the demolition of structures on, real property located in the GO Zone that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Tax amendment form 2010 Increase in Rehabilitation Tax Credit The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred after August 27, 2005, and before January 1, 2009, on buildings located in the GO Zone as follows. Tax amendment form 2010 For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. Tax amendment form 2010 For certified historic structures, the credit percentage is increased from 20% to 26%. Tax amendment form 2010 For more information, see Form 3468, Investment Credit. Tax amendment form 2010 Request for Copy or Transcript of Tax Return Request for copy of tax return. Tax amendment form 2010   You can use Form 4506 to order a copy of your tax return. Tax amendment form 2010 Generally, there is a $39. Tax amendment form 2010 00 fee for requesting each copy of a tax return. Tax amendment form 2010 If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Hurricane Katrina”) is written in red across the top of the form when filed. Tax amendment form 2010 Request for transcript of tax return. Tax amendment form 2010   You can use Form 4506-T to order a free transcript of your tax return. Tax amendment form 2010 A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Tax amendment form 2010 You can also call 1-800-829-1040 to order a transcript. Tax amendment form 2010 How To Get Tax Help Special IRS assistance. Tax amendment form 2010   The IRS is providing special help for those affected by Hurricane Katrina, Rita, or Wilma, as well as survivors and personal representatives of the victims. Tax amendment form 2010 We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by Hurricane Katrina, Rita, or Wilma, or who have other tax issues related to the hurricanes. Tax amendment form 2010 Call 1-866-562-5227 Monday through Friday In English-7 a. Tax amendment form 2010 m. Tax amendment form 2010 to 10 p. Tax amendment form 2010 m. Tax amendment form 2010 local time In Spanish-8 a. Tax amendment form 2010 m. Tax amendment form 2010 to 9:30 p. Tax amendment form 2010 m. Tax amendment form 2010 local time   The IRS website at www. Tax amendment form 2010 irs. Tax amendment form 2010 gov has notices and other tax relief information. Tax amendment form 2010 Check it periodically for any new guidance. Tax amendment form 2010 Other help from the IRS. Tax amendment form 2010   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Tax amendment form 2010 By selecting the method that is best for you, you will have quick and easy access to tax help. Tax amendment form 2010 Contacting your Taxpayer Advocate. Tax amendment form 2010   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Tax amendment form 2010   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Tax amendment form 2010 While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Tax amendment form 2010   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778. Tax amendment form 2010 Call, write, or fax the Taxpayer Advocate office in your area. Tax amendment form 2010 Call 1-800-829-4059 if you are a TTY/TDD user. Tax amendment form 2010 Visit www. Tax amendment form 2010 irs. Tax amendment form 2010 gov/advocate. Tax amendment form 2010   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). Tax amendment form 2010 Free tax services. Tax amendment form 2010   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Tax amendment form 2010 It contains a list of free tax publications and an index of tax topics. Tax amendment form 2010 It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Tax amendment form 2010 Internet. Tax amendment form 2010 You can access the IRS website 24 hours a day, 7 days a week, at www. Tax amendment form 2010 irs. Tax amendment form 2010 gov to: E-file your return. Tax amendment form 2010 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Tax amendment form 2010 Check the status of your refund. Tax amendment form 2010 Click on Where's My Refund. Tax amendment form 2010 Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Tax amendment form 2010 Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Tax amendment form 2010 Download forms, instructions, and publications. Tax amendment form 2010 Order IRS products online. Tax amendment form 2010 Research your tax questions online. Tax amendment form 2010 Search publications online by topic or keyword. Tax amendment form 2010 View Internal Revenue Bulletins (IRBs) published in the last few years. Tax amendment form 2010 Figure your withholdin
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Understanding Your CP163 Notice

You received this notice to remind you of the amount you owe in tax, penalty and interest.


What you need to do

  • Read your notice carefully ― it will explain how much money you owe on your taxes.

You may want to...


