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2011 Taxact Online

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2011 Taxact Online

2011 taxact online Publication 501 - Main Content Table of Contents Who Must FileSelf-employed persons. 2011 taxact online Filing Requirements for Most Taxpayers Dependents Other Situations Who Should File Filing StatusMarital Status Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) With Dependent Child ExemptionsForm 1040EZ filers. 2011 taxact online Form 1040A filers. 2011 taxact online Form 1040 filers. 2011 taxact online More information. 2011 taxact online Personal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. 2011 taxact online Taxpayer identification numbers for aliens. 2011 taxact online Taxpayer identification numbers for adoptees. 2011 taxact online Standard DeductionStandard Deduction Amount Standard Deduction for Dependents Who Should Itemize How To Get Tax HelpLow Income Taxpayer Clinics Who Must File If you are a U. 2011 taxact online S. 2011 taxact online citizen or resident alien, whether you must file a federal income tax return depends on your gross income, your filing status, your age, and whether you are a dependent. 2011 taxact online For details, see Table 1 and Table 2. 2011 taxact online You also must file if one of the situations described in Table 3 applies. 2011 taxact online The filing requirements apply even if you owe no tax. 2011 taxact online Table 1. 2011 taxact online 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. 2011 taxact online . 2011 taxact online . 2011 taxact online AND at the end of 2013 you were. 2011 taxact online . 2011 taxact online . 2011 taxact online * THEN file a return if your gross income was at least. 2011 taxact online . 2011 taxact online . 2011 taxact online ** single under 65  $10,000 65 or older $11,500 head of household under 65 $12,850 65 or older $14,350 married, filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married, filing separately any age  $3,900 qualifying widow(er) with dependent child under 65 $16,100 65 or older $17,300 * If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. 2011 taxact online ** Gross income means all income you receive in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). 2011 taxact online Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). 2011 taxact online If (a) or (b) applies, see the Form 1040 instructions to figure the taxable part of social security benefits you must include in gross income. 2011 taxact online Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. 2011 taxact online Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. 2011 taxact online But in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. 2011 taxact online *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. 2011 taxact online You may have to pay a penalty if you are required to file a return but fail to do so. 2011 taxact online If you willfully fail to file a return, you may be subject to criminal prosecution. 2011 taxact online For information on what form to use — Form 1040EZ, Form 1040A, or Form 1040 — see the instructions for your tax return. 2011 taxact online Gross income. 2011 taxact online    Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. 2011 taxact online If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. 2011 taxact online For a list of community property states, see Community property states under Married Filing Separately, later. 2011 taxact online Self-employed persons. 2011 taxact online    If you are self-employed in a business that provides services (where products are not a factor), your gross income from that business is the gross receipts. 2011 taxact online If you are self-employed in a business involving manufacturing, merchandising, or mining, your gross income from that business is the total sales minus the cost of goods sold. 2011 taxact online In either case, you must add any income from investments and from incidental or outside operations or sources. 2011 taxact online    You must file Form 1040 if you owe any self-employment tax. 2011 taxact online Filing status. 2011 taxact online    Your filing status generally depends on whether you are single or married. 2011 taxact online Whether you are single or married is determined at the end of your tax year, which is December 31 for most taxpayers. 2011 taxact online Filing status is discussed in detail later in this publication. 2011 taxact online Age. 2011 taxact online    Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. 2011 taxact online For 2013, you are 65 or older if you were born before January 2, 1949. 2011 taxact online Filing Requirements for Most Taxpayers You must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1. 2011 taxact online Dependents should see Table 2 instead. 2011 taxact online Deceased Persons You must file an income tax return for a decedent (a person who died) if both of the following are true. 2011 taxact online You are the surviving spouse, executor, administrator, or legal representative. 2011 taxact online The decedent met the filing requirements described in this publication at the time of his or her death. 2011 taxact online For more information, see Final Income Tax Return for Decedent — Form 1040 in Publication 559. 2011 taxact online Table 2. 2011 taxact online 2013 Filing Requirements for Dependents See Exemptions for Dependents to find out if you are a dependent. 2011 taxact online If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. 2011 taxact online  In this table, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. 2011 taxact online It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. 2011 taxact online Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. 2011 taxact online Gross income is the total of your unearned and earned income. 2011 taxact online If your gross income was $3,900 or more, you usually cannot be claimed as a dependent unless you are a qualifying child. 2011 taxact online For details, see Exemptions for Dependents. 2011 taxact online Single dependents—Were you either age 65 or older or blind? □ No. 2011 taxact online You must file a return if any of the following apply. 2011 taxact online Your unearned income was more than $1,000. 2011 taxact online Your earned income was more than $6,100. 2011 taxact online Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750) plus $350. 2011 taxact online     □ Yes. 2011 taxact online You must file a return if any of the following apply. 2011 taxact online Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). 2011 taxact online Your earned income was more than $7,600 ($9,100 if 65 or older and blind). 2011 taxact online Your gross income was more than the larger of—  $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). 2011 taxact online     Married dependents—Were you either age 65 or older or blind? □ No. 2011 taxact online You must file a return if any of the following apply. 2011 taxact online Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 2011 taxact online Your unearned income was more than $1,000. 2011 taxact online Your earned income was more than $6,100. 2011 taxact online Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750 plus $350. 2011 taxact online     □ Yes. 2011 taxact online You must file a return if any of the following apply. 2011 taxact online Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 2011 taxact online Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). 2011 taxact online Your earned income was more than $7,300 ($8,500 if 65 or older and blind). 2011 taxact online Your gross income was more than the larger of— $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). 2011 taxact online     U. 2011 taxact online S. 2011 taxact online Citizens or Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you earned or received abroad, including any income you can exclude under the foreign earned income exclusion. 2011 taxact online For more information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. 2011 taxact online S. 2011 taxact online Citizens and Resident Aliens Abroad. 2011 taxact online Residents of Puerto Rico If you are a U. 2011 taxact online S. 2011 taxact online citizen and also a bona fide resident of Puerto Rico, you generally must file a U. 2011 taxact online S. 2011 taxact online income tax return for any year in which you meet the income requirements. 2011 taxact online This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. 2011 taxact online If you are a bona fide resident of Puerto Rico for the whole year, your U. 2011 taxact online S. 2011 taxact online gross income does not include income from sources within Puerto Rico. 2011 taxact online It does, however, include any income you received for your services as an employee of the United States or any U. 2011 taxact online S. 2011 taxact online agency. 2011 taxact online If you receive income from Puerto Rican sources that is not subject to U. 2011 taxact online S. 2011 taxact online tax, you must reduce your standard deduction, which reduces the amount of income you can have before you must file a U. 2011 taxact online S. 2011 taxact online income tax return. 2011 taxact online For more information, see Publication 570, Tax Guide for Individuals With Income From U. 2011 taxact online S. 2011 taxact online Possessions. 2011 taxact online Individuals With Income From U. 2011 taxact online S. 2011 taxact online Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. 2011 taxact online S. 2011 taxact online Virgin Islands, special rules may apply when determining whether you must file a U. 2011 taxact online S. 2011 taxact online federal income tax return. 2011 taxact online In addition, you may have to file a return with the individual possession government. 2011 taxact online See Publication 570 for more information. 2011 taxact online Dependents A person who is a dependent may still have to file a return. 2011 taxact online It depends on his or her earned income, unearned income, and gross income. 2011 taxact online For details, see Table 2. 2011 taxact online A dependent must also file if one of the situations described in Table 3 applies. 2011 taxact online Responsibility of parent. 2011 taxact online    If a dependent child must file an income tax return but cannot file due to age or any other reason, a parent, guardian, or other legally responsible person must file it for the child. 2011 taxact online If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. 2011 taxact online ” Earned income. 2011 taxact online    Earned income includes salaries, wages, professional fees, and other amounts received as pay for work you actually perform. 2011 taxact online Earned income (only for purposes of filing requirements and the standard deduction) also includes any part of a scholarship that you must include in your gross income. 2011 taxact online See chapter 1 of Publication 970, Tax Benefits for Education, for more information on taxable and nontaxable scholarships. 2011 taxact online Child's earnings. 2011 taxact online    Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. 2011 taxact online This is true even if under local law the child's parent has the right to the earnings and may actually have received them. 2011 taxact online But if the child does not pay the tax due on this income, the parent is liable for the tax. 2011 taxact online Unearned income. 2011 taxact online    Unearned income includes income such as interest, dividends, and capital gains. 2011 taxact online Trust distributions of interest, dividends, capital gains, and survivor annuities are also considered unearned income. 2011 taxact online Election to report child's unearned income on parent's return. 2011 taxact online    You may be able to include your child's interest and dividend income on your tax return. 2011 taxact online If you do this, your child will not have to file a return. 2011 taxact online To make this election, all of the following conditions must be met. 2011 taxact online Your child was under age 19 (or under age 24 if a student) at the end of 2013. 2011 taxact online (A child born on January 1, 1995, is considered to be age 19 at the end of 2013; you cannot make the election for this child unless the child was a student. 2011 taxact online Similarly, a child born on January 1, 1990, is considered to be age 24 at the end of 2013; you cannot make the election for this child. 2011 taxact online ) Your child had gross income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). 2011 taxact online The interest and dividend income was less than $10,000. 2011 taxact online Your child is required to file a return for 2013 unless you make this election. 2011 taxact online Your child does not file a joint return for 2013. 2011 taxact online No estimated tax payment was made for 2013 and no 2012 overpayment was applied to 2013 under your child's name and social security number. 2011 taxact online No federal income tax was withheld from your child's income under the backup withholding rules. 