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Amend Tax Forms

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Amend Tax Forms

Amend tax forms 16. Amend tax forms   Cómo Declarar Ganancias y Pérdidas Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Cómo Declarar Ganancias y Pérdidas de CapitalExcepción 1. Amend tax forms Excepción 2. Amend tax forms Presente el Formulario 1099-B o el Formulario 1099-S al IRS. Amend tax forms Pérdidas de Capital Tasas Impositivas sobre Ganancias de Capital Qué Hay de Nuevo Tasas máximas de ganancias de capital. Amend tax forms  Para el año 2013, las tasas máximas de ganancias de capital son del 0%, 15%, 20%, 25% y 28%. Amend tax forms Introduction En este capítulo se explica cómo declarar ganancias y pérdidas de capital provenientes de ventas, intercambios y otras enajenaciones de bienes de inversión en el Formulario 8949 y el Anexo D (Formulario 1040). Amend tax forms Esta explicación abarca los siguientes temas: Cómo declarar ganancias y pérdidas a corto plazo. Amend tax forms Cómo declarar ganancias y pérdidas a largo plazo. Amend tax forms Cómo calcular pérdidas de capital que se van a trasladar al año siguiente. Amend tax forms Cómo calcular los impuestos sobre una ganancia neta de capital. Amend tax forms Si vende o de otro modo enajena bienes utilizados en una ocupación o negocio o en la producción de ingresos, vea la Publicación 544, Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés, antes de completar el Anexo D (Formulario 1040). Amend tax forms Useful Items - You may want to see: Publicación 537 Installment Sales (Ventas a plazos), en inglés 544 Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés 550 Investment Income and Expenses (Ingresos y gastos de inversión), en inglés Formulario (e Instrucciones) 4797 Sales of Business Property (Ventas de bienes comerciales), en inglés 6252 Installment Sale Income (Ingresos de ventas a plazos), en inglés 8582 Passive Activity Loss Limitations (Limitaciones de pérdidas en actividades pasivas), en inglés 8949 Sales and Other Dispositions of Capital Assets (Ventas y otras enajenaciones de activos de capital, en inglés) Anexo D (Formulario 1040) Capital Gains and Losses (Ganancias y pérdidas de capital), en inglés Cómo Declarar Ganancias y Pérdidas de Capital Declare sus ganancias y pérdidas de capital en el Formulario 8949. Amend tax forms Complete el Formulario 8949 antes de completar las líneas 1b, 2, 3, 8b, 9 ó 10 del Anexo D (Formulario 1040). Amend tax forms Use el Formulario 8949 para declarar: La venta o intercambio de un activo de capital, la cual no se declaró en ningún otro formulario o anexo, Ganancias por canjes involuntarios (aparte de cuando se deba a un hecho fortuito o un robo) de activos de capital que no sirven para propósitos de negocio o lucro y Deudas incobrables que no provienen del negocio. Amend tax forms Use el Anexo D (Formulario 1040): Para calcular la ganancia o pérdida total de las transacciones declaradas en el Formulario 8949; Para declarar una ganancia proveniente del Formulario 6252 o de la Parte I del Formulario 4797; Para declarar una ganancia o pérdida proveniente del Formulario 4684, 6781 u 8824; Para declarar distribuciones de ganancias de capital no declaradas directamente en el Formulario 1040 o en el Formulario 1040A; Para declarar una pérdida de capital trasladada del año tributario anterior al año tributario actual; Para declarar su parte de una ganancia (o pérdida) de una sociedad colectiva, sociedad anónima de tipo S, caudal hereditario o fideicomiso; Para declarar las transacciones informadas a usted en el Formulario 1099-B (o documento sustitutivo), el cual muestra las bases informadas al IRS y al cual no corresponde ninguno de los ajustes o códigos del Formulario 8949; y Para declarar ganancias de capital a largo plazo no distribuidas provenientes del Formulario 2439. Amend tax forms Anote en el Formulario 8949 todas las ventas e intercambios de activos de capital (incluyendo acciones, bonos, etc. Amend tax forms ) y de bienes raíces (si no se declararon en el Formulario 4684, 4797, 6252, 6781 u 8824 o la línea 1a u 8a del Anexo D). Amend tax forms Declare estas transacciones aun si usted no recibió un Formulario 1099-B o 1099-S (u otra declaración sustitutiva) para la transacción. Amend tax forms Declare las ganancias o pérdidas a corto plazo en la Parte I. Amend tax forms Declare ganancias y pérdidas a largo plazo en la Parte II. Amend tax forms Use cuantos Formularios 8949 sean necesarios. Amend tax forms Excepciones a la presentación del Formulario 8949 y el Anexo D (Formulario 1040). Amend tax forms   Hay ciertas circunstancias bajo las cuales usted tal vez no tenga que presentar el Formulario 8949 ni el Anexo D (Formulario 1040). Amend tax forms Excepción 1. Amend tax forms   Usted no tiene que presentar el Formulario 8949 ni el Anexo D (Formulario 1040) si no tiene pérdidas de capital y sus únicas ganancias de capital son distribuciones de ganancia de capital correspondientes al (los) recuadro(s) 2a del (de los) Formulario(s) 1099-DIV (o declaraciones sustitutivas). Amend tax forms (Si alguno de los Formularios 1099-DIV (o declaraciones sustitutivas) que usted recibe indica una cifra en el recuadro 2b (ganancias no recuperadas conforme a la sección 1250), el recuadro 2c (ganancias conforme a la sección 1202) o el recuadro 2d (ganancias (tasas de 28%) por la venta de objetos coleccionables, usted no reúne los requisitos para esta excepción). Amend tax forms Si reúne los requisitos para esta excepción, declare sus distribuciones de ganancia de capital directamente en la línea 13 del Formulario 1040 y marque el recuadro en la línea 13. Amend tax forms También debe utillizar la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para impuestos sobre dividendos y ganancias de capital), que encontrará en las Instrucciones del Formulario 1040, para calcular su impuesto. Amend tax forms Usted pede declarar sus distribuciones de ganancias de capital en la línea 10 del Formulario 1040A, en vez del Formulario 1040, si ninguno de los Formularios 1099-DIV (o declaraciones sustitutivas) que usted recibió indica una cifra en los recuadros 2b, 2c o 2d y usted no tiene que presentar el Formulario 1040. Amend tax forms Excepción 2. Amend tax forms   Usted tiene que presentar el Anexo D (Formulario 1040), pero por lo general no tiene que presentar el Formulario 8949 si la Excepción 1 no le corresponde y sus únicas ganancias y pérdidas de capital son: Distribuciones de ganancias de capital; Una pérdida de capital trasladada de un año anterior; Una ganancia correspondiente al Formulario 2439 ó 6252, o de la Parte I del Formulario 4797; Una ganancia o pérdida correspondiente al Formulario 4684, 6781 u 8824; Una ganancia o pérdida de una sociedad colectiva, sociedad anónima de tipo S, un caudal hereditario o fideicomiso; Ganancias y pérdidas de transacciones por las cuales usted recibió el Formulario 1099-B (o un documento sustitutivo), el cual muestra las bases informadas al IRS y por lo cual no necesita hacer ningún ajuste en la columna (g) del Formulario 8949 ni anotar ningún código en la columna (f) del Formulario 8949. Amend tax forms Ventas a plazos. Amend tax forms   No puede utilizar el método de pago a plazos para declarar una ganancia proveniente de la venta de acciones o valores bursátiles cotizados en un mercado de valores bursátiles establecido. Amend tax forms Tiene que declarar la totalidad de la ganancia en el año de la venta (el año en el que ocurra la fecha de canje). Amend tax forms Ganancias y pérdidas provenientes de una actividad pasiva. Amend tax forms    Si tiene pérdidas o ganancias provenientes de una actividad pasiva, es posible que tenga que declararlas también en el Formulario 8582. Amend tax forms En ciertos casos, la pérdida puede ser limitada conforme a las reglas de actividad pasiva. Amend tax forms Consulte el Formulario 8582 y sus instrucciones correspondientes por separado para obtener información adicional sobre la declaración de ganancias y pérdidas de