If you are a U.S. citizen or resident, whether you must file a return depends on three factors:

To find out whether you must file, see Table 1-1, Table 1-2, and Table 1-3. Even if no table shows that you must file, you may need to file to get money back. (See Who Should File , later.)

Self-employed individuals.   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 1d of Schedule C-EZ (Form 1040), Net Profit From Business; and line 9 of Schedule F (Form 1040), Profit or Loss From Farming. See Self-Employed Persons , later, for more information about your filing requirements.

  

If you do not report all of your self-employment income, your social security benefits may be lower when you retire.

If you are a dependent (one who meets the dependency tests in chapter 3), see Table 1-2 to find whether you must file a return. You also must file if your situation is described in Table 1-3.

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 2011 or was a full-time student under age 24 at the end of 2011, and certain other conditions are met, a parent can elect to include the child's income on the parent's return. If this election is made, the child does not have to file a return. See Parent's Election To Report Child's Interest and Dividends in chapter 30.

You are self-employed if you:

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.

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). Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if:

Use Schedule SE (Form 1040) to figure your self-employment tax. Self-employment tax is comparable to the social security and Medicare tax withheld from an employee's wages. For more information about this tax, see Publication 334, Tax Guide for Small Business.

Your status as an alien—resident, nonresident, or dual-status—determines whether and how you must file an income tax return.

The rules used to determine your alien status are discussed in Publication 519, U.S. Tax Guide for Aliens.

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.

Form 1040EZ is the simplest form to use.

If you do not qualify to use Form 1040EZ, you may be able to use Form 1040A.

You can use Form 1040A if all of the following apply.   

1. Your income is only from wages, salaries, 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.

2. Your taxable income is less than $100,000.

3. Your adjustments to income are for only the following items.

   1. Educator expenses.

   2. IRA deduction.

   3. Student loan interest deduction.

   4. Tuition and fees.

4. You do not itemize your deductions.

5. Your taxes are from only the following items.

   1. Tax Table.

   2. Alternative minimum tax. (See chapter 29.)

   3. Recapture of an education credit. (See chapter 34.)

   4. Form 8615, Tax for Certain Children Who Have Investment Income of More Than $1,900.

   5. Qualified Dividends and Capital Gain Tax Worksheet.

6. You claim only the following tax credits.

   1. The credit for child and dependent care expenses. (See chapter 31.)

   2. The credit for the elderly or the disabled. (See chapter 32.)

   3. The education credits. (See chapter 34.)

   4. The retirement savings contribution credit. (See chapter 36.)

   5. The child tax credit. (See chapter 33.)

   6. The earned income credit. (See chapter 35.)

   7. The additional child tax credit. (See chapter 33.)

7. You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option. (See Publication 525, Taxable and Nontaxable Income.)

  You must meet all of the above requirements to use Form 1040A. If you do not, you must use Form 1040.

  If you meet the above requirements, you can use Form 1040A even if you received employer-provided dependent care benefits.

  

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. You must use Form 1040.

If you cannot use Form 1040EZ or Form 1040A, you must use Form 1040. You can use Form 1040 to report all types of income, deductions, and credits.

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.

Using e-file does not affect your chances of an IRS examination of your return.

For more details, visit www.irs.gov/efile and click on “ Individual Taxpayers. ”

Using Your Personal Computer

You can file your tax return in a fast, easy, and convenient way using your personal computer. A computer with Internet access and tax preparation software are all you need. Best of all, you can e-file from the comfort of your home 24 hours a day, 7 days a week.

IRS approved tax preparation software is available for online use on the Internet, for download from the Internet, and in retail stores.

For information, visit www.irs.gov/efile.

You may be able to get an extension of time to file your return. Special rules apply for those who were:

Automatic Extension

If you cannot file your 2011 return by the due date, you may be able to get an automatic 6-month extension of time to file.

Example.

If your return is due on April 17, 2012, you will have until October 15, 2012, to file.

