While each individual tax return is unique, there are some tax rules that affect every person who files a federal income tax return. These rules involve dependents and exemptions. The IRS has six important facts about dependents and exemptions that will help you file your 2012 tax return.

1. Exemptions reduce taxable income.  There are two types of exemptions: personal exemptions and exemptions for dependents. You can deduct $3,800 for each exemption you claim on your 2012 tax return.

2. Personal exemptions.  You usually may claim one exemption for yourself on your tax return. You also can claim one for your spouse if you are married and file a joint return. If you and your spouse file separate returns, you may claim the exemption for your spouse only if he or she had no gross income, is not filing a joint return and was not the dependent of another taxpayer.

3. Exemptions for dependents.  Generally, you can claim an exemption for each of your dependents. A dependent is either your qualifying child or qualifying relative. If you are married, you may not claim your spouse as your dependent. You must list the Social Security Number of each dependent you claim on your return. See Publication 501, Exemptions, Standard Deduction, and Filing Information, for information about dependents who do not have Social Security numbers.

4. Some people do not qualify as dependents.  While there are some exceptions, you generally may not claim a married person as a dependent if they file a joint return with their spouse.

5. Dependents may have to file.  If you can claim someone else as your dependent on your tax return, that person may still be required to file his or her own tax return. Whether they must file a return depends on several factors, including the amount of their gross income (both earned and unearned income), their marital status and any special taxes they owe.

6. Dependents can’t claim a personal exemption.  If you can claim another person as a dependent on your tax return, that person may not claim a personal exemption on his or her own tax return. This is true even if you do not actually claim that person as your dependent on your tax return. The fact that you could claim that person disqualifies them from claiming a personal exemption.

Remember that a person must meet several tests in order for you to claim them as your dependent. See Publication 501 for the tests you will use to determine if you can claim a person as your dependent.

You can view or download Publication 501 at IRS.gov or order it by calling 800-TAX-FORM (800-829-3676). You can also use the Interactive Tax Assistant at IRS.gov to find out if a person qualifies as your dependent. The ITA is a helpful tool that can answer many of your tax law questions.

Additional IRS Resources:

• Interactive Tax Assistant
• Publication 501, Exemptions, Standard Deduction, and Filing Information

ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs

The Business Rules for Form Family 1120 TY2012v2.0 have been updated on IRS.gov.

Questions or comments may be directed to the e-help Desk at 1-866-255-0654.

You can now order your tax return or account transcript online. Using the IRS’s automated self-service
applications to order transcripts is convenient and easy. A transcript is acceptable as a substitute for an
exact copy of a previously filed tax return in many situations. The IRS offers two types of transcripts defined
below:
• A tax return transcript shows most line items from your tax return as originally filed, including any
accompanying forms and schedules. It does not reflect any changes made after the return was filed.
• A tax account transcript shows any later adjustments either you or the IRS made after the tax return
was filed. This transcript shows basic information – including marital status, type of return filed,
adjusted gross income and taxable income.

At 9:00 am, Eastern Standard Time (February 4, 2013), the Modernized e-File (MeF) system began accepting Tax Year 2012 Business Tax Returns with the exception of the limited list of forms that can be attached to the business return.

Please refer to the QuickAlert issued on February 1, 2013 for the list of forms still on hold that cannot be filed at this time.

The IRS announced on Monday that taxpayers filing Form 8863, to claim the American Opportunity Tax Credit or the Lifetime Learning Credit can begin filing by the middle of February after the IRS updates its processing systems. The delayed start will have no impact on taxpayers claiming other education-related tax benefits, such as the tuition and fees deduction and the student loan interest deduction.

Filers who need to attach Form 8863 used to claim the American Opportunity Tax Credit and the Lifetime Learning Credit to their tax return can prepare their return now but must wait to submit it in mid-February. This applies to paper and electronically filed Forms 8863.