capital producto de una actividad pasiva. Amend tax forms Transacciones que se declaran en el Formulario 1099-B. Amend tax forms   Si vendió bienes, como acciones, bonos o ciertos productos de consumo bursátiles, a través de un agente corredor bursátil, éste debe entregarle un Formulario 1099-B o documento sustitutivo. Amend tax forms Utilice el Formulario 1099-B o el documento sustitutivo para completar el Formulario 8949. Amend tax forms Si usted vendió un valor bursátil garantizado en 2013, su agente corredor bursátil le mandará un Formulario 1099-B (o declaración sustitutiva) que le indica la base. Amend tax forms Esto le ayudará a completar el Formulario 8949. Amend tax forms Por lo general, los valores bursátiles garantizados son aquéllos que usted adquirió después del año 2010. Amend tax forms   Declare las ganancias brutas que aparezcan en el recuadro 2a del Formulario 1099-B como el precio de venta en la columna (d) de la Parte I o la Parte II del Formulario 8949, según le corresponda a su caso. Amend tax forms No obstante, si el agente corredor bursátil indica, en el recuadro 2a del Formulario 1099-B, haber declarado al IRS las ganancias brutas (precio de venta) menos comisiones y primas de opciones, anote el precio neto de venta resultante en la columna (d) de la Parte I o de la Parte II del Formulario 8949, según le corresponda a su caso. Amend tax forms   Incluya en la columna (g) todo gasto de venta, tal como honorarios de agente corredor bursátil, comisiones, impuestos de traspaso locales y estatales y primas de opciones, a menos que usted haya declarado el precio neto de venta en la columna (d). Amend tax forms Si incluye un gasto de venta en la columna (g), anote “E” en la columna (f). Amend tax forms Transacciones que se declaran en el Formulario 1099-CAP. Amend tax forms   Si es dueño de acciones de una sociedad anónima en cuyo control o estructura de capital haya habido cambios importantes, dicha sociedad debe enviarle el Formulario 1099-CAP o documento sustitutivo. Amend tax forms Utilice el Formulario 1099-CAP o documento sustitutivo para completar el Formulario 8949. Amend tax forms Si sus cálculos indican que, debido al cambio, usted tendría una pérdida, no anote ninguna cantidad en el Formulario 8949 ni en el Anexo D (Formulario 1040). Amend tax forms Esta transacción no le da la posibilidad de declarar una pérdida en el Anexo D (Formulario 1040). Amend tax forms   Declare el total de la cantidad recibida indicado en el recuadro 2 del Formulario 1099-CAP como el precio de venta en la columna (d) de la Parte I o de la Parte II del Formulario 8949, según le corresponda a su caso. Amend tax forms Transacciones que se declaran en el Formulario 1099-S. Amend tax forms   Si vendió o canjeó bienes raíces que han de declararse, normalmente la persona encargada de comunicar transacciones de bienes raíces debe entregarle un Formulario 1099-S en el que se indiquen las ganancias brutas. Amend tax forms    “Bienes raíces que han de declararse” son toda participación en una propiedad actual o futura en cualesquiera de los siguientes casos: Terrenos con o sin mejoras, incluido el espacio aéreo; Estructuras intrínsecamente permanentes, incluido todo edificio residencial, comercial o industrial; Una unidad de condominio y sus instalaciones accesorias y elementos comunes, incluido el terreno; y Acciones de cooperativa de viviendas en sociedad anónima (como se define en la sección 216 del Código de Impuestos Internos). Amend tax forms   Una “persona encargada de comunicar transacciones de bienes raíces” puede ser el abogado del comprador, el abogado de usted, una compañía de escrituras de propiedad o de cuentas en depósito, un prestamista hipotecario, el agente corredor bursátil de usted, el agente corredor bursátil del comprador o la persona que adquiera la mayor participación en la propiedad. Amend tax forms   El Formulario 1099-S indicará las ganancias brutas de la venta o el intercambio en el recuadro 2. Amend tax forms Consulte las Instrucciones para el