If you do not pay the tax due by the regular due date (generally, April 15), you will owe interest. You may also be charged penalties, discussed later.

How to get the automatic extension.   You can get the automatic extension by:

1. Using IRS e-file (electronic filing), or

2. Filing a paper form.

E-file options.   There are two ways you can use e-file to get an extension of time to file. Complete Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, to use as a worksheet. If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. If you e-file Form 4868 to the IRS, do not also send a paper Form 4868.

E-file using your personal computer or a tax professional.    You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. You will need to provide certain information from your tax return for 2010. If you wish to make a payment by electronic funds withdrawal, see Electronic payment options , under How To Pay, later in this chapter.

E-file and pay by credit or debit card or by using the Electronic Federal Tax Payment System (EFTPS).   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 using EFTPS. You can do this by phone or over the Internet. You do not file Form 4868. See Electronic payment options , under How To Pay, later in this chapter.

Filing a paper Form 4868.   You can get an extension of time to file by filing a paper Form 4868. Mail it to the address shown in the form instructions.

  If you want to make a payment with the form, make your check or money order payable to the “United States Treasury.” Write your SSN, daytime phone number, and “2011 Form 4868” on your check or money order.

When to file.   You must request the automatic extension by the due date for your return. You can file your return any time before the 6-month extension period ends.

When you file your return.   Enter any payment you made related to the extension of time to file on Form 1040, line 68. 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. Also enter “Form 4868” and the amount paid in the space to the left of line 9 or line 41.

You must figure your taxable income on the basis of a tax year. A “tax year” is an annual accounting period used for keeping records and reporting income and expenses. You must account for your income and expenses in a way that clearly shows your taxable income. The way you do this is called an accounting method. This section explains which accounting periods and methods you can use.

You must enter your social security number (SSN) in the space provided on your return. If you are married, enter the SSNs for both you and your spouse, whether you file jointly or separately.

If you are filing a joint return, write the SSNs in the same order as the names. Use this same order in submitting other forms and documents to the IRS.

Check that both the name and SSN on your Form 1040, W-2, and 1099 agree with your social security card. 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. 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. If the name or SSN on your social security card is incorrect, call the SSA at 1-800-772-1213.

Individual taxpayer identification number (ITIN).   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. This also applies to an alien spouse or dependent. To apply for an ITIN, file Form W-7 with the IRS. It usually takes about 6 weeks to get an ITIN. Enter the ITIN on your tax return wherever an SSN is requested.

  

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. See the Form W-7 instructions for how and where to file.

This fund helps pay for Presidential election campaigns. The fund reduces candidates' dependence on large contributions from individuals and groups and places candidates on an equal financial footing in the general election. If you want $3 to go to this fund, check the box. If you are filing a joint return, your spouse can also have $3 go to the fund. If you check a box, your tax or refund will not change.

The following information on entering numbers on your tax return may be useful in making the return easier to complete.

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 return.

You can authorize the IRS to discuss your return with your preparer, a friend, family member, or any other person you choose. If you check the “Yes” box in the Third party designee area of your 2011 tax return and provide the information required, you are authorizing:

The authorization will automatically end no later than the due date (without any extensions) for filing your 2012 tax return. This is April 15, 2013, for most people.

See your form instructions for more information.

You must sign and date your return. If you file a joint return, both you and your spouse must sign the return, even if only one of you had income.

If you are due a refund, it cannot be issued unless you have signed your return.

Enter your occupation in the space provided in the signature section. If you file a joint return, enter both your occupation and your spouse's occupation. Entering your daytime phone number may help speed the processing of your return.

Generally, anyone you pay to prepare, assist in preparing, or review your tax return must sign it and fill in the other blanks, including their Preparer Tax Identification Number (PTIN), in the paid preparer's area of your return.

Many preparers are required to e-file the tax returns they prepare. They sign these e-filed returns using their tax preparation software. However, you can choose to have your return completed on paper if you prefer. In that case, the paid preparer can sign the paper return manually or use a rubber stamp or mechanical device. The preparer is personally responsible for affixing his or her signature to the return.

