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1040ez Form Booklet

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1040ez Form Booklet

1040ez form booklet Publication 1212 - Main Content Table of Contents Definitions Debt Instruments on the OID List Debt Instruments Not on the OID List Information for Brokers and Other MiddlemenShort-Term Obligations Redeemed at Maturity Long-Term Debt Instruments Certificates of Deposit Bearer Bonds and Coupons Backup Withholding Information for Owners of OID Debt InstrumentsExceptions. 1040ez form booklet Adjustment for premium. 1040ez form booklet Adjustment for acquisition premium. 1040ez form booklet Adjustment for market discount. 1040ez form booklet Form 1099-OID How To Report OID Figuring OID on Long-Term Debt Instruments Figuring OID on Stripped Bonds and Coupons How To Get Tax HelpLow Income Taxpayer Clinics Definitions The following terms are used throughout this publication. 1040ez form booklet “Original issue discount” is defined first. 1040ez form booklet The other terms are listed alphabetically. 1040ez form booklet Original issue discount (OID). 1040ez form booklet   OID is a form of interest. 1040ez form booklet It is the excess of a debt instrument's stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). 1040ez form booklet Zero coupon bonds and debt instruments that pay no stated interest until maturity are examples of debt instruments that have OID. 1040ez form booklet Accrual period. 1040ez form booklet   An accrual period is an interval of time used to measure OID. 1040ez form booklet The length of an accrual period can be 6 months, a year, or some other period, depending on when the debt instrument was issued. 1040ez form booklet Acquisition premium. 1040ez form booklet   Acquisition premium is the excess of a debt instrument's adjusted basis immediately after purchase, including purchase at original issue, over the debt instrument's adjusted issue price at that time. 1040ez form booklet A debt instrument does not have acquisition premium, however, if the debt instrument was purchased at a premium. 1040ez form booklet See Premium, later. 1040ez form booklet Adjusted issue price. 1040ez form booklet   The adjusted issue price of a debt instrument at the beginning of an accrual period is used to figure the OID allocable to that period. 1040ez form booklet In general, the adjusted issue price at the beginning of the debt instrument's first accrual period is its issue price. 1040ez form booklet The adjusted issue price at the beginning of any subsequent accrual period is the sum of the issue price and all the OID includible in income before that accrual period minus any payment previously made on the debt instrument, other than a payment of qualified stated interest. 1040ez form booklet Debt instrument. 1040ez form booklet   The term “debt instrument” means any instrument or contractual arrangement that constitutes indebtedness under general principles of federal income tax law (including, for example, a bond, debenture, note, certificate, or other evidence of indebtedness). 1040ez form booklet It generally does not include an annuity contract. 1040ez form booklet Issue price. 1040ez form booklet   For debt instruments listed in Section I-A and Section I-B, the issue price generally is the initial offering price to the public (excluding bond houses and brokers) at which a substantial amount of these instruments was sold. 1040ez form booklet Market discount. 1040ez form booklet   Market discount arises when a debt instrument purchased in the secondary market has decreased in value since its issue date, generally because of an increase in interest rates. 1040ez form booklet An OID debt instrument has market discount if your adjusted basis in the debt instrument immediately after you acquired it (usually its purchase price) was less than the debt instrument's issue price plus the total OID that accrued before you acquired it. 1040ez form booklet The market discount is the difference between the issue price plus accrued OID and your adjusted basis. 1040ez form booklet Premium. 1040ez form booklet   A debt instrument is purchased at a premium if its adjusted basis immediately after purchase is greater than the total of all amounts payable on the debt instrument after the purchase date, other than qualified stated interest. 1040ez form booklet The premium is the excess of the adjusted basis over the payable amounts. 1040ez form booklet See Publication 550 for information on the tax treatment of bond premium. 1040ez form booklet Qualified stated interest. 1040ez form booklet   In general, qualified stated interest is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually over the term of the debt instrument at a single fixed rate. 1040ez form booklet Stated redemption price at maturity. 1040ez form booklet   A debt instrument's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on the debt instrument other than qualified stated interest. 1040ez form booklet Yield to maturity (YTM). 1040ez form booklet   In general, the YTM is the discount rate that, when used in figuring the present value of all principal and interest payments, produces an amount equal to the issue price of the debt instrument. 1040ez form booklet The YTM is generally shown on the face of the debt instrument or in the literature you receive from your broker. 1040ez form booklet If you do not have this information, consult your broker, tax advisor, or the issuer. 1040ez form booklet Debt Instruments on the OID List The OID list on the IRS website can be used by brokers and other middlemen to prepare information returns. 1040ez form booklet If you own a listed debt instrument, you generally should not rely on the information in the OID list to determine (or compare) the OID to be reported on your tax return. 1040ez form booklet The OID amounts listed are figured without reference to the price or date at which you acquired the debt instrument. 1040ez form booklet For information about determining the OID to be reported on your tax return, see the instructions for figuring OID under Information for Owners of OID Debt Instruments, later. 1040ez form booklet The following discussions explain what information is contained in each section of the list. 1040ez form booklet Section I. 1040ez form booklet   This section contains publicly offered, long-term debt instruments. 1040ez form booklet Section I-A: Corporate Debt Instruments Issued Before 1985. 1040ez form booklet Section I-B: Corporate Debt Instruments Issued After 1984. 1040ez form booklet Section I-C: Inflation-Indexed Debt Instruments. 1040ez form booklet For each publicly offered debt instrument in Section I, the list contains the following information. 1040ez form booklet The name of the issuer. 1040ez form booklet The Committee on Uniform Security Identification Procedures (CUSIP) number. 1040ez form booklet The issue date. 1040ez form booklet The maturity date. 1040ez form booklet The issue price expressed as a percent of principal or of stated redemption price at maturity. 1040ez form booklet The annual stated or coupon interest rate. 1040ez form booklet (This rate is shown as 0. 1040ez form booklet 00 if no annual interest payments are provided. 1040ez form booklet ) The yield to maturity will be added to Section I-B for bonds issued after December 31, 2006. 1040ez form booklet The total OID accrued up to January 1 of a calendar year. 1040ez form booklet (This information is not available for every instrument. 1040ez form booklet ) For long-term debt instruments issued after July 1, 1982, the daily OID for the accrual periods falling in a calendar year and a subsequent year. 1040ez form booklet The total OID per $1,000 of principal or maturity value for a calendar year and a subsequent year. 1040ez form booklet Section II. 1040ez form booklet   This section contains stripped coupons and principal components of U. 1040ez form booklet S. 1040ez form booklet Treasury and Government-Sponsored Enterprise debt instruments. 1040ez form booklet These stripped components are available through the Department of the Treasury's Separate Trading of Registered Interest and Principal of Securities (STRIPS) program and government-sponsored enterprises such as the Resolution Funding Corporation. 1040ez form booklet This section also includes debt instruments backed by U. 1040ez form booklet S. 1040ez form booklet Treasury securities that represent ownership interests in those securities. 1040ez form booklet   The obligations listed in Section II are arranged by maturity date. 1040ez form booklet The amounts listed are the total OID for a calendar year per $1,000 of redemption price. 1040ez form booklet Section III. 1040ez form booklet   This section contains short-term discount obligations. 1040ez form booklet Section III-A: Short-Term U. 1040ez form booklet S. 1040ez form booklet Treasury Bills. 1040ez form booklet Section III-B: Federal Home Loan Banks. 1040ez form booklet Section III-C: Federal National Mortgage Association. 1040ez form booklet Section III-D: Federal Farm Credit Banks. 1040ez form booklet Section III-E: Federal Home Loan Mortgage Corporation. 1040ez form booklet Section III-F: Federal Agricultural Mortgage Corporation. 1040ez form booklet    Information that supplements Section III-A is available on the Internet at http://www. 1040ez form booklet treasurydirect. 1040ez form booklet gov/tdhome. 1040ez form booklet htm. 1040ez form booklet   The short-term obligations listed in this section are arranged by maturity date. 1040ez form booklet For each obligation, the list contains the CUSIP number, maturity date, issue date, issue price (expressed as a percent of principal), and discount to be reported as interest for a calendar year per $1,000 of redemption price. 1040ez form booklet Brokers and other middlemen should rely on the issue price information in Section III only if they are unable to determine the price actually paid by the owner. 1040ez form booklet Debt Instruments Not on the OID List The list of debt instruments discussed earlier does not contain the following items. 1040ez form booklet U. 1040ez form booklet S. 1040ez form booklet savings bonds. 1040ez form booklet Certificates of deposit and other face-amount certificates issued at a discount, including syndicated certificates of deposit. 1040ez form booklet Obligations issued by tax-exempt organizations. 1040ez form booklet OID debt instruments that matured or were entirely called by the issuer before the tables were posted on the IRS website. 1040ez form booklet Mortgage-backed securities and mortgage participation certificates. 1040ez form booklet Long-term OID debt instruments issued before May 28, 1969. 1040ez form booklet Short-term obligations, other than the obligations listed in Section III. 1040ez form booklet Debt instruments issued at a discount by states or their political subdivisions. 1040ez form booklet REMIC regular interests and CDOs. 1040ez form booklet Commercial paper and banker's acceptances issued at a discount. 1040ez form booklet Obligations issued at a discount by individuals. 1040ez form booklet Foreign obligations not traded in the United States and obligations not issued in the United States. 1040ez form booklet Information for Brokers and Other Middlemen The following discussions contain specific instructions for brokers and middlemen who hold or redeem a debt instrument for the owner. 1040ez form booklet In general, you must file a Form 1099 for the debt instrument if the interest or OID to be included in the owner's income for a calendar year totals $10 or more. 1040ez form booklet You also must file a Form 1099 if you were required to deduct and withhold tax, even if the interest or OID is less than $10. 1040ez form booklet See Backup Withholding, later. 1040ez form booklet If you must file a Form 1099, furnish a copy to the owner of the debt instrument by January 31 in the year it is due. 1040ez form booklet File all your Forms 1099 with the IRS, accompanied by Form 1096, by February 28 in the year it is due (March 31 if you file electronically). 1040ez form booklet Electronic payee statements. 1040ez form booklet   You can issue Form 1099-OID electronically with the consent of the recipient. 1040ez form booklet More information. 1040ez form booklet   For more information, including penalties for failure to file (or furnish) required information returns or statements, see the General Instructions for Certain Information Returns (Forms 1098, 1099, 3921, 3922, 5498, and W-2G) for the appropriate calendar year. 1040ez form booklet Short-Term Obligations Redeemed at Maturity If you redeem a short-term discount obligation for the owner at maturity, you must report the discount as interest on Form 1099-INT. 1040ez form booklet To figure the discount, use the purchase price shown on the owner's copy of the purchase confirmation receipt or similar record, or the price shown in your transaction records. 1040ez form booklet If you sell the obligation for the owner before maturity, you must file Form 1099-B to reflect the gross proceeds to the seller. 1040ez form booklet Do not report the accrued discount to the date of sale on either Form 1099-INT or Form 1099-OID. 1040ez form booklet If the owner's purchase price cannot be determined, figure the discount as if the owner had purchased the obligation at its original issue price. 1040ez form booklet A special rule is used to determine the original issue price for information reporting on U. 1040ez form booklet S. 1040ez form booklet Treasury bills (T-bills) listed in Section III-A. 1040ez form booklet Under this rule, you treat as the original issue price of the T-bill the noncompetitive (weighted average of accepted auction bids) discount price for the longest-maturity T-bill maturing on the same date as the T-bill being redeemed. 1040ez form booklet This noncompetitive discount price is the issue price (expressed as a percent of principal) shown in Section III-A. 1040ez form booklet A similar rule is used to figure the discount on short-term discount obligations issued by the organizations listed in Section III-B through Section III-F. 1040ez form booklet Example 1. 1040ez form booklet There are 13-week and 26-week T-bills maturing on the same date as the T-bill being redeemed. 1040ez form booklet The price actually paid by the owner cannot be established by owner or middleman records. 1040ez form booklet You treat as the issue price of the T-bill the noncompetitive discount price (expressed as a percent of principal) shown in Section III-A for a 26-week bill maturing on the same date as the T-bill redeemed. 1040ez form booklet The interest you report on Form 1099-INT is the OID (per $1,000 of principal) shown in Section III-A for that obligation. 1040ez form booklet Long-Term Debt Instruments If you hold a long-term OID debt instrument as a nominee for the true owner, you generally must file Form 1099-OID. 1040ez form booklet For this purpose, you can rely on Section I of the OID list to determine the following information. 1040ez form booklet Whether a debt instrument has OID. 1040ez form booklet The OID to be reported on the Form 1099-OID. 1040ez form booklet In general, you must report OID on publicly offered, long-term debt instruments listed in Section I. 1040ez form booklet You also can report OID on other long-term debt instruments. 1040ez form booklet Form 1099-OID. 1040ez form booklet   On Form 1099-OID for a calendar year show the following information. 1040ez form booklet Box 1. 1040ez form booklet The OID for the actual dates the owner held the debt instruments during a calendar year. 1040ez form booklet To determine this amount, see Figuring OID, next. 1040ez form booklet Box 2. 1040ez form booklet The qualified stated interest paid or credited during the calendar year. 1040ez form booklet Interest reported here is not reported on Form 1099-INT. 1040ez form booklet The qualified stated interest on Treasury inflation-protected securities may be reported on Form 1099-INT in box 3 instead. 1040ez form booklet Box 3. 1040ez form booklet Any interest or principal forfeited because of an early withdrawal that the owner can deduct from gross income. 1040ez form booklet Do not reduce the amounts in boxes 1 and 2 by the forfeiture. 1040ez form booklet Box 4. 1040ez form booklet Any backup withholding for this debt instrument. 1040ez form booklet Box 7. 1040ez form booklet The CUSIP number, if any. 1040ez form booklet If there is no CUSIP number, give a description of the debt instrument, including the abbreviation for the stock exchange, the abbreviation used by the stock exchange for the issuer, the coupon rate, and the year of maturity (for example, NYSE XYZ 12. 1040ez form booklet 50 2006). 1040ez form booklet If the issuer of the debt instrument is other than the payer, show the name of the issuer in this box. 1040ez form booklet Box 8. 1040ez form booklet The OID on a U. 1040ez form booklet S. 1040ez form booklet Treasury obligation for the part of the year the owner held the debt instrument. 1040ez form booklet Box 9. 1040ez form booklet Investment expenses passed on to holders of a single-class REMIC. 1040ez form booklet Boxes 10-12. 1040ez form booklet Use to report any state income tax withheld for this debt instrument. 