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1040x Amended Return Form

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1040x Amended Return Form

1040x amended return form Index Symbols $10,000, pagos en efectivo en exceso de, Introducción A Asistencia (see Ayuda con los impuestos) Ayuda (see Ayuda con los impuestos) Ayuda con los impuestos, Cómo Obtener Ayuda con los Impuestos D Defensor del Contribuyente, Servicio del Defensor del Contribuyente. 1040x amended return form F Formulario, ¿Quién tiene que presentar el Formulario 8300-SP? 8300-SP, ¿Quién tiene que presentar el Formulario 8300-SP? I Información adicional (see Ayuda con los impuestos) Informe de pagos en efectivo en exceso de $10,000, Introducción P Publicaciones (see Ayuda con los impuestos) Q Qué Hay de Nuevo, Qué Hay de Nuevo S Servicios gratuitos para los impuestos, Servicios gratuitos para los impuestos. 1040x amended return form T Transacciones en efectivo en exceso de $10,000, Introducción Prev  Up     Home   More Online Publications
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Understanding Your CP114 Notice

We made changes to your excise tax return because we believe there was a miscalculation. As a result of these changes, there is an overpayment on your account.


What you need to do

  • Read your notice carefully — it explains the changes to your tax account.
  • Compare the figures on the notice with your excise tax return.
  • If you disagree with our change(s), contact us within 10 days of the date of your notice.
  • If you agree with our change(s), correct the copy of your excise tax return that you kept for your records.
  • You should receive a refund of any amount overpaid shortly if you haven’t already and you owe no additional amounts we are required to collect. No action is required of you.

You may want to

  • Download copies of the following materials (if they weren’t included with your notice).

 


Answers to Common Questions

Q. How can I find out what caused my tax return to change?

A. Please contact us at the number listed on your notice for specific information about your tax return.

Q. What should I do if I disagree with the changes you made?

A. If you disagree, contact us at the toll free number listed on the top right corner of your notice or respond in writing within 10 days of the date of the notice. If your response provides us with additional information that justifies a reversal of the change, we’ll reverse the change we made to your account. If you agree with the change, update your records. No further action is required.

Q. Will I receive a refund of the amount overpaid?

A. Yes, provided you owe no other outstanding liabilities which we are required to collect and the amount to be refunded is $1 or more.

 


Tips for next year

Consider filing your excise taxes electronically. Filing online can help you to avoid mistakes and find credits and deductions for which you may qualify. Learn more about e-file.

Page Last Reviewed or Updated: 23-Jan-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The 1040x Amended Return Form

