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Tax Forms 2008

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Tax Forms 2008

Tax forms 2008 Publication 600 - Main Contents Table of Contents Actual Expenses Optional Sales Tax Tables Instructions for the State and Local General Sales Tax Deduction WorksheetWhat if you lived in more than one state? What if you lived in more than one locality? What if your local general sales tax rate changed during 2006? What if you lived in more than one locality in the same state during 2006? Actual Expenses Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2006 if the tax rate was the same as the general sales tax rate. Tax forms 2008 However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Tax forms 2008 If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Tax forms 2008 Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Tax forms 2008 Also include any state and local general sales taxes paid for a leased motor vehicle. Tax forms 2008 Do not include sales taxes paid on items used in your trade or business. Tax forms 2008 To deduct your actual expenses, enter the amount on Schedule A, line 5, and enter “ST” on the dotted line to the left of the line 5 entry space. Tax forms 2008 You must keep your actual receipts showing general sales taxes paid to use this method. Tax forms 2008 Refund of general sales taxes. Tax forms 2008   If you received a refund of state or local general sales taxes in 2006 for amounts paid in 2006, reduce your actual 2006 state and local general sales taxes by this amount. Tax forms 2008 If you received a refund of state or local general sales taxes in 2006 for prior year purchases, do not reduce your 2006 state and local general sales taxes by this amount. Tax forms 2008 But if you deducted your actual state and local general sales taxes in the earlier year and the deduction reduced your tax, you may have to include the refund in income on Form 1040, line 21. Tax forms 2008 See Recoveries in Pub. Tax forms 2008 525 for details. Tax forms 2008 Optional Sales Tax Tables Instead of using your actual expenses, you can use the tables on pages 5 through 7 to figure your state and local general sales tax deduction. Tax forms 2008 You may also be able to add the state and local general sales taxes paid on certain specified items. Tax forms 2008 To figure your state and local general sales tax deduction using the tables, complete the worksheet below. Tax forms 2008 If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you also must use the tables to figure your state and local general sales tax deduction. Tax forms 2008 State and Local General Sales Tax Deduction Worksheet (See the instructions that begin on page 3. Tax forms 2008 ) Before you begin: See the instructions for line 1 on page 3 if: You lived in more than one state during 2006, or You had any nontaxable income in 2006. Tax forms 2008   1. Tax forms 2008 Enter your state general sales taxes from the applicable table on page 5 or 6 (see page 3 of the instructions) 1. Tax forms 2008 $     Next. Tax forms 2008 If, for all of 2006, you lived only in Connecticut, the District of Columbia, Hawaii, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Rhode Island, Virginia, or West Virginia, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Tax forms 2008 Otherwise, go to line 2       2. Tax forms 2008 Did you live in Alaska, Arizona, Arkansas (Texarkana only), California (Los Angeles County only), Colorado, Georgia, Illinois, Louisiana, New York State, or North Carolina in 2006?         No. Tax forms 2008 Enter -0-                   Yes. Tax forms 2008 Enter your local general sales taxes from the applicable table on page 7 (see page 3 of the instructions)     2. Tax forms 2008 $       3. Tax forms 2008 Did your locality impose a local general sales tax in 2006? Residents of California, Nevada, and Texarkana, Arkansas, see page 3 of the instructions             No. Tax forms 2008 Skip lines 3 through 5, enter -0- on line 6, and go to line 7             Yes. Tax forms 2008 Enter your local general sales tax rate, but omit the percentage sign. Tax forms 2008 For example, if your local general sales tax rate was 2. Tax forms 2008 5%, enter 2. Tax forms 2008 5. Tax forms 2008 If your local general sales tax rate changed or you lived in more than one locality in the same state during 2006, see page 3 of the instructions. Tax forms 2008 (If you do not know your local general sales tax rate, contact your local government. Tax forms 2008 ) 3. Tax forms 2008 . Tax forms 2008       4. Tax forms 2008 Did you enter -0- on line 2 above?             No. Tax forms 2008 Skip lines 4 and 5 and go to line 6             Yes. Tax forms 2008 Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. Tax forms 2008 For example, if your state general sales tax rate is 6%, enter 6. Tax forms 2008 0 4. Tax forms 2008 . Tax forms 2008       5. Tax forms 2008 Divide line 3 by line 4. Tax forms 2008 Enter the result as a decimal (rounded to at least three places) 5. Tax forms 2008 . Tax forms 2008       6. Tax forms 2008 Did you enter -0- on line 2 above?             