Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Hr Block Tax Return

Filing State Income Tax ReturnTurbotax 2012 Tax Return2014 1040ezFree Irs Tax Filing 2012Free Tax Usa 2011Free State EfileState Tax Return 20121040ez Filing1040 Ez Form Online1040ez State Tax FormTurbo Tax Filing2010 Federal Tax Form 1040Irs Federal Tax Tables 2011Free Tax Extension Form2010 TaxFile 1040ez OnlineTaxact For 2011Filing 2012 TaxesNeed Help Filing A 1040x1040ez State Tax FormH&r Block Taxcut Free FileFiling Late Taxes For 20112011 Income Tax Forms 1040ezTax Ez Form 20111040ez Amended ReturnH&r Block Tax FormHrblock FreePrior Year Tax ReturnsIrs 1040ez 2012File Form 1040ez2012 E File1040nr Software FreeCan I Efile My 2011 TaxesDownload 2010 Tax FormsWhere Can I Get A 2012 Tax FormWhere To File 2012 Tax Return1040ez FormH&r Block Advantage E FileState Income Tax ReturnTax Act Online 2009

Hr Block Tax Return

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

IRS Gives Tax Relief To Oklahoma Tornado Victims; Return Filing and Tax Payment Deadlines Extended to Sept. 30

Updated 7/02/2013 to include LeFlore, Okfuskee and Okmulgee counties.
Updated 6/13/2013 to include Canadian County.

IRS YouTube Videos
Help for Disaster Victims: English | Spanish | ASL
How to Request a Copy of Your Tax Return: English | Spanish | ASL

Podcast
Disaster Assistance: English | Spanish

IR-2013-53, May 21, 2013

WASHINGTON –– After Monday’s devastating tornado in Moore and Oklahoma City,   the Internal Revenue Service today provided tax relief to individuals and businesses affected by this and other severe storms occurring in parts of Oklahoma.

Following Monday’s disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Canadian, Cleveland, LeFlore, Lincoln, McClain, Okfuskee, Oklahoma, Okmulgee and Pottawatomie counties will receive special tax relief. Other locations may be added in coming days based on additional damage assessments by FEMA.

The tax relief postpones various tax filing and payment deadlines that occurred starting on May 18, 2013. As a result, affected individuals and businesses will have until Sept. 30, 2013 to file these returns and pay any taxes due. This includes the June 17 and Sept. 16 deadlines for making estimated tax payments. A variety of business tax deadlines are also affected including the July 31 deadline for second quarter payroll and excise tax returns and the Sept. 3 deadline for truckers filing highway use tax returns.

The IRS will abate any interest, late-payment or late-filing penalty that would otherwise apply. The agency automatically provides this relief to any taxpayer located in the disaster area. Taxpayers need not contact the IRS to get this relief.

Beyond the relief provided to taxpayers in the FEMA-designated counties, the IRS will work with any taxpayer who lives outside the disaster area but whose books, records or tax professional are located in the areas affected by these storms. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.

Individuals and businesses who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either last year’s or this year’s return. Claiming these casualty loss deductions on either an original or amended 2012 return will get the taxpayer an earlier refund but waiting to claim them on a 2013 return could result in greater tax savings depending upon other income factors.

In addition, the IRS is waiving failure-to-deposit penalties for federal payroll and excise tax deposits normally due on or after May 18 and before June 3 if the deposits are made by June 3, 2013. Details on available relief can be found on the disaster relief page on IRS.gov.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

The IRS is actively monitoring the situation and will provide additional relief if needed.

See also: 

Tax Relief for Victims of Severe Storms and Tornadoes in Oklahoma

Extra Time Granted for Tax-Exempt Bond Issuers Affected by Severe Storms and Tornados in Oklahoma

