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What should I do if I made a mistake on my federal return that I have
already filed?
It depends on the type of mistake that you made. Many mathematical errors are
caught in the processing of the tax return itself. If you did not attach a
required schedule the service will contact you and ask for the missing
information.
If you did not report all your income or did not claim a credit, you are
entitled to file an amended or corrected return using
Form 1040X (PDF),
Amended U.S. Individual Income Tax Return. Include copies of
any schedules that have been changed or any
Form W-2 (PDF) you did not
include. The Form 1040X
(PDF) should be submitted after you receive your refund or by the due date of
the return, whichever, is earlier. Generally, to claim a refund, the
Form 1040X (PDF) must be
received within three years after the date you filed your original return or
within two years after the date you paid the tax, whichever is later.
References:
I received a refund that is more than I should have received
because I've discovered I made a mistake on my return. I have not yet cashed
this check. What should I do now?
Many mistakes are corrected in processing and a letter of explanation is mailed
at the time the refund is issued. If the mistake was not corrected in
processing, you need to file an amended or corrected return using
Form 1040X (PDF),
Amended U.S. Individual Income Tax Return, as soon as
possible. Include copies of any schedules that have been changed or any
Form W-2 (PDF) you did not
include. If you return the refund check with a letter of explanation, a refund
in the correct amount will be issued when the IRS processes the amended return.
References:
Can you send an amended tax return electronically?
No, an amended return must be filed on a paper
Form 1040X (PDF),
Amended U.S. Individual Income Tax Return, and mailed to your
servicing center for processing. You may submit the form after the IRS processes
your original return.
References:
How can I check the status of my amended return?
You will need to contact our assistance line at (800) 829-1040 to receive
information on the processing of your amended return. Amended/corrected returns
are processed as quickly as possible. However, it could take 8 to 12 weeks to
process an amended return.
References:
Should I notify the IRS of my change of address?
If you moved, you need to notify the IRS of your new address. We can change our
records so that any tax refunds due you or any other IRS communications will
reach you in a timely manner. Refer to
Tax Topic 157,
Change of Address - How to Notify IRS, for additional
information.
References:
My son was born on December 31st. Can I claim him as a dependent?
If so, will he be also qualified for the Child Tax Credit?
If your child was born alive during the year, and the exemption tests are met,
you may take the full exemption. You may be entitled to a Child Tax Credit for
him. Please refer to
Publication 501, Exemptions, Standard Deduction and Filing
Information. Please refer to the
Form 1040 Instructions
for information about the Child Tax Credit.
References:
Does the Form 8332 (used to release the exemption to the
noncustodial parent) affect the child tax credit?
Yes. The child tax credit can only be claimed by the parent claiming the
exemption. In this case the noncustodial parent would qualify for the dependency
exemption and therefore the child tax credit. Please refer to "Child tax
credits" in the index to the
Form 1040 Instructions, Individual Income Tax Return
or the Form 1040A
Instructions, U.S. Individual Income Tax Return. The
referenced pages will explain who qualifies for this credit, and how to
calculate it.
For more information refer to
Publication 17,
Your Federal Income Tax,
Publication 972,
Child Tax Credit, or Tax
Topic 606, Child Tax Credit.
Can I claim both, the child tax credit and the child and dependent
care credit?
Generally, you can claim both the child tax credit and the child and dependent
care credit on the same return if you qualify for both credits. If you qualify
for one or both credits, you can claim the credits on
Form 1040 (PDF),
U.S. Individual Income Tax Return, or
Form 1040A (PDF),
U.S. Individual Income Tax Return. Please refer to "Child tax
credit" in the index to the instructions for
Form 1040 Instructions or
the Form 1040A Instructions
. The referenced pages will explain who qualifies for the child tax credit, and
how to calculate it. Refer also to
Publication 17,
Your Federal Income Tax,Publication 503,
Child and Dependent Care Expenses,
Tax Topic 602
Child and Dependent Care Credit and
Tax Topic 606,
Child Tax Credit.
References:
Can I claim the child tax credit for a child who has an ITIN,
rather than a social security number?
Yes, you can claim the child tax credit for a child with an ITIN (individual tax
identification number) if you otherwise qualify.