1040ez form booklet Figuring OID. 1040ez form booklet   You can determine the OID on a long-term debt instrument by using either of the following. 1040ez form booklet Section I of the OID list. 1040ez form booklet The income tax regulations. 1040ez form booklet Using Section I. 1040ez form booklet   If the owner held the debt instrument for the entire calendar year, report the OID shown in Section I for the calendar year. 1040ez form booklet Because OID is listed for each $1,000 of stated redemption price at maturity, you must adjust the listed amount to reflect the debt instrument's actual stated redemption price at maturity. 1040ez form booklet For example, if the debt instrument's stated redemption price at maturity is $500, report one-half the listed OID. 1040ez form booklet   If the owner held the debt instrument for less than the entire calendar year, figure the OID to report as follows. 1040ez form booklet Look up the daily OID for the first accrual period in the calendar year during which the owner held the debt instrument. 1040ez form booklet Multiply the daily OID by the number of days the owner held the debt instrument during that accrual period. 1040ez form booklet Repeat steps (1) and (2) for any remaining accrual periods for the year during which the owner held the debt instrument. 1040ez form booklet Add the results in steps (2) and (3) to determine the owner's OID per $1,000 of stated redemption price at maturity. 1040ez form booklet If necessary, adjust the OID in (4) to reflect the debt instrument's stated redemption price at maturity. 1040ez form booklet Report the result on Form 1099-OID in box 1. 1040ez form booklet Using the income tax regulations. 1040ez form booklet   Instead of using Section I to figure OID, you can use the regulations under sections 1272 through 1275 of the Internal Revenue Code. 1040ez form booklet For example, under the regulations, you can use monthly accrual periods in figuring OID for a debt instrument issued after April 3, 1994, that provides for monthly payments. 1040ez form booklet (If you use Section I-B, the OID is figured using 6-month accrual periods. 1040ez form booklet )   For a general explanation of the rules for figuring OID under the regulations, see Figuring OID on Long-Term Debt Instruments under Information for Owners of OID Debt Instruments, later. 1040ez form booklet Certificates of Deposit If you hold a bank certificate of deposit (CD) as a nominee, you must determine whether the CD has OID and any OID includible in the income of the owner. 1040ez form booklet You must file an information return showing the reportable interest and OID, if any, on the CD. 1040ez form booklet These rules apply whether or not you sold the CD to the owner. 1040ez form booklet Report OID on a CD in the same way as OID on other debt instruments. 1040ez form booklet See Short-Term Obligations Redeemed at Maturity and Long-Term Debt Instruments, earlier. 1040ez form booklet Bearer Bonds and Coupons If a coupon from a bearer bond is presented to you for collection before the bond matures, you generally must report the interest on Form 1099-INT. 1040ez form booklet However, do not report the interest if either of the following apply. 1040ez form booklet You hold the bond as a nominee for the true owner. 1040ez form booklet The payee is a foreign person. 1040ez form booklet See Payments to foreign person under Backup Withholding, later. 1040ez form booklet Because you cannot assume the presenter of the coupon also owns the bond, you should not report OID on the bond on Form 1099-OID. 1040ez form booklet The coupon may have been “stripped” (separated) from the bond and separately purchased. 1040ez form booklet However, if a long-term bearer bond on the OID list is presented to you for redemption upon call or maturity, you should prepare a Form 1099-OID showing the OID for that calendar year, as well as any coupon interest payments collected at the time of redemption. 1040ez form booklet Backup Withholding If you report OID on Form 1099-OID or interest on Form 1099-INT for a calendar year, you may be required to apply backup withholding to the reportable payment at a rate of 28%. 1040ez form booklet The backup withholding is deducted at the time a cash payment is made. 1040ez form booklet See Pub. 1040ez form booklet 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), for more information. 1040ez form booklet Backup withholding generally applies in the following situations. 1040ez form booklet The payee does not give you a taxpayer identification number (TIN). 1040ez form booklet The IRS notifies you that the payee gave an incorrect TIN. 1040ez form booklet The IRS notifies you that the payee is subject to backup withholding due to payee underreporting. 1040ez form booklet For debt instruments acquired after 1983: The payee does not certify, under penalties of perjury, that he or she is not subject to backup withholding under (3), or The payee does not certify, under penalties of perjury, that the TIN given is correct. 1040ez form booklet However, for short-term discount obligations (other than government obligations), bearer bonds and coupons, and U. 1040ez form booklet S. 1040ez form booklet savings bonds, backup withholding applies only if the payee does not give you a TIN or gives you an obviously incorrect number for a TIN. 1040ez form booklet Short-term obligations. 1040ez form booklet   Backup withholding applies to OID on a short-term obligation only when the OID is paid at maturity. 1040ez form booklet However, backup withholding applies to any interest payable before maturity when the interest is paid or credited. 1040ez form booklet   If the owner of a short-term obligation at maturity is not the original owner and can establish the purchase price of the obligation, the amount subject to backup withholding must be determined by treating the purchase price as the issue price. 1040ez form booklet However, you can choose to disregard that price if it would require significant manual intervention in the computer or recordkeeping system used for the obligation. 1040ez form booklet If the purchase price of a listed obligation is not established or is disregarded, you must use the issue price shown in Section III. 1040ez form booklet Long-term obligations. 1040ez form booklet   If no cash payments are made on a long-term obligation before maturity, backup withholding applies only at maturity. 1040ez form booklet The amount subject to backup withholding is the OID includible in the owner's gross income for the calendar year when the obligation matures. 1040ez form booklet The amount to be withheld is limited to the cash paid. 1040ez form booklet Registered long-term obligations with cash payments. 1040ez form booklet   If a registered long-term obligation has cash payments before maturity, backup withholding applies when a cash payment is made. 1040ez form booklet The amount subject to backup withholding is the total of the qualified stated interest (defined earlier under Definitions) and OID includible in the owner's gross income for the calendar year when the payment is made. 1040ez form booklet If more than one cash payment is made during the year, the OID subject to withholding for the year must be allocated among the expected cash payments in the ratio that each bears to the total of the expected cash payments. 1040ez form booklet For any payment, the required withholding is limited to the cash paid. 1040ez form booklet Payee not the original owner. 1040ez form booklet   If the payee is not the original owner of the obligation, the OID subject to backup withholding is the OID includible in the gross income of all owners during the calendar year (without regard to any amount paid by the new owner at the time of transfer). 1040ez form booklet The amount subject to backup withholding at maturity of a listed obligation must be determined using the issue price shown in Section I. 1040ez form booklet Bearer long-term obligations with cash payments. 1040ez form booklet   If a bearer long-term obligation has cash payments before maturity, backup withholding applies when the cash payments are made. 1040ez form booklet For payments before maturity, the amount subject to withholding is the qualified stated interest (defined earlier under Definitions) includible in the owner's gross income for the calendar year. 1040ez form booklet For a payment at maturity, the amount subject to withholding is only the total of any qualified stated interest paid at maturity and the OID includible in the owner's gross income for the calendar year when the obligation matures. 1040ez form booklet The required withholding at maturity is limited to the cash paid. 1040ez form booklet Sales and redemptions. 1040ez form booklet   If you report the gross proceeds from a sale, exchange, or redemption of a debt instrument on Form 1099-B for a calendar year, you may be required to withhold 28% of the amount reported. 1040ez form booklet Backup withholding applies in the following situations. 1040ez form booklet The payee does not give you a TIN. 1040ez form booklet The IRS notifies you that the payee gave an incorrect TIN. 1040ez form booklet For debt instruments held in an account opened after 1983, the payee does not certify, under penalties of perjury, that the TIN given is correct. 1040ez form booklet Payments outside the United States to U. 1040ez form booklet S. 1040ez form booklet person. 1040ez form booklet   The requirements for backup withholding and information reporting apply to payments of OID and interest made outside the United States to a U. 1040ez form booklet S. 1040ez form booklet person, a controlled foreign corporation, or a foreign person at least 50% of whose income for the preceding 3-year period is effectively connected with the conduct of a U. 1040ez form booklet S. 1040ez form booklet trade or business. 1040ez form booklet Payments to foreign person. 1040ez form booklet   The following discussions explain the rules for backup withholding and information reporting on payments to foreign persons. 1040ez form booklet U. 1040ez form booklet S. 1040ez form booklet -source amount. 1040ez form booklet   Backup withholding and information reporting are not required for payments of U. 1040ez form booklet S. 1040ez form booklet -source OID, interest, or proceeds from a sale or redemption of an OID instrument if the payee has given you proof (generally the appropriate Form W-8 or an acceptable substitute) that the payee is a foreign person. 1040ez form booklet A U. 1040ez form booklet S. 1040ez form booklet resident is not a foreign person. 1040ez form booklet For proof of the payee's foreign status, you can rely on the appropriate Form W-8 or on documentary evidence for payments made outside the United States to an offshore account or, in case of broker proceeds, a sale effected outside the United States. 1040ez form booklet Receipt of the appropriate Form W-8 does not relieve you from information reporting and backup withholding if you actually know the payee is a U. 1040ez form booklet S. 1040ez form booklet person. 1040ez form booklet   For information about the 28% withholding tax that may apply to payments of U. 1040ez form booklet S. 1040ez form booklet -source OID or interest to foreign persons, see Publication 515. 1040ez form booklet Foreign-source amount. 1040ez form booklet   Backup withholding and information reporting are not required for payments of foreign-source OID and interest made outside the United States. 1040ez form booklet However, if the payments are made inside the United States, the requirements for backup withholding and information reporting will apply unless the payee has given you the appropriate Form W-8 or acceptable substitute as proof that the payee is a foreign person. 1040ez form booklet More information. 1040ez form booklet   For more information about backup withholding and information reporting on foreign-source amounts or payments to foreign persons, see Regulations section 1. 1040ez form booklet 6049-5. 1040ez form booklet Information for Owners of OID Debt Instruments This section is for persons who prepare their own tax returns. 1040ez form booklet It discusses the income tax rules for figuring and reporting OID on long-term debt instruments. 1040ez form booklet It also includes a similar discussion for stripped bonds and coupons, such as zero coupon bonds available through the Department of the Treasury's STRIPS program and government-sponsored enterprises such as the Resolution Funding Corporation. 1040ez form booklet However, the information provided does not cover every situation. 1040ez form booklet More information can be found in the regulations under sections 1271 through 1275 of the Internal Revenue Code. 1040ez form booklet Including OID in income. 1040ez form booklet   Generally, you include OID in income as it accrues each year, whether or not you receive any payments from the debt instrument issuer. 1040ez form booklet Exceptions. 1040ez form booklet   The rules for including OID in income as it accrues generally do not apply to the following debt instruments. 1040ez form booklet U. 1040ez form booklet S. 1040ez form booklet savings bonds. 1040ez form booklet Tax-exempt obligations. 1040ez form booklet (However, see Tax-Exempt Bonds and Coupons, later. 1040ez form booklet ) Obligations issued by individuals before March 2, 1984. 1040ez form booklet Loans of $10,000 or less between individuals who are not in the business of lending money. 1040ez form booklet (The dollar limit includes outstanding prior loans by the lender to the borrower. 1040ez form booklet ) This exception does not apply if a principal purpose of the loan is to avoid any federal tax. 1040ez form booklet   See chapter 1 of Publication 550 for information about the rules for these and other types of discounted debt instruments, such as short-term and market discount obligations. 1040ez form booklet Publication 550 also discusses rules for holders of REMIC interests and CDOs. 1040ez form booklet De minimis rule. 1040ez form booklet   You can treat OID as zero if the total OID on a debt instrument is less than one-fourth of 1% (. 1040ez form booklet 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. 1040ez form booklet Debt instruments with de minimis OID are not listed in this publication. 1040ez form booklet There are special rules to determine the de minimis amount in the case of debt instruments that provide for more than one payment of principal. 1040ez form booklet Also, the de minimis rules generally do not apply to tax-exempt obligations. 1040ez form booklet Example 2. 1040ez form booklet You bought at issuance a 10-year debt instrument with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. 1040ez form booklet One-fourth of 1% of $1,000 (the stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. 1040ez form booklet Under the de minimis rule, you can treat the OID as zero because the $20 discount is less than $25. 1040ez form booklet Example 3. 1040ez form booklet Assume the same facts as Example 2, except the debt instrument was issued at $950. 1040ez form booklet You must report part of the $50 OID each year because it is more than $25. 1040ez form booklet Choice to report all interest as OID. 1040ez form booklet   Generally, you can choose to treat all interest on a debt instrument acquired after April 3, 1994, as OID and include it in gross income by using the constant yield method. 1040ez form booklet See Constant yield method under Debt Instruments Issued After 1984, later, for more information. 1040ez form booklet   For this choice, interest includes stated interest, acquisition discount, OID, de minimis OID, market discount, de minimis market discount, and unstated interest, as adjusted by any amortizable bond premium or acquisition premium. 1040ez form booklet For more information, see Regulations section 1. 1040ez form booklet 1272-3. 1040ez form booklet Purchase after date of original issue. 1040ez form booklet   A debt instrument you purchased after the date of original issue may have premium, acquisition premium, or market discount. 1040ez form booklet If so, the OID reported to you on Form 1099-OID may have to be adjusted. 1040ez form booklet For more information, see Showing an OID adjustment under How To Report OID, later. 1040ez form booklet The following rules generally do not apply to contingent payment debt instruments. 1040ez form booklet Adjustment for premium. 1040ez form booklet   If your debt instrument (other than an inflation-indexed debt instrument) has premium, do not report any OID as ordinary income. 1040ez form booklet Your adjustment is the total OID shown on your Form 1099-OID. 1040ez form booklet Adjustment for acquisition premium. 1040ez form booklet   If your debt instrument has acquisition premium, reduce the OID you report. 1040ez form booklet Your adjustment is the difference between the OID shown on your Form 1099-OID and the reduced OID amount figured using the rules explained later under Figuring OID on Long-Term Debt Instruments. 1040ez form booklet Adjustment for market discount. 1040ez form booklet   If your debt instrument has market discount that you choose to include in income currently, increase the OID you report. 