2011 taxact online You are the parent whose return must be used when making the election to report your child's unearned income. 2011 taxact online   For more information, see Form 8814 and Parent's Election To Report Child's Interest and Dividends in Publication 929. 2011 taxact online Other Situations You may have to file a tax return even if your gross income is less than the amount shown in Table 1 or Table 2 for your filing status. 2011 taxact online See Table 3 for those other situations when you must file. 2011 taxact online Table 3. 2011 taxact online Other Situations When You Must File a 2013 Return If any of the four conditions listed below applied to you for 2013, you must file a return. 2011 taxact online 1. 2011 taxact online You owe any special taxes, including any of the following. 2011 taxact online   a. 2011 taxact online Alternative minimum tax. 2011 taxact online (See Form 6251. 2011 taxact online )   b. 2011 taxact online Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. 2011 taxact online (See Publication 590, Individual Retirement Arrangements (IRAs), and Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. 2011 taxact online ) But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. 2011 taxact online   c. 2011 taxact online Social security or Medicare tax on tips you did not report to your employer (see Publication 531, Reporting Tip Income) or on wages you received from an employer who did not withhold these taxes (see Form 8919). 2011 taxact online   d. 2011 taxact online Write-in taxes, including uncollected social security, Medicare, or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional tax on health savings accounts. 2011 taxact online (See Publication 531, Publication 969, and the Form 1040 instructions for line 60. 2011 taxact online )   e. 2011 taxact online Household employment taxes. 2011 taxact online But if you are filing a return only because you owe these taxes, you can file Schedule H (Form 1040) by itself. 2011 taxact online   f. 2011 taxact online Recapture taxes. 2011 taxact online (See the Form 1040 instructions for lines 44, 59b, and 60. 2011 taxact online ) 2. 2011 taxact online You (or your spouse if filing jointly) received Archer MSA, Medicare Advantage MSA, or health savings account distributions. 2011 taxact online 3. 2011 taxact online You had net earnings from self-employment of at least $400. 2011 taxact online (See Schedule SE (Form 1040) and its instructions. 2011 taxact online ) 4. 2011 taxact online You had wages of $108. 2011 taxact online 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. 2011 taxact online (See Schedule SE (Form 1040) and its instructions. 2011 taxact online ) Who Should File Even if you do not have to file, you should file a tax return if you can get money back. 2011 taxact online For example, you should file if one of the following applies. 2011 taxact online You had income tax withheld from your pay. 2011 taxact online You made estimated tax payments for the year or had any of your overpayment for last year applied to this year's estimated tax. 2011 taxact online You qualify for the earned income credit. 2011 taxact online See Publication 596, Earned Income Credit (EIC), for more information. 2011 taxact online You qualify for the additional child tax credit. 2011 taxact online See the instructions for the tax form you file (Form 1040 or 1040A) for more information. 2011 taxact online You qualify for the refundable American opportunity education credit. 2011 taxact online See Form 8863, Education Credits. 2011 taxact online You qualify for the health coverage tax credit. 2011 taxact online For information about this credit, see Form 8885, Health Coverage Tax Credit. 2011 taxact online You qualify for the credit for federal tax on fuels. 2011 taxact online See Form 4136, Credit for Federal Tax Paid on Fuels. 2011 taxact online Form 1099-B received. 2011 taxact online    Even if you are not required to file a return, you should consider filing if all of the following apply. 2011 taxact online You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement). 2011 taxact online The amount in box 2a of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement in Table 1 or Table 2 that applies to you. 2011 taxact online Box 3 of Form 1099-B (or substitute statement) is blank. 2011 taxact online In this case, filing a return may keep you from getting a notice from the IRS. 2011 taxact online Filing Status You must determine your filing status before you can determine whether you must file a tax return, your standard deduction (discussed later), and your tax. 2011 taxact online You also use your filing status to determine whether you are eligible to claim certain other deductions and credits. 2011 taxact online There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. 2011 taxact online If more than one filing status applies to you, choose the one that will give you the lowest tax. 2011 taxact online Marital Status In general, your filing status depends on whether you are considered unmarried or married. 2011 taxact online Unmarried persons. 2011 taxact online    You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. 2011 taxact online   State law governs whether you are married or legally separated under a divorce or separate maintenance decree. 2011 taxact online Divorced persons. 2011 taxact online    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. 2011 taxact online Divorce and remarriage. 2011 taxact online    If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. 2011 taxact online Annulled marriages. 2011 taxact online    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. 2011 taxact online You must file amended returns (Form 1040X) claiming single or head of household status for all tax years that are affected by the annulment and not closed by the statute of limitations for filing a tax return. 2011 taxact online Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. 2011 taxact online If you filed your original tax return early (for example, March 1), your return is considered filed on the due date (generally April 15). 2011 taxact online However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. 2011 taxact online Head of household or qualifying widow(er) with dependent child. 2011 taxact online    If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. 2011 taxact online See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. 2011 taxact online Married persons. 2011 taxact online    If you are considered married, you and your spouse can file a joint return or separate returns. 2011 taxact online Considered married. 2011 taxact online    You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. 2011 taxact online You are married and living together. 2011 taxact online You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. 2011 taxact online You are married and living apart but not legally separated under a decree of divorce or separate maintenance. 2011 taxact online You are separated under an interlocutory (not final) decree of divorce. 2011 taxact online Same-sex marriage. 2011 taxact online    For federal tax purposes, individuals of the same sex are married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. 2011 taxact online The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. 2011 taxact online However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not called a marriage under state (or foreign) law are not married for federal tax purposes. 2011 taxact online   The word “state” as used here includes the District of Columbia, Puerto Rico, and U. 2011 taxact online S. 2011 taxact online territories and possessions. 2011 taxact online It means any domestic jurisdiction that has the legal authority to sanction marriages. 2011 taxact online The term “foreign country” means any foreign jurisdiction that has the legal authority to sanction marriages. 2011 taxact online   If individuals of the same sex are married, they generally must use the married filing jointly or married filing separately filing status. 2011 taxact online However, if they did not live together during the last 6 months of the year, one or both of them may be able to use the head of household filing status, as explained later. 2011 taxact online   For more details, see Answers to Frequently Asked Questions For Individuals of the Same Sex Who Are Married Under State Law on IRS. 2011 taxact online gov. 2011 taxact online Spouse died during the year. 2011 taxact online    If your spouse died during the year, you are considered married for the whole year for filing status purposes. 2011 taxact online   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. 2011 taxact online For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . 2011 taxact online   If you remarried before the end of the tax year, you can file a joint return with your new spouse. 2011 taxact online Your deceased spouse's filing status is married filing separately for that year. 2011 taxact online Married persons living apart. 2011 taxact online    If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. 2011 taxact online If you qualify to file as head of household instead of as married filing separately, your standard deduction will be higher. 2011 taxact online Also, your tax may be lower, and you may be able to claim the earned income credit. 2011 taxact online See Head of Household , later. 2011 taxact online Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. 2011 taxact online To determine your marital status, see Marital Status , earlier. 2011 taxact online Widow(er). 2011 taxact online    Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. 2011 taxact online You may, however, be able to use another filing status that will give you a lower tax. 2011 taxact online See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. 2011 taxact online How to file. 2011 taxact online    You can file Form 1040. 2011 taxact online If you have taxable income of less than $100,000, you may be able to file Form 1040A. 2011 taxact online If, in addition, you have no dependents, are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. 2011 taxact online If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. 2011 taxact online Use the Single column of the Tax Table, or Section A of the Tax Computation Worksheet, to figure your tax. 2011 taxact online Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. 2011 taxact online On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. 2011 taxact online You can file a joint return even if one of you had no income or deductions. 2011 taxact online If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. 2011 taxact online Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. 2011 taxact online If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). 2011 taxact online You can choose the method that gives the two of you the lower combined tax. 2011 taxact online How to file. 2011 taxact online    If you file as married filing jointly, you can use Form 1040. 2011 taxact online If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. 2011 taxact online If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. 2011 taxact online If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. 2011 taxact online Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, to figure your tax. 2011 taxact online Spouse died. 2011 taxact online    If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. 2011 taxact online See Spouse died during the year , under Married persons, earlier. 2011 taxact online   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. 2011 taxact online Divorced persons. 2011 taxact online    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. 2011 taxact online Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. 2011 taxact online Accounting period. 2011 taxact online    Both of you must use the same accounting period, but you can use different accounting methods. 2011 taxact online Joint responsibility. 2011 taxact online    Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. 2011 taxact online This means that if one spouse does not pay the tax due, the other may have to. 2011 taxact online Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. 2011 taxact online One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. 2011 taxact online   You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. 2011 taxact online Divorced taxpayer. 2011 taxact online    You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. 2011 taxact online This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. 2011 taxact online Relief from joint responsibility. 2011 taxact online    In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. 2011 taxact online You can ask for relief no matter how small the liability. 2011 taxact online   There are three types of relief available. 2011 taxact online Innocent spouse relief. 2011 taxact online Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or who have not lived together for the 12 months ending on the date the election for this relief is filed). 2011 taxact online Equitable relief. 2011 taxact online    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. 