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2012 Free Tax Return Filing

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2012 Free Tax Return Filing

2012 free tax return filing 1. 2012 free tax return filing   Investment Income Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: General InformationSSN for joint account. 2012 free tax return filing Custodian account for your child. 2012 free tax return filing Penalty for failure to supply SSN. 2012 free tax return filing Certification. 2012 free tax return filing Underreported interest and dividends. 2012 free tax return filing How to stop backup withholding due to underreporting. 2012 free tax return filing How to stop backup withholding due to an incorrect identification number. 2012 free tax return filing Reporting backup withholding. 2012 free tax return filing Nonresident aliens. 2012 free tax return filing Penalties. 2012 free tax return filing Savings account with parent as trustee. 2012 free tax return filing Interest IncomeInterest not reported on Form 1099-INT. 2012 free tax return filing Nominees. 2012 free tax return filing Incorrect amount. 2012 free tax return filing Information reporting requirement. 2012 free tax return filing Taxable Interest — General Below-Market Loans U. 2012 free tax return filing S. 2012 free tax return filing Savings Bonds U. 2012 free tax return filing S. 2012 free tax return filing Treasury Bills, Notes, and Bonds Bonds Sold Between Interest Dates Insurance State or Local Government Obligations Discount on Debt InstrumentsOriginal Issue Discount (OID) Market Discount Bonds Discount on Short-Term Obligations Election To Report All Interest as OID When To Report Interest IncomeConstructive receipt. 2012 free tax return filing How To Report Interest IncomeSchedule B (Form 1040A or 1040). 2012 free tax return filing Worksheet for savings bonds distributed from a retirement or profit-sharing plan. 2012 free tax return filing File Form 1099-INT with the IRS. 2012 free tax return filing Dividends and Other DistributionsDividends not reported on Form 1099-DIV. 2012 free tax return filing Nominees. 2012 free tax return filing Ordinary Dividends Capital Gain Distributions Nondividend Distributions Liquidating Distributions Distributions of Stock and Stock Rights Other Distributions How To Report Dividend IncomeElection. 2012 free tax return filing Independent contractor. 2012 free tax return filing Investment interest deducted. 2012 free tax return filing Exception 1. 2012 free tax return filing Exception 2. 2012 free tax return filing Undistributed capital gains. 2012 free tax return filing File Form 1099-DIV with the IRS. 2012 free tax return filing Stripped Preferred Stock REMICs, FASITs, and Other CDOsREMICs Collateralized Debt Obligations (CDOs) FASITs S CorporationsLimit on losses and deductions. 2012 free tax return filing Passive activity losses. 2012 free tax return filing Form 8582. 2012 free tax return filing Investment ClubsInvestments in name of member. 2012 free tax return filing Tax Treatment of the Club Topics - This chapter discusses: Interest Income , Discount on Debt Instruments , When To Report Interest Income , How To Report Interest Income , Dividends and Other Distributions , How To Report Dividend Income , Stripped Preferred Stock , Real estate mortgage investment conduits (REMICs), financial asset securitization investment trusts (FASITs), and other collateralized debt obligations (CDOs) , S Corporations , and Investment Clubs . 2012 free tax return filing Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 537 Installment Sales 590 Individual Retirement Arrangements (IRAs) 925 Passive Activity and At-Risk Rules 1212 Guide to Original Issue Discount (OID) Instruments Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends Schedule D (Form 1040) Capital Gains and Losses 1040 U. 2012 free tax return filing S. 2012 free tax return filing Individual Income Tax Return 1040A U. 2012 free tax return filing S. 2012 free tax return filing Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1099 General Instructions for Certain Information Returns 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 3115 Application for Change in Accounting Method 6251 Alternative Minimum Tax — Individuals 8582 Passive Activity Loss Limitations 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends 8815 Exclusion of Interest From Series EE and I U. 2012 free tax return filing S. 2012 free tax return filing Savings Bonds Issued After 1989 8818 Optional Form To Record Redemption of Series EE and I U. 2012 free tax return filing S. 2012 free tax return filing Savings Bonds Issued After 1989 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets 8960 Net Investment Income Tax—Individuals, Estates, and Trusts See chapter 5, How To Get Tax Help , for information about getting these publications and forms. 2012 free tax return filing General Information A few items of general interest are covered here. 2012 free tax return filing Recordkeeping. 2012 free tax return filing You should keep a list showing sources and investment income amounts you receive during the year. 2012 free tax return filing Also keep the forms you receive showing your investment income (Forms 1099-INT, Interest Income, and 1099-DIV, Dividends and Distributions, for example) as an important part of your records. 2012 free tax return filing Net investment income tax (NIIT). 2012 free tax return filing   Beginning in 2013, you may be subject to the NIIT. 2012 free tax return filing The NIIT is a 3. 2012 free tax return filing 8% tax on the lesser of your net investment income or the amount of your modified adjusted gross income (MAGI) that is over a threshold amount based on your filing status. 2012 free tax return filing    Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household (with qualifying person) $200,000 Qualifying Widow(er) with dependent child $250,000    For more information, see Form 8960 and Instructions for Form 8960. 2012 free tax return filing Tax on unearned income of certain children. 2012 free tax return filing   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. 2012 free tax return filing This may happen if all of the following are true. 2012 free tax return filing The child had more than $2,000 of unearned income. 2012 free tax return filing The child is required to file a tax return. 2012 free tax return filing The child was: Under age 18 at the end of 2013, Age 18 at the end of 2013 and did not have earned income that was more than half of the child's support, or A full-time student over age 18 and under age 24 at the end of 2013 and did not have earned income that was more than half of the child's support. 2012 free tax return filing At least one of the child's parents was alive at the end of 2013. 2012 free tax return filing The child does not file a joint return for 2013. 2012 free tax return filing A child born on January 1, 1996, is considered to be age 18 at the end of 2013; a child born on January 1, 1995, is considered to be age 19 at the end of 2013; a child born on January 1, 1990, is considered to be age 24 at the end of 2013. 2012 free tax return filing   If all of these statements are true, Form 8615 must be completed and attached to the child's tax return. 2012 free tax return filing If any of these statements is not true, Form 8615 is not required and the child's income is taxed at his or her own tax rate. 2012 free tax return filing    However, the parent can choose to include the child's interest and dividends on the parent's return if certain requirements are met. 2012 free tax return filing Use Form 8814 for this purpose. 2012 free tax return filing   For more information about the tax on unearned income of children and the parents' election, see Publication 929, Tax Rules for Children and Dependents. 2012 free tax return filing Beneficiary of an estate or trust. 2012 free tax return filing   Interest, dividends, and other investment income you receive as a beneficiary of an estate or trust is generally taxable income. 2012 free tax return filing You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. 2012 free tax return filing , from the fiduciary. 2012 free tax return filing Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. 2012 free tax return filing Social security number (SSN). 2012 free tax return filing   You must give your name and SSN or individual tax identification number (ITIN) to any person required by federal tax law to make a return, statement, or other document that relates to you. 2012 free tax return filing This includes payers of interest and dividends. 2012 free tax return filing If you do not give your SSN or ITIN to the payer of interest, you may have to pay a penalty. 2012 free tax return filing SSN for joint account. 2012 free tax return filing   If the funds in a joint account belong to one person, list that person's name first on the account and give that person's SSN to the payer. 2012 free tax return filing (For information on who owns the funds in a joint account, see Joint accounts , later. 2012 free tax return filing ) If the joint account contains combined funds, give the SSN of the person whose name is listed first on the account. 2012 free tax return filing This is because only one name and SSN can be shown on Form 1099. 2012 free tax return filing   These rules apply both to joint ownership by a married couple and to joint ownership by other individuals. 2012 free tax return filing For example, if you open a joint savings account with your child using funds belonging to the child, list the child's name first on the account and give the child's SSN. 2012 free tax return filing Custodian account for your child. 2012 free tax return filing   If your child is the actual owner of an account that is recorded in your name as custodian for the child, give the child's SSN to the payer. 2012 free tax return filing For example, you must give your child's SSN to the payer of dividends on stock owned by your child, even though the dividends are paid to you as custodian. 2012 free tax return filing Penalty for failure to supply SSN. 2012 free tax return filing   You will be subject to a penalty if, when required, you fail to: Include your SSN on any return, statement, or other document, Give your SSN to another person who must include it on any return, statement, or other document, or Include the SSN of another person on any return, statement, or other document. 2012 free tax return filing The penalty is $50 for each failure up to a maximum penalty of $100,000 for any calendar year. 2012 free tax return filing   You will not be subject to this penalty if you can show that your failure to provide the SSN was due to reasonable cause and not to willful neglect. 2012 free tax return filing   If you fail to supply an SSN, you may also be subject to backup withholding. 2012 free tax return filing Backup withholding. 2012 free tax return filing   Your investment income is generally not subject to regular withholding. 2012 free tax return filing However, it may be subject to backup withholding to ensure that income tax is collected on the income. 2012 free tax return filing Under backup withholding, the bank, broker, or other payer of interest, original issue discount (OID), dividends, cash patronage dividends, or royalties must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. 2012 free tax return filing   Backup withholding applies if: You do not give the payer your identification number (either a social security number or an employer identification number) in the required manner, The IRS notifies the payer that you gave an incorrect identification number, The IRS notifies the payer that you are subject to backup withholding on interest or dividends because you have underreported interest or dividends on your income tax return, or You are required, but fail, to certify that you are not subject to backup withholding for the reason described in (3). 2012 free tax return filing Certification. 2012 free tax return filing   For new accounts paying interest or dividends, you must certify under penalties of perjury that your SSN is correct and that you are not subject to backup withholding. 2012 free tax return filing Your payer will give you a Form W-9, Request for Taxpayer Identification Number and Certification, or similar form, to make this certification. 2012 free tax return filing If you fail to make this certification, backup withholding may begin immediately on your new account or investment. 2012 free tax return filing Underreported interest and dividends. 2012 free tax return filing   You will be considered to have underreported your interest and dividends if the IRS has determined for a tax year that: You failed to include any part of a reportable interest or dividend payment required to be shown on your return, or You were required to file a return and to include a reportable interest or dividend payment on that return, but you failed to file the return. 2012 free tax return filing How to stop backup withholding due to underreporting. 2012 free tax return filing   If you have been notified that you underreported interest or dividends, you can request a determination from the IRS to prevent backup withholding from starting or to stop backup withholding once it has begun. 2012 free tax return filing You must show that at least one of the following situations applies. 2012 free tax return filing No underreporting occurred. 2012 free tax return filing You have a bona fide dispute with the IRS about whether underreporting occurred. 