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Military Tax Return

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Military Tax Return

Military tax return 1. Military tax return   Filing Information Table of Contents What's New Reminders Introduction Do I Have To File a Return?Individuals—In General Dependents Certain Children Under Age 19 or Full-Time Students Self-Employed Persons Aliens Who Should File Which Form Should I Use?Form 1040EZ Form 1040A Form 1040 Does My Return Have To Be on Paper?IRS e-file When Do I Have To File?Private delivery services. Military tax return Extensions of Time To File How Do I Prepare My Return?When Do I Report My Income and Expenses? Social Security Number (SSN) Presidential Election Campaign Fund Computations Attachments Third Party Designee Signatures Paid Preparer Refunds Amount You Owe Gift To Reduce Debt Held by the Public Name and Address Where Do I File? What Happens After I File?What Records Should I Keep? Why Keep Records? Kinds of Records to Keep Basic Records How Long to Keep Records Refund Information Interest on Refunds Change of Address What If I Made a Mistake?Amended Returns and Claims for Refund Penalties Identity Theft What's New Filing status for same-sex married couple. Military tax return   If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Military tax return See Publication 501 for more information. Military tax return Additional Medicare Tax. Military tax return  Beginning in 2013, a 0. Military tax return 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. Military tax return For more information, see the Instructions for Form 1040, line 60, and Form 8959. Military tax return Net Investment Income Tax. Military tax return  Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). Military tax return NIIT is a 3. Military tax return 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. Military tax return For more information, see the Instructions for Form 1040, line 60, and Form 8960. Military tax return Refundable credit for prior year minimum tax. Military tax return  The refundable portion of the credit for prior year minimum tax is no longer available. Military tax return Who must file. Military tax return  Generally, the amount of income you can receive before you must file a return has been increased. Military tax return See Table 1-1, Table 1-2, and Table 1-3 for the specific amounts. Military tax return Reminders File online. Military tax return  Rather than filing a return on paper, you may be able to file electronically using IRS e-file. Military tax return Create your own personal identification number (PIN) and file a completely paperless tax return. Military tax return For more information, see Does My Return Have To Be on Paper , later. Military tax return Change of address. Military tax return  If you change your address, you should notify the IRS. Military tax return You can use Form 8822 to notify the IRS of the change. Military tax return See Change of Address , later, under What Happens After I File. Military tax return Enter your social security number. Military tax return  You must enter your social security number (SSN) in the spaces provided on your tax return. Military tax return If you file a joint return, enter the SSNs in the same order as the names. Military tax return Direct deposit of refund. Military tax return  Instead of getting a paper check, you may be able to have your refund deposited directly into your account at a bank or other financial institution. Military tax return See Direct Deposit under Refunds, later. Military tax return If you choose direct deposit of your refund, you may be able to split the refund among two or three accounts. Military tax return Pay online or by phone. Military tax return  If you owe additional tax, you may be able to pay online or by phone. Military tax return See How To Pay , later. Military tax return Installment agreement. Military tax return  If you cannot pay the full amount due with your return, you may ask to make monthly installment payments. Military tax return See Installment Agreement , later, under Amount You Owe. Military tax return You may be able to apply online for a payment agreement if you owe federal tax, interest, and penalties. Military tax return Automatic 6-month extension. Military tax return  You can get an automatic 6-month extension to file your tax return if, no later than the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Military tax return S. Military tax return Individual Income Tax Return. Military tax return See Automatic Extension , later. Military tax return Service in combat zone. Military tax return  You are allowed extra time to take care of your tax matters if you are a member of the Armed Forces who served in a combat zone, or if you served in the combat zone in support of the Armed Forces. Military tax return See Individuals Serving in Combat Zone , later, under When Do I Have To File. Military tax return Adoption taxpayer identification number. Military tax return  If a child has been placed in your home for purposes of legal adoption and you will not be able to get a social security number for the child in time to file your return, you may be able to get an adoption taxpayer identification number (ATIN). Military tax return For more information, see Social Security Number (SSN) , later. Military tax return Taxpayer identification number for aliens. Military tax return  If you or your dependent is a nonresident or resident alien who does not have and is not eligible to get a social security number, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Military tax return For more information, see Social Security Number (SSN) , later. Military tax return Frivolous tax submissions. Military tax return  The IRS has published a list of positions that are identified as frivolous. Military tax return The penalty for filing a frivolous tax return is $5,000. Military tax return Also, the $5,000 penalty will apply to other specified frivolous submissions. Military tax return For more information, see Civil Penalties , later. Military tax return Introduction This chapter discusses the following topics. Military tax return Whether you have to file a return. Military tax return Which form to use. Military tax return How to file electronically. Military tax return When, how, and where to file your return. Military tax return What happens if you pay too little or too much tax. Military tax return What records you should keep and how long you should keep them. Military tax return How you can change a return you have already filed. Military tax return Do I Have To File a Return? You must file a federal income tax return if you are a citizen or resident of the United States or a resident of Puerto Rico and you meet the filing requirements for any of the following categories that apply to you. Military tax return Individuals in general. Military tax return (There are special rules for surviving spouses, executors, administrators, legal representatives, U. Military tax return S. Military tax return citizens and residents living outside the United States, residents of Puerto Rico, and individuals with income from U. Military tax return S. Military tax return possessions. Military tax return ) Dependents. Military tax return Certain children under age 19 or full-time students. Military tax return Self-employed persons. Military tax return Aliens. Military tax return The filing requirements for each category are explained in this chapter. Military tax return The filing requirements apply even if you do not owe tax. Military tax return Even if you do not have to file a return, it may be to your advantage to do so. Military tax return See Who Should File, later. Military tax return File only one federal income tax return for the year regardless of how many jobs you had, how many Forms W-2 you received, or how many states you lived in during the year. Military tax return Do not file more than one original return for the same year, even if you have not gotten your refund or have not heard from the IRS since you filed. Military tax return Individuals—In General If you are a U. Military tax return S. Military tax return citizen or resident, whether you must file a return depends on three factors: Your gross income, Your filing status, and Your age. Military tax return To find out whether you must file, see Table 1-1, Table 1-2, and Table 1-3. Military tax return Even if no table shows that you must file, you may need to file to get money back. Military tax return (See Who Should File , later. Military tax return ) Gross income. Military tax return   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Military tax return It also includes income from sources outside the United States or from the sale of your main home (even if you can exclude all or part of it). Military tax return Include part of your social security benefits if: You were married, filing a separate return, and you lived with your spouse at any time during 2013; or Half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Military tax return If either (1) or (2) applies, see the instructions for Form 1040 or 1040A, or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the social security benefits you must include in gross income. Military tax return   Common types of income are discussed in Part Two of this publication. Military tax return Community income. Military tax return   If you are married and your permanent home is in a community property state, half of any income described by state law as community income may be considered yours. Military tax return This affects your federal taxes, including whether you must file if you do not file a joint return with your spouse. Military tax return See Publication 555, Community Property, for more information. Military tax return Nevada, Washington, and California domestic partners. Military tax return   A registered domestic partner in Nevada, Washington, or California generally must report half the combined community income of the individual and his or her domestic partner. Military tax return See Publication 555. Military tax return Self-employed individuals. Military tax return   If you are self-employed, your gross income includes the amount on line 7 of Schedule C (Form 1040), Profit or Loss From Business; line 1 of Schedule C-EZ (Form 1040), Net Profit From Business; and line 9 of Schedule F (Form 1040), Profit or Loss From Farming. Military tax return See Self-Employed Persons , later, for more information about your filing requirements. Military tax return    If you do not report all of your self-employment income, your social security benefits may be lower when you retire. Military tax return Filing status. Military tax return   Your filing status depends on whether you are single or married and on your family situation. Military tax return Your filing status is determined on the last day of your tax year, which is December 31 for most taxpayers. Military tax return See chapter 2 for an explanation of each filing status. Military tax return Age. Military tax return   If you are 65 or older at the end of the year, you generally can have a higher amount of gross income than other taxpayers before you must file. Military tax return See Table 1-1. Military tax return You are considered 65 on the day before your 65th birthday. Military tax return For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Military tax return Table 1-1. Military tax return 2013 Filing Requirements for Most Taxpayers IF your filing status is. Military tax return . Military tax return . Military tax return AND at the end of 2013 you  were. Military tax return . Military tax return . Military tax return * THEN file a return if  your gross income  was at least. Military tax return . Military tax return . Military tax return ** single under 65 $10,000     65 or older $11,500   married filing jointly*** under 65 (both spouses) $20,000     65 or older (one spouse) $21,200     65 or older (both spouses) $22,400   married filing separately any age $3,900   head of household under 65 $12,850     65 or older $14,350   qualifying widow(er) with dependent child under 65 $16,100   65 or older $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Military tax return ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Military tax return Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Military tax return If (a) or (b) applies, see the Instructions for Form 1040 or 1040A or Publication 915 to figure the taxable part of social security benefits you must include in gross income. Military tax return Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Military tax return Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Military tax return But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. Military tax return *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Military tax return Surviving Spouses, Executors, Administrators, and Legal Representatives You must file a final return for a decedent (a person who died) if both of the following are true. Military tax return You are the surviving spouse, executor, administrator, or legal representative. Military tax return The decedent met the filing requirements at the date of death. Military tax return For more information on rules for filing a decedent's final return, see Publication 559, Survivors, Executors, and Administrators. Military tax return U. Military tax return S. Military tax return Citizens and Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you received abroad, including any income you can exclude under the foreign earned income exclusion. Military tax return For information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Military tax return S. Military tax return Citizens and Resident Aliens Abroad. Military tax return It is available online and at most U. Military tax return S. Military tax return embassies and consulates. Military tax return See How To Get Tax Help in the back of this publication. Military tax return Residents of Puerto Rico If you are a U. Military tax return S. Military tax return citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Military tax return S. Military tax return income tax return for any year in which you meet the income requirements. Military tax return This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Military tax return If you are a bona fide resident of Puerto Rico for the entire year, your U. Military tax return S. Military tax return gross income does not include income from sources within Puerto Rico. Military tax return It does, however, include any income you received for your services as an employee of the United States or a U. Military tax return S. Military tax return agency. Military tax return If you receive income from Puerto Rican sources that is not subject to U. Military tax return S. Military tax return tax, you must reduce your standard deduction. Military tax return As a result, the amount of income you must have before you are required to file a U. Military tax return S. Military tax return income tax return is lower than the applicable amount in Table 1-1 or Table 1-2. Military tax return For more information, see Publication 570, Tax Guide for Individuals With Income From U. Military tax return S. Military tax return Possessions. Military tax return Individuals With Income From U. Military tax return S. Military tax return Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Military tax return S. Military tax return Virgin Islands, special rules may apply when determining whether you must file a U. Military tax return S. Military tax return federal income tax return. Military tax return In addition, you may have to file a return with the individual island government. Military tax return See Publication 570 for more information. Military tax return Dependents If you are a dependent (one who meets the dependency tests in chapter 3), see Table 1-2 to find out whether you must file a return. Military tax return You also must file if your situation is described in Table 1-3. Military tax return Responsibility of parent. Military tax return   Generally, a child is responsible for filing his or her own tax return and for paying any tax on the return. Military tax return If a dependent child must file an income tax return but cannot file due to age or any other reason, then a parent, guardian, or other legally responsible person must file it for the child. Military tax return If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. Military tax return ” Child's earnings. Military tax return   Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Military tax return This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Military tax return But if the child does not pay the tax due on this income, the parent is liable for the tax. Military tax return Certain Children Under Age 19 or Full-Time Students If a child's only income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends), the child was under age 19 at the end of 2013 or was a full-time student under age 24 at the end of 2013, and certain other conditions are met, a parent can elect to include the child's income on the parent's return. Military tax return If this election is made, the child does not have to file a return. Military tax return See Parent's Election To Report Child's Interest and Dividends in chapter 31. Military tax return Self-Employed Persons You are self-employed if you: Carry on a trade or business as a sole proprietor, Are an independent contractor, Are a member of a partnership, or Are in business for yourself in any other way. Military tax return Self-employment can include work in addition to your regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job. Military tax return You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age (shown in Table 1-1). Military tax return Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if: Your net earnings from self-employment (excluding church employee income) were $400 or more, or You had church employee income of $108. Military tax return 28 or more. Military tax return (See Table 1-3. Military tax return ) Use Schedule SE (Form 1040) to figure your self-employment tax. Military tax return Self-employment tax is comparable to the social security and Medicare tax withheld from an employee's wages. Military tax return For more information about this tax, see Publication 334, Tax Guide for Small Business. Military tax return Employees of foreign governments or international organizations. Military tax return   If you are a U. Military tax return S. Military tax return citizen who works in the United States for an international organization, a foreign government, or a wholly owned instrumentality of a foreign government, and your employer is not required to withhold social security and Medicare taxes from your wages, you must include your earnings from services performed in the United States when figuring your net earnings from self-employment. Military tax return Ministers. Military tax return   You must include income from services you performed as a minister when figuring your net earnings from self-employment, unless you have an exemption from self-employment tax. Military tax return This also applies to Christian Science practitioners and members of a religious order who have not taken a vow of poverty. Military tax return For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Military tax return Table 1-2. Military tax return 2013 Filing Requirements for Dependents See chapter 3 to find out if someone can claim you as a dependent. Military tax return If your parents (or someone else) can claim you as a dependent, use this table to see if you must file a return. Military tax return (See Table 1-3 for other situations when you must file. Military tax return ) In this table, earned income includes salaries, wages, tips, and professional fees. Military tax return It also includes taxable scholarship and fellowship grants. Military tax return (See Scholarships and fellowships in chapter 12. Military tax return ) Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions. Military tax return It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust. Military tax return Gross income is the total of your earned and unearned income. Military tax return   Single dependents—Were you either age 65 or older or blind? □ No. Military tax return You must file a return if any of the following apply. Military tax return     • Your unearned income was more than $1,000. Military tax return     • Your earned income was more than $6,100. Military tax return     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. Military tax return □ Yes. Military tax return You must file a return if any of the following apply. Military tax return     • Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Military tax return     • Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Military tax return     • Your gross income was more than the larger of:       • $2,500 ($4,000 if 65 or older and blind), or       • Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Military tax return Married dependents—Were you either age 65 or older or blind? □ No. Military tax return You must file a return if any of the following apply. Military tax return     • Your unearned income was more than $1,000. Military tax return     • Your earned income was more than $6,100. Military tax return     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Military tax return     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. Military tax return □ Yes. Military tax return You must file a return if any of the following apply. Military tax return     • Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Military tax return     • Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Military tax return     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Military tax return     • Your gross income was more than the larger of:       • $2,200 ($3,400 if 65 or older and blind), or       • Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Military tax return Aliens Your status as an alien—resident, nonresident, or dual-status—determines whether and how you must file an income tax return. Military tax return The rules used to determine your alien status are discussed in Publication 519, U. Military tax return S. Military tax return Tax Guide for Aliens. Military tax return Resident alien. Military tax return   If you are a resident alien for the entire year, you must file a tax return following the same rules that apply to U. Military tax return S. Military tax return citizens. Military tax return Use the forms discussed in this publication. Military tax return Nonresident alien. Military tax return   If you are a nonresident alien, the rules and tax forms that apply to you are different from those that apply to U. Military tax return S. Military tax return citizens and resident aliens. Military tax return See Publication 519 to find out if U. Military tax return S. Military tax return income tax laws apply to you and which forms you should file. Military tax return Dual-status taxpayer. Military tax return   If you are a resident alien for part of the tax year and a nonresident alien for the rest of the year, you are a dual-status taxpayer. Military tax return Different rules apply for each part of the year. Military tax return For information on dual-status taxpayers, see Publication 519. Military tax return Table 1-3. Military tax return Other Situations When You Must File a 2013 Return You must file a return if any of the four conditions below apply for 2013. Military tax return 1. Military tax return   You owe any special taxes, including any of the following. Military tax return   a. Military tax return Alternative minimum tax. Military tax return   b. Military tax return Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Military tax return But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Military tax return   c. Military tax return Household employment taxes. Military tax return But if you are filing a return only because you owe this tax, you can file Schedule H by itself. Military tax return   d. Military tax return Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes. Military tax return   e. Military tax return Recapture of first-time homebuyer credit. Military tax return   f. Military tax return Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. Military tax return   g. Military tax return Recapture taxes. Military tax return 2. Military tax return   You (or your spouse, if filing jointly) received HSA, Archer MSA, or Medicare Advantage MSA distributions. Military tax