2011 taxact online Publication 971, Innocent Spouse Relief, explains the kinds of relief and who may qualify for them. 2011 taxact online Signing a joint return. 2011 taxact online    For a return to be considered a joint return, both spouses generally must sign the return. 2011 taxact online Spouse died before signing. 2011 taxact online    If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. 2011 taxact online If neither you nor anyone else has been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. 2011 taxact online Spouse away from home. 2011 taxact online    If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so it can be filed on time. 2011 taxact online Injury or disease prevents signing. 2011 taxact online    If your spouse cannot sign because of injury or disease and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). 2011 taxact online ” Be sure to also sign in the space provided for your signature. 2011 taxact online Attach a dated statement, signed by you, to the return. 2011 taxact online The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. 2011 taxact online Signing as guardian of spouse. 2011 taxact online    If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. 2011 taxact online Spouse in combat zone. 2011 taxact online    You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. 2011 taxact online Attach a signed statement to your return explaining that your spouse is serving in a combat zone. 2011 taxact online For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. 2011 taxact online Other reasons spouse cannot sign. 2011 taxact online    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). 2011 taxact online Attach the power of attorney (or a copy of it) to your tax return. 2011 taxact online You can use Form 2848. 2011 taxact online Nonresident alien or dual-status alien. 2011 taxact online    Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. 2011 taxact online However, if one spouse was a nonresident alien or dual-status alien who was married to a U. 2011 taxact online S. 2011 taxact online citizen or resident alien at the end of the year, the spouses can choose to file a joint return. 2011 taxact online If you do file a joint return, you and your spouse are both treated as U. 2011 taxact online S. 2011 taxact online residents for the entire tax year. 2011 taxact online See chapter 1 of Publication 519. 2011 taxact online Married Filing Separately You can choose married filing separately as your filing status if you are married. 2011 taxact online This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. 2011 taxact online If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. 2011 taxact online You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). 2011 taxact online This can apply to you even if you are not divorced or legally separated. 2011 taxact online If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. 2011 taxact online The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. 2011 taxact online See Head of Household , later, for more information. 2011 taxact online You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. 2011 taxact online However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). 2011 taxact online This way you can make sure you are using the filing status that results in the lowest combined tax. 2011 taxact online When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. 2011 taxact online How to file. 2011 taxact online    If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. 2011 taxact online You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. 2011 taxact online   You can file Form 1040. 2011 taxact online If your taxable income is less than $100,000, you may be able to file Form 1040A. 2011 taxact online Select this filing status by checking the box on line 3 of either form. 2011 taxact online Enter your spouse's full name and SSN or ITIN in the spaces provided. 2011 taxact online If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. 2011 taxact online Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. 2011 taxact online Special Rules If you choose married filing separately as your filing status, the following special rules apply. 2011 taxact online Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. 2011 taxact online Your tax rate generally is higher than on a joint return. 2011 taxact online Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. 2011 taxact online You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 on a joint return). 2011 taxact online If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. 2011 taxact online See Joint Return Test in Publication 503, Child and Dependent Care Expenses, for more information. 2011 taxact online You cannot take the earned income credit. 2011 taxact online You cannot take the exclusion or credit for adoption expenses in most cases. 2011 taxact online You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. 2011 taxact online You cannot exclude any interest income from qualified U. 2011 taxact online S. 2011 taxact online savings bonds you used for higher education expenses. 2011 taxact online If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. 2011 taxact online The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. 2011 taxact online Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). 2011 taxact online If your spouse itemizes deductions, you cannot claim the standard deduction. 2011 taxact online If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. 2011 taxact online Adjusted gross income (AGI) limits. 2011 taxact online    If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. 2011 taxact online Individual retirement arrangements (IRAs). 2011 taxact online    You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. 2011 taxact online Your deduction is reduced or eliminated if your income is more than a certain amount. 2011 taxact online This amount is much lower for married individuals who file separately and lived together at any time during the year. 2011 taxact online For more information, see How Much Can You Deduct? in chapter 1 of Publication 590. 2011 taxact online Rental activity losses. 2011 taxact online    If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income up to $25,000. 2011 taxact online This is called a special allowance. 2011 taxact online However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. 2011 taxact online Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. 2011 taxact online See Rental Activities in Publication 925, Passive Activity and At-Risk Rules. 2011 taxact online Community property states. 2011 taxact online    If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. 2011 taxact online See Publication 555, Community Property. 2011 taxact online Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. 2011 taxact online You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. 2011 taxact online This does not include any extensions. 2011 taxact online A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. 2011 taxact online Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. 2011 taxact online Exception. 2011 taxact online    A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. 2011 taxact online The personal representative has 1 year from the due date (including extensions) of the return to make the change. 2011 taxact online See Publication 559 for more information on filing income tax returns for a decedent. 2011 taxact online Head of Household You may be able to file as head of household if you meet all the following requirements. 2011 taxact online You are unmarried or considered unmarried on the last day of the year. 2011 taxact online See Marital Status , earlier, and Considered Unmarried , later. 2011 taxact online You paid more than half the cost of keeping up a home for the year. 2011 taxact online A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). 2011 taxact online However, if the qualifying person is your dependent parent, he or she does not have to live with you. 2011 taxact online See Special rule for parent , later, under Qualifying Person. 2011 taxact online If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. 2011 taxact online You will also receive a higher standard deduction than if you file as single or married filing separately. 2011 taxact online How to file. 2011 taxact online    If you file as head of household, you can use Form 1040. 2011 taxact online If you have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. 2011 taxact online Indicate your choice of this filing status by checking the box on line 4 of either form. 2011 taxact online Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. 2011 taxact online Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. 2011 taxact online You are considered unmarried on the last day of the tax year if you meet all the following tests. 2011 taxact online You file a separate return (defined earlier under Joint Return After Separate Returns ). 2011 taxact online You paid more than half the cost of keeping up your home for the tax year. 2011 taxact online Your spouse did not live in your home during the last 6 months of the tax year. 2011 taxact online Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. 2011 taxact online See Temporary absences , later. 2011 taxact online Your home was the main home of your child, stepchild, or foster child for more than half the year. 2011 taxact online (See Home of qualifying person , later, for rules applying to a child's birth, death, or temporary absence during the year. 2011 taxact online ) You must be able to claim an exemption for the child. 2011 taxact online However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative. 2011 taxact online The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents . 2011 taxact online If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. 2011 taxact online See Publication 555 for more information. 2011 taxact online Nonresident alien spouse. 2011 taxact online    You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. 2011 taxact online However, your spouse is not a qualifying person for head of household purposes. 2011 taxact online You must have another qualifying person and meet the other tests to be eligible to file as a head of household. 2011 taxact online Choice to treat spouse as resident. 2011 taxact online    You are considered married if you choose to treat your spouse as a resident alien. 2011 taxact online See chapter 1 of Publication 519. 2011 taxact online Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. 2011 taxact online You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 1. 2011 taxact online Worksheet 1. 2011 taxact online Cost of Keeping Up a Home         Amount You  Paid Total  Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $       Minus total amount you paid   ()       Amount others paid   $       If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. 2011 taxact online Costs you include. 2011 taxact online    Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. 2011 taxact online   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. 2011 taxact online However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. 2011 taxact online Costs you do not include. 2011 taxact online    Do not include the cost of clothing, education, medical treatment, vacations, life insurance, or transportation. 2011 taxact online Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. 2011 taxact online Qualifying Person See Table 4 to see who is a qualifying person. 2011 taxact online Any person not described in Table 4 is not a qualifying person. 2011 taxact online Example 1—child. 2011 taxact online Your unmarried son lived with you all year and was 18 years old at the end of the year. 2011 taxact online He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. 2011 taxact online As a result, he is your qualifying child (see Qualifying Child , later) and, because he is single, your qualifying person for head of household purposes. 2011 taxact online Example 2—child who is not qualifying person. 2011 taxact online The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. 2011 taxact online Because he does not meet the age test (explained later under Qualifying Child), your son is not your qualifying child. 2011 taxact online Because he does not meet the gross income test (explained later under Qualifying Relative), he is not your qualifying relative. 2011 taxact online As a result, he is not your qualifying person for head of household purposes. 2011 taxact online Example 3—girlfriend. 2011 taxact online Your girlfriend lived with you all year. 2011 taxact online Even though she may be your qualifying relative if the gross income and support tests (explained later) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you . 2011 taxact online See Table 4. 2011 taxact online Example 4—girlfriend's child. 2011 taxact online The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. 2011 taxact online He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test , later). 