2012 free tax return filing Backup withholding will cause or is causing an undue hardship, and it is unlikely that you will underreport interest and dividends in the future. 2012 free tax return filing You have corrected the underreporting by filing a return if you did not previously file one and by paying all taxes, penalties, and interest due for any underreported interest or dividend payments. 2012 free tax return filing   If the IRS determines that backup withholding should stop, it will provide you with a certification and will notify the payers who were sent notices earlier. 2012 free tax return filing How to stop backup withholding due to an incorrect identification number. 2012 free tax return filing   If you have been notified by a payer that you are subject to backup withholding because you have provided an incorrect SSN or employer identification number, you can stop it by following the instructions the payer gives you. 2012 free tax return filing Reporting backup withholding. 2012 free tax return filing   If backup withholding is deducted from your interest or dividend income or other reportable payment, the bank or other business must give you an information return for the year (for example, a Form 1099-INT) indicating the amount withheld. 2012 free tax return filing The information return will show any backup withholding as “Federal income tax withheld. 2012 free tax return filing ” Nonresident aliens. 2012 free tax return filing    Generally, payments made to nonresident aliens are not subject to backup withholding. 2012 free tax return filing You can use Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, to certify exempt status. 2012 free tax return filing However, this does not exempt you from the 30% (or lower treaty) withholding rate that may apply to your investment income. 2012 free tax return filing For information on the 30% rate, see Publication 519, U. 2012 free tax return filing S. 2012 free tax return filing Tax Guide for Aliens. 2012 free tax return filing Penalties. 2012 free tax return filing   There are civil and criminal penalties for giving false information to avoid backup withholding. 2012 free tax return filing The civil penalty is $500. 2012 free tax return filing The criminal penalty, upon conviction, is a fine of up to $1,000, or imprisonment of up to 1 year, or both. 2012 free tax return filing Where to report investment income. 2012 free tax return filing   Table 1-1 gives an overview of the forms and schedules to use to report some common types of investment income. 2012 free tax return filing But see the rest of this publication for detailed information about reporting investment income. 2012 free tax return filing Joint accounts. 2012 free tax return filing   If two or more persons hold property (such as a savings account, bond, or stock) as joint tenants, tenants by the entirety, or tenants in common, each person's share of any interest or dividends from the property is determined by local law. 2012 free tax return filing Community property states. 2012 free tax return filing   If you are married and receive a distribution that is community income, one-half of the distribution is generally considered to be received by each spouse. 2012 free tax return filing If you file separate returns, you must each report one-half of any taxable distribution. 2012 free tax return filing See Publication 555, Community Property, for more information on community income. 2012 free tax return filing   If the distribution is not considered community property and you and your spouse file separate returns, each of you must report your separate taxable distributions. 2012 free tax return filing Example. 2012 free tax return filing You and your spouse have a joint money market account. 2012 free tax return filing Under state law, half the income from the account belongs to you, and half belongs to your spouse. 2012 free tax return filing If you file separate returns, you each report half the income. 2012 free tax return filing Income from property given to a child. 2012 free tax return filing   Property you give as a parent to your child under the Model Gifts of Securities to Minors Act, the Uniform Gifts to Minors Act, or any similar law becomes the child's property. 2012 free tax return filing   Income from the property is taxable to the child, except that any part used to satisfy a legal obligation to support the child is taxable to the parent or guardian having that legal obligation. 2012 free tax return filing Savings account with parent as trustee. 2012 free tax return filing   Interest income from a savings account opened for a minor child, but placed in the name and subject to the order of the parents as trustees, is taxable to the child if, under the law of the state in which the child resides, both of the following are true. 2012 free tax return filing The savings account legally belongs to the child. 2012 free tax return filing The parents are not legally permitted to use any of the funds to support the child. 2012 free tax return filing Table 1-1. 2012 free tax return filing Where To Report Common Types of Investment Income (For detailed information about reporting investment income, see the rest of this publication, especially How To Report Interest Income and How To Report Dividend Income in chapter 1. 2012 free tax return filing ) Type of Income If you file Form 1040, report on . 2012 free tax return filing . 2012 free tax return filing . 2012 free tax return filing If you can file Form 1040A, report on . 2012 free tax return filing . 2012 free tax return filing . 2012 free tax return filing If you can file Form 1040EZ, report on . 2012 free tax return filing . 2012 free tax return filing . 2012 free tax return filing Tax-exempt interest (Form 1099-INT, box 8) Line 8b Line 8b Space to the left of line 2 (enter “TEI” and the amount) Taxable interest that totals $1,500 or less Line 8a (You may need to file Schedule B as well. 2012 free tax return filing ) Line 8a (You may need to file Schedule B as well. 2012 free tax return filing ) Line 2 Taxable interest that totals more than $1,500 Line 8a; also use Schedule B, line 1 Line 8a; also use Schedule B, line 1   Savings bond interest you will exclude because of higher education expenses Schedule B; also use Form 8815 Schedule B; also use Form 8815   Ordinary dividends that total $1,500 or less Line 9a (You may need to file Schedule B as well. 2012 free tax return filing ) Line 9a (You may need to file Schedule B as well. 2012 free tax return filing )   Ordinary dividends that total more than $1,500 Line 9a; also use Schedule B, line 5 Line 9a; also use Schedule B, line 5   Qualified dividends (if you do not have to file Schedule D) Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 2 Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 2   Qualified dividends (if you have to file Schedule D) Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet, line 2 You cannot use Form 1040A    You cannot use Form 1040EZ Capital gain distributions (if you do not have to file Schedule D) Line 13; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 3 Line 10; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 3   Capital gain distributions (if you have to file Schedule D) Schedule D, line 13; also use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet     Section 1250, 1202, or collectibles gain (Form 1099-DIV, box 2b, 2c, or 2d) Form 8949 and Schedule D     Nondividend distributions (Form 1099-DIV, box 3) Generally not reported*     Undistributed capital gains (Form 2439, boxes 1a - 1d) Schedule D     Gain or loss from sales of stocks or bonds Line 13; also use Form 8949, Schedule D, and the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet You cannot use Form 1040A   Gain or loss from exchanges of like-kind investment property Line 13; also use Schedule D, Form 8824, and the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet     *Report any amounts in excess of your basis in your mutual fund shares on Form 8949. 2012 free tax return filing Use Part II if you held the shares more than 1 year. 2012 free tax return filing Use Part I if you held your mutual fund shares 1 year or less. 2012 free tax return filing For details on Form 8949, see Reporting Capital Gains and Losses in chapter 4, and the Instructions for Form 8949. 2012 free tax return filing Accuracy-related penalty. 2012 free tax return filing   An accuracy-related penalty of 20% can be charged for underpayments of tax due to negligence or disregard of rules or regulations or substantial understatement of tax. 2012 free tax return filing For information on the penalty and any interest that applies, see Penalties in chapter 2. 2012 free tax return filing Interest Income This section discusses the tax treatment of different types of interest income. 2012 free tax return filing In general, any interest that you receive or that is credited to your account and can be withdrawn is taxable income. 2012 free tax return filing (It does not have to be entered in your passbook. 2012 free tax return filing ) Exceptions to this rule are discussed later. 2012 free tax return filing Form 1099-INT. 2012 free tax return filing   Interest income is generally reported to you on Form 1099-INT, or a similar statement, by banks, savings and loans, and other payers of interest. 2012 free tax return filing This form shows you the interest you received during the year. 2012 free tax return filing Keep this form for your records. 2012 free tax return filing You do not have to attach it to your tax return. 2012 free tax return filing   Report on your tax return the total interest income you receive for the tax year. 2012 free tax return filing Interest not reported on Form 1099-INT. 2012 free tax return filing   Even if you do not receive Form 1099-INT, you must still report all of your interest income. 2012 free tax return filing For example, you may receive distributive shares of interest from partnerships or S corporations. 2012 free tax return filing This interest is reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. 2012 free tax return filing , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. 2012 free tax return filing Nominees. 2012 free tax return filing   Generally, if someone receives interest as a nominee for you, that person must give you a Form 1099-INT showing the interest received on your behalf. 2012 free tax return filing   If you receive a Form 1099-INT that includes amounts belonging to another person, see the discussion on Nominee distributions , later, under How To Report Interest Income. 2012 free tax return filing Incorrect amount. 2012 free tax return filing   If you receive a Form 1099-INT that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. 2012 free tax return filing The new Form 1099-INT you receive will be marked “Corrected. 2012 free tax return filing ” Form 1099-OID. 2012 free tax return filing   Reportable interest income also may be shown on Form 1099-OID, Original Issue Discount. 2012 free tax return filing For more information about amounts shown on this form, see Original Issue Discount (OID) , later in this chapter. 2012 free tax return filing Exempt-interest dividends. 2012 free tax return filing   Exempt-interest dividends you receive from a mutual fund or other regulated investment company, including those received from a qualified fund of funds in any tax year beginning after December 22, 2010, are not included in your taxable income. 2012 free tax return filing (However, see Information reporting requirement , next. 2012 free tax return filing ) Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. 2012 free tax return filing You do not reduce your basis for distributions that are exempt-interest dividends. 2012 free tax return filing Information reporting requirement. 2012 free tax return filing   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file. 2012 free tax return filing This is an information reporting requirement and does not change the exempt-interest dividends into taxable income. 2012 free tax return filing See How To Report Interest Income , later. 2012 free tax return filing Note. 2012 free tax return filing Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. 2012 free tax return filing The exempt-interest dividends subject to the alternative minimum tax are shown in box 11 of Form 1099-DIV. 2012 free tax return filing See Form 6251 and its instructions for more information about this tax. 2012 free tax return filing Private activity bonds are discussed later under State or Local Government Obligations. 2012 free tax return filing Interest on VA dividends. 2012 free tax return filing   Interest on insurance dividends left on deposit with the Department of Veterans Affairs (VA) is not taxable. 2012 free tax return filing This includes interest paid on dividends on converted United States Government Life Insurance policies and on National Service Life Insurance policies. 2012 free tax return filing Individual retirement arrangements (IRAs). 2012 free tax return filing   Interest on a Roth IRA generally is not taxable. 2012 free tax return filing Interest on a traditional IRA is tax deferred. 2012 free tax return filing You generally do not include it in your income until you make withdrawals from the IRA. 2012 free tax return filing See Publication 590 for more information. 2012 free tax return filing Taxable Interest — General Taxable interest includes interest you receive from bank accounts, loans you make to others, and other sources. 2012 free tax return filing The following are some sources of taxable interest. 2012 free tax return filing Dividends that are actually interest. 