Formulario 8949 y las Instrucciones para el Anexo D (Formulario 1040) para saber cómo se declaran estas transacciones e incluirlas en la Parte I o Parte II del Formulario 8949, tal como le corresponda a su caso. Amend tax forms No obstante, declare los intercambios por bienes del mismo tipo en el Formulario 8824. Amend tax forms   Es ilegal que una persona encargada de comunicar transacciones de bienes raíces le cobre un cargo por separado por cumplir con el requisito de presentación del Formulario 1099-S. Amend tax forms Nominatarios. Amend tax forms   Si recibe ganancias brutas como nominatario (es decir, las ganancias brutas están a nombre suyo pero en realidad pertenecen a otra persona), vea las Instrucciones para el Formulario 8949, para saber cómo declarar estas cantidades en el Formulario 8949. Amend tax forms Presente el Formulario 1099-B o el Formulario 1099-S al IRS. Amend tax forms   Si recibió ganancias brutas en calidad de nominatario en 2013, tiene que presentar al IRS el Formulario 1099-B o el Formulario 1099-S correspondiente a dichas ganancias. Amend tax forms Envíe el Formulario 1099-B o el Formulario 1099-S junto con el Formulario 1096, Annual Summary and Transmittal of U. Amend tax forms S. Amend tax forms Information Returns (Resumen e informe anual de declaraciones informativas de los Estados Unidos), en inglés, al Centro de Servicio del Servicio de Impuestos Internos que le corresponda a más tardar el 28 de febrero de 2014 (31 de marzo de 2014, si presenta el Formulario 1099-B o el Formulario 1099-S por vía electrónica). Amend tax forms Entregue la Copia B del Formulario 1099-B o del Formulario 1099-S al verdadero dueño de dichas ganancias a más tardar el 18 de febrero de 2014. Amend tax forms En el Formulario 1099-B, usted debe constar como “Payer” (Pagador). Amend tax forms El otro dueño debe constar como “Recipient” (Destinatario). Amend tax forms En el Formulario 1099-S, usted debe constar como “Filer” (Declarante). Amend tax forms El otro dueño debe constar como “Transferor” (Cesionista). Amend tax forms No obstante, usted no tiene que presentar el Formulario 1099-B ni el Formulario 1099-S para mostrar las ganancias de su cónyuge. Amend tax forms Para más información acerca de los requisitos de presentación de ciertas declaraciones informativas y las multas por no presentar (o facilitar) dichas declaraciones, vea las General Instructions for Certain Information Returns (Instrucciones generales para determinadas declaraciones informativas), en inglés. Amend tax forms Si presenta la declaración electrónicamente, vea la Publicación 1220, en inglés. Amend tax forms Venta de bienes comprados en diferentes ocasiones. Amend tax forms   Si vende un paquete de acciones u otros bienes que haya comprado en diferentes ocasiones, declare la pérdida o ganancia a corto plazo procedente de la venta en una fila de la Parte I del Formulario 8949 y anote la pérdida o ganancia a largo plazo en una fila de la Parte II del Formulario 8949. Amend tax forms Escriba “Various” (Varios) en la columna (b) para la “Date acquired” (Fecha de adquisición). Amend tax forms Gastos de venta. Amend tax forms    En la columna (g) del Formulario 8949, incluya todo gasto de venta, como honorarios de agentes corredores bursátiles, comisiones, impuestos estatales y locales sobre traspasos y primas de opciones, a menos que usted haya declarado el precio neto de ventas en la columna (d). Amend tax forms Si usted incluyó un gasto de venta en la columna (g), anote “E” en la columna (f). Amend tax forms   Para más información sobre los ajustes a la base, vea el capítulo 13. Amend tax forms Ganancias y pérdidas a corto plazo. Amend tax forms   Las ganancias o pérdidas de capital sobre la venta o canje de bienes de inversión que haya tenido por 1 año o menos se consideran pérdidas o ganancias de capital a corto plazo. Amend tax forms Declárelas en la Parte I del Formulario 8949. Amend tax forms   Sume su parte de pérdidas o ganancias de capital a corto plazo provenientes de sociedades