2011 taxact online As a result, he is not your qualifying person for head of household purposes. 2011 taxact online Home of qualifying person. 2011 taxact online    Generally, the qualifying person must live with you for more than half of the year. 2011 taxact online Special rule for parent. 2011 taxact online    If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. 2011 taxact online However, you must be able to claim an exemption for your father or mother. 2011 taxact online Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. 2011 taxact online   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. 2011 taxact online Death or birth. 2011 taxact online    You may be eligible to file as head of household even if the qualifying person who qualifies you for this filing status is born or dies during the year. 2011 taxact online To qualify you for head of household filing status, the qualifying person (as defined in Table 4) must be one of the following. 2011 taxact online Your qualifying child or qualifying relative who lived with you for more than half the part of the year he or she was alive. 2011 taxact online Your parent for whom you paid, for the entire part of the year he or she was alive, more than half the cost of keeping up the home he or she lived in. 2011 taxact online Example. 2011 taxact online You are unmarried. 2011 taxact online Your mother, for whom you can claim an exemption, lived in an apartment by herself. 2011 taxact online She died on September 2. 2011 taxact online The cost of the upkeep of her apartment for the year until her death was $6,000. 2011 taxact online You paid $4,000 and your brother paid $2,000. 2011 taxact online Your brother made no other payments towards your mother's support. 2011 taxact online Your mother had no income. 2011 taxact online Because you paid more than half of the cost of keeping up your mother's apartment from January 1 until her death, and you can claim an exemption for her, you can file as a head of household. 2011 taxact online Temporary absences. 2011 taxact online    You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. 2011 taxact online It must be reasonable to assume the absent person will return to the home after the temporary absence. 2011 taxact online You must continue to keep up the home during the absence. 2011 taxact online Kidnapped child. 2011 taxact online    You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. 2011 taxact online You can claim head of household filing status if all the following statements are true. 2011 taxact online The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. 2011 taxact online In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. 2011 taxact online You would have qualified for head of household filing status if the child had not been kidnapped. 2011 taxact online   This treatment applies for all years until the earliest of: The year the child is returned, The year there is a determination that the child is dead, or The year the child would have reached age 18. 2011 taxact online Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. 2011 taxact online The year of death is the last year for which you can file jointly with your deceased spouse. 2011 taxact online See Married Filing Jointly , earlier. 2011 taxact online You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. 2011 taxact online For example, if your spouse died in 2012 and you have not remarried, you may be able to use this filing status for 2013 and 2014. 2011 taxact online The rules for using this filing status are explained in detail here. 2011 taxact online This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). 2011 taxact online It does not entitle you to file a joint return. 2011 taxact online How to file. 2011 taxact online    If you file as a qualifying widow(er) with dependent child, you can use Form 1040. 2011 taxact online If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. 2011 taxact online Check the box on line 5 of either form. 2011 taxact online Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. 2011 taxact online Table 4. 2011 taxact online Who Is a Qualifying Person Qualifying You To File as Head of Household?1 See the text of this publication for the other requirements you must meet to claim head of household filing status. 2011 taxact online IF the person is your . 2011 taxact online . 2011 taxact online . 2011 taxact online   AND . 2011 taxact online . 2011 taxact online . 2011 taxact online   THEN that person is . 2011 taxact online . 2011 taxact online . 2011 taxact online qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. 2011 taxact online   he or she is married and you can claim an exemption for him or her   a qualifying person. 2011 taxact online   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. 2011 taxact online 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. 2011 taxact online 6   you cannot claim an exemption for him or her   not a qualifying person. 2011 taxact online qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests). 2011 taxact online   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you , later, and you can claim an exemption for him or her5   a qualifying person. 2011 taxact online   he or she did not live with you more than half the year   not a qualifying person. 2011 taxact online   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you , later, and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. 2011 taxact online   you cannot claim an exemption for him or her   not a qualifying person. 2011 taxact online 1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year. 2011 taxact online 2 The term “qualifying child” is defined under Exemptions for Dependents, later. 2011 taxact online Note: If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child, later. 2011 taxact online If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. 2011 taxact online 3 This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. 2011 taxact online 4 The term “qualifying relative” is defined under Exemptions for Dependents, later. 2011 taxact online 5 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. 2011 taxact online See Multiple Support Agreement . 2011 taxact online 6 See Special rule for parent . 2011 taxact online Eligibility rules. 2011 taxact online    You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all the following tests. 2011 taxact online You were entitled to file a joint return with your spouse for the year your spouse died. 2011 taxact online It does not matter whether you actually filed a joint return. 2011 taxact online Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. 2011 taxact online You have a child or stepchild for whom you can claim an exemption. 2011 taxact online This does not include a foster child. 2011 taxact online This child lived in your home all year, except for temporary absences. 2011 taxact online See Temporary absences , earlier, under Head of Household. 2011 taxact online There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. 2011 taxact online You paid more than half the cost of keeping up a home for the year. 2011 taxact online See Keeping Up a Home , earlier, under Head of Household. 2011 taxact online Example. 2011 taxact online John's wife died in 2011. 2011 taxact online John has not remarried. 2011 taxact online He has continued during 2012 and 2013 to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. 2011 taxact online For 2011 he was entitled to file a joint return for himself and his deceased wife. 2011 taxact online For 2012 and 2013, he can file as a qualifying widower with a dependent child. 2011 taxact online After 2013, he can file as head of household if he qualifies. 2011 taxact online Death or birth. 2011 taxact online    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. 2011 taxact online You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. 2011 taxact online Kidnapped child. 2011 taxact online    You may be eligible to file as a qualifying widow(er) with dependent child even if the child who qualifies you for this filing status has been kidnapped. 2011 taxact online You can claim qualifying widow(er) with dependent child filing status if all the following statements are true. 2011 taxact online The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. 2011 taxact online In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. 2011 taxact online You would have qualified for qualifying widow(er) with dependent child filing status if the child had not been kidnapped. 2011 taxact online As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. 2011 taxact online Exemptions Exemptions reduce your taxable income. 2011 taxact online You can deduct $3,900 for each exemption you claim in 2013. 2011 taxact online If you are entitled to two exemptions for 2013, you can deduct $7,800 ($3,900 × 2). 2011 taxact online But you may lose the benefit of part or all of your exemptions if your adjusted gross income is above a certain amount. 2011 taxact online See Phaseout of Exemptions , later. 2011 taxact online Types of exemptions. 2011 taxact online    There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). 2011 taxact online While each is worth the same amount ($3,900 for 2013), different rules, discussed later, apply to each type. 2011 taxact online Dependent cannot claim a personal exemption. 2011 taxact online    If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim a personal exemption on his or her own tax return. 2011 taxact online How to claim exemptions. 2011 taxact online    How you claim an exemption on your tax return depends on which form you file. 2011 taxact online Form 1040EZ filers. 2011 taxact online    If you file Form 1040EZ, the exemption amount is combined with the standard deduction and entered on line 5. 2011 taxact online Form 1040A filers. 2011 taxact online    If you file Form 1040A, complete lines 6a through 6d. 2011 taxact online The total number of exemptions you can claim is the total in the box on line 6d. 2011 taxact online Also complete line 26. 2011 taxact online Form 1040 filers. 2011 taxact online    If you file Form 1040, complete lines 6a through 6d. 2011 taxact online The total number of exemptions you can claim is the total in the box on line 6d. 2011 taxact online Also complete line 42. 2011 taxact online If your adjusted gross income is more than $150,000, see Phaseout of Exemptions , later. 2011 taxact online U. 2011 taxact online S. 2011 taxact online citizen or resident alien. 2011 taxact online    If you are a U. 2011 taxact online S. 2011 taxact online citizen, U. 2011 taxact online S. 2011 taxact online resident alien, U. 2011 taxact online S. 2011 taxact online national (defined later) or a resident of Canada or Mexico, you may qualify for any of the exemptions discussed here. 2011 taxact online Nonresident aliens. 2011 taxact online    Generally, if you are a nonresident alien (other than a resident of Canada or Mexico, or certain residents of India or Korea), you can qualify for only one personal exemption for yourself. 2011 taxact online You cannot claim exemptions for a spouse or dependents. 2011 taxact online   These restrictions do not apply if you are a nonresident alien married to a U. 2011 taxact online S. 2011 taxact online citizen or resident alien and have chosen to be treated as a resident of the United States. 2011 taxact online More information. 2011 taxact online    For more information on exemptions if you are a nonresident alien, see chapter 5 in Publication 519. 2011 taxact online Dual-status taxpayers. 2011 taxact online    If you have been both a nonresident alien and a resident alien in the same tax year, you should see Publication 519 for information on determining your exemptions. 2011 taxact online Personal Exemptions You are generally allowed one exemption for yourself. 2011 taxact online If you are married, you may be allowed one exemption for your spouse. 2011 taxact online These are called personal exemptions. 2011 taxact online Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. 2011 taxact online If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. 2011 taxact online Your Spouse's Exemption Your spouse is never considered your dependent. 2011 taxact online Joint return. 2011 taxact online    On a joint return, you can claim one exemption for yourself and one for your spouse. 2011 taxact online Separate return. 2011 taxact online    If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. 2011 taxact online This is true even if the other taxpayer does not actually claim your spouse as a dependent. 2011 taxact online You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. 2011 taxact online S. 2011 taxact online tax purposes and satisfy the other conditions listed above. 2011 taxact online Head of household. 2011 taxact online    If you qualify for head of household filing status because you are considered unmarried, you can claim an exemption for your spouse if the conditions described in the preceding paragraph are satisfied. 