1040ez form booklet Your adjustment is the accrued market discount for the year. 1040ez form booklet See Market Discount Bonds in chapter 1 of Publication 550 for information on how to figure accrued market discount and include it in your income currently and for other information about market discount bonds. 1040ez form booklet If you choose to use the constant yield method to figure accrued market discount, also see Figuring OID on Long-Term Debt Instruments, later. 1040ez form booklet The constant yield method of figuring accrued OID, explained in those discussions under Constant yield method, is also used to figure accrued market discount. 1040ez form booklet For more information concerning premium or market discount on an inflation-indexed debt instrument, see Regulations section 1. 1040ez form booklet 1275-7. 1040ez form booklet Sale, exchange, or redemption. 1040ez form booklet   Generally, you treat your gain or loss from the sale, exchange, or redemption of a discounted debt instrument as a capital gain or loss if you held the debt instrument as a capital asset. 1040ez form booklet If you sold the debt instrument through a broker, you should receive Form 1099-B or an equivalent statement from the broker. 1040ez form booklet Use the Form 1099-B or other statement and your brokerage statements to complete Form 8949, and Schedule D (Form 1040). 1040ez form booklet   Your gain or loss is the difference between the amount you realized on the sale, exchange, or redemption and your basis in the debt instrument. 1040ez form booklet Your basis, generally, is your cost increased by the OID you have included in income each year you held it. 1040ez form booklet In general, to determine your gain or loss on a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. 1040ez form booklet   See chapter 4 of Publication 550 for more information about the tax treatment of the sale or redemption of discounted debt instruments. 1040ez form booklet Example 4. 1040ez form booklet Larry, a calendar year taxpayer, bought a corporate debt instrument at original issue for $86,235. 1040ez form booklet 00 on November 1 of Year 1. 1040ez form booklet The 15-year debt instrument matures on October 31 of Year 16 at a stated redemption price of $100,000. 1040ez form booklet The debt instrument provides for semiannual payments of interest at 10%. 1040ez form booklet Assume the debt instrument is a capital asset in Larry's hands. 1040ez form booklet The debt instrument has $13,765. 1040ez form booklet 00 of OID ($100,000 stated redemption price at maturity minus $86,235. 1040ez form booklet 00 issue price). 1040ez form booklet Larry sold the debt instrument for $90,000 on November 1 of Year 4. 1040ez form booklet Including the OID he will report for the period he held the debt instrument in Year 4, Larry has included $4,556. 1040ez form booklet 00 of OID in income and has increased his basis by that amount to $90,791. 1040ez form booklet 00. 1040ez form booklet Larry has realized a loss of $791. 1040ez form booklet 00. 1040ez form booklet All of Larry's loss is capital loss. 1040ez form booklet Form 1099-OID The issuer of the debt instrument (or your broker, if you purchased or held the debt instrument through a broker) should give you a copy of Form 1099-OID or a similar statement if the accrued OID for the calendar year is $10 or more and the term of the debt instrument is more than 1 year. 1040ez form booklet Form 1099-OID shows all OID income in box 1 except OID on a U. 1040ez form booklet S. 1040ez form booklet Treasury obligation, which is shown in box 8. 1040ez form booklet It also shows, in box 2, any qualified stated interest you must include in income. 1040ez form booklet (However, any qualified stated interest on Treasury inflation-protected securities can be reported on Form 1099-INT in box 3. 1040ez form booklet ) A copy of Form 1099-OID will be sent to the IRS. 1040ez form booklet Do not attach your copy to your tax return. 1040ez form booklet Keep it for your records. 1040ez form booklet If you are required to file a tax return and you receive Form 1099-OID showing taxable amounts, you must report these amounts on your return. 1040ez form booklet A 20% accuracy-related penalty may be charged for underpayment of tax due to either negligence or disregard of rules and regulations or substantial understatement of tax. 1040ez form booklet Form 1099-OID not received. 1040ez form booklet   If you held an OID debt instrument for a calendar year but did not receive a Form 1099-OID, refer to the discussions under Figuring OID on Long-Term Debt Instruments, later, for information on the OID you must report. 1040ez form booklet Refiguring OID. 1040ez form booklet   You must refigure the OID shown on Form 1099-OID, in box 1 or box 8, to determine the proper amount to include in income if one of the following applies. 1040ez form booklet You bought the debt instrument at a premium or at an acquisition premium. 1040ez form booklet The debt instrument is a stripped bond or coupon (including zero coupon bonds backed by U. 1040ez form booklet S. 1040ez form booklet Treasury securities). 1040ez form booklet The debt instrument is a contingent payment or inflation-indexed debt instrument. 1040ez form booklet See the discussions under Figuring OID on Long-Term Debt Instruments or Figuring OID on Stripped Bonds and Coupons, later, for the specific computations. 1040ez form booklet Refiguring interest. 1040ez form booklet   If you disposed of a debt instrument or acquired it from another holder between interest dates, see the discussion under Bonds Sold Between Interest Dates in chapter 1 of Publication 550 for information about refiguring the interest shown on Form 1099-OID in box 2. 1040ez form booklet Nominee. 1040ez form booklet   If you are the holder of an OID debt instrument and you receive a Form 1099-OID that shows your taxpayer identification number and includes amounts belonging to another person, you are considered a “nominee. 1040ez form booklet ” You must file another Form 1099-OID for each actual owner, showing the OID for the owner. 1040ez form booklet Show the owner of the debt instrument as the “recipient” and you as the “payer. 1040ez form booklet ”   Complete Form 1099-OID and Form 1096 and file the forms with the Internal Revenue Service Center for your area. 1040ez form booklet You must also give a copy of the Form 1099-OID to the actual owner. 1040ez form booklet However, you are not required to file a nominee return to show amounts belonging to your spouse. 1040ez form booklet See the Form 1099 instructions for more information. 1040ez form booklet   When preparing your tax return, follow the instructions under Showing an OID adjustment in the next discussion. 1040ez form booklet How To Report OID Generally, you report your taxable interest and OID income on the interest line of Form 1040EZ, Form 1040A, or Form 1040. 1040ez form booklet Form 1040 or Form 1040A required. 1040ez form booklet   You must use Form 1040 or Form 1040A (you cannot use Form 1040EZ) under either of the following conditions. 1040ez form booklet You received a Form 1099-OID as a nominee for the actual owner. 1040ez form booklet Your total interest and OID income for the year was more than $1,500. 1040ez form booklet Form 1040 required. 1040ez form booklet   You must use Form 1040 (you cannot use Form 1040A or Form 1040EZ) if you are reporting more or less OID than the amount shown on Form 1099-OID, other than because you are a nominee. 1040ez form booklet For example, if you paid a premium or an acquisition premium when you purchased the debt instrument, you must use Form 1040 because you will report less OID than shown on Form 1099-OID. 1040ez form booklet Also, you must use Form 1040 if you were charged an early withdrawal penalty. 1040ez form booklet Where to report. 1040ez form booklet   List each payer's name (if a brokerage firm gave you a Form 1099, list the brokerage firm as the payer) and the amount received from each payer on Form 1040A, Schedule B, Part I, line 1, or Form 1040, Schedule B, line 1. 1040ez form booklet Include all OID and periodic interest shown on any Form 1099-OID, boxes 1, 2, and 8, you received for the tax year. 1040ez form booklet Also include any other OID and interest income for which you did not receive a Form 1099. 1040ez form booklet Showing an OID adjustment. 1040ez form booklet   If you use Form 1040 to report more or less OID than shown on Form 1099-OID, list the full OID on Schedule B, Part I, line 1, and follow the instructions under 1 or 2, next. 1040ez form booklet   If you use Form 1040A to report the OID shown on a Form 1099-OID you received as a nominee for the actual owner, list the full OID on Schedule B, Part I, line 1 and follow the instructions under 1. 1040ez form booklet If the OID, as adjusted, is less than the amount shown on Form 1099-OID, show the adjustment as follows. 1040ez form booklet Under your last entry on line 1, subtotal all interest and OID income listed on line 1. 1040ez form booklet Below the subtotal, write “Nominee Distribution” or “OID Adjustment” and show the OID you are not required to report. 1040ez form booklet Subtract that OID from the subtotal and enter the result on line 2. 1040ez form booklet If the OID, as adjusted, is more than the amount shown on Form 1099-OID, show the adjustment as follows. 1040ez form booklet Under your last entry on line 1, subtotal all interest and OID income listed on line 1. 1040ez form booklet Below the subtotal, write “OID Adjustment” and show the additional OID. 1040ez form booklet Add that OID to the subtotal and enter the result on line 2. 1040ez form booklet Figuring OID on Long-Term Debt Instruments How you figure the OID on a long-term debt instrument depends on the date it was issued. 1040ez form booklet It also may depend on the type of the debt instrument. 1040ez form booklet There are different rules for each of the following debt instruments. 1040ez form booklet Corporate debt instruments issued after 1954 and before May 28, 1969, and government debt instruments issued after 1954 and before July 2, 1982. 1040ez form booklet Corporate debt instruments issued after May 27, 1969, and before July 2, 1982. 1040ez form booklet Debt instruments issued after July 1, 1982, and before 1985. 1040ez form booklet Debt instruments issued after 1984 (other than debt instruments described in (5) and (6)). 1040ez form booklet Contingent payment debt instruments issued after August 12, 1996. 1040ez form booklet Inflation-indexed debt instruments (including Treasury inflation-protected securities) issued after January 5, 1997. 1040ez form booklet Zero coupon bonds. 1040ez form booklet   The rules for figuring OID on zero coupon bonds backed by U. 1040ez form booklet S. 1040ez form booklet Treasury securities are discussed under Figuring OID on Stripped Bonds and Coupons, later. 1040ez form booklet Corporate Debt Instruments Issued After 1954 and Before May 28, 1969, and Government Debt Instruments Issued After 1954 and Before July 2, 1982 If you hold these debt instruments as capital assets, you include OID in income only in the year the debt instrument is sold, exchanged, or redeemed, and only if you have a gain. 1040ez form booklet The OID, which is taxed as ordinary income, generally equals the following amount. 1040ez form booklet   number of full months you held the debt instrument  number of full months from date of original issue to date of maturity X original issue discount The balance of the gain is capital gain. 1040ez form booklet If there is a loss on the sale of the debt instrument, the entire loss is a capital loss and no OID is reported. 1040ez form booklet Corporate Debt Instruments Issued After May 27, 1969, and Before July 2, 1982 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments. 1040ez form booklet For information about showing the correct OID on your tax return, see the discussion under How To Report OID, earlier. 1040ez form booklet Your basis in the debt instrument is increased by the OID you include in income. 1040ez form booklet Form 1099-OID. 1040ez form booklet   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. 1040ez form booklet However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. 1040ez form booklet See Reduction for acquisition premium, later. 1040ez form booklet If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. 1040ez form booklet irs. 1040ez form booklet gov/pub1212 by clicking the link under Recent Developments. 1040ez form booklet Form 1099-OID not received. 1040ez form booklet    The OID listed is for each $1,000 of redemption price. 1040ez form booklet You must adjust the listed amount if your debt instrument has a different principal amount. 1040ez form booklet For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. 1040ez form booklet   If you held the debt instrument the entire year, use the OID shown in Section I-A for a calendar year. 1040ez form booklet (If your debt instrument is not listed in Section I-A, consult the issuer for information about the issue price and the OID that accrued for that year. 1040ez form booklet ) If you did not hold the debt instrument the entire year, figure your OID using the following method. 1040ez form booklet Divide the OID shown by 12. 1040ez form booklet Multiply the result in (1) by the number of complete and partial months (for example, 6½ months) you held the debt instrument during a calendar year. 1040ez form booklet This is the OID to include in income unless you paid an acquisition premium. 1040ez form booklet The reduction for acquisition premium is discussed next. 1040ez form booklet Reduction for acquisition premium. 1040ez form booklet   If you bought the debt instrument at an acquisition premium, figure the OID to include in income as follows. 1040ez form booklet Divide the total OID on the debt instrument by the number of complete months, and any part of a month, from the date of original issue to the maturity date. 1040ez form booklet This is the monthly OID. 1040ez form booklet Subtract from your cost the issue price and the accumulated OID from the date of issue to the date of purchase. 1040ez form booklet (If the result is zero or less, stop here. 1040ez form booklet You did not pay an acquisition premium. 1040ez form booklet ) Divide the amount figured in (2) by the number of complete months, and any part of a month, from the date of your purchase to the maturity date. 1040ez form booklet Subtract the amount figured in (3) from the amount figured in (1). 1040ez form booklet This is the OID to include in income for each month you hold the debt instrument during the year. 1040ez form booklet Transfers during the month. 1040ez form booklet   If you buy or sell a debt instrument on any day other than the same day of the month as the date of original issue, the ratable monthly portion of OID for the month of sale is divided between the seller and the buyer according to the number of days each held the debt instrument. 1040ez form booklet Your holding period for this purpose begins the day you acquire the debt instrument and ends the day before you dispose of it. 1040ez form booklet Debt Instruments Issued After July 1, 1982, and Before 1985 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments and increase your basis by the amount included. 1040ez form booklet For information about showing the correct OID on your tax return, see How To Report OID, earlier. 1040ez form booklet Form 1099-OID. 1040ez form booklet   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. 1040ez form booklet However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. 1040ez form booklet See Constant yield method and the discussions on acquisition premium that follow, later. 1040ez form booklet If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. 1040ez form booklet irs. 1040ez form booklet gov/pub1212 by clicking the link under Recent Developments. 1040ez form booklet Form 1099-OID not received. 1040ez form booklet    The OID listed is for each $1,000 of redemption price. 1040ez form booklet You must adjust the listed amount if your debt instrument has a different principal amount. 1040ez form booklet For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. 1040ez form booklet   If you held the debt instrument the entire year, use the OID shown in Section I-A. 1040ez form booklet (If your instrument is not listed in Section I-A, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. 1040ez form booklet ) If you did not hold the debt instrument the entire year, figure your OID using either of the following methods. 1040ez form booklet Method 1. 1040ez form booklet    Divide the total OID for a calendar year by 365 (366 for leap years). 1040ez form booklet Multiply the result in (1) by the number of days you held the debt instrument during that particular year. 1040ez form booklet  This computation is an approximation and may result in a slightly higher OID than Method 2. 1040ez form booklet Method 2. 1040ez form booklet    Look up the daily OID for the first accrual period you held the debt instrument during a calendar year. 1040ez form booklet (See Accrual period under Constant yield method, next. 1040ez form booklet ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. 