2012 free tax return filing   Certain distributions commonly called dividends are actually interest. 2012 free tax return filing You must report as interest so-called “dividends” on deposits or on share accounts in: Cooperative banks, Credit unions, Domestic building and loan associations, Domestic savings and loan associations, Federal savings and loan associations, and Mutual savings banks. 2012 free tax return filing  The “dividends” will be shown as interest income on Form 1099-INT. 2012 free tax return filing Money market funds. 2012 free tax return filing   Money market funds are offered by nonbank financial institutions such as mutual funds and stock brokerage houses, and pay dividends. 2012 free tax return filing Generally, amounts you receive from money market funds should be reported as dividends, not as interest. 2012 free tax return filing Certificates of deposit and other deferred interest accounts. 2012 free tax return filing   If you open any of these accounts, interest may be paid at fixed intervals of 1 year or less during the term of the account. 2012 free tax return filing You generally must include this interest in your income when you actually receive it or are entitled to receive it without paying a substantial penalty. 2012 free tax return filing The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. 2012 free tax return filing If interest is deferred for more than 1 year, see Original Issue Discount (OID) , later. 2012 free tax return filing Interest subject to penalty for early withdrawal. 2012 free tax return filing   If you withdraw funds from a deferred interest account before maturity, you may have to pay a penalty. 2012 free tax return filing You must report the total amount of interest paid or credited to your account during the year, without subtracting the penalty. 2012 free tax return filing See Penalty on early withdrawal of savings under How To Report Interest Income, later, for more information on how to report the interest and deduct the penalty. 2012 free tax return filing Money borrowed to invest in certificate of deposit. 2012 free tax return filing   The interest you pay on money borrowed from a bank or savings institution to meet the minimum deposit required for a certificate of deposit from the institution and the interest you earn on the certificate are two separate items. 2012 free tax return filing You must report the total interest you earn on the certificate in your income. 2012 free tax return filing If you itemize deductions, you can deduct the interest you pay as investment interest, up to the amount of your net investment income. 2012 free tax return filing See Interest Expenses in chapter 3. 2012 free tax return filing Example. 2012 free tax return filing You deposited $5,000 with a bank and borrowed $5,000 from the bank to make up the $10,000 minimum deposit required to buy a 6-month certificate of deposit. 2012 free tax return filing The certificate earned $575 at maturity in 2013, but you received only $265, which represented the $575 you earned minus $310 interest charged on your $5,000 loan. 2012 free tax return filing The bank gives you a Form 1099-INT for 2013 showing the $575 interest you earned. 2012 free tax return filing The bank also gives you a statement showing that you paid $310 interest for 2013. 2012 free tax return filing You must include the $575 in your income. 2012 free tax return filing If you itemize your deductions on Schedule A (Form 1040), Itemized Deductions, you can deduct $310, subject to the net investment income limit. 2012 free tax return filing Gift for opening account. 2012 free tax return filing   If you receive noncash gifts or services for making deposits or for opening an account in a savings institution, you may have to report the value as interest. 2012 free tax return filing   For deposits of less than $5,000, gifts or services valued at more than $10 must be reported as interest. 2012 free tax return filing For deposits of $5,000 or more, gifts or services valued at more than $20 must be reported as interest. 2012 free tax return filing The value is determined by the cost to the financial institution. 2012 free tax return filing Example. 2012 free tax return filing You open a savings account at your local bank and deposit $800. 2012 free tax return filing The account earns $20 interest. 2012 free tax return filing You also receive a $15 calculator. 2012 free tax return filing If no other interest is credited to your account during the year, the Form 1099-INT you receive will show $35 interest for the year. 2012 free tax return filing You must report $35 interest income on your tax return. 2012 free tax return filing Interest on insurance dividends. 2012 free tax return filing   Interest on insurance dividends left on deposit with an insurance company that can be withdrawn annually is taxable to you in the year it is credited to your account. 2012 free tax return filing However, if you can withdraw it only on the anniversary date of the policy (or other specified date), the interest is taxable in the year that date occurs. 2012 free tax return filing Prepaid insurance premiums. 2012 free tax return filing   Any increase in the value of prepaid insurance premiums, advance premiums, or premium deposit funds is interest if it is applied to the payment of premiums due on insurance policies or made available for you to withdraw. 2012 free tax return filing U. 2012 free tax return filing S. 2012 free tax return filing obligations. 2012 free tax return filing   Interest on U. 2012 free tax return filing S. 2012 free tax return filing obligations, such as U. 2012 free tax return filing S. 2012 free tax return filing Treasury bills, notes, and bonds, issued by any agency or instrumentality of the United States is taxable for federal income tax purposes. 2012 free tax return filing Interest on tax refunds. 2012 free tax return filing   Interest you receive on tax refunds is taxable income. 2012 free tax return filing Interest on condemnation award. 2012 free tax return filing   If the condemning authority pays you interest to compensate you for a delay in payment of an award, the interest is taxable. 2012 free tax return filing Installment sale payments. 2012 free tax return filing   If a contract for the sale or exchange of property provides for deferred payments, it also usually provides for interest payable with the deferred payments. 2012 free tax return filing That interest is taxable when you receive it. 2012 free tax return filing If little or no interest is provided for in a deferred payment contract, part of each payment may be treated as interest. 2012 free tax return filing See Unstated Interest and Original Issue Discount (OID) in Publication 537. 2012 free tax return filing Interest on annuity contract. 2012 free tax return filing   Accumulated interest on an annuity contract you sell before its maturity date is taxable. 2012 free tax return filing Usurious interest. 2012 free tax return filing   Usurious interest is interest charged at an illegal rate. 2012 free tax return filing This is taxable as interest unless state law automatically changes it to a payment on the principal. 2012 free tax return filing Interest income on frozen deposits. 2012 free tax return filing   Exclude from your gross income interest on frozen deposits. 2012 free tax return filing A deposit is frozen if, at the end of the year, you cannot withdraw any part of the deposit because: The financial institution is bankrupt or insolvent, or The state in which the institution is located has placed limits on withdrawals because other financial institutions in the state are bankrupt or insolvent. 2012 free tax return filing   The amount of interest you must exclude is the interest that was credited on the frozen deposits minus the sum of: The net amount you withdrew from these deposits during the year, and The amount you could have withdrawn as of the end of the year (not reduced by any penalty for premature withdrawals of a time deposit). 2012 free tax return filing If you receive a Form 1099-INT for interest income on deposits that were frozen at the end of 2013, see Frozen deposits under How To Report Interest Income for information about reporting this interest income exclusion on your tax return. 2012 free tax return filing   The interest you exclude is treated as credited to your account in the following year. 2012 free tax return filing You must include it in income in the year you can withdraw it. 2012 free tax return filing Example. 2012 free tax return filing $100 of interest was credited on your frozen deposit during the year. 2012 free tax return filing You withdrew $80 but could not withdraw any more as of the end of the year. 2012 free tax return filing You must include $80 in your income and exclude $20 from your income for the year. 2012 free tax return filing You must include the $20 in your income for the year you can withdraw it. 2012 free tax return filing Bonds traded flat. 2012 free tax return filing    If you buy a bond at a discount when interest has been defaulted or when the interest has accrued but has not been paid, the transaction is described as trading a bond flat. 2012 free tax return filing The defaulted or unpaid interest is not income and is not taxable as interest if paid later. 2012 free tax return filing When you receive a payment of that interest, it is a return of capital that reduces the remaining cost basis of your bond. 2012 free tax return filing Interest that accrues after the date of purchase, however, is taxable interest income for the year received or accrued. 2012 free tax return filing See Bonds Sold Between Interest Dates , later in this chapter. 2012 free tax return filing Below-Market Loans If you make a below-market gift or demand loan, you must report as interest income any forgone interest (defined later) from that loan. 2012 free tax return filing The below-market loan rules and exceptions are described in this section. 2012 free tax return filing For more information, see section 7872 of the Internal Revenue Code and its regulations. 2012 free tax return filing If you receive a below-market loan, you may be able to deduct the forgone interest as well as any interest you actually paid, but not if it is personal interest. 2012 free tax return filing Loans subject to the rules. 2012 free tax return filing   The rules for below-market loans apply to: Gift loans, Pay-related loans, Corporation-shareholder loans, Tax avoidance loans, and Certain loans made to qualified continuing care facilities under a continuing care contract. 2012 free tax return filing A pay-related loan is any below-market loan between an employer and an employee or between an independent contractor and a person for whom the contractor provides services. 2012 free tax return filing A tax avoidance loan is any below-market loan where the avoidance of federal tax is one of the main purposes of the interest arrangement. 2012 free tax return filing Forgone interest. 2012 free tax return filing   For any period, forgone interest is: The amount of interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. 2012 free tax return filing Applicable federal rate. 2012 free tax return filing   Applicable federal rates are published by the IRS each month in the Internal Revenue Bulletin. 2012 free tax return filing Some IRS offices have these bulletins available for research. 2012 free tax return filing See chapter 5, How To Get Tax Help , for other ways to get this information. 2012 free tax return filing Rules for below-market loans. 2012 free tax return filing   The rules that apply to a below-market loan depend on whether the loan is a gift loan, demand loan, or term loan. 2012 free tax return filing Gift and demand loans. 2012 free tax return filing   A gift loan is any below-market loan where the forgone interest is in the nature of a gift. 2012 free tax return filing   A demand loan is a loan payable in full at any time upon demand by the lender. 2012 free tax return filing A demand loan is a below-market loan if no interest is charged or if interest is charged at a rate below the applicable federal rate. 2012 free tax return filing   A demand loan or gift loan that is a below-market loan is generally treated as an arm's-length transaction in which the lender is treated as having made: A loan to the borrower in exchange for a note that requires the payment of interest at the applicable federal rate, and An additional payment to the borrower in an amount equal to the forgone interest. 2012 free tax return filing The borrower is generally treated as transferring the additional payment back to the lender as interest. 2012 free tax return filing The lender must report that amount as interest income. 2012 free tax return filing   The lender's additional payment to the borrower is treated as a gift, dividend, contribution to capital, pay for services, or other payment, depending on the substance of the transaction. 2012 free tax return filing The borrower may have to report this payment as taxable income, depending on its classification. 2012 free tax return filing These transfers are considered to occur annually, generally on December 31. 2012 free tax return filing Term loans. 2012 free tax return filing   A term loan is any loan that is not a demand loan. 2012 free tax return filing A term loan is a below-market loan if the amount of the loan is more than the present value of all payments due under the loan. 2012 free tax return filing   A lender who makes a below-market term loan other than a gift loan is treated as transferring an additional lump-sum cash payment to the borrower (as a dividend, contribution to capital, etc. 2012 free tax return filing ) on the date the loan is made. 2012 free tax return filing The amount of this payment is the amount of the loan minus the present value, at the applicable federal rate, of all payments due under the loan. 2012 free tax return filing An equal amount is treated as original issue discount (OID). 