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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Turbotax Business Fed E File 2012

File Federal And State Taxes FreeForm 1040x Instructions2010 Efile2012 1040ez Tax Form1040ez Form Download1040a InstructionsFree State Tax Return OnlineIrs Forms For 2011Irs 1040ez Form 2011Where To File My 2011 Tax ReturnE File State Tax FreeState Taxes Online FreeFile Amended Tax Return 2010 OnlineFree Tax Returns1040nr Online FilingIrs Gov Free FileFree E File 2012 Federal And StateFree Tax PrepWhere To File Taxes For FreeTaxact 2011 Free Federal Edition DownloadFree Tax ReturnsFiling A Amended Tax ReturnFiling Taxes MilitaryHow To File State And Federal Taxes For FreeAmend Tax Return OnlineH & R Block FreeIncome Tax PreparationH&r Block Ez FormAmended 1040Tax Amendment Form 20132012 Tax Forms 1040aH&r Block Tax2011 Income Tax FormTaxact 2012 Tax ReturnWww Freetax Com1040ez Free FilingAmend A 2012 Tax Return1040ez 2012 Tax FormFree Efile FederalTaxes Software

Turbotax Business Fed E File 2012

Turbotax business fed e file 2012 Accelerated Cost Recovery System (ACRS) Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: ACRS Defined What Can and Cannot Be Depreciated Under ACRSRecovery Property Nonrecovery Property How To Figure the DeductionUnadjusted Basis Classes of Recovery Property Recovery Periods Alternate ACRS Method (Modified Straight Line Method) ACRS Deduction in Short Tax Year DispositionsEarly dispositions of ACRS property other than 15-, 18-, or 19-year real property. Turbotax business fed e file 2012 Dispositions — mass asset accounts. Turbotax business fed e file 2012 Early dispositions — 15-year real property. Turbotax business fed e file 2012 Early dispositions — 18- and 19-year real property. Turbotax business fed e file 2012 Depreciation Recapture Topics - This chapter discusses: The definition of ACRS What can and cannot be depreciated under ACRS How to figure the deduction Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization The Accelerated Cost Recovery System (ACRS) applies to property first used before 1987. Turbotax business fed e file 2012 It is the name given to tax rules for getting back (recovering) through depreciation deductions the cost of property used in a trade or business or to produce income. Turbotax business fed e file 2012 These rules are mandatory and generally apply to tangible property placed in service after 1980 and before 1987. Turbotax business fed e file 2012 If you placed property in service during this period, you must continue to figure your depreciation under ACRS. Turbotax business fed e file 2012 If you used listed property placed in service after June 18, 1984, less than 50% for business in 1995, see Predominant Use Test in chapter 3. Turbotax business fed e file 2012 Listed property includes cars, other means of transportation, and certain computers. Turbotax business fed e file 2012 Any additions or improvements placed in service after 1986, including any components of a building (such as plumbing, wiring, storm windows, etc. Turbotax business fed e file 2012 ), are depreciated using MACRS, discussed in chapter 3 of Publication 946. Turbotax business fed e file 2012 It does not matter that the underlying property is depreciated under ACRS or one of the other methods. Turbotax business fed e file 2012 ACRS Defined ACRS consists of accelerated depreciation methods and an alternate ACRS method that could have been elected. Turbotax business fed e file 2012 The alternate ACRS method used a recovery percentage based on a modified straight line method. Turbotax business fed e file 2012 The law prescribes fixed percentages to be uses for each class of property. Turbotax business fed e file 2012 Property depreciable under ACRS is called recovery property. Turbotax business fed e file 2012 The recovery class of property determines the recovery period. Turbotax business fed e file 2012 Generally, the class life of property places it in a 3-year, 5-year, 10-year, 15-year, 18-year, or 19-year recovery class. Turbotax business fed e file 2012 Under ACRS, the prescribed percentages are used to recover the unadjusted basis of recovery property. Turbotax business fed e file 2012 To figure a depreciation deduction, you multiply the prescribed percentage for the recovery class by the unadjusted basis of the recovery property. Turbotax business fed e file 2012 You must continue to figure your depreciation under ACRS for property placed in service after 1980 and before 1987. Turbotax business fed e file 2012 For property you placed in service after 1986, you must use MACRS, discussed in chapter 3 of Publication 946. Turbotax business fed e file 2012 What Can and Cannot Be Depreciated Under ACRS ACRS applies to most depreciable tangible property placed in service after 1980 and before 1987. Turbotax business fed e file 2012 It includes new or used and real or personal property. Turbotax business fed e file 2012 The property must be for use in a trade or business or for the production of income. Turbotax business fed e file 2012 Property you acquired before 1981 or after 1986 is not ACRS recovery property. Turbotax business fed e file 2012 For information on depreciating property acquired before 1981, see chapter 2. Turbotax business fed e file 2012 For information on depreciating property acquired after 1986, see chapter 3 of Publication 946. Turbotax business fed e file 2012 Recovery Property Recovery property under ACRS is tangible depreciable property placed in service after 1980 and before 1987. Turbotax business fed e file 2012 It generally includes new or used property that you acquired after 1980 and before 1987 for use in your trade or business or for the production of income. Turbotax business fed e file 2012 Nonrecovery Property You cannot use ACRS for property you placed in service before 1981 or after 1986. Turbotax business fed e file 2012 Nonrecovery property also includes: Intangible property, Property you elected to exclude from ACRS that is properly depreciated under a method of depreciation that is not based on a term of years, Certain public utility property, and Certain property acquired and excluded from ACRS because of the antichurning rules. Turbotax business fed e file 2012 Intangible property. Turbotax business fed e file 2012   Intangible property is not depreciated under ACRS. Turbotax business fed e file 2012 Property depreciated under methods not expressed in a term of years. Turbotax business fed e file 2012   Certain property depreciated under a method not expressed in a term of years is not depreciated under ACRS. Turbotax business fed e file 2012 This included any property: If you made an irrevocable election to exclude such property, and In the first year that you could have claimed depreciation, you properly used the unit-of-production method or any method of depreciation not expressed in a term of years (not including the retirement-replacement-betterment method). Turbotax business fed e file 2012 Public utility property. Turbotax business fed e file 2012   Public utility property for which the taxpayer does not use a normalization method of accounting is excluded from ACRS and is subject to depreciation under a special rule. Turbotax business fed e file 2012 Additions or improvements to ACRS property after 1986. Turbotax business fed e file 2012   Any additions or improvements placed in service after 1986, including any components of a building (plumbing, wiring, storm windows, etc. Turbotax business fed e file 2012 ) are depreciated using MACRS, discussed in chapter 3 of Publication 946. Turbotax business fed e file 2012 It does not matter that the underlying property is depreciated under ACRS or one of the other methods. Turbotax business fed e file 2012 How To Figure the Deduction After you determine that your property can be depreciated under ACRS, you are ready to figure your deduction. Turbotax business fed e file 2012 Because the conventions are built into the percentage table rates, you only need to know the following: The unadjusted basis of your recovery property, The classes of recovery property, The recovery periods, and Whether to use the prescribed percentages based on accelerated methods or percentages based on using the alternate ACRS method. Turbotax business fed e file 2012 Unadjusted Basis To figure your ACRS deduction, you multiply the unadjusted basis in your recovery property by its applicable percentage for the year. Turbotax business fed e file 2012 Unadjusted basis is the same amount you would use to figure gain on a sale, but it is figured without taking into account any depreciation taken in earlier years. Turbotax business fed e file 2012 However, reduce your original basis by the amount of amortization taken on the property and by any section 179 deduction claimed as discussed in chapter 2 of Publication 946. Turbotax business fed e file 2012 If you buy property, your unadjusted basis is usually its cost minus any amortized amount and minus any section 179 deduction elected. Turbotax business fed e file 2012 If you acquire property in some other way, such as by inheriting it, getting it as a gift, or building it yourself, you figure your unadjusted basis under other rules. Turbotax business fed e file 2012 See Publication 551. Turbotax business fed e file 2012 Classes of Recovery Property All recovery property under ACRS is in one of the following classes. Turbotax business fed e file 2012 The class for your property was determined when you began to depreciate it. Turbotax business fed e file 2012 3-Year Property 3-year property includes automobiles, light-duty trucks (actual unloaded weight less than 13,000 pounds), and tractor units for use over-the-road. Turbotax business fed e file 2012 Race horses over 2 years old when placed in service are 3-year property. Turbotax business fed e file 2012 Any other horses over 12 years old when you placed them in service are also included in the 3-year property class. Turbotax business fed e file 2012 The ACRS percentages for 3-year recovery property are: Recovery Period Percentage 1st year 25% 2nd year 38% 3rd year 37% If you used the percentages above to depreciate your 3-year recovery property, your property, except for certain passenger automobiles, is fully depreciated. Turbotax business fed e file 2012 You cannot claim depreciation for this property after 1988. Turbotax business fed e file 2012 5-Year Property 5-year property includes computers, copiers, and equipment, such as office furniture and fixtures. Turbotax business fed e file 2012 It also includes single purpose agricultural or horticultural structures and petroleum storage facilities (other than buildings and their structural components). Turbotax business fed e file 2012 The ACRS percentages for 5-year recovery property are: Recovery period Percentage 1st year 15% 2nd year 22% 3rd through 5th year 21% If you used the percentages above to depreciate your 5-year recovery property, it is fully depreciated. Turbotax business fed e file 2012 You cannot claim depreciation for this property after 1990. Turbotax business fed e file 2012 10-Year Property 10-year property includes certain real property such as theme-park structures and certain public utility property. Turbotax business fed e file 2012 Manufactured homes (including mobile homes) and railroad tank cars are also 10-year property. Turbotax business fed e file 2012 You do not treat a building, and its structural components, as 10-year property by reason of a change in use after you placed the property in service. Turbotax business fed e file 2012 For example, a building (15-year real property) that was placed in service in 1981 and was converted to a theme-park structure in 1986 remains 15-year real property. Turbotax business fed e file 2012 The ACRS percentages for 10-year recovery property are: Recovery Period Percentage 1st year 8% 2nd year 14% 3rd year 12% 4th through 6th year 10% 7th through 10th year 9% If you used the percentages above, you cannot claim depreciation for this property after 1995. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 On April 21, 1986, you bought and placed in service a new mobile home for $26,000 to be used as rental property. Turbotax business fed e file 2012 You paid $10,000 cash and signed a note for $16,000 giving you an unadjusted basis of $26,000. Turbotax business fed e file 2012 On June 8, 1986, you bought and placed in service a used mobile home for use as rental property at a total cost of $11,500. Turbotax business fed e file 2012 The total unadjusted basis of your 10-year recovery property placed in service in 1986 was $37,500 ($26,000 + $11,500). Turbotax business fed e file 2012 Your ACRS deduction was $3,000 (8% × $37,500). Turbotax business fed e file 2012 In 1987, your ACRS deduction was $5,250 (14% × $37,500). Turbotax business fed e file 2012 In 1988, your ACRS deduction was $4,500 (12% × $37,500). Turbotax business fed e file 2012 In 1989, 1990, and 1991, your ACRS deduction was $3,750 (10% × $37,500). Turbotax business fed e file 2012 In 1992, 1993, 1994, and 1995 your deduction for each year is $3,375 (9% × $37,500). Turbotax business fed e file 2012 15-Year Real Property 15-year real property is real property that is recovery property placed in service before March 16, 1984. Turbotax business fed e file 2012 It includes all real property, such as buildings, other than that designated as 5-year or 10-year property. Turbotax business fed e file 2012 Unlike the 3-, 5-, or 10-year classes of property, the percentages for 15-year real property depend on when you placed the property in service during your tax year. Turbotax business fed e file 2012 You could group 15-year real property by month and year placed in service. Turbotax business fed e file 2012 In Table 1, at the end of this publication in the Appendix, find the month in your tax year that you placed the property in service in your trade or business or for the production of income. Turbotax business fed e file 2012 You use the percentages listed under that month for each year of the recovery period to determine your depreciation deduction each year. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 On March 5, 1984, you placed an apartment building in service in your business. Turbotax business fed e file 2012 It is 15-year real property. Turbotax business fed e file 2012 After subtracting the value of the land, your unadjusted basis in the building is $250,000. Turbotax business fed e file 2012 You use the calendar year as your tax year. Turbotax business fed e file 2012 March is the third month of your tax year. Turbotax business fed e file 2012 Your ACRS deduction for 1984 was $25,000 (10% × $250,000). Turbotax business fed e file 2012 For 1985, the percentage for the third month of the second year of the recovery period is 11%. Turbotax business fed e file 2012 Your deduction was $27,500 (11% × $250,000). Turbotax business fed e file 2012 For the third, fourth, and fifth years of the recovery period (1986, 1987, and 1988), the percentages are 9%, 8%, and 7%. Turbotax business fed e file 2012 For 1989 through 1992, the percentage for the third month is 6%. Turbotax business fed e file 2012 Your deduction each year is $15,000 (6% × $250,000). Turbotax business fed e file 2012 For 1993, 1994, and 1995, the percentage for the third month is 5%. Turbotax business fed e file 2012 Your depreciation deduction is $12,500 (5% × $250,000) for 1993, 1994, and 1995. Turbotax business fed e file 2012 Low-Income Housing Low-income housing that was assigned a 15-year recovery period under ACRS includes the following types of property: Federally assisted housing projects where the mortgage is insured under section 221(d)(3) or 236 of the National Housing Act, or housing financed or assisted by direct loan or tax abatement under similar provisions of state or local laws. Turbotax business fed e file 2012 Low-income rental housing for which a depreciation deduction for rehabilitation expenditures is allowed. Turbotax business fed e file 2012 Low-income rental housing held for occupancy by families or individuals eligible to receive subsidies under section 8 of the United States Housing Act of 1937, as amended, or under the provisions of state or local laws that authorize similar subsidies for low-income families. Turbotax business fed e file 2012 Housing financed or assisted by direct loan or insured under Title V of the Housing Act of 1949. Turbotax business fed e file 2012 The ACRS percentages for low-income housing real property, like the regular 15-year real property percentages, depend on when you placed the property in service. Turbotax business fed e file 2012 Find the month in your tax year in Table 2 or 3 at the end of this publication in the Appendix that you first placed the property in service as rental housing. Turbotax business fed e file 2012 Use the percentages listed under that month for each year of the recovery period. Turbotax business fed e file 2012 Table 2 shows percentages for low-income housing placed in service before May 9, 1985. Turbotax business fed e file 2012 Table 3 shows percentages for low-income housing placed in service after May 8, 1985, and before 1987. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 In May 1986, you acquired and placed in service a house that qualified as low-income rental housing under item 3) of the above listing. Turbotax business fed e file 2012 You use the calendar year as your tax year. Turbotax business fed e file 2012 You use Table C–3 because the property was placed in service after May 8, 1985. Turbotax business fed e file 2012 Your unadjusted basis for the property, not including the land, was $59,000. Turbotax business fed e file 2012 Your deduction for 1986 through 2001 is shown in the following table. Turbotax business fed e file 2012 Year Rate Deduction 1986 8. Turbotax business fed e file 2012 9% $5,251 1987 12. Turbotax business fed e file 2012 1% 7,139 1988 10. Turbotax business fed e file 2012 5% 6,195 1989 9. Turbotax business fed e file 2012 1% 5,369 1990 7. Turbotax business fed e file 2012 9% 4,661 1991 6. Turbotax business fed e file 2012 9% 4,071 1992 5. Turbotax business fed e file 2012 9% 3,481 1993 5. Turbotax business fed e file 2012 2% 3,068 1994 4. Turbotax business fed e file 2012 6% 2,714 1995 4. Turbotax business fed e file 2012 6% 2,714 1996 4. Turbotax business fed e file 2012 6% 2,714 1997 4. Turbotax business fed e file 2012 6% 2,714 1998 4. Turbotax business fed e file 2012 6% 2,714 1999 4. Turbotax business fed e file 2012 5% 2,655 2000 4. Turbotax business fed e file 2012 5% 2,655 2001 1. Turbotax business fed e file 2012 5% 885 18-Year Real Property 18-year real property is real property that is recovery property placed in service after March 15, 1984, and before May 9, 1985. Turbotax business fed e file 2012 It includes real property, such as buildings, other than that designated as 5-year, 10-year, 15-year real property, or low-income housing. Turbotax business fed e file 2012 The ACRS percentages for 18-year real property depend on when you placed the property in service in your trade or business or for the production of income during your tax year. Turbotax business fed e file 2012 There are also tables for 18-year real property in the Appendix. Turbotax business fed e file 2012 Table 4 shows the percentages for 18-year real property you placed in service after June 22, 1984, and before May 9, 1985. Turbotax business fed e file 2012 Table 5 is for 18-year real property placed in service after March 15, 1984, and before June 23, 1984. Turbotax business fed e file 2012 Find the month in your tax year that you placed the property in service in a trade or business or for the production of income. Turbotax business fed e file 2012 Use the percentages listed under that month for each year of the recovery period. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 On April 28, 1985, you bought and placed in service a rental house. Turbotax business fed e file 2012 The house, not including the land, cost $95,000. Turbotax business fed e file 2012 This is your unadjusted basis for the house. Turbotax business fed e file 2012 You use the calendar year as your tax year. Turbotax business fed e file 2012 Because the house was placed in service after June 22, 1984, and before May 9, 1985, it is 18-year real property. Turbotax business fed e file 2012 You use Table 4 to figure your deduction for the house. Turbotax business fed e file 2012 April is the fourth month of your tax year. Turbotax business fed e file 2012 Your deduction for 1985 through 2003 is shown in the following table. Turbotax business fed e file 2012 Year Rate Deduction 1985 7. Turbotax business fed e file 2012 0% $6,650 1986 9. Turbotax business fed e file 2012 0% 8,550 1987 8. Turbotax business fed e file 2012 0% 7,600 1988 7. Turbotax business fed e file 2012 0% 6,650 1989 7. Turbotax business fed e file 2012 0% 6,650 1990 6. Turbotax business fed e file 2012 0% 5,700 1991 5. Turbotax business fed e file 2012 0% 4,750 1992 5. Turbotax business fed e file 2012 0% 4,750 1993 5. Turbotax business fed e file 2012 0% 4,750 1994 5. Turbotax business fed e file 2012 0% 4,750 1995 5. Turbotax business fed e file 2012 0% 4,750 1996 5. Turbotax business fed e file 2012 0% 4,750 1997 5. Turbotax business fed e file 2012 0% 4,750 1998 4. Turbotax business fed e file 2012 0% 3,800 1999 4. Turbotax business fed e file 2012 0% 3,800 2000 4. Turbotax business fed e file 2012 0% 3,800 2001 4. Turbotax business fed e file 2012 0% 3,800 2002 4. Turbotax business fed e file 2012 0% 3,800 2003 1. Turbotax business fed e file 2012 0% 950 19-Year Real Property 19-year real property is real property that is recovery property placed in service after May 8, 1985, and before 1987. Turbotax business fed e file 2012 It includes all real property, other than that designated as 5-year, 10-year, 15-year, or 18-year real property, or low-income housing. Turbotax business fed e file 2012 The ACRS percentages for 19-year real property depend on when you placed the property in service in a trade or business or for the production of income during your tax year. Turbotax business fed e file 2012 Table 6 shows the percentages for 19-year real property. Turbotax business fed e file 2012 You find the month in your tax year that you placed the property in service. Turbotax business fed e file 2012 You use the percentages listed under that month for each year of the recovery period. Turbotax business fed e file 2012 Recovery Periods Each item of recovery property is assigned to a class of property. Turbotax business fed e file 2012 The classes of recovery property establish the recovery periods over which the unadjusted basis of items in a class is recovered. Turbotax business fed e file 2012 The classes of property are: 3-Year property 5-Year property 10-Year property 15-Year real property Low-income housing 18-Year real property 19-Year real property Alternate ACRS Method (Modified Straight Line Method) ACRS provides an alternate ACRS method that could be elected. Turbotax business fed e file 2012 This alternate ACRS method uses a recovery percentage based on a modified straight line method. Turbotax business fed e file 2012 This alternate ACRS method generally uses percentages other than those from the tables. Turbotax business fed e file 2012 If you elected the alternate ACRS method, you determine the recovery period by using the following schedule. Turbotax business fed e file 2012 This schedule is for other than 18- and 19-year real property and low-income housing: In the case of: You could have elected a recovery period of: 3-year property 3, 5, or 12 years 5-year property 5, 12, or 25 years 15-year real property 15, 35, or 45 years Percentages. Turbotax business fed e file 2012   The straight-line percentages for the alternate ACRS method are: Recovery Period Percentage 5 years 20. Turbotax business fed e file 2012 00% 10 years 10. Turbotax business fed e file 2012 00% 12 years 8. Turbotax business fed e file 2012 333% 15 years 6. Turbotax business fed e file 2012 667% 25 years 4. Turbotax business fed e file 2012 00% 35 years 2. Turbotax business fed e file 2012 857%   You apply the percentage to the unadjusted basis(defined earlier) of the property to figure your ACRS deduction. Turbotax business fed e file 2012 There are tables for 18- and 19-year real property later in this publication in the Appendix. Turbotax business fed e file 2012 For 15-year real property, see 15-year real property, later. Turbotax business fed e file 2012 3-, 5-, and 10-year property. Turbotax business fed e file 2012   If you elected to use an alternate recovery percentage, you have to use the same recovery percentage for all property in that class that you placed in service in that tax year. Turbotax business fed e file 2012 This applies throughout the recovery period you selected. Turbotax business fed e file 2012 Half-year convention. Turbotax business fed e file 2012   If you elected the alternate method, only a half-year of depreciation was deducted for the year you placed the property in service. Turbotax business fed e file 2012 This applied regardless of when in the tax year you placed the property in service. Turbotax business fed e file 2012 For each of the remaining years in the recovery period, you take a full year's deduction. Turbotax business fed e file 2012 If you hold the property for the entire recovery period, a half-year of depreciation is allowable for the year following the end of the recovery period. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 You operate a small upholstery business. Turbotax business fed e file 2012 On March 19, 1986, you bought and placed in service a $13,000 light-duty panel truck to be used in your business and a $500 electric saw. Turbotax business fed e file 2012 You elected to use the alternate ACRS method. Turbotax business fed e file 2012 You did not elect to take a section 179 deduction. Turbotax business fed e file 2012 You decided to recover the cost of the truck, which is 3-year recovery property, over 5 years. Turbotax business fed e file 2012 The saw is 5-year property, but you decided to recover its cost over 12 years. Turbotax business fed e file 2012 For 1986, your ACRS deduction reflected the half-year convention. Turbotax business fed e file 2012 In the first year, you deducted half of the amount determined for a full year. Turbotax business fed e file 2012 Your ACRS deduction for 1986 is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600 Half-year convention -½ of $2,600= $1,300. Turbotax business fed e file 2012 00     Electric saw   12 years straight line = 8. Turbotax business fed e file 2012 333% 8. Turbotax business fed e file 2012 333% ÷ $500 = $41. Turbotax business fed e file 2012 67 Half-year convention -½ of $41. Turbotax business fed e file 2012 67= 20. Turbotax business fed e file 2012 84 Total ACRS deduction for 1986 $1,320. Turbotax business fed e file 2012 84       You take a full year of depreciation for both the truck and the saw for the years 1987 through 1990. Turbotax business fed e file 2012 Your ACRS deduction for each of those years is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600     Electric saw     12 years straight line = 8. Turbotax business fed e file 2012 333% 8. Turbotax business fed e file 2012 333% ÷ $500 = $41. Turbotax business fed e file 2012 67 Total annual ACRS deduction for 1987 through 1990 $2,641. Turbotax business fed e file 2012 67       In 1991, you take a half-year of depreciation for the truck and a full year of depreciation for the saw. Turbotax business fed e file 2012 Your ACRS deduction for 1991 is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600 Half-year convention -½ of $2,600= $1,300. Turbotax business fed e file 2012 00     Electric saw   12 years straight line = 8. Turbotax business fed e file 2012 333% 8. Turbotax business fed e file 2012 333% ÷ $500 = $41. Turbotax business fed e file 2012 67 Total ACRS deduction for 1991 $1,341. Turbotax business fed e file 2012 67       The truck is fully depreciated after 1991. Turbotax business fed e file 2012 You take a full year of depreciation for the saw for the years 1992 through 1997. Turbotax business fed e file 2012 Your ACRS deduction for each of those years is as follows: Electric saw     12 years straight line = 8. Turbotax business fed e file 2012 333% 8. Turbotax business fed e file 2012 333% ÷ $500 = $41. Turbotax business fed e file 2012 67 Total annual ACRS deduction for 1992 through 1997 $41. Turbotax business fed e file 2012 67       You take a half-year of depreciation for the saw for 1998. Turbotax business fed e file 2012 Your ACRS deduction for 1998 is as follows: Electric saw   12 years straight line = 8. Turbotax business fed e file 2012 333% 8. Turbotax business fed e file 2012 333% ÷ $500 = $41. Turbotax business fed e file 2012 67 Half-year convention -½ of $41. Turbotax business fed e file 2012 67= 20. Turbotax business fed e file 2012 84 Total ACRS deduction for 1998 $20. Turbotax business fed e file 2012 84       The saw is fully depreciated after 1998. Turbotax business fed e file 2012 15-year real property. Turbotax business fed e file 2012   Under ACRS, you could also elect to use the alternate ACRS method for 15-year real property. Turbotax business fed e file 2012 The alternate ACRS method allows you to depreciate your 15-year real property using the straight line ACRS method over the alternate recovery periods of 15, 35, or 45 years. Turbotax business fed e file 2012 If you selected a 15-year recovery period, you use the percentage (6. Turbotax business fed e file 2012 667%) from the schedule above. Turbotax business fed e file 2012 You prorate this percentage for the number of months the property was in service in the first year. Turbotax business fed e file 2012 If you selected a 35- or 45-year recovery period, you use either Table 11 or 15. Turbotax business fed e file 2012 Alternate periods for 18-year real property. Turbotax business fed e file 2012   For 18-year real property, the alternate recovery periods are 18, 35, or 45 years. Turbotax business fed e file 2012 The percentages for 18-year real property under the alternate method are in Tables 7, 8, 10, 11, 14, and 15 in the Appendix. Turbotax business fed e file 2012 There are two tables for each alternate recovery period. Turbotax business fed e file 2012 One table shows the percentage for property placed in service after June 22, 1984. Turbotax business fed e file 2012 The other table has the percentages for property placed in service after March 15, 1984, and before June 23, 1984. Turbotax business fed e file 2012 Alternate periods for 19-year real property. Turbotax business fed e file 2012   For 19-year real property, the alternate recovery periods are 19, 35, or 45 years. Turbotax business fed e file 2012 If you selected a 19-year recovery period, use Table 9 to determine your deduction. Turbotax business fed e file 2012 If you select a 35- or 45-year recovery period, use either Table 13 or 14. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 You placed in service an apartment building on August 3, 1986. Turbotax business fed e file 2012 The building is 19-year real property. Turbotax business fed e file 2012 The sales contract allocated $300,000 to the building and $100,000 to the land. Turbotax business fed e file 2012 You use the calendar year as your tax year. Turbotax business fed e file 2012 You chose the alternate ACRS method over a recovery period of 35 years. Turbotax business fed e file 2012 For 1986, you figure your ACRS deduction usingTable 13. Turbotax business fed e file 2012 August is the eighth month of your tax year. Turbotax business fed e file 2012 The percentage from Table 13 for the eighth month is 1. Turbotax business fed e file 2012 1%. Turbotax business fed e file 2012 Your deduction was $3,300 ($300,000 ÷ 1. Turbotax business fed e file 2012 1%). Turbotax business fed e file 2012 The deduction rate from ACRS Table 13 for years 2 through 20 is 2. Turbotax business fed e file 2012 9% so that your deduction in 1987 through 2005 is $8,700 ($300,000 ÷ 2. Turbotax business fed e file 2012 9%). Turbotax business fed e file 2012 Alternate periods for low-income housing. Turbotax business fed e file 2012   For low-income housing, the alternate recovery periods are 15, 35, or 45 years. Turbotax business fed e file 2012 If you selected a 15-year period for this property, use 6. Turbotax business fed e file 2012 667% as the percentage. Turbotax business fed e file 2012 If you selected a 35- or 45-year period, use either Table 11, 12, or 15. Turbotax business fed e file 2012 Election. Turbotax business fed e file 2012   You had to make the election to use the alternate ACRS method by the return due date (including extensions) for the tax year you placed the property in service. Turbotax business fed e file 2012 Revocation of election. Turbotax business fed e file 2012   Your election to use an alternate ACRS method, once made, can be changed only with the consent of the Commissioner. Turbotax business fed e file 2012 The Commissioner grants consent only in extraordinary circumstances. Turbotax business fed e file 2012 Any request for a revocation will be considered a request for a ruling. Turbotax business fed e file 2012 ACRS Deduction in Short Tax Year For a tax year that is less than 12 months, the ACRS deduction is prorated on a 12-month basis. Turbotax business fed e file 2012 Figure the amount of the ACRS deduction for a short tax year as follows: First, you figure the ACRS deduction for a full year. Turbotax business fed e file 2012 You figure this by multiplying the unadjusted basis by the recovery percentage. Turbotax business fed e file 2012 You then multiply the ACRS deduction determined for a full tax year by a fraction. Turbotax business fed e file 2012 The numerator (top number) of the fraction is the number of months in the short tax year and the denominator (bottom number) is 12. Turbotax business fed e file 2012 For example, a corporation placed in service in June 1986 an item of 3-year property with an unadjusted basis of $10,000. Turbotax business fed e file 2012 The corporation files a tax return, because of a change in its accounting period, for the 6-month short tax year ending June 30, 1986. Turbotax business fed e file 2012 The full year's ACRS deduction for this item is $2,500 ($10,000 ÷ 25%), the first year percentage from the 3-year table. Turbotax business fed e file 2012 The ACRS deduction for the short tax year is $1,250 ($2,500 ÷ 6/12). Turbotax business fed e file 2012 You use the full ACRS percentages during the remaining years of the recovery period. Turbotax business fed e file 2012 For the first tax year after the recovery period, the unrecovered basis will be deductible. Turbotax business fed e file 2012 Exception. Turbotax business fed e file 2012   For the tax year in which you placed 15-, 18-, or 19-year real property in service or in the tax year you dispose of it, you compute the ACRS deduction for the number of months that the property is in service during that tax year. Turbotax business fed e file 2012 You compute the number of months using either a full month or mid-month convention. Turbotax business fed e file 2012 This is true regardless of the number of months in the tax year and the recovery period and method used. Turbotax business fed e file 2012 Dispositions A disposition is the permanent withdrawal of property from use in your trade or business or in the production of income. Turbotax business fed e file 2012 You can make a withdrawal by sale, exchange, retirement, abandonment, or destruction. Turbotax business fed e file 2012 You generally recognize gain or loss on the disposition of an asset by sale. Turbotax business fed e file 2012 However, nonrecognition rules can allow you to postpone some gain. Turbotax business fed e file 2012 See Publication 544. Turbotax business fed e file 2012 If you physically abandon property, you can deduct as a loss the adjusted basis of the asset at the time of its abandonment. Turbotax business fed e file 2012 Your intent must be to discard the asset so that you will not use it again or retrieve it for sale, exchange, or other disposition. Turbotax business fed e file 2012 Early dispositions. Turbotax business fed e file 2012   The disposal of an asset before the end of its specified recovery period, is referred to as an early disposition. Turbotax business fed e file 2012 When an early disposition occurs, the depreciation deduction in the year of disposition depends on the class of property involved. Turbotax business fed e file 2012 Early dispositions of ACRS property other than 15-, 18-, or 19-year real property. Turbotax business fed e file 2012   Generally, you get no ACRS deduction for the tax year in which you dispose of or retire recovery property, except for 15-, 18-, and 19-year real property. Turbotax business fed e file 2012 This means there is no depreciation deduction under ACRS in the year you dispose of or retire any of your 3-, 5-, or 10-year recovery property. Turbotax business fed e file 2012 Dispositions — mass asset accounts. Turbotax business fed e file 2012   The law provides a special rule to avoid the calculation of gain on the disposition of assets from mass asset accounts. Turbotax business fed e file 2012 A mass asset account includes items usually minor in value in relation to the group, numerous in quantity, impractical to separately identify, and not usually accounted for on a separate basis, but on a total dollar value. Turbotax business fed e file 2012 Examples of mass assets include minor items of office, plant, and store furniture and fixtures. Turbotax business fed e file 2012   Under the special rule, if you elected to use a mass asset account, you recognize gain to the extent of the proceeds from the disposition of the asset. Turbotax business fed e file 2012 You leave the unadjusted basis of the property in the account until recovered in future years. Turbotax business fed e file 2012 If you did this, include the total proceeds realized from the disposition in income on the tax return for the year of disposition. Turbotax business fed e file 2012 Early dispositions — 15-year real property. Turbotax business fed e file 2012   If you dispose of 15-year real property, you base your ACRS deduction for the year of disposition on the number of months in use. Turbotax business fed e file 2012 You use a full-month convention. Turbotax business fed e file 2012 For a disposition at any time during a particular month before the end of the recovery period, no deduction is allowed for the month of disposition. Turbotax business fed e file 2012 This applies whether you use the regular ACRS method or elected the alternate ACRS method. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 You purchased and placed in service a rental house on March 2, 1984, for $98,000 (not including the cost of land). Turbotax business fed e file 2012 You file your return based on a calendar year. Turbotax business fed e file 2012 Your rate from Table 1 for the third month is 10%. Turbotax business fed e file 2012 Your ACRS deduction for 1984 was $9,800 ($98. Turbotax business fed e file 2012 000 ÷ 10%). Turbotax business fed e file 2012 For 1985 through 1988, you figured your ACRS deductions using 11%, 9%, 8%, and 7% ÷ $98,000. Turbotax business fed e file 2012 For 1989 through 1992, you figured your ACRS deductions using 6% for each year. Turbotax business fed e file 2012 The deduction each year was $98,000 ÷ 6%. Turbotax business fed e file 2012 For 1993 and 1994, the ACRS deduction is ($98,000 ÷ 5%) $4,900 for each year. Turbotax business fed e file 2012 You sell the house on June 1, 1995. Turbotax business fed e file 2012 You figure your ACRS deduction for 1995 for the full year and then prorate that amount for the months of use. Turbotax business fed e file 2012 The full ACRS deduction for 1995 is $4,900 ($98,000 ÷ 5%). Turbotax business fed e file 2012 You then prorate this amount to the 5 months in 1995 during which it was rented. Turbotax business fed e file 2012 Your ACRS deduction for 1995 is $2,042 ($4,900 ÷ 5/12). Turbotax business fed e file 2012 Early dispositions — 18- and 19-year real property. Turbotax business fed e file 2012   If you dispose of 18- or 19-year real property, you base your ACRS deduction for the year of disposition on the number of months in use. Turbotax business fed e file 2012 For 18-year property placed in service before June 23, 1984, use a full-month convention on a disposition. Turbotax business fed e file 2012 For 18-year property placed in service after June 22, 1984, and for 19-year property, determine the number of months in use by using the mid-month convention. Turbotax business fed e file 2012 Under the mid-month convention,treat real property disposed of any time during a month as disposed of in the middle of that month. Turbotax business fed e file 2012 Count the month of disposition as half a month of use. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 You purchased and placed in service a rental house on July 2, 1984, for $100,000 (not including the cost of land). Turbotax business fed e file 2012 You file your return based on a calendar year. Turbotax business fed e file 2012 Your rate from Table 4 for the seventh month is 4%. Turbotax business fed e file 2012 You figured your ACRS deduction for 1984 was $4,000 ($100,000 ÷ 4%). Turbotax business fed e file 2012 In 1985 through 1994, your ACRS deductions were 9%, 8%, 8%, 7%, 6%, 6%, 5%, 5%, and 5% ÷ $100,000. Turbotax business fed e file 2012 You sell the house on September 24, 1995. Turbotax business fed e file 2012 Figure your ACRS deduction for 1995 for the months of use. Turbotax business fed e file 2012 The full ACRS deduction for 1995 is $5,000 ($100,000 ÷ 5%). Turbotax business fed e file 2012 Prorate this amount for the 8. Turbotax business fed e file 2012 5 months in 1995 that you held the property. Turbotax business fed e file 2012 Under the mid-month convention, you count September as half a month. Turbotax business fed e file 2012 Your ACRS deduction for 1995 is $3,542 ($5,000 ÷ 8. Turbotax business fed e file 2012 5/12). Turbotax business fed e file 2012 Depreciation Recapture If you dispose of property depreciated under ACRS that is section 1245 recovery property, you will generally recognize gain or loss. Turbotax business fed e file 2012 Gain recognized on a disposition is ordinary income to the extent of prior depreciation deductions taken. Turbotax business fed e file 2012 This recapture rule applies to all personal property in the 3-year, 5-year, and 10-year classes. Turbotax business fed e file 2012 You recapture gain on manufactured homes and theme park structures in the 10-year class as section 1245 property. Turbotax business fed e file 2012 Section 1245 property generally includes all personal property. Turbotax business fed e file 2012 See Section 1245 property in chapter 4 of Publication 544 for more information. Turbotax business fed e file 2012 You treat dispositions of section 1250 real property on which you have a gain as section 1245 recovery property. Turbotax business fed e file 2012 You recognize gain on this property as ordinary income to the extent of prior depreciation deductions taken. Turbotax business fed e file 2012 Section 1250 property includes most real property. Turbotax business fed e file 2012 See Section 1250 property in chapter 4 of Publication 544 for more information. Turbotax business fed e file 2012 This rule applies to all section 1250 real property except the following property: Any 15-, 18-, or 19-year real property that is residential rental property. Turbotax business fed e file 2012 Any 15-, 18-, or 19-year real property that you elected to depreciate using the alternate ACRS method. Turbotax business fed e file 2012 Any 15-, 18-, or 19-year real property that is subsidized low-income housing. Turbotax business fed e file 2012 For these recapture rules, you treat the section 179 deduction and 50% of the investment credit that reduced your basis as depreciation. Turbotax business fed e file 2012 See Publication 544 for further discussion of dispositions of section 1245 and 1250 property. Turbotax business fed e file 2012 Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

