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Free State Tax Filling

Free state tax filling 2. Free state tax filling   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. Free state tax filling Surviving spouse. Free state tax filling Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. Free state tax filling Payments from a state fund for victims of crime. Free state tax filling Home Affordable Modification Program (HAMP). Free state tax filling Mortgage assistance payments. Free state tax filling Payments to reduce cost of winter energy use. Free state tax filling Nutrition Program for the Elderly. Free state tax filling Reemployment Trade Adjustment Assistance (RTAA). Free state tax filling Generally, income is taxable unless it is specifically exempt (not taxed) by law. Free state tax filling Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. Free state tax filling Under special provisions of the law, certain items are partially or fully exempt from tax. Free state tax filling Provisions that are of special interest to older taxpayers are discussed in this chapter. Free state tax filling Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. Free state tax filling In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. Free state tax filling You need not receive the compensation in cash for it to be taxable. Free state tax filling Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. Free state tax filling Volunteer work. Free state tax filling   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. Free state tax filling Retired Senior Volunteer Program (RSVP). Free state tax filling Foster Grandparent Program. Free state tax filling Senior Companion Program. Free state tax filling Service Corps of Retired Executives (SCORE). Free state tax filling Unemployment compensation. Free state tax filling   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. Free state tax filling More information. Free state tax filling   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. Free state tax filling Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. Free state tax filling A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. Free state tax filling A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. Free state tax filling A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. Free state tax filling More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. Free state tax filling Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. Free state tax filling Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. Free state tax filling These are discussed in Publication 590. Free state tax filling If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. Free state tax filling If you do not file Form 8606 with your return, you may have to pay a $50 penalty. Free state tax filling Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Free state tax filling Early distributions. Free state tax filling   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. Free state tax filling You must include early distributions of taxable amounts in your gross income. Free state tax filling These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. Free state tax filling For purposes of the additional 10% tax, an IRA is a qualified retirement plan. Free state tax filling For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. Free state tax filling After age 59½ and before age 70½. Free state tax filling   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. Free state tax filling Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. Free state tax filling Required distributions. Free state tax filling   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. Free state tax filling See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. Free state tax filling If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. Free state tax filling For purposes of the 50% excise tax, an IRA is a qualified retirement plan. Free state tax filling For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. Free state tax filling See also Excess Accumulations (Insufficient Distributions) in Publication 590. Free state tax filling Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. Free state tax filling However, see Insurance Premiums for Retired Public Safety Officers , later. Free state tax filling If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). Free state tax filling This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. Free state tax filling The rest of each payment is taxable. Free state tax filling However, see Insurance Premiums for Retired Public Safety Officers , later. Free state tax filling You figure the tax-free part of the payment using one of the following methods. Free state tax filling Simplified Method. Free state tax filling You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). Free state tax filling You cannot use this method if your annuity is paid under a nonqualified plan. Free state tax filling General Rule. Free state tax filling You must use this method if your annuity is paid under a nonqualified plan. Free state tax filling You generally cannot use this method if your annuity is paid under a qualified plan. Free state tax filling Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. Free state tax filling You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. Free state tax filling Exclusion limit. Free state tax filling   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. Free state tax filling Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Free state tax filling This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. Free state tax filling   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. Free state tax filling If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. Free state tax filling The total exclusion may be more than your cost. Free state tax filling Cost. Free state tax filling   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). Free state tax filling Your total cost in the plan includes everything that you paid. Free state tax filling It also includes amounts your employer contributed that were taxable to you when paid. Free state tax filling However, see Foreign employment contributions , later. Free state tax filling   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. Free state tax filling   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. Free state tax filling    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free state tax filling , that you receive. Free state tax filling Foreign employment contributions. Free state tax filling   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. Free state tax filling For details, see Foreign employment contributions in Publication 575. Free state tax filling Withholding. Free state tax filling   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. Free state tax filling However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. Free state tax filling (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. Free state tax filling ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. Free state tax filling   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. Free state tax filling Simplified Method. Free state tax filling   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. Free state tax filling For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. Free state tax filling For any other annuity, this number is the number of monthly annuity payments under the contract. Free state tax filling Who must use the Simplified Method. Free state tax filling   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). Free state tax filling   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. Free state tax filling If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. Free state tax filling Guaranteed payments. Free state tax filling   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. Free state tax filling If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. Free state tax filling Who cannot use the Simplified Method. Free state tax filling   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). Free state tax filling   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. Free state tax filling If you did not have to use the General Rule, you could have chosen to use it. Free state tax filling You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. Free state tax filling   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. Free state tax filling   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. Free state tax filling Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. Free state tax filling   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. Free state tax filling How to use the Simplified Method. Free state tax filling   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. Free state tax filling Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. Free state tax filling   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. Free state tax filling How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. Free state tax filling For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. Free state tax filling    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. Free state tax filling Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. Free state tax filling Single-life annuity. Free state tax filling   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. Free state tax filling Enter on line 3 the number shown for your age on your annuity starting date. Free state tax filling This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Free state tax filling Multiple-lives annuity. Free state tax filling   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. Free state tax filling Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. Free state tax filling For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. Free state tax filling For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. Free state tax filling Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. Free state tax filling   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. Free state tax filling Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. Free state tax filling This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Free state tax filling Fixed-period annuities. Free state tax filling   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. Free state tax filling Line 6. Free state tax filling   The amount on line 6 should include all amounts that could have been recovered in prior years. Free state tax filling If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. Free state tax filling    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. Free state tax filling Example. Free state tax filling Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. Free state tax filling Bill's annuity starting date is January 1, 2013. Free state tax filling The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. Free state tax filling Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. Free state tax filling Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. Free state tax filling Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. Free state tax filling See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. Free state tax filling You can find a blank version of this worksheet in Publication 575. Free state tax filling (The references in the illustrated worksheet are to sections in Publication 575). Free state tax filling His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. Free state tax filling Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). Free state tax filling Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. Free state tax filling The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. Free state tax filling If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. Free state tax filling This deduction is not subject to the 2%-of-adjusted-gross-income limit. Free state tax filling Worksheet 2-A. Free state tax filling Simplified Method Worksheet—Illustrated 1. Free state tax filling Enter the total pension or annuity payments received this year. Free state tax filling Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Free state tax filling $ 14,400 2. Free state tax filling Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. Free state tax filling 31,000   Note. Free state tax filling If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Free state tax filling Otherwise, go to line 3. Free state tax filling     3. Free state tax filling Enter the appropriate number from Table 1 below. Free state tax filling But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. Free state tax filling 310 4. Free state tax filling Divide line 2 by the number on line 3 4. Free state tax filling 100 5. Free state tax filling Multiply line 4 by the number of months for which this year's payments were made. Free state tax filling If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Free state tax filling Otherwise, go to line 6 5. Free state tax filling 1,200 6. Free state tax filling Enter any amount previously recovered tax free in years after 1986. Free state tax filling This is the amount shown on line 10 of your worksheet for last year 6. Free state tax filling 0 7. Free state tax filling Subtract line 6 from line 2 7. Free state tax filling 31,000 8. Free state tax filling Enter the smaller of line 5 or line 7 8. Free state tax filling 1,200 9. Free state tax filling Taxable amount for year. Free state tax filling Subtract line 8 from line 1. Free state tax filling Enter the result, but not less than zero. Free state tax filling Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Free state tax filling Note. Free state tax filling If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Free state tax filling If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. Free state tax filling 9. Free state tax filling $ 13,200 10. Free state tax filling Was your annuity starting date before 1987? □ Yes. Free state tax filling STOP. Free state tax filling Do not complete the rest of this worksheet. Free state tax filling  ☑ No. Free state tax filling Add lines 6 and 8. Free state tax filling This is the amount you have recovered tax free through 2013. Free state tax filling You will need this number if you need to fill out this worksheet next year. Free state tax filling 10. Free state tax filling 1,200 11. Free state tax filling Balance of cost to be recovered. Free state tax filling Subtract line 10 from line 2. Free state tax filling If zero, you will not have to complete this worksheet next year. Free state tax filling The payments you receive next year will generally be fully taxable 11. Free state tax filling $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Free state tax filling   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . Free state tax filling . Free state tax filling . Free state tax filling   BEFORE November 19, 1996, enter on line 3 . Free state tax filling . Free state tax filling . Free state tax filling AFTER November 18, 1996, enter on line 3 . Free state tax filling . Free state tax filling . Free state tax filling   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . Free state tax filling . Free state tax filling . Free state tax filling   THEN enter on line 3 . Free state tax filling . Free state tax filling . Free state tax filling         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. Free state tax filling   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. Free state tax filling   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. Free state tax filling The retiree's cost has already been recovered tax free. Free state tax filling   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. Free state tax filling The resulting tax-free amount will then remain fixed. Free state tax filling Any increases in the survivor annuity are fully taxable. Free state tax filling   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. Free state tax filling See Simplified Method , earlier. Free state tax filling How to report. Free state tax filling   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. Free state tax filling If your pension or annuity is fully taxable, enter it on line 16b. Free state tax filling Do not make an entry on line 16a. Free state tax filling   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. Free state tax filling If your pension or annuity is fully taxable, enter it on line 12b. Free state tax filling Do not make an entry on line 12a. Free state tax filling   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. Free state tax filling If your pension or annuity is fully taxable, enter it on line 17b. Free state tax filling Do not make an entry on line 17a. Free state tax filling Example. Free state tax filling You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. Free state tax filling You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). Free state tax filling The entire $1,200 is taxable. Free state tax filling You include $1,200 only on Form 1040, line 16b. Free state tax filling Joint return. Free state tax filling   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. Free state tax filling Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. Free state tax filling Form 1099-R. Free state tax filling   You should receive a Form 1099-R for your pension or annuity. Free state tax filling Form 1099-R shows your pension or annuity for the year and any income tax withheld. Free state tax filling You should receive a Form W-2 if you receive distributions from certain nonqualified plans. Free state tax filling You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. Free state tax filling Generally, you should be sent these forms by January 31, 2014. Free state tax filling Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. Free state tax filling Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. Free state tax filling For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. Free state tax filling The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. Free state tax filling See Tax on Early Distributions, later. Free state tax filling Lump-sum distributions. Free state tax filling   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. Free state tax filling The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. Free state tax filling The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. Free state tax filling You may be able to use the 10-year tax option to figure tax on the ordinary income part. Free state tax filling Form 1099-R. Free state tax filling   If you receive a total distribution from a plan, you should receive a Form 1099-R. Free state tax filling If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. Free state tax filling The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. Free state tax filling More information. Free state tax filling   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. Free state tax filling Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. Free state tax filling The tax applies to the taxable part of the distribution. Free state tax filling For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). Free state tax filling  An IRA is also a qualified retirement plan for purposes of this tax. Free state tax filling General exceptions to tax. Free state tax filling   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. Free state tax filling Additional exceptions. Free state tax filling   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. Free state tax filling See Publication 575 for details. Free state tax filling Reporting tax. Free state tax filling   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. Free state tax filling 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. Free state tax filling See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. Free state tax filling Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. Free state tax filling Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. Free state tax filling However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. Free state tax filling For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). Free state tax filling  An IRA is also a qualified retirement plan for purposes of this tax. Free state tax filling An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. Free state tax filling 5% owners. Free state tax filling   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. Free state tax filling See Publication 575 for more information. Free state tax filling Amount of tax. Free state tax filling   If you do not receive the required minimum distribution, you are subject to an additional tax. Free state tax filling The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. Free state tax filling You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. Free state tax filling Form 5329. Free state tax filling   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. Free state tax filling Additional information. Free state tax filling   For more detailed information on the tax on excess accumulation, see Publication 575. Free state tax filling Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. Free state tax filling The premiums can be for coverage for you, your spouse, or dependent(s). Free state tax filling The distribution must be made directly from the plan to the insurance provider. Free state tax filling You can exclude from income the smaller of the amount of the insurance premiums or $3,000. Free state tax filling You can only make this election for amounts that would otherwise be included in your income. Free state tax filling The amount excluded from your income cannot be used to claim a medical expense deduction. Free state tax filling An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. Free state tax filling If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. Free state tax filling The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. Free state tax filling Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Free state tax filling Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Free state tax filling Enter “PSO” next to the appropriate line on which you report the taxable amount. Free state tax filling Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. Free state tax filling These