2012 free tax return filing The lender must report the annual part of the OID as interest income. 2012 free tax return filing The borrower may be able to deduct the OID as interest expense. 2012 free tax return filing See Original Issue Discount (OID) , later. 2012 free tax return filing Exceptions to the below-market loan rules. 2012 free tax return filing   Exceptions to the below-market loan rules are discussed here. 2012 free tax return filing Exception for loans of $10,000 or less. 2012 free tax return filing   The rules for below-market loans do not apply to any day on which the total outstanding amount of loans between the borrower and lender is $10,000 or less. 2012 free tax return filing This exception applies only to: Gift loans between individuals if the gift loan is not directly used to buy or carry income-producing assets, and Pay-related loans or corporation-shareholder loans if the avoidance of federal tax is not a principal purpose of the interest arrangement. 2012 free tax return filing This exception does not apply to a term loan described in (2) earlier that previously has been subject to the below-market loan rules. 2012 free tax return filing Those rules will continue to apply even if the outstanding balance is reduced to $10,000 or less. 2012 free tax return filing Exception for loans to continuing care facilities. 2012 free tax return filing   Loans to qualified continuing care facilities under continuing care contracts are not subject to the rules for below-market loans for the calendar year if the lender or the lender's spouse is age 62 or older at the end of the year. 2012 free tax return filing For the definitions of qualified continuing care facility and continuing care contract, see Internal Revenue Code section 7872(h). 2012 free tax return filing Exception for loans without significant tax effect. 2012 free tax return filing   Loans are excluded from the below-market loan rules if their interest arrangements do not have a significant effect on the federal tax liability of the borrower or the lender. 2012 free tax return filing These loans include: Loans made available by the lender to the general public on the same terms and conditions that are consistent with the lender's customary business practice; Loans subsidized by a federal, state, or municipal government that are made available under a program of general application to the public; Certain employee-relocation loans; Certain loans from a foreign person, unless the interest income would be effectively connected with the conduct of a U. 2012 free tax return filing S. 2012 free tax return filing trade or business and would not be exempt from U. 2012 free tax return filing S. 2012 free tax return filing tax under an income tax treaty; Gift loans to a charitable organization, contributions to which are deductible, if the total outstanding amount of loans between the organization and lender is $250,000 or less at all times during the tax year; and Other loans on which the interest arrangement can be shown to have no significant effect on the federal tax liability of the lender or the borrower. 2012 free tax return filing For a loan described in (6) above, all the facts and circumstances are used to determine if the interest arrangement has a significant effect on the federal tax liability of the lender or borrower. 2012 free tax return filing Some factors to be considered are: Whether items of income and deduction generated by the loan offset each other; The amount of these items; The cost to you of complying with the below-market loan rules, if they were to apply; and Any reasons other than taxes for structuring the transaction as a below-market loan. 2012 free tax return filing If you structure a transaction to meet this exception and one of the principal purposes of that structure is the avoidance of federal tax, the loan will be considered a tax-avoidance loan, and this exception will not apply. 2012 free tax return filing Limit on forgone interest for gift loans of $100,000 or less. 2012 free tax return filing   For gift loans between individuals, if the outstanding loans between the lender and borrower total $100,000 or less, the forgone interest to be included in income by the lender and deducted by the borrower is limited to the amount of the borrower's net investment income for the year. 2012 free tax return filing If the borrower's net investment income is $1,000 or less, it is treated as zero. 2012 free tax return filing This limit does not apply to a loan if the avoidance of federal tax is one of the main purposes of the interest arrangement. 2012 free tax return filing Effective dates. 2012 free tax return filing    These rules apply to term loans made after June 6, 1984, and to demand loans outstanding after that date. 2012 free tax return filing U. 2012 free tax return filing S. 2012 free tax return filing Savings Bonds This section provides tax information on U. 2012 free tax return filing S. 2012 free tax return filing savings bonds. 2012 free tax return filing It explains how to report the interest income on these bonds and how to treat transfers of these bonds. 2012 free tax return filing U. 2012 free tax return filing S. 2012 free tax return filing savings bonds currently offered to individuals include Series EE bonds and Series I bonds. 2012 free tax return filing For other information on U. 2012 free tax return filing S. 2012 free tax return filing savings bonds, write to:  For Series HH/H: Bureau of the Fiscal Service Division of Customer Assistance P. 2012 free tax return filing O. 2012 free tax return filing Box 2186 Parkersburg, WV 26106-2186  For Series EE and I paper savings bonds: Bureau of the Fiscal Service Division of Customer Assistance P. 2012 free tax return filing O. 2012 free tax return filing Box 7012 Parkersburg, WV 26106-7012  For Series EE and I electronic bonds: Bureau of the Fiscal Service  Division of Customer Assistance P. 2012 free tax return filing O. 2012 free tax return filing Box 7015 Parkersburg, WV 26106-7015 Or, on the Internet, visit: www. 2012 free tax return filing treasurydirect. 2012 free tax return filing gov/indiv/indiv. 2012 free tax return filing htm. 2012 free tax return filing Accrual method taxpayers. 2012 free tax return filing   If you use an accrual method of accounting, you must report interest on U. 2012 free tax return filing S. 2012 free tax return filing savings bonds each year as it accrues. 2012 free tax return filing You cannot postpone reporting interest until you receive it or until the bonds mature. 2012 free tax return filing Cash method taxpayers. 2012 free tax return filing   If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U. 2012 free tax return filing S. 2012 free tax return filing savings bonds when you receive it. 2012 free tax return filing But see Reporting options for cash method taxpayers , later. 2012 free tax return filing Series HH bonds. 2012 free tax return filing   These bonds were issued at face value. 2012 free tax return filing Interest is paid twice a year by direct deposit to your bank account. 2012 free tax return filing If you are a cash method taxpayer, you must report interest on these bonds as income in the year you receive it. 2012 free tax return filing   Series HH bonds were first offered in 1980 and last offered in August 2004. 2012 free tax return filing Before 1980, series H bonds were issued. 2012 free tax return filing Series H bonds are treated the same as series HH bonds. 2012 free tax return filing If you are a cash method taxpayer, you must report the interest when you receive it. 2012 free tax return filing   Series H bonds have a maturity period of 30 years. 2012 free tax return filing Series HH bonds mature in 20 years. 2012 free tax return filing The last series H bonds matured in 2009. 2012 free tax return filing The last series HH bonds will mature in 2024. 2012 free tax return filing Series EE and series I bonds. 2012 free tax return filing   Interest on these bonds is payable when you redeem the bonds. 2012 free tax return filing The difference between the purchase price and the redemption value is taxable interest. 2012 free tax return filing Series EE bonds. 2012 free tax return filing   Series EE bonds were first offered in January 1980 and have a maturity period of 30 years. 2012 free tax return filing Before July 1980, series E bonds were issued. 2012 free tax return filing The original 10-year maturity period of series E bonds has been extended to 40 years for bonds issued before December 1965 and 30 years for bonds issued after November 1965. 2012 free tax return filing Paper series EE and series E bonds are issued at a discount. 2012 free tax return filing The face value is payable to you at maturity. 2012 free tax return filing Electronic series EE bonds are issued at their face value. 2012 free tax return filing The face value plus accrued interest is payable to you at maturity. 2012 free tax return filing As of January 1, 2012, paper savings bonds were no longer sold at financial institutions. 2012 free tax return filing    Owners of paper series EE bonds can convert them to electronic bonds. 2012 free tax return filing These converted bonds do not retain the denomination listed on the paper certificate but are posted at their purchase price (with accrued interest). 2012 free tax return filing Series I bonds. 2012 free tax return filing   Series I bonds were first offered in 1998. 2012 free tax return filing These are inflation-indexed bonds issued at their face amount with a maturity period of 30 years. 2012 free tax return filing The face value plus all accrued interest is payable to you at maturity. 2012 free tax return filing Reporting options for cash method taxpayers. 2012 free tax return filing   If you use the cash method of reporting income, you can report the interest on series EE, series E, and series I bonds in either of the following ways. 2012 free tax return filing Method 1. 2012 free tax return filing Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year in which they mature. 2012 free tax return filing (However, see Savings bonds traded , later. 2012 free tax return filing )  Note. 2012 free tax return filing Series EE bonds issued in 1983 matured in 2013. 2012 free tax return filing If you have used method 1, you generally must report the interest on these bonds on your 2013 return. 2012 free tax return filing The last series E bonds were issued in 1980 and matured in 2010. 2012 free tax return filing If you used method 1, you generally should have reported the interest on these bonds on your 2010 return. 2012 free tax return filing Method 2. 2012 free tax return filing Choose to report the increase in redemption value as interest each year. 2012 free tax return filing  You must use the same method for all series EE, series E, and series I bonds you own. 2012 free tax return filing If you do not choose method 2 by reporting the increase in redemption value as interest each year, you must use method 1. 2012 free tax return filing If you plan to cash your bonds in the same year you will pay for higher educational expenses, you may want to use method 1 because you may be able to exclude the interest from your income. 2012 free tax return filing To learn how, see Education Savings Bond Program, later. 2012 free tax return filing Change from method 1. 2012 free tax return filing   If you want to change your method of reporting the interest from method 1 to method 2, you can do so without permission from the IRS. 2012 free tax return filing In the year of change, you must report all interest accrued to date and not previously reported for all your bonds. 2012 free tax return filing   Once you choose to report the interest each year, you must continue to do so for all series EE, series E, and series I bonds you own and for any you get later, unless you request permission to change, as explained next. 2012 free tax return filing Change from method 2. 2012 free tax return filing   To change from method 2 to method 1, you must request permission from the IRS. 2012 free tax return filing Permission for the change is automatically granted if you send the IRS a statement that meets all the following requirements. 2012 free tax return filing You have typed or printed the following number at the top: “131. 2012 free tax return filing ” It includes your name and social security number under “131. 2012 free tax return filing ” It includes the year of change (both the beginning and ending dates). 2012 free tax return filing It identifies the savings bonds for which you are requesting this change. 2012 free tax return filing It includes your agreement to: Report all interest on any bonds acquired during or after the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest; and Report all interest on the bonds acquired before the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest, with the exception of the interest reported in prior tax years. 2012 free tax return filing   You must attach this statement to your tax return for the year of change, which you must file by the due date (including extensions). 2012 free tax return filing   You can have an automatic extension of 6 months from the due date of your return for the year of change (excluding extensions) to file the statement with an amended return. 