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2010 1040 Tax Forms

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2010 1040 Tax Forms

2010 1040 tax forms 2. 2010 1040 tax forms   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. 2010 1040 tax forms Surviving spouse. 2010 1040 tax forms Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. 2010 1040 tax forms Payments from a state fund for victims of crime. 2010 1040 tax forms Home Affordable Modification Program (HAMP). 2010 1040 tax forms Mortgage assistance payments. 2010 1040 tax forms Payments to reduce cost of winter energy use. 2010 1040 tax forms Nutrition Program for the Elderly. 2010 1040 tax forms Reemployment Trade Adjustment Assistance (RTAA). 2010 1040 tax forms Generally, income is taxable unless it is specifically exempt (not taxed) by law. 2010 1040 tax forms Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. 2010 1040 tax forms Under special provisions of the law, certain items are partially or fully exempt from tax. 2010 1040 tax forms Provisions that are of special interest to older taxpayers are discussed in this chapter. 2010 1040 tax forms Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. 2010 1040 tax forms In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. 2010 1040 tax forms You need not receive the compensation in cash for it to be taxable. 2010 1040 tax forms Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. 2010 1040 tax forms Volunteer work. 2010 1040 tax forms   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. 2010 1040 tax forms Retired Senior Volunteer Program (RSVP). 2010 1040 tax forms Foster Grandparent Program. 2010 1040 tax forms Senior Companion Program. 2010 1040 tax forms Service Corps of Retired Executives (SCORE). 2010 1040 tax forms Unemployment compensation. 2010 1040 tax forms   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. 2010 1040 tax forms More information. 2010 1040 tax forms   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. 2010 1040 tax forms Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. 2010 1040 tax forms A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. 2010 1040 tax forms A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. 2010 1040 tax forms A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. 2010 1040 tax forms More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. 2010 1040 tax forms Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. 2010 1040 tax forms Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. 2010 1040 tax forms These are discussed in Publication 590. 2010 1040 tax forms If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. 2010 1040 tax forms If you do not file Form 8606 with your return, you may have to pay a $50 penalty. 2010 1040 tax forms Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 2010 1040 tax forms Early distributions. 2010 1040 tax forms   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. 2010 1040 tax forms You must include early distributions of taxable amounts in your gross income. 2010 1040 tax forms These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. 2010 1040 tax forms For purposes of the additional 10% tax, an IRA is a qualified retirement plan. 2010 1040 tax forms For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. 2010 1040 tax forms After age 59½ and before age 70½. 2010 1040 tax forms   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. 2010 1040 tax forms Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. 2010 1040 tax forms Required distributions. 2010 1040 tax forms   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. 2010 1040 tax forms See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. 2010 1040 tax forms If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. 2010 1040 tax forms For purposes of the 50% excise tax, an IRA is a qualified retirement plan. 2010 1040 tax forms For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. 2010 1040 tax forms See also Excess Accumulations (Insufficient Distributions) in Publication 590. 2010 1040 tax forms Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. 2010 1040 tax forms However, see Insurance Premiums for Retired Public Safety Officers , later. 2010 1040 tax forms If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). 2010 1040 tax forms This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. 2010 1040 tax forms The rest of each payment is taxable. 2010 1040 tax forms However, see Insurance Premiums for Retired Public Safety Officers , later. 2010 1040 tax forms You figure the tax-free part of the payment using one of the following methods. 2010 1040 tax forms Simplified Method. 2010 1040 tax forms You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). 2010 1040 tax forms You cannot use this method if your annuity is paid under a nonqualified plan. 2010 1040 tax forms General Rule. 2010 1040 tax forms You must use this method if your annuity is paid under a nonqualified plan. 2010 1040 tax forms You generally cannot use this method if your annuity is paid under a qualified plan. 2010 1040 tax forms Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. 2010 1040 tax forms You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. 2010 1040 tax forms Exclusion limit. 2010 1040 tax forms   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. 2010 1040 tax forms Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. 2010 1040 tax forms This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. 2010 1040 tax forms   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. 2010 1040 tax forms If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. 2010 1040 tax forms The total exclusion may be more than your cost. 2010 1040 tax forms Cost. 2010 1040 tax forms   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). 2010 1040 tax forms Your total cost in the plan includes everything that you paid. 2010 1040 tax forms It also includes amounts your employer contributed that were taxable to you when paid. 2010 1040 tax forms However, see Foreign employment contributions , later. 2010 1040 tax forms   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. 2010 1040 tax forms   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. 2010 1040 tax forms    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2010 1040 tax forms , that you receive. 2010 1040 tax forms Foreign employment contributions. 2010 1040 tax forms   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. 2010 1040 tax forms For details, see Foreign employment contributions in Publication 575. 2010 1040 tax forms Withholding. 2010 1040 tax forms   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. 2010 1040 tax forms However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. 2010 1040 tax forms (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. 2010 1040 tax forms ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. 2010 1040 tax forms   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. 2010 1040 tax forms Simplified Method. 2010 1040 tax forms   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. 2010 1040 tax forms For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. 2010 1040 tax forms For any other annuity, this number is the number of monthly annuity payments under the contract. 2010 1040 tax forms Who must use the Simplified Method. 2010 1040 tax forms   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). 2010 1040 tax forms   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. 2010 1040 tax forms If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. 2010 1040 tax forms Guaranteed payments. 2010 1040 tax forms   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. 2010 1040 tax forms If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. 2010 1040 tax forms Who cannot use the Simplified Method. 2010 1040 tax forms   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). 2010 1040 tax forms   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. 2010 1040 tax forms If you did not have to use the General Rule, you could have chosen to use it. 2010 1040 tax forms You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. 2010 1040 tax forms   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. 2010 1040 tax forms   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. 2010 1040 tax forms Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. 2010 1040 tax forms   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. 2010 1040 tax forms How to use the Simplified Method. 2010 1040 tax forms   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. 2010 1040 tax forms Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. 2010 1040 tax forms   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. 2010 1040 tax forms How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. 2010 1040 tax forms For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. 2010 1040 tax forms    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. 2010 1040 tax forms Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. 2010 1040 tax forms Single-life annuity. 2010 1040 tax forms   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010 1040 tax forms Enter on line 3 the number shown for your age on your annuity starting date. 2010 1040 tax forms This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2010 1040 tax forms Multiple-lives annuity. 2010 1040 tax forms   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010 1040 tax forms Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. 2010 1040 tax forms For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. 2010 1040 tax forms For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. 2010 1040 tax forms Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. 2010 1040 tax forms   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. 2010 1040 tax forms Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. 2010 1040 tax forms This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2010 1040 tax forms Fixed-period annuities. 2010 1040 tax forms   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. 2010 1040 tax forms Line 6. 2010 1040 tax forms   The amount on line 6 should include all amounts that could have been recovered in prior years. 2010 1040 tax forms If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. 2010 1040 tax forms    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. 2010 1040 tax forms Example. 2010 1040 tax forms Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. 2010 1040 tax forms Bill's annuity starting date is January 1, 2013. 2010 1040 tax forms The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. 2010 1040 tax forms Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. 2010 1040 tax forms Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. 