1040ez form booklet If you held the debt instrument for part of both accrual periods, repeat (1) and (2) for the second accrual period. 1040ez form booklet Add the results of (2) and (3). 1040ez form booklet This is the OID to include in income, unless you paid an acquisition premium. 1040ez form booklet (The reduction for acquisition premium is discussed later. 1040ez form booklet ) Constant yield method. 1040ez form booklet   This discussion shows how to figure OID on debt instruments issued after July 1, 1982, and before 1985, using a constant yield method. 1040ez form booklet OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. 1040ez form booklet   Figure the OID allocable to any accrual period as follows. 1040ez form booklet Multiply the adjusted issue price at the beginning of the accrual period by the debt instrument's yield to maturity. 1040ez form booklet Subtract from the result in (1) any qualified stated interest allocable to the accrual period. 1040ez form booklet Accrual period. 1040ez form booklet   An accrual period for any OID debt instrument issued after July 1, 1982, and before 1985 is each 1-year period beginning on the date of the issue of the obligation and each anniversary thereafter, or the shorter period to maturity for the last accrual period. 1040ez form booklet Your tax year will usually include parts of two accrual periods. 1040ez form booklet Daily OID. 1040ez form booklet   The OID for any accrual period is allocated equally to each day in the accrual period. 1040ez form booklet You must include in income the sum of the OID amounts for each day you hold the debt instrument during the year. 1040ez form booklet If your tax year includes parts of two or more accrual periods, you must include the proper daily OID amounts for each accrual period. 1040ez form booklet Figuring daily OID. 1040ez form booklet   The daily OID for the initial accrual period is figured using the following formula. 1040ez form booklet   (ip × ytm) − qsi     p   ip = issue price ytm = yield to maturity qsi = qualified stated interest p = number of days in accrual period         The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. 1040ez form booklet Reduction for acquisition premium on debt instruments purchased before July 19, 1984. 1040ez form booklet   If you bought the debt instrument at an acquisition premium before July 19, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. 1040ez form booklet Figure the daily acquisition premium by dividing the total acquisition premium by the number of days in the period beginning on your purchase date and ending on the day before the date of maturity. 1040ez form booklet Reduction for acquisition premium on debt instruments purchased after July 18, 1984. 1040ez form booklet   If you bought the debt instrument at an acquisition premium after July 18, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. 1040ez form booklet However, the method of figuring the daily acquisition premium is different from the method described in the preceding discussion. 1040ez form booklet To figure the daily acquisition premium under this method, multiply the daily OID by the following fraction. 1040ez form booklet The numerator is the acquisition premium. 1040ez form booklet The denominator is the total OID remaining for the debt instrument after your purchase date. 1040ez form booklet Section I-A is available at www. 1040ez form booklet irs. 1040ez form booklet gov/pub1212 and clicking the link under Recent Developments. 1040ez form booklet Using Section I-A to figure accumulated OID. 1040ez form booklet   If you bought your corporate debt instrument in a calendar year or the subsequent year, you can figure the accumulated OID to the date of purchase by adding the following amounts. 1040ez form booklet The amount from the “Total OID to January 1, YYYY” column for your debt instrument. 1040ez form booklet The OID from January 1 of a calendar year to the date of purchase, figured as follows. 1040ez form booklet Multiply the daily OID for the first accrual period in the calendar year by the number of days from January 1 to the date of purchase, or the end of the accrual period if the debt instrument was purchased in the second or third accrual period. 1040ez form booklet Multiply the daily OID for each subsequent accrual period by the number of days in the period to the date of purchase or the end of the accrual period, whichever applies. 1040ez form booklet Add the amounts figured in (2a) and (2b). 1040ez form booklet Debt Instruments Issued After 1984 If you hold debt instruments issued after 1984, you must report part of the OID in gross income each year that you own the debt instruments. 1040ez form booklet You must include the OID in gross income whether or not you hold the debt instrument as a capital asset. 1040ez form booklet Your basis in the debt instrument is increased by the OID you include in income. 1040ez form booklet For information about showing the correct OID on your tax return, see How To Report OID, earlier. 1040ez form booklet Form 1099-OID. 1040ez form booklet   You should receive a Form 1099-OID showing OID for the part of a calendar year you held the debt instrument. 1040ez form booklet However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. 1040ez form booklet See Constant yield method and Reduction for acquisition premium, later. 1040ez form booklet   You may also need to refigure the OID for a contingent payment or inflation-indexed debt instrument on which the amount reported on Form 1099-OID is inaccurate. 1040ez form booklet See Contingent Payment Debt Instruments or Inflation-Indexed Debt Instruments, later. 1040ez form booklet If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-B available at www. 1040ez form booklet irs. 1040ez form booklet gov/pub1212 by clicking the link under Recent Developments. 1040ez form booklet Form 1099-OID not received. 1040ez form booklet   The OID listed is for each $1,000 of redemption price. 1040ez form booklet You must adjust the listed amount if your debt instrument has a different principal amount. 1040ez form booklet For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. 1040ez form booklet   Use the OID shown in Section I-B for a calendar year if you held the debt instrument the entire year. 1040ez form booklet (If your debt instrument is not listed in Section I-B, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. 1040ez form booklet ) If you did not hold the debt instrument the entire year, figure your OID as follows. 1040ez form booklet Look up the daily OID for the first accrual period in which you held the debt instrument during a calendar year. 1040ez form booklet (See Accrual period under Constant yield method, later. 1040ez form booklet ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. 1040ez form booklet Repeat (1) and (2) for any remaining accrual periods in which you held the debt instrument. 1040ez form booklet Add the results of (2) and (3). 1040ez form booklet This is the OID to include in income for that year, unless you paid an acquisition premium. 1040ez form booklet (The reduction for acquisition premium is discussed later. 1040ez form booklet ) Tax-exempt bond. 1040ez form booklet   If you own a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. 1040ez form booklet You need to make this adjustment to determine if you have a gain or loss on a later disposition of the bond. 1040ez form booklet In general, use the rules that follow to determine your OID. 1040ez form booklet Constant yield method. 1040ez form booklet   This discussion shows how to figure OID on debt instruments issued after 1984 using a constant yield method. 1040ez form booklet (The special rules that apply to contingent payment debt instruments and inflation-indexed debt instruments are explained later. 1040ez form booklet ) OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. 1040ez form booklet   Figure the OID allocable to any accrual period as follows. 1040ez form booklet Multiply the adjusted issue price at the beginning of the accrual period by a fraction. 1040ez form booklet The numerator of the fraction is the debt instrument's yield to maturity and the denominator is the number of accrual periods per year. 1040ez form booklet The yield must be stated appropriately taking into account the length of the particular accrual period. 1040ez form booklet Subtract from the result in (1) any qualified stated interest allocable to the accrual period. 1040ez form booklet Accrual period. 1040ez form booklet   For debt instruments issued after 1984 and before April 4, 1994, an accrual period is each 6-month period that ends on the day that corresponds to the stated maturity date of the debt instrument or the date 6 months before that date. 1040ez form booklet For example, a debt instrument maturing on March 31 has accrual periods that end on September 30 and March 31 of each calendar year. 1040ez form booklet Any short period is included as the first accrual period. 1040ez form booklet   For debt instruments issued after April 3, 1994, accrual periods may be of any length and may vary in length over the term of the debt instrument, as long as each accrual period is no longer than 1 year and all payments are made on the first or last day of an accrual period. 1040ez form booklet However, the OID listed for these debt instruments in Section I-B has been figured using 6-month accrual periods. 1040ez form booklet Daily OID. 1040ez form booklet   The OID for any accrual period is allocated equally to each day in the accrual period. 1040ez form booklet Figure the amount to include in income by adding the OID for each day you hold the debt instrument during the year. 1040ez form booklet Since your tax year will usually include parts of two or more accrual periods, you must include the proper daily OID for each accrual period. 1040ez form booklet If your debt instrument has 6-month accrual periods, your tax year will usually include one full 6-month accrual period and parts of two other 6-month periods. 1040ez form booklet Figuring daily OID. 1040ez form booklet   The daily OID for the initial accrual period is figured using the following formula. 1040ez form booklet   (ip × ytm/n) − qsi     p   ip = issue price ytm = yield to maturity n = number of accrual periods in 1 year qsi = qualified stated interest p = number of days in accrual period       The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. 1040ez form booklet Example 5. 1040ez form booklet On January 1 of Year 1, you bought a 15-year, 10% debt instrument of A Corporation at original issue for $86,235. 1040ez form booklet 17. 1040ez form booklet According to the prospectus, the debt instrument matures on December 31 of Year 15 at a stated redemption price of $100,000. 1040ez form booklet The yield to maturity is 12%, compounded semiannually. 1040ez form booklet The debt instrument provides for qualified stated interest payments of $5,000 on June 30 and December 31 of each calendar year. 1040ez form booklet The accrual periods are the 6-month periods ending on each of these dates. 1040ez form booklet The number of days for the first accrual period (January 1 through June 30) is 181 days (182 for leap years). 1040ez form booklet The daily OID for the first accrual period is figured as follows. 1040ez form booklet   ($86,235. 1040ez form booklet 17 x . 1040ez form booklet 12/2) – $5,000     181 days     = $174. 1040ez form booklet 11020 = $. 1040ez form booklet 96193   181           The adjusted issue price at the beginning of the second accrual period is the issue price plus the OID previously includible in income ($86,235. 1040ez form booklet 17 + $174. 1040ez form booklet 11), or $86,409. 1040ez form booklet 28. 1040ez form booklet The number of days for the second accrual period (July 1 through December 31) is 184 days. 1040ez form booklet The daily OID for the second accrual period is figured as follows. 1040ez form booklet   ($86,409. 1040ez form booklet 28 x . 1040ez form booklet 12/2) – $5,000     184 days     = $184. 1040ez form booklet 55681 = $1. 1040ez form booklet 00303   184 Since the first and second accrual periods coincide exactly with your tax year, you include in income for Year 1 the OID allocable to the first two accrual periods, $174. 1040ez form booklet 11 ($. 1040ez form booklet 95665 × 182 days) plus $184. 1040ez form booklet 56 ($1. 1040ez form booklet 00303 × 184 days), or $358. 1040ez form booklet 67. 1040ez form booklet Add the OID to the $10,000 interest you report on your income tax return for Year 1. 1040ez form booklet Example 6. 1040ez form booklet Assume the same facts as in Example 5, except that you bought the debt instrument at original issue on May 1 of Year 1, with a maturity date of April 30, Year 16. 1040ez form booklet Also, the interest payment dates are October 31 and April 30 of each calendar year. 1040ez form booklet The accrual periods are the 6-month periods ending on each of these dates. 1040ez form booklet The number of days for the first accrual period (May 1 through October 31) is 184 days. 1040ez form booklet The daily OID for the first accrual period is figured as follows. 1040ez form booklet   ($86,235. 1040ez form booklet 17 x . 1040ez form booklet 12/2) – $5,000     184 days     = $174. 1040ez form booklet 11020 = $. 1040ez form booklet 94625   184           The number of days for the second accrual period (November 1 through April 30) is 181 days (182 for leap years). 1040ez form booklet The daily OID for the second accrual period is figured as follows. 1040ez form booklet   ($86,409. 1040ez form booklet 28 x . 1040ez form booklet 12/2) – $5,000     181 days     = $184. 1040ez form booklet 55681 = $1. 1040ez form booklet 01965   181 If you hold the debt instrument through the end of Year 1, you must include $236. 1040ez form booklet 31 of OID in income. 1040ez form booklet This is $174. 1040ez form booklet 11 ($. 1040ez form booklet 94625 × 184 days) for the period May 1 through October 31 plus $62. 1040ez form booklet 20 ($1. 1040ez form booklet 01965 × 61 days) for the period November 1 through December 31. 1040ez form booklet The OID is added to the $5,000 interest income paid on October 31 of Year 1. 1040ez form booklet Your basis in the debt instrument is increased by the OID you include in income. 1040ez form booklet On January 1 of Year 2, your basis in the A Corporation debt instrument is $86,471. 1040ez form booklet 48 ($86,235. 1040ez form booklet 17 + $236. 1040ez form booklet 31). 1040ez form booklet Short first accrual period. 1040ez form booklet   You may have to make adjustments if a debt instrument has a short first accrual period. 1040ez form booklet For example, a debt instrument with 6-month accrual periods that is issued on February 15 and matures on October 31 has a short first accrual period that ends April 30. 1040ez form booklet (The remaining accrual periods begin on May 1 and November 1. 1040ez form booklet ) For this short period, figure the daily OID as described earlier, but adjust the yield for the length of the short accrual period. 1040ez form booklet You may use any reasonable compounding method in determining OID for a short period. 1040ez form booklet Examples of reasonable compounding methods include continuous compounding and monthly compounding (that is, simple interest within a month). 1040ez form booklet Consult your tax advisor for more information about making this computation. 1040ez form booklet   The OID for the final accrual period is the difference between the amount payable at maturity (other than a payment of qualified stated interest) and the adjusted issue price at the beginning of the final accrual period. 1040ez form booklet Reduction for acquisition premium. 1040ez form booklet   If you bought the debt instrument at an acquisition premium, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. 1040ez form booklet To figure the daily acquisition premium, multiply the daily OID by the following fraction. 1040ez form booklet The numerator is the acquisition premium. 1040ez form booklet The denominator is the total OID remaining for the debt instrument after your purchase date. 1040ez form booklet Example 7. 1040ez form booklet Assume the same facts as in Example 6, except that you bought the debt instrument on November 1 of Year 1 for $87,000, after its original issue on May 1 of Year 1. 1040ez form booklet The adjusted issue price on November 1 of Year 1 is $86,409. 1040ez form booklet 28 ($86,235. 1040ez form booklet 17 + $174. 1040ez form booklet 11). 1040ez form booklet In this case, you paid an acquisition premium of $590. 1040ez form booklet 72 ($87,000 − $86,409. 1040ez form booklet 28). 1040ez form booklet The daily OID for the accrual period November 1 through April 30, reduced for the acquisition premium, is figured as follows. 1040ez form booklet 1) Daily OID on date of purchase (2nd accrual period) $1. 1040ez form booklet 01965*  2)  Acquisition premium $590. 1040ez form booklet 72    3)  Total OID remaining after purchase date ($13,764. 1040ez form booklet 83 − $174. 1040ez form booklet 11) 13,590. 1040ez form booklet 72   4) Line 2 ÷ line 3 . 1040ez form booklet 04346  5)  Line 1 × line 4 . 1040ez form booklet 04432  6)  Daily OID reduced for the acquisition premium. 1040ez form booklet Line 1 − line 5 $0. 