return 3. Military tax return   You had net earnings from self-employment of at least $400. Military tax return 4. Military tax return   You had wages of $108. Military tax return 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Military tax return Who Should File Even if you do not have to file, you should file a federal income tax return to get money back if any of the following conditions apply. Military tax return You had federal income tax withheld or made estimated tax payments. Military tax return You qualify for the earned income credit. Military tax return See chapter 36 for more information. Military tax return You qualify for the additional child tax credit. Military tax return See chapter 34 for more information. Military tax return You qualify for the health coverage tax credit. Military tax return See chapter 37 for more information. Military tax return You qualify for the American opportunity credit. Military tax return See chapter 35 for more information. Military tax return You qualify for the credit for federal tax on fuels. Military tax return See chapter 37 for more information. Military tax return Which Form Should I Use? You must use one of three forms to file your return: Form 1040EZ, Form 1040A, or Form 1040. Military tax return (But also see Does My Return Have To Be on Paper , later. Military tax return ) See the discussion under Form 1040 for when you must use that form. Military tax return Form 1040EZ Form 1040EZ is the simplest form to use. Military tax return You can use Form 1040EZ if all of the following apply. Military tax return    Your filing status is single or married filing jointly. Military tax return If you were a nonresident alien at any time in 2013, your filing status must be married filing jointly. Military tax return You (and your spouse if married filing a joint return) were under age 65 and not blind at the end of 2013. Military tax return If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Military tax return You do not claim any dependents. Military tax return Your taxable income is less than $100,000. Military tax return Your income is only from wages, salaries, tips, unemployment compensation, Alaska Permanent Fund dividends, taxable scholarship and fellowship grants, and taxable interest of $1,500 or less. Military tax return You do not claim any adjustments to income, such as a deduction for IRA contributions or student loan interest. Military tax return You do not claim any credits other than the earned income credit. Military tax return You do not owe any household employment taxes on wages you paid to a household employee. Military tax return If you earned tips, they are included in boxes 5 and 7 of your Form W-2. Military tax return You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005. Military tax return   You must meet all of these requirements to use Form 1040EZ. Military tax return If you do not, you must use Form 1040A or Form 1040. Military tax return Figuring tax. Military tax return   On Form 1040EZ, you can use only the tax table to figure your income tax. Military tax return You cannot use Form 1040EZ to report any other tax. Military tax return Form 1040A If you do not qualify to use Form 1040EZ, you may be able to use Form 1040A. Military tax return You can use Form 1040A if all of the following apply. Military tax return    Your income is only from: Wages, salaries, and tips, Interest, Ordinary dividends (including Alaska Permanent Fund dividends), Capital gain distributions, IRA distributions, Pensions and annuities, Unemployment compensation, Taxable social security and railroad retirement benefits, and Taxable scholarship and fellowship grants. Military tax return If you receive a capital gain distribution that includes unrecaptured section 1250 gain, section 1202 gain, or collectibles (28%) gain, you cannot use Form 1040A. Military tax return You must use Form 1040. Military tax return Your taxable income is less than $100,000. Military tax return Your adjustments to income are for only the following items. Military tax return Educator expenses. Military tax return IRA deduction. Military tax return Student loan interest deduction. Military tax return Tuition and fees. Military tax return You do not itemize your deductions. Military tax return You claim only the following tax credits. Military tax return The credit for child and dependent care expenses. Military tax return (See chapter 32. Military tax return ) The credit for the elderly or the disabled. Military tax return (See chapter 33. Military tax return ) The education credits. Military tax return (See chapter 35. Military tax return ) The retirement savings contribution credit. Military tax return (See chapter 37. Military tax return ) The child tax credit. Military tax return (See chapter 34. Military tax return ) The earned income credit. Military tax return (See chapter 36. Military tax return ) The additional child tax credit. Military tax return (See chapter 34. Military tax return ) You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option. Military tax return (See Publication 525, Taxable and Nontaxable Income. Military tax return )   You can also use Form 1040A if you received employer-provided dependent care benefits or if you owe tax from the recapture of an education credit or the alternative minimum tax. Military tax return   You must meet all these requirements to use Form 1040A. Military tax return If you do not, you must use Form 1040. Military tax return Form 1040 If you cannot use Form 1040EZ or Form 1040A, you must use Form 1040. Military tax return You can use Form 1040 to report all types of income, deductions, and credits. Military tax return You may pay less tax by filing Form 1040 because you can take itemized deductions, some adjustments to income, and credits you cannot take on Form 1040A or Form 1040EZ. Military tax return You must use Form 1040 if any of the following apply. Military tax return    Your taxable income is $100,000 or more. Military tax return You itemize your deductions on Schedule A. Military tax return You had income that cannot be reported on Form 1040EZ or Form 1040A, including tax-exempt interest from private activity bonds issued after August 7, 1986. Military tax return You claim any adjustments to gross income other than the adjustments listed earlier under Form 1040A. Military tax return Your Form W-2, box 12, shows uncollected employee tax (social security and Medicare tax) on tips (see chapter 6) or group-term life insurance (see chapter 5). Military tax return You received $20 or more in tips in any 1 month and did not report all of them to your employer. Military tax return (See chapter 6. Military tax return ) You were a bona fide resident of Puerto Rico and exclude income from sources in Puerto Rico. Military tax return You claim any credits other than the credits listed earlier under Form 1040A. Military tax return You owe the excise tax on insider stock compensation from an expatriated corporation. Military tax return Your Form W-2 shows an amount in box 12 with a code Z. Military tax return You had a qualified health savings account funding distribution from your IRA. Military tax return You are an employee and your employer did not withhold social security and Medicare tax. Military tax return You have to file other forms with your return to report certain exclusions, taxes, or transactions, such as Form 8959 or Form 8960. Military tax return You are a debtor in a bankruptcy case filed after October 16, 2005. Military tax return You must repay the first-time homebuyer credit. Military tax return You have adjusted gross income of more than $150,000 and must reduce the dollar amount of your exemptions. Military tax return Does My Return Have To Be on Paper? You may be able to file a paperless return using IRS e-file (electronic filing). Military tax return If your 2013 adjusted gross income (AGI) is less than a certain amount, you are eligible for Free File. Military tax return See your tax return instructions for details. Military tax return If you do not qualify for Free File, then you should check out IRS. Military tax return gov for low-cost e-file options or Free File Fillable Forms. Military tax return IRS e-file Table 1-4 lists the benefits of IRS e-file. Military tax return IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Military tax return As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Military tax return However, as with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Military tax return Using e-file does not affect your chances of an IRS examination of your return. Military tax return Free File Fillable Forms. Military tax return   If you do not need the help of a tax preparer, then Free File Fillable Forms may be for you. Military tax return These forms: Do not have an income requirement so everyone is eligible, Are easy to use, Perform basic math calculations, Are available only at IRS. Military tax return gov, and Apply only to a federal tax return. Military tax return Electronic return signatures. Military tax return   To file your return electronically, you must sign the return electronically using a personal identification number (PIN). Military tax return If you are filing online, you must use a Self-Select PIN. Military tax return If you are filing electronically using a tax practitioner, you can use a Self-Select PIN or a Practitioner PIN. Military tax return Self-Select PIN. Military tax return   The Self-Select PIN method allows you to create your own PIN. Military tax return If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Military tax return   A PIN is any combination of five digits you choose except five zeros. Military tax return If you use a PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Military tax return   To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2012 federal income tax return, if applicable. Military tax return Do not use your AGI from an amended return (Form 1040X) or a math error correction made by the IRS. Military tax return AGI is the amount shown on your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040EZ, line 4. Military tax return If you do not have your 2012 income tax return, you can quickly request a transcript by using our automated self-service tool. Military tax return Visit us at IRS. Military tax return gov and click on Order a Return or Account Transcript or call 1-800-908-9946 to get a free transcript of your return. Military tax return (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. Military tax return The prior year PIN is the five digit PIN you used to electronically sign your 2012 return. Military tax return ) You will also be prompted to enter your date of birth. Military tax return Table 1-4. Military tax return Benefits of IRS e-file • Free File allows qualified taxpayers to prepare and e-file their own tax returns for free. Military tax return • Free File is available in English and Spanish. Military tax return • Free File is available online 24 hours a day, 7 days a week. Military tax return • Get your refund faster by e-filing using Direct Deposit. Military tax return • Sign electronically with a secure self-selected PIN and file a completely paperless return. Military tax return • Receive an acknowledgement that your return was received and accepted. Military tax return • If you owe, you can e-file and pay electronically either online or by phone, using your bank account or a credit or debit card. Military tax return You can also file a return early and pay the amount you owe by the due date of your return. Military tax return • Save time by preparing and e-filing federal and state returns together. Military tax return • IRS computers quickly and automatically check for errors or other missing information. Military tax return • Help the environment, use less paper, and save taxpayer money—it costs less to process an e-filed return than a paper return. Military tax return You cannot use the Self-Select PIN method if you are a first-time filer under age 16 at the end of 2013. Military tax return If you cannot locate your prior year AGI or prior year PIN, use the Electronic Filing PIN Request. Military tax return This can be found at IRS. Military tax return gov. Military tax return Click on Request an Electronic Filing PIN. Military tax return Or you can