2010 1040 tax forms Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. 2010 1040 tax forms See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. 2010 1040 tax forms You can find a blank version of this worksheet in Publication 575. 2010 1040 tax forms (The references in the illustrated worksheet are to sections in Publication 575). 2010 1040 tax forms His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. 2010 1040 tax forms Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). 2010 1040 tax forms Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. 2010 1040 tax forms The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. 2010 1040 tax forms If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. 2010 1040 tax forms This deduction is not subject to the 2%-of-adjusted-gross-income limit. 2010 1040 tax forms Worksheet 2-A. 2010 1040 tax forms Simplified Method Worksheet—Illustrated 1. 2010 1040 tax forms Enter the total pension or annuity payments received this year. 2010 1040 tax forms Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 2010 1040 tax forms $ 14,400 2. 2010 1040 tax forms Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. 2010 1040 tax forms 31,000   Note. 2010 1040 tax forms If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 2010 1040 tax forms Otherwise, go to line 3. 2010 1040 tax forms     3. 2010 1040 tax forms Enter the appropriate number from Table 1 below. 2010 1040 tax forms But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. 2010 1040 tax forms 310 4. 2010 1040 tax forms Divide line 2 by the number on line 3 4. 2010 1040 tax forms 100 5. 2010 1040 tax forms Multiply line 4 by the number of months for which this year's payments were made. 2010 1040 tax forms If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2010 1040 tax forms Otherwise, go to line 6 5. 2010 1040 tax forms 1,200 6. 2010 1040 tax forms Enter any amount previously recovered tax free in years after 1986. 2010 1040 tax forms This is the amount shown on line 10 of your worksheet for last year 6. 2010 1040 tax forms 0 7. 2010 1040 tax forms Subtract line 6 from line 2 7. 2010 1040 tax forms 31,000 8. 2010 1040 tax forms Enter the smaller of line 5 or line 7 8. 2010 1040 tax forms 1,200 9. 2010 1040 tax forms Taxable amount for year. 2010 1040 tax forms Subtract line 8 from line 1. 2010 1040 tax forms Enter the result, but not less than zero. 2010 1040 tax forms Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2010 1040 tax forms Note. 2010 1040 tax forms If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 2010 1040 tax forms If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. 2010 1040 tax forms 9. 2010 1040 tax forms $ 13,200 10. 2010 1040 tax forms Was your annuity starting date before 1987? □ Yes. 2010 1040 tax forms STOP. 2010 1040 tax forms Do not complete the rest of this worksheet. 2010 1040 tax forms  ☑ No. 2010 1040 tax forms Add lines 6 and 8. 2010 1040 tax forms This is the amount you have recovered tax free through 2013. 2010 1040 tax forms You will need this number if you need to fill out this worksheet next year. 2010 1040 tax forms 10. 2010 1040 tax forms 1,200 11. 2010 1040 tax forms Balance of cost to be recovered. 2010 1040 tax forms Subtract line 10 from line 2. 2010 1040 tax forms If zero, you will not have to complete this worksheet next year. 2010 1040 tax forms The payments you receive next year will generally be fully taxable 11. 2010 1040 tax forms $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 2010 1040 tax forms   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . 2010 1040 tax forms . 2010 1040 tax forms . 2010 1040 tax forms   BEFORE November 19, 1996, enter on line 3 . 2010 1040 tax forms . 2010 1040 tax forms . 2010 1040 tax forms AFTER November 18, 1996, enter on line 3 . 2010 1040 tax forms . 2010 1040 tax forms . 2010 1040 tax forms   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . 2010 1040 tax forms . 2010 1040 tax forms . 2010 1040 tax forms   THEN enter on line 3 . 2010 1040 tax forms . 2010 1040 tax forms . 2010 1040 tax forms         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. 2010 1040 tax forms   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. 2010 1040 tax forms   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. 2010 1040 tax forms The retiree's cost has already been recovered tax free. 2010 1040 tax forms   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. 2010 1040 tax forms The resulting tax-free amount will then remain fixed. 2010 1040 tax forms Any increases in the survivor annuity are fully taxable. 2010 1040 tax forms   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. 2010 1040 tax forms See Simplified Method , earlier. 2010 1040 tax forms How to report. 2010 1040 tax forms   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. 2010 1040 tax forms If your pension or annuity is fully taxable, enter it on line 16b. 2010 1040 tax forms Do not make an entry on line 16a. 2010 1040 tax forms   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. 2010 1040 tax forms If your pension or annuity is fully taxable, enter it on line 12b. 2010 1040 tax forms Do not make an entry on line 12a. 2010 1040 tax forms   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. 2010 1040 tax forms If your pension or annuity is fully taxable, enter it on line 17b. 2010 1040 tax forms Do not make an entry on line 17a. 2010 1040 tax forms Example. 2010 1040 tax forms You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. 2010 1040 tax forms You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). 2010 1040 tax forms The entire $1,200 is taxable. 2010 1040 tax forms You include $1,200 only on Form 1040, line 16b. 2010 1040 tax forms Joint return. 2010 1040 tax forms   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. 2010 1040 tax forms Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. 2010 1040 tax forms Form 1099-R. 2010 1040 tax forms   You should receive a Form 1099-R for your pension or annuity. 2010 1040 tax forms Form 1099-R shows your pension or annuity for the year and any income tax withheld. 2010 1040 tax forms You should receive a Form W-2 if you receive distributions from certain nonqualified plans. 2010 1040 tax forms You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. 2010 1040 tax forms Generally, you should be sent these forms by January 31, 2014. 2010 1040 tax forms Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. 2010 1040 tax forms Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. 2010 1040 tax forms For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. 2010 1040 tax forms The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. 2010 1040 tax forms See Tax on Early Distributions, later. 2010 1040 tax forms Lump-sum distributions. 2010 1040 tax forms   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. 2010 1040 tax forms The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. 2010 1040 tax forms The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. 2010 1040 tax forms You may be able to use the 10-year tax option to figure tax on the ordinary income part. 2010 1040 tax forms Form 1099-R. 2010 1040 tax forms   If you receive a total distribution from a plan, you should receive a Form 1099-R. 2010 1040 tax forms If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. 2010 1040 tax forms The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. 2010 1040 tax forms More information. 2010 1040 tax forms   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. 2010 1040 tax forms Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. 2010 1040 tax forms The tax applies to the taxable part of the distribution. 2010 1040 tax forms For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). 2010 1040 tax forms  An IRA is also a qualified retirement plan for purposes of this tax. 2010 1040 tax forms General exceptions to tax. 2010 1040 tax forms   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. 2010 1040 tax forms Additional exceptions. 2010 1040 tax forms   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. 2010 1040 tax forms See Publication 575 for details. 2010 1040 tax forms Reporting tax. 2010 1040 tax forms   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. 2010 1040 tax forms 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. 2010 1040 tax forms See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. 2010 1040 tax forms Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. 2010 1040 tax forms Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. 2010 1040 tax forms However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. 2010 1040 tax forms For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). 2010 1040 tax forms  An IRA is also a qualified retirement plan for purposes of this tax. 2010 1040 tax forms An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. 2010 1040 tax forms 5% owners. 2010 1040 tax forms   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. 2010 1040 tax forms See Publication 575 for more information. 2010 1040 tax forms Amount of tax. 2010 1040 tax forms   If you do not receive the required minimum distribution, you are subject to an additional tax. 2010 1040 tax forms The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. 2010 1040 tax forms You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. 2010 1040 tax forms Form 5329. 2010 1040 tax forms   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. 2010 1040 tax forms Additional information. 2010 1040 tax forms   For more detailed information on the tax on excess accumulation, see Publication 575. 2010 1040 tax forms Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. 2010 1040 tax forms The premiums can be for coverage for you, your spouse, or dependent(s). 2010 1040 tax forms The distribution must be made directly from the plan to the insurance provider. 2010 1040 tax forms You can exclude from income the smaller of the amount of the insurance premiums or $3,000. 2010 1040 tax forms You can only make this election for amounts that would otherwise be included in your income. 2010 1040 tax forms The amount excluded from your income cannot be used to claim a medical expense deduction. 2010 1040 tax forms An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. 2010 1040 tax forms If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. 2010 1040 tax forms The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. 2010 1040 tax forms Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 2010 1040 tax forms Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2010 1040 tax forms Enter “PSO” next to the appropriate line on which you report the taxable amount. 2010 1040 tax forms Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. 2010 1040 tax forms These categories are treated differently for income tax purposes. 