2012 free tax return filing On the statement, type or print “Filed pursuant to section 301. 2012 free tax return filing 9100-2. 2012 free tax return filing ” To get this extension, you must have filed your original return for the year of the change by the due date (including extensions). 2012 free tax return filing    By the date you file the original statement with your return, you must also send a signed copy to the address below. 2012 free tax return filing    Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) P. 2012 free tax return filing O. 2012 free tax return filing Box 7604 Benjamin Franklin Station Washington, DC 20044   If you use a private delivery service, send the signed copy to the address below. 2012 free tax return filing Internal Revenue Service Attention: CC:IT&A  (Automatic Rulings Branch) Room 5336 1111 Constitution Avenue, NW Washington, DC 20224    Instead of filing this statement, you can request permission to change from method 2 to method 1 by filing Form 3115. 2012 free tax return filing In that case, follow the form instructions for an automatic change. 2012 free tax return filing No user fee is required. 2012 free tax return filing Co-owners. 2012 free tax return filing   If a U. 2012 free tax return filing S. 2012 free tax return filing savings bond is issued in the names of co-owners, such as you and your child or you and your spouse, interest on the bond is generally taxable to the co-owner who bought the bond. 2012 free tax return filing One co-owner's funds used. 2012 free tax return filing   If you used your funds to buy the bond, you must pay the tax on the interest. 2012 free tax return filing This is true even if you let the other co-owner redeem the bond and keep all the proceeds. 2012 free tax return filing Under these circumstances, the co-owner who redeemed the bond will receive a Form 1099-INT at the time of redemption and must provide you with another Form 1099-INT showing the amount of interest from the bond taxable to you. 2012 free tax return filing The co-owner who redeemed the bond is a “nominee. 2012 free tax return filing ” See Nominee distributions under How To Report Interest Income, later, for more information about how a person who is a nominee reports interest income belonging to another person. 2012 free tax return filing Both co-owners' funds used. 2012 free tax return filing   If you and the other co-owner each contribute part of the bond's purchase price, the interest is generally taxable to each of you, in proportion to the amount each of you paid. 2012 free tax return filing Community property. 2012 free tax return filing   If you and your spouse live in a community property state and hold bonds as community property, one-half of the interest is considered received by each of you. 2012 free tax return filing If you file separate returns, each of you generally must report one-half of the bond interest. 2012 free tax return filing For more information about community property, see Publication 555. 2012 free tax return filing Table 1-2. 2012 free tax return filing   These rules are also shown in Table 1-2. 2012 free tax return filing Child as only owner. 2012 free tax return filing   Interest on U. 2012 free tax return filing S. 2012 free tax return filing savings bonds bought for and registered only in the name of your child is income to your child, even if you paid for the bonds and are named as beneficiary. 2012 free tax return filing If the bonds are series EE, series E, or series I bonds, the interest on the bonds is income to your child in the earlier of the year the bonds are cashed or disposed of or the year the bonds mature, unless your child chooses to report the interest income each year. 2012 free tax return filing Choice to report interest each year. 2012 free tax return filing   The choice to report the accrued interest each year can be made either by your child or by you for your child. 2012 free tax return filing This choice is made by filing an income tax return that shows all the interest earned to date, and by stating on the return that your child chooses to report the interest each year. 2012 free tax return filing Either you or your child should keep a copy of this return. 2012 free tax return filing   Unless your child is otherwise required to file a tax return for any year after making this choice, your child does not have to file a return only to report the annual accrual of U. 2012 free tax return filing S. 2012 free tax return filing savings bond interest under this choice. 2012 free tax return filing However, see Tax on unearned income of certain children , earlier, under General Information. 2012 free tax return filing Neither you nor your child can change the way you report the interest unless you request permission from the IRS, as discussed earlier under Change from method 2 . 2012 free tax return filing Ownership transferred. 2012 free tax return filing   If you bought series E, series EE, or series I bonds entirely with your own funds and had them reissued in your co-owner's name or beneficiary's name alone, you must include in your gross income for the year of reissue all interest that you earned on these bonds and have not previously reported. 2012 free tax return filing But, if the bonds were reissued in your name alone, you do not have to report the interest accrued at that time. 2012 free tax return filing   This same rule applies when bonds (other than bonds held as community property) are transferred between spouses or incident to divorce. 2012 free tax return filing Example. 2012 free tax return filing You bought series EE bonds entirely with your own funds. 2012 free tax return filing You did not choose to report the accrued interest each year. 2012 free tax return filing Later, you transfer the bonds to your former spouse under a divorce agreement. 2012 free tax return filing You must include the deferred accrued interest, from the date of the original issue of the bonds to the date of transfer, in your income in the year of transfer. 2012 free tax return filing Your former spouse includes in income the interest on the bonds from the date of transfer to the date of redemption. 2012 free tax return filing Table 1-2. 2012 free tax return filing Who Pays the Tax on U. 2012 free tax return filing S. 2012 free tax return filing Savings Bond Interest IF . 2012 free tax return filing . 2012 free tax return filing . 2012 free tax return filing THEN the interest must be reported by . 2012 free tax return filing . 2012 free tax return filing . 2012 free tax return filing you buy a bond in your name and the name of another person as co-owners, using only your own funds you. 2012 free tax return filing you buy a bond in the name of another person, who is the sole owner of the bond the person for whom you bought the bond. 2012 free tax return filing you and another person buy a bond as co-owners, each contributing part of the purchase price both you and the other co-owner, in proportion to the amount each paid for the bond. 2012 free tax return filing you and your spouse, who live in a community property state, buy a bond that is community property you and your spouse. 2012 free tax return filing If you file separate returns, both you and your spouse generally report one-half of the interest. 2012 free tax return filing Purchased jointly. 2012 free tax return filing   If you and a co-owner each contributed funds to buy series E, series EE, or series I bonds jointly and later have the bonds reissued in the co-owner's name alone, you must include in your gross income for the year of reissue your share of all the interest earned on the bonds that you have not previously reported. 2012 free tax return filing The former co-owner does not have to include in gross income at the time of reissue his or her share of the interest earned that was not reported before the transfer. 2012 free tax return filing This interest, however, as well as all interest earned after the reissue, is income to the former co-owner. 2012 free tax return filing   This income-reporting rule also applies when the bonds are reissued in the name of your former co-owner and a new co-owner. 2012 free tax return filing But the new co-owner will report only his or her share of the interest earned after the transfer. 2012 free tax return filing   If bonds that you and a co-owner bought jointly are reissued to each of you separately in the same proportion as your contribution to the purchase price, neither you nor your co-owner has to report at that time the interest earned before the bonds were reissued. 2012 free tax return filing Example 1. 2012 free tax return filing You and your spouse each spent an equal amount to buy a $1,000 series EE savings bond. 2012 free tax return filing The bond was issued to you and your spouse as co-owners. 2012 free tax return filing You both postpone reporting interest on the bond. 2012 free tax return filing You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. 2012 free tax return filing At that time neither you nor your spouse has to report the interest earned to the date of reissue. 2012 free tax return filing Example 2. 2012 free tax return filing You bought a $1,000 series EE savings bond entirely with your own funds. 2012 free tax return filing The bond was issued to you and your spouse as co-owners. 2012 free tax return filing You both postponed reporting interest on the bond. 2012 free tax return filing You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. 2012 free tax return filing You must report half the interest earned to the date of reissue. 2012 free tax return filing Transfer to a trust. 2012 free tax return filing   If you own series E, series EE, or series I bonds and transfer them to a trust, giving up all rights of ownership, you must include in your income for that year the interest earned to the date of transfer if you have not already reported it. 2012 free tax return filing However, if you are considered the owner of the trust and if the increase in value both before and after the transfer continues to be taxable to you, you can continue to defer reporting the interest earned each year. 2012 free tax return filing You must include the total interest in your income in the year you cash or dispose of the bonds or the year the bonds finally mature, whichever is earlier. 2012 free tax return filing   The same rules apply to previously unreported interest on series EE or series E bonds if the transfer to a trust consisted of series HH or series H bonds you acquired in a trade for the series EE or series E bonds. 2012 free tax return filing See Savings bonds traded , later. 2012 free tax return filing Decedents. 2012 free tax return filing   The manner of reporting interest income on series E, series EE, or series I bonds, after the death of the owner (decedent), depends on the accounting and income-reporting methods previously used by the decedent. 2012 free tax return filing Decedent who reported interest each year. 2012 free tax return filing   If the bonds transferred because of death were owned by a person who used an accrual method, or who used the cash method and had chosen to report the interest each year, the interest earned in the year of death up to the date of death must be reported on that person's final return. 2012 free tax return filing The person who acquires the bonds includes in income only interest earned after the date of death. 2012 free tax return filing Decedent who postponed reporting interest. 2012 free tax return filing   If the transferred bonds were owned by a decedent who had used the cash method and had not chosen to report the interest each year, and who had bought the bonds entirely with his or her own funds, all interest earned before death must be reported in one of the following ways. 2012 free tax return filing The surviving spouse or personal representative (executor, administrator, etc. 2012 free tax return filing ) who files the final income tax return of the decedent can choose to include on that return all interest earned on the bonds before the decedent's death. 2012 free tax return filing The person who acquires the bonds then includes in income only interest earned after the date of death. 2012 free tax return filing If the choice in (1) is not made, the interest earned up to the date of death is income in respect of the decedent and should not be included in the decedent's final return. 2012 free tax return filing All interest earned both before and after the decedent's death (except any part reported by the estate on its income tax return) is income to the person who acquires the bonds. 2012 free tax return filing If that person uses the cash method and does not choose to report the interest each year, he or she can postpone reporting it until the year the bonds are cashed or disposed of or the year they mature, whichever is earlier. 2012 free tax return filing In the year that person reports the interest, he or she can claim a deduction for any federal estate tax paid on the part of the interest included in the decedent's estate. 2012 free tax return filing For more information on income in respect of a decedent, see Publication 559, Survivors, Executors, and Administrators. 2012 free tax return filing Example 1. 2012 free tax return filing Your uncle, a cash method taxpayer, died and left you a $1,000 series EE bond. 2012 free tax return filing He had bought the bond for $500 and had not chosen to report the interest each year. 2012 free tax return filing At the date of death, interest of $200 had accrued on the bond, and its value of $700 was included in your uncle's estate. 