1040x amended return form 6. 1040x amended return form   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. 1040x amended return form  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). 1040x amended return form For more information, see the retiree drug subsidy frequently asked questions on IRS. 1040x amended return form gov. 1040x amended return form Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. 1040x amended return form However, you may have to capitalize certain insurance costs under the uniform capitalization rules. 1040x amended return form For more information, see Capitalized Premiums , later. 1040x amended return form Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. 1040x amended return form S. 1040x amended return form Individual Income Tax Return See chapter 12 for information about getting publications and forms. 1040x amended return form Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. 1040x amended return form Insurance that covers fire, storm, theft, accident, or similar losses. 1040x amended return form Credit insurance that covers losses from business bad debts. 1040x amended return form Group hospitalization and medical insurance for employees, including long-term care insurance. 1040x amended return form If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. 1040x amended return form If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. 1040x amended return form See Publication 15-B. 1040x amended return form Liability insurance. 1040x amended return form Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. 1040x amended return form Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. 1040x amended return form If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. 1040x amended return form If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. 1040x amended return form Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. 1040x amended return form Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. 1040x amended return form Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. 1040x amended return form If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. 1040x amended return form If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. 1040x amended return form Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. 1040x amended return form Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. 1040x amended return form Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. 1040x amended return form The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. 1040x amended return form A child includes your son, daughter, stepchild, adopted child, or foster child. 1040x amended return form A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 1040x amended return form One of the following statements must be true. 1040x amended return form You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. 1040x amended return form You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. 1040x amended return form , box 14, code A. 1040x amended return form You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. 1040x amended return form You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. 1040x amended return form Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. 1040x amended return form The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. 1040x amended return form For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual. 1040x amended return form For partners, a policy can be either in the name of the partnership or in the name of the partner. 1040x amended return form You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. 1040x amended return form However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. 1040x amended return form Otherwise, the insurance plan will not be considered to be established under your business. 1040x amended return form For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. 1040x amended return form You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. 1040x amended return form However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. 1040x amended return form Otherwise, the insurance plan will not be considered to be established under your business. 1040x amended return form Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. 1040x amended return form If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. 1040x amended return form For more information, see Form 1040X, Amended U. 1040x amended return form S. 1040x amended return form Individual Income Tax Return. 1040x amended return form Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. 1040x amended return form Take the deduction on Form 1040, line 29. 1040x amended return form Qualified long-term care insurance. 1040x amended return form   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. 1040x amended return form But, for each person covered, you can include only the smaller of the following amounts. 1040x amended return form The amount paid for that person. 1040x amended return form The amount shown below. 1040x amended return form Use the person's age at the end of the tax year. 1040x amended return form Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. 1040x amended return form   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. 1040x amended return form The contract must meet all the following requirements. 1040x amended return form It must be guaranteed renewable. 1040x amended return form It must 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. 1040x amended return form It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. 1040x amended return form It generally must 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. 1040x amended return form Qualified long-term care services. 1040x amended return form   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. 1040x amended return form The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. 1040x amended return form Worksheet 6-A. 1040x amended return form Self-Employed Health Insurance Deduction Worksheet Note. 1040x amended return form Use a separate worksheet for each trade or business under which an insurance plan is established. 1040x amended return form 1. 1040x amended return form Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. 1040x amended return form Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. 1040x amended return form But do not include the following. 1040x amended return form   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. 1040x amended return form Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. 1040x amended return form Any amounts you included on Form 8885, line 4. 1040x amended return form Any qualified health insurance premiums you paid to “U. 1040x amended return form S. 1040x amended return form Treasury-HCTC. 1040x amended return form ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. 1040x amended return form Any payments for qualified long-term care insurance (see line 2) 1. 1040x amended return form   2. 1040x amended return form For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. 1040x amended return form       a) Total payments made for that person during the year. 1040x amended return form       b) The amount shown below. 1040x amended return form Use the person's age at the end of the tax year. 1040x amended return form         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. 1040x amended return form If more than one person is covered, figure separately the amount to enter for each person. 1040x amended return form Then enter the total of those amounts 2. 1040x amended return form   3. 1040x amended return form Add lines 1 and 2 3. 1040x amended return form   4. 1040x amended return form Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. 1040x amended return form Do not include Conservation Reserve Program payments exempt from self-employment tax. 1040x amended return form If the business is an S corporation, skip to line 11 4. 1040x amended return form   5. 1040x amended return form Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. 1040x amended return form Do not include Conservation Reserve Program payments exempt from self-employment tax. 1040x amended return form See the Instructions for Schedule SE (Form 1040). 1040x amended return form Do not include any net losses shown on these schedules. 1040x amended return form 5. 1040x amended return form   6. 1040x amended return form Divide line 4 by line 5 6. 1040x amended return form   7. 1040x amended return form Multiply Form 1040, line 27, by the percentage on line 6 7. 1040x amended return form   8. 1040x amended return form Subtract line 7 from line 4 8. 