2010 1040 tax forms Social security equivalent benefits. 2010 1040 tax forms   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. 2010 1040 tax forms This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. 2010 1040 tax forms (See Social Security and Equivalent Railroad Retirement Benefits , later. 2010 1040 tax forms ) Non-social security equivalent benefits. 2010 1040 tax forms   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). 2010 1040 tax forms It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. 2010 1040 tax forms This category of benefits is treated as an amount received from a qualified employee plan. 2010 1040 tax forms This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. 2010 1040 tax forms Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. 2010 1040 tax forms More information. 2010 1040 tax forms   For more information about railroad retirement benefits, see Publication 575. 2010 1040 tax forms Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. 2010 1040 tax forms But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. 2010 1040 tax forms For more information, including information about veterans' benefits and insurance, see Publication 525. 2010 1040 tax forms Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. 2010 1040 tax forms Social security benefits include monthly retirement, survivor, and disability benefits. 2010 1040 tax forms They do not include supplemental security income (SSI) payments, which are not taxable. 2010 1040 tax forms Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. 2010 1040 tax forms They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. 2010 1040 tax forms If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. 2010 1040 tax forms Are Any of Your Benefits Taxable? Note. 2010 1040 tax forms When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. 2010 1040 tax forms  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. 2010 1040 tax forms When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. 2010 1040 tax forms S. 2010 1040 tax forms savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. 2010 1040 tax forms Figuring total income. 2010 1040 tax forms   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. 2010 1040 tax forms If that total amount is more than your base amount, part of your benefits may be taxable. 2010 1040 tax forms If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. 2010 1040 tax forms Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. 2010 1040 tax forms If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. 2010 1040 tax forms If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. 2010 1040 tax forms Worksheet 2-B. 2010 1040 tax forms A Quick Way To Check if Your Benefits May Be Taxable A. 2010 1040 tax forms Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2010 1040 tax forms Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. 2010 1040 tax forms (If you received more than one form, combine the amounts from box 5  and enter the total. 2010 1040 tax forms ) A. 2010 1040 tax forms     Note. 2010 1040 tax forms If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. 2010 1040 tax forms     B. 2010 1040 tax forms Enter one-half of the amount on line A B. 2010 1040 tax forms   C. 2010 1040 tax forms Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2010 1040 tax forms   D. 2010 1040 tax forms Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. 2010 1040 tax forms S. 2010 1040 tax forms savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. 2010 1040 tax forms   E. 2010 1040 tax forms Add lines B, C, and D and enter the total E. 2010 1040 tax forms   F. 2010 1040 tax forms If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. 2010 1040 tax forms   G. 2010 1040 tax forms Is the amount on line F less than or equal to the amount on line E? □ No. 2010 1040 tax forms None of your benefits are taxable this year. 2010 1040 tax forms  □ Yes. 2010 1040 tax forms Some of your benefits may be taxable. 2010 1040 tax forms To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. 2010 1040 tax forms     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. 2010 1040 tax forms Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. 2010 1040 tax forms It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. 2010 1040 tax forms If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. 2010 1040 tax forms Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. 2010 1040 tax forms Your repayments are shown in box 4. 2010 1040 tax forms The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). 2010 1040 tax forms Use the amount in box 5 to figure whether any of your benefits are taxable. 2010 1040 tax forms Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. 2010 1040 tax forms If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. 2010 1040 tax forms If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. 2010 1040 tax forms For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. 2010 1040 tax forms How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. 2010 1040 tax forms Generally, the higher that total amount, the greater the taxable part of your benefits. 2010 1040 tax forms Maximum taxable part. 2010 1040 tax forms   The taxable part of your benefits usually cannot be more than 50%. 2010 1040 tax forms However, up to 85% of your benefits can be taxable if either of the following situations applies to you. 2010 1040 tax forms The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). 2010 1040 tax forms You are married filing separately and lived with your spouse at any time during 2013. 2010 1040 tax forms   If you are a nonresident alien, 85% of your benefits are taxable. 2010 1040 tax forms However, this income is exempt under some tax treaties. 2010 1040 tax forms Which worksheet to use. 2010 1040 tax forms   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. 2010 1040 tax forms However, you will need to use a different worksheet(s) if any of the following situations applies to you. 2010 1040 tax forms You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. 2010 1040 tax forms In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. 2010 1040 tax forms Situation (1) does not apply and you take one or more of the following exclusions. 2010 1040 tax forms Interest from qualified U. 2010 1040 tax forms S. 2010 1040 tax forms savings bonds (Form 8815). 2010 1040 tax forms Employer-provided adoption benefits (Form 8839). 2010 1040 tax forms Foreign earned income or housing (Form 2555 or Form 2555-EZ). 2010 1040 tax forms Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. 2010 1040 tax forms In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. 2010 1040 tax forms You received a lump-sum payment for an earlier year. 2010 1040 tax forms In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. 2010 1040 tax forms See Lump-Sum Election , later. 2010 1040 tax forms How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. 2010 1040 tax forms You cannot use Form 1040EZ. 2010 1040 tax forms Reporting on Form 1040. 2010 1040 tax forms   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. 2010 1040 tax forms If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. 2010 1040 tax forms Reporting on Form 1040A. 2010 1040 tax forms   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. 2010 1040 tax forms If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. 2010 1040 tax forms Reporting on Form 1040NR. 2010 1040 tax forms   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. 2010 1040 tax forms Benefits not taxable. 2010 1040 tax forms   If you are filing Form 1040EZ, do not report any benefits on your tax return. 2010 1040 tax forms If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. 2010 1040 tax forms Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2010 1040 tax forms If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. 2010 1040 tax forms Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. 2010 1040 tax forms This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. 2010 1040 tax forms No part of the lump-sum death benefit is subject to tax. 2010 1040 tax forms For more information about the lump-sum death benefit, visit the Social Security Administration website at www. 2010 1040 tax forms SSA. 2010 1040 tax forms gov, and use keyword: death benefit. 2010 1040 tax forms Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. 2010 1040 tax forms However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. 2010 1040 tax forms You can elect this method if it lowers your taxable benefits. 2010 1040 tax forms See Publication 915 for more information. 2010 1040 tax forms Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. 2010 1040 tax forms If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. 2010 1040 tax forms If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. 2010 1040 tax forms If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. 2010 1040 tax forms S. 2010 1040 tax forms Railroad Retirement Board field office. 2010 1040 tax forms Joint return. 2010 1040 tax forms   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. 2010 1040 tax forms You do this to get your net benefits when figuring if your combined benefits are taxable. 2010 1040 tax forms Repayment of benefits received in an earlier year. 2010 1040 tax forms   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. 2010 1040 tax forms   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. 2010 1040 tax forms Claim it on Schedule A (Form 1040), line 23. 2010 1040 tax forms   If this deduction is more than $3,000, you have to follow some special instructions. 2010 1040 tax forms See Publication 915 for those instructions. 2010 1040 tax forms Sickness and Injury Benefits Generally, 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. 2010 1040 tax forms 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. 2010 1040 tax forms However, certain payments may not be taxable to you. 2010 1040 tax forms Some of these payments are discussed later in this section. 2010 1040 tax forms Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. 2010 1040 tax forms Cost paid by you. 2010 1040 tax forms   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. 2010 1040 tax forms 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. 2010 1040 tax forms 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. 2010 1040 tax forms You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. 2010 1040 tax forms Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 2010 1040 tax forms If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. 2010 1040 tax forms See Credit for the Elderly or the Disabled, later. 2010 1040 tax forms For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. 2010 1040 tax forms Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 2010 1040 tax forms Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. 