2011 taxact online   To claim the exemption for your spouse, check the box on line 6b of Form 1040 or Form 1040A and enter the name of your spouse in the space to the right of the box. 2011 taxact online Enter the SSN or ITIN of your spouse in the space provided at the top of Form 1040 or Form 1040A. 2011 taxact online Death of spouse. 2011 taxact online    If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . 2011 taxact online If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . 2011 taxact online   If you remarried during the year, you cannot take an exemption for your deceased spouse. 2011 taxact online   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. 2011 taxact online If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. 2011 taxact online Divorced or separated spouse. 2011 taxact online    If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. 2011 taxact online This rule applies even if you provided all of your former spouse's support. 2011 taxact online Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. 2011 taxact online You can claim an exemption for a dependent even if your dependent files a return. 2011 taxact online The term “dependent” means: A qualifying child, or A qualifying relative. 2011 taxact online The terms “ qualifying child ” and “ qualifying relative ” are defined later. 2011 taxact online You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. 2011 taxact online Dependent taxpayer test. 2011 taxact online Joint return test. 2011 taxact online Citizen or resident test. 2011 taxact online These three tests are explained in detail later. 2011 taxact online All the requirements for claiming an exemption for a dependent are summarized in Table 5. 2011 taxact online Table 5. 2011 taxact online Overview of the Rules for Claiming an Exemption for a Dependent This table is only an overview of the rules. 2011 taxact online For details, see the rest of this publication. 2011 taxact online You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer. 2011 taxact online   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. 2011 taxact online   You cannot claim a person as a dependent unless that person is a U. 2011 taxact online S. 2011 taxact online citizen, U. 2011 taxact online S. 2011 taxact online resident alien, U. 2011 taxact online S. 2011 taxact online national, or a resident of Canada or Mexico. 2011 taxact online 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. 2011 taxact online   Tests To Be a Qualifying Child Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. 2011 taxact online   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled. 2011 taxact online   The child must have lived with you for more than half of the year. 2011 taxact online 2  The child must not have provided more than half of his or her own support for the year. 2011 taxact online   The child is not filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid). 2011 taxact online  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. 2011 taxact online See the Special Rule for Qualifying Child of More Than One Person described later to find out which person is the person entitled to claim the child as a qualifying child. 2011 taxact online The person cannot be your qualifying child or the qualifying child of any other taxpayer. 2011 taxact online   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). 2011 taxact online   The person's gross income for the year must be less than $3,900. 2011 taxact online 3  You must provide more than half of the person's total support for the year. 2011 taxact online 4  1 There is an exception for certain adopted children. 2011 taxact online 2 There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. 2011 taxact online 3 There is an exception if the person is disabled and has income from a sheltered workshop. 2011 taxact online 4 There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. 2011 taxact online Dependent not allowed a personal exemption. 2011 taxact online If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. 2011 taxact online This is true even if you do not claim the dependent's exemption on your return. 2011 taxact online It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. 2011 taxact online Housekeepers, maids, or servants. 2011 taxact online    If these people work for you, you cannot claim exemptions for them. 2011 taxact online Child tax credit. 2011 taxact online    You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. 2011 taxact online For more information, see the instructions for the tax form you file (Form 1040 or 1040A). 2011 taxact online Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. 2011 taxact online Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. 2011 taxact online If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. 2011 taxact online Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. 2011 taxact online Exception. 2011 taxact online    You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. 2011 taxact online Example 1—child files joint return. 2011 taxact online You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 2011 taxact online He earned $25,000 for the year. 2011 taxact online The couple files a joint return. 2011 taxact online You cannot take an exemption for your daughter. 2011 taxact online Example 2—child files joint return only as claim for refund of withheld tax. 2011 taxact online Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 2011 taxact online Neither is required to file a tax return. 2011 taxact online They do not have a child. 2011 taxact online Taxes were taken out of their pay so they file a joint return only to get a refund of the withheld taxes. 2011 taxact online The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. 2011 taxact online You can claim exemptions for each of them if all the other tests to do so are met. 2011 taxact online Example 3—child files joint return to claim American opportunity credit. 2011 taxact online The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 2011 taxact online He and his wife are not required to file a tax return. 2011 taxact online However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 2011 taxact online Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income
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The 2011 Taxact Online

2011 taxact online 1. 2011 taxact online   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. 2011 taxact online Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. 2011 taxact online Reseller statement. 2011 taxact online Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. 2011 taxact online Deep-draft ocean-going vessels. 2011 taxact online Passenger vessels. 2011 taxact online Ocean-going barges. 2011 taxact online State or local governments. 2011 taxact online Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. 2011 taxact online Gasoline, including aviation gasoline and gasoline blendstocks. 2011 taxact online Diesel fuel, including dyed diesel fuel. 2011 taxact online Diesel-water fuel emulsion. 2011 taxact online Kerosene, including dyed kerosene and kerosene used in aviation. 2011 taxact online Other Fuels (including alternative fuels). 2011 taxact online Compressed natural gas (CNG). 2011 taxact online Fuels used in commercial transportation on inland waterways. 2011 taxact online Any liquid used in a fractional ownership program aircraft as fuel. 2011 taxact online The following terms are used throughout the discussion of fuel taxes. 2011 taxact online Other terms are defined in the discussion of the specific fuels to which they pertain. 2011 taxact online Agri-biodiesel. 2011 taxact online   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. 2011 taxact online Approved terminal or refinery. 2011 taxact online   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. 2011 taxact online Biodiesel. 2011 taxact online   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. 2011 taxact online Blended taxable fuel. 2011 taxact online   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. 2011 taxact online This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. 2011 taxact online Blender. 2011 taxact online   This is the person that produces blended taxable fuel. 2011 taxact online Bulk transfer. 2011 taxact online   This is the transfer of taxable fuel by pipeline or vessel. 2011 taxact online Bulk transfer/terminal system. 2011 taxact online   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. 2011 taxact online Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. 2011 taxact online Cellulosic biofuel. 2011 taxact online   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. 2011 taxact online Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). 2011 taxact online For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. 2011 taxact online Also see Second generation biofuel below. 2011 taxact online Diesel-water fuel emulsion. 2011 taxact online   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. 2011 taxact online The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. 2011 taxact online Dry lease aircraft exchange. 2011 taxact online   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. 2011 taxact online Enterer. 2011 taxact online   This is the importer of record (under customs law) for the taxable fuel. 2011 taxact online However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. 2011 taxact online If there is no importer of record, the owner at the time of entry into the United States is the enterer. 2011 taxact online Entry. 2011 taxact online   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. 2011 taxact online This does not apply to fuel brought into Puerto Rico (which is part of the U. 2011 taxact online S. 2011 taxact online customs territory), but does apply to fuel brought into the United States from Puerto Rico. 2011 taxact online Fractional ownership aircraft program and fractional program aircraft. 2011 taxact online   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. 2011 taxact online Measurement of taxable fuel. 2011 taxact online   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. 2011 taxact online Other fuels. 2011 taxact online   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. 2011 taxact online Pipeline operator. 2011 taxact online   This is the person that operates a pipeline within the bulk transfer/terminal system. 2011 taxact online Position holder. 2011 taxact online   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. 2011 taxact online You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. 2011 taxact online A terminal operator that owns taxable fuel in its terminal is a position holder. 2011 taxact online Rack. 2011 taxact online   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. 2011 taxact online Refiner. 2011 taxact online   This is any person that owns, operates, or otherwise controls a refinery. 2011 taxact online Refinery. 2011 taxact online   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. 2011 taxact online However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. 2011 taxact online For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. 2011 taxact online Registrant. 2011 taxact online   This is a taxable fuel registrant (see Registration Requirements, later). 2011 taxact online Removal. 2011 taxact online   This is any physical transfer of taxable fuel. 2011 taxact online It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. 2011 taxact online However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. 2011 taxact online Renewable diesel. 2011 taxact online   See Renewable Diesel Credits in chapter 2. 2011 taxact online Sale. 2011 taxact online   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. 2011 taxact online For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. 2011 taxact online Second generation biofuel. 2011 taxact online   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. 2011 taxact online S. 2011 taxact online C. 2011 taxact online 7545). 2011 taxact online It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. 2011 taxact online It is not alcohol of less than 150 proof (disregard any added denaturants). 2011 taxact online See Form 6478 for more information. 2011 taxact online State. 2011 taxact online   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. 2011 taxact online An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. 2011 taxact online Taxable fuel. 2011 taxact online   This means gasoline, diesel fuel, and kerosene. 2011 taxact online Terminal. 2011 taxact online   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. 2011 taxact online It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. 2011 taxact online A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. 2011 taxact online Terminal operator. 2011 taxact online   This is any person that owns, operates, or otherwise controls a terminal. 2011 taxact online Throughputter. 2011 taxact online   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). 2011 taxact online Vessel operator. 2011 taxact online   This is the person that operates a vessel within the bulk transfer/terminal system. 