1040ez form booklet 97533  * As shown in Example 6. 1040ez form booklet The total OID to include in income for Year 1 is $59. 1040ez form booklet 50 ($. 1040ez form booklet 97533 × 61 days). 1040ez form booklet Contingent Payment Debt Instruments This discussion shows how to figure OID on a contingent payment debt instrument issued after August 12, 1996, that was issued for cash or publicly traded property. 1040ez form booklet In general, a contingent payment debt instrument provides for one or more payments that are contingent as to timing or amount. 1040ez form booklet If you hold a contingent payment bond, you must report OID as it accrues each year. 1040ez form booklet Because the actual payments on a contingent payment debt instrument cannot be known in advance, issuers and holders cannot use the constant yield method (discussed earlier under Debt Instruments Issued After 1984) without making certain assumptions about the payments on the debt instrument. 1040ez form booklet To figure OID accruals on contingent payment debt instruments, holders and issuers must use the noncontingent bond method. 1040ez form booklet Noncontingent bond method. 1040ez form booklet    Under this method, the issuer must compute a comparable yield for the debt instrument and, based on this yield, construct a projected payment schedule for the instrument, which includes a projected fixed amount for each contingent payment. 1040ez form booklet In general, holders and issuers accrue OID on this projected payment schedule using the constant yield method that applies to fixed payment debt instruments. 1040ez form booklet When a contingent payment differs from the projected fixed amount, the holders and issuers make adjustments to their OID accruals. 1040ez form booklet If the actual contingent payment is larger than expected, both the issuer and the holder increase their OID accruals. 1040ez form booklet If the actual contingent payment is smaller than expected, holders and issuers generally decrease their OID accruals. 1040ez form booklet Form 1099-OID. 1040ez form booklet   The amount shown on Form 1099-OID in box 1 you receive for a contingent payment debt instrument may not be the correct amount to include in income. 1040ez form booklet For example, the amount may not be correct if the contingent payment was different from the projected amount. 1040ez form booklet If the amount in box 1 is not correct, you must figure the OID to report on your return under the following rules. 1040ez form booklet For information on showing an OID adjustment on your tax return, see How To Report OID, earlier. 1040ez form booklet Figuring OID. 1040ez form booklet   To figure OID on a contingent payment debt instrument, you need to know the “comparable yield” and “projected payment schedule” of the debt instrument. 1040ez form booklet The issuer must make these available to you. 1040ez form booklet Comparable yield. 1040ez form booklet   The comparable yield generally is the yield at which the issuer would issue a fixed rate debt instrument with terms and conditions similar to those of the contingent payment debt instrument. 1040ez form booklet The comparable yield is determined as of the debt instrument's issue date. 1040ez form booklet Projected payment schedule. 1040ez form booklet   The projected payment schedule for a contingent payment debt instrument includes all fixed payments due under the instrument and a projected fixed amount for each contingent payment. 1040ez form booklet The projected payment schedule is created by the issuer as of the debt instrument's issue date. 1040ez form booklet It is used to determine the issuer's and holder's interest accruals and adjustments. 1040ez form booklet Steps for figuring OID. 1040ez form booklet   Figure the OID on a contingent payment debt instrument in two steps. 1040ez form booklet Figure the OID using the constant yield method (discussed earlier under Debt Instruments Issued After 1984 ) that applies to fixed payment debt instruments. 1040ez form booklet Use the comparable yield as the yield to maturity. 1040ez form booklet In general, use the projected payment schedule to determine the instrument's adjusted issue price at the beginning of each accrual period (other than the initial period). 1040ez form booklet Do not treat any amount payable as qualified stated interest. 1040ez form booklet Adjust the OID in (1) to account for actual contingent payments. 1040ez form booklet If the contingent payment is greater than the projected fixed amount, you have a positive adjustment. 1040ez form booklet If the contingent payment is less than the projected fixed amount, you have a negative adjustment. 1040ez form booklet Net positive adjustment. 1040ez form booklet   A net positive adjustment exists for a tax year when the total of any positive adjustments described in (2) above for the tax year is more than the total of any negative adjustments for the tax year. 1040ez form booklet Treat a net positive adjustment as additional OID for the tax year. 1040ez form booklet Net negative adjustment. 1040ez form booklet   A net negative adjustment exists for a tax year when the total of any negative adjustments described in (2) above for the tax year is more than the total of any positive adjustments for the tax year. 1040ez form booklet Use a net negative adjustment to offset OID on the debt instrument for the tax year. 1040ez form booklet If the net negative adjustment is more than the OID on the debt instrument for the tax year, you can claim the difference as an ordinary loss. 1040ez form booklet However, the amount you can claim as an ordinary loss is limited to the OID on the debt instrument you included in income in prior tax years. 1040ez form booklet You must carry forward any net negative adjustment that is more than the total OID for the tax year and prior tax years and treat it as a negative adjustment in the next tax year. 1040ez form booklet Basis adjustments. 1040ez form booklet   In general, increase your basis in a contingent payment debt instrument by the OID included in income. 1040ez form booklet Your basis, however, is not affected by any negative or positive adjustments. 1040ez form booklet Decrease your basis by any noncontingent payment received and the projected contingent payment scheduled to be received. 1040ez form booklet Treatment of gain or loss on sale or exchange. 1040ez form booklet   If you sell a contingent payment debt instrument at a gain, your gain is ordinary income (interest income), even if you hold the debt instrument as a capital asset. 1040ez form booklet If you sell a contingent payment debt instrument at a loss, your loss is an ordinary loss to the extent of your prior OID accruals on the debt instrument. 1040ez form booklet If the debt instrument is a capital asset, treat any loss that is more than your prior OID accruals as a capital loss. 1040ez form booklet See Regulations section 1. 1040ez form booklet 1275-4 for exceptions to these rules. 1040ez form booklet Premium, acquisition premium, and market discount. 1040ez form booklet   The rules for accruing premium, acquisition premium, and market discount do not apply to a contingent payment debt instrument. 1040ez form booklet See Regulations section 1. 1040ez form booklet 1275-4 to determine how to account for these items. 1040ez form booklet Inflation-Indexed Debt Instruments This discussion shows how you figure OID on certain inflation-indexed debt instruments issued after January 5, 1997. 1040ez form booklet An inflation-indexed debt instrument is generally a debt instrument on which the payments are adjusted for inflation and d
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Farm Credit System Insurance Corporation

The Farm Credit System Insurance Corporation ensures timely payment of interest and principal on Systemwide and consolidated bonds and other obligations issued by Farm Credit System banks.

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The 1040ez Form Booklet

1040ez form booklet 5. 1040ez form booklet   Wages, Salaries, and Other Earnings Table of Contents Reminder Introduction Useful Items - You may want to see: Employee CompensationBabysitting. 1040ez form booklet Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Reminder Foreign income. 1040ez form booklet   If you are a U. 1040ez form booklet S. 1040ez form booklet citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U. 1040ez form booklet S. 1040ez form booklet law. 1040ez form booklet This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. 1040ez form booklet This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). 1040ez form booklet If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. 1040ez form booklet For details, see Publication 54, Tax Guide for U. 1040ez form booklet S. 1040ez form booklet Citizens and Resident Aliens Abroad. 1040ez form booklet Introduction This chapter discusses compensation received for services as an employee, such as wages, salaries, and fringe benefits. 1040ez form booklet The following topics are included. 1040ez form booklet Bonuses and awards. 1040ez form booklet Special rules for certain employees. 1040ez form booklet Sickness and injury benefits. 1040ez form booklet The chapter explains what income is included in the employee's gross income and what is not included. 1040ez form booklet Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income Employee Compensation This section discusses various types of employee compensation including fringe benefits, retirement plan contributions, stock options, and restricted property. 1040ez form booklet Form W-2. 1040ez form booklet    If you are an employee, you should receive Form W-2 from your employer showing the pay you received for your services. 1040ez form booklet Include your pay on line 7 of Form 1040 or Form 1040A, or on line 1 of Form 1040EZ, even if you do not receive a Form W-2. 1040ez form booklet   If you performed services, other than as an independent contractor, and your employer did not withhold social security and Medicare taxes from your pay, you must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, with your Form 1040. 1040ez form booklet These wages must be included on line 7 of Form 1040. 1040ez form booklet See Form 8919 for more information. 1040ez form booklet Childcare providers. 1040ez form booklet    If you provide childcare, either in the child's home or in your home or other place of business, the pay you receive must be included in your income. 1040ez form booklet If you are not an employee, you are probably self-employed and must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. 1040ez form booklet You generally are not an employee unless you are subject to the will and control of the person who employs you as to what you are to do and how you are to do it. 1040ez form booklet Babysitting. 1040ez form booklet   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. 1040ez form booklet Miscellaneous Compensation This section discusses different types of employee compensation. 1040ez form booklet Advance commissions and other earnings. 1040ez form booklet   If you receive advance commissions or other amounts for services to be performed in the future and you are a cash-method taxpayer, you must include these amounts in your income in the year you receive them. 1040ez form booklet    If you repay unearned commissions or other amounts in the same year you receive them, reduce the amount included in your income by the repayment. 1040ez form booklet If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), or you may be able to take a credit for that year. 1040ez form booklet See Repayments in chapter 12. 1040ez form booklet Allowances and reimbursements. 1040ez form booklet    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463. 1040ez form booklet If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. 1040ez form booklet Back pay awards. 1040ez form booklet    Include in income amounts you are awarded in a settlement or judgment for back pay. 1040ez form booklet These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. 1040ez form booklet They should be reported to you by your employer on Form W-2. 1040ez form booklet Bonuses and awards. 1040ez form booklet   Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. 1040ez form booklet These include prizes such as vacation trips for meeting sales goals. 1040ez form booklet If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. 1040ez form booklet However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you. 1040ez form booklet Employee achievement award. 1040ez form booklet   If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. 1040ez form booklet However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. 1040ez form booklet Your employer can tell you whether your award is a qualified plan award. 1040ez form booklet Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay. 1040ez form booklet   However, the exclusion does not apply to the following awards: A length-of-service award if you received it for less than 5 years of service or if you received another length-of-service award during the year or the previous 4 years. 1040ez form booklet A safety achievement award if you are a manager, administrator, clerical employee, or other professional employee or if more than 10% of eligible employees previously received safety achievement awards during the year. 1040ez form booklet Example. 1040ez form booklet Ben Green received three employee achievement awards during the year: a nonqualified plan award of a watch valued at $250, and two qualified plan awards of a stereo valued at $1,000 and a set of golf clubs valued at $500. 1040ez form booklet Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. 1040ez form booklet However, because the $1,750 total value of the awards is more than $1,600, Ben must include $150 ($1,750 – $1,600) in his income. 1040ez form booklet Differential wage payments. 1040ez form booklet   This is any payment made to you by an employer for any period during which you are, for a period of more than 30 days, an active duty member of the uniformed services and represents all or a portion of the wages you would have received from the employer during that period. 1040ez form booklet These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. 1040ez form booklet The payments are reported as wages on Form W-2. 1040ez form booklet Government cost-of-living allowances. 1040ez form booklet   Most payments received by U. 1040ez form booklet S. 1040ez form booklet Government civilian employees for working abroad are taxable. 1040ez form booklet However, certain cost-of-living allowances are tax free. 1040ez form booklet Publication 516, U. 1040ez form booklet S. 1040ez form booklet Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. 1040ez form booklet Nonqualified deferred compensation plans. 1040ez form booklet   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. 1040ez form booklet This amount is shown on Form W-2, box 12, using code Y. 1040ez form booklet This amount is not included in your income. 1040ez form booklet   However, if at any time during the tax year, the plan fails to meet certain requirements, or is not operated under those requirements, all amounts deferred under the plan for the tax year and all preceding tax years are included in your income for the current year. 1040ez form booklet This amount is included in your wages shown on Form W-2, box 1. 1040ez form booklet It is also shown on Form W-2, box 12, using code Z. 1040ez form booklet Note received for services. 1040ez form booklet    If your employer gives you a secured note as payment for your services, you must include the fair market value (usually the discount value) of the note in your income for the year you receive it. 1040ez form booklet When you later receive payments on the note, a proportionate part of each payment is the recovery of the fair market value that you previously included in your income. 1040ez form booklet Do not include that part again in your income. 1040ez form booklet Include the rest of the payment in your income in the year of payment. 1040ez form booklet   If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. 1040ez form booklet Severance pay. 1040ez form booklet   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. 1040ez form booklet Accrued leave payment. 1040ez form booklet    If you are a federal employee and receive a lump-sum payment for accrued annual leave when you retire or resign, this amount will be included as wages on your Form W-2. 1040ez form booklet   If you resign from one agency and are reemployed by another agency, you may have to repay part of your lump-sum annual leave payment to the second agency. 1040ez form booklet You can reduce gross wages by the amount you repaid in the same tax year in which you received it. 1040ez form booklet Attach to your tax return a copy of the receipt or statement given to you by the agency you repaid to explain the difference between the wages on the return and the wages on your Forms W-2. 1040ez form booklet Outplacement services. 1040ez form booklet   If you choose to accept a reduced amount of severance pay so that you can receive outplacement services (such as training in résumé writing and interview techniques), you must include the unreduced amount of the severance pay in income. 