Please refer to "Child tax credits" in the index to the instructions for
Form 1040 Instructions or
Form 1040A Instructions
. The referenced pages will explain who qualifies for the child tax credit, and
how to calculate it. For additional information, refer to
Publication 972,
Child Tax Credit or
Tax Topic 606,
Child Tax Credit.
My child was born and only lived 40 minutes. Can she be used as a
qualifying child when figuring the earned income credit and the child tax
credit?
If your child was born alive and died during the same year, and the exemption
tests are met, you can take the full exemption. This is true even if the child
lived only for a moment. Whether your child was born alive depends on state or
local law. There must be proof of a live birth shown by an official document
such as a birth certificate. Under these circumstances, if you do not have a
social security number for the child, you may attach a copy of the child's birth
certificate instead and enter "DIED" in column 2 of
line 6c of the Form 1040
(PDF) or Form 1040A
(PDF).
Normally, to be qualifying child and meet the residency test, your child must
have lived with you for more than half of the tax year. For earned income credit
purposes, if your child was not alive for more than half of the year, the year,
the child is considered to meet the test as if the child lived with you for the
entire time he or she was alive during the year. The earned income credit
generally requires that you provide a valid social security number for your
qualifying child. If you meet all the other requirements to claim this credit
and your child was born and died in the same year, you will not be required to
provide a social security number for that child. Instead, you may enter
"DIED" on line 4 of
Form 1040, Schedule EIC (PDF) Earned Income Credit,
and attach a copy of the child's birth certificate.
References:
I donated a used car to a qualified charity. I itemize my
deductions, and I would like to take a charitable contribution for the donation.
Do I need to attach any special forms to my return? What records do I need to
keep?
If you claim a deduction on your return of over $500 for all contributed
property, you must attach a
Form 8283 (PDF), Noncash Charitable Contributions, to
your return. If you claim a total deduction of $5,000 or less for all
contributed property, you need only complete Section A of
Form 8283 (PDF). If you
claim a deduction of more than $5,000 for an item or a group of similar items,
you generally need to complete Section B of
Form 8283 (PDF) which
requires, in most cases, an appraisal by a qualified appraiser.
You will need to obtain and keep evidence of your car donation and be able to
substantiate the fair market value of the car. If you are claiming a deduction
of $250 or more for the car donation, you will also need a contemporaneous
written acknowledgement from the charity that includes a description of the car
and a statement of whether the charity provided any goods or services in return
for the car and, if so, a description and estimate of the fair market value of
the goods or services.
For more information on these requirements, refer to
Publication 526,
Charitable Contributions;
Publication 561,
Determining the Value of Donated Property; Form 8283,
Noncash Charitable Contributions, and its instructions.
If I moved out of my house on July 10, but was not divorced at the
end of the year, can I file as head of household and take the earned income
credit if I have a minor child? Can I also claim child care expenses?
You do not qualify for the head of household filing status because you and your
spouse have not lived apart for the last 6 months of the taxable year and are
not considered unmarried. Your filing status for the year will either be married
filing separately, or married filing jointly. If it is married filing
separately, you will not qualify for the Earned Income Credit and cannot claim a
credit based on child care expenses. If you file a joint return with your
spouse, you may be eligible to claim these credits. See
Publication 503,
Child and Dependent Care Expenses and
Publication 596,
Earned Income Credit.
References:
My child was born and only lived 40 minutes. Can she be used as a
qualifying child when figuring the earned income credit and the child tax
credit?
If your child was born alive and died during the same year, and the exemption
tests are met, you can take the full exemption. This is true even if the child
lived only for a moment. Whether your child was born alive depends on state or
local law. There must be proof of a live birth shown by an official document
such as a birth certificate. Under these circumstances, if you do not have a
social security number for the child, you may attach a copy of the child's birth
certificate instead and enter "DIED" in column 2 of
line 6c of the Form 1040
(PDF) or Form 1040A
(PDF).