2011 taxact online However, vessel does not include a deep draft ocean-going vessel. 2011 taxact online Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. 2011 taxact online A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. 2011 taxact online For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. 2011 taxact online The returns are due the last day of the month following the month in which the transaction occurs. 2011 taxact online Generally, these returns can be filed on paper or electronically. 2011 taxact online For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. 2011 taxact online Publication 3536 is only available on the IRS website. 2011 taxact online Form 720-TO. 2011 taxact online   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. 2011 taxact online Each terminal operator must file a separate form for each approved terminal. 2011 taxact online Form 720-CS. 2011 taxact online   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. 2011 taxact online Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. 2011 taxact online See Form 637 for other persons who must register and for more information about registration. 2011 taxact online Persons that are required to be registered. 2011 taxact online   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. 2011 taxact online Persons that may register. 2011 taxact online   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. 2011 taxact online Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. 2011 taxact online However, they must be registered to file claims for certain sales and uses of fuel. 2011 taxact online See Form 637 for more information. 2011 taxact online Taxable fuel registrant. 2011 taxact online   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. 2011 taxact online The term registrant as used in the discussions of these fuels means a taxable fuel registrant. 2011 taxact online Additional information. 2011 taxact online   See the Form 637 instructions for the information you must submit when you apply for registration. 2011 taxact online Failure to register. 2011 taxact online   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. 2011 taxact online Gasoline and Aviation Gasoline Gasoline. 2011 taxact online   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. 2011 taxact online Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. 2011 taxact online Gasoline also includes gasoline blendstocks, discussed later. 2011 taxact online Aviation gasoline. 2011 taxact online   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. 2011 taxact online Taxable Events The tax on gasoline is $. 2011 taxact online 184 per gallon. 2011 taxact online The tax on aviation gasoline is $. 2011 taxact online 194 per gallon. 2011 taxact online When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. 2011 taxact online 141 per gallon. 2011 taxact online See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. 2011 taxact online Tax is imposed on the removal, entry, or sale of gasoline. 2011 taxact online Each of these events is discussed later. 2011 taxact online Also, see the special rules that apply to gasoline blendstocks, later. 2011 taxact online If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. 2011 taxact online See Refunds of Second Tax in chapter 2. 2011 taxact online Removal from terminal. 2011 taxact online   All removals of gasoline at a terminal rack are taxable. 2011 taxact online The position holder for that gasoline is liable for the tax. 2011 taxact online Two-party exchanges. 2011 taxact online   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. 2011 taxact online A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. 2011 taxact online The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. 2011 taxact online The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. 2011 taxact online The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. 2011 taxact online The transaction is subject to a written contract. 2011 taxact online Terminal operator's liability. 2011 taxact online   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. 2011 taxact online   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. 2011 taxact online The terminal operator is a registrant. 2011 taxact online The terminal operator has an unexpired notification certificate (discussed later) from the position holder. 2011 taxact online The terminal operator has no reason to believe any information on the certificate is false. 2011 taxact online Removal from refinery. 2011 taxact online   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. 2011 taxact online It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. 2011 taxact online It is made at the refinery rack. 2011 taxact online The refiner is liable for the tax. 2011 taxact online Exception. 2011 taxact online   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. 2011 taxact online The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. 2011 taxact online The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. 2011 taxact online The removal from the refinery is by railcar. 2011 taxact online The same person operates the refinery and the facility at which the gasoline is received. 2011 taxact online Entry into the United States. 2011 taxact online   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. 2011 taxact online It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. 2011 taxact online It is not made by bulk transfer. 2011 taxact online The enterer is liable for the tax. 2011 taxact online Importer of record's liability. 2011 taxact online   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. 2011 taxact online   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. 2011 taxact online The importer of record has an unexpired notification certificate (discussed later) from the enterer. 2011 taxact online The importer of record has no reason to believe any information in the certificate is false. 2011 taxact online Customs bond. 2011 taxact online   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. 2011 taxact online Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. 2011 taxact online   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. 2011 taxact online The position holder is liable for the tax. 2011 taxact online The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. 2011 taxact online However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. 2011 taxact online Bulk transfers not received at approved terminal or refinery. 2011 taxact online   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. 2011 taxact online No tax was previously imposed (as discussed earlier) on any of the following events. 2011 taxact online The removal from the refinery. 2011 taxact online The entry into the United States. 2011 taxact online The removal from a terminal by an unregistered position holder. 2011 taxact online Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). 2011 taxact online   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. 2011 taxact online However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. 2011 taxact online The owner is a registrant. 2011 taxact online The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. 2011 taxact online The owner has no reason to believe any information on the certificate is false. 2011 taxact online The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. 2011 taxact online The operator is jointly and severally liable if the owner does not meet these conditions. 2011 taxact online Sales to unregistered person. 2011 taxact online   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. 2011 taxact online   The seller is liable for the tax. 2011 taxact online However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. 2011 taxact online   The seller is a registrant. 2011 taxact online The seller has an unexpired notification certificate (discussed later) from the buyer. 2011 taxact online The seller has no reason to believe any information on the certificate is false. 2011 taxact online The buyer of the gasoline is liable for the tax if the seller meets these conditions. 2011 taxact online The buyer is jointly and severally liable if the seller does not meet these conditions. 2011 taxact online Exception. 2011 taxact online   The tax does not apply to a sale if all of the following apply. 2011 taxact online The buyer's principal place of business is not in the United States. 2011 taxact online The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. 2011 taxact online The seller is a registrant and the exporter of record. 2011 taxact online The fuel was exported. 2011 taxact online Removal or sale of blended gasoline. 2011 taxact online   The removal or sale of blended gasoline by the blender is taxable. 2011 taxact online See Blended taxable fuel under Definitions, earlier. 2011 taxact online   The blender is liable for the tax. 2011 taxact online The tax is figured on the number of gallons not previously subject to the tax on gasoline. 2011 taxact online   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. 2011 taxact online See Form 720 to report this tax. 2011 taxact online You also must be registered with the IRS as a blender. 2011 taxact online See Form 637. 2011 taxact online   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. 2011 taxact online Notification certificate. 2011 taxact online   The notification certificate is used to notify a person of the registration status of the registrant. 2011 taxact online A copy of the registrant's letter of registration cannot be used as a notification certificate. 2011 taxact online A model notification certificate is shown in the Appendix as Model Certificate C. 2011 taxact online A notification certificate must contain all information necessary to complete the model. 2011 taxact online   The certificate may be included as part of any business records normally used for a sale. 2011 taxact online A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. 2011 taxact online The registrant must provide a new certificate if any information on a certificate has changed. 2011 taxact online Additional persons liable. 2011 taxact online   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. 2011 taxact online Gasoline Blendstocks Gasoline blendstocks may be subject to $. 2011 taxact online 001 per gallon LUST tax as discussed below. 2011 taxact online Gasoline includes gasoline blendstocks. 2011 taxact online The previous discussions apply to these blendstocks. 2011 taxact online However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. 2011 taxact online 001 per gallon or are not subject to the excise tax. 2011 taxact online Blendstocks. 2011 taxact online   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. 2011 taxact online   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. 2011 taxact online Not used to produce finished gasoline. 2011 taxact online   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. 2011 taxact online Removals and entries not connected to sale. 2011 taxact online   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. 2011 taxact online Removals and entries connected to sale. 2011 taxact online   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. 2011 taxact online The person has an unexpired certificate (discussed later) from the buyer. 2011 taxact online The person has no reason to believe any information in the certificate is false. 2011 taxact online Sales after removal or entry. 2011 taxact online   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. 2011 taxact online The seller is liable for the tax. 2011 taxact online However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. 2011 taxact online The seller has an unexpired certificate (discussed next) from the buyer. 2011 taxact online The seller has no reason to believe any information in the certificate is false. 2011 taxact online Certificate of buyer. 2011 taxact online   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. 2011 taxact online The certificate may be included as part of any business records normally used for a sale. 2011 taxact online A model certificate is shown in the Appendix as Model Certificate D. 2011 taxact online The certificate must contain all information necessary to complete the model. 2011 taxact online   A certificate expires on the earliest of the following dates. 2011 taxact online The date 1 year after the effective date (not earlier than the date signed) of the certificate. 2011 taxact online The date a new certificate is provided to the seller. 2011 taxact online The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. 2011 taxact online The buyer must provide a new certificate if any information on a certificate has changed. 2011 taxact online   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. 2011 taxact online Received at approved terminal or refinery. 2011 taxact online   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. 2011 taxact online The person is a registrant. 2011 taxact online The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. 