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Turbotax free Publication 597 - Introductory Material Table of Contents Introduction Introduction This publication provides information on the income tax treaty between the United States and Canada. Turbotax free It discusses a number of treaty provisions that often apply to U. Turbotax free S. Turbotax free citizens or residents who may be liable for Canadian tax. Turbotax free Treaty provisions are generally reciprocal (the same rules apply to both treaty countries). Turbotax free Therefore, a Canadian resident who receives income from the United States may refer to this publication to see if a treaty provision may affect the tax to be paid to the United States. Turbotax free This publication does not deal with Canadian income tax laws; nor does it provide Canada's interpretation of treaty articles, definitions, or specific terms not defined in the treaty itself. Turbotax free The United States—Canada income tax treaty was signed on September 26, 1980. Turbotax free It has been amended by five protocols, the most recent of which generally became effective January 1, 2009. Turbotax free In this publication, the term “article” refers to the particular article of the treaty, as amended. Turbotax free Prev  Up  Next   Home   More Online Publications
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Understanding Your CP32 Notice

We sent you a replacement refund check.


What you need to do

  • If you have the expired check, please destroy it.

You may want to...

  • Call 1-800-TAX-FORM (1-800-829-3676) to order forms and publications.

Answers to Common Questions

When will I receive the replacement check?
You should receive the replacement check within 30 days.

What do I need to do to get my refund through direct deposit next year?
When filing your tax return, complete the requested banking information in the "Refund" section of your tax form if you want to direct deposit the entire amount into one account. If you want to deposit into more than one account, you must file Form 8888, Direct Deposit of Refund to More Than One Account, with your return.

Since my refund check was returned, can I request that you mail it to my work address instead?
Refund checks are mailed only to the address of record, which is the address provided on the tax return or the result of a permanent address change request submitted after the return is filed.

I filed jointly, but my spouse and I are now divorced. Where will you send the refund? Can you send us two checks?
A refund check is mailed to the address of record, which is the address provided on the tax return or the result of a permanent address change request submitted after the return is filed. We will send one refund check listing both you and your spouse's names. If you wish to have the refund split and issued in two checks, you must return the uncashed refund check and a copy of your divorce decree showing how the refund is to be allocated.


Tips for next year

To receive your refund more quickly, consider requesting your refund through direct deposit. You can even request that your refund be distributed to separate accounts, such as checking, savings, or retirement accounts. To request this, use Form 8888, Direct Deposit of Refund to More Than One Account.

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

Page Last Reviewed or Updated: 03-Mar-2014

How to get help

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

The Turbotax Free

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