Answers to Common Questions

  • Am I charged interest on the money I owe?
    Yes, interest accrues on your unpaid balance until you pay it in full.

  • Do I receive a penalty if I cannot pay the full amount?
    Yes, you receive a late payment penalty.

  • What happens if I cannot pay the full amount I owe?
    You can arrange to make a payment plan with us if you cannot pay the full amount you owe.

  • How can I set up a payment plan?
    Call the toll-free number listed on the top right corner of your notice to discuss payment options or learn more about payment arrangements here.

  •  


  • Tips for next year

    Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions for which you may qualify. In many cases, you can file free. Learn more about how to file electronically here.

Page Last Reviewed or Updated: 26-Mar-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Tax Amendment Form 2010

Tax amendment form 2010 5. Tax amendment form 2010   Illustrated Examples Table of Contents Illustrated Example of Form 4563Line 1. Tax amendment form 2010 Line 2. Tax amendment form 2010 Lines 3a and 3b. Tax amendment form 2010 Lines 4a and 4b. Tax amendment form 2010 Line 5. Tax amendment form 2010 Line 6. Tax amendment form 2010 Line 7. Tax amendment form 2010 Line 9. Tax amendment form 2010 Line 15. Tax amendment form 2010 Illustrated Example of Form 5074Part I. Tax amendment form 2010 Part II. Tax amendment form 2010 Part III. Tax amendment form 2010 Illustrated Example of Form 8689Part I. Tax amendment form 2010 Part II. Tax amendment form 2010 Part III. Tax amendment form 2010 Part IV. Tax amendment form 2010 Use the following examples to help you complete the correct attachment to your Form 1040. Tax amendment form 2010 The completed form for each example is shown on the pages that follow. Tax amendment form 2010 Illustrated Example of Form 4563 John Black is a U. Tax amendment form 2010 S. Tax amendment form 2010 citizen, single, and under 65. Tax amendment form 2010 He was a bona fide resident of American Samoa during all of 2013. Tax amendment form 2010 John must file Form 1040 because his gross income from sources outside the possessions ($10,000 of dividends from U. Tax amendment form 2010 S. Tax amendment form 2010 corporations) is more than his adjusted filing requirement for single filers under 65. Tax amendment form 2010 (See Filing Requirement if Possession Income Is Excluded in chapter 4. Tax amendment form 2010 ) Because he must file Form 1040 (not illustrated), he fills out Form 4563 to determine the amount of income from American Samoa he can exclude. Tax amendment form 2010 See Bona Fide Resident of American Samoa in chapter 3. Tax amendment form 2010 Completing Form 4563. Tax amendment form 2010   John enters his name and social security number at the top of the form. Tax amendment form 2010 Line 1. Tax amendment form 2010   On Form 4563 (see later), John enters the date his bona fide residence began in American Samoa, June 2, 2012. Tax amendment form 2010 Because he is still a bona fide resident, he enters “not ended” in the second blank space. Tax amendment form 2010 Line 2. Tax amendment form 2010   He checks the box labeled “Rented house or apartment” to describe his type of living quarters in American Samoa. Tax amendment form 2010 Lines 3a and 3b. Tax amendment form 2010   He checks “No” on line 3a because no family members lived with him. Tax amendment form 2010 He leaves line 3b blank. Tax amendment form 2010 Lines 4a and 4b. Tax amendment form 2010   He checks “No” on line 4a because he did not maintain a home outside American Samoa. Tax amendment form 2010 He leaves line 4b blank. Tax amendment form 2010 Line 5. Tax amendment form 2010   He enters the name and address of his employer, Samoa Products Co. Tax amendment form 2010 It is a private American Samoa corporation. Tax amendment form 2010 Line 6. Tax amendment form 2010   He enters the dates of his 2-week vacation to New Zealand from November 11 to November 25. Tax amendment form 2010 That was his only trip outside American Samoa during the year. Tax amendment form 2010 Line 7. Tax