Credits and Forms I-CAN!® E-File Supports

I-CAN!® E-File can help you claim the following credits and deductions and file the following forms if you qualify for them on your Federal, California, Michigan, Montana, New York and Pennsylvania returns. For more information about the limitations of I-CAN!® E-File, click here.

Federal


Credits

Deductions

Other Forms and Worksheets

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Credits


Earned Income Credit (Schedule EIC, EIC Worksheet A or B, EIC Investment Income Worksheet)

The Earned Income Tax Credit (EITC) is a special tax credit for low-income working families that can return up to $5,657 to eligible taxpayers. The EITC was created by congress in 1975 to ease the tax burden on working families and individuals and to offset some of their living expenses. Unfortunately 15% to 25% of those eligible for the Earned Income Tax Credit fail to claim it, leaving billions of dollars unclaimed each year. I-CAN!® will help you claim this credit if you are eligible.

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Information to Claim Earned Income Credit After Disallowance (Form 8862)

This form is used to claim the Earned Income Credit after it was reduced or you were not allowed to claim the credit in a prior year.

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Child tax credit (Child Tax Credit Worksheet, Publication 972 Child Tax Credit Worksheet)

The child tax credit is a credit you might be able to claim if you have a child under the age of 17. You must have provided over half of his/her support and he/she must have lived with you for at least 6 months. This child can be your own child or a relative, but must be claimed as a dependent on your tax return.

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Additional child tax credit (Form 8812)

This credit is for certain individuals who get less than the full amount of the child tax credit. If you answered “yes” on line 9, or line 10 of the Child Tax Credit Worksheet you may qualify for the additional child tax credit.

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Child and dependent care credit (Form 2441)

If you paid for someone or a facility to care for your child so you could work or look for work you may be able to claim this credit. Your child must be under the age of 13 or an adult that is not able to care for themselves and someone that you claim as a dependent.

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Education credits (American Opportunity Credit and Lifetime Learning Credit) (Form 8863)

If you, your spouse, or a dependent you claimed on your tax return attended an eligible college you may be able to take the education credits. You cannot take both the education credits and the tuition and fees deduction. I-CAN!® will include in your return the one that gives you the best federal refund or the least tax owed.

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First Time Home Buyer Credit and Repayment of Credit (Form 5405)

This form is used to claim the 2010 first-time homebuyer credit. This form is also used to claim the credit for a qualified long-time resident who purchased a home in 2010. You must meet certain requirements to claim either credit. This form is also used for repayment for the 2008 First-Time Homebuyer Credit.

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Credit for the elderly and disabled (Schedule R)

You may be able to claim this credit if you are permanently and totally disabled or over the age of 65. This credit will be based on your filing status, age, and income. Your income must be $17,500 or less ($25,000 or less if married filing together).

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Retirement savings contributions credit (Saver's Credit) (Form 8880)

If you are saving for retirement and you meet the qualifications you may be able to take this credit. You must not be a full-time student and you must be at least age 18. Your income must be $26,500 or less ($39,750 or less for head of household, $53,000 for married filing together).

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Residential Energy Credits (Form 5695)

If you have made energy saving improvements to your home you may be eligible to take this credit. You may also be able to claim 30% of the cost of energy efficient products (for example solar electric panels, solar water heater, small wind energy property, or geothermal heat pumps) installed in your home.

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Reduction of Tax Attributes Due to Discharge of Indebtedness (Form 982)

This form is used to claim Mortgage Forgiveness when a taxpayer had a mortgage debt canceled from a foreclosure or refinance.

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Excess social security and Tier 1 RRTA tax withheld (Form 1040 line 69)

If you had more than one employer and total wages of more than $106,800, they may have withheld too much social security tax (or tier 1 railroad retirement tax). If the total amount withheld is more than the maximum limit of $6,621.60, you can claim the excess as a credit on your return. However, if the amount from ONE employer is more than the maximum, you should ask your employer to adjust the tax for you.