colectivas, sociedades anónimas de tipo S, caudales hereditarios y fideicomisos, además de toda pérdida de capital a corto plazo que se haya trasladado de un año anterior, con las demás ganancias y pérdidas de capital a corto plazo para calcular la pérdida o ganancia de capital neta a corto plazo en la línea 7 del Anexo D (Formulario 1040). Amend tax forms Ganancias y pérdidas a largo plazo. Amend tax forms    Una ganancia o pérdida de capital sobre la venta o canje de bienes de inversión que haya tenido durante más de 1 año se considera ganancia o pérdida de capital a largo plazo. Amend tax forms Declárela en la Parte II del Formulario 8949. Amend tax forms   Usted debe declarar lo siguiente en la Parte II del Anexo D (Formulario 1040): Ganancias de capital a largo plazo de un fondo mutuo (u otra sociedad inversionista reglamentada) o de una sociedad de inversión inmobiliaria (REIT, por sus siglas en inglés) que no hayan sido distribuidas; Su participación de las ganancias y pérdidas de capital a largo plazo de sociedades colectivas, sociedades anónimas de tipo S, caudales hereditarios y fideicomisos; Toda distribución de ganancia de capital proveniente de fondos mutuos y sociedades de inversión inmobiliaria (REIT) que no se haya declarado directamente en la línea 10 del Formulario 1040A o la línea 13 del Formulario 1040; y Pérdidas de capital a largo plazo trasladadas de un año anterior. Amend tax forms    El resultado que se dé después de sumar dichas cantidades con las demás ganancias de capital a largo plazo y restar las pérdidas de capital a largo plazo es la ganancia o pérdida de capital neta a largo plazo (línea 15 del Anexo D (Formulario 1040)). Amend tax forms Total de la ganancia o pérdida neta. Amend tax forms   Para calcular el total de la ganancia o pérdida neta, sume la ganancia o pérdida de capital neta a corto plazo (línea 7 del Anexo D (Formulario 1040)) con la pérdida o ganancia de capital neta a largo plazo (línea 15 del Anexo D (Formulario 1040)). Amend tax forms Anote el resultado en la línea 16 de la Parte III del Anexo D (Formulario 1040). Amend tax forms Si tiene pérdidas que sobrepasen las ganancias, vea Pérdidas de Capital , que se encuentra a continuación. Amend tax forms Si las líneas 15 y 16 del Anexo D (Formulario 1040) son ganancias y el ingreso sujeto a impuestos en su Formulario 1040 es mayor de cero, vea Tasas Impositivas sobre Ganancias de Capital , más adelante. Amend tax forms Pérdidas de Capital Si las pérdidas de capital son mayores que las ganancias de capital, se puede declarar una deducción por pérdida de capital. Amend tax forms Declare la cantidad de la deducción en la línea 13 del Formulario 1040, anotándola entre paréntesis. Amend tax forms Límite sobre la deducción. Amend tax forms   La deducción por ganancia de capital permisible, calculada en el Anexo D (Formulario 1040), es la cantidad que sea menor de las siguientes: $3,000 ($1,500 si es casado y presenta una declaración por separado) o El total de la pérdida neta tal como aparece en la línea 16 del Anexo D (Formulario 1040). Amend tax forms   Puede usar el total de la pérdida neta para reducir sus ingresos en una cantidad equivalente, hasta el límite de $3,000. Amend tax forms Traslado de pérdida de capital. Amend tax forms   Si el total de la pérdida neta en la línea 16 del Anexo D (Formulario 1040) sobrepasa el límite anual de las deducciones de pérdida de capital, puede trasladar al año siguiente la parte sobrante y tratarla como si hubiera incurrido en la misma durante ese próximo año. Amend tax forms Si una parte de la pérdida sigue sin usarse, puede trasladarla a años posteriores hasta que se agote. Amend tax forms   Cuando calcule una cantidad de pérdida de capital que se trasladará al año siguiente, tiene que tener en cuenta la deducción permisible del año en curso, la haya reclamado o no, e independientemente de si presentó o no una declaración correspondiente al año en curso. Amend tax forms   Cuando traslade una pérdida a un año posterior, ésta sigue