2011 taxact online The person has no reason to believe any information on the certificate is false. 2011 taxact online Bulk transfers to registered industrial user. 2011 taxact online   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. 2011 taxact online An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. 2011 taxact online Credits or Refunds. 2011 taxact online   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. 2011 taxact online For more information, see chapter 2. 2011 taxact online Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). 2011 taxact online However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. 2011 taxact online Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. 2011 taxact online A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. 2011 taxact online A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. 2011 taxact online However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. 2011 taxact online Diesel fuel does not include gasoline, kerosene, excluded liquid, No. 2011 taxact online 5 and No. 2011 taxact online 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. 2011 taxact online An excluded liquid is either of the following. 2011 taxact online A liquid that contains less than 4% normal paraffins. 2011 taxact online A liquid with all the following properties. 2011 taxact online Distillation range of 125 degrees Fahrenheit or less. 2011 taxact online Sulfur content of 10 ppm or less. 2011 taxact online Minimum color of +27 Saybolt. 2011 taxact online Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. 2011 taxact online Kerosene. 2011 taxact online   This means any of the following liquids. 2011 taxact online One of the two grades of kerosene (No. 2011 taxact online 1-K and No. 2011 taxact online 2-K) covered by ASTM specification D3699. 2011 taxact online Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). 2011 taxact online See Kerosene for Use in Aviation, later. 2011 taxact online   However, kerosene does not include excluded liquid, discussed earlier. 2011 taxact online   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. 2011 taxact online Diesel-powered highway vehicle. 2011 taxact online   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. 2011 taxact online Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. 2011 taxact online For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. 2011 taxact online 2) in chapter 2. 2011 taxact online Diesel-powered train. 2011 taxact online   This is any diesel-powered equipment or machinery that rides on rails. 2011 taxact online The term includes a locomotive, work train, switching engine, and track maintenance machine. 2011 taxact online Taxable Events The tax on diesel fuel and kerosene is $. 2011 taxact online 244 per gallon. 2011 taxact online It is imposed on the removal, entry, or sale of diesel fuel and kerosene. 2011 taxact online Each of these events is discussed later. 2011 taxact online Only the $. 2011 taxact online 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. 2011 taxact online If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. 2011 taxact online See Refunds of Second Tax in chapter 2. 2011 taxact online Use in certain intercity and local buses. 2011 taxact online   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. 2011 taxact online A claim for $. 2011 taxact online 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. 2011 taxact online An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. 2011 taxact online The bus must be engaged in one of the following activities. 2011 taxact online Scheduled transportation along regular routes regardless of the size of the bus. 2011 taxact online Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). 2011 taxact online A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. 2011 taxact online Removal from terminal. 2011 taxact online   All removals of diesel fuel and kerosene at a terminal rack are taxable. 2011 taxact online The position holder for that fuel is liable for the tax. 2011 taxact online Two-party exchanges. 2011 taxact online   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. 2011 taxact online A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. 2011 taxact online The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. 2011 taxact online The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. 2011 taxact online The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. 2011 taxact online The transaction is subject to a written contract. 2011 taxact online Terminal operator's liability. 2011 taxact online   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). 2011 taxact online   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. 2011 taxact online However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. 2011 taxact online The terminal operator is a registrant. 2011 taxact online The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. 2011 taxact online The terminal operator has no reason to believe any information on the certificate is false. 2011 taxact online Removal from refinery. 2011 taxact online   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. 2011 taxact online It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. 2011 taxact online It is made at the refinery rack. 2011 taxact online The refiner is liable for the tax. 2011 taxact online Exception. 2011 taxact online   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. 2011 taxact online The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. 2011 taxact online The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. 2011 taxact online The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. 2011 taxact online Entry into the United States. 2011 taxact online   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. 2011 taxact online It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. 2011 taxact online It is not made by bulk transfer. 2011 taxact online The enterer is liable for the tax. 2011 taxact online Importer of record's liability. 2011 taxact online   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. 2011 taxact online   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. 2011 taxact online The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. 2011 taxact online The importer of record has no reason to believe any information in the certificate is false. 2011 taxact online Customs bond. 2011 taxact online   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. 2011 taxact online Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. 2011 taxact online   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. 2011 taxact online The position holder is liable for the tax. 2011 taxact online The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. 2011 taxact online However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. 2011 taxact online Bulk transfers not received at approved terminal or refinery. 2011 taxact online   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. 2011 taxact online No tax was previously imposed (as discussed earlier) on any of the following events. 2011 taxact online The removal from the refinery. 2011 taxact online The entry into the United States. 2011 taxact online The removal from a terminal by an unregistered position holder. 2011 taxact online Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). 2011 taxact online   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. 2011 taxact online However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. 2011 taxact online The owner is a registrant. 2011 taxact online The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. 2011 taxact online The owner has no reason to believe any information on the certificate is false. 2011 taxact online The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. 2011 taxact online The operator is jointly and severally liable if the owner does not meet these conditions. 2011 taxact online Sales to unregistered person. 2011 taxact online   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. 2011 taxact online   The seller is liable for the tax. 2011 taxact online However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. 2011 taxact online The seller is a registrant. 2011 taxact online The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. 2011 taxact online The seller has no reason to believe any information on the certificate is false. 2011 taxact online The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. 2011 taxact online The buyer is jointly and severally liable if the seller does not meet these conditions. 2011 taxact online Exception. 2011 taxact online   The tax does not apply to a sale if all of the following apply. 2011 taxact online The buyer's principal place of business is not in the United States. 2011 taxact online The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. 2011 taxact online The seller is a registrant and the exporter of record. 2011 taxact online The fuel was exported. 2011 taxact online Removal or sale of blended diesel fuel or kerosene. 2011 taxact online   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. 2011 taxact online Blended taxable fuel produced using biodiesel is subject to the tax. 2011 taxact online See Blended taxable fuel under Definitions, earlier. 2011 taxact online   The blender is liable for the tax. 2011 taxact online The tax is figured on the number of gallons not previously subject to the tax. 2011 taxact online   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. 2011 taxact online Generally, the biodiesel mixture must be diesel fuel (defined earlier). 2011 taxact online See Form 720 to report this tax. 2011 taxact online You also must be registered by the IRS as a blender. 2011 taxact online See Form 637 for more information. 2011 taxact online   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. 2011 taxact online Additional persons liable. 2011 taxact online   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. 2011 taxact online Credits or Refunds. 2011 taxact online   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. 2011 taxact online For more information, see chapter 2. 2011 taxact online Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. 2011 taxact online 001 per gallon LUST tax as discussed below, unless the fuel is for export. 2011 taxact online The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. 2011 taxact online The person otherwise liable for tax (for example, the position holder) is a registrant. 2011 taxact online In the case of a removal from a terminal, the terminal is an approved terminal. 2011 taxact online The diesel fuel or kerosene satisfies the dyeing requirements (described next). 2011 taxact online Dyeing requirements. 2011 taxact online   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. 2011 taxact online It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. 2011 taxact online 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. 2011 taxact online Is indelibly dyed by mechanical injection. 2011 taxact online See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. 2011 taxact online Notice required. 2011 taxact online   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. 2011 taxact online   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. 2011 taxact online   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). 2011 taxact online That seller is subject to the penalty described next. 2011 taxact online Penalty. 2011 taxact online   A penalty is imposed on a person if any of the following situations apply. 2011 taxact online Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. 2011 taxact online Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. 2011 taxact online The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. 2011 taxact online The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. 2011 taxact online   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. 2011 taxact online After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. 2011 taxact online   This penalty is in addition to any tax imposed on the fuel. 2011 taxact online   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. 2011 taxact online   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. 2011 taxact online   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. 2011 taxact online However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. 2011 taxact online The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. 2011 taxact online Exception to penalty. 2011 taxact online   The penalty under item (3) will not apply in any of the following situations. 2011 taxact online Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. 2011 taxact online Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. 2011 taxact online The alteration or attempted alteration occurs in an exempt area of Alaska. 2011 taxact online See Removal for sale or use in Alaska, later. 2011 taxact online Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. 2011 taxact online Alaska and Feedstocks Tax of $. 2011 taxact online 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). 