2012 free tax return filing Your uncle's executor chose not to include the $200 accrued interest in your uncle's final income tax return. 2012 free tax return filing The $200 is income in respect of the decedent. 2012 free tax return filing You are a cash method taxpayer and do not choose to report the interest each year as it is earned. 2012 free tax return filing If you cash the bond when it reaches maturity value of $1,000, you report $500 interest income—the difference between maturity value of $1,000 and the original cost of $500. 2012 free tax return filing For that year, you can deduct (as a miscellaneous itemized deduction not subject to the 2%-of-adjusted-gross-income limit) any federal estate tax paid because the $200 interest was included in your uncle's estate. 2012 free tax return filing Example 2. 2012 free tax return filing If, in Example 1 , the executor had chosen to include the $200 accrued interest in your uncle's final return, you would report only $300 as interest when you cashed the bond at maturity. 2012 free tax return filing $300 is the interest earned after your uncle's death. 2012 free tax return filing Example 3. 2012 free tax return filing If, in Example 1 , you make or have made the choice to report the increase in redemption value as interest each year, you include in gross income for the year you acquire the bond all of the unreported increase in value of all series E, series EE, and series I bonds you hold, including the $200 on the bond you inherited from your uncle. 2012 free tax return filing Example 4. 2012 free tax return filing When your aunt died, she owned series HH bonds that she had acquired in a trade for series EE bonds. 2012 free tax return filing You were the beneficiary of these bonds. 2012 free tax return filing Your aunt used the cash method and did not choose to report the interest on the series EE bonds each year as it accrued. 2012 free tax return filing Your aunt's executor chose not to include any interest earned before your aunt's death on her final return. 2012 free tax return filing The income in respect of the decedent is the sum of the unreported interest on the series EE bonds and the interest, if any, payable on the series HH bonds but not received as of the date of your aunt's death. 2012 free tax return filing You must report any interest received during the year as income on your return. 2012 free tax return filing The part of the interest payable but not received before your aunt's death is income in respect of the decedent and may qualify for the estate tax deduction. 2012 free tax return filing For information on when to report the interest on the series EE bonds traded, see Savings bonds traded , later. 2012 free tax return filing Savings bonds distributed from a retirement or profit-sharing plan. 2012 free tax return filing   If you acquire a U. 2012 free tax return filing S. 2012 free tax return filing savings bond in a taxable distribution from a retirement or profit-sharing plan, your income for the year of distribution includes the bond's redemption value (its cost plus the interest accrued before the distribution). 2012 free tax return filing When you redeem the bond (whether in the year of distribution or later), your interest income includes only the interest accrued after the bond was distributed. 2012 free tax return filing To figure the interest reported as a taxable distribution and your interest income when you redeem the bond, see Worksheet for savings bonds distributed from a retirement or profit-sharing plan under How To Report Interest Income, later. 2012 free tax return filing Savings bonds traded. 2012 free tax return filing   If you postponed reporting the interest on your series EE or series E bonds, you did not recognize taxable income when you traded the bonds for series HH or series H bonds, unless you received cash in the trade. 2012 free tax return filing (You cannot trade series I bonds for series HH bonds. 2012 free tax return filing After August 31, 2004, you cannot trade any other series of bonds for series HH bonds. 2012 free tax return filing ) Any cash you received is income up to the amount of the interest earned on the bonds traded. 2012 free tax return filing When your series HH or series H bonds mature, or if you dispose of them before maturity, you report as interest the difference between their redemption value and your cost. 2012 free tax return filing Your cost is the sum of the amount you paid for the traded series EE or series E bonds plus any amount you had to pay at the time of the trade. 2012 free tax return filing Example. 2012 free tax return filing You traded series EE bonds (on which you postponed reporting the interest) for $2,500 in series HH bonds and $223 in cash. 2012 free tax return filing You reported the $223 as taxable income on your tax return. 2012 free tax return filing At the time of the trade, the series EE bonds had accrued interest of $523 and a redemption value of $2,723. 2012 free tax return filing You hold the series HH bonds until maturity, when you receive $2,500. 2012 free tax return filing You must report $300 as interest income in the year of maturity. 2012 free tax return filing This is the difference between their redemption value, $2,500, and your cost, $2,200 (the amount you paid for the series EE bonds). 2012 free tax return filing (It is also the difference between the accrued interest of $523 on the series EE bonds and the $223 cash received on the trade. 2012 free tax return filing ) Choice to report interest in year of trade. 2012 free tax return filing   You could have chosen to treat all of the previously unreported accrued interest on series EE or series E bonds traded for series HH bonds as income in the year of the trade. 2012 free tax return filing If you made this choice, it is treated as a change from method 1. 2012 free tax return filing See Change from method 1 under Series EE and series I bonds, earlier. 2012 free tax return filing Form 1099-INT for U. 2012 free tax return filing S. 2012 free tax return filing savings bond interest. 2012 free tax return filing   When you cash a bond, the bank or other payer that redeems it must give you a Form 1099-INT if the interest part of the payment you receive is $10 or more. 2012 free tax return filing Box 3 of your Form 1099-INT should show the interest as the difference between the amount you received and the amount paid for the bond. 2012 free tax return filing However, your Form 1099-INT may show more interest than you have to include on your income tax return. 2012 free tax return filing For example, this may happen if any of the following are true. 2012 free tax return filing You chose to report the increase in the redemption value of the bond each year. 2012 free tax return filing The interest shown on your Form 1099-INT will not be reduced by amounts previously included in income. 2012 free tax return filing You received the bond from a decedent. 2012 free tax return filing The interest shown on your Form 1099-INT will not be reduced by any interest reported by the decedent before death, or on the decedent's final return, or by the estate on the estate's income tax return. 2012 free tax return filing Ownership of the bond was transferred. 2012 free tax return filing The interest shown on your Form 1099-INT will not be reduced by interest that accrued before the transfer. 2012 free tax return filing You were named as a co-owner, and the other co-owner contributed funds to buy the bond. 2012 free tax return filing The interest shown on your Form 1099-INT will not be reduced by the amount you received as nominee for the other co-owner. 2012 free tax return filing (See Co-owners , earlier in this section, for more information about the reporting requirements. 2012 free tax return filing ) You received the bond in a taxable distribution from a retirement or profit-sharing plan. 2012 free tax return filing The interest shown on your Form 1099-INT will not be reduced by the interest portion of the amount taxable as a distribution from the plan and not taxable as interest. 2012 free tax return filing (This amount is generally shown on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2012 free tax return filing , for the year of distribution. 2012 free tax return filing )   For more information on including the correct amount of interest on your return, see U. 2012 free tax return filing S. 2012 free tax return filing savings bond interest previously reported or Nominee distributions under How To Report Interest Income, later. 2012 free tax return filing    Interest on U. 2012 free tax return filing S. 2012 free tax return filing savings bonds is exempt from state and local taxes. 2012 free tax return filing The Form 1099-INT you receive will indicate the amount that is for U. 2012 free tax return filing S. 2012 free tax return filing savings bonds interest in box 3. 2012 free tax return filing Do not include this income on your state or local income tax return. 2012 free tax return filing Education Savings Bond Program You may be able to exclude from income all or part of the interest you receive on the redemption of qualified U. 2012 free tax return filing S. 2012 free tax return filing savings bonds during the year if you pay qualified higher educational expenses during the same year. 2012 free tax return filing This exclusion is known as the Education Savings Bond Program. 2012 free tax return filing You do not qualify for this exclusion if your filing status is married filing separately. 2012 free tax return filing Form 8815. 2012 free tax return filing   Use Form 8815 to figure your exclusion. 2012 free tax return filing Attach the form to your Form 1040 or Form 1040A. 2012 free tax return filing Qualified U. 2012 free tax return filing S. 2012 free tax return filing savings bonds. 2012 free tax return filing   A qualified U. 2012 free tax return filing S. 2012 free tax return filing savings bond is a series EE bond issued after 1989 or a series I bond. 2012 free tax return filing The bond must be issued either in your name (sole owner) or in your and your spouse's names (co-owners). 2012 free tax return filing You must be at least 24 years old before the bond's issue date. 2012 free tax return filing For example, a bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or child. 2012 free tax return filing    The issue date of a bond may be earlier than the date the bond is purchased because the issue date assigned to a bond is the first day of the month in which it is purchased. 2012 free tax return filing Beneficiary. 2012 free tax return filing   You can designate any individual (including a child) as a beneficiary of the bond. 2012 free tax return filing Verification by IRS. 2012 free tax return filing   If you claim the exclusion, the IRS will check it by using bond redemption information from the Department of Treasury. 2012 free tax return filing Qualified expenses. 2012 free tax return filing   Qualified higher educational expenses are tuition and fees required for you, your spouse, or your dependent (for whom you claim an exemption) to attend an eligible educational institution. 2012 free tax return filing   Qualified expenses include any contribution you make to a qualified tuition program or to a Coverdell education savings account. 2012 free tax return filing For information about these programs, see Publication 970, Tax Benefits for Education. 2012 free tax return filing   Qualified expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. 2012 free tax return filing Eligible educational institutions. 2012 free tax return filing   These institutions include most public, private, and nonprofit universities, colleges, and vocational schools that are accredited and eligible to participate in student aid programs run by the Department of Education. 2012 free tax return filing Reduction for certain benefits. 2012 free tax return filing   You must reduce your qualified higher educational expenses by all of the following tax-free benefits. 2012 free tax return filing Tax-free part of scholarships and fellowships. 2012 free tax return filing Expenses used to figure the tax-free portion of distributions from a Coverdell ESA. 2012 free tax return filing Expenses used to figure the tax-free portion of distributions from a qualified tuition program. 2012 free tax return filing Any tax-free payments (other than gifts or inheritances) received as educational assistance, such as: Veterans' educational assistance benefits, Qualified tuition reductions, or Employer-provided educational assistance. 2012 free tax return filing Any expense used in figuring the American Opportunity and lifetime learning credits. 2012 free tax return filing For information about these benefits, see Publication 970. 2012 free tax return filing Amount excludable. 2012 free tax return filing   If the total proceeds (interest and principal) from the qualified U. 2012 free tax return filing S. 2012 free tax return filing savings bonds you redeem during the year are not more than your adjusted qualified higher educational expenses for the year, you may be able to exclude all of the interest. 2012 free tax return filing If the proceeds are more than the expenses, you may be able to exclude only part of the interest. 2012 free tax return filing   To determine the excludable amount, multiply the interest part of the proceeds by a fraction. 2012 free tax return filing The numer
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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