1040ez form booklet    However, you can deduct the value of these outplacement services (up to the difference between the severance pay included in income and the amount actually received) as a miscellaneous deduction (subject to the 2%-of-adjusted-gross-income (AGI) limit) on Schedule A (Form 1040). 1040ez form booklet Sick pay. 1040ez form booklet   Pay you receive from your employer while you are sick or injured is part of your salary or wages. 1040ez form booklet In addition, you must include in your income sick pay benefits received from any of the following payers: A welfare fund. 1040ez form booklet A state sickness or disability fund. 1040ez form booklet An association of employers or employees. 1040ez form booklet An insurance company, if your employer paid for the plan. 1040ez form booklet However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. 1040ez form booklet For more information, see Publication 525. 1040ez form booklet Social security and Medicare taxes paid by employer. 1040ez form booklet   If you and your employer have an agreement that your employer pays your social security and Medicare taxes without deducting them from your gross wages, you must report the amount of tax paid for you as taxable wages on your tax return. 1040ez form booklet The payment also is treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. 1040ez form booklet However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. 1040ez form booklet Stock appreciation rights. 1040ez form booklet   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. 1040ez form booklet When you use the right, you are entitled to a cash payment equal to the fair market value of the corporation's stock on the date of use minus the fair market value on the date the right was granted. 1040ez form booklet You include the cash payment in your income in the year you use the right. 1040ez form booklet Fringe Benefits Fringe benefits received in connection with the performance of your services are included in your income as compensation unless you pay fair market value for them or they are specifically excluded by law. 1040ez form booklet Abstaining from the performance of services (for example, under a covenant not to compete) is treated as the performance of services for purposes of these rules. 1040ez form booklet Accounting period. 1040ez form booklet   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. 1040ez form booklet Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. 1040ez form booklet The general rule: benefits are reported for a full calendar year (January 1–December 31). 1040ez form booklet The special accounting period rule: benefits provided during the last 2 months of the calendar year (or any shorter period) are treated as paid during the following calendar year. 1040ez form booklet For example, each year your employer reports the value of benefits provided during the last 2 months of the prior year and the first 10 months of the current year. 1040ez form booklet  Your employer does not have to use the same accounting period for each fringe benefit, but must use the same period for all employees who receive a particular benefit. 1040ez form booklet   You must use the same accounting period that you use to report the benefit to claim an employee business deduction (for use of a car, for example). 1040ez form booklet Form W-2. 1040ez form booklet   Your employer must include all taxable fringe benefits in box 1 of Form W-2 as wages, tips, and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages. 1040ez form booklet Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). 1040ez form booklet However, if your employer provided you with a vehicle and included 100% of its annual lease value in your income, the employer must separately report this value to you in box 14 (or on a separate statement). 1040ez form booklet Accident or Health Plan In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income. 1040ez form booklet Benefits you receive from the plan may be taxable, as explained later under Sickness and Injury Benefits . 1040ez form booklet For information on the items covered in this section, other than Long-term care coverage, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. 1040ez form booklet Long-term care coverage. 1040ez form booklet    Contributions by your employer to provide coverage for long-term care services generally are not included in your income. 1040ez form booklet However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. 1040ez form booklet This amount will be reported as wages in box 1 of your Form W-2. 1040ez form booklet   Contributions you make to the plan are discussed in Publication 502, Medical and Dental Expenses. 1040ez form booklet Archer MSA contributions. 1040ez form booklet    Contributions by your employer to your Archer MSA generally are not included in your income. 1040ez form booklet Their total will be reported in box 12 of Form W-2 with code R. 1040ez form booklet You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. 1040ez form booklet File the form with your return. 1040ez form booklet Health flexible spending arrangement (health FSA). 1040ez form booklet   If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income. 1040ez form booklet Note. 1040ez form booklet Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. 1040ez form booklet The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. 1040ez form booklet For more information, see Notice 2012-40, 2012-26 I. 1040ez form booklet R. 1040ez form booklet B. 1040ez form booklet 1046, available at www. 1040ez form booklet irs. 1040ez form booklet gov/irb/2012-26 IRB/ar09. 1040ez form booklet html. 1040ez form booklet Health reimbursement arrangement (HRA). 1040ez form booklet   If your employer provides an HRA that qualifies as an accident or health plan, coverage and reimbursements of your medical care expenses generally are not included in your income. 1040ez form booklet Health savings accounts (HSA). 1040ez form booklet   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. 1040ez form booklet Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. 1040ez form booklet Contributions made by your employer are not included in your income. 1040ez form booklet Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. 1040ez form booklet Distributions not used for qualified medical expenses are included in your income. 1040ez form booklet See Publication 969 for the requirements of an HSA. 1040ez form booklet   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. 1040ez form booklet The contributions are treated as a distribution of money and are not included in the partner's gross income. 1040ez form booklet Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are includible in the partner's gross income. 1040ez form booklet In both situations, the partner can deduct the contribution made to the partner's HSA. 1040ez form booklet   Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are includible in the shareholder-employee's gross income. 1040ez form booklet The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. 1040ez form booklet Qualified HSA funding distribution. 1040ez form booklet   You can make a one-time distribution from your individual retirement account (IRA) to an HSA and you generally will not include any of the distribution in your income. 1040ez form booklet See Publication 590 for the requirements for these qualified HSA funding distributions. 1040ez form booklet Failure to maintain eligibility. 1040ez form booklet   If your HSA received qualified HSA distributions from a health FSA or HRA (discussed earlier) or a qualified HSA funding distribution, you must be an eligible individual for HSA purposes for the period beginning with the month in which the qualified distribution was made and ending on the last day of the 12th month following that month. 1040ez form booklet If you fail to be an eligible individual during this period, other than because of death or disability, you must include the distribution in your income for the tax year in which you become ineligible. 1040ez form booklet This income is also subject to an additional 10% tax. 1040ez form booklet Adoption Assistance You may be able to exclude from your income amounts paid or expenses incurred by your employer for qualified adoption expenses in connection with your adoption of an eligible child. 1040ez form booklet See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. 1040ez form booklet Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. 1040ez form booklet They also are included as social security and Medicare wages in boxes 3 and 5. 1040ez form booklet However, they are not included as wages in box 1. 1040ez form booklet To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. 1040ez form booklet File the form with your return. 1040ez form booklet De Minimis (Minimal) Benefits If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. 1040ez form booklet In most cases, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. 1040ez form booklet Holiday gifts. 1040ez form booklet   If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. 1040ez form booklet However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved. 1040ez form booklet Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. 1040ez form booklet For more information, see Publication 970, Tax Benefits for Education. 1040ez form booklet Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) is not included in your income. 1040ez form booklet However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. 1040ez form booklet For exceptions, see Entire cost excluded , and Entire cost taxed , later. 1040ez form booklet If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of your Form W-2. 1040ez form booklet Also, it is shown separately in box 12 with code C. 1040ez form booklet Group-term life insurance. 1040ez form booklet   This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. 1040ez form booklet Permanent benefits. 1040ez form booklet   If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. 1040ez form booklet Your employer should be able to tell you the amount to include in your income. 1040ez form booklet Accidental death benefits. 1040ez form booklet   Insurance that provides accidental or other death benefits but does not provide general death benefits (travel insurance, for example) is not group-term life insurance. 1040ez form booklet Former employer. 1040ez form booklet   If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. 1040ez form booklet Also, it is shown separately in box 12 with code C. 1040ez form booklet Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. 1040ez form booklet You must pay these taxes with your income tax return. 1040ez form booklet Include them on line 60, Form 1040, and follow the instructions for line 60. 1040ez form booklet For more information, see the Instructions for Form 1040. 1040ez form booklet Two or more employers. 1040ez form booklet   Your exclusion for employer-provided group-term life insurance coverage cannot exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. 1040ez form booklet If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 will not be correct. 1040ez form booklet You must figure how much to include in your income. 1040ez form booklet Reduce the amount you figure by any amount reported with code C in box 12 of your Forms W-2, add the result to the wages reported in box 1, and report the total on your return. 1040ez form booklet Figuring the taxable cost. 1040ez form booklet   Use the following worksheet to figure the amount to include in your income. 1040ez form booklet     Worksheet 5-1. 1040ez form booklet Figuring the Cost of Group-Term Life Insurance To Include in Income 1. 1040ez form booklet Enter the total amount of your insurance coverage from your employer(s) 1. 1040ez form booklet   2. 1040ez form booklet Limit on exclusion for employer-provided group-term life insurance coverage 2. 1040ez form booklet 50,000 3. 1040ez form booklet Subtract line 2 from line 1 3. 1040ez form booklet   4. 1040ez form booklet Divide line 3 by $1,000. 1040ez form booklet Figure to the nearest tenth 4. 1040ez form booklet   5. 1040ez form booklet Go to Table 5-1. 1040ez form booklet Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. 1040ez form booklet   6. 1040ez form booklet Multiply line 4 by line 5 6. 1040ez form booklet   7. 1040ez form booklet Enter the number of full months of coverage at this cost. 1040ez form booklet 7. 1040ez form booklet   8. 1040ez form booklet Multiply line 6 by line 7 8. 1040ez form booklet   9. 1040ez form booklet Enter the premiums you paid per month 9. 1040ez form booklet       10. 1040ez form booklet Enter the number of months you paid the premiums 10. 1040ez form booklet       11. 1040ez form booklet Multiply line 9 by line 10. 1040ez form booklet 11. 1040ez form booklet   12. 1040ez form booklet Subtract line 11 from line 8. 1040ez form booklet Include this amount in your income as wages 12. 1040ez form booklet      Table 5-1. 1040ez form booklet Cost of $1,000 of Group-Term Life Insurance for One Month Age Cost Under 25 $. 1040ez form booklet 05 25 through 29 . 1040ez form booklet 06 30 through 34 . 1040ez form booklet 08 35 through 39 . 1040ez form booklet 09 40 through 44 . 1040ez form booklet 10 45 through 49 . 1040ez form booklet 15 50 through 54 . 1040ez form booklet 23 55 through 59 . 1040ez form booklet 43 60 through 64 . 1040ez form booklet 66 65 through 69 1. 1040ez form booklet 27 70 and older 2. 1040ez form booklet 06 Example. 1040ez form booklet You are 51 years old and work for employers A and B. 1040ez form booklet Both employers provide group-term life insurance coverage for you for the entire year. 1040ez form booklet Your coverage is $35,000 with employer A and $45,000 with employer B. 1040ez form booklet You pay premiums of $4. 1040ez form booklet 15 a month under the employer B group plan. 1040ez form booklet You figure the amount to include in your income as shown in Worksheet 5-1. 1040ez form booklet Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated, later. 1040ez form booklet Worksheet 5-1. 1040ez form booklet Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated 1. 1040ez form booklet Enter the total amount of your insurance coverage from your employer(s) 1. 1040ez form booklet 80,000 2. 1040ez form booklet Limit on exclusion for employer-provided group-term life insurance coverage 2. 1040ez form booklet 50,000 3. 1040ez form booklet Subtract line 2 from line 1 3. 1040ez form booklet 30,000 4. 1040ez form booklet Divide line 3 by $1,000. 1040ez form booklet Figure to the nearest tenth 4. 1040ez form booklet 30. 1040ez form booklet 0 5. 1040ez form booklet Go to Table 5-1. 1040ez form booklet Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. 1040ez form booklet . 1040ez form booklet 23 6. 1040ez form booklet Multiply line 4 by line 5 6. 1040ez form booklet 6. 1040ez form booklet 90 7. 1040ez form booklet Enter the number of full months of coverage at this cost. 1040ez form booklet 7. 1040ez form booklet 12 8. 1040ez form booklet Multiply line 6 by line 7 8. 1040ez form booklet 82. 1040ez form booklet 80 9. 1040ez form booklet Enter the premiums you paid per month 9. 1040ez form booklet 4. 1040ez form booklet 15     10. 1040ez form booklet Enter the number of months you paid the premiums 10. 1040ez form booklet 12     11. 1040ez form booklet Multiply line 9 by line 10. 1040ez form booklet 11. 1040ez form booklet 49. 1040ez form booklet 80 12. 1040ez form booklet Subtract line 11 from line 8. 1040ez form booklet Include this amount in your income as wages 12. 1040ez form booklet 33. 1040ez form booklet 00 Entire cost excluded. 1040ez form booklet   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. 1040ez form booklet You are permanently and totally disabled and have ended your employment. 1040ez form booklet Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. 1040ez form booklet A charitable organization (defined in chapter 24) to which contributions are deductible is the only beneficiary of the policy for the entire period the insurance is in force during the tax year. 1040ez form booklet (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. 1040ez form booklet ) The plan existed on January 1, 1984, and You retired before January 2, 1984, and were covered by the plan when you retired, or You reached age 55 before January 2, 1984, and were employed by the employer or its predecessor in 1983. 1040ez form booklet Entire cost taxed. 1040ez form booklet   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply: The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. 1040ez form booklet You are a key employee and your employer's plan discriminates in favor of key employees. 1040ez form booklet Retirement Planning Services If your employer has a qualified retirement plan, qualified retirement planning services provided to you (and your spouse) by your employer are not included in your income. 1040ez form booklet Qualified services include retirement planning advice, information about your employer's retirement plan, and information about how the plan may fit into your overall individual retirement income plan. 1040ez form booklet You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. 