No. Tax forms 2008 Multiply line 2 by line 3   6. Tax forms 2008 $     Yes. Tax forms 2008 Multiply line 1 by line 5. Tax forms 2008 If you lived in more than one locality in the same state during 2006, see page 4 of the instructions           7. Tax forms 2008 Enter your state and local general sales taxes paid on specified items, if any (see page 4 of the instructions) 7. Tax forms 2008 $   8. Tax forms 2008 Deduction for general sales taxes. Tax forms 2008 Add lines 1, 6, and 7. Tax forms 2008 Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5. Tax forms 2008 Be sure to enter “ST” on the dotted line to the left of the entry space 8. Tax forms 2008 $     Instructions for the State and Local General Sales Tax Deduction Worksheet Line 1. Tax forms 2008    If you lived in the same state for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional state sales tax table for your state on page 5 or 6. Tax forms 2008 Read down the “At least-But less than” columns for your state and find the line that includes your 2006 income. Tax forms 2008 If married filing separately, do not include your spouse's income. Tax forms 2008 Your 2006 income is the amount shown on your Form 1040, line 38, plus any nontaxable items, such as the following. Tax forms 2008 Tax-exempt interest. Tax forms 2008 Veterans' benefits. Tax forms 2008 Nontaxable combat pay. Tax forms 2008 Workers' compensation. Tax forms 2008 Nontaxable part of social security and railroad retirement benefits. Tax forms 2008 Nontaxable part of IRA, pension, or annuity distributions. Tax forms 2008 Do not include rollovers. Tax forms 2008 Public assistance payments. Tax forms 2008 The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Tax forms 2008 Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Tax forms 2008 What if you lived in more than one state?    If you lived in more than one state during 2006, look up the table amount for each state using the above rules. Tax forms 2008 If there is no table for your state, the table amount is considered to be zero. Tax forms 2008 Multiply the table amount for each state you lived in by a fraction. Tax forms 2008 The numerator of the fraction is the number of days you lived in the state during 2006 and the denominator is the total number of days in the year (365). Tax forms 2008 Enter the total of the prorated table amounts for each state on line 1. Tax forms 2008 However, if you also lived in a locality during 2006 that imposed a local general sales tax, do not enter the total on line 1. Tax forms 2008 Instead, complete a separate worksheet for each state you lived in and enter the prorated amount for that state on line 1. Tax forms 2008 Example. Tax forms 2008 You lived in State A from January 1 through August 31, 2006 (243 days), and in State B from September 1 through December 31, 2006 (122 days). Tax forms 2008 The table amount for State A is $500. Tax forms 2008 The table amount for State B is $400. Tax forms 2008 You would figure your state general sales tax as follows. Tax forms 2008 State A: $500 x 243/365 = $333   State B: $400 x 122/365 = 134   Total = $467   If none of the localities in which you lived during 2006 imposed a local general sales tax, enter $467 on line 1 of your worksheet. Tax forms 2008 Otherwise, complete a separate worksheet for State A and State B. Tax forms 2008 Enter $333 on line 1 of the State A worksheet and $134 on line 1 of the State B worksheet. Tax forms 2008 Line 2. Tax forms 2008   If you checked the “No” box, enter -0- on line 2, and go to line 3. Tax forms 2008 If you checked the “Yes” box and lived in the same locality for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional local sales tax table for your locality on page 7. Tax forms 2008 Read down the “At least-But less than” columns for your locality and find the line that includes your 2006 income. Tax forms 2008 See the line 1 instructions on this page to figure your 2006 income. Tax forms 2008 The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Tax forms 2008 Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Tax forms 2008 What if you lived in more than one locality?   If you lived in more than one locality during 2006, look up the table amount for each locality using the above rules. Tax forms 2008 If there is no table for your locality, the table amount is considered to be zero. Tax forms 2008 Multiply the table amount for each locality you lived in by a fraction. Tax forms 2008 The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Tax forms 2008 If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prorated table amounts for each locality in that state on line 2. Tax forms 2008 Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prorated table amount on line 2 of the applicable worksheet. Tax forms 2008 Example. Tax forms 2008 You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Tax forms 2008 The table amount for Locality 1 is $100. Tax forms 2008 The table amount for Locality 2 is $150. Tax forms 2008 You would figure the amount to enter on line 2 as