IRS Free File program delivered by FileYourTaxes.com
System Limitations and What Tax Forms We Support
Q : What are the system capabilities and limitations?
A : Electronic Filing program allows an extensive number of forms to be transmitted. However all forms may not be transmitted electronically. Further, there are limitations on the number of allowed forms that can be transmitted. If a number is not indicated, only one count of that form may be transmitted.
Current system configuration will accommodate the following forms with the known stated exceptions, if any. All of the forms may not be available at the beginning of the season. If your requirements are beyond the limitations presented here, you may not be able to use our service. The filed state forms will follow the lead of the used Federal forms and there may be additional state limitations as will be indicated on the state pages in the system. All of the the offered forms may not be available early season. The offered forms are as follows:
U S Resident Individual Income Tax Return
Forms 1040 and 1040-SR
Form 1040 Schedule 1 — Additional Income and Adjustments to Income
Form 1040 Schedule 2 — Tax
Form 1040 Schedule 3 — Non-refundable Credits
Form 1040 Schedule A — Itemized Deductions
Form 1040 Schedule B — Interest and Ordinary Dividends
Form 1040 Schedule C — Net Profit or Loss
Form 1040 Schedule D — Capital Gains and Losses
Form 1040 Schedule E — Supplemental Income and Loss
Form 1040 Schedule EIC — Earned Income Credit
Form 1040 Schedule F — Profit or Loss from Farming
Form 1040 Schedule H — Household Employment Taxes
Form 1040 Schedule LEP — Request for change in Language Preference
Form 1040 Schedule R — Credit for the Elderly or the Disabled
Form 1040 Schedule SE — Self-employment Tax
FEC — Foreign Employer Compensation for eFile
Form Payment — Form Payment for eFile
Form 982 — Reduction of Tax Attributes Due to Discharge of Indebtedness
Form 1116 — Foreign Tax Credit (Individual, Estate, or Trust)
Form 1310 — Statement of Person Claiming Refund Due a Deceased Taxpayer
Form 2106 — Employee Business Expenses
Form 2120 — Multiple Support Declaration
Form 2441 — Child and Dependent Care Expenses
Form 2555 — Foreign Earned Income
Form 3800 — General Business Credit
Form 3903 — Moving Expenses
Form 4136 — Credit for Federal Tax Paid on Fuels
Form 4137 — Social Security and Medicare tax on Tip Income
Form 4562 — Depreciation and Amortization
Form 4684 — Casualties and Thefts
Form 4797 — Sales of Business Property
Form 4868 — Application for Extension of Time to File U.S. Income Tax Return
Form 4952 — Investment Interest Expense Deduction
Form 5329 — Additional Taxes Attributable to IRAs, et. al
Form 5405 — First-Time Homebuyer Credit (Credit section not eFilable)
Form 5695 — Residential Energy Credits
Form 6251 — Alternative Minimum Tax
Form 6252 — Installment Sales
Form 8283 — Noncash Charitable Contributions
Form 8379 — Injured Spouse Allocation
Form 8396 — Mortgage Interest Credit
Form 8582 — Passive Activity Loss Limitations
Form 8606 — Nondeductible IRA, et. al.
