Federal I-CAN!® E-File Info

I-CAN!® E-File can help you get a federal credit or deduction for the following:

  • Earned Income Credit
  • Standard Deduction or Itemized Deduction
  • Exemption for Dependents, Seniors and the Blind
  • Credit for the Elderly and the Disabled
  • Child Tax Credit, Additional Child Tax Credit
  • Credit for Child and Dependent Care Expenses
  • Deduction on Alimony Paid
  • Self-Employment Tax and Business Expenses Deductions (for those who receive statutory income, nonemployee income or other business income)
  • Traditional IRA Deduction
  • Credit for Qualified Retirement Savings Contributions (Saver's Credit)
  • Credit for Educational Expenses (Hope and Lifetime Learning Credits)
  • Deduction for Student Loan Interest Paid
  • Deduction on penalty on early withdrawal of savings

Limitations

Because of the scope of I-CAN!  E-File, you should NOT use it if:

  • You do NOT have Social Security Numbers (SSN) or Individual Taxpayer Identification Numbers (ITIN) that allow you to work in the U.S.
  • You have lived and/or worked in more than one state during the year (if you are filing your state return)
  • Your home address or your employer's address is in another country (including Mexico and Canada)
  • You (or your spouse if filing together) own a business
  • You (or your spouse if filing together) individually have more than one source of statutory income (W-2 Box 13) or nonemployee income (1099-MISC Box 7)
  • You (or your spouse if filing together) are in the military
  • You are in a registered domestic partnership and you want to file in California
  • You have an agreement to split credits, deductions or exemptions for your dependents with someone else
  • You are disabled and you think you may be eligible to claim a deduction for care provided to you so your spouse could work (or vice versa)
  • You received non-gaming tribal revenue
  • You are a church employee or clergy member
  • You received dependent care benefits
  • You have a long-term care insurance contract
  • You have a SEP (Simplified Employee Pension) or SIMPLE (Savings Incentive Match Plan for Employees of Small Employers)

Income Limitations

Because of the scope of I-CAN!® E-File, you should NOT use it if you have income from any of the following this year:

  • Capital gains or loss
  • Farm income, Rental income, Barter income
  • Bonds, Treasury bills
  • A child's interest or dividends (unless it is the Alaska Permanent Fund Dividend and the child is under age 14 at the end of 2009)
  • IRA lump sum or rolling distributions
  • You (or your spouse if filing together) received one or more 1099-R's with a distribution code OTHER THAN 1, 1&8, 2, 2&8, 3, 4, 4&G, 7, 8 or G
On a 1099-R (Pension, Annuity or IRA) if the distribution code is 1, 1&8, 2 or 2&8, I-CAN!® E-File will calculate an additional tax (10 % penalty on the taxable amount) on the early withdrawal that will appear on line 60 of Form 1040.

Note to Montana filers: If you itemized your deductions and claimed your federal taxes as a deduction in 2007 or an earlier year and received a federal refund in 2009, you do not qualify to use I-CAN!® E-File.

Nontaxable Income

The following types of income are nontaxable. You do not have to report any of them on your tax return. However, I-CAN!® E-File may ask you question about your nontaxable income to calculate state tax credits you may be eligible for.

Nontaxable Income

  • Child Support
  • Foster parent or grandparent payments
  • Interest on insurance policies
  • Law suit settlements for accidents
  • Medicare or Medical reimbursements for medical expenses
  • Rollovers of pensions
  • Social Security SSI and SSP
  • TANF (Food stamps and welfare)
  • Welfare payments

Tax forms users need to have

I-CAN!® E-File will need you to answer every applicable question about your taxable income before you can e-file. You will need these forms (if they apply to you) for you, your spouse if filing together and your dependents:

  • A W-2 from EVERY EMPLOYER you (or your spouse if filing together) had in 2009
  • 1099-MISC for nonemployee compensation and other income
  • 1099-R for pensions, annuities and IRAs
  • 1099-INT for interest income
  • 1099-DIV for dividend income
  • 1099-G for unemployment income, state and local income tax refunds, taxable grants and ATAA payments
  • 1099-C for cancelled debt
  • Forms SSA-1099 for Social Security Assistance and Forms RRB-1099 for Railroad Benefits
  • 1098-T for educational expenses
  • 1098-E for interest paid on a student loan
  • 1098 for interest paid on a mortgage
  • W-2G for certain gambling winnings
If you are going to itemize your deductions there may be additional forms.

Information users need to know

You will also need the following information (if they apply to you) for you, your spouse if filing together and your dependents:

  1. Social Security Number or Individual Taxpayer Identification Number (If you are married filing separately, you will still need your spouse's SSN or ITIN)
  2. E-File PIN numbers or AGI amounts from last year's federal (and state, if applicable) tax return
  3. Checking or Savings account information if you want to Direct Deposit your refund or set up an Electronic Funds Withdrawal of tax due
  4. Date of Birth
  5. College or vocational school enrollment (length, course load, whether education credits were claimed in previous years)
  6. Amount spent on child or dependent care, name, employee identification number, address and telephone number of the care provide
  7. Alimony received, alimony paid and the SSN of person you paid
  8. Amount of income that is not on your W-2 or 1099 (e.g. cash, checks, scholarships, household employee wages under $1400, interest on savings accounts, jury pay and hobby income)
  9. Advance tax payments for 2009
You may need additional information if you are filing a state return using I-CAN!® E-File.

Statutory or Nonemployee income

If you (or your spouse if filing together) received statuory income (W-2 Box 13) or nonemployee income (1099-MISC Box 7), you will answer additional questions. Because of the way you were paid, the IRS views you as a business entity rather than a person. We will ask questions about your business. Answer the questions about the work you did for which you received the nonemployee or statutory income.

You will need this information:

  1. Business name (if there is one)
  2. Business address (if not home address)
  3. Business type
  4. Any business overnight travel expenses (transportation and lodging)
  5. Any business car expenses: (one of the following)
    1. When you started using the vehicle for business and the miles you drove this year for business, commuting and other
    2. Your lease payments and vehicle expenses
If you (or your spouse, if filing together) own a business, you can deduct for one car or truck and overnight travel expenses.