call 1-866-704-7388. Military tax return Practitioner PIN. Military tax return   The Practitioner PIN method allows you to authorize your tax practitioner to enter or generate your PIN. Military tax return The practitioner can provide you with details. Military tax return Form 8453. Military tax return   You must send in a paper Form 8453 if you have to attach certain forms or other documents that cannot be electronically filed. Military tax return For details, see Form 8453. Military tax return For more details, visit www. Military tax return irs. Military tax return gov/efile and click on “ Individuals. Military tax return ” Identity Protection PIN. Military tax return   If the IRS gave you an identity protection personal identification number (PIN) because you were a victim of identity theft, enter it in the spaces provided on your tax form. Military tax return If the IRS has not given you this type of number, leave these spaces blank. Military tax return For more information, see the Instructions for Form 1040A or Form 1040. Military tax return Power of attorney. Military tax return   If an agent is signing your return for you, a power of attorney (POA) must be filed. Military tax return Attach the POA to Form 8453 and file it using that form's instructions. Military tax return See Signatures , later, for more information on POAs. Military tax return State returns. Military tax return   In most states, you can file an electronic state return simultaneously with your federal return. Military tax return For more information, check with your local IRS office, state tax agency, tax professional, or the IRS website at  www. Military tax return irs. Military tax return gov/efile. Military tax return Refunds. Military tax return   You can have a refund check mailed to you, or you can have your refund deposited directly to your checking or savings account or split among two or three accounts. Military tax return With e-file, your refund will be issued faster than if you filed on paper. Military tax return   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain other federal nontax debts, such as student loans. Military tax return See Offset against debts under Refunds, later. Military tax return Refund inquiries. Military tax return   Information about your return will generally be available within 24 hours after the IRS receives your e-filed return. Military tax return See Refund Information , later. Military tax return Amount you owe. Military tax return   To avoid late-payment penalties and interest, pay your taxes in full by April 15, 2014. Military tax return See How To Pay , later, for information on how to pay the amount you owe. Military tax return Using Your Personal Computer You can file your tax return in a fast, easy, and convenient way using your personal computer. Military tax return A computer with Internet access and tax preparation software are all you need. Military tax return Best of all, you can e-file from the comfort of your home 24 hours a day, 7 days a week. Military tax return IRS approved tax preparation software is available for online use on the Internet, for download from the Internet, and in retail stores. Military tax return For information, visit www. Military tax return irs. Military tax return gov/efile. Military tax return Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Military tax return Others offer it for a fee. Military tax return Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Military tax return Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Military tax return The Volunteer Income Tax Assistance (VITA) program is designed to help low to moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Military tax return Many VITA sites offer free electronic filing and all volunteers will let you know about the credits and deductions you may be entitled to claim. Military tax return To find a site near you, call 1-800-906-9887. Military tax return Or to find the nearest AARP TaxAide site, visit AARP's website at www. Military tax return aarp. Military tax return org/taxaide or call 1-888-227-7669. Military tax return For more information on these programs, go to IRS. Military tax return gov and enter keyword “VITA” in the search box. Military tax return Using a Tax Professional Many tax professionals electronically file tax returns for their clients. Military tax return You may personally enter your PIN or complete Form 8879, IRS e-file Signature Authorization, to authorize the tax professional to enter your PIN on your return. Military tax return Note. Military tax return Tax professionals may charge a fee for IRS e-file. Military tax return Fees can vary depending on the professional and the specific services rendered. Military tax return When Do I Have To File? April 15, 2014, is the due date for filing your 2013 income tax return if you use the calendar year. Military tax return For a quick view of due dates for filing a return with or without an extension of time to file (discussed later), see Table 1-5. Military tax return Table 1-5. Military tax return When To File Your 2013 Return For U. Military tax return S. Military tax return citizens and residents who file returns on a calendar year. Military tax return   For Most Taxpayers For Certain Taxpayers Outside the U. Military tax return S. Military tax return No extension requested April 15, 2014 June 16, 2014 Automatic extension October 15, 2014 October 15, 2014 If you use a fiscal year (a year ending on the last day of any month except December, or a 52-53-week year), your income tax return is due by the 15th day of the 4th month after the close of your fiscal year. Military tax return When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Military tax return —falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Military tax return Filing paper returns on time. Military tax return   Your paper return is filed on time if it is mailed in an envelope that is properly addressed, has enough postage, and is postmarked by the due date. Military tax return If you send your return by registered mail, the date of the registration is the postmark date. Military tax return The registration is evidence that the return was delivered. Military tax return If you send a return by certified mail and have your receipt postmarked by a postal employee, the date on the receipt is the postmark date. Military tax return The postmarked certified mail receipt is evidence that the return was delivered. Military tax return Private delivery services. Military tax return   If you use a private delivery service designated by the IRS to send your return, the postmark date generally is the date the private delivery service records in its database or marks on the mailing label. Military tax return The private delivery service can tell you how to get written proof of this date. Military tax return   For the IRS mailing address to use if you are using a private delivery service, go to IRS. Military tax return gov and enter “private delivery service” in the search box. Military tax return   The following are designated private delivery services. Military tax return DHL Express (DHL): Same Day Service. Military tax return Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Military tax return United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Military tax return M. Military tax return , UPS Worldwide Express Plus, and UPS Worldwide Express. Military tax return Filing electronic returns on time. Military tax return   If you use IRS e-file, your return is considered filed on time if the authorized electronic return transmitter postmarks the transmission by the due date. Military tax return An authorized electronic return transmitter is a participant in the IRS e-file program that transmits electronic tax return information directly to the IRS. Military tax return   The electronic postmark is a record of when the authorized electronic return transmitter received the transmission of your electronically filed return on its host system. Military tax return The date and time in your time zone controls whether your electronically filed return is timely. Military tax return Filing late. Military tax return   If you do not file your return by the due date, you may have to pay a failure-to-file penalty and interest. Military tax return For more information, see Penalties , later. Military tax return Also see Interest under Amount You Owe. Military tax return   If you were due a refund but you did not file a return, you generally must file within 3 years from the date the return was due (including extensions) to get that refund. Military tax return Nonresident alien. Military tax return    If you are a nonresident alien and earn wages subject to U. Military tax return S. Military tax return income tax withholding, your 2013 U. Military tax return S. Military tax return income tax return (Form 1040NR or Form 1040NR-EZ) is due by: April 15, 2014, if you use a calendar year, or The 15th day of the 4th month after the end of your fiscal year if you use a fiscal year. Military tax return   If you do not earn wages subject to U. Military tax return S. Military tax return income tax withholding, your return is due by: June 16, 2014, if you use a calendar year, or The 15th day of the 6th month after the end of your fiscal year, if you use a fiscal year. Military tax return See Publication 519 for more filing information. Military tax return Filing for a decedent. Military tax return   If you must file a final income tax return for a taxpayer who died during the year (a decedent), the return is due by the 15th day of the 4th month after the end of the decedent's normal tax year. Military tax return See Publication 559. Military tax return Extensions of Time To File You may be able to get an extension of time to file your return. Military tax return There are three types of situations where you may qualify for an extension: Automatic extensions, You are outside the United States, or You are serving in a combat zone. Military tax return Automatic Extension If you cannot file your 2013 return by the due date, you may be able to get an automatic 6-month extension of time to file. Military tax return Example. Military tax return If your return is due on April 15, 2014, you will have until October 15, 2014, to file. Military tax return If you do not pay the tax due by the regular due date (generally, April 15), you will owe interest. Military tax return You may also be charged penalties, discussed later. Military tax return How to get the automatic extension. Military tax return   You can get the automatic extension by: Using IRS e-file (electronic filing), or Filing a paper form. Military tax return E-file options. Military tax return   There are two ways you can use e-file to get an extension of time to file. Military tax return Complete Form 4868, Application for Automatic Extension of Time To File U. Military tax return S. Military tax return Individual Income Tax Return, to use as a worksheet. Military tax return If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Military tax return If you e-file Form 4868 to the IRS, do not also send a paper Form 4868. Military tax return E-file using your personal computer or a tax professional. Military tax return    You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Military tax return You will need to provide certain information from your tax return for 2012. Military tax return If you wish to make a payment by direct transfer from your bank account, see Pay online , under How To Pay, later in this chapter. Military tax return E-file and pay by credit or debit card or by direct transfer from your bank account. Military tax return   You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card or by direct transfer from your bank account. Military tax return You can do this by phone or over the Internet. Military tax return You do not file Form 4868. Military tax return See Pay online , under How To Pay, later in this chapter. Military tax return Filing a paper Form 4868. Military tax return   You can get an extension of time to file by filing a paper Form 4868. Military tax return Mail it to the address shown in the form instructions. Military tax return   If you want to make a payment with the form, make your check or money order payable to “United States Treasury. Military