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Deductions


Standard Deduction Worksheet

The standard deduction is a dollar amount that reduces your taxable income. The standard deduction amount depends on your filing status. The standard deduction is higher for taxpayers who are 65 or older or blind. This worksheet calculates the standard deduction for taxpayers and spouses who are 65 or older or blind.

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Itemized deductions (Schedule A)

An itemized deduction is an eligible expense that you can report on your income tax return in order to reduce your taxable income. You have the choice between taking the standard deduction and itemizing your deductions. If you choose to itemize, I-CAN!® will give you whichever is greater.

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Employee Business Expenses (Form 2106)

If you had job-related expenses, you may be able to deduct these expenses if they were not covered by your employer. You must have records to prove these expenses and you must itemize your deductions to claim this deduction.

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Casualty and Theft Losses (Form 4684)

You may be able to deduct casualty and theft losses to your home, household items and vehicles. Some examples of casualty losses are car accident, fire, earthquake, flood, or vandalism. Casualty losses do not include normal wear and tear. You must itemize your deductions to claim this deduction.

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Noncash Charitable Contributions (Form 8283)

If you itemize your deductions you may be able to deduct your noncash contributions to charitable organizations. If you made a noncash donation of over $500 you must fill out this form. I-CAN!® does not support the donation of vehicles.

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Expenses for Business use of Your Home (Form 8829)

If you used part of your house exclusively for your business you may be able to deduct expenses.

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Depreciation and Amortization (Form 4562)

This form reports the loss in value of long term assets. This allows you to recover the cost of your business property. You can only claim depreciation for business assets using I-CAN!®.

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IRA deduction (IRA Deduction Worksheet)

If you made contributions to a traditional IRA for 2010, you may be able to take an IRA deduction. But you, or your spouse if filing a joint return, must have earned an income to do so.

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Tuition and fees deduction (Form 8917)

If you, your spouse, or dependent you claim, attended an eligible college you may be able to claim this deduction. If you claim the Tuition and Fees deduction then you cannot claim the Education Credits. If you qualify I-CAN!® will give you whichever is better for your return.

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Student loan interest deduction (Student Loan Interest Deduction Worksheet)

If you have a student loan that you are paying interest on you may be able to deduct the interest you paid on it. You do not have to itemize your deductions to claim the interest. The deduction is limited by your total income.

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Health savings account contribution deduction (Form 8889)

If you have a Health Savings Account (HSA), you may be able to deduct the amount you or your employer on your behalf contributed to your account. If you made contributions to or received distributions from a Health Savings Account you will need to submit a form 8889.

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Moving expenses (Form 3903)

If you moved to be closer to a new workplace or business area, you may be able to deduct your moving expenses such as transportation of your belongings, travel and hotel stays. In order to take the deduction, your move has to pass the “distance test” and the “time test”.

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Self-employed health insurance deduction (Form 1040 line 29)

If you are self-employed and you had a net profit for the year, you may be able to deduct the amounts paid of medical insurance for yourself, your spouse (if filing together) and any dependents and (starting March 30, 2010) your children who were under age 27 at the end of 2010. The insurance plan must be established under your business name. The deduction cannot be more than your net profit from your business. If you, your spouse or your child also had a job, you cannot deduct payments for medical insurance for any month when you (or your spouse or your child) were eligible for an employer's subsidized plan.

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Deduction for alimony paid (Form 1040 line 31)

If you paid alimony to a former spouse, you can deduct the amount you paid. Alimony is a payment required by a divorce or separation agreement. Alimony does NOT include child support.

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Deduction for penalty on early withdrawal of savings (1040 line 30)

If you lost interest income because of you withdrew a time deposit early, you can deduct the amount you lost. The amount should be reported to you on Form 1099-INT in Box 2.

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Educator expenses deduction (1040 line 23)

If you were a eligible educator, you can deduct up to $250 of qualified expenses you paid in 2010. Qualified expenses are common and accepted materials that are necessary for the classroom.