As you guide taxpayers through the available education credits and deductions, in person or through the tax preparation software you use, please be sure to hold returns for those taxpayers who would benefit the most from waiting and filing the Form 8863, even though some taxpayers may be in a hurry to get a refund. Remember, taxpayers filing an amended return to claim an additional refund must wait until they’ve received their original refunds. Also, keep in mind that an amended tax return cannot be filed electronically and normal processing time for Form 1040X is eight to 12 weeks from the IRS receipt date. We want taxpayers to claim the combination of education credits and deductions that is most advantageous to them.

Updated information will be posted on IRS.gov as it becomes available.

Many businesses will be able to file their 2012 federal income tax returns starting Monday, Feb. 4. Filers of forms affected by January tax law changes will need to wait until late February or early March.

The Monday opening covers non-1040 series business returns for calendar year 2012, including  Form 1120  filed by corporations, Form 1120S filed by S corporations, Form 1065  filed by partnerships, Form 990 filed by exempt organizations and most users ofForm 720 , Quarterly Excise Tax Return. This includes both electronic filers and paper filers.

While many businesses will be able to file starting Feb. 4, there are a number of business forms still being updated for 2012. The IRS will announce soon when individual and business taxpayers can begin filing returns that include any of the delayed forms. Processing of these forms were delayed while the IRS completes programming and testing of its processing systems to reflect changes made by the American Taxpayer Relief Act (ATRA) enacted by Congress on Jan. 2.

A full list of the affected forms is available on IRS.gov.

In addition to the forms listed on IRS.gov, filing of two other business forms is affected by the delay, but only for electronic filers. Businesses using Form 720 and filling out lines 13 and 14 cannot file yet electronically, but they can file on paper. Other Forms 720 are being accepted electronically. In addition, Form 8849 Schedule 3, Claim for Refund of Excise Taxes, is not currently being accepted electronically, but it can be filed on paper.

Additional information will be posted soon on IRS.gov.

IRS YouTube Videos
Help for Disaster Victims: English | Spanish |ASL

How to Request a Copy of Your Tax Return: English | ASL

Podcast
Disaster Assistance: English | Spanish

WASHINGTON –– In the aftermath of Hurricane Sandy, the Internal Revenue Service announced additional tax relief to affected individuals and businesses. The IRS today is further extending tax deadlines of that relief until April 1 for the following localities:

• In New Jersey (starting Oct. 26): Monmouth and Ocean counties.
• In New York (starting Oct. 27): Nassau, Queens, Richmond and Suffolk counties.

Beyond the relief provided by law to taxpayers in the FEMA-designated counties, the IRS will work with any taxpayer who resides outside the disaster area but whose books, records or tax professional are located in the areas affected by Hurricane Sandy. All workers assisting the relief activities in the covered disaster areas who are affiliated with a recognized government or philanthropic organization are eligible for relief.  Taxpayers who live outside of the impacted area and think they may qualify for this relief need to contact the IRS at 866-562-5227.

The IRS also announced today that Taxpayer Assistance Centers in several New York and New Jersey locations will be open additional hours to provide help to taxpayers impacted by Hurricane Sandy. There will also be special assistance available at several New Jersey and New York locations on Saturday, February 23 from 9 a.m. until 2 p.m. More information will be available on irs.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting in late October. As a result, affected individuals and businesses will have until April 1, 2013, to file these returns and pay any taxes due. This includes the fourth quarter individual estimated tax payment, normally due Jan. 15, 2013. It also includes payroll and excise tax returns and accompanying payments for the third and fourth quarters, normally due on Oct. 31, 2012 and Jan. 31, 2013 respectively, and calendar year corporate income tax returns due March 15. It also applies to tax-exempt organizations required to file Form 990 series returns with an original or extended deadline falling during this period. 

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

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

Effective at 9:00 am, Eastern on Monday, February 4th, the IRS will begin accepting many of the TY 2012 calendar and fiscal-year Corporate (Form 1120 series), Partnership (Forms 1065/1065-B), and Tax Exempt Organization (Form 990 series) income tax returns with the exception of filers claiming depreciation deductions and various energy and business tax credits. The IRS plans to accept the remaining tax returns in late February or early March. 

In general, this means any business attaching Form 3800 (General Business Credits), Form 4562 (Depreciation and Amortization) or any of the other forms listed below, should wait to file their 2012 tax return at the later date. A specific date will be announced in the near future. 

