DC District of Columbia E-File Information
There are three ways in which taxpayers can file their federal and DC returns together electronically:
1. 1. Through a tax practitioner who is an authorized e-file provider; or
2. 2. Through a commercial online filing service, which allows taxpayers to transmit their DC and Federal returns electronically from their PC for a fee; or
3. 3. .Free electronic filing via DCFreeFile at:http://otr.cfo.dc.gov/page/individual-income-tax-online-filing, where taxpayers can file and pay their taxes online and check the status of their refund.
Tax centers must retain form DC-8453 for a period of three years.
Who must file a DC Income tax return?
You were a resident of the District of Columbia and you were required to file a federal tax return. Your permanent residence was in the District of Columbia for either part
of or the full taxable year. You lived in the District of Columbia for 183 days or more during the taxable year, even if your permanent residence was outside the District of Columbia. You are the spouse of an exempt military person or of any other exempt person such as a nonresident presidential appointee or an elected official.
Who is a DC Tax Resident?
A DC taxpayer domiciled in DC during the tax year, is a full-time DC resident unless he or she changes domicile during the tax year. In such case, he or she will be a part- year resident for the period not domiciled in DC. A DC taxpayer present in DC for 183 days or more and not domiciled in DC during the tax year, is a part-time resident for the period present in DC.
What are DC Income Tax Forms?
File the D-40 or D-40EZ.
District of Columbia (DC) Individual Income Tax Forms and Instructions
D-40EZ Single and Joint Filers with No Dependents
D-40 All other Individual Income Tax Filers
Go to: http://otr.cfo.dc.gov/page/2014-individual-income-tax-forms
What are DC Income Tax Deductions and DC Income Exclusions?
The DC standard deduction is determined by your filing status as shown below. However, if you itemize deductions on the federal form Schedule A, you are not entitled to the standard deduction:
Filing Status / Standard Deduction:
A – Single $4,150
B – Head of Household $4,150
C – Married filing jointly $4,150
D – Married filing separately or registered domestic partners filing separately $2,075 E – Married filing separately on the same return $4,150
F – Registered domestic partners filling jointly $4,150
G – Registered domestic partners filling separately on the same return $4,100
H – Dependent claimed by someone else $4,150
DC and federal government pension and annuity limited exclusion: You must be 62 years of age or older as of December 31, 2014 to claim this exclusion. Enter the lesser of $3,000 or the taxable income you received from military retired pay, pension income or annuity income from the DC or federal government during the year. Attach a copy of your federal Form 1099R. The maximum annual exclusion is $3,000 per person. The remaining amount of the pension/annuity is taxable and must be reported on your return.
What are DC Capital Gains and Losses?
Maximum allowable capital loss is $3,000 ($1,500 if filing separately). Capital gains are taxed as ordinary income however upon disposing of an asset not fully depreciated compute the capital gain/loss reported on your federal return for the year of disposition excluding any bonus depreciation.
What is the DC Income Tax Filing Deadline?
April 18, 2016.
The District of Columbia does not have a specific extension for military overseas or military on deployment in support of contingency operations. All taxpayers for the District of Columbia can request an extension of time to file their taxes. Those rules are:
An extension of time to file of six months may be granted if a valid extension of time to file is requested. In order to be valid, a FR-127 Extension of Time to File form must be filed by April 18, 2016 and must be submitted using the following appropriate form:
1. If you expect to have a balance due when you file the Form FR-127, you must pay the estimated balance due.
2. If you do not expect to have a balance due when you file your D-40, you would not be required to file a Form FR-127, if you have:
A. Reasonably estimated your D-40 tax liability and paid the estimated amount of DC income taxes through withholding or estimated tax payments; and
B. Filed a request to extend the time to file your federal individual income tax return with the Internal Revenue Service (IRS). The timely filed federal extension to file form will satisfy the requirement for filing a Form FR-127with DC.
If you do not expect to have a balance due and you have not filed an extension of time to file for your federal individual income tax return and wish to request an extension for your DC income tax return, you should submit a Form FR-127. Penalty and interest charges are imposed on any tax found owing and not paid on time with the extension request.