follows. Tax forms 2008 Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. Tax forms 2008 Locality 1: $100 x 243/365 = $67   Locality 2: $150 x 122/365 = 50   Total = $117   Line 3. Tax forms 2008   If you lived in California, check the “No” box if your combined state and local general sales tax rate is 7. Tax forms 2008 25%. Tax forms 2008 Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 7. Tax forms 2008 25%. Tax forms 2008   If you lived in Nevada, check the “No” box if your combined state and local general sales tax rate is 6. Tax forms 2008 5%. Tax forms 2008 Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 6. Tax forms 2008 5%. Tax forms 2008   If you lived in Texarkana, Arkansas, check the “Yes” box and enter “4. Tax forms 2008 0” on line 3. Tax forms 2008 Your local general sales tax rate of 4. Tax forms 2008 0% includes the additional 1. Tax forms 2008 0% Arkansas state sales tax rate for Texarkana and the 1. Tax forms 2008 5% sales tax rate for Miller County. Tax forms 2008 What if your local general sales tax rate changed during 2006?    If you checked the “Yes” box and your local general sales tax rate changed during 2006, figure the rate to enter on line 3 as follows. Tax forms 2008 Multiply each tax rate for the period it was in effect by a fraction. Tax forms 2008 The numerator of the fraction is the number of days the rate was in effect during 2006 and the denominator is the total number of days in the year (365). Tax forms 2008 Enter the total of the prorated tax rates on line 3. Tax forms 2008 Example. Tax forms 2008 Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2006 (273 days). Tax forms 2008 The rate increased to 1. Tax forms 2008 75% for the period from October 1 through December 31, 2006 (92 days). Tax forms 2008 You would enter “1. Tax forms 2008 189” on line 3, figured as follows. Tax forms 2008 January 1 - September 30: 1. Tax forms 2008 00 x 273/365 = 0. Tax forms 2008 748   October 1 - December 31: 1. Tax forms 2008 75 x 92/365 = 0. Tax forms 2008 441   Total = 1. Tax forms 2008 189   What if you lived in more than one locality in the same state during 2006?    Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one locality in the same state during 2006 and either of the following applies. Tax forms 2008 Each locality did not have the same local general sales tax rate. Tax forms 2008 You lived in Texarkana, AR, or Los Angeles County, CA. Tax forms 2008   To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the table on page 7 to figure your local general sales tax deduction), multiply the local general sales tax rate by a fraction. Tax forms 2008 The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Tax forms 2008 Example. Tax forms 2008 You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Tax forms 2008 The local general sales tax rate for Locality 1 is 1%. Tax forms 2008 The rate for Locality 2 is 1. Tax forms 2008 75%. Tax forms 2008 You would enter “0. Tax forms 2008 666” on line 3 for the Locality 1 worksheet and “0. Tax forms 2008 585” for the Locality 2 worksheet, figured as follows. Tax forms 2008 Locality 1: 1. Tax forms 2008 00 x 243/365 = 0. Tax forms 2008 666   Locality 2: 1. Tax forms 2008 75 x 122/365 = 0. Tax forms 2008 585   Line 6. Tax forms 2008   If you lived in more than one locality in the same state during 2006, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2006. Tax forms 2008 If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. Tax forms 2008 Line 7. Tax forms 2008    Enter on line 7 any state and local general sales taxes paid on the following specified items. Tax forms 2008 If you are completing more than one worksheet, include the total for line 7 on only one of the worksheets. Tax forms 2008 A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Tax forms 2008 Also include any state and local general sales taxes paid for a leased motor vehicle. Tax forms 2008 If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate. Tax forms 2008 An aircraft or boat, if the tax rate was the same as the general sales tax rate. Tax forms 2008 A home (including a mobile home or prefabricated home) or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. Tax forms 2008 Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation. Tax forms 2008 You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. Tax forms 2008 Under your state law, your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. Tax forms 2008 The contract must state that the contractor is authorized to act in your name and must follow your directions on construction decisions. Tax forms 2008 In this case, you will be considered to have purchased any items subject to a sales tax and to have paid the sales tax directly. Tax forms 2008   Do not include sales taxes paid on items used in your trade or business. Tax forms 2008 If you received a refund of state or local general sales taxes in 2006, see Refund of general sales taxes on page 1. Tax forms 2008 Prev  Up  Next   Home   More Online Publications
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Understanding Your CP90C Notice