for Tax Pros

Open Season for Membership in the Information Reporting Advisory Committee (IRPAC)
The Internal Revenue Service (IRS) is accepting nominations to IRPAC beginning April 1, 2014 and ending May 30, 2014. IRPAC provides recommendations to IRS leadership on a wide range of information.

IRS to waive Forms 5498, 1098-T and 1099-G penalties for the initial year of introduction
Taxpayers and/or their representatives who have questions should contact the IRS per the notice instructions.

IRS statement on court ruling related to return preparers
Update: Feb. 11, 2014 - The U.S. Court of Appeals for the District of Columbia Circuit upheld the decision of the lower court in the case of Loving vs. IRS, finding insufficient statutory support for the IRS’ regulation of federal tax return preparers. The IRS continues to believe that it’s critical for the taxpayers to be able to rely on quality work from tax preparers and is assessing the court’s decision.

Please continue to check this site for additional information as it becomes available.

Registration & Testing

Other Tools & Information

Continuing Education

Responsibility & Oversight

 

Page Last Reviewed or Updated: 28-Mar-2014

The Turbotax Business Fed E File 2012

Turbotax business fed e file 2012 Publication 3 - Main Content Table of Contents Gross IncomeForeign Source Income Military Spouses Residency Relief Act (MSRRA) Community Property Form W-2 Codes Adjustments to IncomeArmed Forces Reservists Individual Retirement Arrangements Moving Expenses Combat Zone ExclusionCombat Zone Serving in a Combat Zone Amount of Exclusion Alien StatusResident Aliens Nonresident Aliens Dual-Status Aliens Sale of HomePeriod of suspension. Turbotax business fed e file 2012 Qualified official extended duty. Turbotax business fed e file 2012 ForeclosuresLump Sum Portion of Settlement Payment. Turbotax business fed e file 2012 Interest Payment on Lump Sum Portion of Settlement Payment. Turbotax business fed e file 2012 Lost Equity Portion of Settlement Payment. Turbotax business fed e file 2012 The rules that apply to a lost equity payment you received for the foreclosure of a property that was not your main home are different. Turbotax business fed e file 2012 Interest Payment on Lost Equity Portion of Settlement Payment. Turbotax business fed e file 2012 Itemized DeductionsEmployee Business Expenses Repayments CreditsFirst-Time Homebuyer Credit Child Tax Credit Earned Income Credit Credit for Excess Social Security Tax Withheld Forgiveness of Decedent's Tax LiabilityCombat Zone Related Forgiveness Terrorist or Military Action Related Forgiveness Claims for Tax Forgiveness Filing ReturnsSame-Sex Marriage Where To File When To File Signing Returns Extension of DeadlinesService That Qualifies for an Extension of Deadline Length of Extension Actions for Which Deadlines Are Extended Deferral of Payment Maximum Rate of Interest How To Get Tax HelpLow Income Taxpayer Clinics Gross Income Members of the Armed Forces receive many different types of pay and allowances. Turbotax business fed e file 2012 Some are included in gross income while others are excluded from gross income. Turbotax business fed e file 2012 Included items (Table 1) are subject to tax and must be reported on your tax return. Turbotax business fed e file 2012 Excluded items (Table 2) are not subject to tax, but may have to be shown on your tax return. Turbotax business fed e file 2012 For information on the exclusion of pay for service in a combat zone and other tax benefits for combat zone participants, see Combat Zone Exclusion and Extension of Deadlines , later. Turbotax business fed e file 2012 Table 1. Turbotax business fed e file 2012 Included Items These items are included in gross income, unless the pay is for service in a combat zone. Turbotax business fed e file 2012 Basic pay • Active duty   Bonus pay • Career status   • Attendance at a designated service school     • Enlistment  • Officer   • Back wages     • Overseas extension   • CONUS COLA       • Reenlistment   • Drills         • Reserve training         • Training duty   Other pay  • Accrued leave          • High deployment per diem Special • Aviation career incentives      • Personal money allowances paid to pay • Career sea     high-ranking officers   • Diving duty      • Student loan repayment from programs   • Foreign duty (outside the 48 contiguous     such as the Department of Defense   states and the District of Columbia)     Educational Loan Repayment Program   • Foreign language proficiency     when year's service (requirement) is not   • Hardship duty     attributable to a combat zone   • Hostile fire or imminent danger         • Medical and dental officers   Incentive pay  • Submarine   • Nuclear-qualified officers      • Flight   • Optometry      • Hazardous duty   • Pharmacy      • High altitude/Low Opening (HALO)   • Special compensation for assistance with activities of daily living (SCAADL)         • Special duty assignment pay         • Veterinarian         • Voluntary Separation Incentive       Basic allowance for housing (BAH). Turbotax business fed e file 2012   You can still deduct mortgage interest and real estate taxes on your home if you pay these expenses with your BAH. Turbotax business fed e file 2012 Table 2. Turbotax business fed e file 2012 Excluded Items The exclusion for certain items applies whether the item is furnished in kind or is a reimbursement or allowance. Turbotax business fed e file 2012 There is no exclusion for the personal use of a government-provided vehicle. Turbotax business fed e file 2012 Combat  zone pay • Compensation for active service while in a combat zone Note: Limited amount for officers     • Housing and cost-of-living allowances abroad paid by the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government or by a foreign government         • OHA (Overseas Housing Allowance)                     Other pay • Defense counseling         • Disability, including payments received for injuries incurred as a direct result of a terrorist or military action         • Group-term life insurance   Moving • Dislocation   • Professional education   allowances • Military base realignment and   • ROTC educational and subsistence     closure benefit    allowances     (the exclusion is limited as   • State bonus pay for service in a     described above)   combat zone     • Move-in housing   • Survivor and retirement protection     • Moving household and   plan premiums     personal items   • Uniform allowances     • Moving trailers or mobile homes   • Uniforms furnished to enlisted     • Storage   personnel     • Temporary lodging and         temporary lodging expenses                 Travel • Annual round trip for dependent Death • Burial services   allowances students allowances • Death gratuity payments to     • Leave between consecutive   eligible survivors     overseas tours   • Travel of dependents to burial site     • Reassignment in a dependent         restricted status Family • Certain educational expenses for     • Transportation for you or your allowances dependents     dependents during ship overhaul   • Emergencies     or inactivation   • Evacuation to a place of safety     • Per diem   • Separation             In-kind military • Dependent-care assistance program Living • BAH (Basic Allowance for Housing)   benefits • Legal assistance allowances • BAS (Basic Allowance for Subsistence)     • Medical/dental care         • Commissary/exchange discounts         • Space-available travel on government aircraft           Death gratuity. Turbotax business fed e file 2012   Any death gratuity paid to a survivor of a member of the Armed Forces is excluded from gross income. Turbotax business fed e file 2012 Differential wage payments. Turbotax business fed e file 2012   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and that represent all or a portion of the wages the individual would have received from the employer if the individual was performing services for the employer. Turbotax business fed e file 2012 These amounts are taxable and cannot be excluded as combat pay. Turbotax business fed e file 2012 Military base realignment and closure benefit. Turbotax business fed e file 2012   Payments made under the Homeowners Assistance Program (HAP) generally are excluded from income. Turbotax business fed e file 2012 However, the excludable amount cannot be more than the maximum amount described in subsection (c) of 42 USC 3374 as in effect on November 6, 2009. Turbotax business fed e file 2012 Any part of the payment that is more than this limit is included in gross income. Turbotax business fed e file 2012 For more information about the HAP, see http://hap. Turbotax business fed e file 2012 usace. Turbotax business fed e file 2012 army. Turbotax business fed e file 2012 mil/Overview. Turbotax business fed e file 2012 html. Turbotax business fed e file 2012 Qualified reservist distribution (QRD). Turbotax business fed e file 2012   A QRD is a distribution to an individual of all or part of the individual's balance in a cafeteria plan or health flexible spending arrangement if: The individual was a reservist who was ordered or called to active duty for more than 179 days or for an indefinite period, and The distribution is made no sooner than the date the reservist was ordered or called to active duty and no later than the last day reimbursements could otherwise be made under the arrangement for the plan year which includes the date of the order or the call to duty. Turbotax business fed e file 2012 A QRD is included in gross income and is subject to employment taxes. Turbotax business fed e file 2012 The employer must include the QRD (reduced by after-tax contributions to the health flexible spending arrangement) as wages on Form W-2, Wage and Tax Statement. Turbotax business fed e file 2012 Thrift Savings Plan (TSP) distributions. Turbotax business fed e file 2012   If you participate in the Uniformed Services TSP and receive a distribution from your account, the distribution is generally included in your taxable income. Turbotax business fed e file 2012   If your contributions included tax-exempt combat zone pay, the part of the distribution attributable to those contributions is tax exempt. Turbotax business fed e file 2012 However, the earnings on the tax-exempt portion of the distribution are taxable. Turbotax business fed e file 2012 The TSP will provide a statement showing the taxable and non-taxable portions of the distribution. Turbotax business fed e file 2012 Roth Thrift Savings Plan (TSP) balance. Turbotax business fed e file 2012   You may be able to contribute to a designated Roth Account through the TSP known as the Roth TSP. Turbotax business fed e file 2012 Roth TSP contributions are after-tax contributions, subject to the same contribution limits as the traditional TSP. Turbotax business fed e file 2012 Qualified distributions from a Roth TSP are not included in your income. Turbotax business fed e file 2012 For more details, see Thrift Savings Accounts in Part II of Publication 721, Tax Guide to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Civil Service Retirement Benefits. Turbotax business fed e file 2012 State bonus payments. Turbotax business fed e file 2012   Bonus payments made by a state (or a political subdivision thereof) to a member or former member of the uniformed services of the United States or to a dependent of such member are considered combat pay (and therefore may not be taxable) if the payments are made only because of the member's service in a combat zone. Turbotax business fed e file 2012 See Combat Zone , later, for a list of designated combat zones. Turbotax business fed e file 2012 Foreign Source Income If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen with income from sources outside the United States (foreign income), you must report all of that income (except for amounts that U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 law allows you to exclude) on your tax return. Turbotax business fed e file 2012 This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2 or a Form 1099. Turbotax business fed e file 2012 This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). Turbotax business fed e file 2012 Certain taxpayers can exclude income earned in foreign countries. Turbotax business fed e file 2012 For 2013, this exclusion amount can be as much as $97,600. Turbotax business fed e file 2012 However, the foreign earned income exclusion does not apply to the wages and salaries of military and civilian employees of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government. Turbotax business fed e file 2012 Employees of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government include those who work at United States Armed Forces exchanges, commissioned and noncommissioned officers' messes, Armed Forces motion picture services, and similar personnel. Turbotax business fed e file 2012 Other foreign income earned by military personnel or their spouses may be eligible for the foreign earned income exclusion. Turbotax business fed e file 2012 For more information on the exclusion, see Publication 54. Turbotax business fed e file 2012 Residents of American Samoa may be able to exclude income from American Samoa. Turbotax business fed e file 2012 This possession exclusion does not apply to wages and salaries of military and civilian employees of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Government. Turbotax business fed e file 2012 If you need information on the possession exclusion, see Publication 570, Tax Guide for Individuals With Income From U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Possessions. Turbotax business fed e file 2012 Military Spouses Residency Relief Act (MSRRA) If you are the civilian spouse of an active duty U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 military servicemember and your domicile is the same as the servicemember's, you can choose to keep your prior residence or domicile for tax purposes when you accompany the servicemember spouse, who is relocating under military orders to a new duty station in one of the 50 states, the District of Columbia, or a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 possession. Turbotax business fed e file 2012 See Publication 570 for more information. Turbotax business fed e file 2012 Domicile. Turbotax business fed e file 2012   Your domicile is the permanent legal home you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Turbotax business fed e file 2012 It is not always where you presently live. Turbotax business fed e file 2012 Community Property The pay you earn as a member of the Armed Forces may be subject to community property laws depending on your marital status, your domicile, and the nature of the payment. Turbotax business fed e file 2012 The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Turbotax business fed e file 2012 Marital status. Turbotax business fed e file 2012   Community property rules apply to married persons whose domicile during the tax year was in a community property state. Turbotax business fed e file 2012 The rules may affect your tax liability if you file separate returns or are divorced during the year. Turbotax business fed e file 2012 Nevada, Washington, and California domestic partners. Turbotax business fed e file 2012   A registered domestic partner in Nevada, Washington, or California generally must report half the combined income of the individual and his or her domestic partner. Turbotax business fed e file 2012 See Form 8958 and Publication 555, Community Property. Turbotax business fed e file 2012 Nature of the payment. Turbotax business fed e file 2012   Active duty military pay is subject to community property laws. Turbotax business fed e file 2012 Armed Forces retired or retainer pay may be subject to community property laws. Turbotax business fed e file 2012   For more information on community property laws, see Publication 555. Turbotax business fed e file 2012 Form W-2 