Follow the IRS on New Media
Subscribe to IRS Newswire

Page Last Reviewed or Updated: 04-Sep-2013

The Hr Block Tax Return

Hr block tax return Publication 597 - Main Content Table of Contents Application of Treaty Personal Services Pensions, Annuities, Social Security, and AlimonyRoth IRAs. Hr block tax return Tax-deferred plans. Hr block tax return Investment Income From Canadian Sources Other Income Charitable ContributionsQualified charities. Hr block tax return Income Tax Credits Competent Authority Assistance How To Get Tax HelpText of Treaty U. Hr block tax return S. Hr block tax return Taxation Canadian Taxation Application of Treaty The benefits of the income tax treaty are generally provided on the basis of residence for income tax purposes. Hr block tax return That is, a person who is recognized as a resident of the United States who has income from Canada, will often pay less income tax to Canada on that income than if no treaty was in effect. Hr block tax return Article IV provides definitions of residents of Canada and the United States, and provides specific criteria for applying the treaty in cases where a taxpayer is considered by both countries to be a resident. Hr block tax return Saving clause. Hr block tax return   In most instances, a treaty does not affect the right of a country to tax its own residents (including those who are U. Hr block tax return S. Hr block tax return citizens) or of the United States to tax its residents or citizens (including U. Hr block tax return S. Hr block tax return citizens who are residents of the foreign country). Hr block tax return This provision is known as the “saving clause. Hr block tax return ”   For example, an individual who is a U. Hr block tax return S. Hr block tax return citizen and a resident of Canada may have dividend income from a U. Hr block tax return S. Hr block tax return corporation. Hr block tax return The treaty provides a maximum rate of 15% on dividends received by a resident of Canada from sources in the United States. Hr block tax return Even though a resident of Canada, the individual is a U. Hr block tax return S. Hr block tax return citizen and the saving clause overrides the treaty article that limits the U. Hr block tax return S. Hr block tax return tax to 15%. Hr block tax return    Exceptions to the saving clause can be found in Article XXIX, paragraph 3. Hr block tax return Treaty-based position. Hr block tax return   If you take the position that any U. Hr block tax return S. Hr block tax return tax is overruled or otherwise reduced by a U. Hr block tax return S. Hr block tax return treaty (a treaty-based position), you generally must disclose that position on Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), and attach it to your return. Hr block tax return Personal Services A U. Hr block tax return S. Hr block tax return citizen or resident who is temporarily present in Canada during the tax year is exempt from Canadian income taxes on pay for services performed, or remittances received from the United States, if the citizen or resident qualifies under one of the treaty exemption provisions set out below. Hr block tax return Income from employment (Article XV). Hr block tax return   Income U. Hr block tax return S. Hr block tax return residents receive for the performance of dependent personal services in Canada (except as public entertainers) is exempt from Canadian tax if it is not more than $10,000 in Canadian currency for the year. Hr block tax return If it is more than $10,000 for the year, it is exempt only if: The residents are present in Canada for no more than 183 days in any 12-month period beginning or ending in the year concerned, and The income is not paid by, or on behalf of, a Canadian resident and is not borne by a permanent establishment in Canada. Hr block tax return    Whether there is a permanent establishment in Canada is determined by the rules set forth in Article V. Hr block tax return Example. Hr block tax return You are a U. Hr block tax return S. Hr block tax return resident employed under an 8-month contract with a Canadian firm to install equipment in their Montreal plant. Hr block tax return During the calendar year you were physically present in Canada for 179 days and were paid $16,500 (Canadian) for your services. Hr block tax return Although you were in Canada for not more than 183 days during the year, your income is not exempt from Canadian income tax because it was paid by a Canadian resident and was more than $10,000 (Canadian) for the year. Hr block tax return Pay received by a U. Hr block tax return S. Hr block tax return resident for work regularly done in more than one country as an employee on a ship, aircraft, motor vehicle, or train operated by a U. Hr block tax return S. Hr block tax return resident is exempt from Canadian tax. Hr block tax return Income from self-employment (Article VII). Hr block tax return   Income from services performed (other than those performed as an employee) are taxed in Canada if they are attributable to a permanent establishment in Canada. Hr block tax return This income is treated as business profits, and deductions similar to those allowed under U. Hr block tax return S. Hr block tax return law are allowable. Hr block tax return   If you carry on (or have carried on) business in both Canada and the United States, the business profits are attributable to each country based on the profits that the permanent establishment might be expected to make if it were a distinct and separate person engaged in the same or similar activities. Hr block tax return The business profits attributable to the permanent establishment include only those profits derived from assets used, risks assumed, and activities performed by the permanent establishment. Hr block tax return   You may be considered to have a permanent establishment if you meet