amendment form 2010   He enters the $24,000 in wages he received from Samoa Products Co. Tax amendment form 2010 Line 9. Tax amendment form 2010   He received $220 in dividends from an American Samoa corporation, which he enters here. Tax amendment form 2010 He also received $10,000 of dividends from a U. Tax amendment form 2010 S. Tax amendment form 2010 corporation, but he will enter that amount only on his Form 1040 because the U. Tax amendment form 2010 S. Tax amendment form 2010 dividends do not qualify for the possession exclusion. Tax amendment form 2010 Line 15. Tax amendment form 2010   John totals the amounts on lines 7 and 9 to get the amount he can exclude from his gross income in 2013. Tax amendment form 2010 He will not enter his excluded income on Form 1040. Tax amendment form 2010 However, he will attach his completed Form 4563 to his Form 1040. Tax amendment form 2010 Illustrated Example of Form 5074 Tracy Grey is a U. Tax amendment form 2010 S. Tax amendment form 2010 citizen who is a self-employed fisheries consultant with a tax home in New York. Tax amendment form 2010 Her only income for 2013 was net self-employment income of $80,000. Tax amendment form 2010 Of the $80,000, $20,000 was from consulting work in Guam and the rest was earned in the United States. Tax amendment form 2010 Thinking she would owe tax to Guam on the $20,000, Tracy made estimated tax payments of $1,409 to Guam. Tax amendment form 2010 She was not a bona fide resident of Guam during 2013. Tax amendment form 2010 Tracy completes Form 1040 (not illustrated), reporting her worldwide income. Tax amendment form 2010 Because the adjusted gross income on her Form 1040 was $50,000 or more and at least $5,000 of her gross income is from Guam, Tracy must file Form 5074 with her Form 1040. Tax amendment form 2010 All amounts reported on Form 5074 are also reported on her Form 1040. Tax amendment form 2010 See U. Tax amendment form 2010 S. Tax amendment form 2010 Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) in chapter 3. Tax amendment form 2010 Completing Form 5074. Tax amendment form 2010   Tracy enters her name and social security number at the top of the form. Tax amendment form 2010 Part I. Tax amendment form 2010   On Form 5074 (see later), Tracy enters her self-employment income from Guam ($20,000) on line 6. Tax amendment form 2010 She has no other income from Guam, so the total on line 16 is $20,000. Tax amendment form 2010 Part II. Tax amendment form 2010   Tracy's only adjustment in Part II is the deductible part of the self-employment tax on her net income earned in Guam. Tax amendment form 2010 She enters $1,413 on line 21 and line 28. Tax amendment form 2010 Her adjusted gross income on line 29 is $18,587. Tax amendment form 2010 Part III. Tax amendment form 2010   Tracy made estimated tax payments of $1,409. Tax amendment form 2010 She enters this amount on line 30, and again on line 34 as the total payments. Tax amendment form 2010 Illustrated Example of Form 8689 Juan and Carla Moreno live and work in the United States. Tax amendment form 2010 In 2013, they received $14,400 in income from the rental of a condominium they own in the U. Tax amendment form 2010 S. Tax amendment form 2010 Virgin Islands (USVI). Tax amendment form 2010 The rental income was deposited in a bank in the USVI and they received $500 of interest on this income. Tax amendment form 2010 They were not bona fide residents of the USVI during the entire tax year. Tax amendment form 2010 The Morenos complete Form 1040 (not illustrated), reporting their income from all sources, including their interest income and the income and expenses from their USVI rental property (reported on Schedule E (Form 1040)). Tax amendment form 2010 The Morenos take the standard deduction for married filing jointly, both are under 65, and they have no dependents. Tax amendment form 2010 The Morenos also complete Form 8689 to determine how much of their U. Tax amendment form 2010 S. Tax amendment form 2010 tax shown on Form 1040, line 61 (with certain adjustments), must be paid to the U. Tax amendment form 2010 S. Tax