categories are treated differently for income tax purposes. Free state tax filling Social security equivalent benefits. Free state tax filling   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. Free state tax filling This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. Free state tax filling (See Social Security and Equivalent Railroad Retirement Benefits , later. Free state tax filling ) Non-social security equivalent benefits. Free state tax filling   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). Free state tax filling It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. Free state tax filling This category of benefits is treated as an amount received from a qualified employee plan. Free state tax filling This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. Free state tax filling Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. Free state tax filling More information. Free state tax filling   For more information about railroad retirement benefits, see Publication 575. Free state tax filling Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. Free state tax filling But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. Free state tax filling For more information, including information about veterans' benefits and insurance, see Publication 525. Free state tax filling Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Free state tax filling Social security benefits include monthly retirement, survivor, and disability benefits. Free state tax filling They do not include supplemental security income (SSI) payments, which are not taxable. Free state tax filling Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Free state tax filling They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Free state tax filling If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. Free state tax filling Are Any of Your Benefits Taxable? Note. Free state tax filling When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Free state tax filling  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Free state tax filling When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Free state tax filling S. Free state tax filling savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. Free state tax filling Figuring total income. Free state tax filling   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. Free state tax filling If that total amount is more than your base amount, part of your benefits may be taxable. Free state tax filling If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Free state tax filling Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. Free state tax filling If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. Free state tax filling If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Free state tax filling Worksheet 2-B. Free state tax filling A Quick Way To Check if Your Benefits May Be Taxable A. Free state tax filling Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Free state tax filling Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. Free state tax filling (If you received more than one form, combine the amounts from box 5  and enter the total. Free state tax filling ) A. Free state tax filling     Note. Free state tax filling If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. Free state tax filling     B. Free state tax filling Enter one-half of the amount on line A B. Free state tax filling   C. Free state tax filling Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Free state tax filling   D. Free state tax filling Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. Free state tax filling S. Free state tax filling savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. Free state tax filling   E. Free state tax filling Add lines B, C, and D and enter the total E. Free state tax filling   F. Free state tax filling If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. Free state tax filling   G. Free state tax filling Is the amount on line F less than or equal to the amount on line E? □ No. Free state tax filling None of your benefits are taxable this year. Free state tax filling  □ Yes. Free state tax filling Some of your benefits may be taxable. Free state tax filling To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. Free state tax filling     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. Free state tax filling Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Free state tax filling It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Free state tax filling If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Free state tax filling Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Free state tax filling Your repayments are shown in box 4. Free state tax filling The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Free state tax filling Use the amount in box 5 to figure whether any of your benefits are taxable. Free state tax filling Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. Free state tax filling If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. Free state tax filling If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. Free state tax filling For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. Free state tax filling How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. Free state tax filling Generally, the higher that total amount, the greater the taxable part of your benefits. Free state tax filling Maximum taxable part. Free state tax filling   The taxable part of your benefits usually cannot be more than 50%. Free state tax filling However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Free state tax filling The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Free state tax filling You are married filing separately and lived with your spouse at any time during 2013. Free state tax filling   If you are a nonresident alien, 85% of your benefits are taxable. Free state tax filling However, this income is exempt under some tax treaties. Free state tax filling Which worksheet to use. Free state tax filling   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. Free state tax filling However, you will need to use a different worksheet(s) if any of the following situations applies to you. Free state tax filling You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. Free state tax filling In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. Free state tax filling Situation (1) does not apply and you take one or more of the following exclusions. Free state tax filling Interest from qualified U. Free state tax filling S. Free state tax filling savings bonds (Form 8815). Free state tax filling Employer-provided adoption benefits (Form 8839). Free state tax filling Foreign earned income or housing (Form 2555 or Form 2555-EZ). Free state tax filling Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. Free state tax filling In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. Free state tax filling You received a lump-sum payment for an earlier year. Free state tax filling In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Free state tax filling See Lump-Sum Election , later. Free state tax filling How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. Free state tax filling You cannot use Form 1040EZ. Free state tax filling Reporting on Form 1040. Free state tax filling   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. Free state tax filling If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. Free state tax filling Reporting on Form 1040A. Free state tax filling   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. Free state tax filling If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. Free state tax filling Reporting on Form 1040NR. Free state tax filling   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. Free state tax filling Benefits not taxable. Free state tax filling   If you are filing Form 1040EZ, do not report any benefits on your tax return. Free state tax filling If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. Free state tax filling Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free state tax filling If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free state tax filling Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. Free state tax filling This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. Free state tax filling No part of the lump-sum death benefit is subject to tax. Free state tax filling For more information about the lump-sum death benefit, visit the Social Security Administration website at www. Free state tax filling SSA. Free state tax filling gov, and use keyword: death benefit. Free state tax filling Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Free state tax filling However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. Free state tax filling You can elect this method if it lowers your taxable benefits. Free state tax filling See Publication 915 for more information. Free state tax filling Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. Free state tax filling If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Free state tax filling If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. Free state tax filling If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. Free state tax filling S. Free state tax filling Railroad Retirement Board field office. Free state tax filling Joint return. Free state tax filling   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. Free state tax filling You do this to get your net benefits when figuring if your combined benefits are taxable. Free state tax filling Repayment of benefits received in an earlier year. Free state tax filling   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. Free state tax filling   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Free state tax filling Claim it on Schedule A (Form 1040), line 23. Free state tax filling   If this deduction is more than $3,000, you have to follow some special instructions. Free state tax filling See Publication 915 for those instructions. Free state tax filling Sickness and Injury Benefits Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. Free state tax filling If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. Free state tax filling However, certain payments may not be taxable to you. Free state tax filling Some of these payments are discussed later in this section. Free state tax filling Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. Free state tax filling Cost paid by you. Free state tax filling   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. Free state tax filling If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. Free state tax filling Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. Free state tax filling You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. Free state tax filling Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Free state tax filling If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. Free state tax filling See Credit for the Elderly or the Disabled, later. Free state tax filling For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. Free state tax filling Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Free state tax filling Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. Free state tax filling For more information on pensions and annuities, see Publication 575. Free state tax filling Retirement and profit-sharing plans. Free state tax filling   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. Free state tax filling The payments must be reported as a pension or annuity. Free state tax filling Accrued leave payment. Free state tax filling   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. Free state tax filling The payment is not a disability payment. Free state tax filling Include it in your income in the tax year you receive it. Free state tax filling Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. Free state tax filling Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. Free state tax filling However, the amount you can exclude may be limited. Free state tax filling Long-term care insurance contracts are discussed in more detail in Publication 525. Free state tax filling Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. Free state tax filling The exemption also applies to your survivors. Free state tax filling The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. Free state tax filling If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. Free state tax filling For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. Free state tax filling Return to work. Free state tax filling   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. Free state tax filling Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. Free state tax filling Federal Employees' Compensation Act (FECA). Free state tax filling   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. Free state tax filling However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. Free state tax filling Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. Free state tax filling Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. Free state tax filling    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. Free state tax filling For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. Free state tax filling Other compensation. Free state tax filling   Many other amounts you receive as compensation for sickness or injury are not taxable. Free state tax filling These include the following amounts. Free state tax filling Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. Free state tax filling Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. Free state tax filling Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). Free state tax filling This compensation must be based only on the injury and not on the period of your absence from work. Free state tax filling These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. Free state tax filling Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. Free state tax filling This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. Free state tax filling Proceeds not received in installments. Free state tax filling   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. Free state tax filling If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. Free state tax filling Proceeds received in installments. Free state tax filling   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. Free state tax filling   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. Free state tax filling Include anything over this excluded part in your income as interest. Free state tax filling Installments for life. Free state tax filling   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. Free state tax filling If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. Free state tax filling Surviving spouse. Free state tax filling   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. Free state tax filling If you remarry, you can continue to take the exclusion. Free state tax filling Surrender of policy for cash. Free state tax filling   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Free state tax filling In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. Free state tax filling You should receive a Form 1099-R showing the total proceeds and the taxable part. Free state tax filling Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. Free state tax filling Endowment Contract Proceeds An endowment contract is a policy that pays over to you a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. Free state tax filling Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. Free state tax filling To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. Free state tax filling Include in your income the part of the lump-sum payment that is more than your cost. Free state tax filling Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. Free state tax filling The tax treatment of an annuity is explained in Publication 575. Free state tax filling For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. Free state tax filling This election must be made within 60 days after the lump-sum payment first becomes payable to you. Free state tax filling Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. Free state tax filling However, see Exception , later. Free state tax filling For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Free state tax filling Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. Free state tax filling In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. Free state tax filling Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill. Free state tax filling To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. Free state tax filling Terminally or chronically ill defined. Free state tax filling   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. Free state tax filling A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. Free state tax filling The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. Free state tax filling The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. Free state tax filling Exception. Free state tax filling   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. Free state tax filling Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. Free state tax filling Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. Free state tax filling You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. Free state tax filling Main home. Free state tax filling   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Free state tax filling Repaying the first-time homebuyer credit because you sold your home. Free state tax filling   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. Free state tax filling For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. Free state tax filling   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. Free state tax filling If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. Free state tax filling If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. Free state tax filling   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. Free state tax filling Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. Free state tax filling You meet the ownership test. Free state tax filling You meet the use test. Free state tax filling During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. Free state tax filling You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . Free state tax filling Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. Free state tax filling This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). Free state tax filling Exception to ownership and use tests. Free state tax filling   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. Free state tax filling Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. Free state tax filling The maximum amount you can exclude will be reduced. Free state tax filling See Publication 523, Selling Your Home, for more information. Free state tax filling Exception to use test for individuals with a disability. Free state tax filling   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. Free state tax filling Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. Free state tax filling   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. Free state tax filling Exception to ownership test for property acquired in a like-kind exchange. Free state tax filling   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. Free state tax filling This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. Free state tax filling A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. Free state tax filling See Publication 523 for more information. Free state tax filling Period of nonqualified use. Free state tax filling   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. Free state tax filling Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. Free state tax filling See Publication 523 for more information. Free state tax filling Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. Free state tax filling However, see Special rules for joint returns , next. Free state tax filling Special rules for joint returns. Free state tax filling   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. Free state tax filling You are married and file a joint return for the year. Free state tax filling Either you or your spouse meets the ownership test. Free state tax filling Both you and your spouse meet the use test. Free state tax filling During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. Free state tax filling Sale of home by surviving spouse. Free state tax filling   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. Free state tax filling   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. Free state tax filling The sale or exchange took place no more than 2 years after the date of death of your spouse. Free state tax filling You have not remarried. Free state tax filling You and your spouse met the use test at the time of your spouse's death. Free state tax filling You or your spouse met the ownership test at the time of your spouse's death. Free state tax filling Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. Free state tax filling Home transferred from spouse. Free state tax filling   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. Free state tax filling Use of home after divorce. Free state tax filling   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. Free state tax filling Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. Free state tax filling However, you must meet the ownership and use tests. Free state tax filling See Publication 523 for more information. Free state tax filling Depreciation after May 6, 1997. Free state tax filling   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. Free state tax filling See Publication 523 for more information. Free state tax filling Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. Free state tax filling If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. Free state tax filling Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. Free state tax filling If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. Free state tax filling See Publication 523 for more information. Free state tax filling Reverse Mortgages A revers
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