Form 8812 — Additional Child Tax Credit
Form 8824 — Like-Kind Exchanges
Form 8829 — Expenses for Business Use of Your Home
Form 8834 — Qualified Electric Vehicle Credit
Form 8839 — Qualified Adoption Expenses
Form 8862 — Information To Claim Earned Income Credit After Disallowance
Form 8863 — Education Credits (American Opportunity, Hope and Lifetime Learning Credits)
Form 8880 — Credit for Qualified Retirement Savings Contributions
Form 8888 — Direct Deposit of Refund to More Than One Account
Form 8889 — Health Savings Accounts (HSAs)
Form 8903 — Domestic Production Activities Deduction
Form 8910 — Alternative Motor Vehicle Credit
Form 8919 — Uncollected Social Security and Medicare Tax on Wages
Form 8936 — Qualified Plug-in Electric Drive Motor Vehicle Credit
Form 8949 — Sales and Other Dispositions of Capital Assets
Form 8959 — Additional Medicare Tax
Form 8960 — Net Investment Income Tax Individuals, Estates, and Trusts
Form 8962 — Premium Tax Credit
Form 8995 — Qualified Business Income Deduction Simplified Computation
Form 8995-A — Qualified Business Income Deduction
Form 8995-A — Schedule A Specified Service Trades or Businesses
Form 8995-A Sch B — Aggregation of Business Operations
Form 8995-A Sch C — Loss Netting And Carryforward
Form 1040-X — Amended US Individual Income Tax Return, only available for taxpayers who file their original return using IRS Free File Delivered by FileYourTaxes.com
The known limitations of the system with regard to the currently accommodated forms are as follows:
FORM 1040/GENERAL
Addresses:
Foreign addresses allowed for use on the Federal Return. However, there may be separate state limitations.
Even though you may have had a domestic address during the tax year, foreign address entered here automatically disqualifies eligibility for the earned income credit (EIC). The system will qualify and calculate EIC on the basis of a U. S. (50 states, DC and APO designations) address. If you are otherwise eligible for EIC, DO NOT use this system.
United States Possessions
American Samoa (AS)
Guam (GU)
Puerto Rico (PR)
The Commonwealth of the Northern Marianna Islands (MP)
U. S. Virgin Islands (VI)
are also considered to be foreign addresses. But due to certain special postal rules, the Possession addresses must be entered in the same format as the U. S. addresses. It is VERY important that you note the following: If you need to file Form 4563 for exclusion of income for residents of American Samoa, you can not use this system. If you need to file Form 8689 for Allocation of Tax to Virgin Islands, you can not use this system. If you need to exclude any Section 933 income from sources in Puerto Rico, you cannot use this system. If your wage statements are other than the standard U. S. W-2 forms (such as 499R-2/W-2PR, W-2VI, W-2AS, etc.) you can not use this system. However, if you were issued a W-2GU and you were not a resident of Guam or Samoa for the full tax year, you may use this information return document as you would a regular W-2. See the information for W-2GU below.
Please note that APO and FPO addresses are not considered foreign addresses.
Alimony:
If you paid alimony to more than one person, you cannot use this system
Deductions:
If you are filing as “not a full year resident” return, you can not use this system.
Differences between the Federal and state amounts:
Differences between the Federal and state amounts required for state reporting will normally not be calculated automatically. You will need to accumulate and provide these amounts separately in the state information input section, if and as may be applicable.
Estimated Taxes:
The system will not calculate estimated taxes. However, you may download estimated tax forms free of charge through our website site.
If you made estimated payments with a previous spouse, or made payments under a different name, you cannot use this system.
The system will not calculate under withholding penalties (Form 2210). Therefore, if such obligations exist, the eventual total tax liability may be different than what is calculated through the system.
Filing Status:
If filing status is “Married Filing Separately”, return may not be filed electronically in the “Community Property States”. These states are:
AZ CA ID LA NM NV TX WA WI
If you, and/or your spouse, if married filing jointly, were a part year resident, and you must file as such, you can not use this system.
Foreign addresses:
Foreign addresses are accommodated. However, as stated above, the following should be noted:
If you need to file Form 4563 for exclusion of income for residents of American Samoa, you cannot use this system.
If you need to file Form 8689 for Allocation of Tax Virgin Islands, you cannot use this system. If you need to exclude any Section 933 income from sources in Puerto Rico, you can not use this system.
If your wage statements are other than the standard U. S. W-2, and W-GU forms as will be discussed below, (such as 499R-2/W-2PR, W-2 VI, W-2AS, etc.) you can not use this system.
There may be dis allowance of foreign addresses on state returns.
IRA deductions:
If your combined earned income for the tax year is less than $10,000 on a joint return ($1, 000 additional for each spouse, if over the age 49), you can not use this system.