1040x amended return form   9. 1040x amended return form Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. 1040x amended return form   10. 1040x amended return form Subtract line 9 from line 8 10. 1040x amended return form   11. 1040x amended return form Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. 1040x amended return form   12. 1040x amended return form Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. 1040x amended return form   13. 1040x amended return form Subtract line 12 from line 10 or 11, whichever applies 13. 1040x amended return form   14. 1040x amended return form Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. 1040x amended return form Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). 1040x amended return form 14. 1040x amended return form   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. 1040x amended return form Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. 1040x amended return form * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. 1040x amended return form However, it does not include capital gain income. 1040x amended return form Chronically ill individual. 1040x amended return form   A chronically ill individual is a person who has been certified as one of the following. 1040x amended return form An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. 1040x amended return form Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. 1040x amended return form An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 1040x amended return form The certification must have been made by a licensed health care practitioner within the previous 12 months. 1040x amended return form Benefits received. 1040x amended return form   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. 1040x amended return form Other coverage. 1040x amended return form   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. 1040x amended return form In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. 1040x amended return form   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. 1040x amended return form However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. 1040x amended return form Effect on itemized deductions. 1040x amended return form   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. 1040x amended return form Effect on self-employment tax. 1040x amended return form   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. 1040x amended return form For more information, see Schedule SE (Form 1040). 1040x amended return form How to figure the deduction. 1040x amended return form   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. 1040x amended return form However, if any of the following apply, you must use Worksheet 6-A in this chapter. 1040x amended return form You had more than one source of income subject to self-employment tax. 1040x amended return form You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. 1040x amended return form You are using amounts paid for qualified long-term care insurance to figure the deduction. 1040x amended return form If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. 1040x amended return form Health coverage tax credit. 1040x amended return form   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. 1040x amended return form Use Form 8885 to figure the amount, if any, of this credit. 1040x amended return form   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. 1040x amended return form Any amounts you included on Form 8885, line 4. 1040x amended return form Any qualified health insurance premiums you paid to “U. 1040x amended return form S. 1040x amended return form Treasury-HCTC. 1040x amended return form ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. 1040x amended return form More than one health plan and business. 1040x amended return form   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. 1040x amended return form Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). 1040x amended return form For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. 1040x amended return form Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. 1040x amended return form Self-insurance reserve funds. 1040x amended return form You cannot deduct amounts credited to a reserve set up for self-insurance. 1040x amended return form This applies even if you cannot get business insurance coverage for certain business risks. 1040x amended return form However, your actual losses may be deductible. 1040x amended return form See Publication 547. 1040x amended return form Loss of earnings. 1040x amended return form You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. 1040x amended return form However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. 1040x amended return form Certain life insurance and annuities. 1040x amended return form For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. 1040x amended return form You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. 1040x amended return form A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. 1040x amended return form For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. 1040x amended return form The disallowance applies without regard to whom the policy covers. 1040x amended return form Partners. 1040x amended return form If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. 1040x amended return form You cannot deduct the insurance premiums. 1040x amended return form Insurance to secure a loan. 1040x amended return form If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. 1040x amended return form Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. 1040x amended return form In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. 1040x amended return form Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. 1040x amended return form Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. 1040x amended return form You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. 1040x amended return form Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. 1040x amended return form Uniform capitalization rules. 1040x amended return form   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. 1040x amended return form Produce real property or tangible personal property. 1040x amended return form For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. 1040x amended return form Acquire property for resale. 1040x amended return form However, these rules do not apply to the following property. 1040x amended return form Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. 1040x amended return form Property you produce if you meet either of the following conditions. 1040x amended return form Your indirect costs of producing the property are $200,000 or less. 1040x amended return form You use the cash method of accounting and do not account for inventories. 1040x amended return form More information. 1040x amended return form   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. 1040x amended return form When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. 1040x amended return form Cash method. 1040x amended return form   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. 1040x amended return form However, see Prepayment , later. 1040x amended return form Accrual method. 1040x amended return form   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. 1040x amended return form In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). 1040x amended return form For more information about the accrual method of accounting, see chapter 1. 1040x amended return form For information about the exception for recurring items, see Publication 538. 1040x amended return form Prepayment. 1040x amended return form   You cannot deduct expenses in advance, even if you pay them in advance. 1040x amended return form This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. 1040x amended return form   Expenses such as insurance are generally allocable to a period of time. 1040x amended return form You can deduct insurance expenses for the year to which they are allocable. 1040x amended return form Example. 1040x amended return form In 2013, you signed a 3-year insurance contract. 1040x amended return form Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. 1040x amended return form You can deduct in 2014 and 2015 the premium allocable to those years. 1040x amended return form Dividends received. 1040x amended return form   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. 1040x amended return form For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. 1040x amended return form Prev  Up  Next   Home   More Online Publications