Bureau of Consumer Credit Protection

Website: Bureau of Consumer Credit Protection

Address: Bureau of Consumer Credit Protection
35 State House Station
Augusta, ME 04333

Phone Number: 207-624-8527

Toll-free: 1-800-332-8529 (ME)

TTY: 1-888-577-6690

Maine Attorney General's Office

Website: Maine Attorney General's Office

Address: Maine Attorney General's Office
Consumer Information and Mediation Service
Six State House Station
Augusta, ME 04333

Phone Number: 207-626-8849

Toll-free: 1-800-436-2131 (ME)

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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.

Bureau of Financial Institutions

Website: Bureau of Financial Institutions

Address: Bureau of Financial Institutions
Consumer Outreach Program
36 State House Station
Augusta, ME 04333-0036

Phone Number: 207-624-8570

Toll-free: 1-800-965-5235

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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.

Bureau of Insurance

Website: Bureau of Insurance

Address: Bureau of Insurance
34 State House Station
Augusta, ME 04333-0034

Phone Number: 207-624-8475

Toll-free: 1-800-300-5000 (ME)

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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 Professional and Financial Regulation

Website: Department of Professional and Financial Regulation

Address: Department of Professional and Financial Regulation
Office of Securities
121 State House Station
Augusta, ME 04333

Phone Number: 207-624-8551

Toll-free: 1-877-624-8551 (ME)

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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.

Public Utilities Commission

Website: Public Utilities Commission

Address: Public Utilities Commission
Consumer Assistance Division
18 State House Station
Augusta, ME 04333-0018

Phone Number: 207-287-3831

Toll-free: 1-800-452-4699 (ME)

TTY: 1-800-437-1220

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The 2012 Free Tax Return Filing