If the preparer is self-employed (that is, not employed by any person or business to prepare the return), he or she should check the self-employed box in the Paid Preparer Use Only space on the return.

The preparer must give you a copy of your return in addition to the copy filed with the IRS.

If you prepare your own return, leave this area blank. If another person prepares your return and does not charge you, that person should not sign your return.

If you have questions about whether a preparer must sign your return, contact any IRS office.

When you complete your return, you will determine if you paid more income tax than you owed. If so, you can get a refund of the amount you overpaid or, if you file Form 1040 or Form 1040A, you can choose to apply all or part of the overpayment to your next year's (2012) estimated tax. You cannot have your overpayment applied to your 2012 estimated tax if you file Form 1040EZ.

Follow the form instructions to complete the entries to claim your refund and/or to apply your overpayment to your 2012 estimated tax.

If the direct deposit cannot be done, the IRS will send a check instead.

Joint return and injured spouse.   When a joint return is filed and only one spouse owes a past-due amount, the other spouse can be considered an injured spouse. An injured spouse should file Form 8379, Injured Spouse Allocation, if both of the following apply and the spouse wants a refund of his or her share of the overpayment shown on the joint return.

  

1. You are not legally obligated to pay the past-due amount.

2. You made and reported tax payments (such as federal income tax withheld from your wages or estimated tax payments), or claimed a refundable tax credit (see the credits listed under Who Should File, earlier).

Note.

If the injured spouse's residence was in a community property state at any time during the tax year, then the injured spouse must only meet (1) above.

  If you have not filed your joint return and you know that your joint refund will be offset, file Form 8379 with your return. You should receive your refund within 14 weeks from the date the paper return is filed or within 11 weeks from the date the return is filed electronically.

  If you filed your joint return and your joint refund was offset, file Form 8379 by itself. When filed after offset, it can take up to 8 weeks to receive your refund. Do not attach the previously filed tax return, but do include copies of all Forms W-2 and W-2G for both spouses and any Forms 1099 that show income tax withheld. The processing of Form 8379 may be delayed if these forms are not attached, or if the form is incomplete when filed.

  A separate Form 8379 must be filed for each tax year to be considered.

  

An injured spouse claim is different from an innocent spouse relief request. An injured spouse uses Form 8379 to request the division of the tax overpayment attributed to each spouse. An innocent spouse uses Form 8857, Request for Innocent Spouse Relief, to request relief from joint liability for tax, interest, and penalties on a joint return for items of the other spouse (or former spouse) that were incorrectly reported on the joint return. For information on innocent spouses, see Relief from joint responsibility under Filing a Joint Return in chapter 2.

When you complete your return, you will determine if you have paid the full amount of tax that you owe. If you owe additional tax, you should pay it with your return.

If the IRS figures your tax for you, you will receive a bill for any tax that is due. You should pay this bill within 30 days (or by the due date of your return, if later). See Tax Figured by IRS in chapter 29.

How To Pay

If you have an amount due on your tax return, you can pay by check, money order, credit or debit card. If you filed electronically, you also may be able to make your payment electronically.

You do not have to pay if the amount you owe is less than $1.

Check or money order.   If you pay by check or money order, make it out to the “United States Treasury.” Show your correct name, address, SSN, daytime phone number, and the tax year and form number on the front of your check or money order. If you are filing a joint return, enter the SSN shown first on your tax return.

  For example, if you file Form 1040 for 2011 and you owe additional tax, show your name, address, SSN, daytime phone number, and “2011 Form 1040” on the front of your check or money order. If you file an amended return (Form 1040X) for 2010 and you owe tax, show your name, address, SSN, daytime phone number, and “2010 Form 1040X” on the front of your check or money order.

  Enclose your payment with your return, but do not attach it to the form. If you filed Form 1040 or Form 1040A, complete Form 1040-V, Payment Voucher, and enclose it with your payment and return. Although you do not have to use Form 1040-V, doing so allows us to process your payment more accurately and efficiently. Follow the instructions that come with the form.