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Other Forms and Worksheets


1040-EZ Tax Return for Single and Joint Filers With No Dependents

Form 1040-EZ is a simple tax return form for people who are filing either single or married filing joint and who have no dependents. You can only claim certain types of income (wages, taxable interest under $1500 and unemployment compensation) and certain credits (Making work pay credit and earned income credit) using 1040ez. If you have any types of income, deductions or credits that are not on the form, you should use Form 1040A or Form 1040.

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1040A US Individual Income Tax Return

Form 1040A is a tax return form for people who do not qualify to use 1040-EZ, but do not need to use 1040. Form 1040A includes many common types of income, deductions and credits. However, if you have any types of income, deductions or credits that are not on the form, you should use Form 1040.

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1040 US Individual Income Tax Return

Form 1040 is a tax return form for people who do not qualify to use the simpler forms 1040-EZ, or 1040A. Form 1040 includes types of income, deductions and credits that are not supported on Forms 1040EZ and 1040A.

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Interest and Ordinary Dividends (Schedule B)

This form is used to report interest and ordinary dividends reported on Form 1099-Div and Form 1099-INT. You must file Schedule B if your taxable interest income is more than $1,500; you received interest from a seller financed mortgage and the buyer used the property as a personal residence; or you have accrued interest from a bond.

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Self Employment Income (Schedule C)

If you are self-employed you will need to file a Schedule C with your tax return. Schedule C is used to report income and deduct expenses. If you have nonemployee income on 1099-MISC or statutory income on your W-2 (Box 13 is checked) the IRS considers you to be self-employed and you will need to file Schedule C.

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Self-Employment Tax (Schedule SE)

If you were self-employed and made more than $400 you need to file Schedule SE. This schedule determines the tax due on self employment earnings. In addition, Schedule SE is used by the Social Security Administration to determine your benefits under the social security program.

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Capital Gains and Losses (Schedule D, Schedule D Worksheets)

Most property you own and use for personal purposes, pleasure, or investment is a capital asset. This form is used to report any capital gains or losses from the sale or exchange of a capital asset. With I-CAN!® you can only enter up to 5 short term and 5 long term gains. You can deduct capital losses up to the amount of your capital gains plus $3,000 ($1,500 if married filing separately).

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Supplemental Income and Loss (Schedule E)

If you had rental real estate or royalties you will need to file a Schedule E with your tax return. This form is used to report income and deduct expenses. You can deduct all ordinary and necessary expenses, such as taxes, interest, repairs, insurance, management fees, and agents’ commissions. I-CAN!® does not allow you to deduct depreciation. Note: If you are in the business of renting equipment or vehicles, file Schedule C instead.

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Social Security and Medicare Tax on Unreported Tip Income (Form 4137)

This form is used to figure the social security and Medicare tax owed on any tips not already included in your income. You must file this form in order for your unreported tip income to be considered by the Social Security Administration to determine your benefits under the social security program. You also must file this form if your W-2 Box 8 shows allocated tips that you must report as income.

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Application for Automatic Extension of Time to File U.S. Individual Income Tax Return (Form 4868)

This form is used to apply for 6 more months to file your tax return. This form must be submitted by April 18th 2011. If you file this form, you will have until October 17, 2011 to file your return. To qualify for the extension you must estimate your 2010 tax liability using the information available to you. You do not have to provide a reason why you are asking for the extension.
Although, you are not required to make a payment of the tax you estimate as due, the form does not extend the time to pay taxes. If you do not pay the amount due by the regular due date, you will owe interest and you may also be charged penalties.

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Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts (Form 5329)

This form is used to report additional taxes on IRAs, other qualified retirement plans, or HSAs. The additional taxes can be due to excess contributions or early distributions.

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Alternative Minimum Tax - Individuals (Form 6251, Alternative Minimum Tax Worksheet for 1040A)

The AMT applies to taxpayers who have certain types of income that receive favorable treatment, or who qualify for certain deductions, under the tax law. These tax benefits can significantly reduce the regular tax some taxpayers with higher economic incomes. The AMT sets a limit on the amount these benefits can be used to reduce total tax.