2010 1040 tax forms For more information on pensions and annuities, see Publication 575. 2010 1040 tax forms Retirement and profit-sharing plans. 2010 1040 tax forms   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. 2010 1040 tax forms The payments must be reported as a pension or annuity. 2010 1040 tax forms Accrued leave payment. 2010 1040 tax forms   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 2010 1040 tax forms The payment is not a disability payment. 2010 1040 tax forms Include it in your income in the tax year you receive it. 2010 1040 tax forms Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. 2010 1040 tax forms Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. 2010 1040 tax forms However, the amount you can exclude may be limited. 2010 1040 tax forms Long-term care insurance contracts are discussed in more detail in Publication 525. 2010 1040 tax forms 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. 2010 1040 tax forms The exemption also applies to your survivors. 2010 1040 tax forms 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. 2010 1040 tax forms If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2010 1040 tax forms For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 2010 1040 tax forms Return to work. 2010 1040 tax forms   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. 2010 1040 tax forms Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. 2010 1040 tax forms Federal Employees' Compensation Act (FECA). 2010 1040 tax forms   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. 2010 1040 tax forms 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. 2010 1040 tax forms Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. 2010 1040 tax forms Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. 2010 1040 tax forms    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2010 1040 tax forms For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 2010 1040 tax forms Other compensation. 2010 1040 tax forms   Many other amounts you receive as compensation for sickness or injury are not taxable. 2010 1040 tax forms These include the following amounts. 2010 1040 tax forms 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. 2010 1040 tax forms Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. 2010 1040 tax forms Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). 2010 1040 tax forms This compensation must be based only on the injury and not on the period of your absence from work. 2010 1040 tax forms These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. 2010 1040 tax forms Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. 2010 1040 tax forms This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. 2010 1040 tax forms Proceeds not received in installments. 2010 1040 tax forms   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. 2010 1040 tax forms If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. 2010 1040 tax forms Proceeds received in installments. 2010 1040 tax forms   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. 2010 1040 tax forms   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. 2010 1040 tax forms Include anything over this excluded part in your income as interest. 2010 1040 tax forms Installments for life. 2010 1040 tax forms   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. 2010 1040 tax forms If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. 2010 1040 tax forms Surviving spouse. 2010 1040 tax forms   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. 2010 1040 tax forms If you remarry, you can continue to take the exclusion. 2010 1040 tax forms Surrender of policy for cash. 2010 1040 tax forms   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. 2010 1040 tax forms In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. 2010 1040 tax forms You should receive a Form 1099-R showing the total proceeds and the taxable part. 2010 1040 tax forms Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. 2010 1040 tax forms Endowment Contract Proceeds An endowment contract is a policy that pays over to you a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. 2010 1040 tax forms Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. 2010 1040 tax forms To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. 2010 1040 tax forms Include in your income the part of the lump-sum payment that is more than your cost. 2010 1040 tax forms Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. 2010 1040 tax forms The tax treatment of an annuity is explained in Publication 575. 2010 1040 tax forms For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. 2010 1040 tax forms This election must be made within 60 days after the lump-sum payment first becomes payable to you. 2010 1040 tax forms Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. 2010 1040 tax forms However, see Exception , later. 2010 1040 tax forms For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. 2010 1040 tax forms Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. 2010 1040 tax forms In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. 2010 1040 tax forms Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill. 2010 1040 tax forms To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. 2010 1040 tax forms Terminally or chronically ill defined. 2010 1040 tax forms   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. 2010 1040 tax forms A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. 2010 1040 tax forms The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. 2010 1040 tax forms The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. 2010 1040 tax forms Exception. 2010 1040 tax forms   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. 2010 1040 tax forms Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. 2010 1040 tax forms Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. 2010 1040 tax forms You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. 2010 1040 tax forms Main home. 2010 1040 tax forms   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. 2010 1040 tax forms Repaying the first-time homebuyer credit because you sold your home. 2010 1040 tax forms   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. 2010 1040 tax forms For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. 2010 1040 tax forms   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. 2010 1040 tax forms If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. 2010 1040 tax forms If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. 2010 1040 tax forms   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. 2010 1040 tax forms Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. 2010 1040 tax forms You meet the ownership test. 2010 1040 tax forms You meet the use test. 2010 1040 tax forms During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. 2010 1040 tax forms You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . 2010 1040 tax forms Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. 2010 1040 tax forms This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). 2010 1040 tax forms Exception to ownership and use tests. 2010 1040 tax forms   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. 2010 1040 tax forms Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. 2010 1040 tax forms The maximum amount you can exclude will be reduced. 2010 1040 tax forms See Publication 523, Selling Your Home, for more information. 2010 1040 tax forms Exception to use test for individuals with a disability. 2010 1040 tax forms   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. 2010 1040 tax forms Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. 2010 1040 tax forms   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. 2010 1040 tax forms Exception to ownership test for property acquired in a like-kind exchange. 2010 1040 tax forms   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. 2010 1040 tax forms This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. 2010 1040 tax forms A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. 2010 1040 tax forms See Publication 523 for more information. 2010 1040 tax forms Period of nonqualified use. 2010 1040 tax forms   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. 2010 1040 tax forms Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. 2010 1040 tax forms See Publication 523 for more information. 2010 1040 tax forms Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. 2010 1040 tax forms However, see Special rules for joint returns , next. 2010 1040 tax forms Special rules for joint returns. 2010 1040 tax forms   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. 2010 1040 tax forms You are married and file a joint return for the year. 2010 1040 tax forms Either you or your spouse meets the ownership test. 2010 1040 tax forms Both you and your spouse meet the use test. 2010 1040 tax forms During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. 2010 1040 tax forms Sale of home by surviving spouse. 2010 1040 tax forms   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. 2010 1040 tax forms   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. 2010 1040 tax forms The sale or exchange took place no more than 2 years after the date of death of your spouse. 2010 1040 tax forms You have not remarried. 2010 1040 tax forms You and your spouse met the use test at the time of your spouse's death. 2010 1040 tax forms You or your spouse met the ownership test at the time of your spouse's death. 2010 1040 tax forms Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. 2010 1040 tax forms Home transferred from spouse. 2010 1040 tax forms   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. 2010 1040 tax forms Use of home after divorce. 2010 1040 tax forms   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. 2010 1040 tax forms Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. 2010 1040 tax forms However, you must meet the ownership and use tests. 2010 1040 tax forms See Publication 523 for more information. 2010 1040 tax forms Depreciation after May 6, 1997. 2010 1040 tax forms   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. 2010 1040 tax forms See Publication 523 for more information. 2010 1040 tax forms Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. 2010 1040 tax forms If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. 2010 1040 tax forms Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. 2010 1040 tax forms If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. 2010 1040 tax forms See Publication 523 for more information. 2010 1040 tax forms Reverse Mortgages A revers
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Tennessee Department of Commerce and Insurance