Codes Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Turbotax business fed e file 2012 Form W-2 also shows other amounts that you may find important in box 12. Turbotax business fed e file 2012 The amounts shown in box 12 are generally preceded by a code. Turbotax business fed e file 2012 A list of codes used in box 12 is shown, next. Turbotax business fed e file 2012 Form W-2 Reference Guide for Box 12 Codes A Uncollected social security or RRTA J Nontaxable sick pay T Adoption benefits   tax on tips             K 20% excise tax on excess golden V Income from exercise of B Uncollected Medicare tax on tips   parachute payments   nonstatutory stock option(s)             C Taxable cost of group-term life L Substantiated employee business W Employer contributions (including   insurance over $50,000   expense reimbursements   employee contributions through a           cafeteria plan) to an employee's D Elective deferrals under a section M Uncollected social security or RRTA   health savings account (HSA)   401(k) cash or deferred arrangement   tax on taxable cost of group-term life       plan (including a SIMPLE 401(k)   insurance over $50,000 (former Y Deferrals under a section 409A   arrangement)   employees only)   nonqualified deferred           compensation plan E Elective deferrals under a section N Uncollected Medicare tax on taxable       403(b) salary reduction agreement   cost of group-term life insurance Z Income under section 409A on a       over $50,000 (former employees only)   nonqualified deferred F Elective deferrals under a section       compensation plan   408(k)(6) salary reduction SEP P Excludable moving expense           reimbursements paid directly to AA Designated Roth contributions G Elective deferrals and employer   employee   under a section 401(k) plan   contributions (including nonelective           deferrals) to a section 457(b) Q Nontaxable combat pay BB Designated Roth contributions   deferred compensation plan       under a section 403(b) plan     R Employer contributions to an Archer     H Elective deferrals to a section   MSA DD Cost of employer-sponsored   501(c)(18)(D) tax-exempt       health coverage   organization plan S Employee salary reduction contributions under a section 408(p) SIMPLE  EE  Designated Roth contributions under a governmental section 457(b) plan  Note. Turbotax business fed e file 2012 For more information on these codes, see your Form(s) W-2. Turbotax business fed e file 2012 Adjustments to Income Adjusted gross income is your total income minus certain adjustments. Turbotax business fed e file 2012 The following adjustments are of particular interest to members of the Armed Forces. Turbotax business fed e file 2012 Armed Forces Reservists If you are a member of a reserve component of the Armed Forces and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your unreimbursed travel expenses as an adjustment to income on line 24 of Form 1040, U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Individual Income Tax Return, rather than as a miscellaneous itemized deduction. Turbotax business fed e file 2012 Include all unreimbursed expenses from the time you leave home until the time you return home. Turbotax business fed e file 2012 The deduction is limited to the amount the federal government generally reimburses its employees for travel expenses. Turbotax business fed e file 2012 For more information about this limit, see Per Diem and Car Allowances in chapter 6 of Publication 463. Turbotax business fed e file 2012 Member of a reserve component. Turbotax business fed e file 2012   You are a member of a reserve component of the Armed Forces if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. Turbotax business fed e file 2012 How to report. Turbotax business fed e file 2012   If you have reserve-related travel that takes you more than 100 miles from home, you should first complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. Turbotax business fed e file 2012 Then enter on Form 1040, line 24, the part of your expenses, up to the federal rate, included on Form 2106, line 10, or Form 2106-EZ, line 6, that is for reserve-related travel more than 100 miles from your home. Turbotax business fed e file 2012 Subtract this amount from the total on Form 2106, line 10, or Form 2106-EZ, line 6, and deduct the balance as an itemized deduction on Schedule A (Form 1040), line 21. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 Captain Harris, a member of the Army Reserve, traveled to a location 220 miles from his home to perform his work in the reserves in April 2013. Turbotax business fed e file 2012 He incurred $1,549 of unreimbursed expenses consisting of $249 for mileage (440 miles × 56. Turbotax business fed e file 2012 5 cents per mile), $300 for meals, and $1,000 for lodging. Turbotax business fed e file 2012 He also had other deductible mileage expenses of $110 for several trips to a location 20 miles from his home. Turbotax business fed e file 2012 Only 50% of his meal expenses are deductible. Turbotax business fed e file 2012 He shows his total deductible travel expenses of $1,509 ($249 + $150 (50% of $300) + $1,000 + $110) on Form 2106, line 10. Turbotax business fed e file 2012 He enters the $1,399 ($249 + $150 + $1,000) for travel over 100 miles from home on Form 1040, line 24. Turbotax business fed e file 2012 He then subtracts that $1,399 from the amount on Form 2106, $1,509, and enters $110 on Schedule A (Form 1040), line 21. Turbotax business fed e file 2012 Individual Retirement Arrangements Generally, you can deduct the lesser of the contributions to your traditional individual retirement arrangement (IRA) for the year or the general limit (or spousal IRA limit, if applicable). Turbotax business fed e file 2012 However, if you or your spouse was covered by an employer-maintained retirement plan at any time during the year for which contributions were made, you may not be able to deduct all of the contributions. Turbotax business fed e file 2012 The Form W-2 you or your spouse receives from an employer has a box used to indicate whether you were covered for the year. Turbotax business fed e file 2012 The “Retirement plan” box should have a mark in it if you were covered. Turbotax business fed e file 2012 For purposes of a deduction for contributions to a traditional IRA, Armed Forces members (including reservists on active duty for more than 90 days during the year) are considered covered by an employer-maintained retirement plan. Turbotax business fed e file 2012 Individuals serving in the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces or in support of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces in designated combat zones have additional time to make a qualified retirement contribution to an IRA. Turbotax business fed e file 2012 For more information on this extension of deadline provision, see Extension of Deadlines , later. Turbotax business fed e file 2012 For more information on IRAs, see Publication 590. Turbotax business fed e file 2012 Combat Pay For IRA purposes, your compensation includes nontaxable combat pay. Turbotax business fed e file 2012 This means that even though you do not have to include the combat pay in your gross income, you do include it in your compensation when figuring the limits on contributions and deductions of contributions to IRAs. Turbotax business fed e file 2012 Qualified Reservist Distributions A qualified reservist distribution is defined below. Turbotax business fed e file 2012 It is not subject to the 10% additional tax on early distributions from certain retirement plans. Turbotax business fed e file 2012 Definition. Turbotax business fed e file 2012   A distribution you receive is a qualified reservist distribution if the following requirements are met. Turbotax business fed e file 2012 You were ordered or called to active duty after September 11, 2001. Turbotax business fed e file 2012 You were ordered or called to active duty for a period of more than 179 days or for an indefinite period because you are a member of a reserve component (see Member of a reserve component , earlier, under Armed Forces Reservists. Turbotax business fed e file 2012 ) The distribution is from an IRA or from amounts attributable to elective deferrals under a section 401(k) or 403(b) plan or a similar arrangement. Turbotax business fed e file 2012 The distribution was made no earlier than the date of the order or call to active duty and no later than the close of the active duty period. Turbotax business fed e file 2012 Qualified Reservist Repayments You may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined earlier) you received. Turbotax business fed e file 2012 You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. Turbotax business fed e file 2012 You make these repayment contributions to an IRA, even if you received the qualified reservist distribution from a section 401(k) or 403(b) plan or a similar arrangement. Turbotax business fed e file 2012 Limit. Turbotax business fed e file 2012   Your qualified reservist repayments cannot be more than your qualified reservist distributions. Turbotax business fed e file 2012 When repayment contributions can be made. Turbotax business fed e file 2012   You cannot make these repayment contributions after the date that is 2 years after your active duty period ends. Turbotax business fed e file 2012 No deduction. Turbotax business fed e file 2012   You cannot deduct qualified reservist repayments. Turbotax business fed e file 2012 Figuring your IRA deduction. Turbotax business fed e file 2012   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. Turbotax business fed e file 2012 Reporting the repayment. Turbotax business fed e file 2012   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606, Nondeductible IRAs. Turbotax business fed e file 2012 Moving Expenses To deduct moving expenses, you generally must meet certain time and distance tests. Turbotax business fed e file 2012 However, if you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet these tests. Turbotax business fed e file 2012 You can deduct your unreimbursed moving expenses on Form 3903. Turbotax business fed e file 2012 Permanent change of station. Turbotax business fed e file 2012   A permanent change of station includes: A move from your home to your first post of active duty, A move from one permanent post of duty to another, and A move from your last post of duty to your home or to a nearer point in the United States. Turbotax business fed e file 2012 The move must occur within 1 year of ending your active duty or within the period allowed under the Joint Federal Travel Regulations. Turbotax business fed e file 2012 Spouse and dependents. Turbotax business fed e file 2012   If you are the spouse or dependent of a member of the Armed Forces who deserts, is imprisoned, or dies, a permanent change of station for you includes a move to: The member's place of enlistment or induction, Your, or the member's, home of record, or A nearer point in the United States. Turbotax business fed e file 2012   If the military moves you to or from a different location than the member, the moves are treated as a single move to your new main job location. Turbotax business fed e file 2012 Services or reimbursements provided by the government. Turbotax business fed e file 2012   Do not include in your income the value of moving and storage services provided by the government because of a permanent change of station. Turbotax business fed e file 2012 Similarly, do not include in income amounts received as a dislocation allowance, temporary lodging expense, temporary lodging allowance, or move-in housing allowance. Turbotax business fed e file 2012   Generally, if the total reimbursements or allowances that you receive from the government because of the move are more than your actual moving expenses, the excess is included in your wages on Form W-2. Turbotax business fed e file 2012 However, if any reimbursements or allowances (other than dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances) exceed the cost of moving and the excess is not included in your wages on Form W-2, the excess still must be included in gross income on Form 1040, line 7. Turbotax business fed e file 2012   Use Form 3903 to deduct qualified expenses that exceed your reimbursements and allowances (including dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances that are excluded from gross income). Turbotax business fed e file 2012   If you must relocate and your spouse and dependents move to or from a different location, do not include in income reimbursements, allowances, or the value of moving and storage services provided by the government to move you and your spouse and dependents to and from the separate locations. Turbotax business fed e file 2012   Do not deduct any expenses for moving services that were provided by the government. Turbotax business fed e file 2012 Also, do not deduct any expenses that were reimbursed by an allowance you did not include in income. Turbotax business fed e file 2012 Deductible Moving Expenses If you move because of a permanent change of station, you can deduct the reasonable unreimbursed expenses of moving you and members of your household. Turbotax business fed e file 2012 You can deduct expenses (if not reimbursed or furnished in kind) for: Moving household goods and personal effects, and Travel. Turbotax business fed e file 2012 Moving household goods and personal effects. Turbotax business fed e file 2012   You can deduct the expenses of moving your household goods and personal effects, including expenses for hauling a trailer, packing, crating, in-transit storage, and insurance. Turbotax business fed e file 2012 You cannot deduct expenses for moving furniture or other goods you bought on the way from your old home to your new home. Turbotax business fed e file 2012 Storing and insuring household goods and personal effects. Turbotax business fed e file 2012   You can include only the cost of storing and insuring your household goods and personal effects within any period of 30 consecutive days after the day these goods and effects are moved from your former home and before they are delivered to your new home. Turbotax business fed e file 2012 Travel. Turbotax business fed e file 2012   You can deduct the expenses of traveling (including lodging but not meals) from your old home to your new home, including car expenses and air fare. Turbotax business fed e file 2012 You can deduct as car expenses either: Your actual out-of-pocket expenses such as gas and oil, or The standard mileage rate of 24 cents a mile. Turbotax business fed e file 2012   You can add parking fees and tolls to the amount claimed under either method. Turbotax business fed e file 2012 You cannot deduct any expenses for meals. Turbotax business fed e file 2012 You cannot deduct the cost of unnecessary side trips or lavish and extravagant lodging. Turbotax business fed e file 2012 Member of your household. Turbotax business fed e file 2012   A member of your household is anyone who has both your former home and your new home as his or her main home. Turbotax business fed e file 2012 It does not include a tenant or employee unless you can claim that person as a dependent. Turbotax business fed e file 2012 Foreign Moves A foreign move is a move from the United States or its possessions to a foreign country or from one foreign country to another foreign country. Turbotax business fed e file 2012 A move from a foreign country to the United States or its possessions is not a foreign move. Turbotax business fed e file 2012 For a foreign move, the deductible moving expenses described earlier are expanded to include the reasonable expenses of: Moving your household goods and personal effects to and from storage, and Storing these items for part or all of the time the new job location remains your main job location. Turbotax business fed e file 2012 The new job location must be outside the United States. Turbotax business fed e file 