Salary deferrals:
If you have excess salary deferrals, you cannot use this system
Social Security Recipients:
If your filing status is Married Filing Separately, and you lived with your spouse any time during the tax year, you may not be able to exclude any of your benefits. If were covered by retirement plan at work or through self-employment, or repaid benefits in the tax year, or need to file Forms 4563, 8815 or excluding employer-provided adoption benefits, or income from sources within Puerto Rico, you can not use this system.
SCHEDULES
Schedule A:
If you are reporting the names, addresses and social security numbers of more than one person (individual, NOT financial institutions) to whom you paid home mortgage interest, you can not use this system. You can report the information for only one such person
If you are not required to file Form 2106, and use Schedule A to report such expenses, you can not provide additional employee business expenses for the same person on Form 2106.
All contributions are presumed to be contributions limited to 50% of AGI and all the recipients are those also qualify (such as churches, synagogues, mosques, temples, and others as defined under the heading of “50% Limit Organizations” in IRS Publication 526 — Charitable Contributions) for this limit. Otherwise, you cannot use the system.
Schedule B:
If you have excludable interest on series EE US savings bonds issued after 1989, or need to file Form 3520 or 926 in relation to foreign trusts, you cannot use this system. The tax-exempt interest amounts earned from US Savings Bonds and Treasury Obligations cannot be accommodated by the system if form 8815 is required
Schedule C:
This system does not support C-EZs, and will file Schedule Cs only.
If you did not materially participate in this business AND you have a loss, you cannot use this system. Likewise if all or some of the investment in this business was not at risk, you cannot use this system. If you are not at risk with any items, you cannot use this system.
If you have more than one business based on Statutory Employee earnings, or if this business has more than five such W-2 forms, you cannot use this system.
The system has a limit of 8 “Other expenses”.
If one spouse’s W-2 wages matches with any of the amounts listed as statutory employee income for the other spouse, you cannot use this system.
Schedule D:
If you have Section 1202 gains, Unrecaptured Section 1250 Gains, or items for special treatment you can not use this system.
Schedule E:
If you are not at risk with any items, you cannot use this system.
Be certain that you understand “active participation” and gains and losses pertaining to “passive activities”. All of the real estate rental activities are presumed to be with active participation even though they may be classifies as a passive activity.
You may NOT have actively participated in the activity for the tax year of this return, and yet had a passive activity loss from a prior year in which you actively participated.
If you need to develop a separate Passive Activity Loss AMT calculation, you need to provide this separately into the AMT form. The system will not calculate this (passive activity) amount for you.
If you are NOT at risk with any of the Partnership or S Corporation items, or you will be treating the items differently than stated on Schedule K-1(s) and you are required file Form 8082, you cannot use this system.
Schedule EIC:
If you are a Minister or a member of a religious order, and your W-2 form includes amounts paid to you as housing allowance, or the rental value of the parsonage, you cannot use this system to file for Earned Income Credit.
Schedule F:
If you need to file more than 2 Schedule F forms, you cannot use this system.
Please note that if all your investment in this farming activity was not at risk in the event that this activity generated a loss, or you did not materially participate in this activity, you cannot use this system.
If you cannot group them to be included in the number of fields allowed and need to enter more than 20 “Other Expenses” items, you cannot use this system.
The vehicle business use percentage will be calculated on the basis of the mileage information provided for that vehicle.
The system will not accommodate the Form 4835-Farm Rental Income and Expenses, and the Schedule J-Farm Income Averaging.
Schedule H:
If (1) you pay unemployment taxes for more than one state, or (2) you had not paid all state unemployment contributions for the tax year by April 15, of the following year , or (3) wages you paid taxable for FUTA were not taxable for your state’s unemployment tax, you cannot eFile this, or use this system.
Further, if you are not filing this form as part of your personal income tax return, you cannot use this system. This form cannot be eFiled separately.
Schedule SE:
The system will not accommodate optional farm or non-farm methods to calculate net earnings or the use of such items in the calculation of self-employment tax.
If you filed Form 4631 and received acceptance from IRS or ever filed Form 2031 you can not use this system.