Website: Tennessee Department of Commerce and Insurance

Address: Tennessee Department of Commerce and Insurance
Division of Consumer Affairs
500 James Robertson Pkwy., 12th Floor
Nashville, TN 37243-0600

Phone Number: 615-741-4737

Toll-free: 1-800-342-8385 (TN)

Tennessee Office of the Attorney General

Website: Tennessee Office of the Attorney General

Address: Tennessee Office of the Attorney General
Consumer Advocate and Protection Division
PO Box 20207
Nashville, TN 37202-0207

Phone Number: 615-741-1671

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Financial Institutions

Website: Department of Financial Institutions

Address: Department of Financial Institutions
Consumer Resources Division
414 Union St., Suite 1000
Nashville, TN 37219

Phone Number: 615-253-2023

Toll-free: 1-800-778-4215 (TN)

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Commerce and Insurance

Website: Department of Commerce and Insurance

Address: Department of Commerce and Insurance
Consumer Insurance Services
500 James Robertson Pkwy., 4th Floor
Nashville, TN 37243-0574

Phone Number: 615-741-2218

Toll-free: 1-800-342-4029 (TN)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Commerce and Insurance

Website: Department of Commerce and Insurance

Address: Department of Commerce and Insurance
Securities Division
500 James Robertson Pkwy.
Nashville, TN 37243-0575

Phone Number: 615-741-2947

Toll-free: 1-800-863-9117 (TN)

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Regulatory Authority

Website: Regulatory Authority

Address: Regulatory Authority
Consumer Services Division
460 James Robertson Pkwy.
Nashville, TN 37243-0505

Phone Number: 615-741-2904

Toll-free: 1-800-342-8359 (Consumer Services)