siendo una pérdida a largo plazo o corto plazo. Amend tax forms Una pérdida de capital a largo plazo que usted traslade al año tributario siguiente reducirá las ganancias de capital a largo plazo de dicho año antes de reducir las ganancias de capital a corto plazo de dicho año. Amend tax forms Cálculo de la cantidad trasladada al año siguiente. Amend tax forms   La cantidad de la pérdida de capital a trasladarse al año siguiente es la cantidad de pérdida neta total que sea mayor que la cantidad menor entre: La deducción por pérdida de capital permisible durante el año o Sus ingresos sujetos a impuestos aumentados por la deducción por pérdida de capital permisible durante el año y la deducción por exenciones personales. Amend tax forms   Si las deducciones son mayores que sus ingresos brutos del año tributario, utilice los ingresos negativos sujetos a impuestos al calcular la cantidad en el punto (2). Amend tax forms    Complete la Capital Loss Carryover Worksheet (Hoja de trabajo para calcular la pérdida de capital a trasladarse a años posteriores) en las Instrucciones del Anexo D o la Publicación 550, en inglés, para calcular la parte de la pérdida de capital que se pueda trasladar. Amend tax forms Ejemplo. Amend tax forms Roberto y Gloria vendieron valores bursátiles en 2013. Amend tax forms Las ventas dieron por resultado una pérdida de capital de $7,000. Amend tax forms No hicieron otras transacciones de capital. Amend tax forms Sus ingresos sujetos a impuestos fueron $26,000. Amend tax forms En la declaración conjunta de 2013, pueden deducir $3,000. Amend tax forms La parte de la pérdida que no usaron, $4,000 ($7,000 − $3,000), se puede trasladar a 2014. Amend tax forms Si la pérdida de capital hubiera sido $2,000, la deducción por pérdida de capital también habría sido $2,000. Amend tax forms No tendrían cantidad alguna a trasladar al año siguiente. Amend tax forms Utilice primero las pérdidas a corto plazo. Amend tax forms   Cuando calcule la cantidad a trasladarse al año siguiente, utilice primero las pérdidas de capital a corto plazo, aunque haya incurrido en las mismas después de una pérdida de capital a largo plazo. Amend tax forms Si no ha alcanzado el límite de la deducción por pérdidas de capital después de haber utilizado las pérdidas de capital a corto plazo, utilice las pérdidas de capital a largo plazo hasta alcanzar el límite. Amend tax forms Pérdida de capital de un difunto. Amend tax forms    Una pérdida de capital sufrida por una persona en su último año tributario antes de fallecer (o que se haya traspasado de un año anterior a dicho año) se puede deducir sólo en la última declaración del impuesto sobre el ingreso personal que se presente a nombre del difunto. Amend tax forms Los límites de pérdida de capital explicados anteriormente aún corresponden en este caso. Amend tax forms El caudal hereditario (patrimonio) del difunto no puede deducir ninguna parte de la pérdida ni trasladarla a años posteriores. Amend tax forms Declaraciones conjuntas y separadas. Amend tax forms   Si antes usted y su cónyuge presentaban declaraciones por separado y ahora presentan una declaración conjunta, sume las cantidades de pérdida de capital que cada uno de ustedes haya trasladado a un año siguiente. Amend tax forms No obstante, si antes usted y su cónyuge presentaban una declaración conjunta y ahora presentan declaraciones por separado, toda pérdida de capital que se haya trasladado a un año siguiente se puede deducir sólo en la declaración del cónyuge que de hecho sufrió la pérdida. Amend tax forms Tasas Impositivas sobre Ganancias de Capital Las tasas impositivas correspondientes a una ganancia neta de capital suelen ser más bajas que las que corresponden a otros ingresos. Amend tax forms Estas tasas reducidas se conocen como las “tasas máximas de ganancias de capital”. Amend tax forms El término “ganancia neta de capital” designa la cantidad por la que la ganancia neta de capital a largo plazo del año supera la pérdida de capital neta a corto plazo. Amend tax