New Hampshire Office of the Attorney General

Website: New Hampshire Office of the Attorney General

Address: New Hampshire Office of the Attorney General
Consumer Protection and Antitrust Bureau
33 Capitol St.
Concord, NH 03301

Phone Number: 603-271-3641

Toll-free: 1-888-468-4454 (Consumer Protection Hotline)

TTY: 1-800-735-2964 (NH)

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

State Banking Department

Website: State Banking Department

Address: State Banking Department
53 Regional Dr., Suite 200
Concord, NH 03301

Phone Number: 603-271-3561

Toll-free: 1-800-437-5991

TTY: 1-800-735-2964

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Insurance Department

Website: Insurance Department

Address: Insurance Department
21 S. Fruit St., Suite 14
Concord, NH 03301

Phone Number: 603-271-2261

Toll-free: 1-800-852-3416 (NH)

TTY: 1-800-735-2964 (NH)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Secretary of State

Website: Secretary of State

Address: Secretary of State
Bureau of Securities Regulation
107 N. Main St., #204
Concord, NH 03301

Phone Number: 603-271-1463

Toll-free: 1-800-994-4200

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Utilities Commission

Website: Public Utilities Commission

Address: Public Utilities Commission
Consumer Affairs Division
21 S. Fruit St., Suite 10
Concord, NH 03301-2429

Phone Number: 603-271-2431

Toll-free: 1-800-852-3793 (NH)