certain conditions. Hr block tax return For more information, see Article V (Permanent Establishment) and Article VII (Business Profits). Hr block tax return Public entertainers (Article XVI). Hr block tax return   The provisions under income from employment or income from self-employment do not apply to public entertainers (such as theater, motion picture, radio, or television artistes, musicians, or athletes) from the United States who receive more than $15,000 in gross receipts in Canadian currency, including reimbursed expenses, from their entertainment activities in Canada during the calendar year. Hr block tax return However, this provision for public entertainers does not apply (and the other provisions will apply) to athletes participating in team sports in leagues with regularly scheduled games in both the United States and Canada. Hr block tax return Compensation paid by the U. Hr block tax return S. Hr block tax return Government (Article XIX). Hr block tax return   Wages, salaries, and similar income (other than pensions) paid to a U. Hr block tax return S. Hr block tax return citizen by the United States or any of its agencies, instrumentalities, or political subdivisions for discharging governmental functions are exempt from Canadian income tax. Hr block tax return   The exemption does not apply to pay for services performed in connection with any trade or business carried on for profit by the United States, or any of its agencies, instrumentalities, or political subdivisions. Hr block tax return Students and apprentices (Article XX). Hr block tax return   A full-time student, apprentice, or business trainee who is in Canada to study or acquire business experience is exempt from Canadian income tax on remittances received from any source outside Canada for maintenance, education, or training. Hr block tax return The recipient must be or must have been a U. Hr block tax return S. Hr block tax return resident immediately before visiting Canada. Hr block tax return   An apprentice or business trainee can claim this exemption only for a period of one year from the date the individual first arrived in Canada for the purpose of training. Hr block tax return Pensions, Annuities, Social Security, and Alimony Under Article XVIII, pensions and annuities from Canadian sources paid to U. Hr block tax return S. Hr block tax return residents are subject to tax by Canada, but the tax is limited to 15% of the gross amount (if a periodic pension payment) or of the taxable amount (if an annuity). Hr block tax return Canadian pensions and annuities paid to U. Hr block tax return S. Hr block tax return residents may be taxed by the United States, but the amount of any pension included in income for U. Hr block tax return S. Hr block tax return tax purposes may not be more than the amount that would be included in income in Canada if the recipient were a Canadian resident. Hr block tax return Pensions. Hr block tax return   A pension includes any payment under a pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances, and payments under a sickness, accident, or disability plan. Hr block tax return It includes pensions paid by private employers and the government for services rendered. Hr block tax return   Pensions also include payments from individual retirement arrangements (IRAs) in the United States, registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) in Canada. Hr block tax return   Pensions do not include social security benefits. Hr block tax return Roth IRAs. Hr block tax return   A distribution from a Roth IRA is exempt from Canadian tax to the extent it would be exempt from U. Hr block tax return S. Hr block tax return tax if paid to a U. Hr block tax return S. Hr block tax return resident. Hr block tax return In addition, you may elect to defer any tax in Canada on income accrued within the Roth IRA but not distributed by the Roth IRA. Hr block tax return However, you cannot defer tax on any accruals due to contributions made after you become a Canadian resident. Hr block tax return Tax-deferred plans. Hr block tax return   Generally, income that accrues in a Canadian RRSP or RRIF is subject to U. Hr block tax return S. Hr block tax return tax, even if it is not distributed. Hr block tax return However, a U. Hr block tax return S. Hr block tax return citizen or resident can elect to defer U. Hr block tax return S. Hr block tax return tax on income from the plan until the income is distributed. Hr block tax return Form 8891 is used to make the election. Hr block tax return Annuities. Hr block tax return    An annuity is a stated sum payable periodically at stated times, during life, or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). Hr block tax return Annuities do not include: Non-periodic payments, or An annuity the cost of which was deductible for tax purposes. Hr block tax return Special rules. Hr block tax return    Special rules apply to pensions and annuities with respect to: Short-term assignments, Cross-border commuters, and Individuals who participate in a Canadian qualifying plan. Hr block tax return Generally, distributions in such cases are deemed to be earned in the country in which the plan is established, without regard to where the services were rendered. Hr block tax return Social security benefits. Hr block tax return   U. Hr block tax return S. Hr block tax return social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. Hr block tax return Alimony. Hr block tax return   Alimony and similar amounts (including child support payments) from Canadian sources paid to U. Hr block tax return S. Hr block tax return residents are exempt from Canadian tax. Hr block tax return For purposes of U. Hr block tax return S. Hr block tax return tax, these amounts are excluded from income to the same extent they would be excluded from income in Canada if the recipient