Normally, to be qualifying child and meet the residency test, your child must
have lived with you for more than half of the tax year. For earned income credit
purposes, if your child was not alive for more than half of the year, the year,
the child is considered to meet the test as if the child lived with you for the
entire time he or she was alive during the year. The earned income credit
generally requires that you provide a valid social security number for your
qualifying child. If you meet all the other requirements to claim this credit
and your child was born and died in the same year, you will not be required to
provide a social security number for that child. Instead, you may enter
"DIED" on line 4 of
Form 1040, Schedule EIC (PDF) Earned Income Credit,
and attach a copy of the child's birth certificate.
References:
Must I be entitled to claim a child as a dependent to claim the
earned income credit based on the child being my qualifying child?
You do not have to be entitled to claim the child as a dependent to claim the
earned income credit based on the child being your qualifying child. If,
however, the child is married, you must be entitled to claim the child as a
dependent unless the reason you are not entitled to claim your married child as
a dependent is that you released a claim to a dependency exemption for the child
under the special rule for divorced or separated parents or parents who live
apart. For more information, refer to Rules 8 and 9, Qualifying Child, in
Publication 596,
Earned Income Credit.
Refer to Publication
596, Earned Income Credit, for a full discussion of
the earned income credit rules.
References:
If the noncustodial parent receives permission from the custodial
parent to claim a child on his or her tax return, is the noncustodial parent
eligible for the earned income credit?
The noncustodial parent cannot claim the earned income credit on the basis of
that child because the child did not live with that parent for more than half of
the tax year, and therefore does not meet the residency test. The custodial
parent may be able to claim the earned income credit.
Refer to Publication
596, Earned Income Credit, for the earned income
credit rules.
References:
My wife and I have two children and we are going to file separate
returns this year. Can we each claim one child for the earned income credit?
In order to qualify for the earned income credit, your filing status cannot be
married filing separately. If you are married, you usually must file a joint
return to claim the earned income credit.
However, if you are married and your spouse did not live in your home at any
time during the last 6 months of the year, you may be able to file as head of
household. In that case, you may be able to claim the earned income credit.
Please refer to
Publication 596, Earned Income Credit, for a complete
discussion of the earned income credit. Refer to
Publication 501,
Exemptions, Standard Deduction, and Filing Information,
for the head of household filing status rules.
References:
Is child support considered earned income when calculating the
earned income credit?
No, for purposes of calculating the earned income credit, child support is not
considered earned income.
Please refer to
Publication 596, Earned Income Credit, for a complete
discussion of the earned income credit.
References:
If both parents want to claim the earned income credit, who is
entitled to it if there was no marriage?
If the child is a qualifying child of both parents, they may choose which one
will claim the credit. If there are two qualifying children, each parent may
claim the credit on the basis of one of the children or one parent may claim the
credit on the basis of both children. If both actually claim the credit on the
basis of the same child, the parent who is entitled to the credit is the parent
with whom the child lived for the longer period of time during the tax year, or
the parent with the higher adjusted gross income (AGI) if the child lived with
each parent for the same amount of time during the year.
Refer to Publication
596, Earned Income Credit, for full discussion of the
earned income credit rules.
References:
Can I get the earned income credit?
You may be able to take this credit if your earned income does not exceed a
maximum dollar amount set by law. The maximum dollar amount is based on your
filing status and whether you have a qualifying children or not. Other rules
apply. For details, refer to
Tax Topic 601,
Earned Income Credit, or
Publication 596,
Earned Income Credit.
Can Form 1040EZ be used to claim the earned income credit?
You can use Form 1040EZ
(PDF) when claiming the earned income credit only if you do not have a
qualifying child. However, you must meet several requirements to use
Form 1040EZ (PDF). If
you do not meet all of them, you must use
Form 1040A (PDF) or
Form 1040 (PDF). For
additional information on the requirements, refer to
Tax Topic 352,
Which Form - 1040, 1040A or 1040EZ.
I received a Form 1099-MISC instead of a Form W-2. I'm not
self-employed, I do not have a business. How do I report this income?
If payment for services you provided is listed in box 7 of
Form 1099-MISC (PDF),
you are being treated as a self-employed worker, also referred to as an
independent contractor. You do not necessarily have to "have a business," but
simply perform services as a nonemployee to have your compensation treated this
way. The payer has determined that an employer-employee relationship does not
exist in your case. That determination is complex, but is essentially made by
examining the right to control how, when, and where you perform those services.