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The Free State Tax Filling

Free state tax filling Publication 947 - Main Content Table of Contents Practice Before the IRSWhat Is Practice Before the IRS? Who Can Practice Before the IRS? Who Cannot Practice Before the IRS? How Does an Individual Become Enrolled? What Are the Rules of Practice? Authorizing a RepresentativeWhat Is a Power of Attorney? When Is a Power of Attorney Required? When Is a Power of Attorney Not Required? How Do I Fill Out Form 2848? What Happens to the Power of Attorney When Filed? How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Free state tax filling Practice Before the IRS The Office of Professional Responsibility and the Return Preparer Office generally are responsible for administering and enforcing the regulations governing practice before the IRS. Free state tax filling The Office of Professional Responsibility generally has responsibility for matters related to practitioner conduct and exclusive responsibility for discipline, including disciplinary proceedings and sanctions. Free state tax filling The Return Preparer Office is responsible for matters related to the authority to practice, including acting on applications for enrollment and administering competency testing and continuing education. Free state tax filling What Is Practice Before the IRS? Practice before the IRS covers all matters relating to any of the following. Free state tax filling Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS. Free state tax filling Representing a taxpayer at conferences, hearings, or meetings with the IRS. Free state tax filling Preparing and filing documents, including tax returns, with the IRS for a taxpayer. Free state tax filling Providing a client with written advice which has a potential for tax avoidance or evasion. Free state tax filling Furnishing information at the request of the IRS or appearing as a witness for the taxpayer is not practice before the IRS. Free state tax filling Who Can Practice Before the IRS? The following individuals can practice before the IRS. Free state tax filling However, any individual who is recognized to practice (a recognized representative) must be designated as the taxpayer's representative and file a written declaration with the IRS stating that he or she is authorized and qualified to represent a particular taxpayer. Free state tax filling Form 2848 can be used for this purpose. Free state tax filling Attorneys. Free state tax filling   Any attorney who is not currently under suspension or disbarment from practice before the IRS and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Free state tax filling Certified public accountants (CPAs). Free state tax filling   Any CPA who is not currently under suspension or disbarment from practice before the IRS and who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Free state tax filling Enrolled agents. Free state tax filling   Any enrolled agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Free state tax filling Enrolled retirement plan agents. Free state tax filling   Any enrolled retirement plan agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Free state tax filling The practice of enrolled retirement plan agents is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Free state tax filling Enrolled actuaries. Free state tax filling   Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Free state tax filling The practice of enrolled actuaries is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Free state tax filling Student. Free state tax filling    Under certain circumstances, a student who is supervised by a practitioner may request permission to represent another person before the IRS. Free state tax filling For more information, see Authorization for special appearances, later. Free state tax filling Registered tax return preparers and unenrolled return preparers. Free state tax filling   A registered tax return preparer is an individual who has passed an IRS competency test and is authorized to prepare and sign tax returns as the preparer. Free state tax filling An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or regulations) to sign the return. Free state tax filling   Registered tax return preparers and unenrolled return preparers may only represent taxpayers before revenue agents, customer service representatives, or similar officers and employees of the Internal Revenue Service (including the Taxpayer Advocate Service) during an examination of the taxable year or period covered by the tax return they prepared and signed. Free state tax filling Registered tax return preparers and unenrolled return preparers cannot represent taxpayers, regardless of the circumstances requiring representation, before appeals officers, revenue officers, counsel or similar officers or employees of the Internal Revenue Service or the Department of Treasury. Free state tax filling Registered tax return preparers and unenrolled return preparers cannot execute closing agreements, extend the statutory period for tax assessments or collection of tax, execute waivers, execute claims for refund, or sign any document on behalf of a taxpayer. Free state tax filling   If the unenrolled return preparer does not meet the requirements for limited representation, you may file Form 8821 to allow the preparer to inspect your tax information and receive copies of notices sent to you by the IRS. Free state tax filling See Form 8821. Free state tax filling Practice denied. Free state tax filling   Any individual engaged in limited practice before the IRS who is involved in disreputable conduct is subject to disciplinary action. Free state tax filling Disreputable conduct includes, but is not limited to, the list of items under Incompetence and Disreputable Conduct shown later under What Are the Rules of Practice. Free state tax filling Other individuals who may serve as representatives. Free state tax filling   Because of their special relationship with a taxpayer, the following individuals can represent the specified taxpayers before the IRS, provided they present satisfactory identification and, except in the case of an individual described in (1) below, proof of authority to represent the taxpayer. Free state tax filling An individual. Free state tax filling An individual can represent himself or herself before the IRS and does not have to file a written declaration of qualification and authority. Free state tax filling A family member. Free state tax filling An individual can represent members of his or her immediate family. Free state tax filling Immediate family includes a spouse, child, parent, brother, or sister of the individual. Free state tax filling An officer. Free state tax filling A bona fide officer of a corporation (including a parent, subsidiary, or other affiliated corporation), association, or organized group can represent the corporation, association, or organized group. Free state tax filling An officer of a governmental unit, agency, or authority, in the course of his or her official duties, can represent the organization before the IRS. Free state tax filling A partner. Free state tax filling A general partner may represent the partnership before the IRS. Free state tax filling An employee. Free state tax filling A regular full-time employee can represent his or her employer. Free state tax filling An employer can be, but is not limited to, an individual, partnership, corporation (including a parent, subsidiary, or other affiliated corporation), association, trust, receivership, guardianship, estate, organized group, governmental unit, agency, or authority. Free state tax filling A fiduciary. Free state tax filling A fiduciary (trustee, executor, personal representative, administrator, receiver, or guardian) stands in the position of a taxpayer and acts as the taxpayer, not as a representative. Free state tax filling See Fiduciary under When Is a Power of Attorney Not Required, later. Free state tax filling Representation Outside the United States Any individual may represent an individual or entity, who is outside the United States, before personnel of the IRS when such representation occurs outside the United States. Free state tax filling See section 10. Free state tax filling 7(c)(1)(vii) of Circular 230. Free state tax filling Authorization for Special Appearances The Commissioner of Internal Revenue, or delegate, can authorize an individual who is not otherwise eligible to practice before the IRS to represent another person for a particular matter. Free state tax filling The prospective representative must request this authorization in writing from the Office of Professional Responsibility. Free state tax filling However, it is granted only when extremely compelling circumstances exist. Free state tax filling If granted, the Commissioner, or delegate, will issue a letter that details the conditions related to the appearance and the particular tax matter for which the authorization is granted. Free state tax filling The authorization letter should not be confused with a letter from an IRS center advising an individual that he or she has been assigned a Centralized Authorization File (CAF) number. Free state tax filling The issuance of a CAF number does not indicate that an individual is either recognized or authorized to practice before the IRS. Free state tax filling It merely confirms that a centralized file for authorizations has been established for the individual under that number. Free state tax filling Students in LITCs and the STCP. Free state tax filling   A student who works in a Low Income Taxpayer Clinic (LITC) or Student Tax Clinic Program (STCP) who is supervised by a practitioner may request permission to represent another person before the IRS. Free state tax filling Authorization requests must be made to the Office of Professional Responsibility. Free state tax filling If granted, a letter authorizing the student's special appearance and detailing any conditions related to the appearance will be issued. Free state tax filling Students receiving an authorization letter generally can represent taxpayers before any IRS function or office subject to any conditions in the authorization letter. Free state tax filling If you intend to have a student represent you, review the authorization letter and ask your student, your student's supervisor, or the Office of Professional Responsibility if you have questions about the terms of the authorization. Free state tax filling Who Cannot Practice Before the IRS? In general, individuals who are not eligible or who have lost the privilege as a result of certain actions cannot practice before the IRS. Free state tax filling If an individual loses eligibility to practice, the IRS will not recognize a power of attorney that names the individual as a representative. Free state tax filling Corporations, associations, partnerships, and other persons that are not individuals. Free state tax filling   These organizations (or persons) are not eligible to practice before the IRS. Free state tax filling Loss of Eligibility Generally, individuals lose their eligibility to practice before the IRS in the following ways. Free state tax filling Not meeting the requirements for renewal of enrollment (such as continuing professional education). Free state tax filling Requesting to be placed in inactive retirement status. Free state tax filling Being suspended or disbarred by the Office of Professional Responsibility for violating the regulations governing practice before the IRS. Free state tax filling Failure to meet requirements. Free state tax filling   Individuals who fail to comply with the requirements for eligibility for renewal of enrollment will be notified by the IRS. Free state tax filling The notice will explain the reason for noncompliance and provide the individual with an opportunity to furnish information for reconsideration. Free state tax filling The individual has 60 days from the date of the notice to respond. Free state tax filling Inactive roster. Free state tax filling   An individual will be placed on the roster of inactive individuals for a period of three years, if he or she: Fails to respond timely to the notice of noncompliance with the renewal requirements, Fails to file timely the application for renewal, or Does not satisfy the requirements of eligibility for renewal. Free state tax filling The individual must file an application for renewal and satisfy all requirements for renewal after being placed in inactive status. Free state tax filling Otherwise, at the conclusion of the next renewal cycle, he or she will be removed from the roster and the enrollment or registration terminated. Free state tax filling Inactive retirement status. Free state tax filling   Individuals who request to be placed in an inactive retirement status will be ineligible to practice before the IRS. Free state tax filling They must continue