tax return ” Write your SSN, daytime phone number, and “2013 Form 4868” on your check or money order. Military tax return When to file. Military tax return   You must request the automatic extension by the due date for your return. Military tax return You can file your return any time before the 6-month extension period ends. Military tax return When you file your return. Military tax return   Enter any payment you made related to the extension of time to file on Form 1040, line 68. Military tax return If you file Form 1040EZ or Form 1040A, include that payment in your total payments on Form 1040EZ, line 9, or Form 1040A, line 41. Military tax return Also enter “Form 4868” and the amount paid in the space to the left of line 9 or line 41. Military tax return Individuals Outside the United States You are allowed an automatic 2-month extension, without filing Form 4868, (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. Military tax return S. Military tax return citizen or resident, and On the due date of your return: You are living outside the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and  Puerto Rico. Military tax return However, if you pay the tax due after the regular due date (generally, April 15), interest will be charged from that date until the date the tax is paid. Military tax return If you served in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. Military tax return See Individuals Serving in Combat Zone , later, for special rules that apply to you. Military tax return Married taxpayers. Military tax return   If you file a joint return, only one spouse has to qualify for this automatic extension. Military tax return If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. Military tax return How to get the extension. Military tax return   To use this automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. Military tax return (See the situations listed under (2), earlier. Military tax return ) Extensions beyond 2 months. Military tax return   If you cannot file your return within the automatic 2-month extension period, you may be able to get an additional 4-month extension, for a total of 6 months. Military tax return File Form 4868 and check the box on line 8. Military tax return No further extension. Military tax return   An extension of more than 6 months will generally not be granted. Military tax return However, if you are outside the United States and meet certain tests, you may be granted a longer extension. Military tax return For more information, see When To File and Pay in Publication 54. Military tax return Individuals Serving in Combat Zone The deadline for filing your tax return, paying any tax you may owe, and filing a claim for refund is automatically extended if you serve in a combat zone. Military tax return This applies to members of the Armed Forces, as well as merchant marines serving aboard vessels under the operational control of the Department of Defense, Red Cross personnel, accredited correspondents, and civilians under the direction of the Armed Forces in support of the Armed Forces. Military tax return Combat zone. Military tax return   For purposes of the automatic extension, the term “combat zone” includes the following areas. Military tax return The Arabian peninsula area, effective January 17, 1991. Military tax return The Kosovo area, effective March 24, 1999. Military tax return Afghanistan area, effective September 19, 2001. Military tax return   See Publication 3, Armed Forces' Tax Guide, for more detailed information on the locations comprising each combat zone. Military tax return The publication also has information about other tax benefits available to military personnel serving in a combat zone. Military tax return Extension period. Military tax return   The deadline for filing your return, paying any tax due, and filing a claim for refund is extended for at least 180 days after the later of: The last day you are in a combat zone or the last day the area qualifies as a combat zone, or The last day of any continuous qualified hospitalization for injury from service in the combat zone. Military tax return   In addition to the 180 days, your deadline is also extended by the number of days you had left to take action with the IRS when you entered the combat zone. Military tax return For example, you have 3½ months (January 1 – April 15) to file your tax return. Military tax return Any days left in this period when you entered the combat zone (or the entire 3½ months if you entered it before the beginning of the year) are added to the 180 days. Military tax return See Extension of Deadlines in Publication 3 for more information. Military tax return   The rules on the extension for filing your return also apply when you are deployed outside the United States (away from your permanent duty station) while participating in a designated contingency operation. Military tax return How Do I Prepare My Return? This section explains how to get ready to fill in your tax return and when to report your income and expenses. Military tax return It also explains how to complete certain sections of the form. Military tax return You may find Table 1-6 helpful when you prepare your paper return. Military tax return Table 1-6. Military tax return Six Steps for Preparing Your Paper Return 1 — Get your records together for income and expenses. Military tax return 2 — Get the forms, schedules, and publications you need. Military tax return 3 — Fill in your return. Military tax return 4 — Check your return to make sure it is correct. Military tax return 5 — Sign and date your return. Military tax return 6 — Attach all required forms and schedules. Military tax return Electronic returns. Military tax return   For information you may find useful in preparing a paperless return, see Does My Return Have To Be on Paper , earlier. Military tax return Substitute tax forms. Military tax return   You cannot use your own version of a tax form unless it meets the requirements explained in Publication 1167, General Rules and Specifications for Substitute Forms and Schedules. Military tax return Form W-2. Military tax return   If you were an employee, you should receive Form W-2 from your employer. Military tax return You will need the information from this form to prepare your return. Military tax return See Form W-2 under Credit for Withholding and Estimated Tax in chapter 4. Military tax return   Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Military tax return If it is mailed, you should allow adequate time to receive it before contacting your employer. Military tax return If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. Military tax return When you request IRS help, be prepared to provide the following information. Military tax return Your name, address (including ZIP code), and phone number. Military tax return Your SSN. Military tax return Your dates of employment. Military tax return Your employer's name, address (including ZIP code), and phone number. Military tax return Form 1099. Military tax return   If you received certain types of income, you may receive a Form 1099. Military tax return For example, if you received taxable interest of $10 or more, the payer is required to provide or send Form 1099 to you no later than January 31, 2014 (or by February 18, 2014, if furnished by a broker). Military tax return If it is mailed, you should allow adequate time to receive it before contacting the payer. Military tax return If you still do not get the form by February 18 (or by March 5, 2014, if furnished by a broker), call the IRS for help. Military tax return When Do I Report My Income and Expenses? You must figure your taxable income on the basis of a tax year. Military tax return A “tax year” is an annual accounting period used for keeping records and reporting income and expenses. Military tax return You must account for your income and expenses in a way that clearly shows your taxable income. Military tax return The way you do this is called an accounting method. Military tax return This section explains which accounting periods and methods you can use. Military tax return Accounting Periods Most individual tax returns cover a calendar year—the 12 months from January 1 through December 31. Military tax return If you do not use a calendar year, your accounting period is a fiscal year. Military tax return A regular fiscal year is a 12-month period that ends on the last day of any month except December. Military tax return A 52-53-week fiscal year varies from 52 to 53 weeks and always ends on the same day of the week. Military tax return You choose your accounting period (tax year) when you file your first income tax return. Military tax return It cannot be longer than 12 months. Military tax return More information. Military tax return   For more information on accounting periods, including how to change your accounting period, see Publication 538, Accounting Periods and Methods. Military tax return Accounting Methods Your accounting method is the way you account for your income and expenses. Military tax return Most taxpayers use either the cash method or an accrual method. Military tax return You choose a method when you file your first income tax return. Military tax return If you want to change your accounting method after that, you generally must get IRS approval. Military tax return Cash method. Military tax return   If you use this method, report all items of income in the year in which you actually or constructively receive them. Military tax return Generally, you deduct all expenses in the year you actually pay them. Military tax return This is the method most individual taxpayers use. Military tax return Constructive receipt. Military tax return   Generally, you constructively receive income when it is credited to your account or set apart in any way that makes it available to you. Military tax return You do not need to have physical possession of it. Military tax return For example, interest credited to your bank account on December 31, 2013, is taxable income to you in 2013 if you could have withdrawn it in 2013 (even if the amount is not entered in your records or withdrawn until 2014). Military tax return Garnisheed wages. Military tax return   If your employer uses your wages to pay your debts, or if your wages are attached or garnisheed, the full amount is constructively received by you. Military tax return You must include these wages in income for the year you would have received them. Military tax return Debts paid for you. Military tax return   If another person cancels or pays your debts (but not as a gift or loan), you have constructively received the amount and generally must include it in your gross income for the year. Military tax return See Canceled Debts in chapter 12 for more information. Military tax return Payment to third party. Military tax return   If a third party is paid income from property you own, you have constructively received the income. Military tax return It is the same as if you had actually received the income and paid it to the third party. Military tax return Payment to an agent. Military tax return   Income an agent receives for you is income you constructively received in the year the agent receives it. Military tax return If you indicate in a contract that your income is to be paid to another person, you must include the amount in your gross income when the other person receives it. Military tax return Check received or available. Military tax return   A valid check that was made available to you before the end of the tax year is constructively received by you in that year. Military tax return A check that was “made available to you” includes a check you have already received, but not cashed or deposited. Military tax return It also includes, for example, your last paycheck of the year that your employer made available for you to pick up at the office before the end of the year. Military tax return It is constructively received by you in that year whether or not you pick it up before the end of the year or wait to receive it by mail after the end of the year. Military tax return No constructive receipt. Military tax return   There may be facts to show that you did not constructively receive income. Military tax return Example. Military tax return Alice Johnson, a