It is not based on how you are paid, how often you are paid, nor whether you
work part-time or full-time. There are three basic areas that are relevant to
determine employment status:
- behavioral control,
- financial control, and
- relationship of the parties
For more information on employer-employee relationships, refer to Chapter 2 of
Publication 15,
Circular E, Employer's Tax Guide and Chapter 2 of
Publication 15-A (PDF),
Employer's Supplemental Tax Guide. If you think that you were, or
are, an employee and you would like the IRS to issue a determination, you may
submit Form SS-8 (PDF),
Determination of Worker Status for Purposes of Federal Employment
Taxes and Income Tax Withholding.
Unless you think you were an employee, you report your nonemployee compensation
on Form 1040, Schedule C
(PDF), Profit or Loss from Business (Sole Proprietorship),
or Form 1040, Schedule
C-EZ (PDF), Net Profit from Business. You also need to
complete Form 1040,
Schedule SE (PDF), Self-Employment Tax, and pay
self-employment tax on your net earnings from self-employment, if you had net
earnings from self-employment of $400 or more. This is the manner by which
self-employed persons pay into the Social Security and Medicare trust funds.
Employees pay into the Social Security and Medicare trust funds , as well as
income tax withholding, through deductions from their paychecks. Generally,
there are no tax withholding on self-employment income. However, you may be
subject to the requirement to make quarterly estimated tax payments. If you did
not make estimated tax payments, you may be charged a penalty for underpayment
of estimated tax penalty.
References:
I am self-employed. How do I report my income and how do I pay
Medicare and social security taxes?
You are a sole proprietor if you are the sole owner of a business that is not a
corporation. Report your income and expenses from your sole proprietorship on
Form 1040, Schedule C
(PDF), Profit or Loss from Business (Sole Proprietorship)
or on Form 1040, Schedule
C-EZ (PDF), Net Profit from Business.
If the total of your net earnings from self-employment from all businesses is
$400 or more, you must pay into the Social Security and Medicare systems by
filing Form 1040, Schedule
SE (PDF), Self-Employment Tax. Self-Employment tax
consists of the Old-Age, Survivors, and Disability Insurance (social security)
and the Hospital Insurance (Medicare) taxes. For more information refer to
chapter 1 of
Publication 334, Tax Guide for Small Business.
The Federal tax system is based on a pay-as-you-go plan. Tax is generally
withheld from employees wages or salary before they get it. However, tax is
generally not withheld from self-employment income. Thus, you may be required to
make estimated tax payments.
Publication 505,
Tax Withholding and Estimated Tax, provides information on
making estimated tax payments.
My son is a newspaper carrier. I would like to know if this income
is subject to Social Security and Medicare tax and if I must file a Schedule C
for him?
Your son may be liable to pay into the Social Security and Medicare system by
paying self-employment tax. However, if your son is under the age of 18, he is
exempt from self-employment tax. His employer should complete the other income
box on Form 1099-MISC
(PDF), Miscellaneous Income. Persons engaged in the trade
or business of delivering or distributing newspapers or shopping news (including
any services directly related to such delivery or distribution) are considered
by statute as nonemployees and are treated as self-employed for all Federal tax
purposes, including income and employment taxes. Self-employed persons report
their income on Form 1040,
Schedule C (PDF), Profit or Loss from Business (Sole
Proprietorship), or you may qualify to use
Form 1040, Schedule C-EZ
(PDF), Net Profit from Business. See
Form 1040, Schedule SE
(PDF), Self-Employment Tax which must be filed if net
earnings from self-employment are $400 or more.
References:
I received a Form 1099-MISC with an amount in box 7, (nonemployee
compensation). What forms and schedules should be used to report income earned
as an independent contractor?
Independent contractors report their income on
Form 1040, Schedule C
(PDF), Profit or Loss from Business (Sole Proprietorship),
or you may qualify to use
Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole
Proprietorship). You should also be aware of
Form 1040, Schedule SE
(PDF), Self-Employment Tax, which must be filed if net
earnings from self-employment are $400 or more. This form is used to figure your
social security and Medicare tax which is based on your net self-employment
income. You may also need to file
Form 2210 (PDF),
Underpayment of Estimated Tax by Individuals, Estates & Trusts, if you do not
make estimated tax payments.