We levied you for unpaid taxes. You have the right to a Collection Due
Process hearing.


What you need to do

  • Read your notice carefully — it explains our actions.
  • Pay what you owe.
  • Make a payment plan if you can’t pay the full amount you owe.

You may want to...


Answers to Common Questions

What should I do if I disagree with the notice?
Request a Collection Due Process hearing.

Why should I request a Collection Due Process hearing?
You can appeal the levy and other disagreements you have at a Collection Due Process hearing.

How do I request a Collection Due Process hearing?
Complete and send us a Form 12153, Request for a Collection Due Process or Equivalent Hearing.

Why didn't you tell me about my rights before you levied me?
Federal contractors do not have the right to a pre-levy hearing. We've already sent you several notices about the amount you owe.

What happens if I can't pay what I owe?
You can request a payment plan if you can't pay the full amount you owe.

How can I make a payment plan?
Call us at the toll free number on the top right corner of your notice to talk about payment plans or learn more about them here.


Tips for next year

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

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 

Page Last Reviewed or Updated: 24-Mar-2014

The Tax Forms 2008

Tax forms 2008 5. Tax forms 2008   Table and Worksheets for the Self-Employed Table of Contents Community property laws. Tax forms 2008 As discussed in chapters 2 and 4, if you are self-employed, you must use the rate table or rate worksheet and deduction worksheet to figure your deduction for contributions you made for yourself to a SEP-IRA or qualified plan. Tax forms 2008 First, use either the rate table or rate worksheet to find your reduced contribution rate. Tax forms 2008 Then complete the deduction worksheet to figure your deduction for contributions. Tax forms 2008 The table and the worksheets in chapter 5 apply only to self-employed individuals who have only one defined contribution plan, such as a profit-sharing plan. Tax forms 2008 A SEP plan is treated as a profit-sharing plan. Tax forms 2008 However, do not use this worksheet for SARSEPs. Tax forms 2008 Rate table for self-employed. Tax forms 2008   If your plan's contribution rate is a whole percentage (for example, 12% rather than 12½%), you can use the table on the next page to find your reduced contribution rate. Tax forms 2008 Otherwise, use the rate worksheet provided below. Tax forms 2008   First, find your plan contribution rate (the contribution rate stated in your plan) in Column A of the table. Tax forms 2008 Then read across to the rate under Column B. Tax forms 2008 Enter the rate from Column B in step 4 of the Deduction Worksheet for Self-Employed on this page. Tax forms 2008    Example. Tax forms 2008 You are a sole proprietor with no employees. Tax forms 2008 If your plan's contribution rate is 10% of a participant's compensation, your rate is 0. Tax forms 2008 090909. Tax forms 2008 Enter this rate in step 4 of the Deduction Worksheet for Self-Employed on this page. Tax forms 2008 Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. Tax forms 2008 For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. Tax forms 2008       *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. Tax forms 2008       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. Tax forms 2008     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27             Step 3           Net earnings from self-employment. Tax forms 2008 Subtract step 2 from step 1     Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed     Step 5           Multiply step 3 by step 4     Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate)     Step 7           Enter the smaller of step 5 or step 6     Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. Tax forms 2008         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. Tax forms 2008       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. Tax forms 2008 Do not enter more than $17,500     Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. Tax forms 2008         • Otherwise, skip steps 16 through 18 and go to step 19. Tax forms 2008       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. Tax forms 2008 Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. Tax forms 2008     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17. Tax forms 2008     Step 21           Subtract step 20 from step 19. Tax forms 2008 This is your maximum deductible contribution. Tax forms 2008                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. Tax forms 2008   Rate worksheet for self-employed. Tax forms 2008   If your plan's contribution rate is not a whole percentage (for example, 10½%), you cannot use the Rate Table for Self-Employed. Tax forms 2008 Use the following worksheet instead. Tax