amendment form 2010 Virgin Islands. Tax amendment form 2010 See U. Tax amendment form 2010 S. Tax amendment form 2010 Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) in chapter 3. Tax amendment form 2010 The Morenos file their Form 1040, attaching Form 8689 and all other schedules, with the Internal Revenue Service. Tax amendment form 2010 At the same time, they send a copy of their Form 1040 with all attachments, including Form 8689, to the Virgin Islands Bureau of Internal Revenue. Tax amendment form 2010 The Virgin Islands Bureau of Internal Revenue will process this copy. Tax amendment form 2010 Completing Form 8689. Tax amendment form 2010   Juan and Carla enter their names and Juan's social security number at the top of the form. Tax amendment form 2010 Part I. Tax amendment form 2010   The Morenos enter their income from the USVI in Part I (see later). Tax amendment form 2010 The interest income is entered on line 2 and the net rental income of $6,200 ($14,400 of rental income minus $8,200 of rental expenses) is entered on line 11. Tax amendment form 2010 The Morenos' total USVI income of $6,700 is entered on line 16. Tax amendment form 2010 Part II. Tax amendment form 2010   The Morenos have no adjustments to their USVI income, so they enter zero (-0-) on line 28, and $6,700 on line 29. Tax amendment form 2010 Their USVI adjusted gross income (AGI) is $6,700. Tax amendment form 2010 Part III. Tax amendment form 2010   On line 30, the Morenos enter the amount from Form 1040, line 61 ($4,539). Tax amendment form 2010 Their Form 1040 does not show any entries required on line 31, so they leave that line blank and enter $4,539 on line 32. Tax amendment form 2010   The Morenos enter their worldwide AGI, $54,901 (Form 1040, line 38), on line 33. Tax amendment form 2010 Next, they find what percentage of their AGI is from USVI sources ($6,700 ÷ $54,901 = 0. Tax amendment form 2010 122) and enter that as a decimal on line 34. Tax amendment form 2010 They then apply that percentage to the U. Tax amendment form 2010 S. Tax amendment form 2010 tax entered on line 32 to find the amount of U. Tax amendment form 2010 S. Tax amendment form 2010 tax allocated to USVI income ($4,539 x 0. Tax amendment form 2010 122 = $554), and enter that amount on line 35. Tax amendment form 2010 Part IV. Tax amendment form 2010   Part IV is used to show payments of income tax to the USVI only. Tax amendment form 2010 The Morenos had no tax withheld by the U. Tax amendment form 2010 S. Tax amendment form 2010 Virgin Islands, but made estimated tax payments to the USVI of $400, which they entered on lines 37 and 39. Tax amendment form 2010 They include this amount ($400) in the total payments on Form 1040, line 72. Tax amendment form 2010 On the dotted line next to the entry space for line 72, they enter “Form 8689” and show the amount. Tax amendment form 2010 The Morenos do not complete Form 1116 because they receive credit on Form 1040, line 72, for the tax paid to the USVI. Tax amendment form 2010   The income tax they owe to the USVI ($154) is shown on Form 8689, line 44. Tax amendment form 2010 They enter this amount on line 45. Tax amendment form 2010 They also include this additional amount ($154) on the dotted line next to the entry space and in the total on Form 1040, line 72. Tax amendment form 2010 The Morenos will pay their USVI tax at the same time they file the copy of their U. Tax amendment form 2010 S. Tax amendment form 2010 income tax return with the U. Tax amendment form 2010 S. Tax amendment form 2010 Virgin Islands. Tax amendment form 2010 This image is too large to be displayed in the current screen. Tax amendment form 2010 Please click the link to view the image. Tax amendment form 2010 Form 4563, page 1 for John Black This image is too large to be displayed in the current screen. Tax amendment form 2010 Please click the link to view the image. Tax amendment form 2010 Form 5074, for Tracy Grey This image is too large to be displayed in the current screen. Tax amendment form 2010 Please click the link to view the image. 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