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Parents' Election to Report Child's Interest and Dividends (For a child under 14 who gets Alaska Permanent Fund Dividends only) (Form 8814)

I-CAN!® uses Form 8814 for parents of a child under age 14 who receives the Alaska Permanent Fund Dividend. The child's interest income must be reported.

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Direct Deposit into Multiple Accounts (Form 8888)

This form is used if you want all or part of your refund to be directly deposited. With this form you can directly deposit your refund in one or more account at a bank or another financial institution or you can buy up to $5000 in paper US Series I Savings Bonds. For any part of your refund not deposited directly in your accounts or not used to purchase series I saving bonds you can elect to have it sent to you as a check.

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Payment voucher (Form 1040-V)

If you e-file and you choose not to set up an electronic funds withdrawal, you can mail this form to the IRS with the amount of tax you owe.

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Pensions and Annuities Simplified Method Worksheet

This worksheet is used to figure the amount of your pension or annuity payments that are taxable. I-CAN!® will generate the Simplified Worksheet if the 1099-R is for a Pension or Annuity and the taxable amount is unknown.

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Social Security Benefits Worksheet

This worksheet is used to figure the amount of your social security or railroad retirement benefits that is taxable. I-CAN!® will generate the worksheet if you enter an amount from a SSA-1099 or an RRB-1099.

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California

Credits

  • Child and dependent care credit (Form 3506)
  • Renter's credit (Form 540 line 46)
  • Excess SDI withheld (Form 540 line 74)

Deductions

  • Interest on U.S. obligations and CA municipal bonds subtraction (Schedule CA line 8)
  • State income tax refund subtraction (Schedule CA line 10)
  • Subtraction because of law differences to federal business income or loss (Schedule CA line 12)
  • Unemployment compensation and paid family leave benefits subtraction (Schedule CA line 19)
  • Social security benefits subtraction (Schedule CA line 20)
  • California lottery winnings subtraction (Schedule CA line 21a)
  • HSA distributions not used for qualfied medical expenses subtraction (Schedule CA line 21f)
  • State adjustment to federal itemized deductions (Schedule CA Part II)
  • Standard deduction worksheet for dependents

Other Forms and Worksheets

  • California Individual Income Tax Return (Form 540)
  • Schedule W-2
  • California Adjustments (Schedule CA)
  • Additional Taxes on Qualified Plans (Form 3805)
  • Alternative Minimum Tax and Credit Limitations (Form 540p)
  • California e-file Payment Record for Individuals (Form 8455)
  • AGI Limitations worksheet

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Michigan

Credits

  • College tuition and fees credit (Schedule CT)
  • Home heating credit (MI-1040CR)
  • Homestead property tax credit (MI-1040CR)
  • Homestead property tax credit for veterans and blind people (MI-1040CR-2)
  • Michigan earned income tax credit (MI-1040 line 28b)
  • Energy Efficient Qualified Home Improvement Credit (MI-4764)
  • Income tax paid to Michigan cities (Schedule 2 line 1)
  • Public contributions credit (Schedule 2 line 2)
  • Community foundation credit (Schedule 2 line 3)
  • Homeless shelter/food bank credit (Schedule 2 line 4)
  • Vehicle donation credit (Schedule 2 line 8)

Deductions

  • Interest on U.S. obligations and MI municipal bonds subtraction (Schedule 1 line 8)
  • Retirement or pension benefits subtraction (Schedule 1 line 12)
  • Dividend/interest/capital gains subtraction for seniors (Schedule 1 line 13)
  • Social security benefits subtraction (Schedule 1 line 14)
  • Michigan state and local income tax refunds subtraction (Schedule 1 line 16)
  • Michigan education savings program subtraction (Schedule 1 line 17)
  • Credit for elderly or disabled subtraction (Schedule 1 line 20)
  • Michigan gas and oil royalty interest or working interest (Schedule 1 line 20)