2012 Reporting Moving Expenses Figure moving expense deductions on Form 3903. Turbotax business fed e file 2012 Carry the deduction from Form 3903 to Form 1040, line 26. Turbotax business fed e file 2012 For more information, see Publication 521 and Form 3903. Turbotax business fed e file 2012 Combat Zone Exclusion If you are a member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces who serves in a combat zone (defined later), you can exclude certain pay from your income. Turbotax business fed e file 2012 This pay is generally referred to as “combat pay. Turbotax business fed e file 2012 ” You do not actually need to show the exclusion on your tax return because income that qualifies for the combat zone exclusion is not included in the wages reported on your Form W-2. Turbotax business fed e file 2012 (See Form W-2 , later. Turbotax business fed e file 2012 ) The month for which you receive the pay must be a month in which you either served in a combat zone or were hospitalized as a result of wounds, disease, or injury incurred while serving in the combat zone. Turbotax business fed e file 2012 You do not have to receive the excluded pay while you are in a combat zone, are hospitalized, or in the same year you served in a combat zone. Turbotax business fed e file 2012 If you are an enlisted member, warrant officer, or commissioned warrant officer, you can exclude the following amounts from your income. Turbotax business fed e file 2012 (Other officer personnel are discussed under Amount of Exclusion , later. Turbotax business fed e file 2012 ) Active duty pay earned in any month you served in a combat zone. Turbotax business fed e file 2012 Imminent danger/hostile fire pay. Turbotax business fed e file 2012 A reenlistment bonus if the voluntary extension or reenlistment occurs in a month you served in a combat zone. Turbotax business fed e file 2012 Pay for accrued leave earned in any month you served in a combat zone. Turbotax business fed e file 2012 The Department of Defense must determine that the unused leave was earned during that period. Turbotax business fed e file 2012 Pay received for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other nonappropriated fund activities. Turbotax business fed e file 2012 The pay must be earned in a month you served in a combat zone. Turbotax business fed e file 2012 Awards for suggestions, inventions, or scientific achievements you are entitled to because of a submission you made in a month you served in a combat zone. Turbotax business fed e file 2012 Student loan repayments. Turbotax business fed e file 2012 If the entire year of service required to earn the repayment was performed in a combat zone, the entire repayment made because of that year of service is excluded. Turbotax business fed e file 2012 If only part of that year of service was performed in a combat zone, only part of the repayment qualifies for exclusion. Turbotax business fed e file 2012 For example, if you served in a combat zone for 5 months, 5/12 of your repayment qualifies for exclusion. Turbotax business fed e file 2012 Retirement pay and pensions do not qualify for the combat zone exclusion. Turbotax business fed e file 2012 Partial (month) service. Turbotax business fed e file 2012   If you serve in a combat zone for any part of one or more days during a particular month, you are entitled to an exclusion for that entire month. Turbotax business fed e file 2012 Form W-2. Turbotax business fed e file 2012   The wages shown in box 1 of your 2013 Form W-2 should not include military pay excluded from your income under the combat zone exclusion provisions. Turbotax business fed e file 2012 If it does, you will need to get a corrected Form W-2 from your finance office. Turbotax business fed e file 2012   You cannot exclude as combat pay any wages shown in box 1 of Form W-2. Turbotax business fed e file 2012 Combat Zone A combat zone is any area the President of the United States designates by Executive Order as an area in which the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces are engaging or have engaged in combat. Turbotax business fed e file 2012 An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order. Turbotax business fed e file 2012 Afghanistan area. Turbotax business fed e file 2012   By Executive Order No. Turbotax business fed e file 2012 13239, Afghanistan (and airspace above) was designated as a combat zone beginning September 19, 2001. Turbotax business fed e file 2012 On December 14, 2001, the following countries were certified by the Department of Defense for combat zone tax benefits due to their direct support of military operations in the Afghanistan combat zone. Turbotax business fed e file 2012 Djibouti. Turbotax business fed e file 2012 Jordan. Turbotax business fed e file 2012 Kyrgyzstan. Turbotax business fed e file 2012 Pakistan. Turbotax business fed e file 2012 Somalia. Turbotax business fed e file 2012 Syria. Turbotax business fed e file 2012 Tajikistan. Turbotax business fed e file 2012 Uzbekistan. Turbotax business fed e file 2012 Yemen. Turbotax business fed e file 2012 The Philippines. Turbotax business fed e file 2012  Note. Turbotax business fed e file 2012 For the Philippines only, the personnel must be deployed in conjunction with Operation Enduring Freedom supporting military operations in the Afghanistan combat zone. Turbotax business fed e file 2012 The Kosovo area. Turbotax business fed e file 2012   By Executive Order No. Turbotax business fed e file 2012 13119, the following locations (including airspace above) were designated as a combat zone beginning March 24, 1999. Turbotax business fed e file 2012 Federal Republic of Yugoslavia (Serbia/Montenegro). Turbotax business fed e file 2012 Albania. Turbotax business fed e file 2012 Kosovo. Turbotax business fed e file 2012 The Adriatic Sea. Turbotax business fed e file 2012 The Ionian Sea—north of the 39th parallel. Turbotax business fed e file 2012 Note. Turbotax business fed e file 2012 The combat zone designation for Montenegro and Kosovo (previously a province within Serbia) under Executive Order 13119 remains in force even though Montenegro and Kosovo became independent nations since EO 13119 was signed. Turbotax business fed e file 2012 Arabian peninsula. Turbotax business fed e file 2012   By Executive Order No. Turbotax business fed e file 2012 12744, the following locations (and airspace above) were designated as a combat zone beginning January 17, 1991. Turbotax business fed e file 2012 The Persian Gulf. Turbotax business fed e file 2012 The Red Sea. Turbotax business fed e file 2012 The Gulf of Oman. Turbotax business fed e file 2012 The part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude. Turbotax business fed e file 2012 The Gulf of Aden. Turbotax business fed e file 2012 The total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates. Turbotax business fed e file 2012 Jordan which is in direct support of the Arabian Peninsula. Turbotax business fed e file 2012 Serving in a Combat Zone You are considered to be serving in a combat zone if you are either assigned on official temporary duty to a combat zone or you qualify for hostile fire/imminent danger pay while in a combat zone. Turbotax business fed e file 2012 Service in a combat zone includes any periods you are absent from duty because of sickness, wounds, or leave. Turbotax business fed e file 2012 If, as a result of serving in a combat zone, a person becomes a prisoner of war or is missing in action, that person is considered to be serving in the combat zone so long as he or she keeps that status for military pay purposes. Turbotax business fed e file 2012 Hospitalized While Serving in a Combat Zone If you are hospitalized while serving in a combat zone, the wound, disease, or injury causing the hospitalization will be presumed to have been incurred while serving in the combat zone unless there is clear evidence to the contrary. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 You are hospitalized for a specific disease in a combat zone where you have been serving for 3 weeks, and the disease for which you are hospitalized has an incubation period of 2 to 4 weeks. Turbotax business fed e file 2012 The disease is presumed to have been incurred while you were serving in the combat zone. Turbotax business fed e file 2012 On the other hand, if the incubation period of the disease is 1 year, the disease would not have been incurred while you were serving in the combat zone. Turbotax business fed e file 2012 Hospitalized After Leaving a Combat Zone In some cases, the wound, disease, or injury may have been incurred while you were serving in the combat zone, even though you were not hospitalized until after you left. Turbotax business fed e file 2012 In that case, you can exclude military pay earned while you are hospitalized as a result of the wound, disease, or injury. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 You were hospitalized for a specific disease 3 weeks after you left the combat zone. Turbotax business fed e file 2012 The incubation period of the disease is from 2 to 4 weeks. Turbotax business fed e file 2012 The disease is presumed to have been incurred while serving in the combat zone. Turbotax business fed e file 2012 Nonqualifying Presence in Combat Zone None of the following types of military service qualify as service in a combat zone. Turbotax business fed e file 2012 Presence in a combat zone while on leave from a duty station located outside the combat zone. Turbotax business fed e file 2012 Passage over or through a combat zone during a trip between two points that are outside a combat zone. Turbotax business fed e file 2012 Presence in a combat zone solely for your personal convenience. Turbotax business fed e file 2012 Service Outside Combat Zone Considered Service in Combat Zone Military service outside a combat zone is considered to be performed in a combat zone if: The Department of Defense designates that the service is in direct support of military operations in the combat zone, and The service qualifies you for special military pay for duty subject to hostile fire or imminent danger. Turbotax business fed e file 2012 Military pay received for this service will qualify for the combat zone exclusion if all of the requirements (other than service in a combat zone) are met and the pay is verifiable by reference to military pay records. Turbotax business fed e file 2012 Amount of Exclusion If you are an enlisted member, warrant officer, or commissioned warrant officer and you serve in a combat zone during any part of a month, you can exclude all of your military pay for that month. Turbotax business fed e file 2012 It should not be included in the wages reported on your Form W-2. Turbotax business fed e file 2012 You also can exclude military pay earned while you are hospitalized as a result of wounds, disease, or injury incurred in the combat zone. Turbotax business fed e file 2012 If you are hospitalized, you cannot exclude any military pay received for any month of service that begins more than 2 years after the end of combat activities in the combat zone. Turbotax business fed e file 2012 Your hospitalization does not have to be in the combat zone. Turbotax business fed e file 2012 If you are a commissioned officer (other than a commissioned warrant officer), you can exclude your pay according to the rules just discussed. Turbotax business fed e file 2012 However, the amount of your exclusion is limited to the highest rate of enlisted pay (plus imminent danger/hostile fire pay you received) for each month during any part of which you served in a combat zone or were hospitalized as a result of your service there. Turbotax business fed e file 2012 Alien Status For tax purposes, an alien is an individual who is not a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen. Turbotax business fed e file 2012 An alien is in one of three categories: resident, nonresident, or dual-status. Turbotax business fed e file 2012 Placement in the correct category is crucial in determining what income to report and what forms to file. Turbotax business fed e file 2012 Under peacetime enlistment rules, you generally cannot enlist in the Armed Forces unless you are a citizen or have been legally admitted to the United States for permanent residence. Turbotax business fed e file 2012 If you are an alien enlistee in the Armed Forces, you are probably a resident alien. Turbotax business fed e file 2012 If, under an income tax treaty, you are considered a resident of a foreign country, see your base legal officer. Turbotax business fed e file 2012 Other aliens who are in the United States only because of military assignments and who have a home outside the United States are nonresident aliens. Turbotax business fed e file 2012 Guam and Puerto Rico have special rules. Turbotax business fed e file 2012 Residents of those areas should contact their taxing authority with their questions. Turbotax business fed e file 2012 Most members of the Armed Forces are U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizens or resident aliens. Turbotax business fed e file 2012 However, if you have questions about your alien status or the alien status of your dependents or spouse, you should read the information in the following paragraphs and see Publication 519. Turbotax business fed e file 2012 Resident Aliens You are considered a resident alien of the United States for tax purposes if you meet either the “green card test” or the “substantial presence test” for the calendar year (January 1–December 31). Turbotax business fed e file 2012 If you meet the substantial presence test for 2014, you did not meet either the green card test or the substantial presence test for 2012 or 2013, and you did not choose to be treated as a resident for part of 2012, you may be able to choose to be treated as a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 resident for part of 2013. Turbotax business fed e file 2012 See First-Year Choice in Publication 519. Turbotax business fed e file 2012 These tests are explained in Publication 519. Turbotax business fed e file 2012 Generally, resident aliens are taxed on their worldwide income and file the same tax forms as U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizens. Turbotax business fed e file 2012 Treating nonresident alien spouse as resident alien. Turbotax business fed e file 2012   A nonresident alien spouse can be treated as a resident alien if all the following conditions are met. Turbotax business fed e file 2012 One spouse is a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien at the end of the tax year. Turbotax business fed e file 2012 That spouse is married to the nonresident alien at the end of the tax year. Turbotax business fed e file 2012 You both choose to treat the nonresident alien spouse as a resident alien. Turbotax business fed e file 2012 Making the choice. Turbotax business fed e file 2012   Both you and your spouse must sign a statement and attach it to your joint return for the first tax year for which the choice applies. Turbotax business fed e file 2012 Include in the statement: A declaration that one spouse was a nonresident alien and the other was a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or resident alien on the last day of the year, A declaration that both spouses choose to be treated as U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 residents for the entire tax year, and The name, address, and taxpayer identification number (social security number or individual taxpayer identification number) of each spouse. Turbotax business fed e file 2012 If the nonresident alien spouse is not eligible to get a social security number, he or she should file Form W-7, Application for IRS Individual Taxpayer Identification Number. Turbotax business fed e file 2012    Once you make this choice, the nonresident alien spouse's worldwide income is subject to U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax. Turbotax business fed e