TTY: 1-888-276-0677

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The 2010 1040 Tax Forms

2010 1040 tax forms 4. 2010 1040 tax forms   Student Loan Interest Deduction Table of Contents Introduction Student Loan Interest DefinedQualified Student Loan Qualified Education Expenses Include As Interest Do Not Include As Interest When Must Interest Be Paid Can You Claim the DeductionNo Double Benefit Allowed Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Which Worksheet To Use Claiming the Deduction Introduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. 2010 1040 tax forms However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. 2010 1040 tax forms For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. 2010 1040 tax forms This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. 2010 1040 tax forms The student loan interest deduction is taken as an adjustment to income. 2010 1040 tax forms This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). 2010 1040 tax forms This chapter explains: What type of loan interest you can deduct, Whether you can claim the deduction, What expenses you must have paid with the student loan, Who is an eligible student, How to figure the deduction, and How to claim the deduction. 2010 1040 tax forms Table 4-1. 2010 1040 tax forms Student Loan Interest Deduction at a Glance This table summarizes the features of the student loan interest deduction. 2010 1040 tax forms Do not rely on this table alone. 2010 1040 tax forms Refer to the text for complete details. 2010 1040 tax forms Feature   Description Maximum benefit   You can reduce your income subject to tax by up to $2,500. 2010 1040 tax forms Loan qualifications   Your student loan: •must have been taken out solely to pay qualified education expenses, and •cannot be from a related person or made under a qualified employer plan. 2010 1040 tax forms Student qualifications   The student must be: •you, your spouse, or your dependent, and  •enrolled at least half-time in a degree program. 2010 1040 tax forms Time limit on deduction   You can deduct interest paid during the remaining period of your student loan. 2010 1040 tax forms Limit on modified adjusted gross income (MAGI)   $155,000 if married filing a joint return; $75,000 if single, head of household, or qualifying widow(er). 2010 1040 tax forms Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. 2010 1040 tax forms It includes both required and voluntary interest payments. 2010 1040 tax forms Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period for an eligible student. 2010 1040 tax forms Loans from the following sources are not qualified student loans. 2010 1040 tax forms A related person. 2010 1040 tax forms A qualified employer plan. 2010 1040 tax forms Your dependent. 2010 1040 tax forms   Generally, your dependent is someone who is either a: Qualifying child, or Qualifying relative. 2010 1040 tax forms You can find more information about dependents in Publication 501. 2010 1040 tax forms Exceptions. 2010 1040 tax forms   For purposes of the student loan interest deduction, there are the following exceptions to the general rules for dependents. 2010 1040 tax forms An individual can be your dependent even if you are the dependent of another taxpayer. 2010 1040 tax forms An individual can be your dependent even if the individual files a joint return with a spouse. 2010 1040 tax forms An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). 2010 1040 tax forms Reasonable period of time. 2010 1040 tax forms   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. 2010 1040 tax forms   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. 2010 1040 tax forms The expenses relate to a specific academic period, and The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. 2010 1040 tax forms   If neither of the above situations applies, the reasonable period of time usually is determined based on all the relevant facts and circumstances. 2010 1040 tax forms Academic period. 2010 1040 tax forms   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. 2010 1040 tax forms In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. 2010 1040 tax forms Eligible student. 2010 1040 tax forms   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. 2010 1040 tax forms Enrolled at least half-time. 2010 1040 tax forms   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. 2010 1040 tax forms   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. 2010 1040 tax forms However, the standard may not be lower than any of those established by the U. 2010 1040 tax forms S. 2010 1040 tax forms Department of Education under the Higher Education Act of 1965. 2010 1040 tax forms Related person. 2010 1040 tax forms   You cannot deduct interest on a loan you get from a related person. 2010 1040 tax forms Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. 2010 1040 tax forms ), Your lineal descendants (children, grandchildren, etc. 2010 1040 tax forms ), and Certain corporations, partnerships, trusts, and exempt organizations. 2010 1040 tax forms Qualified employer plan. 2010 1040 tax forms   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. 2010 1040 tax forms Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. 2010 1040 tax forms They include amounts paid for the following items. 2010 1040 tax forms Tuition and fees. 2010 1040 tax forms Room and board. 2010 1040 tax forms Books, supplies, and equipment. 2010 1040 tax forms Other necessary expenses (such as transportation). 2010 1040 tax forms The cost of room and board qualifies only to the extent that it is not more than the greater of: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. 2010 1040 tax forms Eligible educational institution. 2010 1040 tax forms   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2010 1040 tax forms S. 2010 1040 tax forms Department of Education. 2010 1040 tax forms It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2010 1040 tax forms   Certain educational institutions located outside the United States also participate in the U. 2010 1040 tax forms S. 2010 1040 tax forms Department of Education's Federal Student Aid (FSA) programs. 2010 1040 tax forms   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. 2010 1040 tax forms   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. 2010 1040 tax forms The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. 2010 1040 tax forms    The educational institution should be able to tell you if it is an eligible educational institution. 2010 1040 tax forms Adjustments to Qualified Education Expenses You must reduce your qualified education expenses by the total amount paid for them with the following tax-free items. 2010 1040 tax forms Employer-provided educational assistance. 2010 1040 tax forms See chapter 11, Employer-Provided Educational Assistance . 2010 1040 tax forms Tax-free distribution of earnings from a Coverdell education savings account (ESA). 2010 1040 tax forms See Tax-Free Distributions in chapter 7, Coverdell Education Savings Account. 2010 1040 tax forms Tax-free distribution of earnings from a qualified tuition program (QTP). 2010 1040 tax forms See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program. 2010 1040 tax forms U. 2010 1040 tax forms S. 2010 1040 tax forms savings bond interest that you exclude from income because it is used to pay qualified education expenses. 2010 1040 tax forms See chapter 10, Education Savings Bond Program . 2010 1040 tax forms The tax-free part of scholarships and fellowships. 2010 1040 tax forms See Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 2010 1040 tax forms Veterans' educational assistance. 2010 1040 tax forms See Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 2010 1040 tax forms Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2010 1040 tax forms Include As Interest In addition to simple interest on the loan, if all other requirements are met, the items discussed below can be student loan interest. 2010 1040 tax forms Loan origination fee. 2010 1040 tax forms   In general, this is a one-time fee charged by the lender when a loan is made. 2010 1040 tax forms To be deductible as interest, a loan origination fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. 2010 1040 tax forms A loan origination fee treated as interest accrues over the term of the loan. 2010 1040 tax forms   Loan origination fees were not required to be reported on Form 1098-E, Student Loan Interest Statement, for loans made before September 1, 2004. 2010 1040 tax forms If loan origination fees are not included in the amount reported on your Form 1098-E, you can use any reasonable method to allocate the loan origination fees over the term of the loan. 2010 1040 tax forms The method shown in the example below allocates equal portions of the loan origination fee to each payment required under the terms of the loan. 2010 1040 tax forms A method that results in the double deduction of the same portion of a loan origination fee would not be reasonable. 2010 1040 tax forms Example. 2010 1040 tax forms In August 2004, Bill took out a student loan for $16,000 to pay the tuition for his senior year of college. 2010 1040 tax forms The lender charged a 3% loan origination fee ($480) that was withheld from the funds Bill received. 