  Do not mail cash with your return. If you pay cash at an IRS office, keep the receipt as part of your records.

Payment not honored.   If your check, money order, or any other commercial instrument for payment is not honored by your bank (or other financial institution) and the IRS does not receive the funds, you still owe the tax. In addition, you may be subject to a dishonored payment penalty.

Electronic payment options.   Electronic payment options are convenient, safe, and secure methods for paying individual income taxes. There's no check to write, money order to buy, or voucher to mail. Payments can be made 24 hours a day, 7 days a week.

Credit or debit card.   For information on paying your taxes with a credit or debit card, go to www.irs.gov/e-pay.

Electronic funds withdrawal.   You can e-file and pay in a single step by authorizing an electronic funds withdrawal from your checking or savings account. If you select this payment option, you will need to have your account number, your financial institution's routing transit number, and account type (checking or savings). You can schedule the payment for any future date up to and including the return due date.

  

Be sure to check with your financial institution to make sure that an electronic funds withdrawal is allowed and to get the correct routing and account numbers.

Electronic Federal Tax Payment System (EFTPS).   EFTPS is a free tax payment system that all individual and business taxpayers can use. You can make payments online or by phone.

  Here are just a few of the benefits of this easy-to-use system.

• Convenient and flexible. You can use it to schedule payments in advance. For example, you can schedule estimated tax payments (Form 1040-ES) or installment agreement payments weekly, monthly, or quarterly.

• Fast and accurate. You can make a tax payment in minutes. Because there are verification steps along the way, you can check and review your information before sending it.

• Safe and secure. It offers the highest available levels of security. Every transaction receives an immediate confirmation.

  For more information or details on enrolling, visit www.irs.gov/e-pay or www.eftps.gov or call EFTPS Customer Service at 1-800-316-6541 (individual) or 1-800-555-4477 (business). TTY/TDD help is available by calling 1-800-733-4829.

Estimated tax payments.   Do not include any 2012 estimated tax payment in the payment for your 2011 income tax return. See chapter 4 for information on how to pay estimated tax.

Interest

Interest is charged on tax you do not pay by the due date of your return. Interest is charged even if you get an extension of time for filing.

If the IRS figures your tax for you, interest cannot start earlier than the 31st day after the IRS sends you a bill. For information, see Tax Figured by IRS in chapter 29.

Interest on penalties.   Interest is charged on the failure-to-file penalty, the accuracy-related penalty, and the fraud penalty from the due date of the return (including extensions) to the date of payment. Interest on other penalties starts on the date of notice and demand, but is not charged on penalties paid within 21 calendar days from the date of the notice (or within 10 business days if the notice is for $100,000 or more).

Interest due to IRS error or delay.   All or part of any interest you were charged can be forgiven if the interest is due to an unreasonable error or delay by an officer or employee of the IRS in performing a ministerial or managerial act.

  A ministerial act is a procedural or mechanical act that occurs during the processing of your case. A managerial act includes personnel transfers and extended personnel training. A decision concerning the proper application of federal tax law is not a ministerial or managerial act.

  The interest can be forgiven only if you are not responsible in any important way for the error or delay and the IRS has notified you in writing of the deficiency or payment. For more information, see Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund.

Interest and certain penalties may also be suspended for a limited period if you filed your return by the due date (including extensions) and the IRS does not provide you with a notice specifically stating your liability and the basis for it before the close of the 36-month period beginning on the later of:

• The date the return is filed, or

• The due date of the return without regard to extensions.

For more information, see Publication 556.

Send your check to:

Or, enclose your separate check in the envelope with your income tax return. Do not add this gift to any tax you owe.

Go to www.publicdebt.treas.gov for information on how to make this type of gift online.

You can deduct this gift as a charitable contribution on next year's tax return if you itemize your deductions on Schedule A (Form 1040).