file 2012 If the nonresident alien spouse has substantial foreign income, there may be no advantage to making this choice. Turbotax business fed e file 2012 Ending the choice. Turbotax business fed e file 2012   Once you make this choice, it applies to all later years unless one of the following situations occurs. Turbotax business fed e file 2012 You or your spouse revokes the choice. Turbotax business fed e file 2012 You or your spouse dies. Turbotax business fed e file 2012 You and your spouse become legally separated under a decree of divorce or separate maintenance. Turbotax business fed e file 2012 The Internal Revenue Service ends the choice because you or your spouse kept inadequate records. Turbotax business fed e file 2012 For specific details on these situations, see Publication 519. Turbotax business fed e file 2012   If the choice is ended for any of these reasons, neither spouse can make the choice for any later year. Turbotax business fed e file 2012 Choice not made. Turbotax business fed e file 2012   If you and your nonresident alien spouse do not make this choice: You cannot file a joint return. Turbotax business fed e file 2012 You can file as married filing separately, or head of household if you qualify. Turbotax business fed e file 2012 You can claim an exemption for your nonresident alien spouse if he or she has no gross income for U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax purposes and is not another taxpayer's dependent. Turbotax business fed e file 2012 The nonresident alien spouse generally does not have to file a federal income tax return if he or she had no income from sources in the United States. Turbotax business fed e file 2012 If a return has to be filed, see the next discussion. Turbotax business fed e file 2012 The nonresident alien spouse is not eligible for the earned income credit if he or she has to file a return. Turbotax business fed e file 2012 Nonresident Aliens If you are an alien who does not meet the requirements discussed earlier to be a resident alien, you are a nonresident alien. Turbotax business fed e file 2012 If you are required to file a federal tax return, you must file either Form 1040NR, U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Nonresident Alien Income Tax Return, or Form 1040NR-EZ, U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Income Tax Return for Certain Nonresident Aliens With No Dependents. Turbotax business fed e file 2012 See the form instructions for information on who must file and filing status. Turbotax business fed e file 2012 If you are a nonresident alien, you generally must pay tax on income from sources in the United States. Turbotax business fed e file 2012 Your income from conducting a trade or business in the United States is taxed at graduated U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 tax rates. Turbotax business fed e file 2012 Other income from U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 sources is taxed at a flat 30% (or lower treaty) rate. Turbotax business fed e file 2012 For example, dividends from a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 corporation paid to a nonresident alien generally are subject to a 30% (or lower treaty) rate. Turbotax business fed e file 2012 Dual-Status Aliens You can be both a nonresident and resident alien during the same tax year. Turbotax business fed e file 2012 This usually occurs in the year you arrive in or depart from the United States. Turbotax business fed e file 2012 If you are a dual-status alien, you are taxed on income from all sources for the part of the year you are a resident alien. Turbotax business fed e file 2012 Generally, for the part of the year you are a nonresident alien, you are taxed only on income from sources in the United States. Turbotax business fed e file 2012 Sale of Home You may not have to pay tax on all or part of the gain from the sale of your main home. Turbotax business fed e file 2012 Usually, your main home is the one you live in most of the time. Turbotax business fed e file 2012 It can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Turbotax business fed e file 2012 You generally can exclude up to $250,000 of gain ($500,000, in most cases, if married filing a joint return) realized on the sale or exchange of a main home in 2013. Turbotax business fed e file 2012 The exclusion is allowed each time you sell or exchange a main home, but generally not more than once every 2 years. Turbotax business fed e file 2012 To be eligible, during the 5-year period ending on the date of the sale, you must have owned the home for at least 2 years (the ownership test), and lived in the home as your main home for at least 2 years (the use test). Turbotax business fed e file 2012 Exception to ownership and use tests. Turbotax business fed e file 2012   You can exclude gain, but the maximum amount of gain you can exclude will be reduced if you do not meet the ownership and use tests due to a move to a new permanent duty station. Turbotax business fed e file 2012 5-year test period suspended. Turbotax business fed e file 2012   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on qualified official extended duty as a member of the Armed Forces. Turbotax business fed e file 2012 This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 David bought and moved into a home in 2005. Turbotax business fed e file 2012 He lived in it as his main home for 2½ years. Turbotax business fed e file 2012 For the next 6 years, he did not live in it because he was on qualified official extended duty with the Army. Turbotax business fed e file 2012 He then sold the home at a gain in 2013. Turbotax business fed e file 2012 To meet the use test, David chooses to suspend the 5-year test period for the 6 years he was on qualifying official extended duty. Turbotax business fed e file 2012 This means he can disregard those 6 years. Turbotax business fed e file 2012 Therefore, David's 5-year test period consists of the 5 years before he went on qualifying official extended duty. Turbotax business fed e file 2012 He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period. Turbotax business fed e file 2012 Period of suspension. Turbotax business fed e file 2012   The period of suspension cannot last more than 10 years. Turbotax business fed e file 2012 You cannot suspend the 5-year period for more than one property at a time. Turbotax business fed e file 2012 You can revoke your choice to suspend the 5-year period at any time. Turbotax business fed e file 2012 Qualified official extended duty. Turbotax business fed e file 2012   You are on qualified official extended duty if you serve on extended duty either: At a duty station at least 50 miles from your main home, or While you live in Government quarters under Government orders. Turbotax business fed e file 2012   You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period. Turbotax business fed e file 2012 Property used for rental or business. Turbotax business fed e file 2012   You may be able to exclude your gain from the sale of a home that you have used as a rental property or for business. Turbotax business fed e file 2012 However, you must meet the ownership and use tests discussed in Publication 523. Turbotax business fed e file 2012 Nonqualified use. Turbotax business fed e file 2012   If the sale of your main home results in a gain that is allocated to one or more period(s) of nonqualified use, you cannot exclude that gain from your income. Turbotax business fed e file 2012   Nonqualified use means any period after 2008 when neither you nor your spouse (or your former spouse) used the property as a main home, with certain exceptions. Turbotax business fed e file 2012 For example, a period of nonqualified use does not include any period (not to exceed a total of 10 years) during which you or your spouse is serving on qualified official extended duty. Turbotax business fed e file 2012 Loss. Turbotax business fed e file 2012   You cannot deduct a loss from the sale of your main home. Turbotax business fed e file 2012 More information. Turbotax business fed e file 2012   For more information, see Publication 523. Turbotax business fed e file 2012 Foreclosures There may be tax consequences as a result of compensation payments for foreclosures. Turbotax business fed e file 2012 Payments made for violations of the Service Members Civil Relief Act (SCRA). Turbotax business fed e file 2012   All service members who received a settlement payment reported on a Form 1099 may need to report the amount on their tax return. Turbotax business fed e file 2012 Generally, you must include settlement payments in income. Turbotax business fed e file 2012 However, the tax treatment of settlement payments will depend on the facts and circumstances. Turbotax business fed e file 2012 Lump Sum Portion of Settlement Payment. Turbotax business fed e file 2012    Generally, you must include the lump sum payment in gross income. Turbotax business fed e file 2012 In limited circumstances you may be able to exclude part or all of the lump sum payment from gross income. Turbotax business fed e file 2012 For example, you may qualify to exclude part or all of the payment from gross income if you can show that the payment was made to reimburse specific nondeductible expenses (such as living expenses) you incurred because of the SCRA violation. Turbotax business fed e file 2012 Interest Payment on Lump Sum Portion of Settlement Payment. Turbotax business fed e file 2012    You must include any interest on the lump sum portion of your settlement payment in your income. Turbotax business fed e file 2012 Lost Equity Portion of Settlement Payment. Turbotax business fed e file 2012    If you lost your main home in foreclosure, you should treat the lost equity payment as an additional amount you received on the foreclosure of the home. Turbotax business fed e file 2012 You will have a gain on the foreclosure only if the sum of the lost equity payment and the value of the main home at foreclosure is more than what you paid for the home. Turbotax business fed e file 2012 In many cases, this gain may be excluded from income. Turbotax business fed e file 2012 For more information on the rules for excluding all or part of any gain from the sale (including a foreclosure) of a main home, see Pub. Turbotax business fed e file 2012 523, Selling Your Home. Turbotax business fed e file 2012 The rules that apply to a lost equity payment you received for the foreclosure of a property that was not your main home are different. Turbotax business fed e file 2012    To find rules for reporting gain or loss on the foreclosure of property that was not your main home, see Pub. Turbotax business fed e file 2012 544, Sales and Other Dispositions of Assets. Turbotax business fed e file 2012 Interest Payment on Lost Equity Portion of Settlement Payment. Turbotax business fed e file 2012    You must include any interest on the lost equity portion of your settlement payment in your income. Turbotax business fed e file 2012 Itemized Deductions To figure your taxable income, you must subtract either your standard deduction or your itemized deductions from adjusted gross income. Turbotax business fed e file 2012 For information on the standard deduction, see Publication 501. Turbotax business fed e file 2012 Itemized deductions are figured on Schedule A (Form 1040). Turbotax business fed e file 2012 This chapter discusses miscellaneous itemized deductions of particular interest to members of the Armed Forces. Turbotax business fed e file 2012 For information on other itemized deductions, see the publications listed below. Turbotax business fed e file 2012 Publication 502, Medical and Dental Expenses. Turbotax business fed e file 2012 Publication 526, Charitable Contributions. Turbotax business fed e file 2012 Publication 547, Casualties, Disasters, and Thefts. Turbotax business fed e file 2012 Publication 550, Investment Income and Expenses. Turbotax business fed e file 2012 You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Turbotax business fed e file 2012 For information on deductions that are not subject to the 2% limit, see Publication 529. Turbotax business fed e file 2012 Employee Business Expenses Deductible employee business expenses generally are miscellaneous itemized deductions subject to the 2% limit. Turbotax business fed e file 2012 Certain employee business expenses are deductible as adjustments to income. Turbotax business fed e file 2012 For information on many employee business expenses, see Publication 463. Turbotax business fed e file 2012 Generally, you must file Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses, to claim these expenses. Turbotax business fed e file 2012 You do not have to file Form 2106 or Form 2106-EZ if you are claiming only unreimbursed expenses for uniforms, professional society dues, and work-related educational expenses (all discussed later). Turbotax business fed e file 2012 You can deduct these expenses directly on Schedule A (Form 1040). Turbotax business fed e file 2012 Reimbursement. Turbotax business fed e file 2012   Generally, to receive advances, reimbursements, or other allowances from the government, you must adequately account for your expenses and return any excess reimbursement. Turbotax business fed e file 2012 Your reimbursed expenses are not deductible. Turbotax business fed e file 2012   If your expenses are more than your reimbursement, the excess expenses are deductible (subject to the 2% limit) if you can prove them. Turbotax business fed e file 2012 You must file Form 2106 to report these expenses. Turbotax business fed e file 2012   You can use the shorter Form 2106-EZ if you meet all three of the following conditions. Turbotax business fed e file 2012 You are an employee deducting expenses related to your job. Turbotax business fed e file 2012 You were not reimbursed by your employer for your expenses. Turbotax business fed e file 2012 (Amounts included in box 1 of Form W-2 are not considered reimbursements. Turbotax business fed e file 2012 ) If you claim car expenses, you use the standard mileage rate. Turbotax business fed e file 2012    For 2013, the standard mileage rate is 56. Turbotax business fed e file 2012 5 cents a mile for all business miles driven. Turbotax business fed e file 2012 This rate is adjusted periodically. Turbotax business fed e file 2012 Travel Expenses You can deduct unreimbursed travel expenses only if they are incurred while you are traveling away from home. Turbotax business fed e file 2012 If you are a member of the U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Turbotax business fed e file 2012 You cannot deduct your expenses for meals and lodging while at your permanent duty station. Turbotax business fed e file 2012 You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Turbotax business fed e file 2012 A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a home aboard ship for travel expense purposes. Turbotax business fed e file 2012 To be deductible, your travel expenses must be work related. Turbotax business fed e file 2012 You cannot deduct any expenses for personal travel, such as visits to family while on furlough, leave, or liberty. Turbotax business fed e file 2012 Away from home. Turbotax business fed e file 2012   Home is your permanent duty station (which can be a ship or base), regardless of where you or your family live. Turbotax business fed e file 2012 You are away from home if you are away from your permanent duty station substantially longer than an ordinary day's work and you need to get sleep or rest to meet the demands of your work while away from home. Turbotax business fed e file 2012   Examples of deductible travel expenses include: Expenses for business-related meals (generally limited to 50% of your unreimbursed cost), lodging, taxicabs, business telephone calls, tips, laundry, and dry cleaning while you are away from home on temporary duty or temporary additional duty, and Expenses of carrying out