If you were a U. S. citizen employed by a foreign government (or, in certain cases, by a wholly owned instrumentality of a foreign government or an international organization under the International Organizations Immunity act) for services performed in United States, Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), OR if you were a self employed U. S. citizen or a resident alien living outside of the United States, in a country that has social security agreements with the United States and you contributed to such a fund in that country, you can not use this system. Fees received as a notary public are exempt from SE tax. If your “Principal business or profession” in the Schedule C is entered as “NOTARY PUBLIC” the net income from this business (Schedule C) will not be subjected to SE Tax. For this reason, your notary business must be listed separately. If the notary business income is part of another business activity and is reported jointly with the income of this activity, you can not use this system. If you choose to include the notary fees in the Schedule C of the other activity and define the “Principal business or profession” based on that activity, the notary fees will also be subjected to SE Tax.
If you ere a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had more than $400 or more of other net earnings from self-employment, or you are an Exempt Notary or referencing Form 4029, you can not use this system.
FORMS
Form W-2:
This must be Form W-2G for the current Tax Year . For instance, if you are filing a 2012 tax return, the form must indicate on it that it is for 2012.
If your wage statements are other than the standard U. S. W-2 forms or W-2GU forms as described below (such as 499R-2/W-2PR, W-2 VI, W-2AS, etc. you can not use this system.
Payer name cannot be the same as the names on the tax return.
If you have missing or incorrect W-2s, you cannot use this system. You should first contact your employer to rectify this matter. You must have a W-2 issued by your employer. Do not use other earning statements.
If you have Dependent Care Benefits, and your filing status is Married Filing Separately, the system will not calculate your Child and Dependent Care credit. Because of this, all of your Dependent Care Benefits will be taxable income to you. Be sure to investigate if other filing statuses are applicable to you if you have qualified dependent care expenses.
The system may not accommodate payments and withholdings pertaining to two or more states.
Due to the fact that the amounts are not always reported properly, information that should be provided in boxes 12 and 14 will not be automatically used. Any pertinent sums from these boxes, and relevant amounts written-in on other parts of the W-2 forms will have to be manually provided to the system as required, on to the special input fields provide in the system.
Form W-2G:
This must be Form W-2G for the current Tax Year . For instance, if you are filing a 2012 tax return, the form must indicate on it that it is for 2012.
Payer name cannot be the same as the names on the tax return.
The year of the (Winning) Date must also be for the current tax year.
Form W-2GU:
This must be Form W-2GU for the current Tax Year . For instance, if you are filing a 2012 tax return, the form must indicate on it that it is for 2012.
Payer name cannot be the same as the names on the tax return.
The taxpayer must be a resident of the United States who had not excluded any income for Guam or Samoa for the current Tax Year . For instance, if you are filing a 2012 tax return the form must indicate on it that it is for 2012. The taxes paid to Guam will be used as credit for US income taxes withheld, and the income shown on this form will be reported, wholly as US earned income.
Form 1099-G (Your Input Form):
If you repaid unemployment amounts for a previous year benefits, and the amount was over $3,000 and you wish to take tax credit for this amount, you can not use this system. This must be for the current Tax Year . For instance, if you are filing a 2012 tax return, the form must indicate on it that it is for 2012.
Form 1099-R:
This must be Form 1099-R for the current Tax Year . For instance, if you are filing a 2012 tax return, the form must indicate on it that it is for 2012.
Payer name cannot be the same as the names on the tax return.
Box 2a & 2b
An entry must be made in the “Taxable Amount” field. If the taxable amount is not determined, you cannot use this system
If you have corrective distribution reports on your F1099-R pertaining to excess salary deferrals, or excess contributions to a retirement plan you cannot use this system.
If the distribution code below contains G or H, the taxable amount must be zero for you to use this system.
Box 7
Refer to 1099-R input page for for allowed codes.
Regardless of how many distributions you have, if you choose, or allowed more than one payment exception upon the group, you can not eFile this return, or use this system. The same limitation also applies to your spouse, independently. The system may limit your exceptions based on IRS limitations.