was a Canadian resident. Hr block tax return Investment Income From Canadian Sources The treaty provides beneficial treatment for certain items of Canadian source income that result from an investment of capital. Hr block tax return Dividends (Article X). Hr block tax return   For Canadian source dividends received by U. Hr block tax return S. Hr block tax return residents, the Canadian income tax generally may not be more than 15%. Hr block tax return   A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary's voting stock. Hr block tax return However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation. Hr block tax return   These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment. Hr block tax return Interest (Article XI). Hr block tax return   Generally, Canadian source interest received by U. Hr block tax return S. Hr block tax return residents is exempt from Canadian income tax. Hr block tax return   The exemption does not apply if the owner of the interest carries on, or has carried on, a business in Canada through a permanent establishment and the debt on which the income is paid is effectively connected with that permanent establishment. Hr block tax return Gains from the sale of property (Article XIII). Hr block tax return   Generally, gains from the sale of personal property by a U. Hr block tax return S. Hr block tax return resident having no permanent establishment in Canada are exempt from Canadian income tax. Hr block tax return However, the exemption from Canadian tax does not apply to gains realized by U. Hr block tax return S. Hr block tax return residents on Canadian real property, and on personal property belonging to a permanent establishment in Canada. Hr block tax return   If the property subject to Canadian tax is a capital asset and was owned by the U. Hr block tax return S. Hr block tax return resident on September 26, 1980, not as part of the business property of a permanent establishment in Canada, generally the taxable gain is limited to the appreciation after 1984. Hr block tax return Royalties (Article XII). Hr block tax return   The following are exempt from Canadian tax: Copyright royalties and other like payments for the production or reproduction of any literary, dramatic, musical, or artistic work (other than payments for motion pictures and works on film, videotape, or other means of reproduction for use in connection with television, which may be taxed at 10%), Payments for the use of, or the right to use, computer software, Payments for the use of, or the right to use, any patent or any information concerning industrial, commercial, or scientific experience (but not within a rental or franchise agreement), and Payments for broadcasting as agreed to in an exchange of notes between the countries. Hr block tax return   This rate or exemption does not apply if the owner of the royalties carries on, or has carried on, a business in Canada through a permanent establishment and the right or property on which the income is paid is effectively connected with that permanent establishment. Hr block tax return   This exemption (or lower rate) does not apply to royalties to explore for or to exploit mineral deposits, timber, and other natural resources. Hr block tax return Other Income Generally, Canadian source income that is not specifically mentioned in the treaty, may be taxed by Canada. Hr block tax return Gambling losses. Hr block tax return   Canadian residents may deduct gambling losses in the U. Hr block tax return S. Hr block tax return against gambling winnings in the U. Hr block tax return S. Hr block tax return in the same manner as a U. Hr block tax return S. Hr block tax return resident. Hr block tax return Charitable Contributions United States income tax return. Hr block tax return   Under Article XXI, you may deduct contributions to certain qualified Canadian charitable organizations on your United States income tax return. Hr block tax return Besides being subject to the overall limits applicable to all your charitable contributions under U. Hr block tax return S. Hr block tax return tax law, your charitable contributions to Canadian organizations (other than contributions to a college or university at which you or a member of your family is or was enrolled) are subject to the U. Hr block tax return S. Hr block tax return percentage limits on charitable contributions, applied to your Canadian source income. Hr block tax return If your return does not include gross income from Canadian sources, charitable contributions to Canadian organizations are generally not deductible. Hr block tax return Example. Hr block tax return You are a U. Hr block tax return S. Hr block tax return citizen living in Canada. Hr block tax return You have both U. Hr block tax return S. Hr block tax return and Canadian source income. Hr block tax return During your tax year, you contribute to Canadian organizations that would qualify as charitable organizations under U. Hr block tax return S. Hr block tax return tax law if they were U. Hr block tax return S. Hr block tax return organizations. Hr block tax return To figure the maximum amount of the contribution to Canadian organizations that you can deduct on your U. Hr block tax return S. Hr block tax return income tax return, multiply your adjusted gross income from Canadian sources by the percentage limit that applies to contributions under U. Hr block tax return S. Hr block tax return income tax law. Hr block tax return Then include this amount on your return along with all your domestic charitable contributions, subject to the appropriate percentage limit required for contributions under U. Hr block tax return S. Hr block tax return income tax law. Hr block tax return The appropriate percentage limit for U. Hr block tax return S. Hr block tax return tax purposes is applied to your total adjusted gross income