to adhere to all renewal requirements. Free state tax filling They can be reinstated to an active enrollment status by filing an application for renewal and providing evidence that they have completed the required continuing professional education hours for the enrollment cycle or registration year. Free state tax filling Suspension and disbarment. Free state tax filling   Individuals authorized to practice before the IRS are subject to disciplinary proceedings and may be suspended or disbarred for violating any regulation governing practice before the IRS. Free state tax filling This includes engaging in acts of disreputable conduct. Free state tax filling For more information, see Incompetence and Disreputable Conduct under What are the Rules of Practice, later. Free state tax filling   Practitioners who are suspended in a disciplinary proceeding are not allowed to practice before the IRS during the period of suspension. Free state tax filling See What Is Practice Before the IRS, earlier. Free state tax filling   Practitioners who are disbarred in a disciplinary proceeding are not allowed to practice before the IRS. Free state tax filling However, a practitioner can seek reinstatement from the Office of Professional Responsibility five years after disbarment. Free state tax filling   If the practitioner seeks reinstatement, he or she may not practice before the IRS until the Office of Professional Responsibility authorizes reinstatement. Free state tax filling The Office of Professional Responsibility may reinstate the practitioner if it is determined that: The practitioner's future conduct is not likely to be in violation of the regulations, and Granting the reinstatement would not be contrary to the public interest. Free state tax filling How Does an Individual Become Enrolled? The Return Preparer Office can grant enrollment to practice before the IRS to an applicant who demonstrates special competence in tax matters by passing a written examination administered by the IRS. Free state tax filling Enrollment also can be granted to an applicant who qualifies because of past service and technical experience in the IRS. Free state tax filling In either case, certain application forms, discussed next, must be filed. Free state tax filling Additionally, an applicant must not have engaged in any conduct that would justify suspension or disbarment from practice before the IRS. Free state tax filling See Incompetence and Disreputable Conduct, later. Free state tax filling Form 2587. Free state tax filling   Applicants can apply to take the special enrollment examination by filing Form 2587, Application for Special Enrollment Examination. Free state tax filling Form 2587 can be filed online, by mail, or by fax. Free state tax filling For more information, see instructions and fees listed on the form. Free state tax filling To get Form 2587, see How To Get Tax Help, later. Free state tax filling Form 23 and Form 23-EP. Free state tax filling   Individuals who have passed the examination or are applying on the basis of past service and technical experience with the IRS can apply for enrollment by filing Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, or Form 23-EP, Application for Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent. Free state tax filling The application must include a check or money order in the amount of the fee shown on Form 23 or Form 23-EP. Free state tax filling Alternatively, payment may be made electronically pursuant to instructions on the forms. Free state tax filling To get Form 23 or Form 23-EP, see How To Get Tax Help, later. Free state tax filling Form 5434. Free state tax filling   An individual may apply as an enrolled actuary on the basis of past employment with the IRS and technical experience by filing Form 5434, Application for Enrollment, with the Joint Board for the Enrollment of Actuaries. Free state tax filling The application must include a check or money order in the amount of the fee shown on Form 5434. Free state tax filling To get Form 5434, see How To Get Tax Help, later. Free state tax filling Period of enrollment. Free state tax filling   An enrollment card will be issued to each individual whose enrollment application is approved. Free state tax filling The individual is enrolled until the expiration date shown on the enrollment card or certificate. Free state tax filling To continue practicing beyond the expiration date, the individual must request renewal of the enrollment by filing Form 8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service, or Form 8554-EP, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent (ERPA). Free state tax filling What Are the Rules of Practice? The rules governing practice before the IRS are published in the Code of Federal Regulations at 31 C. Free state tax filling F. Free state tax filling R. Free state tax filling part 10 and reprinted in Treasury Department Circular No. Free state tax filling 230 (Circular 230). Free state tax filling An attorney, CPA, enrolled agent, enrolled retirement plan agent, registered tax return preparer, or enrolled actuary authorized to practice before the IRS (referred to hereafter as a practitioner) has the duty to perform certain acts and is restricted from performing other acts. Free state tax filling In addition, a practitioner cannot engage in disreputable conduct (discussed later). Free state tax filling Any practitioner who does not comply with the rules of practice or engages in disreputable conduct is subject to disciplinary action. Free state tax filling Also, unenrolled preparers must comply with the rules of practice and conduct to exercise the privilege of limited practice before the IRS. Free state tax filling See Publication 470 for a discussion of the special rules for limited practice by unenrolled preparers. Free state tax filling Duties Practitioners must promptly submit records or information requested by officers or employees of the IRS, except when the practitioner believes on reasonable belief and good faith that the information is privileged. Free state tax filling Communications with respect to tax advice between a federally authorized tax practitioner and a taxpayer generally are confidential to the same extent that communication would be privileged if it were between a taxpayer and an attorney if the advice relates to: Noncriminal tax matters before the IRS, or Noncriminal tax proceedings brought in federal court by or against the United States. Free state tax filling Communications regarding corporate tax shelters. Free state tax filling   This protection of tax advice communications does not apply to any written communications between a federally authorized tax practitioner and any person, including a director, shareholder, officer, employee, agent, or representative of a corporation if the communication involves the promotion of the direct or indirect participation of the corporation in any tax shelter. Free state tax filling Duty to advise. Free state tax filling   A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return, document, affidavit, or other required paper, has the responsibility to advise the client promptly of the noncompliance, error, or omission, and the consequences of the noncompliance, error, or omission. Free state tax filling Due diligence. Free state tax filling   A practitioner must exercise due diligence when performing the following duties. Free state tax filling Preparing or assisting in the preparing, approving, and filing of returns, documents, affidavits, and other papers relating to IRS matters. Free state tax filling Determining the correctness of oral or written representations made by him or her to the Department of the Treasury. Free state tax filling Determining the correctness of oral or written representations made by him or her to clients with reference to any matter administered by the IRS. Free state tax filling Restrictions Practitioners are restricted from engaging in certain practices. Free state tax filling The following paragraphs discuss some of these restricted practices. Free state tax filling Delays. Free state tax filling   A practitioner must not unreasonably delay the prompt disposition of any matter before the IRS. Free state tax filling Assistance from disbarred or suspended persons and former IRS employees. Free state tax filling   A practitioner must not knowingly, directly or indirectly, do the following. Free state tax filling Accept assistance from, or assist, any person who is under disbarment or suspension from practice before the IRS if the assistance relates to matters considered practice before the IRS. Free state tax filling Accept assistance from any former government employee where provisions of Circular 230 or any federal law would be violated. Free state tax filling Performance as a notary. Free state tax filling   A practitioner who is a notary public and is employed as counsel, attorney, or agent in a matter before the IRS, or has a material interest in the matter, cannot engage in any notary activities related to that matter. Free state tax filling Negotiations of taxpayer refund checks. Free state tax filling   Practitioners must not endorse or otherwise negotiate (cash) any refund check (including directing or accepting payment by any means, electronic or otherwise, in an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to the taxpayer. Free state tax filling Incompetence and Disreputable Conduct Any practitioner or unenrolled return preparer may be disbarred or suspended from practice before the IRS, or censured, for incompetence or disreputable conduct. Free state tax filling The following list contains examples of conduct that is considered disreputable. Free state tax filling Being convicted of any criminal offense under the revenue laws or of any offense involving dishonesty or breach of trust. Free state tax filling Knowingly giving false or misleading information in connection with federal tax matters, or participating in such activity. Free state tax filling Soliciting employment by prohibited means as discussed in section 10. Free state tax filling 30 of Circular 230. Free state tax filling Willfully failing to file a federal tax return, evading or attempting to evade any federal tax or payment, or participating in such actions. Free state tax filling Misappropriating, or failing to properly and promptly remit, funds received from clients for payment of taxes or other obligations due the United States. Free state tax filling Directly or indirectly attempting to influence the official action of IRS employees by the use of threats, false accusations, duress, or coercion, or by offering gifts, favors, or any special inducements. Free state tax filling Being disbarred or suspended from practice as an attorney, CPA, public accountant, or actuary, by the District of Columbia or any state, possession, territory, commonwealth, or any federal court, or any federal agency, body, or board. Free state tax filling Knowingly aiding and abetting another person to practice before the IRS during a period of suspension, disbarment, or ineligibility of that other person. Free state tax filling Using abusive language, making false accusations and statements knowing them to be false, circulating or publishing malicious or libelous matter, or engaging in any contemptuous conduct in connection with practice before the IRS. Free state tax filling Giving a false opinion knowingly, recklessly, or through gross incompetence; or following a pattern of providing incompetent opinions in questions arising under the federal tax laws. Free state tax filling Censure, Disbarments, and Suspensions The Office of Professional Responsibility may censure or institute proceedings to censure, suspend or disbar any attorney, CPA, or enrolled agent who has violated Circular 230. Free state tax filling A practitioner will be given the opportunity to demonstrate compliance with the rules before any disciplinary action is taken. Free state tax filling Authorizing a Representative You may either represent yourself, or you may authorize an individual to represent you before the IRS. Free state tax filling If you chose to have someone represent you, your representative must be a person eligible to practice before the IRS. Free state tax filling See Who Can Practice Before the IRS, earlier. Free state tax filling What Is a Power of Attorney? A power of attorney is your written authorization for an individual to act on your behalf. Free state tax filling If the authorization is not limited, the individual generally can perform all acts that you can perform. Free state tax filling The authority granted to a registered tax return preparer or an unenrolled preparer is limited. Free state tax filling For information on the limits regarding registered tax return preparers, see Circular 230 §10. Free state tax filling 3(f). Free state tax filling For information on the limits regarding