After you have completed your return, fill-in your name and address in the appropriate area of the Form 1040, Form 1040A, or Form 1040EZ.

This part discusses why you should keep records, what kinds of records you should keep, and how long you should keep them.

You probably already keep records in your daily routine. This includes keeping receipts for purchases and recording information in your checkbook. Use this to determine if you need to keep additional information in your records.

If you file a claim for refund, you must be able to prove by your records that you have overpaid your tax.

This part does not discuss the records you should keep when operating a business. For information on business records, see Publication 583, Starting a Business and Keeping Records.

There are many reasons to keep records. In addition to tax purposes, you may need to keep records for warranty or insurance purposes or for getting a loan. Good records will help you:

The IRS does not require you to keep your records in a particular way. Keep them in a manner that allows you and the IRS to determine your correct tax.

You can use your checkbook to keep a record of your income and expenses. In your checkbook you should record amounts, sources of deposits, and types of expenses. You also need to keep documents, such as receipts and sales slips, that can help prove a deduction.

You should keep your records in an orderly fashion and in a safe place. Keep them by year and type of income or expense. One method is to keep all records related to a particular item in a designated envelope.

In this section you will find guidance about basic records that everyone should keep. The section also provides guidance about specific records you should keep for certain items.

Basic records are documents that everybody should keep. These are the records that prove your income and expenses. If you own a home or investments, your basic records should contain documents related to those items. Table 1-7 lists documents you should keep as basic records. Following Table 1-7 are examples of information you can get from these records.

You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support items shown on your return until the period of limitations for that return runs out.

The period of limitations is the period of time in which you can amend your return to claim a credit or refund or the IRS can assess additional tax. Table 1-9 contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period beginning after the return was filed. Returns filed before the due date are treated as being filed on the due date.

You can go online to check the status of your 2011 refund 72 hours after IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after you mail a paper return. If you filed Form 5405, 8379, or 8839 with your return, allow 14 weeks (11 weeks if you filed electronically) before checking your refund status. Be sure to have a copy of your 2011 tax return available because you will need to know the filing status, the first SSN shown on the return, and the exact whole-dollar amount of the refund. To check on your refund, do one of the following.

If you are due a refund, you may get interest on it. The interest rates are adjusted quarterly.

If the refund is made within 45 days after the due date of your return, no interest will be paid. If you file your return after the due date (including extensions), no interest will be paid if the refund is made within 45 days after the date you filed. If the refund is not made within this 45-day period, interest will be paid from the due date of the return or from the date you filed, whichever is later.

Accepting a refund check does not change your right to claim an additional refund and interest. File your claim within the period of time that applies. See Amended Returns and Claims for Refund , later. If you do not accept a refund check, no more interest will be paid on the overpayment included in the check.

If you have moved, file your return using your new address.

If you move after you filed your return, you should give the IRS clear and concise notification of your change of address. The notification may be written, electronic, or oral. Send written notification to the Internal Revenue Service Center serving your old address. You can use Form 8822, Change of Address. If you are expecting a refund, also notify the post office serving your old address. This will help in forwarding your check to your new address (unless you chose direct deposit of your refund). For more information, see Revenue Procedure 2010-16, 2010-19 I.R.B. 664, available at www.irs.gov/irb/2010-19_IRB/ar07.html.

Be sure to include your SSN (and the name and SSN of your spouse, if you filed a joint return) in any correspondence with the IRS.

You should correct your return if, after you have filed it, you find that:

If you need a copy of your return, see Copies of tax returns under What Records Should I Keep, earlier in this chapter.

The IRS provides a direct method to move your claim to court if:

When you file your claim with the IRS, you get the direct method by requesting in writing that your claim be immediately rejected. A notice of claim disallowance will be sent to you.

You have 2 years from the date of mailing of the notice of claim disallowance to file a refund suit in the United States District Court having jurisdiction or in the United States Court of Federal Claims.

The law provides penalties for failure to file returns or pay taxes as required.