If a disability pension was received before the minimum retirement age defined by the employer, and the distribution code checked does not correspond to Codes 2 or 3, you can not use this system if you wish your disability pension to appear as earned income.
If there are amounts for more than for one state, or the state name is not the same as the state return filed, if any, you cannot use this system. You generally cannot file Non-Resident State returns on this system.
If your Form 1099-R includes a capital gains distribution, you should not use this system. This amount will not be used for calculation purposes and may cause the payment of a higher tax amount.
Form 1310:
Do not use this form if you are filing a joint return as the surviving spouse, or court appointed or certified representative, or if the refund will be paid based on state law. Such returns can not be eFiled at this time.
Form 2106:
If there were more than two vehicles used during the course of the year by the employee, and this use created employee business expenses, you cannot use this system.
The clean air vehicle properties may increase the limits of your depreciation. This system will not accommodate such increases. If you need to include such items, you can not use this system.
If you need to depreciate a vehicle put into service before January 1, 1996, you can not use this system.
You are allowed one Form 2106 for yourself, (and one for your spouse if you are married filing jointly). If you need more than one form per person, or need to file more than total of 2 forms, you can not use this system.
If you use Form 2106, you can not provide additional employee business expenses for the same person, separately on Schedule A.
Form 2120:
The beneficiary to this form must be the taxpayer (or spouse if filing Married Jointly) with the same name and SSN as listed on the return.
Form 2441:
The system is limited to a maximum listing of five care providers. If you need to list more than five care providers, you cannot use this system.
You must have valid Identification Number for your care provider(s) and “Qualifying” persons. If you do not have such a number, you cannot use this system.
If the expenses were paid for prior year care, you cannot use this system.
If your filing status is Married Filing Separately, and you wish to claim this credit, you cannot use this system. If you have Dependent Care Benefits, and your filing status is Married Filing Separately, the system will not calculate your Child and Dependent Care credit. Because of this, all of your Dependent Care Benefits will be taxable income to you. Be sure to investigate if other filing statuses are applicable to you if you have qualified dependent care expenses.
Form 2555:
If you had made a revocation relevant to foreign earned income exclusion or the housing exclusion within the last 5 (five) years, you cannot use this system.
If you maintained more than one separate foreign residence at differing cities or countries because of adverse living conditions at your tax home, you cannot use the system.
If you entered the United States or its Possessions during the tax year, you are limited to eight such entries. If the number of entries were greater than eight, you cannot use this system. The start year of bona fide residence has to be after 1950 to be able to use this system,
If the end year of bona fide residence is not the current tax year of this return or continuing, you cannot use this system.
You are not allowed to use Form 1116 (Foreign Tax credit) if you are using this exclusion form.
Form 3903:
You are limited to one Moving expense form. If you need to file more moving expense forms, you cannot use this system.
Form 4137:If you need to list more than three employers, you cannot use this system.
Even if you disagree with your employer’s figures, and you intend to report a lesser amount than the total allocated tips reported on your W-2 forms, you cannot use this system.
Form 4562:
There is a limit of 30 depreciation forms for electronic filing purposes. If you will require more than 30 depreciation forms, you cannot use this system. Please note that you may not be required to fill-out a depreciation form in every case where a depreciation expense will be reportable.
If you have more than three entries in more than 50% qualified business use category or the other category for listed property, you can not use this system.
The system will not accommodate listed assets placed in service prior to 1987. If you are depreciating vehicles designed to run primarily on electricity, you cannot use this system.
Information on use of vehicles: The system will allow input for three vehicles in this section. If you need to input information for more than three vehicles in this section, you can not use this system.
You are limited to two property or class entries per form for the purposes of Section 179 deduction. If you need to make additional entries on a given form, you cannot use this system. You may group properties belonging to the same class.
If you need to make more than one entry for assets entered into service during the year of the tax return that are subject to GDS or ADS and that are of the same recovery period you can group them under the same class, or list them separately. Please review the future implication for your case can not use this system. Please note that you may make an election to group assets in general asset accounts.