unenrolled preparers, see Publication 470. Free state tax filling Acts performed. Free state tax filling   Any representative, other than a registered tax return preparer or an unenrolled return preparer, can usually perform the following acts. Free state tax filling Represent you before any office of the IRS. Free state tax filling Sign an offer or a waiver of restriction on assessment or collection of a tax deficiency, or a waiver of notice of disallowance of claim for credit or refund. Free state tax filling Sign a consent to extend the statutory time period for assessment or collection of a tax. Free state tax filling Sign a closing agreement. Free state tax filling Signing your return. Free state tax filling   The representative named under a power of attorney is not permitted to sign your income tax return unless: The signature is permitted under the Internal Revenue Code and the related regulations (see Regulations section 1. Free state tax filling 6012-1(a)(5)). Free state tax filling You specifically authorize this in your power of attorney. Free state tax filling For example, the regulation permits a representative to sign your return if you are unable to sign the return due to: Disease or injury. Free state tax filling Continuous absence from the United States (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return. Free state tax filling Other good cause if specific permission is requested of and granted by the IRS. Free state tax filling When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. Free state tax filling For more information, see the Form 2848 instructions. Free state tax filling Limitation on substitution or delegation. Free state tax filling   A recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized by you on the power of attorney. Free state tax filling   After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. Free state tax filling If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent you. Free state tax filling Disclosure of returns to a third party. Free state tax filling   Your representative cannot execute consents that will allow the IRS to disclose tax return or return information to a third party unless you specifically delegate this authority to your representative on line 5 of Form 2848. Free state tax filling Incapacity or incompetency. Free state tax filling   A power of attorney is generally terminated if you become incapacitated or incompetent. Free state tax filling   The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on line 5 “Other” of the Form 2848 and if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. Free state tax filling See Non-IRS powers of attorney, later. Free state tax filling When Is a Power of Attorney Required? Submit a power of attorney when you want to authorize an individual to represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney. Free state tax filling A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf. Free state tax filling Represent you at a meeting with the IRS. Free state tax filling Prepare and file a written response to the IRS. Free state tax filling Form Required Use Form 2848 to appoint a recognized representative to act on your behalf before the IRS. Free state tax filling Individuals recognized to practice before the IRS are listed under Part II, Declaration of Representative, of Form 2848. Free state tax filling Your representative must complete that part of the form. Free state tax filling Non-IRS powers of attorney. Free state tax filling   The IRS will accept a non-IRS power of attorney, but a completed Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. Free state tax filling For more information, see Processing a non-IRS power of attorney, later. Free state tax filling   If you want to use a power of attorney document other than Form 2848, it must contain the following information. Free state tax filling Your name and mailing address. Free state tax filling Your social security number and/or employer identification number. Free state tax filling Your employee plan number, if applicable. Free state tax filling The name and mailing address of your representative(s). Free state tax filling The types of tax involved. Free state tax filling The federal tax form number. Free state tax filling The specific year(s) or period(s) involved. Free state tax filling For estate tax matters, the decedent's date of death. Free state tax filling A clear expression of your intention concerning the scope of authority granted to your representative(s). Free state tax filling Your signature and date. Free state tax filling You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. Free state tax filling This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. Free state tax filling The statement should read: I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority, I am aware of the regulations contained in Circular 230, I am authorized to represent the taxpayer(s) identified in the power of attorney, and I am an individual described in 26 CFR 601. Free state tax filling 502(b). Free state tax filling Required information missing. Free state tax filling   The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. Free state tax filling You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. Free state tax filling If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next. Free state tax filling Procedure for perfecting a non-IRS power of attorney. Free state tax filling   Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf. Free state tax filling The original non-IRS power of attorney grants authority to handle federal tax matters (for example, general authority to perform any acts). Free state tax filling The attorney-in-fact attaches a statement (signed under penalty of perjury) to the Form 2848 stating that the original non-IRS power of attorney is valid under the laws of the governing jurisdiction. Free state tax filling Example. Free state tax filling John Elm, a taxpayer, signs a non-IRS durable power of attorney that names his neighbor and CPA, Ed Larch, as his attorney-in-fact. Free state tax filling The power of attorney grants Ed the authority to perform any and all acts on John's behalf. Free state tax filling However, it does not list specific tax-related information such as types of tax or tax form numbers. Free state tax filling Shortly after John signs the power of attorney, he is declared incompetent. Free state tax filling Later, a federal tax matter arises concerning a prior year return filed by John. Free state tax filling Ed attempts to represent John before the IRS but is rejected because the durable power of attorney does not contain required information. Free state tax filling If Ed attaches a statement (signed under the penalty of perjury) that the durable power of attorney is valid under the laws of the governing jurisdiction, he can sign a completed Form 2848 and submit it on John's behalf. Free state tax filling If Ed can practice before the IRS (see Who Can Practice Before the IRS, earlier), he can name himself as representative on Form 2848. Free state tax filling Otherwise, he must name another individual who can practice before the IRS. Free state tax filling Processing a non-IRS power of attorney. Free state tax filling   The IRS has a centralized computer database system called the CAF system. Free state tax filling This system contains information on the authority of taxpayer representatives. Free state tax filling Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. Free state tax filling Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the CAF. Free state tax filling It also enables the IRS to automatically send copies of notices and other IRS communications to your representative if you specify that your representative should receive those communications. Free state tax filling   You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed Form 2848 and submitting it to the IRS. Free state tax filling Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848). Free state tax filling Preparation of Form — Helpful Hints The preparation of Form 2848 is illustrated by an example, later under How Do I Fill Out Form 2848. Free state tax filling However, the following will also assist you in preparing the form. Free state tax filling Line-by-line hints. Free state tax filling   The following hints are summaries of some of the line-by-line instructions for Form 2848. Free state tax filling Line 1—Taxpayer information. Free state tax filling   If a joint return is involved, the husband and wife each file a separate Form 2848 if they both want to be represented. Free state tax filling If only one spouse wants to be represented in the matter, that spouse files a Form 2848. Free state tax filling Line 2—Representative(s). Free state tax filling   Only individuals may be named as representatives. Free state tax filling If your representative has not been assigned a CAF number, enter “None” on that line and the IRS will issue one to your representative. Free state tax filling If the representative's address or phone number has changed since the CAF number was issued, you should check the appropriate box. Free state tax filling Enter your representative's fax number if available. Free state tax filling   If you want to name more than three representatives, attach additional Form(s) 2848. Free state tax filling The IRS can send copies of notices and communications to two of your representatives. Free state tax filling You must, however, check the boxes on line 2 of the Form 2848 if you want the IRS to routinely send copies of notices and communications to your representatives. Free state tax filling If you do not check the boxes, your representatives will not routinely receive copies of notices and communications. Free state tax filling Line 3—Tax matters. Free state tax filling   You may list any tax years or periods that have already ended as of the date you sign the power of attorney. Free state tax filling However, you may include on a power of attorney only future tax periods that end no later than 3 years after the date the power of attorney is received by the IRS. Free state tax filling The 3 future periods are determined starting after December 31 of the year the power of attorney is received by the IRS. Free state tax filling However, avoid general references such as “all years” or “all taxes. Free state tax filling ” Any Form 2848 with general references will be returned. Free state tax filling Line 4—Specific use not recorded on Centralized Authorization File (CAF). Free state tax filling   Certain matters cannot be recorded on the CAF system. Free state tax filling Examples of such matters include, but are not limited to, the following. Free state tax filling Requests for a private letter ruling or technical advice. Free state tax filling Applications for an employer identification number (EIN). Free state tax filling Claims filed on Form 843, Claim for Refund and Request for Abatement. Free state tax filling Corporate dissolutions. Free state tax filling Requests for change of accounting method. Free state tax filling Requests for change of accounting period. Free state tax filling Applications for recognition of exemption under sections 501(c)(3), 501(a), or 521 (Forms 1023, 1034, or 1028). Free state tax filling Request for a determination of the qualified status of an employee benefit plan (Forms 5300, 5307, or 5310). Free state tax filling Application for Award for Original Information under section 7623. Free state tax filling Voluntary submissions under the Employee Plans Compliance Resolution System (EPCRS). Free state tax filling Freedom of Information Act requests. Free state tax filling If the tax matter described on line 3 of Form 2848 concerns one of these matters specifically, check the box on line 4. Free state tax filling If this box is checked, the representative should mail or fax the power of attorney to the IRS office handling the matter. Free state tax filling Otherwise, the representative should bring a copy of the power of attorney to each meeting with the IRS. Free state tax filling Where To File a Power of Attorney Generally, you can mail or fax a paper Form 2848 directly to the IRS. Free state tax filling To determine where you should file Form 2848, see Where To File in the instructions for Form 2848. Free state tax filling If Form 2848 is for a specific use, mail or fax it to the office handling that matter. Free state tax filling For more information on specific use, see the Instructions for Form 2848, line 4. Free state tax filling FAX copies. Free state tax filling   The IRS will accept a copy of a power of attorney that is submitted by facsimile transmission (fax). Free state tax filling If you choose to file a power of attorney by fax, be sure the appropriate IRS office is equipped to accept this type of transmission. Free state tax filling Your representative may be able to file Form 