2011 taxact online Undyed kerosene used for feedstock purposes. 2011 taxact online Removal for sale or use in Alaska. 2011 taxact online   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. 2011 taxact online The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. 2011 taxact online The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. 2011 taxact online In the case of a removal from a terminal, the terminal is an approved terminal. 2011 taxact online The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. 2011 taxact online   If all three of the requirements above are not met, then tax is imposed at $. 2011 taxact online 244 per gallon. 2011 taxact online   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. 2011 taxact online Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. 2011 taxact online Later sales. 2011 taxact online   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. 2011 taxact online The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. 2011 taxact online However, the sale is not taxable (other than the LUST tax at $. 2011 taxact online 001 per gallon) if all the following requirements are met. 2011 taxact online The fuel is sold in Alaska for certain nontaxable uses. 2011 taxact online The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. 2011 taxact online The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. 2011 taxact online Feedstock purposes. 2011 taxact online   The $. 2011 taxact online 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. 2011 taxact online The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. 2011 taxact online In the case of a removal from a terminal, the terminal is an approved terminal. 2011 taxact online Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. 2011 taxact online   If all of the requirements above are not met, then tax is imposed at $. 2011 taxact online 244 per gallon. 2011 taxact online   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. 2011 taxact online For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. 2011 taxact online A feedstock user is a person that uses kerosene for a feedstock purpose. 2011 taxact online A registered feedstock user is a person that has been registered by the IRS as a feedstock user. 2011 taxact online See Registration Requirements, earlier. 2011 taxact online Later sales. 2011 taxact online   The excise tax ($. 2011 taxact online 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. 2011 taxact online The tax is imposed at the time of the later sale and that seller is liable for the tax. 2011 taxact online Certificate. 2011 taxact online   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. 2011 taxact online The certificate may be included as part of any business records normally used for a sale. 2011 taxact online A model certificate is shown in the Appendix as Model Certificate G. 2011 taxact online Your certificate must contain all information necessary to complete the model. 2011 taxact online   A certificate expires on the earliest of the following dates. 2011 taxact online The date 1 year after the effective date (not earlier than the date signed) of the certificate. 2011 taxact online The date the seller is provided a new certificate or notice that the current certificate is invalid. 2011 taxact online The date the seller is notified the buyer's registration has been revoked or suspended. 2011 taxact online   The buyer must provide a new certificate if any information on a certificate has changed. 2011 taxact online Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. 2011 taxact online Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. 2011 taxact online Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. 2011 taxact online Any liquid other than gasoline, diesel fuel, or kerosene. 2011 taxact online Generally, this back-up tax is imposed at a rate of $. 2011 taxact online 244 per gallon. 2011 taxact online Liability for tax. 2011 taxact online   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. 2011 taxact online In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. 2011 taxact online Exemptions from the back-up tax. 2011 taxact online   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. 2011 taxact online   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. 2011 taxact online Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which the emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. 2011 taxact online A reduced tax rate of $. 2011 taxact online 198 per gallon is imposed on a diesel-water fuel emulsion. 2011 taxact online To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. 2011 taxact online If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. 2011 taxact online 244 per gallon. 2011 taxact online Credits or refunds. 2011 taxact online   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. 2011 taxact online Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. 2011 taxact online 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). 2011 taxact online For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. 2011 taxact online 219. 2011 taxact online The rate of $. 2011 taxact online 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. 2011 taxact online The airport terminal does not need to be a secured airport terminal for this rate to apply. 2011 taxact online However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. 2011 taxact online For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. 2011 taxact online 044 per gallon. 2011 taxact online For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. 2011 taxact online 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. 2011 taxact online See Terminal located within a secured area of an airport, later. 2011 taxact online In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. 2011 taxact online For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. 2011 taxact online 001. 2011 taxact online There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. 2011 taxact online The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. 2011 taxact online See Terminal located within a secured area of an airport, later. 2011 taxact online In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. 2011 taxact online The position holder is liable for the $. 2011 taxact online 001 per gallon tax. 2011 taxact online For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. 2011 taxact online 141 per gallon applies. 2011 taxact online Certain refueler trucks, tankers, and tank wagons treated as terminals. 2011 taxact online   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. 2011 taxact online Such terminal is located within an area of an airport. 2011 taxact online Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. 2011 taxact online Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. 2011 taxact online The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. 2011 taxact online Information reporting will be required by terminal operators regarding this provision. 2011 taxact online Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. 2011 taxact online Terminal located within a secured area of an airport. 2011 taxact online   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. 2011 taxact online This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. 2011 taxact online Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. 2011 taxact online 044 per gallon. 2011 taxact online However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). 2011 taxact online For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. 2011 taxact online For the aircraft operator to be liable for the tax $. 2011 taxact online 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. 2011 taxact online Commercial aviation. 2011 taxact online   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. 2011 taxact online However, commercial aviation does not include any of the following uses. 2011 taxact online Any use exclusively for the purpose of skydiving. 2011 taxact online Certain air transportation by seaplane. 2011 taxact online See Seaplanes under Transportation of Persons by Air in chapter 4. 2011 taxact online Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. 2011 taxact online For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. 2011 taxact online Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. 2011 taxact online For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. 2011 taxact online Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. 2011 taxact online See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. 2011 taxact online Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. 2011 taxact online 141 per gallon. 2011 taxact online The fractional ownership program manager is liable for the tax. 2011 taxact online The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. 2011 taxact online If the surtax is imposed, the following air transportation taxes do not apply. 2011 taxact online Transportation of persons by air. 2011 taxact online Transportation of property by air. 2011 taxact online Use of international air travel facilities. 2011 taxact online These taxes are described under Air Transportation Taxes, later. 2011 taxact online A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. 2011 taxact online Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. 2011 taxact online Fractional program aircraft. 2011 taxact online   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. 2011 taxact online S. 2011 taxact online   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. 2011 taxact online In such situations, the flight is not commercial aviation. 2011 taxact online Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. 2011 taxact online Fractional owner. 2011 taxact online   Any person owning any interest (including the entire interest) in a fractional program aircraft. 2011 taxact online Dry lease aircraft exchange. 2011 taxact online   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. 2011 taxact online Special rule relating to deadhead service. 2011 taxact online   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. 2011 taxact online More information. 2011 taxact online   See section 4043 for more information on the surtax. 2011 taxact online Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. 2011 taxact online Certificate. 2011 taxact online   The certificate may be included as part of any business records normally used for a sale. 2011 taxact online See Model Certificate K in the Appendix. 2011 taxact online   A certificate expires on the earliest of the following dates. 2011 taxact online The date 1 year after the effective date (not earlier than the date signed) of the certificate. 2011 taxact online The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. 2011 taxact online The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. 2011 taxact online   The buyer must provide a new certificate if any information on a certificate has changed. 2011 taxact online   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. 2011 taxact online Exempt use. 2011 taxact online   The rate on kerosene for use in aviation is $. 2011 taxact online 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. 2011 taxact online An exempt use includes kerosene for the exclusive use of a state or local government. 2011 taxact online There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. 2011 taxact online Flash title transaction. 2011 taxact online   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. 2011 taxact online In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. 2011 taxact online In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. 2011 taxact online Reseller statement. 2011 taxact online   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. 2011 taxact online Credits or Refunds. 2011 taxact online   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia). 2011 taxact online A claim may be made by a registered ultimate vendor for certain sales. 2011 taxact online For more information, see chapter 2. 2011 taxact online Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. 2011 taxact online Other Fuels include alternative fuels. 2011 taxact online Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. 2011 taxact online Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. 2011 taxact online Qualified methanol and ethanol fuels. 2011 taxact online   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. 2011 taxact online The tax rates are listed in the Instructions for Form 720. 2011 taxact online Partially exempt methanol and ethanol fuels. 2011 taxact online   A reduced tax rate applies to these fuels. 2011 taxact online Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. 2011 taxact online The tax rates are listed in the Instructions for Form 720. 2011 taxact online Motor vehicles. 2011 taxact online   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. 2011 taxact online They are propelled by a motor. 2011 taxact online They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t