Other Forms and Worksheets

  • Michigan Individual Income Tax Return (MI-1040)
  • Schedule W
  • Michigan Additions and Subtractions (Schedule 1)
  • Nonrefundable Credits (Schedule 2)
  • Michigan Voluntary Contributions Schedule (MI-4642)
  • Payment voucher (MI-1040V)
  • Use Tax Worksheet

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Montana

Credits

  • Elderly Care Credit (Form ECC, Schedule V)
  • Elderly Homeowner/Renter Credit (Form 2EC, Schedule V)
  • 2% Capital gains tax credit (Form 2 line 47)

Deductions

  • Standard deduction (Worksheet V)
  • Itemized deductions (Schedule III)
  • Child and Dependent Care Expense Deduction (Form 2441-M)
  • Qualified mortgage insurance premiums deduction (Worksheet VI)
  • Exempt interest and mutual fund dividends from federal bonds notes and obligations (Schedule II line 1)
  • Exempt Unemployment compensation (Schedule II line 3)
  • Montana state income tax refunds (Schedule II line 6)
  • Partial pension and annuity income exemption (Worksheet IV, Schedule II line 11)
  • Partial interest exemption for taxpayers 65 and older (Schedule II line 12)
  • Partial retirement disability income exemption for taxpayers under age 65 (Form DS-1, Schedule II line 13)
  • Tips and gratuities exemption (Schedule II line 14)
  • Montana family education savings account exemption (Schedule II line 20)
  • Social security exemption/Tier 1 Railroad Retirement subtraction (Worksheet VIII, Schedule II line 22)
  • Tier II Railroad benefits subtraction (Schedule II line 23)

Other Forms and Worksheets

  • Montana Individual Income Tax Return (Form 2)
  • Montana Additions to Federal Adjusted Gross Income (Schedule I)
  • Tax Benefit Rule for Federal Income Tax Refund (Worksheet II)

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New York (I-CAN!® does not e-file New York forms)

Credits

  • Child and dependent care credit (IT-216)
  • College tuition credit (IT-272)
  • Empire state child credit (IT-213, IT-213-ATT)
  • New York City earned income credit (IT-215)
  • New York City earned income credit for noncustodial parent (IT-209)
  • New York City household credit (IT-201 line 48)
  • New York City school tax credit (IT-201 line 69)
  • New York State earned income credit (IT-215)
  • New York State earned income credit for noncustodial parent (IT-209)
  • New York State household credit (IT-201 line 40)
  • Real property tax credit for renters (IT-214)
  • Volunteer firefighters and ambulance worker's credit (IT-245, IT-201-ATT)

Deductions

  • Taxable refunds, credits, or offsets of state and local income taxes (IT-201 line 25)
  • Pension of NYS and local governments and the federal government (IT-201 line 26)
  • Taxable amount of social security benefits (IT-201 line 27)
  • Interest income on US government bonds (IT-201 line 28)
  • Pension and annuity income exclusion (IT-201 line 29)
  • New York's 529 college savings program deduction/earnings (IT-201 line 30)
  • Standard deduction (IT-201 line 34)
  • Itemized deductions (IT-201 line 34)

Other Forms and Worksheets

  • New York Individual Income Tax Return (IT-201)
  • Summary of Federal Form W-2 Statements (IT-2)
  • Payment Voucher (IT-201-V)

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Pennsylvania

Credits

  • Special tax forgiveness (Schedule SP)
  • Property tax or rent rebate credit (Print only forms PA-1000, PA-1000 Schedule AB, PA-1000 Schedule DEF, PA-1000 RC)

Deductions

  • Allowable Employee Business Expenses (Schedule UE)
  • Gambling costs (Schedule T line 4)
  • Health Savings Account Contributions (Schedule O line 4)

Other Forms

  • Pennsylvania Individual Income Tax Return (PA-40)
  • Interest Income/Dividend Income (Schedule AB)
  • Profit or Loss from Business or Profession (Schedule C)
  • Sale, Exchange or Disposition of Property (Schedule D)
  • Rents and Royalty (Schedule E)
  • Income from Gambling and Lottery (Schedule T)
  • Schedule W-2

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