Forms on hold: 

• Form 3800 General Business Credit  
• Form 4136 Credit for Federal Tax Paid on Fuel 
• Form 4562 Depreciation and Amortization (Including Information on Listed Property) 

• Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations
• Form 5735 American Samoa Economic Development Credit
• Form 5884 Work Opportunity Credit
• Form 6478 Credit for Alcohol Used as Fuel
• Form 6765 Credit for Increasing Research Activities
• Form 8820 Orphan Drug Credit
• Form 8834 Qualified Plug-in Electric and Electric Vehicle Credit
• Form 8844 Empowerment Zone and Renewal Community Employment Credit
• Form 8845 Indian Employment Credit
• Form 8864 Biodiesel and Renewable Diesel Fuels Credit
• Form 8874 New Markets Credits
• Form 8900 Qualified Railroad Track Maintenance Credit
• Form 8903 Domestic Production Activities Deduction
• Form 8908 Energy Efficient Home Credit
• Form 8909 Energy Efficient Appliance Credit
• Form 8910 Alternative Motor Vehicle Credit
• Form 8911 Alternative Fuel Vehicle Refueling Property Credit
• Form 8912 Credit to Holders of Tax Credit Bonds
• Form 8923 Mine Rescue Team Training Credit
• Form 8932 Credit for Employer Differential Wage Payments
• Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit  

Filing of two other business forms is affected by the delay, but only for electronic filers. Businesses using Form 720 and filling out lines 13 and 14 cannot file yet electronically, but they can file on paper. Other Forms 720 are being accepted electronically. In addition, Form 8849 Schedule 3, Claim for Refund of Excise Taxes, is not currently being accepted electronically, but it can be filed on paper.

IRS e-file makes it easy for taxpayers to choose which tax form to file. Tax software automatically chooses the best form for your particular situation. Most people e-file these days, but if you prefer taking pen to paper, the IRS has some tips to help you choose the right form.

Taxpayers who choose to file a paper tax return should know that the IRS no longer mails paper tax packages. The quickest way to get forms and instructions is by visiting the IRS website at IRS.gov. You can also order forms and have them mailed to you by calling the IRS forms line at 1-800-TAX-FORM (829-3676). You may also pick up tax forms from a local IRS office, and some libraries and post offices carry tax forms.

Here are some tips that will help paper tax return filers choose the best tax form for their situation.

You can generally use the 1040EZ if:

• Your taxable income is below $100,000;
• Your filing status is single or married filing jointly;
• You are not claiming any dependents; and

        
If you can’t use Form 1040EZ, you may qualify to use the 1040A if:

• Your taxable income is below $100,000;
• You have capital gain distributions;
• You claim certain tax credits; and

You claim adjustments to income for IRA contributions and student loan interest.

If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. The reasons you must use the 1040 include:

• Your taxable income is $100,000 or more;
• You claim itemized deductions;
• You are reporting self-employment income; and         

IRS Publication 17, Your Federal Income Tax, provides helpful information about which form is best for you.

Access to IRS forms and instructions or information about e-filing, including IRS Free File, is available 24 hours a day, seven days a week on IRS.gov. Tax products often appear online well before they are available on paper. You'll find downloadable tax products on IRS.gov by clicking on the "Forms and Pubs" link on the Home page.

Additional IRS Resources:

• Free File: Do Your Federal Taxes for Free
• IRS Forms & Publications
• Publication 17, Your Federal Income Tax

IRS YouTube Videos:

• Do Your Taxes for Free: Taxes Made Less Taxing - English
• IRS Tax Forms and Publications - English | Spanish | ASL

IRS Podcasts:

• Tax Forms and Publications - English | Spanish

The following updates have been posted on IRS.gov.

Tax Year 2012

• Known e-file issues and solutions on the 2012 Valid XML Schemas and Business Rules for 1120, 1120S, 1120-F, and 7004 Modernized e-File (MeF) web page.

Questions or comments may be directed to the e-help Desk at 1-866-255-0654.