If you need to make more than two beginning amortization entries, you can not use this system. However, you may combine amounts that are covered by the same code section.
Form 4952:
If an election is made to include, any amount of the capital gain from the disposition of property held for investment in the investment income, you cannot use this system.
Form 5329:
The form will accommodate the tax (penalty) on early distributions from regular IRA’s, SEP’s, SIMPLE’s and pension plans and the exceptions for avoiding penalty, and the standard penalty determination, only.
Form 6251:
In regards to Alternative Minimum Tax (AMT), this system will not accommodate inputs directly from Schedule K-1’s. Installment Sales related items, Foreign Tax Credit, Passive Activities, Net Operating Loss carryovers, Schedule D amounts containing unrecaptured section 1250 gain (or anticipated for AMT purposes), sale of disposition of business assets, investment interest expense election including net capital gains in investment income, and items covered under ‘at risk’ rules will not be accommodated by the system.
If you need to develop a separate Passive Activity Loss calculation AMT calculation, you need to provide this separately into the AMT form. The system will not calculate this (Passive activities) amount for you.
If the taxpayer is a person under 14 years of age by midnight of the first day of the calendar year after the tax year (January 1st), and is required to file the AMT form based on investment income, “Single” is the only allowable filing status for this person in this system.
Form 6252:
eFiling is limited to reporting of the disposition of ten occurrences. If you need to report more than three installment sales, you cannot use this system.
The system will not calculate the Form 4797 recapture amounts automatically.
The system will accommodate business property and capital assets, but will not be able to define noncapital assets. If you disposed of noncapital assets and need to report them, you cannot use this system.
Form 8606:
The form is generated by the system automatically to report the nondeductible IRA portion calculated if the contributions reported were within the legal maximum for that that year, but limited otherwise, due to income, etc.
Form 8812 & Additional Child Tax Credit:
If you have exclusion of income from Puerto Rico, you cannot use this system.
If you are a Bona Fide resident of American Samoa you cannot use this system.
If you have any uncollected Social Security or Medicare or RRTA taxes, you cannot use this system.
Form 8824:
Presumption is made that installment sales method does not apply to the reporting made on Form 8824. If it is an installment method, it should be reported on Form 6252. The system will not accommodate both submitted through this form.
The system will not calculate or verify the validity of the statutory periods association with the identification and/or the receipt of the property.
If you gave up not-like-kind property, you will need to report it in this form. However, the system will not carry this amount into other parts of the return. You will need to show this portion in the same manner as if the exchange has been a sale. Depending on the type of property, you may also need to make the appropriate entry (i. e., Schedule D listing, Form 4797 listing, etc.).
Ordinary income under recapture rules will need to be calculated by the user. The system will not calculate these amounts and will not compare them with the Form 4797 entries. However this amount will be carried to the required field on Form 4797.
Form 8829:
If you entered your home in service of your business during the tax year, or if you sold your home that was in service of your business during the tax year and/or have any amount of net gains or losses derived from the business use of your home on Schedule D or Form 4797, or if you have items resulting from casualty losses, you can not use this system. For the automatically calculated depreciation the system will not accommodate homes placed in service prior to 1987 and will use a 31.5 year life until May 12, 1993 and 39 year life thereafter in automatic depreciation calculation.
If you are using your home for more than one business and you wish to use a Form 8829 for each one of these businesses, please make the appropriate allocation of the areas for each business without overlapping. If this is not possible, you cannot use this system. You are limited to 5 such forms, each only in association with a Schedule C.
If you have more than one place of business and you wish to use the Form 8829, you cannot use this system.
Form 8863:
If you have exclusion of income from Puerto Rico, you cannot use this system.
If you are a Bona Fide resident of American Samoa you cannot use this system
Form 9465:
If the amount pertains to a year prior to 1986, you cannot use this system. Dollar limitations also apply.
There may be changes to this document during season without prior notice.