from all sources. Hr block tax return Qualified charities. Hr block tax return   These Canadian organizations must meet the qualifications that a U. Hr block tax return S. Hr block tax return charitable organization must meet under U. Hr block tax return S. Hr block tax return tax law. Hr block tax return Usually an organization will notify you if it qualifies. Hr block tax return For further information on charitable contributions and the U. Hr block tax return S. Hr block tax return percentage limits, see Publication 526, Charitable Contributions. Hr block tax return Canadian income tax return. Hr block tax return   Under certain conditions, contributions to qualified U. Hr block tax return S. Hr block tax return charitable organizations may also be claimed on your Canadian income tax return if you are a Canadian resident. Hr block tax return Income Tax Credits The treaty contains a credit provision (Article XXIV) for the elimination of double taxation. Hr block tax return In general, the United States and Canada both allow a credit against their income tax for the income tax paid to the other country on income from sources in that other country. Hr block tax return For detailed discussions of the U. Hr block tax return S. Hr block tax return income tax treatment of tax paid to foreign countries, see Publication 514, Foreign Tax Credit for Individuals. Hr block tax return See paragraphs (4) and (5) of Article XXIV for certain provisions that affect the computation of the credit allowed by the United States for Canadian income taxes paid by U. Hr block tax return S. Hr block tax return citizens residing in Canada. Hr block tax return Competent Authority Assistance Under Article XXVI, a U. Hr block tax return S. Hr block tax return citizen or resident may request assistance from the U. Hr block tax return S. Hr block tax return competent authority when the actions of Canada, the United States, or both, potentially result in double taxation or taxation contrary to the treaty. Hr block tax return The U. Hr block tax return S. Hr block tax return competent authority may then consult with the Canadian competent authority to determine if the double taxation or denial of treaty benefits in question can be avoided. Hr block tax return If the competent authorities are not able to reach agreement in a case, binding arbitration proceedings may apply. Hr block tax return It is important that your request for competent authority assistance be made as soon as you have been notified by either Canada or the United States of proposed adjustments that would result in denial of treaty benefits or in double taxation. Hr block tax return This is so that implementation of any agreement reached by the competent authorities is not barred by administrative, legal, or procedural barriers. Hr block tax return For information that you should include with your request for competent authority assistance, see Revenue Procedure 2006-54, 2006-49 IRB 1035, available at www. Hr block tax return irs. Hr block tax return gov/irb/2006-49_IRB/ar13. Hr block tax return html. Hr block tax return The request should be addressed to:  Deputy Commissioner (International) Large Business and International Division Attn: Office of Tax Treaty  Internal Revenue Service 1111 Constitution Ave. Hr block tax return , NW Routing: MA3-322A Washington, D. Hr block tax return C. Hr block tax return 20024 In addition to a timely request for assistance, you should take the following measures: File a timely protective claim for credit or refund of U. Hr block tax return S. Hr block tax return taxes on Form 1040X, Form 1120X, or amended Form 1041, whichever is appropriate. Hr block tax return This will, among other things, give you the benefit of a foreign tax credit in case you do not qualify for the treaty benefit in question. Hr block tax return For figuring this credit, attach either Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), or Form 1118, Foreign Tax Credit — Corporations, as appropriate. Hr block tax return Attach your protective claim to your request for competent authority assistance. Hr block tax return Take appropriate action under Canadian procedures to avoid the lapse or termination of your right of appeal under Canadian income tax law. Hr block tax return 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 and the Canada Revenue Agency in several ways. Hr block tax return Text of Treaty You can get the text of the U. Hr block tax return S. Hr block tax return —Canada income tax treaty from: Superintendent of Documents U. Hr block tax return S. Hr block tax return Government Printing Office P. Hr block tax return O. Hr block tax return Box 371954 Pittsburgh, PA 15250-7954 The treaty can also be found on the Internet at IRS. Hr block tax return gov. Hr block tax return U. Hr block tax return S. Hr block tax return Taxation During the filing season, the IRS conducts a taxpayer assistance program in Canada. Hr block tax return To find out if IRS personnel will be in your area, you should contact the consular office at the nearest U. Hr block tax return S. Hr block tax return Embassy or consulate. Hr block tax return Mail. Hr block tax return For answers to technical or account questions, you can write to:   Internal Revenue Service International Section Philadelphia, PA 19255-0525 Phone. Hr block tax return You can call the IRS for help at (267) 941-1000 (not a toll-free call). Hr block tax return Canadian Taxation You can get information on Canadian taxation from the Canada Revenue Agency. Hr block tax return The International Tax Services Office can be contacted on 1-800-267-5177 (from anywhere in Canada and the U. Hr block tax return S. Hr block tax return ) or on the Internet at www. Hr block tax return cra-arc. Hr block tax return gc. Hr block tax return ca. Hr block tax return Prev  Up  Next   Home   More Online Publications