2010 1040 tax forms Bill began making payments on his student loan in 2013. 2010 1040 tax forms Because the loan origination fee was not included in his 2013 Form 1098-E, Bill can use any reasonable method to allocate that fee over the term of the loan. 2010 1040 tax forms Bill's loan is payable in 120 equal monthly payments. 2010 1040 tax forms He allocates the $480 fee equally over the total number of payments ($480 ÷ 120 months = $4 per month). 2010 1040 tax forms Bill made 7 payments in 2013, so he paid $28 ($4 × 7) of interest attributable to the loan origination fee. 2010 1040 tax forms To determine his student loan interest deduction, he will add the $28 to the amount of other interest reported to him on Form 1098-E. 2010 1040 tax forms Capitalized interest. 2010 1040 tax forms   This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. 2010 1040 tax forms Capitalized interest is treated as interest for tax purposes and is deductible as payments of principal are made on the loan. 2010 1040 tax forms No deduction for capitalized interest is allowed in a year in which no loan payments were made. 2010 1040 tax forms Interest on revolving lines of credit. 2010 1040 tax forms   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. 2010 1040 tax forms See Qualified Education Expenses , earlier. 2010 1040 tax forms Interest on refinanced student loans. 2010 1040 tax forms   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. 2010 1040 tax forms    If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. 2010 1040 tax forms Voluntary interest payments. 2010 1040 tax forms   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. 2010 1040 tax forms Example. 2010 1040 tax forms The payments on Roger's student loan were scheduled to begin in June 2012, 6 months after he graduated from college. 2010 1040 tax forms He began making payments as required. 2010 1040 tax forms In September 2013, Roger enrolled in graduate school on a full-time basis. 2010 1040 tax forms He applied for and was granted deferment of his loan payments while in graduate school. 2010 1040 tax forms Wanting to pay down his student loan as much as possible, he made loan payments in October and November 2013. 2010 1040 tax forms Even though these were voluntary (not required) payments, Roger can deduct the interest paid in October and November. 2010 1040 tax forms Allocating Payments Between Interest and Principal The allocation of payments between interest and principal for tax purposes might not be the same as the allocation shown on the Form 1098-E or other statement you receive from the lender or loan servicer. 2010 1040 tax forms To make the allocation for tax purposes, a payment generally applies first to stated interest that remains unpaid as of the date the payment is due, second to any loan origination fees allocable to the payment, third to any capitalized interest that remains unpaid as of the date the payment is due, and fourth to the outstanding principal. 2010 1040 tax forms Example. 2010 1040 tax forms In August 2012, Peg took out a $10,000 student loan to pay the tuition for her senior year of college. 2010 1040 tax forms The lender charged a 3% loan origination fee ($300) that was withheld from the funds Peg received. 2010 1040 tax forms The interest (5% simple) on this loan accrued while she completed her senior year and for 6 months after she graduated. 2010 1040 tax forms At the end of that period, the lender determined the amount to be repaid by capitalizing all accrued but unpaid interest ($625 interest accrued from August 2012 through October 2013) and adding it to the outstanding principal balance of the loan. 2010 1040 tax forms The loan is payable over 60 months, with a payment of $200. 2010 1040 tax forms 51 due on the first of each month, beginning November 2013. 2010 1040 tax forms Peg did not receive a Form 1098-E for 2013 from her lender because the amount of interest she paid did not require the lender to issue an information return. 2010 1040 tax forms However, she did receive an account statement from the lender that showed the following 2013 payments on her outstanding loan of $10,625 ($10,000 principal + $625 accrued but unpaid interest). 2010 1040 tax forms Payment Date   Payment   Stated Interest   Principal November 2013   $200. 2010 1040 tax forms 51   $44. 2010 1040 tax forms 27   $156. 2010 1040 tax forms 24 December 2013   $200. 2010 1040 tax forms 51   $43. 2010 1040 tax forms 62   $156. 2010 1040 tax forms 89 Totals   $401. 2010 1040 tax forms 02   $87. 2010 1040 tax forms 89   $313. 2010 1040 tax forms 13 To determine the amount of interest that could be deducted on the loan for 2013, Peg starts with the total amount of stated interest she paid, $87. 2010 1040 tax forms 89. 2010 1040 tax forms Next, she allocates the loan origination fee over the term of the loan ($300 ÷ 60 months = $5 per month). 2010 1040 tax forms A total of $10 ($5 of each of the two principal payments) should be treated as interest for tax purposes. 2010 1040 tax forms Peg then applies the unpaid capitalized interest ($625) to the two principal payments in the order in which they were made, and determines that the remaining amount of principal of both payments is treated as interest for tax purposes. 2010 1040 tax forms Assuming that Peg qualifies to take the student loan interest deduction, she can deduct $401. 2010 1040 tax forms 02 ($87. 2010 1040 tax forms 89 + $10 + $303. 2010 1040 tax forms 13). 2010 1040 tax forms For 2014, Peg will continue to allocate $5 of the loan origination fee to the principal portion of each monthly payment she makes and treat that amount as interest for tax purposes. 2010 1040 tax forms She also will apply the remaining amount of capitalized interest ($625 − $303. 2010 1040 tax forms 13 = $321. 2010 1040 tax forms 87) to the principal payments in the order in which they are made until the balance is zero, and treat those amounts as interest for tax purposes. 2010 1040 tax forms Do Not Include As Interest You cannot claim a student loan interest deduction for any of the following items. 2010 1040 tax forms Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. 2010 1040 tax forms Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. 2010 1040 tax forms Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. 2010 1040 tax forms For more information, see Student Loan Repayment Assistance in chapter 5, Student Loan Cancellations and Repayment Assistance. 2010 1040 tax forms When Must Interest Be Paid You can deduct all interest you paid during the year on your student loan, including voluntary payments, until the loan is paid off. 2010 1040 tax forms Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. 2010 1040 tax forms Your filing status is any filing status except married filing separately. 2010 1040 tax forms No one else is claiming an exemption for you on his or her tax return. 2010 1040 tax forms You are legally obligated to pay interest on a qualified student loan. 2010 1040 tax forms You paid interest on a qualified student loan. 2010 1040 tax forms Claiming an exemption for you. 2010 1040 tax forms   Another taxpayer is claiming an exemption for you if he or she lists your name and other required information on his or her Form 1040 (or Form 1040A), line 6c, or Form 1040NR, line 7c. 2010 1040 tax forms Example 1. 2010 1040 tax forms During 2013, Josh paid $600 interest on his qualified student loan. 2010 1040 tax forms Only he is legally obligated to make the payments. 2010 1040 tax forms No one claimed an exemption for Josh for 2013. 2010 1040 tax forms Assuming all other requirements are met, Josh can deduct the $600 of interest he paid on his 2013 Form 1040 or 1040A. 2010 1040 tax forms Example 2. 2010 1040 tax forms During 2013, Jo paid $1,100 interest on her qualified student loan. 2010 1040 tax forms Only she is legally obligated to make the payments. 2010 1040 tax forms Jo's parents claimed an exemption for her on their 2013 tax return. 2010 1040 tax forms In this case, neither Jo nor her parents may deduct the student loan interest Jo paid in 2013. 2010 1040 tax forms Interest paid by others. 2010 1040 tax forms   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. 2010 1040 tax forms Example 1. 2010 1040 tax forms Darla obtained a qualified student loan to attend college. 2010 1040 tax forms After Darla's graduation from college, she worked as an intern for a nonprofit organization. 2010 1040 tax forms As part of the internship program, the nonprofit organization made an interest payment on behalf of Darla. 2010 1040 tax forms This payment was treated as additional compensation and reported in box 1 of her Form W-2. 2010 1040 tax forms Assuming all other qualifications are met, Darla can deduct this payment of interest on her tax return. 2010 1040 tax forms Example 2. 2010 1040 tax forms Ethan obtained a qualified student loan to attend college. 2010 1040 tax forms After graduating from college, the first monthly payment on his loan was due in December. 2010 1040 tax forms As a gift, Ethan's mother made this payment for him. 2010 1040 tax forms No one is claiming a dependency exemption for Ethan on his or her tax return. 