1040ez form booklet Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. 1040ez form booklet A qualified transportation fringe benefit is: Transportation in a commuter highway vehicle (such as a van) between your home and work place, A transit pass, Qualified parking, or Qualified bicycle commuting reimbursement. 1040ez form booklet Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. 1040ez form booklet However, cash reimbursement for a transit pass is excludable only if a voucher or similar item that can be exchanged only for a transit pass is not readily available for direct distribution to you. 1040ez form booklet Exclusion limit. 1040ez form booklet   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. 1040ez form booklet   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. 1040ez form booklet   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. 1040ez form booklet   If the benefits have a value that is more than these limits, the excess must be included in your income. 1040ez form booklet You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. 1040ez form booklet Commuter highway vehicle. 1040ez form booklet   This is a highway vehicle that seats at least six adults (not including the driver). 1040ez form booklet At least 80% of the vehicle's mileage must reasonably be expected to be: For transporting employees between their homes and work place, and On trips during which employees occupy at least half of the vehicle's adult seating capacity (not including the driver). 1040ez form booklet Transit pass. 1040ez form booklet   This is any pass, token, farecard, voucher, or similar item entitling a person to ride mass transit (whether public or private) free or at a reduced rate or to ride in a commuter highway vehicle operated by a person in the business of transporting persons for compensation. 1040ez form booklet Qualified parking. 1040ez form booklet   This is parking provided to an employee at or near the employer's place of business. 1040ez form booklet It also includes parking provided on or near a location from which the employee commutes to work by mass transit, in a commuter highway vehicle, or by carpool. 1040ez form booklet It does not include parking at or near the employee's home. 1040ez form booklet Qualified bicycle commuting. 1040ez form booklet   This is reimbursement based on the number of qualified bicycle commuting months for the year. 1040ez form booklet A qualified bicycle commuting month is any month you use the bicycle regularly for a substantial portion of the travel between your home and place of employment and you do not receive any of the other qualified transportation fringe benefits. 1040ez form booklet The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. 1040ez form booklet Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. 1040ez form booklet (Your employer can tell you whether your retirement plan is qualified. 1040ez form booklet ) However, the cost of life insurance coverage included in the plan may have to be included. 1040ez form booklet See Group-Term Life Insurance , earlier, under Fringe Benefits. 1040ez form booklet If your employer pays into a nonqualified plan for you, you generally must include the contributions in your income as wages for the tax year in which the contributions are made. 1040ez form booklet However, if your interest in the plan is not transferable or is subject to a substantial risk of forfeiture (you have a good chance of losing it) at the time of the contribution, you do not have to include the value of your interest in your income until it is transferable or is no longer subject to a substantial risk of forfeiture. 1040ez form booklet For information on distributions from retirement plans, see Publication 575, Pension and Annuity Income (or Publication 721, Tax Guide to U. 1040ez form booklet S. 1040ez form booklet Civil Service Retirement Benefits, if you are a federal employee or retiree). 1040ez form booklet Elective deferrals. 1040ez form booklet   If you are covered by certain kinds of retirement plans, you can choose to have part of your compensation contributed by your employer to a retirement fund, rather than have it paid to you. 1040ez form booklet The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. 1040ez form booklet An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. 1040ez form booklet However, it is included in wages subject to social security and Medicare taxes. 1040ez form booklet   Elective deferrals include elective contributions to the following retirement plans. 1040ez form booklet Cash or deferred arrangements (section 401(k) plans). 1040ez form booklet The Thrift Savings Plan for federal employees. 1040ez form booklet Salary reduction simplified employee pension plans (SARSEP). 1040ez form booklet Savings incentive match plans for employees (SIMPLE plans). 1040ez form booklet Tax-sheltered annuity plans (403(b) plans). 1040ez form booklet Section 501(c)(18)(D) plans. 1040ez form booklet Section 457 plans. 1040ez form booklet Qualified automatic contribution arrangements. 1040ez form booklet   Under a qualified automatic contribution arrangement, your employer can treat you as having elected to have a part of your compensation contributed to a section 401(k) plan. 1040ez form booklet You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. 1040ez form booklet The notice must explain: Your rights to elect not to have elective contributions made, or to have contributions made at a different percentage, and How contributions made will be invested in the absence of any investment decision by you. 1040ez form booklet   You must be given a reasonable period of time after receipt of the notice and before the first elective contribution is made to make an election with respect to the contributions. 1040ez form booklet Overall limit on deferrals. 1040ez form booklet   For 2013, in most cases, you should not have deferred more than a total of $17,500 of contributions to the plans listed in (1) through (3) and (5) above. 1040ez form booklet The limit for SIMPLE plans is $12,000. 1040ez form booklet The limit for section 501(c)(18)(D) plans is the lesser of $7,000 or 25% of your compensation. 1040ez form booklet The limit for section 457 plans is the lesser of your includible compensation or $17,500. 1040ez form booklet Amounts deferred under specific plan limits are part of the overall limit on deferrals. 1040ez form booklet Designated Roth contributions. 1040ez form booklet   Employers with section 401(k) and section 403(b) plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals to the plan designated as after-tax Roth contributions. 1040ez form booklet Designated Roth contributions are treated as elective deferrals, except that they are included in income. 1040ez form booklet Excess deferrals. 1040ez form booklet   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. 1040ez form booklet However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. 1040ez form booklet   If you set aside more than the limit, the excess generally must be included in your income for that year, unless you have an excess deferral of a designated Roth contribution. 1040ez form booklet See Publication 525 for a discussion of the tax treatment of excess deferrals. 1040ez form booklet Catch-up contributions. 1040ez form booklet   You may be allowed catch-up contributions (additional elective deferral) if you are age 50 or older by the end of your tax year. 1040ez form booklet Stock Options If you receive a nonstatutory option to buy or sell stock or other property as payment for your services, you usually will have income when you receive the option, when you exercise the option (use it to buy or sell the stock or other property), or when you sell or otherwise dispose of the option. 1040ez form booklet However, if your option is a statutory stock option, you will not have any income until you sell or exchange your stock. 1040ez form booklet Your employer can tell you which kind of option you hold. 1040ez form booklet For more information, see Publication 525. 1040ez form booklet Restricted Property In most cases, if you receive property for your services, you must include its fair market value in your income in the year you receive the property. 1040ez form booklet However, if you receive stock or other property that has certain restrictions that affect its value, you do not include the value of the property in your income until it has substantially vested. 1040ez form booklet (You can choose to include the value of the property in your income in the year it is transferred to you. 1040ez form booklet ) For more information, see Restricted Property in Publication 525. 1040ez form booklet Dividends received on restricted stock. 1040ez form booklet   Dividends you receive on restricted stock are treated as compensation and not as dividend income. 1040ez form booklet Your employer should include these payments on your Form W-2. 1040ez form booklet Stock you chose to include in income. 1040ez form booklet   Dividends you receive on restricted stock you chose to include in your income in the year transferred are treated the same as any other dividends. 1040ez form booklet Report them on your return as dividends. 1040ez form booklet For a discussion of dividends, see chapter 8. 1040ez form booklet    For information on how to treat dividends reported on both your Form W-2 and Form 1099-DIV, see Dividends received on restricted stock in Publication 525. 1040ez form booklet Special Rules for Certain Employees This section deals with special rules for people in certain types of employment: members of the clergy, members of religious orders, people working for foreign employers, military personnel, and volunteers. 1040ez form booklet Clergy Generally, if you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, masses, etc. 1040ez form booklet , in addition to your salary. 1040ez form booklet If the offering is made to the religious institution, it is not taxable to you. 1040ez form booklet If you are a member of a religious organization and you give your outside earnings to the religious organization, you still must include the earnings in your income. 1040ez form booklet However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. 1040ez form booklet See chapter 24. 1040ez form booklet Pension. 1040ez form booklet    A pension or retirement pay for a member of the clergy usually is treated as any other pension or annuity. 1040ez form booklet It must be reported on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 1040ez form booklet Housing. 1040ez form booklet    Special rules for housing apply to members of the clergy. 1040ez form booklet Under these rules, you do not include in your income the rental value of a home (including utilities) or a designated housing allowance provided to you as part of your pay. 1040ez form booklet However, the exclusion cannot be more than the reasonable pay for your service. 1040ez form booklet If you pay for the utilities, you can exclude any allowance designated for utility cost, up to your actual cost. 1040ez form booklet The home or allowance must be provided as compensation for your services as an ordained, licensed, or commissioned minister. 1040ez form booklet However, you must include the rental value of the home or the housing allowance as earnings from self-employment on Schedule SE (Form 1040) if you are subject to the self-employment tax. 1040ez form booklet For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 1040ez form booklet Members of Religious Orders If you are a member of a religious order who has taken a vow of poverty, how you treat earnings that you renounce and turn over to the order depends on whether your services are performed for the order. 1040ez form booklet Services performed for the order. 1040ez form booklet   If you are performing the services as an agent of the order in the exercise of duties required by the order, do not include in your income the amounts turned over to the order. 1040ez form booklet   If your order directs you to perform services for another agency of the supervising church or an associated institution, you are considered to be performing the services as an agent of the order. 1040ez form booklet Any wages you earn as an agent of an order that you turn over to the order are not included in your income. 1040ez form booklet Example. 1040ez form booklet You are a member of a church order and have taken a vow of poverty. 1040ez form booklet You renounce any claims to your earnings and turn over to the order any salaries or wages you earn. 1040ez form booklet You are a registered nurse, so your order assigns you to work in a hospital that is an associated institution of the church. 1040ez form booklet However, you remain under the general direction and control of the order. 1040ez form booklet You are considered to be an agent of the order and any wages you earn at the hospital that you turn over to your order are not included in your income. 1040ez form booklet Services performed outside the order. 1040ez form booklet   If you are directed to work outside the order, your services are not an exercise of duties required by the order unless they meet both of the following requirements: They are the kind of services that are ordinarily the duties of members of the order. 1040ez form booklet They are part of the duties that you must exercise for, or on behalf of, the religious order as its agent. 1040ez form booklet If you are an employee of a third party, the services you perform for the third party will not be considered directed or required of you by the order. 1040ez form booklet Amounts you receive for these services are included in your income, even if you have taken a vow of poverty. 1040ez form booklet Example. 1040ez form booklet Mark Brown is a member of a religious order and has taken a vow of poverty. 1040ez form booklet He renounces all claims to his earnings and turns over his earnings to the order. 1040ez form booklet Mark is a schoolteacher. 1040ez form booklet He was instructed by the superiors of the order to get a job with a private tax-exempt school. 1040ez form booklet Mark became an employee of the school, and, at his request, the school made the salary payments directly to the order. 1040ez form booklet Because Mark is an employee of the school, he is performing services for the school rather than as an agent of the order. 1040ez form booklet The wages Mark earns working for the school are included in his income. 1040ez form booklet Foreign Employer Special rules apply if you work for a foreign employer. 1040ez form booklet U. 1040ez form booklet S. 1040ez form booklet citizen. 1040ez form booklet   If you are a U. 1040ez form booklet S. 1040ez form booklet citizen who works in the United States for a foreign government, an international organization, a foreign embassy, or any foreign employer, you must include your salary in your income. 1040ez form booklet Social security and Medicare taxes. 1040ez form booklet   You are exempt from social security and Medicare employee taxes if you are employed in the United States by an international organization or a foreign government. 1040ez form booklet However, you must pay self-employment tax on your earnings from services performed in the United States, even though you are not self-employed. 1040ez form booklet This rule also applies if you are an employee of a qualifying wholly owned instrumentality of a foreign government. 1040ez form booklet Employees of international organizations or foreign governments. 1040ez form booklet   Your compensation for official services to an international organization is exempt from federal income tax if you are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). 1040ez form booklet   Your compensation for official services to a foreign government is exempt from federal income tax if all of the following are true. 1040ez form booklet You are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). 1040ez form booklet Your work is like the work done by employees of the United States in foreign countries. 1040ez form booklet The foreign government gives an equal exemption to employees of the United States in its country. 1040ez form booklet Waiver of alien status. 1040ez form booklet   If you are an alien who works for a foreign government or international organization and you file a waiver under section 247(b) of the Immigration and Nationality Act to keep your immigrant status, different rules may apply. 1040ez form booklet See Foreign Employer in Publication 525. 1040ez form booklet Employment abroad. 1040ez form booklet   For information on the tax treatment of income earned abroad, see Publication 54. 1040ez form booklet Military Payments you receive as a member of a military service generally are taxed as wages except for retirement pay, which is taxed as a pension. 1040ez form booklet Allowances generally are not taxed. 1040ez form booklet For more information on the tax treatment of military allowances and benefits, see Publication 3, Armed Forces' Tax Guide. 1040ez form booklet Differential wage payments. 1040ez form booklet   Any payments made to you by an employer during the time you are performing service in the uniformed services are treated as compensation. 