2848 electronically via the IRS website. Free state tax filling For more information, your representative can go to www. Free state tax filling irs. Free state tax filling gov and under the Tax Professionals tab, click on e-services–Online Tools for Tax Professionals. Free state tax filling If you complete Form 2848 for electronic signature authorization, do not file Form 2848 with the IRS. Free state tax filling Instead, give it to your representative, who will retain the document. Free state tax filling Updating a power of attorney. Free state tax filling   Submit any update or modification to an existing power of attorney in writing. Free state tax filling Your signature (or the signature of the individual(s) authorized to sign on your behalf) is required. Free state tax filling Do this by sending the updated Form 2848 or non-IRS power of attorney to the IRS office(s) where you previously sent the original(s), including the center where the related return was, or will be filed. Free state tax filling   A recognized representative may substitute or delegate authority if you specifically authorize your representative to substitute or delegate representation in the original power of attorney. Free state tax filling To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed. Free state tax filling A written notice of substitution or delegation signed by the recognized representative. Free state tax filling A written declaration of representative made by the new representative. Free state tax filling A copy of the power of attorney that specifically authorizes the substitution or delegation. Free state tax filling Retention/Revocation of Prior Power(s) of Attorney A newly filed power of attorney concerning the same matter will revoke a previously filed power of attorney. Free state tax filling However, the new power of attorney will not revoke the prior power of attorney if it specifically states it does not revoke such prior power of attorney and either of the following are attached to the new power of attorney. Free state tax filling A copy of the unrevoked prior power of attorney, or A statement signed by the taxpayer listing the name and address of each representative authorized under the prior unrevoked power of attorney. Free state tax filling Note. Free state tax filling The filing of Form 2848 will not revoke any  Form 8821 that is in effect. Free state tax filling Revocation of Power of Attorney/Withdrawal of Representative If you want to revoke an existing power of attorney and do not want to name a new representative, or if a representative wants to withdraw from representation, mail or fax a copy of the previously executed power of attorney to the IRS, or if the power of attorney is for a specific matter, to the IRS office handling the matter. Free state tax filling If the taxpayer is revoking the power of attorney, the taxpayer must write “REVOKE” across the top of the first page with a current signature and date below this annotation. Free state tax filling If the representative is withdrawing from the representation, the representative must write “WITHDRAW” across the top of the first page with a current signature and date below this annotation. Free state tax filling If you do not have a copy of the power of attorney you want to revoke or withdraw, send a statement to the IRS. Free state tax filling The statement of revocation or withdrawal must indicate that the authority of the power of attorney is revoked or withdrawn, list the matters and periods, and must be signed and dated by the taxpayer or representative as applicable. Free state tax filling If the taxpayer is revoking, list the name and address of each recognized representative whose authority is revoked. Free state tax filling When the taxpayer is completely revoking authority, the form should state “remove all years/periods” instead of listing the specific tax matter, years, or periods. Free state tax filling If the representative is withdrawing, list the name, TIN, and address (if known) of the taxpayer. Free state tax filling To revoke a specific use power of attorney, send the power of attorney or statement of revocation to the IRS office handling your case, using the above instructions. Free state tax filling A power of attorney held by a student will be recorded on the CAF system for 130 days from the receipt date. Free state tax filling If you are authorizing a student to represent you after that time, you will need to submit a current and valid Form 2848. Free state tax filling When Is a Power of Attorney Not Required? A power of attorney is not required when the third party is not dealing with the IRS as your representative. Free state tax filling The following situations do not require a power of attorney. Free state tax filling Providing information to the IRS. Free state tax filling Authorizing the disclosure of tax return information through Form 8821, Tax Information Authorization, or other written or oral disclosure consent. Free state tax filling Allowing the IRS to discuss return information with a third party via the checkbox provided on a tax return or other document. Free state tax filling Allowing a tax matters partner or person (TMP) to perform acts for the partnership. Free state tax filling Allowing the IRS to discuss return information with a fiduciary. Free state tax filling How Do I Fill Out Form 2848? The following example illustrates how to complete Form 2848. Free state tax filling The two completed forms for this example are shown on the next pages. Free state tax filling Example. Free state tax filling Stan and Mary Doe have been notified that their joint tax returns (Forms 1040) for 2009, 2010, and 2011 are being examined. Free state tax filling They have decided to appoint Jim Smith, an enrolled agent, to represent them in this matter and any future matters concerning these returns. Free state tax filling Jim, who has prepared returns at the same location for years, already has a Centralized Authorization File (CAF) number assigned to him. Free state tax filling Mary does not want Jim to sign any agreements on her behalf, but Stan is willing to have Jim do so. Free state tax filling They want copies of all notices and written communications sent to Jim. Free state tax filling This is the first time Stan and Mary have given power of attorney to anyone. Free state tax filling They should each complete a Form 2848 as follows. Free state tax filling Line 1—Taxpayer information. Free state tax filling   Stan and Mary must each file a separate Form 2848. Free state tax filling On his separate Form 2848, Stan enters his name, street address, and social security number in the spaces provided. Free state tax filling Mary does likewise on her separate Form 2848. Free state tax filling Line 2—Representative(s). Free state tax filling   On their separate Forms 2848, Stan and Mary each enters the name and current address of their chosen representative, Jim Smith. Free state tax filling Both Stan and Mary want Jim Smith to receive notices and communications concerning the matters identified in line 3, so on their separate Forms 2848, Stan and Mary each checks the box in the first column of line 2. Free state tax filling They also enter Mr. Free state tax filling Smith's CAF number, his telephone number, and his fax number. Free state tax filling Mr. Free state tax filling Smith's address, telephone number, and fax number have not changed since the IRS issued his CAF number, so Stan and Mary do not check the boxes in the second column. Free state tax filling Line 3—Tax Matters. Free state tax filling   On their separate Forms 2848, Stan and Mary each enters “income” for the type of tax, “1040” for the form number, and “2009, 2010, and 2011” for the tax years. Free state tax filling Line 4—Specific use not recorded on Centralized Authorization File (CAF). Free state tax filling   On their separate Forms 2848, Stan and Mary make no entry on this line because they do not want to restrict the use of their powers of attorney to a specific use that is not recorded on the CAF. Free state tax filling See Preparation of Form — Helpful Hints, earlier. Free state tax filling Line 5—Acts authorized. Free state tax filling   Mary wants to sign any agreement that reflects changes to her and Stan's joint 2009, 2010, and 2011 income tax liability, so she writes “Taxpayer must sign any agreement form” on line 5 of her Form 2848. Free state tax filling Stan does not wish to restrict the authority of Jim Smith in this regard, so he leaves line 5 of his Form 2848 blank. Free state tax filling If either Mary or Stan had chosen, they could have listed other restrictions on line 5 of their separate Forms 2848. Free state tax filling Line 6—Retention/revocation of prior power(s) of attorney. Free state tax filling   Stan and Mary are each filing their first powers of attorney, so they make no entry on this line. Free state tax filling However, if they had filed prior powers of attorney, the filing of this current power would revoke any earlier ones for the same tax matter(s) unless they checked the box on line 6 and attached a copy of the prior power of attorney that they wanted to remain in effect. Free state tax filling   If Mary later decides that she can handle the examination on her own, she can revoke her power of attorney even though Stan does not revoke his power of attorney. Free state tax filling (See Revocation of Power of Attorney/Withdrawal of Representative, earlier, for the special rules that apply. Free state tax filling ) Line 7—Signature of taxpayer. Free state tax filling   Stan and Mary each signs and dates his or her Form 2848. Free state tax filling If a taxpayer does not sign, the IRS cannot accept the form. Free state tax filling Part II—Declaration of Representative. Free state tax filling   Jim Smith must complete this part of Form 2848. Free state tax filling If he does not sign this part, the IRS cannot accept the form. Free state tax filling What Happens to the Power of Attorney When Filed? A power of attorney will be recognized after it is received, reviewed, and determined by the IRS to contain the required information. Free state tax filling However, until a power of attorney is entered on the CAF system, IRS personnel may be unaware of the authority of the person you have named to represent you. Free state tax filling Therefore, during this interim period, IRS personnel may request that you or your representative bring a copy to any meeting with the IRS. Free state tax filling This image is too large to be displayed in the current screen. Free state tax filling Please click the link to view the image. Free state tax filling Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Free state tax filling Please click the link to view the image. Free state tax filling Filled-in Form 2848 - Page 2 This image is too large to be displayed in the current screen. Free state tax filling Please click the link to view the image. Free state tax filling Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Free state tax filling Please click the link to view the image. Free state tax filling Filled-in Form 2848 - Page 2 Processing and Handling How the power of attorney is processed and handled depends on whether it is a complete or incomplete document. Free state tax filling Incomplete document. Free state tax filling   If Form 2848 is incomplete, the IRS will attempt to secure the missing information either by writing or telephoning you or your representative. Free state tax filling For example, if your signature or signature date is missing, the IRS will contact you. Free state tax filling If information concerning your representative is missing and information sufficient to make a contact (such as an address and/or a telephone number) is on the document, the IRS will try to contact your representative. Free state tax filling   In either case, the power of attorney is not considered valid until all required information is entered on the document. Free state tax filling The individual(s) named as representative(s) will not be recognized to practice before the IRS, on your behalf, until the document is complete and accepted by the IRS. Free state tax filling Complete document. Free state tax filling   If the power of attorney is complete and valid, the IRS will take action to recognize the representative. Free state tax filling In most instances, this includes processing the document on the CAF system. Free state tax filling Recording the data on the CAF system enables the IRS to direct copies of mailings to authorized representatives and to readily recognize the scope of authority granted. Free state tax filling Documents not processed on CAF. Free state tax filling   Specific-use powers of attorney are not processed on the CAF system (see Preparation of Form – Helpful Hints, earlier). Free state tax filling For example, a power of attorney that is a one-time or specific-issue grant of