forms 2008 Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. Tax forms 2008 105)   2) Rate in line 1 plus 1 (for example, 0. Tax forms 2008 105 + 1 = 1. Tax forms 2008 105)   3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. Tax forms 2008 105 ÷ 1. Tax forms 2008 105 = 0. Tax forms 2008 095)   Figuring your deduction. Tax forms 2008   Now that you have your self-employed rate from either the rate table or rate worksheet, you can figure your maximum deduction for contributions for yourself by completing the Deduction Worksheet for Self-Employed. Tax forms 2008 Community property laws. Tax forms 2008   If you reside in a community property state and you are married and filing a separate return, disregard community property laws for step 1 of the Deduction Worksheet for Self-Employed. Tax forms 2008 Enter on step 1 the total net profit you actually earned. Tax forms 2008 Rate Table for Self-Employed Column A  If the plan contri- bution rate is: (shown as %) Column B  Your rate is: (shown as decimal) 1 . Tax forms 2008 009901 2 . Tax forms 2008 019608 3 . Tax forms 2008 029126 4 . Tax forms 2008 038462 5 . Tax forms 2008 047619 6 . Tax forms 2008 056604 7 . Tax forms 2008 065421 8 . Tax forms 2008 074074 9 . Tax forms 2008 082569 10 . Tax forms 2008 090909 11 . Tax forms 2008 099099 12 . Tax forms 2008 107143 13 . Tax forms 2008 115044 14 . Tax forms 2008 122807 15 . Tax forms 2008 130435 16 . Tax forms 2008 137931 17 . Tax forms 2008 145299 18 . Tax forms 2008 152542 19 . Tax forms 2008 159664 20 . Tax forms 2008 166667 21 . Tax forms 2008 173554 22 . Tax forms 2008 180328 23 . Tax forms 2008 186992 24 . Tax forms 2008 193548 25* . Tax forms 2008 200000* *The deduction for annual employer contributions (other than elective deferrals) to a SEP plan, a profit-sharing plan, or a money purchase plan cannot be more than 20% of your net earnings (figured without deducting contributions for yourself) from the business that has the plan. Tax forms 2008 Example. Tax forms 2008 You are a sole proprietor with no employees. Tax forms 2008 The terms of your plan provide that you contribute 8½% (. Tax forms 2008 085) of your compensation to your plan. Tax forms 2008 Your net profit from line 31, Schedule C (Form 1040) is $200,000. Tax forms 2008 You have no elective deferrals or catch-up contributions. Tax forms 2008 Your self-employment tax deduction on line 27 of Form 1040 is $9,728. Tax forms 2008 See the filled-in portions of both Schedule SE (Form 1040), Self-Employment Income, and Form 1040, later. Tax forms 2008 You figure your self-employed rate and maximum deduction for employer contributions you made for yourself as follows. Tax forms 2008 Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. Tax forms 2008 For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. Tax forms 2008 $200,000     *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. Tax forms 2008       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. Tax forms 2008     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27 9,728           Step 3           Net earnings from self-employment. Tax forms 2008 Subtract step 2 from step 1 190,272   Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed 0. Tax forms 2008 078   Step 5           Multiply step 3 by step 4 14,841   Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate) 21,675   Step 7           Enter the smaller of step 5 or step 6 14,841   Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. Tax forms 2008         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. Tax forms 2008       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. Tax forms 2008 Do not enter more than $17,500 N/A   Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. Tax forms 2008         • Otherwise, skip steps 16 through 18 and go to step 19. Tax forms 2008       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. Tax forms 2008 Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. Tax forms 2008     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17     Step 21           Subtract step 20 from step 19. Tax forms 2008 This is your maximum deductible contribution $14,841                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. Tax forms 2008   See the filled-in Deduction Worksheet for Self-Employed on this page. Tax forms 2008 Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. Tax forms 2008 105) 0. Tax forms 2008 085 2) Rate in line 1 plus 1 (for example, 0. Tax forms 2008 105 + 1 = 1. Tax forms 2008 105) 1. Tax forms 2008 085 3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. Tax forms 2008 105 ÷ 1. Tax forms 2008 105 = 0. Tax forms 2008 095) 0. Tax forms 2008 078 This image is too large to be displayed in the current screen. Tax forms 2008 Please click the link to view the image. Tax forms 2008 Portion of Form 1040 and Portion of Schedule SE Prev  Up  Next   Home   More Online Publications