2012 free tax return filing Publication 929 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics This image is too large to be displayed in the current screen. 2012 free tax return filing Please click the link to view the image. 2012 free tax return filing Form 1040A, page 1, for Joshua A. 2012 free tax return filing Blake This image is too large to be displayed in the current screen. 2012 free tax return filing Please click the link to view the image. 2012 free tax return filing Form 1040A, page 2, for Joshua A. 2012 free tax return filing Blake This image is too large to be displayed in the current screen. 2012 free tax return filing Please click the link to view the image. 2012 free tax return filing Form 8615 for Joshua A. 2012 free tax return filing Blake Filled-in Qualified Dividends and Capital Gain Tax Worksheet #1 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. 2012 free tax return filing Enter the amount from Form 1040A, line 27 1. 2012 free tax return filing 48,800*       2. 2012 free tax return filing Enter the amount from Form 1040A, line 9b 2. 2012 free tax return filing 300*           3. 2012 free tax return filing Enter the amount from Form 1040A, line 10 3. 2012 free tax return filing 200*           4. 2012 free tax return filing Add lines 2 and 3 4. 2012 free tax return filing 500       5. 2012 free tax return filing Subtract line 4 from line 1. 2012 free tax return filing If zero or less, enter -0- 5. 2012 free tax return filing 48,300       6. 2012 free tax return filing Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying widow(er),   or 6. 2012 free tax return filing 48,800*         $48,600 if head of household. 2012 free tax return filing                   7. 2012 free tax return filing Enter the smaller of line 5 or line 6 7. 2012 free tax return filing 48,300       8. 2012 free tax return filing Subtract line 7 from line 6. 2012 free tax return filing This amount is taxed at 0% 8. 2012 free tax return filing   500       9. 2012 free tax return filing Enter the smaller of line 1 or line 4 9. 2012 free tax return filing 500       10. 2012 free tax return filing Enter the amount from line 8 10. 2012 free tax return filing   500       11. 2012 free tax return filing Subtract line 10 from line 9 11. 2012 free tax return filing  -0-       12. 2012 free tax return filing Multiply line 11 by 15% (. 2012 free tax return filing 15) 12. 2012 free tax return filing -0-   13. 2012 free tax return filing Use the Tax Table to figure the tax on the amount on line 5. 2012 free tax return filing Enter the tax here 13. 2012 free tax return filing 6,356   14. 2012 free tax return filing Add lines 12 and 13 14. 2012 free tax return filing 6,356   15. 2012 free tax return filing Use the Tax Table to figure the tax on the amount on line 1. 2012 free tax return filing Enter the tax here 15. 2012 free tax return filing 6,431   16. 2012 free tax return filing Tax on all taxable income. 2012 free tax return filing Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. 2012 free tax return filing 6,356       *See the instructions under Using the Qualified Dividends and Capital Gain Tax Worksheet for line 9 tax in the Form 8615 instructions. 2012 free tax return filing Filled-in Qualified Dividends and Capital Gain Tax Worksheet #2 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. 2012 free tax return filing Enter the amount from Form 1040A, line 27 1. 2012 free tax return filing 1,650*       2. 2012 free tax return filing Enter the amount from Form 1040A, line 9b 2. 2012 free tax return filing 750*           3. 2012 free tax return filing Enter the amount from Form 1040A, line 10 3. 2012 free tax return filing 500*           4. 2012 free tax return filing Add lines 2 and 3 4. 2012 free tax return filing 1,250       5. 2012 free tax return filing Subtract line 4 from line 1. 2012 free tax return filing If zero or less, enter -0- 5. 2012 free tax return filing  400       6. 2012 free tax return filing Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying   widow(er), or 6. 2012 free tax return filing 1,650*         $48,600 if head of household. 2012 free tax return filing                   7. 2012 free tax return filing Enter the smaller of line 5 or line 6 7. 2012 free tax return filing   400       8. 2012 free tax return filing Subtract line 7 from line 6. 2012 free tax return filing This amount is taxed at 0% 8. 2012 free tax return filing 1,250       9. 2012 free tax return filing Enter the smaller of line 1 or line 4 9. 2012 free tax return filing 1,250       10. 2012 free tax return filing Enter the amount from line 8 10. 2012 free tax return filing 1,250       11. 2012 free tax return filing Subtract line 10 from line 9 11. 2012 free tax return filing -0-       12. 2012 free tax return filing Multiply line 11 by 15% (. 2012 free tax return filing 15) 12. 2012 free tax return filing -0-   13. 2012 free tax return filing Use the Tax Table to figure the tax on the amount on line 5. 2012 free tax return filing Enter the tax here 13. 2012 free tax return filing 41*   14. 2012 free tax return filing Add lines 12 and 13 14. 2012 free tax return filing 41   15. 2012 free tax return filing Use the Tax Table to figure the tax on the amount on line 1. 2012 free tax return filing Enter the tax here 15. 2012 free tax return filing 166*   16. 2012 free tax return filing Tax on all taxable income. 2012 free tax return filing Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. 2012 free tax return filing 41       *See the instructions under Using the Qualified Dividends and Capital Gain Tax Worksheet for line 15 tax in the Form 8615 instructions. 2012 free tax return filing Filled-in Qualified Dividends and Capital Gain Tax Worksheet #3 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. 2012 free tax return filing Enter the amount from Form 1040A, line 27 1. 2012 free tax return filing 2,450       2. 2012 free tax return filing Enter the amount from Form 1040A, line 9b 2. 2012 free tax return filing 1,050           3. 2012 free tax return filing Enter the amount from Form 1040A, line 10 3. 2012 free tax return filing 700           4. 2012 free tax return filing Add lines 2 and 3 4. 2012 free tax return filing 1,750       5. 2012 free tax return filing Subtract line 4 from line 1. 2012 free tax return filing If zero or less, enter -0- 5. 2012 free tax return filing    700       6. 2012 free tax return filing Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying   widow(er), or 6. 2012 free tax return filing 2,450         $48,600 if head of household. 2012 free tax return filing                   7. 2012 free tax return filing Enter the smaller of line 5 or line 6 7. 2012 free tax return filing  700       8. 2012 free tax return filing Subtract line 7 from line 6. 2012 free tax return filing This amount is taxed at 0% 8. 2012 free tax return filing 1,750       9. 2012 free tax return filing Enter the smaller of line 1 or line 4 9. 2012 free tax return filing 1,750       10. 2012 free tax return filing Enter the amount from line 8 10. 2012 free tax return filing 1,750       11. 2012 free tax return filing Subtract line 10 from line 9 11. 2012 free tax return filing -0-       12. 2012 free tax return filing Multiply line 11 by 15% (. 2012 free tax return filing 15) 12. 2012 free tax return filing -0-   13. 2012 free tax return filing Use the Tax Table to figure the tax on the amount on line 5. 2012 free tax return filing Enter the tax here 13. 2012 free tax return filing  71   14. 2012 free tax return filing Add lines 12 and 13 14. 2012 free tax return filing  71   15. 2012 free tax return filing Use the Tax Table to figure the tax on the amount on line 1. 2012 free tax return filing Enter the tax here 15. 2012 free tax return filing 246   16. 2012 free tax return filing Tax on all taxable income. 2012 free tax return filing Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. 2012 free tax return filing  71         How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 2012 free tax return filing Free help with your tax return. 2012 free tax return filing   You can get free help preparing your return nationwide from IRS-certified volunteers. 2012 free tax return filing The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 2012 free tax return filing The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2012 free tax return filing Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2012 free tax return filing In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 2012 free tax return filing To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 2012 free tax return filing gov, download the IRS2Go app, or call 1-800-906-9887. 2012 free tax return filing   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2012 free tax return filing To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2012 free tax return filing aarp. 2012 free tax return filing org/money/taxaide or call 1-888-227-7669. 2012 free tax return filing For more information on these programs, go to IRS. 2012 free tax return filing gov and enter “VITA” in the search box. 2012 free tax return filing Internet. 2012 free tax return filing    IRS. 2012 free tax return filing gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 2012 free tax return filing Download the free IRS2Go app from the iTunes app store or from Google Play. 2012 free tax return filing Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 2012 free tax return filing Check the status of your 2013 refund with the Where's My Refund? application on IRS. 2012 free tax return filing gov or download the IRS2Go app and select the Refund Status option. 2012 free tax return filing The IRS issues more than 9 out of 10 refunds in less than 21 days. 2012 free tax return filing Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 2012 free tax return filing You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2012 free tax return filing The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2012 free tax return filing Use the Interactive Tax Assistant (ITA) to research your tax questions. 2012 free tax return filing No need to wait on the phone or stand in line. 2012 free tax return filing The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 2012 free tax return filing When you reach the response screen, you can print the entire interview and the final response for your records. 2012 free tax return filing New subject areas are added on a regular basis. 2012 free tax return filing  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 2012 free tax return filing gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 2012 free tax return filing You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 2012 free tax return filing The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 2012 free tax return filing When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 2012 free tax return filing Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 2012 free tax return filing You can also ask the IRS to mail a return or an account transcript to you. 2012 free tax return filing Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 2012 free tax return filing gov or by calling 1-800-908-9946. 2012 free tax return filing Tax return and tax account transcripts are generally available for the current year and the past three years. 2012 free tax return filing Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 2012 free tax return filing Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 2012 free tax return filing If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 2012 free tax return filing Check the status of your amended return using Where's My Amended Return? Go to IRS. 2012 free tax return filing gov and enter Where's My Amended Return? in the search box. 2012 free tax return filing You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2012 free tax return filing It can take up to 3 weeks from the date you mailed it to show up in our system. 2012 free tax return filing Make a payment using one of several safe and convenient electronic payment options available on IRS. 2012 free tax return filing gov. 2012 free tax return filing Select the Payment tab on the front page of IRS. 2012 free tax return filing gov for more information. 2012 free tax return filing Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 2012 free tax return filing Figure your income tax withholding with the IRS Withholding Calculator on IRS. 2012 free tax return filing gov. 2012 free tax return filing Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 2012 free tax return filing Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 2012 free tax return filing gov. 2012 free tax return filing Request an Electronic Filing PIN by going to IRS. 2012 free tax return filing gov and entering Electronic Filing PIN in the search box. 2012 free tax return filing Download forms, instructions and publications, including accessible versions for people with disabilities. 2012 free tax return filing Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 2012 free tax return filing gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 2012 free tax return filing An employee can answer questions about your tax account or help you set up a payment plan. 2012 free tax return filing Before you visit, check the Office Locator on IRS. 2012 free tax return filing gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 2012 free tax return filing If you have a special need, such as a disability, you can request an appointment. 2012 free tax return filing Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 2012 free tax return filing Apply for an Employer Identification Number (EIN). 2012 free tax return filing Go to IRS. 2012 free tax return filing gov and enter Apply for an EIN in the search box. 2012 free tax return filing Read the Internal Revenue Code, regulations, or other official guidance. 2012 free tax return filing Read Internal Revenue Bulletins. 2012 free tax return filing Sign up to receive local and national tax news and more by email. 2012 free tax return filing Just click on “subscriptions” above the search box on IRS. 2012 free tax return filing gov and choose from a variety of options. 2012 free tax return filing    Phone. 2012 free tax return filing You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 2012 free tax return filing Download the free IRS2Go app from the iTunes app store or from Google Play. 2012 free tax return filing Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 2012 free tax return filing gov, or download the IRS2Go app. 2012 free tax return filing Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2012 free tax return filing The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2012 free tax return filing Most VITA and TCE sites offer free electronic filing. 2012 free tax return filing Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 2012 free tax return filing Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 2012 free tax return filing Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 2012 free tax return filing If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2012 free tax return filing The IRS issues more than 9 out of 10 refunds in less than 21 days. 2012 free tax return filing Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2012 free tax return filing Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 2012 free tax return filing The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2012 free tax return filing Note, the above information is for our automated hotline. 2012 free tax return filing Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 2012 free tax return filing Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 2012 free tax return filing You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2012 free tax return filing It can take up to 3 weeks from the date you mailed it to show up in our system. 2012 free tax return filing Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 2012 free tax return filing You should receive your order within 10 business days. 2012 free tax return filing Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 2012 free tax return filing If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 2012 free tax return filing Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 2012 free tax return filing The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 2012 free tax return filing These individuals can also contact the IRS through relay services such as the Federal Relay Service. 2012 free tax return filing    Walk-in. 2012 free tax return filing You can find a selection of forms, publications and services — in-person. 2012 free tax return filing Products. 2012 free tax return filing You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2012 free tax return filing Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2012 free tax return filing Services. 2012 free tax return filing You can walk in to your local TAC for face-to-face tax help. 2012 free tax return filing An employee can answer questions about your tax account or help you set up a payment plan. 2012 free tax return filing Before visiting, use the Office Locator tool on IRS. 2012 free tax return filing gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 2012 free tax return filing    Mail. 2012 free tax return filing You can send your order for forms, instructions, and publications to the address below. 2012 free tax return filing You should receive a response within 10 business days after your request is received. 2012 free tax return filing Internal Revenue Service 1201 N. 2012 free tax return filing Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 2012 free tax return filing The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2012 free tax return filing Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 2012 free tax return filing   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 2012 free tax return filing We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 2012 free tax return filing You face (or your business is facing) an immediate threat of adverse action. 2012 free tax return filing You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 2012 free tax return filing   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 2012 free tax return filing Here's why we can help: TAS is an independent organization within the IRS. 2012 free tax return filing Our advocates know how to work with the IRS. 2012 free tax return filing Our services are free and tailored to meet your needs. 2012 free tax return filing We have offices in every state, the District of Columbia, and Puerto Rico. 2012 free tax return filing   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 2012 free tax return filing   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 2012 free tax return filing If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 2012 free tax return filing Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. 2012 free tax return filing Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 2012 free tax return filing Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. 2012 free tax return filing Prev  Up  Next   Home   More Online Publications