teacher, agreed to her school board's condition that, in her absence, she would receive only the difference between her regular salary and the salary of a substitute teacher hired by the school board. Military tax return Therefore, Alice did not constructively receive the amount by which her salary was reduced to pay the substitute teacher. Military tax return Accrual method. Military tax return   If you use an accrual method, you generally report income when you earn it, rather than when you receive it. Military tax return You generally deduct your expenses when you incur them, rather than when you pay them. Military tax return Income paid in advance. Military tax return   An advance payment of income is generally included in gross income in the year you receive it. Military tax return Your method of accounting does not matter as long as the income is available to you. Military tax return An advance payment may include rent or interest you receive in advance and pay for services you will perform later. Military tax return   A limited deferral until the next tax year may be allowed for certain advance payments. Military tax return See Publication 538 for specific information. Military tax return Additional information. Military tax return   For more information on accounting methods, including how to change your accounting method, see Publication 538. Military tax return Social Security Number (SSN) You must enter your SSN on your return. Military tax return If you are married, enter the SSNs for both you and your spouse, whether you file jointly or separately. Military tax return If you are filing a joint return, include the SSNs in the same order as the names. Military tax return Use this same order in submitting other forms and documents to the IRS. Military tax return Check that both the name and SSN on your Form 1040, W-2, and 1099 agree with your social security card. Military tax return If they do not, certain deductions and credits on your Form 1040 may be reduced or disallowed and you may not receive credit for your social security earnings. Military tax return If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. Military tax return If the name or SSN on your social security card is incorrect, call the SSA at 1-800-772-1213. Military tax return Name change. Military tax return   If you changed your name because of marriage, divorce, etc. Military tax return , be sure to report the change to your local Social Security Administration (SSA) office before filing your return. Military tax return This prevents delays in processing your return and issuing refunds. Military tax return It also safeguards your future social security benefits. Military tax return Dependent's SSN. Military tax return   You must provide the SSN of each dependent you claim, regardless of the dependent's age. Military tax return This requirement applies to all dependents (not just your children) claimed on your tax return. Military tax return Exception. Military tax return    If your child was born and died in 2013 and did not have an SSN, enter “DIED” in column (2) of line 6c (Form 1040 or 1040A) and include a copy of the child's birth certificate, death certificate, or hospital records. Military tax return The document must show that the child was born alive. Military tax return No SSN. Military tax return   File Form SS-5, Application for a Social Security Card, with your local SSA office to get an SSN for yourself or your dependent. Military tax return It usually takes about 2 weeks to get an SSN. Military tax return If you or your dependent is not eligible for an SSN, see Individual taxpayer identification number (ITIN) , later. Military tax return   If you are a U. Military tax return S. Military tax return citizen or resident alien, you must show proof of age, identity, and citizenship or alien status with your Form SS-5. Military tax return If you are 12 or older and have never been assigned an SSN, you must appear in person with this proof at an SSA office. Military tax return   Form SS-5 is available at any SSA office, on the Internet at www. Military tax return socialsecurity. Military tax return gov, or by calling 1-800-772-1213. Military tax return If you have any questions about which documents you can use as proof of age, identity, or citizenship, contact your SSA office. Military tax return   If your dependent does not have an SSN by the time your return is due, you may want to ask for an extension of time to file, as explained earlier under When Do I Have To File . Military tax return   If you do not provide a required SSN or if you provide an incorrect SSN, your tax may be increased and any refund may be reduced. Military tax return Adoption taxpayer identification number (ATIN). Military tax return   If you are in the process of adopting a child who is a U. Military tax return S. Military tax return citizen or resident and cannot get an SSN for the child until the adoption is final, you can apply for an ATIN to use instead of an SSN. Military tax return    File Form W-7A, Application for Taxpayer Identification Number for Pending U. Military tax return S. Military tax return Adoptions, with the IRS to get an ATIN if all of the following are true. Military tax return You have a child living with you who was placed in your home for legal adoption. Military tax return You cannot get the child's existing SSN even though you have made a reasonable attempt to get it from the birth parents, the placement agency, and other persons. Military tax return You cannot get an SSN for the child from the SSA because, for example, the adoption is not final. Military tax return You are eligible to claim the child as a dependent on your tax return. Military tax return After the adoption is final, you must apply for an SSN for the child. Military tax return You cannot continue using the ATIN. Military tax return   See Form W-7A for more information. Military tax return Nonresident alien spouse. Military tax return   If your spouse is a nonresident alien, your spouse must have either an SSN or an ITIN if: You file a joint return, You file a separate return and claim an exemption for your spouse, or Your spouse is filing a separate return. Military tax return If your spouse is not eligible for an SSN, see the following discussion on ITINs. Military tax return Individual taxpayer identification number (ITIN). Military tax return   The IRS will issue you an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Military tax return This also applies to an alien spouse or dependent. Military tax return To apply for an ITIN, file Form W-7 with the IRS. Military tax return It usually takes about 6 to 10 weeks to get an ITIN. Military tax return Enter the ITIN on your tax return wherever an SSN is requested. Military tax return    If you are applying for an ITIN for yourself, your spouse, or a dependent in order to file your tax return, attach your completed tax return to your Form W-7. Military tax return See the Form W-7 instructions for how and where to file. Military tax return You cannot e-file a return using an ITIN in the calendar year the ITIN is issued; however, you can e-file returns in the following years. Military tax return ITIN for tax use only. Military tax return   An ITIN is for tax use only. Military tax return It does not entitle you or your dependent to social security benefits or change the employment or immigration status of either of you under U. Military tax return S. Military tax return law. Military tax return Penalty for not providing social security number. Military tax return   If you do not include your SSN or the SSN of your spouse or dependent as required, you may have to pay a penalty. Military tax return See the discussion on Penalties , later, for more information. Military tax return SSN on correspondence. Military tax return   If you write to the IRS about your tax account, be sure to include your SSN (and the name and SSN of your spouse, if you filed a joint return) in your correspondence. Military tax return Because your SSN is used to identify your account, this helps the IRS respond to your correspondence promptly. Military tax return Presidential Election Campaign Fund This fund helps pay for Presidential election campaigns. Military tax return If you want $3 to go to this fund, check the box. Military tax return If you are filing a joint return, your spouse can also have $3 go to the fund. Military tax return If you check a box, your tax or refund will not change. Military tax return Computations The following information may be useful in making the return easier to complete. Military tax return Rounding off dollars. Military tax return   You can round off cents to whole dollars on your return and schedules. Military tax return If you do round to whole dollars, you must round all amounts. Military tax return To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. Military tax return For example, $1. Military tax return 39 becomes $1 and $2. Military tax return 50 becomes $3. Military tax return   If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. Military tax return Example. Military tax return You receive two Forms W-2: one showing wages of $5,000. Military tax return 55 and one showing wages of $18,500. Military tax return 73. Military tax return On Form 1040, line 7, you would enter $23,501 ($5,000. Military tax return 55 + $18,500. Military tax return 73 = $23,501. Military tax return 28), not $23,502 ($5,001 + $18,501). Military tax return Equal amounts. Military tax return   If you are asked to enter the smaller or larger of two equal amounts, enter that amount. Military tax return Example. Military tax return Line 1 is $500. Military tax return Line 3 is $500. Military tax return Line 5 asks you to enter the smaller of line 1 or 3. Military tax return Enter $500 on line 5. Military tax return Negative amounts. Military tax return   If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. Military tax return To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts. Military tax return Attachments Depending on the form you file and the items reported on your return, you may have to complete additional schedules and forms and attach them to your paper return. Military tax return You may be able to file a paperless return using IRS e-file. Military tax return There's nothing to attach or mail, not even your Forms W-2. Military tax return See Does My Return Have To Be on Paper, earlier. Military tax return Form W-2. Military tax return   Form W-2 is a statement from your employer of wages and other compensation paid to you and taxes withheld from your pay. Military tax return You should have a Form W-2 from each employer. Military tax return If you file a paper return, be sure to attach a copy of Form W-2 in the place indicated on the front page of your return. Military tax return Attach it to the front page of your paper return, not to any attachments. Military tax return For more information, see Form W-2 in chapter 4. Military tax return   If you received a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Military tax return , showing federal income tax withheld, and you file a paper return, attach a copy of that form in the place indicated on the front page of your return. Military tax return Form 1040EZ. Military tax return   There are no additional schedules to file with Form 1040EZ. Military tax return Form 1040A. Military tax return   If you file a paper return, attach any forms and schedules behind Form 1040A in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. Military tax return Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Military tax return Do not attach items unless required to do so. Military tax return Form 1040. Military tax return   If you file a paper return, attach any forms and schedules behind Form 1040 in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. Military tax return Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Military tax return Do not attach items unless required to do so. Military tax return Third Party Designee You can authorize the IRS to discuss your return with your preparer, a friend, family member, or any other person you choose. Military tax return If you check the “Yes” box in the Third party designee area of your 2013 tax return and provide the information required, you are authorizing: The IRS to call the designee to answer any questions that arise during the processing of your return, and The designee to: Give information that is missing from your return to the IRS, Call the IRS for information about th