official business while on “No Cost” orders. Turbotax business fed e file 2012    You cannot deduct any expenses for travel away from home if the temporary assignment in a single location is realistically expected to last (and does in fact last) for more than 1 year. Turbotax business fed e file 2012 This rule may not apply if you are participating in a federal crime investigation or prosecution. Turbotax business fed e file 2012 For more information, see Publication 463 and the Form 2106 instructions. Turbotax business fed e file 2012 Transportation Expenses These expenses include the ordinary and necessary costs of: Getting from one workplace to another when you are not away from home, Going to a business meeting away from your regular workplace, and Getting from your home to a temporary workplace when you have a regular place of work. Turbotax business fed e file 2012 These expenses include the costs of transportation by air, bus, rail, taxi, and driving and maintaining your car. Turbotax business fed e file 2012 Transportation expenses incurred while traveling away from home are included with your travel expenses, discussed earlier. Turbotax business fed e file 2012 However, if you use your car while traveling away from home overnight, see the rules in chapter 4 of Publication 463 to figure your car expense deduction. Turbotax business fed e file 2012 If you must go from one workplace to another while on duty (for example, as a courier or to attend meetings) without being away from home, your unreimbursed transportation expenses are deductible. Turbotax business fed e file 2012 However, the expenses of getting to and from your regular place of work (commuting) are not deductible. Turbotax business fed e file 2012 Temporary work location. Turbotax business fed e file 2012   If you have one or more regular places of business away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location. Turbotax business fed e file 2012   Generally, if your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary. Turbotax business fed e file 2012   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Turbotax business fed e file 2012 If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Turbotax business fed e file 2012    If you do not have a regular place of business, but you ordinarily work in the metropolitan area where you live, you can deduct daily transportation expenses between your home and a temporary work site outside your metropolitan area. Turbotax business fed e file 2012 However, you cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Turbotax business fed e file 2012 These are nondeductible commuting costs. Turbotax business fed e file 2012 Armed Forces reservists. Turbotax business fed e file 2012   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Turbotax business fed e file 2012 You can deduct the expense of getting from one workplace to the other. Turbotax business fed e file 2012 You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Turbotax business fed e file 2012 In this case, your transportation generally is a nondeductible commuting expense. Turbotax business fed e file 2012 However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Turbotax business fed e file 2012   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Turbotax business fed e file 2012 If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Turbotax business fed e file 2012 See Armed Forces Reservists under Adjustments to Income, earlier. Turbotax business fed e file 2012 Uniforms You usually cannot deduct the expenses for uniform cost and upkeep. Turbotax business fed e file 2012 Generally, you must wear uniforms when on duty and you are allowed to wear them when off duty. Turbotax business fed e file 2012 If military regulations prohibit you from wearing certain uniforms when off duty, you can deduct the cost and upkeep of the uniforms, but you must reduce your expenses by any allowance or reimbursement you receive. Turbotax business fed e file 2012 Unreimbursed expenses for the cost and upkeep of the following articles are deductible. Turbotax business fed e file 2012 Military battle dress uniforms and utility uniforms that you cannot wear when off duty. Turbotax business fed e file 2012 Articles not replacing regular clothing, including insignia of rank, corps devices, epaulets, aiguillettes, and swords. Turbotax business fed e file 2012 Reservists' uniforms if you can wear the uniform only while performing duties as a reservist. Turbotax business fed e file 2012 Professional Dues You can deduct unreimbursed dues paid to professional societies directly related to your military position. Turbotax business fed e file 2012 However, you cannot deduct amounts paid to an officers' club or a noncommissioned officers' club. Turbotax business fed e file 2012 Example. Turbotax business fed e file 2012 Lieutenant Margaret Allen, an electrical engineer at Maxwell Air Force Base, can deduct professional dues paid to the American Society of Electrical Engineers. Turbotax business fed e file 2012 Educational Expenses You can deduct the unreimbursed costs of qualifying work-related education. Turbotax business fed e file 2012 This is education that meets at least one of the following two tests. Turbotax business fed e file 2012 The education is required by your employer or the law to keep your present salary, status, or job. Turbotax business fed e file 2012 The required education must serve a bona fide business purpose of your employer. Turbotax business fed e file 2012 The education maintains or improves skills needed in your present work. Turbotax business fed e file 2012 However, even if the education meets one or both of the above tests, it is not qualifying education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. Turbotax business fed e file 2012 You can deduct the expenses for qualifying work-related education even if the education could lead to a degree. Turbotax business fed e file 2012 Example 1. Turbotax business fed e file 2012 Lieutenant Colonel Mason has a degree in financial management and is in charge of base finances at her post of duty. Turbotax business fed e file 2012 She took an advanced finance course. Turbotax business fed e file 2012 She already meets the minimum qualifications for her job. Turbotax business fed e file 2012 By taking the course, she is improving skills in her current position. Turbotax business fed e file 2012 The course does not qualify her for a new trade or business. Turbotax business fed e file 2012 She can deduct educational expenses that are more than the educational allowance she received. Turbotax business fed e file 2012 Example 2. Turbotax business fed e file 2012 Major Williams worked in the military base legal office as a legal intern. Turbotax business fed e file 2012 He was placed in excess leave status by his employer to attend law school. Turbotax business fed e file 2012 He paid all his educational expenses and was not reimbursed. Turbotax business fed e file 2012 After obtaining his law degree, he passed the state bar exam and worked as a judge advocate. Turbotax business fed e file 2012 His educational expenses are not deductible because the law degree qualified him for a new trade or business, even though the education maintained and improved his skills in his work. Turbotax business fed e file 2012 Travel to obtain education. Turbotax business fed e file 2012   If your work-related education qualifies, you can deduct the costs of travel, including meals (subject to the 50% limit), and lodging, if the main purpose of the trip is to obtain the education. Turbotax business fed e file 2012   You cannot deduct the cost of travel that is itself a form of education, even if it is directly related to your duties in your work or business. Turbotax business fed e file 2012 Transportation for education. Turbotax business fed e file 2012   If your work-related education qualifies for a deduction, you can deduct the costs of transportation to obtain that education. Turbotax business fed e file 2012 However, you cannot deduct the cost of services provided in kind, such as base-provided transportation to or from class. Turbotax business fed e file 2012 Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Turbotax business fed e file 2012   If you need more information on educational expenses, see Publication 970. Turbotax business fed e file 2012 Repayments If you had to repay to your employer an amount that you included in your income in an earlier year, you may be able to deduct the repaid amount from your income for the year in which you repaid it. Turbotax business fed e file 2012 Repayment of $3,000 or less. Turbotax business fed e file 2012   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Turbotax business fed e file 2012 If you reported it as wages, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Turbotax business fed e file 2012 Repayment over $3,000. Turbotax business fed e file 2012   If the amount you repaid was more than $3,000, see Repayments in Publication 525. Turbotax business fed e file 2012 Credits After you have figured your taxable income and tax liability, you can determine if you are entitled to any tax credits. Turbotax business fed e file 2012 This publication discusses the first-time homebuyer credit, child tax credit, earned income credit, and credit for excess social security tax withheld. Turbotax business fed e file 2012 For information on other credits, see your tax form instructions. Turbotax business fed e file 2012 First-Time Homebuyer Credit The first-time homebuyer credit is not available for homes purchased after 2011. Turbotax business fed e file 2012 In 2011, this credit had already expired for most taxpayers, however, certain members of the uniformed services and Foreign Service and certain employees of the intelligence community could claim the credit for homes purchased in 2011. Turbotax business fed e file 2012 If you bought the home (and claimed the credit) after 2008, you generally must repay the credit if you dispose of the home or the home stops being your main home within the 36-month period beginning on the purchase date. Turbotax business fed e file 2012 If the home continues to be your main home for at least 36 months beginning on the purchase date, you do not have to repay any of the credit. Turbotax business fed e file 2012 If you bought your home in 2008, you generally must repay the credit over a 15-year period in 15 equal installments. Turbotax business fed e file 2012 For more information, see Form 5405, Repayment of the First-Time Homebuyer Credit, and its instructions. Turbotax business fed e file 2012 Child Tax Credit The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children. Turbotax business fed e file 2012 The additional child tax credit is a credit you may be able to take if you are not able to claim the full amount of the child tax credit. Turbotax business fed e file 2012 The child tax credit is not the same as the credit for child and dependent care expenses. Turbotax business fed e file 2012 See Publication 503 for information on the credit for child and dependent care expenses. Turbotax business fed e file 2012 Qualifying Child A qualifying child for purposes of the child tax credit is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was under age 17 at the end of 2013, Did not provide over half of his or her own support for 2013, Lived with you for more than half of 2013 (see Exceptions to time lived with you, later), Is claimed as a dependent on your return, Does not file a joint return for the year (or files it only as a claim for refund), and Was a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen, a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 national, or a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 resident alien. Turbotax business fed e file 2012 If the child was adopted, see Adopted child . Turbotax business fed e file 2012 For each qualifying child you must check the box on Form 1040 or Form 1040A, line 6c, column (4). Turbotax business fed e file 2012 Exceptions to time lived with you. Turbotax business fed e file 2012   A child is considered to have lived with you for all of 2013 if the child was born or died in 2013 and your home was this child's home for the entire time he or she was alive. Turbotax business fed e file 2012 Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. Turbotax business fed e file 2012   There are also exceptions for kidnapped children and children of divorced or separated parents. Turbotax business fed e file 2012 For details, see Publication 501. Turbotax business fed e file 2012 Qualifying child of more than one person. Turbotax business fed e file 2012   A special rule applies if your qualifying child is the qualifying child of more than one person. Turbotax business fed e file 2012 For details, see Publication 501. Turbotax business fed e file 2012 Adopted child. Turbotax business fed e file 2012   An adopted child is always treated as your own child. Turbotax business fed e file 2012 An adopted child includes a child lawfully placed with you for legal adoption. Turbotax business fed e file 2012   If you are a U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 citizen or U. Turbotax business fed e file 2012 S. Turbotax business fed e file 2012 national and your adopted child lived with you as a member of your household all year, that child meets condition (7) above to be a qualifying child for the child tax credit. Turbotax business fed e file 2012 Amount of Credit The maximum amount you can claim for the credit is $1,000 for each qualifying child. Turbotax business fed e file 2012 Limits on the credit. Turbotax business fed e file 2012   You must reduce your child tax credit if either (1) or (2), below, applies. Turbotax business fed e file 2012 The amount on Form 1040, line 46, or Form 1040A, line 28, is less than the credit. Turbotax business fed e file 2012 If the amount is zero, you cannot take this credit because there is no tax to reduce. Turbotax business fed e file 2012 However, you may be able to take the additional child tax credit. Turbotax business fed e file 2012 See Additional Child Tax Credit , later. Turbotax business fed e file 2012 Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. Turbotax business fed e file 2012 Married filing jointly — $110,000. Turbotax business fed e file 2012 Single, head of household,  or qualifying widow(er) — $75,000. Turbotax business fed e file 2012 Married filing separately — $55,000. Turbotax business fed e file 2012 Modified AGI. Turbotax business fed e file 2012   For purposes of the child tax credit, your modified AGI is the amount on Form 1040, line 38, or Form 1040A, line 22, plus the following amounts that may apply to you. Turbotax business fed e file 2012 Any amount excluded from income because of the exclusion of income from Puerto Rico. Turbotax business fed e file 2012 Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. Turbotax business fed e file 2012 Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. Turbotax business fed e file 2012 Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. Turbotax business fed e file 2012   If you do not have any of the above, your modified AGI is the same as your AGI. Turbotax business fed e file 2012 Claiming the Credit To claim the child tax credit, you must file Form 1040 or Form 1040A. Turbotax business fed e file 2012 For more information on the child tax credit, see the instructions for Form 1040 or Form 1040A. Turbotax business fed e file 2012 Also attach Schedule 8812, Child Tax Credit, if required. Turbotax business fed e file 2012 Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. Turbotax business fed e file 2012 The additional child tax credit may give you a refund even if you do not owe any tax. Turbotax business fed e file 2012 For more information, see the instructions for Form 1040 or Form 1040A, and Schedule 8812. Turbotax business fed e file 2012 Earned Income Credit The earned income credit (EIC) is a cr