forms Para el año 2013, las tasas máximas correspondientes a ganancias de capital son 0%, 15%, 20%, 25% y 28%. Amend tax forms Vea la Tabla 16-1, para obtener información detallada. Amend tax forms Si para calcular el impuesto utiliza las tasas máximas correspondientes a ganancias de capital y el cálculo normal de impuestos le resulta en unos impuestos más bajos, el cálculo normal de impuestos es el que le corresponde. Amend tax forms Ejemplo. Amend tax forms Su ganancia neta de capital proviene en su totalidad de la venta de artículos coleccionables, por lo tanto, la tasa correspondiente a la ganancia de capital es 28%. Amend tax forms Si de otro modo está sujeto a una tasa menor del 28%, la tasa del 28% no corresponde. Amend tax forms Deducción de los intereses de inversiones. Amend tax forms   Si declara una deducción de intereses de inversiones, tal vez tenga que reducir la cantidad de su ganancia neta de capital que reúna los requisitos para las tasas impositivas sobre ganancias de capital. Amend tax forms Réstele la cantidad de la ganancia neta de capital que opte por incluir en los ingresos de inversiones al calcular el límite de la deducción de los mismos. Amend tax forms Para hacer esto, se utiliza la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D) en las Instrucciones para el Anexo D (Formulario 1040), en inglés, o la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para los impuestos sobre dividendos calificados y ganancias de capital), que se encuentra en las instrucciones por separado correspondientes a los Formularios 1040 y 1040A, en inglés. Amend tax forms Para más información acerca del límite de los intereses procedentes de inversiones, vea Interest Expenses (Gastos de intereses) en el capítulo 3 de la Publicación 550, en inglés. Amend tax forms Tabla 16-1. Amend tax forms ¿Cuál es la Tasa Máxima de Ganancias de Capital que le Corresponde? SI la ganancia neta de capital se deriva de . Amend tax forms . Amend tax forms . Amend tax forms ENTONCES la  tasa máxima de  ganancia de capital es . Amend tax forms . Amend tax forms . Amend tax forms una ganancia producto de artículos coleccionables 28% una ganancia, la cual reúne los requisitos, sobre acciones de pequeños negocios calificados menos la exclusión conforme a la sección 1202 28% una ganancia conforme a la sección 1250 no recuperada 25% otra ganancia1 y la tasa impositiva normal correspondiente es 39. Amend tax forms 6% 20% otra ganancia1 y la tasa impositiva normal correspondiente es 25%, 28%, 33% o 35% 15% otra ganancia1 y la tasa impositiva normal correspondiente es 10% o 15% 0% 1 El término “otra ganancia” significa toda ganancia que no sea una ganancia procedente de artículos coleccionables, ganancia sobre acciones de pequeños negocios calificados o una ganancia conforme a la sección 1250 no recuperada. Amend tax forms     Ganancia o pérdida procedente de artículos coleccionables. Amend tax forms   Ésta es una ganancia o pérdida que se deriva de la venta o canje de una obra de arte, alfombra, antigüedad, metal (como oro, plata y platino en barras), piedra preciosa, estampilla o sello, moneda o bebida alcohólica que haya tenido más de 1 año. Amend tax forms   Se considera que una ganancia procedente de artículos coleccionables abarca las ganancias resultantes de la venta de una participación en una sociedad colectiva, sociedad anónima de tipo S o fideicomiso, generadas por una plusvalía no realizada de dichos artículos coleccionables. Amend tax forms Ganancia sobre acciones de pequeños negocios calificados. Amend tax forms    Si obtuvo una ganancia de acciones de pequeños negocios calificados y fue dueño de dichas acciones durante más de 5 años, normalmente puede excluir de los ingresos una parte o la totalidad de su ganancia bajo la sección 1202. Amend tax forms La ganancia que cumple los requisitos, menos la exclusión conforme a la sección 1202, es una ganancia con una tasa de 28%. Amend tax forms Vea Gains on Qualified Small Business Stock (Ganancias de acciones de pequeños