authority is not processed on the CAF system. Free state tax filling These documents remain with the related case files. Free state tax filling In this situation, you should check the box on line 4 of Form 2848. Free state tax filling In these situations, the representative should bring a copy of the power of attorney to each meeting with the IRS. Free state tax filling Dealing With the Representative After a valid power of attorney is filed, the IRS will recognize your representative. Free state tax filling However, if it appears the representative is responsible for unreasonably delaying or hindering the prompt disposition of an IRS matter by failing to furnish, after repeated requests, nonprivileged information, the IRS can contact you directly. Free state tax filling For example, in most instances in which a power of attorney is recognized, the IRS will contact the representative to set up appointments and to provide lists of required items. Free state tax filling However, if the representative is unavailable, does not respond to repeated requests, and does not provide required items (other than items considered privileged), the IRS can bypass your representative and contact you directly. Free state tax filling If a representative engages in conduct described above, the matter can be referred to the Office of Professional Responsibility for consideration of possible disciplinary action. Free state tax filling Notices and other correspondence. Free state tax filling   If you have a recognized representative, you and the representative will routinely receive notices and other correspondence from the IRS (either the original or a copy) if you checked the box in the left column of line 2 of Form 2848. Free state tax filling If the power of attorney is processed on the CAF system, the IRS will send your representative(s) a duplicate of all computer-generated correspondence that is sent to you. Free state tax filling This includes notices and letters produced either at the Martinsburg Computing Center, or other IRS centers. Free state tax filling The IRS employee handling the case is responsible for ensuring that the original and any requested copies of each manually-generated correspondence are sent to you and your representative(s) in accordance with your authorization. Free state tax filling How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Free state tax filling By selecting the method that is best for you, you will have quick and easy access to tax help. Free state tax filling Free help with your return. Free state tax filling   Free help in preparing your return is available nationwide from IRS-certified volunteers. Free state tax filling The Volunteer Income Tax Assistance (VITA) program is designed to help low and moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Free state tax filling Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free state tax filling To find the nearest VITA or TCE site, visit IRS. Free state tax filling gov or call 1-800-906-9887 or 1-800-829-1040. Free state tax filling   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free state tax filling To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Free state tax filling aarp. Free state tax filling org/money/taxaide. Free state tax filling   For more information on these programs, go to IRS. Free state tax filling gov and enter keyword “VITA” in the upper right-hand corner. Free state tax filling Internet. Free state tax filling You can access the IRS website at IRS. Free state tax filling gov 24 hours a day, 7 days a week to: E-file your return. Free state tax filling Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Free state tax filling Check the status of your refund. Free state tax filling Go to IRS. Free state tax filling gov and click on Where's My Refund. Free state tax filling Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Free state tax filling If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Free state tax filling Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Free state tax filling Download forms, including talking tax forms, instructions, and publications. Free state tax filling Order IRS products online. Free state tax filling Research your tax questions online. Free state tax filling Search publications online by topic or keyword. Free state tax filling Use the online Internal Revenue Code, regulations, or other official guidance. Free state tax filling View Internal Revenue Bulletins (IRBs) published in the last few years. Free state tax filling Figure your withholding allowances using the withholding calculator online at www. Free state tax filling irs. Free state tax filling gov/individuals. Free state tax filling Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Free state tax filling irs. Free state tax filling gov/individuals. Free state tax filling Sign up to receive local and national tax news by email. Free state tax filling Get information on starting and operating a small business. Free state tax filling Phone. Free state tax filling Many services are available by phone. Free state tax filling   Ordering forms, instructions, and publications. Free state tax filling Call 1-800-TAX -FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Free state tax filling You should receive your order within 10 days. Free state tax filling Asking tax questions. Free state tax filling Call the IRS with your tax questions at 1-800-829-1040. Free state tax filling Solving problems. Free state tax filling You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Free state tax filling An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Free state tax filling Call your local Taxpayer Assistance Center for an appointment. Free state tax filling To find the number, go to www. Free state tax filling irs. Free state tax filling gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free state tax filling TTY/TDD equipment. Free state tax filling If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Free state tax filling TeleTax topics. Free state tax filling Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Free state tax filling Refund information. Free state tax filling To check the status of your refund, call 1-800-829-1954 or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Free state tax filling Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Free state tax filling If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Free state tax filling Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Free state tax filling If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Free state tax filling Other refund information. Free state tax filling To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Free state tax filling Evaluating the quality of our telephone services. Free state tax filling To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Free state tax filling One method is for a second IRS representative to listen in on or record random telephone calls. Free state tax filling Another is to ask some callers to complete a short survey at the end of the call. Free state tax filling Walk-in. Free state tax filling Many products and services are available on a walk-in basis. Free state tax filling   Products. Free state tax filling You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free state tax filling Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Free state tax filling Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Free state tax filling Services. Free state tax filling You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Free state tax filling An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Free state tax filling If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Free state tax filling No appointment is necessary—just walk in. Free state tax filling If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Free state tax filling A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Free state tax filling If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Free state tax filling All other issues will be handled without an appointment. Free state tax filling To find the number of your local office, go to  www. Free state tax filling irs. Free state tax filling gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free state tax filling Mail. Free state tax filling You can send your order for forms, instructions, and publications to the address below. Free state tax filling You should receive a response within 10 days after your request is received. Free state tax filling  Internal Revenue Service 1201 N. Free state tax filling Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Free state tax filling   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free state tax filling Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Free state tax filling We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Free state tax filling Remember, the worst thing you can do is nothing at all. Free state tax filling   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Free state tax filling You face (or your business is facing) an immediate threat of adverse action. Free state tax filling You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Free state tax filling   If you qualify for our help, we’ll do everything we can to get your problem resolved. Free state tax filling You will be assigned to one advocate who will be with you at every turn. Free state tax filling We have offices in every state, the District of Columbia, and Puerto Rico. Free state tax filling Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Free state tax filling And our services are always free. Free state tax filling   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Free state tax filling Our tax toolkit at www. Free state tax filling TaxpayerAdvocate. Free state tax filling irs. Free state tax filling gov can help you understand these rights. Free state tax filling   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Free state tax filling irs. Free state tax filling gov/advocate. Free state tax filling You can also call our toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Free state tax filling   TAS also handles large-scale or systemic problems that affect many taxpayers. Free state tax filling If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Free state tax filling irs. Free state tax filling gov/advocate. Free state tax filling Low Income Taxpayer Clinics (LITCs). Free state tax filling   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Free state tax filling Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Free state tax filling These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Free state tax filling Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Free state tax filling For more information and to find a clinic near you, see the LITC page on www. Free state tax filling irs. Free state tax filling gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Free state tax filling This publication is also available by calling 1-800-829-3676 or at your local IRS office. Free state tax filling Free tax services. Free state tax filling   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Free state tax filling Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Free state tax filling The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Free state tax filling The majority of the information and services listed in this publication are available to you free of charge. Free state tax filling If there is a fee associated with a resource or service, it is listed in the publication. Free state tax filling   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Free state tax filling DVD for tax products. Free state tax filling You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Free state tax filling Prior-year forms, instructions, and publications. Free state tax filling Tax Map: an electronic research tool and finding aid. Free state tax filling Tax law frequently asked questions. Free state tax filling Tax Topics from the IRS telephone response system. Free state tax filling Internal Revenue Code—Title 26 of the U. Free state tax filling S. Free state tax filling Code. Free state tax filling Links to other Internet based Tax Research Materials. Free state tax filling Fill-in, print, and save features for most tax forms. Free state tax filling Internal Revenue Bulletins. Free state tax filling Toll-free and email technical support. Free state tax filling Two releases during the year. Free state tax filling  – The first release will ship the beginning of January. Free state tax filling  – The final release will ship the beginning of March. Free state tax filling Purchase the DVD from National Technical Information Service (NTIS) at www. Free state tax filling irs. Free state tax filling gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Free state tax filling Prev  Up  Next   Home   More Online Publications