2010 1040 tax forms Assuming all other qualifications are met, Ethan can deduct this payment of interest on his tax return. 2010 1040 tax forms No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, as home mortgage interest). 2010 1040 tax forms Figuring the Deduction Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. 2010 1040 tax forms However, the amount determined above may be gradually reduced (phased out) or eliminated based on your filing status and MAGI as explained below. 2010 1040 tax forms You can use Worksheet 4-1. 2010 1040 tax forms Student Loan Interest Deduction Worksheet (at the end of this chapter) to figure both your MAGI and your deduction. 2010 1040 tax forms Form 1098-E. 2010 1040 tax forms   To help you figure your student loan interest deduction, you should receive Form 1098-E. 2010 1040 tax forms Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. 2010 1040 tax forms   For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. 2010 1040 tax forms Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. 2010 1040 tax forms However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. 2010 1040 tax forms See Allocating Payments Between Interest and Principal , earlier. 2010 1040 tax forms    The lender may ask for a completed Form W-9S, or similar statement to obtain the borrower's name, address, and taxpayer identification number. 2010 1040 tax forms The form may also be used by the borrower to certify that the student loan was incurred solely to pay for qualified education expenses. 2010 1040 tax forms Effect of the Amount of Your Income on the Amount of Your Deduction The amount of your student loan interest deduction is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). 2010 1040 tax forms You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). 2010 1040 tax forms Modified adjusted gross income (MAGI). 2010 1040 tax forms   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for student loan interest. 2010 1040 tax forms However, as discussed below, there may be other modifications. 2010 1040 tax forms Table 4-2 shows how the amount of your MAGI can affect your student loan interest deduction. 2010 1040 tax forms Table 4-2. 2010 1040 tax forms Effect of MAGI on Student Loan Interest Deduction IF your filing status is. 2010 1040 tax forms . 2010 1040 tax forms . 2010 1040 tax forms AND your MAGI is. 2010 1040 tax forms . 2010 1040 tax forms . 2010 1040 tax forms THEN your student loan interest deduction is. 2010 1040 tax forms . 2010 1040 tax forms . 2010 1040 tax forms single,  head of household, or qualifying widow(er) not more than $60,000 not affected by the phaseout. 2010 1040 tax forms more than $60,000  but less than $75,000 reduced because of the phaseout. 2010 1040 tax forms $75,000 or more eliminated by the phaseout. 2010 1040 tax forms married filing joint return not more than $125,000 not affected by the phaseout. 2010 1040 tax forms more than $125,000 but less than $155,000 reduced because of the phaseout. 2010 1040 tax forms $155,000 or more eliminated by the phaseout. 2010 1040 tax forms MAGI when using Form 1040A. 2010 1040 tax forms   If you file Form 1040A, your MAGI is the AGI on line 22 of that form figured without taking into account any amount on line 18 (student loan interest deduction) and line 19 (tuition and fees deduction). 2010 1040 tax forms MAGI when using Form 1040. 2010 1040 tax forms   If you file Form 1040, your MAGI is the AGI on line 38 of that form figured without taking into account any amount on line 33 (student loan interest deduction), line 34 (tuition and fees deduction), or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. 2010 1040 tax forms MAGI when using Form 1040NR. 2010 1040 tax forms   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form figured without taking into account any amount on line 33 (student loan interest deduction) and line 34 (domestic production activities deduction). 2010 1040 tax forms MAGI when using Form 1040NR-EZ. 2010 1040 tax forms   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form figured without taking into account any amount on line 9 (student loan interest deduction). 2010 1040 tax forms Phaseout. 2010 1040 tax forms   If your MAGI is within the range of incomes where the credit must be reduced, you must figure your reduced deduction. 2010 1040 tax forms To figure the phaseout, multiply your interest deduction (before the phaseout) by a fraction. 2010 1040 tax forms The numerator is your MAGI minus $60,000 ($125,000 in the case of a joint return). 2010 1040 tax forms The denominator is $15,000 ($30,000 in the case of a joint return). 2010 1040 tax forms Subtract the result from your deduction (before the phaseout) to give you the amount you can deduct. 2010 1040 tax forms Example 1. 2010 1040 tax forms During 2013 you paid $800 interest on a qualified student loan. 2010 1040 tax forms Your 2013 MAGI is $145,000 and you are filing a joint return. 2010 1040 tax forms You must reduce your deduction by $533, figured as follows. 2010 1040 tax forms   $800 × $145,000 − $125,000  $30,000 = $533   Your reduced student loan interest deduction is $267 ($800 − $533). 2010 1040 tax forms Example 2. 2010 1040 tax forms The facts are the same as in Example 1 except that you paid $2,750 interest. 2010 1040 tax forms Your maximum deduction for 2013 is $2,500. 2010 1040 tax forms You must reduce your maximum deduction by $1,667, figured as follows. 2010 1040 tax forms   $2,500 × $145,000 − $125,000  $30,000 = $1,667   In this example, your reduced student loan interest deduction is $833 ($2,500 − $1,667). 2010 1040 tax forms Which Worksheet To Use Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR. 2010 1040 tax forms However, if you are filing Form 2555, Foreign Earned Income, Form 2555-EZ, Foreign Earned Income Exclusion, or Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1. 2010 1040 tax forms Student Loan Interest Deduction Worksheet at the end of this chapter. 2010 1040 tax forms Claiming the Deduction The student loan interest deduction is an adjustment to income. 2010 1040 tax forms To claim the deduction, enter the allowable amount on line 33 (Form 1040), line 18 (Form 1040A), line 33 (Form 1040NR), or line 9 (Form 1040NR-EZ). 2010 1040 tax forms Worksheet 4-1. 2010 1040 tax forms Student Loan Interest Deduction Worksheet Use this worksheet instead of the worksheet in the Form 1040 instructions if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. 2010 1040 tax forms Before using this worksheet, you must complete Form 1040, lines 7 through 32, plus any amount to be entered on the dotted line next to line 36. 2010 1040 tax forms 1. 2010 1040 tax forms Enter the total interest you paid in 2013 on qualified student loans. 2010 1040 tax forms Do not enter  more than $2,500 1. 2010 1040 tax forms   2. 2010 1040 tax forms Enter the amount from Form 1040, line 22 2. 2010 1040 tax forms       3. 2010 1040 tax forms Enter the total of the amounts from Form 1040,  lines 23 through 32 3. 2010 1040 tax forms           4. 2010 1040 tax forms Enter the total of any amounts entered on the dotted line next to Form 1040, line 36 4. 2010 1040 tax forms           5. 2010 1040 tax forms Add lines 3 and 4 5. 2010 1040 tax forms       6. 2010 1040 tax forms Subtract line 5 from line 2 6. 2010 1040 tax forms       7. 2010 1040 tax forms Enter any foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18) 7. 2010 1040 tax forms       8. 2010 1040 tax forms Enter any foreign housing deduction (Form 2555, line 50) 8. 2010 1040 tax forms       9. 2010 1040 tax forms Enter the amount of income from Puerto Rico you are excluding 9. 2010 1040 tax forms       10. 2010 1040 tax forms Enter the amount of income from American Samoa  you are excluding (Form 4563, line 15) 10. 2010 1040 tax forms       11. 2010 1040 tax forms Add lines 6 through 10. 2010 1040 tax forms This is your modified adjusted gross income 11. 2010 1040 tax forms   12. 2010 1040 tax forms Enter the amount shown below for your filing status 12. 2010 1040 tax forms     •Single, head of household, or qualifying widow(er)—$60,000       •Married filing jointly—$125,000     13. 2010 1040 tax forms Is the amount on line 11 more than the amount on line 12?       □ No. 2010 1040 tax forms Skip lines 13 and 14, enter -0- on line 15, and go to line 16. 2010 1040 tax forms       □ Yes. 2010 1040 tax forms Subtract line 12 from line 11 13. 2010 1040 tax forms   14. 2010 1040 tax forms Divide line 13 by $15,000 ($30,000 if married filing jointly). 2010 1040 tax forms Enter the result as a decimal  (rounded to at least three places). 2010 1040 tax forms If the result is 1. 2010 1040 tax forms 000 or more, enter 1. 2010 1040 tax forms 000 14. 2010 1040 tax forms . 2010 1040 tax forms 15. 2010 1040 tax forms Multiply line 1 by line 14 15. 2010 1040 tax forms   16. 2010 1040 tax forms Student loan interest deduction. 2010 1040 tax forms Subtract line 15 from line 1. 2010 1040 tax forms Enter the result here  and on Form 1040, line 33. 2010 1040 tax forms Do not include this amount in figuring any other  deduction on your return (such as on Schedule A, C, E, etc. 2010 1040 tax forms ) 16. 2010 1040 tax forms   Prev  Up  Next   Home   More Online Publications