References:
What, if any, quarterly forms must I file to report income as an
independent contractor?
Because you generally will have no withholding taken from your income, you may
need to make quarterly estimated tax payments. For information on how to make
estimated tax payments refer to
Form 1040-ES (PDF),
Estimated Tax for Individuals.
You need to be aware that there may be state and local requirements for
estimated tax payments. You can start looking for information at
How to Contact Us. You may want
to go to your state's individual Web site for additional information. To access
the state you need go to our
Alphabetical State Index.
References:
Small Business/Self-Employed/Other Business : Form 1099–MISC &
Independent Contractors
What is the difference between a Form W-2 and a Form 1099-MISC?
Both of these forms are called information returns. The Form W-2 is used by
employers to report wages, tips and other compensation paid to an employee. The
form also reports the employee's income tax and Social Security taxes withheld
and any advanced earned income credit payments. The Form W-2 is provided by the
employer to the employee and the Social Security Administration. A Form
1099-MISC is used to report payments made in the course of a trade or business
to another person or business who is not an employee. The form is required among
other things, when payments of $10 or more in gross royalties or $600 or more in
rents or compensation are paid. The form is provided by the payer to the IRS and
the person or business that received the payment.
References:
How do you determine if a person is an employee or an independent
contractor?
The determination is complex, but is essentially made by examining the right to
control how, when, and where the person performs services. It is not based on
how the person is paid, how often the person is paid, or whether the person
works part-time or full-time. There are three basic areas which determine
employment status:
- behavioral control
- financial control and
- relationship of the parties
For more information on employer-employee relationships, refer to Chapter 2 of
Publication 15,
Circular E, Employer's Tax Guide and Chapter 2 of
Publication 15-A (PDF),
Employer's Supplemental Tax Guide. If you would like the
IRS to determine whether services are performed as an employee or independent
contractor, you may submit
Form SS-8 (PDF), Determination of Worker Status for Purposes of
Federal Employment Taxes and Income Tax Withholding.
Unless you think you were an employee, you should report your nonemployee
compensation on Form 1040,
Schedule C (PDF), Profit or Loss from Business (Sole
Proprietorship), or Form
1040, Schedule C-EZ (PDF), Net Profit From Business.
You also need to complete
Form 1040, Schedule SE (PDF), Self-Employment Tax, and
pay self-employment tax on your net earnings from self-employment, if you had
net earnings from self-employment of $400 or more. This is the method by which
self-employed persons pay into the social security and Medicare trust funds.
Generally, there are no tax withholding on this income. Thus, you may have been
subject to the requirement to make quarterly estimated tax payments. If you did
not make timely estimated tax payments, you may be assessed a penalty for an
underpayment of estimated tax. Employees pay into the social security and
Medicare trust funds, as well as income tax withholding, through payroll
deductions.
If you are not sure whether you are an independent contractor or an employee,
complete Form SS-8 (PDF),
Determination of Employee Work Status for Purposes of Federal
Employment Taxes and Income Tax Withholding. For more information on
employer-employee relationships, refer to Chapter 2 of
Publication 15,
Circular E, Employer's Tax Guide, and Chapter 2 of
Publication 15-A (PDF),
Employer's Supplemental Tax Guide, and
Publication 1779 (PDF),
Employee Independent Contractor Brochure. For information
on the tax responsibilities of self-employed persons, refer to Chapter 2 of
Publication 505,
Tax Withholding and Estimated Tax.
References:
I made some money repairing radios and television sets last year.
How do I report this income?
This is self-employment income. A person with income from Self-Employment files
Form 1040, Schedule C
(PDF), Profit or Loss from Business, or in some cases,
files Form 1040, Schedule
C-EZ (PDF), Net Profit from Business, to report the
profit or loss from the business, and files
Form 1040, Schedule SE
(PDF), Self-Employment Tax, to figure Social Security and
Medicare Tax. Refer to Tax
Topic 407, Business Income, and
Publication 334,
Tax Guide for Small Business, for additional information.
When there is no federal withholding taken out of your self-employment income,
you may need to make quarterly estimated tax payments. This is done using a
Form 1040-ES (PDF),
Estimated Tax for Individuals.
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