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The Military Tax Return

Military tax return 4. Military tax return   Reporting Gains and Losses Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Information Returns Schedule D and Form 8949Long and Short Term Net Gain or Loss Treatment of Capital Losses Capital Gains Tax Rates Form 4797Mark-to-market election. Military tax return Introduction This chapter explains how to report capital gains and losses and ordinary gains and losses from sales, exchanges, and other dispositions of property. Military tax return Although this discussion refers to Schedule D (Form 1040) and Form 8949, many of the rules discussed here also apply to taxpayers other than individuals. Military tax return However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. Military tax return Topics - This chapter discusses: Information returns Schedule D (Form 1040) Form 4797 Form 8949 Useful Items - You may want to see: Publication 550 Investment Income and Expenses 537 Installment Sales Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-S Proceeds From Real Estate Transactions 4684 Casualties and Thefts 4797 Sales of Business Property 6252 Installment Sale Income 6781 Gains and Losses from Section 1256 Contracts and Straddles 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. Military tax return Information Returns If you sell or exchange certain assets, you should receive an information return showing the proceeds of the sale. Military tax return This information is also provided to the IRS. Military tax return Form 1099-B. Military tax return   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a substitute statement from the broker. Military tax return Use the Form 1099-B or a substitute statement to complete Form 8949 and/or Schedule D. Military tax return Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. Military tax return on Form 8949 and/or Schedule D, as applicable. Military tax return For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. Military tax return For information on reporting the gains and losses, see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). Military tax return Form 1099-S. Military tax return   An information return must be provided on certain real estate transactions. Military tax return Generally, the person responsible for closing the transaction (the “real estate reporting person”) must report on Form 1099-S sales or exchanges of the following types of property. Military tax return Land (improved or unimproved), including air space. Military tax return An inherently permanent structure, including any residential, commercial, or industrial building. Military tax return A condominium unit and its related fixtures and common elements (including land). Military tax return Stock in a cooperative housing corporation. Military tax return If you sold or exchanged any of the above types of property, the “real estate reporting person” must give you a copy of Form 1099-S or a statement containing the same information as the Form 1099-S. Military tax return The “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. Military tax return   For more information see chapter 4 in Publication 550. Military tax return Also, see the Instructions for Form 8949. Military tax return Schedule D and Form 8949 Form 8949. Military tax return   Individuals, corporations, and partnerships, use Form 8949 to report the following. Military tax return    Sales or exchanges of capital assets, including stocks, bonds, etc. Military tax return , and real estate (if not reported on another form or schedule such as Form 4684, 4797, 6252, 6781, or 8824). Military tax return Include these transactions even if you did not receive a Form 1099-B or 1099-S. Military tax return Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. Military tax return Nonbusiness bad debts. Military tax return   Individuals, If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions. Military tax return You and your spouse may list your transactions on separate forms or you may combine them. Military tax return However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse. Military tax return    Corporations and electing large partnerships also use Form 8949 to report their share of gain or loss from a partnership, S Corporation, estate or trust. Military tax return   Business entities meeting certain criteria, may have an exception to some of the normal requirements for completing Form 8949. Military tax return See the Instructions for Form 8949. Military tax return Schedule D. Military tax return    Use Schedule D (Form 1040) to figure the overall gain or loss from transactions reported on Form 8949, and to report certain transactions you do not have to report on Form 8949. Military tax return Before completing Schedule D, you may have to complete other forms as shown below. Military tax return    Complete all applicable lines of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of your applicable Schedule D. Military tax return Enter on Schedule D the combined totals from all your Forms 8949. Military tax return For a sale, exchange, or involuntary conversion of business property, complete Form 4797 (discussed later). Military tax return For a like-kind exchange, complete Form 8824. Military tax return See Reporting the exchange under Like-Kind Exchanges in chapter 1. Military tax return For an installment sale, complete Form 6252. Military tax return See Publication 537. Military tax return For an involuntary conversion due to casualty or theft, complete Form 4684. Military tax return See Publication 547, Casualties, Disasters, and Thefts. Military tax return For a disposition of an interest in, or property used in, an activity to which the at-risk rules apply, complete Form 6198, At-Risk Limitations. Military tax return See Publication 925, Passive Activity and At-Risk Rules. Military tax return For a disposition of an interest in, or property used in, a passive activity, complete Form 8582, Passive Activity Loss Limitations. Military tax return See Publication 925. Military tax return For gains and losses from section 1256 contracts and straddles, complete Form 6781. Military tax return See Publication 550. Military tax return Personal-use property. Military tax return   Report gain on the sale or exchange of property held for personal use (such as your home) on Form 8949 and Schedule D (Form 1040), as applicable. Military tax return Loss from the sale or exchange of property held for personal use is not deductible. Military tax return But if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, report the transaction on Form 8949 and Schedule D, even though the loss is not deductible. Military tax return See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for information on how to report the transaction. Military tax return Long and Short Term Where you report a capital gain or loss depends on how long you own the asset before you sell or exchange it. Military tax return The time you own an asset before disposing of it is the holding period. Military tax return If you received a Form 1099-B, (or substitute statement) box 1c may help you determine whether the gain or loss is short-term or long-term. Military tax return If you hold a capital asset 1 year or less, the gain or loss from its disposition is short term. Military tax return Report it in Part I of Form 8949 and/or Schedule D, as applicable. Military tax return If you hold a capital asset longer than 1 year, the gain or loss from its disposition is long term. Military tax return Report it in Part II of Form 8949 and/or Schedule D, as applicable. Military tax return   Table 4-1. Military tax return Do I Have a Short-Term or Long-Term Gain or Loss? IF you hold the property. Military tax return . Military tax return . Military tax return  THEN you have a. Military tax return . Military tax return . Military tax return 1 year or less, Short-term capital gain or  loss. Military tax return More than 1 year, Long-term capital gain or  loss. Military tax return These distinctions are essential to correctly arrive at your net capital gain or loss. Military tax return Capital losses are allowed in full against capital gains plus up to $3,000 of ordinary income. Military tax return See Capital Gains Tax Rates, later. Military tax return Holding period. Military tax return   To figure if you held property longer than 1 year, start counting on the day following the day you acquired the property. Military tax return The day you disposed of the property is part of your holding period. Military tax return Example. Military tax return If you bought an asset on June 19, 2012, you should start counting on June 20, 2012. Military tax return If you sold the asset on June 19, 2013, your holding period is not longer than 1 year, but if you sold it on June 20, 2013, your holding period is longer than 1 year. Military tax return Patent property. Military tax return   If you dispose of patent property, you generally are considered to have held the property longer than 1 year, no matter how long you actually held it. Military tax return For more information, see Patents in chapter 2. Military tax return Inherited property. Military tax return   If you inherit property, you are considered to have held the property longer than 1 year, regardless of how long you actually held it. Military tax return Installment sale. Military tax return   The gain from an installment sale of an asset qualifying for long-term capital gain treatment in the year of sale continues to be long term in later tax years. Military tax return If it is short term in the year of sale, it continues to be short term when payments are received in later tax years. Military tax return    The date the installment payment is received determines the capital gains rate that should be applied not the date the asset was sold under an installment contract. Military tax return Nontaxable exchange. Military tax return   If you acquire an asset in exchange for another asset and your basis for the new asset is figured, in whole or in part, by using your basis in the old property, the holding period of the new property includes the holding period of the old property. Military tax return That is, it begins on the same day as your holding period for the old property. Military tax return Example. Military tax return You bought machinery on December 4, 2012. Military tax return On June 4, 2013, you traded this machinery for other machinery in a nontaxable exchange. Military tax return On December 5, 2013, you sold the machinery you got in the exchange. Military tax return Your holding period for this machinery began on December 5, 2012. Military tax return Therefore, you held it longer than 1 year. Military tax return Corporate liquidation. Military tax return   The holding period for property you receive in a liquidation generally starts on the day after you receive it if gain or loss is recognized. Military tax return Profit-sharing plan. Military tax return   The holding period of common stock withdrawn from a qualified contributory profit-sharing plan begins on the day following the day the plan trustee delivered the stock to the transfer agent with instructions to reissue the stock in your name. Military tax return Gift. Military tax return   If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period. Military tax return For more information on basis, see Publication 551, Basis of Assets. Military tax return Real property. Military tax return   To figure how long you held real property, start counting on the day after you received title to it or, if earlier, the day after you took possession of it and assumed the burdens and privileges of ownership. Military tax return   However, taking possession of real property under an option agreement is not enough to start the holding period. Military tax return The holding period cannot start until there is an actual contract of sale. Military tax return The holding period of the seller cannot end before that time. Military tax return Repossession. Military tax return   If you sell real property but keep a