1040ez form booklet These wages are subject to income tax withholding and are reported on a Form W-2. 1040ez form booklet See the discussion under Miscellaneous Compensation , earlier. 1040ez form booklet Military retirement pay. 1040ez form booklet   If your retirement pay is based on age or length of service, it is taxable and must be included in your income as a pension on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 1040ez form booklet Do not include in your income the amount of any reduction in retirement or retainer pay to provide a survivor annuity for your spouse or children under the Retired Serviceman's Family Protection Plan or the Survivor Benefit Plan. 1040ez form booklet   For more detailed discussion of survivor annuities, see chapter 10. 1040ez form booklet Disability. 1040ez form booklet   If you are retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later. 1040ez form booklet Veterans' benefits. 1040ez form booklet   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA). 1040ez form booklet The following amounts paid to veterans or their families are not taxable. 1040ez form booklet Education, training, and subsistence allowances. 1040ez form booklet Disability compensation and pension payments for disabilities paid either to veterans or their families. 1040ez form booklet Grants for homes designed for wheelchair living. 1040ez form booklet Grants for motor vehicles for veterans who lost their sight or the use of their limbs. 1040ez form booklet Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death. 1040ez form booklet Interest on insurance dividends you leave on deposit with the VA. 1040ez form booklet Benefits under a dependent-care assistance program. 1040ez form booklet The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001. 1040ez form booklet Payments made under the compensated work therapy program. 1040ez form booklet Any bonus payment by a state or political subdivision because of service in a combat zone. 1040ez form booklet Volunteers The tax treatment of amounts you receive as a volunteer worker for the Peace Corps or similar agency is covered in the following discussions. 1040ez form booklet Peace Corps. 1040ez form booklet   Living allowances you receive as a Peace Corps volunteer or volunteer leader for housing, utilities, household supplies, food, and clothing are exempt from tax. 1040ez form booklet Taxable allowances. 1040ez form booklet   The following allowances must be included in your income and reported as wages: Allowances paid to your spouse and minor children while you are a volunteer leader training in the United States. 1040ez form booklet Living allowances designated by the Director of the Peace Corps as basic compensation. 1040ez form booklet These are allowances for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. 1040ez form booklet Leave allowances. 1040ez form booklet Readjustment allowances or termination payments. 1040ez form booklet These are considered received by you when credited to your account. 1040ez form booklet Example. 1040ez form booklet Gary Carpenter, a Peace Corps volunteer, gets $175 a month as a readjustment allowance during his period of service, to be paid to him in a lump sum at the end of his tour of duty. 1040ez form booklet Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. 1040ez form booklet Volunteers in Service to America (VISTA). 1040ez form booklet   If you are a VISTA volunteer, you must include meal and lodging allowances paid to you in your income as wages. 1040ez form booklet National Senior Services Corps programs. 1040ez form booklet   Do not include in your income amounts you receive for supportive services or reimbursements for out-of-pocket expenses from the following programs. 1040ez form booklet Retired Senior Volunteer Program (RSVP). 1040ez form booklet Foster Grandparent Program. 1040ez form booklet Senior Companion Program. 1040ez form booklet Service Corps of Retired Executives (SCORE). 1040ez form booklet   If you receive amounts for supportive services or reimbursements for out-of-pocket expenses from SCORE, do not include these amounts in income. 1040ez form booklet Volunteer tax counseling. 1040ez form booklet   Do not include in your income any reimbursements you receive for transportation, meals, and other expenses you have in training for, or actually providing, volunteer federal income tax counseling for the elderly (TCE). 1040ez form booklet   You can deduct as a charitable contribution your unreimbursed out-of-pocket expenses in taking part in the volunteer income tax assistance (VITA) program. 1040ez form booklet See chapter 24. 1040ez form booklet Sickness and Injury Benefits This section discusses sickness and injury benefits including disability pensions, long-term care insurance contracts, workers' compensation, and other benefits. 1040ez form booklet In most cases, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. 1040ez form booklet If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. 1040ez form booklet However, certain payments may not be taxable to you. 1040ez form booklet Your employer should be able to give you specific details about your pension plan and tell you the amount you paid for your disability pension. 1040ez form booklet In addition to disability pensions and annuities, you may be receiving other payments for sickness and injury. 1040ez form booklet Do not report as income any amounts paid to reimburse you for medical expenses you incurred after the plan was established. 1040ez form booklet Cost paid by you. 1040ez form booklet   If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. 1040ez form booklet If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. 1040ez form booklet See Reimbursement in a later year in chapter 21. 1040ez form booklet Cafeteria plans. 1040ez form booklet   In most cases, if you are covered by an accident or health insurance plan through a cafeteria plan, and the amount of the insurance premiums was not included in your income, you are not considered to have paid the premiums and you must include any benefits you receive in your income. 1040ez form booklet If the amount of the premiums was included in your income, you are considered to have paid the premiums, and any benefits you receive are not taxable. 1040ez form booklet Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. 1040ez form booklet You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A, until you reach minimum retirement age. 1040ez form booklet Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 1040ez form booklet You may be entitled to a tax credit if you were permanently and totally disabled when you retired. 1040ez form booklet For information on this credit and the definition of permanent and total disability, see chapter 33. 1040ez form booklet Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 1040ez form booklet Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 1040ez form booklet The rules for reporting pensions are explained in How To Report in chapter 10. 1040ez form booklet For information on disability payments from a governmental program provided as a substitute for unemployment compensation, see chapter 12. 1040ez form booklet Retirement and profit-sharing plans. 1040ez form booklet   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. 1040ez form booklet The payments must be reported as a pension or annuity. 1040ez form booklet For more information on pensions, see chapter 10. 1040ez form booklet Accrued leave payment. 1040ez form booklet   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 1040ez form booklet The payment is not a disability payment. 1040ez form booklet Include it in your income in the tax year you receive it. 1040ez form booklet Military and Government Disability Pensions Certain military and government disability pensions are not taxable. 1040ez form booklet Service-connected disability. 1040ez form booklet   You may be able to exclude from income amounts you receive as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service in one of the following government services. 1040ez form booklet The armed forces of any country. 1040ez form booklet The National Oceanic and Atmospheric Administration. 1040ez form booklet The Public Health Service. 1040ez form booklet The Foreign Service. 1040ez form booklet Conditions for exclusion. 1040ez form booklet   Do not include the disability payments in your income if any of the following conditions apply. 1040ez form booklet You were entitled to receive a disability payment before September 25, 1975. 1040ez form booklet You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975. 1040ez form booklet You receive the disability payments for a combat-related injury. 1040ez form booklet This is a personal injury or sickness that Results directly from armed conflict, Takes place while you are engaged in extra-hazardous service, Takes place under conditions simulating war, including training exercises such as maneuvers, or Is caused by an instrumentality of war. 1040ez form booklet You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. 1040ez form booklet Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA. 1040ez form booklet Pension based on years of service. 1040ez form booklet   If you receive a disability pension based on years of service, in most cases you must include it in your income. 1040ez form booklet However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), do not include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. 1040ez form booklet You must include the rest of your pension in your income. 1040ez form booklet Retroactive VA determination. 1040ez form booklet   If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive. 1040ez form booklet You can claim a refund of any tax paid on the excludable amount (subject to the statute of limitations) by filing an amended return on Form 1040X for each previous year during the retroactive period. 1040ez form booklet You must include with each Form 1040X a copy of the official VA Determination letter granting the retroactive benefit. 1040ez form booklet The letter must show the amount withheld and the effective date of the benefit. 1040ez form booklet   If you receive a lump-sum disability severance payment and are later awarded VA disability benefits, exclude 100% of the severance benefit from your income. 1040ez form booklet However, you must include in your income any lump-sum readjustment or other nondisability severance payment you received on release from active duty, even if you are later given a retroactive disability rating by the VA. 1040ez form booklet Special statute of limitations. 1040ez form booklet   In most cases, under the statute of limitations a claim for credit or refund must be filed within 3 years from the time a return was filed. 1040ez form booklet However, if you receive a retroactive service-connected disability rating determination, the statute of limitations is extended by a 1-year period beginning on the date of the determination. 1040ez form booklet This 1-year extended period applies to claims for credit or refund filed after June 17, 2008, and does not apply to any tax year that began more than 5 years before the date of the determination. 1040ez form booklet Example. 1040ez form booklet You retired in 2007 and receive a pension based on your years of service. 1040ez form booklet On August 1, 2013, you receive a determination of service-connected disability retroactive to 2007. 1040ez form booklet Generally, you could claim a refund for the taxes paid on your pension for 2010, 2011, and 2012. 1040ez form booklet However, under the special limitation period, you can also file a claim for 2009 as long as you file the claim by August 1, 2014. 1040ez form booklet You cannot file a claim for 2007 and 2008 because those tax years began more than 5 years before the determination. 1040ez form booklet Terrorist attack or military action. 1040ez form booklet   Do not include in your income disability payments you receive for injuries resulting directly from a terrorist or military action. 1040ez form booklet Long-Term Care Insurance Contracts Long-term care insurance contracts in most cases are treated as accident and health insurance contracts. 1040ez form booklet Amounts you receive from them (other than policyholder dividends or premium refunds) in most cases are excludable from income as amounts received for personal injury or sickness. 1040ez form booklet To claim an exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract, you must file Form 8853 with your return. 1040ez form booklet A long-term care insurance contract is an insurance contract that only provides coverage for qualified long-term care services. 1040ez form booklet The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits, and In most cases, not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. 1040ez form booklet Qualified long-term care services. 1040ez form booklet   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance and personal care services, and Required by a chronically ill individual and provided pursuant to a plan of care as prescribed by a licensed health care practitioner. 1040ez form booklet Chronically ill individual. 1040ez form booklet   A chronically ill individual is one who has been certified by a licensed health care practitioner within the previous 12 months as one of the following: An individual who, for at least 90 days, is unable to perform at least two activities of daily living without substantial assistance due to loss of functional capacity. 1040ez form booklet Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. 1040ez form booklet An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 1040ez form booklet Limit on exclusion. 1040ez form booklet   You generally can exclude from gross income up to $320 a day for 2013. 1040ez form booklet See Limit on exclusion, under Long-Term Care Insurance Contracts, under Sickness and Injury Benefits in Publication 525 for more information. 1040ez form booklet Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. 1040ez form booklet The exemption also applies to your survivors. 1040ez form booklet The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. 1040ez form booklet If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 1040ez form booklet For more information, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. 1040ez form booklet Return to work. 1040ez form booklet    If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. 1040ez form booklet Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. 1040ez form booklet Railroad sick pay. 1040ez form booklet    Payments you receive as sick pay under the Railroad Unemployment Insurance Act are taxable and you must include them in your income. 1040ez form booklet However, do not include them in your income if they are for an on-the-job injury. 1040ez form booklet   If you received income because of a disability, see Disability Pensions , earlier. 1040ez form booklet Federal Employees' Compensation Act (FECA). 1040ez form booklet   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. 1040ez form booklet However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. 1040ez form booklet Report this income on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040-EZ. 1040ez form booklet Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. 1040ez form booklet    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 1040ez form booklet For a discussion of the taxability of these benefits, see Social security and equivalent railroad retirement benefits under Other Income, in Publication 525. 1040ez form booklet    You can deduct the amount you spend to buy back sick leave for an earlier year to be eligible for nontaxable FECA benefits for that period. 1040ez form booklet It is a miscellaneous deduction subject to the 2%-of-AGI limit on Schedule A (Form 1040). 1040ez form booklet If you buy back sick leave in the same year you used it, the amount reduces your taxable sick leave pay. 1040ez form booklet Do not deduct it separately. 1040ez form booklet Other compensation. 1040ez form booklet   Many other amounts you receive as compensation for sickness or injury are not taxable. 1040ez form booklet These include the following amounts. 1040ez form booklet Compensatory damages you receive for physical injury or physical sickness, whether paid in a lump sum or in periodic payments. 1040ez form booklet Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. 1040ez form booklet Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. 1040ez form booklet Compensation you receive for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. 1040ez form booklet This compensation must be based only on the injury and not on the period of your absence from work. 1040ez form booklet These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. 1040ez form booklet Reimbursement for medical care. 1040ez form booklet    A reimbursement for medical care is generally not taxable. 1040ez form booklet However, it may reduce your medical expense deduction. 1040ez form booklet For more information, see chapter 21. 1040ez form booklet Prev  Up  Next   Home   More Online Publications