|
Finding tax forms for 2004 is easy. Just point your browser to the Internal Revenue Service website, www.irs.gove and you'll find not only the forms but everything else you need to file your 2004 return now if you never got around to it during 2005.
As it happens, the 2003 tax year, which is what you're reporting on with the 2004 forms, didn't have a lot of significant changes for most people but did for members of the military and their families.
According to the IRS, "the Military Family Tax Relief Act of 2003 allows, among other things, certain benefits and gains to be excluded from income on the federal income tax return. Reporting a lower income reduces the amount of taxes owed.
"For deaths occurring after September 10, 2001, the new law doubles the benefit paid to survivors of deceased Armed Forces members from $6,000 to $12,000 and makes that entire amount tax-free. Previously, only $3,000 was tax-free and the remaining $3,000 was taxable.
"Recipients who have already paid tax on benefits received for deaths after September 10, 2001, may file an amended return on IRS Form 1040X, Amended U.S. Individual Income Tax Return. On the return, they should reduce their adjusted gross income by the $3,000 they had previously reported as taxable on a federal income tax return and put the words "Military Family Tax Relief Act" in red at the top of the amended return to speed processing. Those who receive death benefits in 2003 and future years will not have to report them on their tax returns.
"For homes sold after May 6, 1997, a taxpayer on qualified official extended duty in the U.S. Armed, Uniformed or Foreign Services may suspend, for up to 10 years of such duty time, the running of the 5-year ownership-and-use period before the sale of a residence. This applies when the duty station is at least 50 miles from the residence -- or while the person is residing under orders in government housing -- for a period of more than 90 days or for an indefinite period. This election, which is an option for the taxpayer, applies to only one property at a time."
All in all, it seems like 2003 wasn't a bad year to be in the service. |
Borrow No More Than 30% of Your Available Credit
Minority Interest 