DC Low Income Credit and DC Earned Income Credit
There are two credits offered to DC taxpayers: (1) DC Low Income Credit (LIC) and
(2) DC Earned Income Credit (EITC). The LIC is a non-refundable credit, which means it can reduce the DC tax you owe, but it will not directly result in a tax refund. The EITC is a refundable credit. If the IRS is calculating your federal EITC, wait until they notify you of that amount before you determine your DC EITC. If you take the federal income earned credit, it may be better for you to take the DC Earned Income Credit instead of the DC Low Income Credit. You cannot take both DC credits.
DC Low Income Credit (LIC) – To qualify for this credit:
• You cannot have computed your federal AGI using the Alternative Minimum Tax (AMT) calculation;
• The amount of DC taxable income on Line 21 of your D-40 or Line 5 of the D-40EZ is more than zero; and
• Your DC AGI (D-40, Line 3 and D-40EZ, Line 15) is greater than the sum of DC personal exemptions and DC standard deduction and is less than or equal to the sum of your federal personal exemptions and your federal standard deduction.
DC Earned Income Credit –
If your filing status is “Married or registered domestic partner filing separately” or “Dependent claimed by someone else”, you cannot claim the DC EITC.
Taxpayers who claim the federal EITC may also claim a DC EITC of 40% of the federal credit. Taxpayers who claim the DC LIC credit may not claim the EITC. You may take only one of these DC credits. Complete the calculation on the back of the D-40EZ or Calculation L on page 23 of the D-40. If you are not entitled to claim a federal EITC, you cannot claim a DC EITC other than the exception below.
DC Law also allows the same 40% of federal EITC to those who are not allowed to claim the EITC at the federal level but who meet other DC requirements, such as a non-custodial parent who is a District resident between the ages of 18 and 30, and paying child support under a court order for a minor child. The taxpayer must have paid the child support of at least the amount due for the year through a government sponsored support collection unit and the order must have been in effect for a least one-half of the year. You must fi le a D-40 form to use this exception. Complete Schedule N, DC Non-Custodial Parent EITC Claim, and attach to the D-40. Also enter the amount to be claimed on the Schedule U, Part 1B, Line 1.
Please enter the number of qualified EITC dependents on Line 13a of the D-40EZ, or Line 28a of the D-40.
Other DC Income Tax Credits
There are two non-refundable credits for alternative fuel vehicle conversion and infrastructure. A credit up to 50 percent of the costs for purchase and installation of qualified alternative fuel storage and dispensing or charging equipment per qualified alternative fuel vehicle refueling property or private residence. The credit shall not exceed $1,000 per vehicle charging station for a private residence and $10,000 per qualified alternative fuel vehicle refueling property or vehicle charging station. The cost of the purchase of the land on which the refueling or charging will be located or the construction or purchase of any structure is not included in the equipment or labor costs. The unused credit can be carried over for two future years.
A credit, not to exceed $19,000 per vehicle, up to the tax liability, for 50 percent of the cost of equipment and labor per vehicle for vehicle owners who modify their existing petroleum derived gasoline or diesel fuel vehicle into a vehicle capable of operating on one of a list of the listed acceptable operating fuels:
a. At least 85 percent Ethanol,
b. Natural gas,
c. Compressed natural gas,
d. Liquified natural gas,
e. Liquefied petroleum gas,
f. Biodiesel (excluding kerosene),
g. Electricity from a vehicle charging station, or
If claiming one of these credits, complete the residential form, Alternative Fuel Vehicle Conversion and Infrastructure Credits available online only.
DC District of Columbia Income Tax Contact
Office of Tax & Revenue
Office of the Chief Financial Officer
1101 4th Street, SW, Suite W270 Washington, DC 20024
Website: Office of Tax & Revenue
By Phone (Agency Directory)
Phone: (202) 727- 4TAX (4829)
Fax: (202) 442-6890
District filing addresses:
|Payment enclosed:||No payment or refund:|
|Office of Tax and Revenue||Office of Tax and Revenue|
|PO Box 96169||PO Box 96145|
|Washington, DC 20090-6169||Washington, DC 20090-6145|