security interest in it and then later repossess it, your holding period for a later sale includes the period you held the property before the original sale, as well as the period after the repossession. Military tax return Your holding period does not include the time between the original sale and the repossession. Military tax return That is, it does not include the period during which the first buyer held the property. Military tax return Nonbusiness bad debts. Military tax return   Nonbusiness bad debts are short-term capital losses. Military tax return For information on nonbusiness bad debts, see chapter 4 of Publication 550. Military tax return    Net Gain or Loss The totals for short-term capital gains and losses and the totals for long-term capital gains and losses must be figured separately. Military tax return Net short-term capital gain or loss. Military tax return   Combine your short-term capital gains and losses, including your share of short-term capital gains or losses from partnerships, S corporations, and fiduciaries and any short-term capital loss carryover. Military tax return Do this by adding all your short-term capital gains. Military tax return Then add all your short-term capital losses. Military tax return Subtract the lesser total from the other. Military tax return The result is your net short-term capital gain or loss. Military tax return Net long-term capital gain or loss. Military tax return   Follow the same steps to combine your long-term capital gains and losses. Military tax return Include the following items. Military tax return Net section 1231 gain from Part I, Form 4797, after any adjustment for nonrecaptured section 1231 losses from prior tax years. Military tax return Capital gain distributions from regulated investment companies (mutual funds) and real estate investment trusts. Military tax return Your share of long-term capital gains or losses from partnerships, S corporations, and fiduciaries. Military tax return Any long-term capital loss carryover. Military tax return The result from combining these items with other long-term capital gains and losses is your net long-term capital gain or loss. Military tax return Net gain. Military tax return   If the total of your capital gains is more than the total of your capital losses, the difference is taxable. Military tax return Different tax rates may apply to the part that is a net capital gain. Military tax return See Capital Gains Tax Rates, later. Military tax return Net loss. Military tax return   If the total of your capital losses is more than the total of your capital gains, the difference is deductible. Military tax return But there are limits on how much loss you can deduct and when you can deduct it. Military tax return See Treatment of Capital Losses, next. Military tax return    Treatment of Capital Losses If your capital losses are more than your capital gains, you can deduct the difference as a capital loss deduction even if you do not have ordinary income to offset it. Military tax return The yearly limit on the amount of the capital loss you can deduct is $3,000 ($1,500 if you are married and file a separate return). Military tax return Table 4-2. Military tax return Holding Period for Different Types of Acquisitions Type of acquisition: When your holding period starts: Stocks and bonds bought on a securities market Day after trading date you bought security. Military tax return Ends on trading date you sold security. Military tax return U. Military tax return S. Military tax return Treasury notes and bonds If bought at auction, day after notification of bid acceptance. Military tax return If bought through subscription, day after subscription was submitted. Military tax return Nontaxable exchanges Day after date you acquired old property. Military tax return Gift If your basis is giver's adjusted basis, same day as giver's holding period began. Military tax return If your basis is FMV, day after date of gift. Military tax return Real property bought Generally, day after date you received title to the property. Military tax return Real property repossessed Day after date you originally received title to the property, but does not include time between the original sale and date of repossession. Military tax return Capital loss carryover. Military tax return   Generally, you have a capital loss carryover if either of the following situations applies to you. Military tax return Your net loss is more than the yearly limit. Military tax return Your taxable income without your deduction for exemptions is less than zero. Military tax return If either of these situations applies to you for 2013, see Capital Losses under Reporting Capital Gains and Losses in chapter 4 of Publication 550 to figure the amount you can carryover to 2014. Military tax return Example. Military tax return Bob and Gloria Sampson sold property in 2013. Military tax return The sale resulted in a capital loss of $7,000. Military tax return The Sampsons had no other capital transactions. Military tax return On their joint 2013 return, the Sampsons deduct $3,000, the yearly limit. Military tax return They had taxable income of $2,000. Military tax return The unused part of the loss, $4,000 ($7,000 − $3,000), is carried over to 2014. Military tax return If the Sampsons' capital loss had been $2,000, it would not have been more than the yearly limit. Military tax return Their capital loss deduction would have been $2,000. Military tax return They would have no carryover to 2014. Military tax return Short-term and long-term losses. Military tax return   When you carry over a loss, it retains its original character as either long term or short term. Military tax return A short-term loss you carry over to the next tax year is added to short-term losses occurring in that year. Military tax return A long-term loss you carry over to the next tax year is added to long-term losses occurring in that year. Military tax return A long-term capital loss you carry over to the next year reduces that year's long-term gains before its short-term gains. Military tax return   If you have both short-term and long-term losses, your short-term losses are used first against your allowable capital loss deduction. Military tax return If, after using your short-term losses, you have not reached the limit on the capital loss deduction, use your long-term losses until you reach the limit. Military tax return To figure your capital loss carryover from 2013 to 2014 use the Capital Loss Carryover Worksheet in the 2013 Instructions for Schedule D (Form 1040). Military tax return Joint and separate returns. Military tax return   On a joint return, the capital gains and losses of spouses are figured as the gains and losses of an individual. Military tax return If you are married and filing a separate return, your yearly capital loss deduction is limited to $1,500. Military tax return Neither you nor your spouse can deduct any part of the other's loss. Military tax return   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. Military tax return However, if you and your spouse once filed jointly and are now filing separately, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. Military tax return Death of taxpayer. Military tax return   Capital losses cannot be carried over after a taxpayer's death. Military tax return They are deductible only on the final income tax return filed on the decedent's behalf. Military tax return The yearly limit discussed earlier still applies in this situation. Military tax return Even if the loss is greater than the limit, the decedent's estate cannot deduct the difference or carry it over to following years. Military tax return Corporations. Military tax return   A corporation can deduct capital losses only up to the amount of its capital gains. Military tax return In other words, if a corporation has a net capital loss, it cannot be deducted in the current tax year. Military tax return It must be carried to other tax years and deducted from capital gains occurring in those years. Military tax return For more information, see Publication 542. Military tax return Capital Gains Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. Military tax return These lower rates are called the maximum capital gains rates. Military tax return The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. Military tax return For 2013, the maximum tax rates for individuals are 0%, 15%, 20%, 25%, and 28%. Military tax return Also, individuals, use the Qualified Dividends and Capital Gain Worksheet in the Instructions for Form 1040, or the Schedule D Tax Computation Worksheet in the Instructions for Schedule D (Form 1040) (whichever applies) to figure your tax if you have qualified dividends or net capital gain. Military tax return For more information, see chapter 4 of Publication 550. Military tax return Also see the Instructions for Schedule D (Form 1040). Military tax return Unrecaptured section 1250 gain. Military tax return   Generally, this is the part of any long-term capital gain on section 1250 property (real property) that is due to depreciation. Military tax return Unrecaptured section 1250 gain cannot be more than the net section 1231 gain or include any gain otherwise treated as ordinary income. Military tax return Use the worksheet in the Schedule D instructions to figure your unrecaptured section 1250 gain. Military tax return For more information about section 1250 property and net section 1231 gain, see chapter 3. Military tax return Form 4797 Use Form 4797 to report: The sale or exchange of: Property used in your trade or business; Depreciable and amortizable property; Oil, gas, geothermal, or other mineral properties; and Section 126 property. Military tax return The involuntary conversion (from other than casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. Military tax return The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business). Military tax return The disposition of capital assets not reported on Schedule D. Military tax return The gain or loss (including any related recapture) for partners and S corporation shareholders from certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations. Military tax return The computation of recapture amounts under sections 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less. Military tax return Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f). Military tax return You can use Form 4797 with Form 1040, 1065, 1120, or 1120S. Military tax return Section 1231 gains and losses. Military tax return   Show any section 1231 gains and losses in Part I. Military tax return Carry a net gain to Schedule D (Form 1040) as a long-term capital gain. Military tax return Carry a net loss to Part II of Form 4797 as an ordinary loss. Military tax return   If you had any nonrecaptured net section 1231 losses from the preceding 5 tax years, reduce your net gain by those losses and report the amount of the reduction as an ordinary gain in Part II. Military tax return Report any remaining gain on Schedule D (Form 1040). Military tax return See Section 1231 Gains and Losses in chapter 3. Military tax return Ordinary gains and losses. Military tax return   Show any ordinary gains and losses in Part II. Military tax return This includes a net loss or a recapture of losses from prior years figured in Part I of Form 4797. Military tax return It also includes ordinary gain figured in Part III. Military tax return Mark-to-market election. Military tax return   If you made a mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D (Form 1040). Military tax return See the Instructions for Form 4797. Military tax return Also see Special Rules for Traders in Securities, in chapter 4 of Publication 550. Military tax return Ordinary income from depreciation. Military tax return   Figure the ordinary income from depreciation on personal property and additional depreciation on real property (as discussed in chapter 3) in Part III. Military tax return Carry the ordinary income to Part II of Form 4797 as an ordinary gain. Military tax return Carry any remaining gain to Part I as section 1231 gain, unless it is from a casualty or theft. Military tax return Carry any remaining gain from a casualty or theft to Form 4684. Military tax return Prev  Up  Next   Home   More Online Publications