negocios calificados) en el capítulo 4 de la Publicación 550, en inglés. Amend tax forms Ganancia conforme a la sección 1250 no recuperada. Amend tax forms    Por lo general, ésta es toda parte de la ganancia de capital que se haya originado por la venta de bienes conforme a la sección 1250 (bienes raíces) debido a depreciación (pero no más que la ganancia neta conforme a la sección 1231) menos toda pérdida neta en el grupo del 28%. Amend tax forms Use la Unrecaptured Section 1250 Gain Worksheet (Hoja de trabajo de ganancias no recuperadas conforme a la sección 1250) de las Instrucciones del Anexo D (Formulario 1040), en inglés, para calcular la ganancia no recuperada conforme a la sección 1250. Amend tax forms Para más información sobre bienes conforme a la sección 1250 y ganancias conforme a la sección 1231, vea el capítulo 3 de la Publicación 544, en inglés. Amend tax forms Cálculo de los impuestos a base de las tasas máximas de ganancias de capital. Amend tax forms   Utilice la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para los impuestos sobre dividendos calificados y ganancias de capital) o la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D), la que corresponda, para calcular su impuesto si ha recibido dividendos calificados o ganancia neta de capital. Amend tax forms Tiene ganancia neta de capital si las cantidades de las líneas 15 y 16 del Anexo D ambas son ganancias. Amend tax forms Hoja de trabajo para los impuestos del Anexo D. Amend tax forms   Utilice la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D) que se encuentra en las Instrucciones del Anexo D (Formulario 1040) para calcular el impuesto si se dan las siguientes condiciones: Tiene que presentar el Anexo D (Formulario 1040) y La cantidad de la línea 18 (ganancia a una tasa de 28%) o la línea 19 (ganancia no recuperada conforme a la sección 1250) del Anexo D (Formulario 1040) es mayor de cero. Amend tax forms Hoja de trabajo para el impuesto sobre dividendos calificados y ganancias de capital. Amend tax forms   Utilice la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para el impuesto sobre los dividendos calificados y ganancias de capital) de las instrucciones del Formulario 1040 o Formulario 1040A (el que presente) para calcular el impuesto si no tiene que utilizar la Hoja de trabajo para los impuestos del Anexo D (como se explica anteriormente) y corresponde cualquiera de los siguientes puntos: Recibió dividendos calificados. Amend tax forms (Vea Dividendos Calificados en el capítulo 8). Amend tax forms No tiene que presentar el Anexo D (Formulario 1040) y recibió distribuciones de ganancias de capital. Amend tax forms (Vea Excepciones a la presentación del Formulario 8949 y el Anexo D (Formulario 1040) , anteriormente). Amend tax forms Las cantidades de las líneas 15 y 16 del Anexo D (Formulario 1040) son mayores de cero. Amend tax forms Impuesto mínimo alternativo. Amend tax forms   Estas tasas de ganancias de capital se utilizan también para calcular el impuesto mínimo alternativo. Amend tax forms Prev  Up  Next   Home   More Online Publications
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Amend tax forms 12. Amend tax forms   Other Income Table of Contents Introduction Useful Items - You may want to see: Bartering Canceled DebtsInterest included in canceled debt. Amend tax forms Exceptions Host or Hostess Life Insurance ProceedsSurviving spouse. Amend tax forms Endowment Contract Proceeds Accelerated Death Benefits Public Safety Officer Killed in the Line of Duty Partnership Income S Corporation Income RecoveriesItemized Deduction Recoveries Rents from Personal Property RepaymentsMethod 1. Amend tax forms Method 2. Amend tax forms RoyaltiesDepletion. Amend tax forms Coal and iron ore. Amend tax forms Sale of property interest. Amend tax forms Part of future production sold. Amend tax forms Unemployment BenefitsTypes of unemployment compensation. Amend tax forms Governmental program. Amend tax forms Repayment of unemployment compensation. Amend tax forms Tax withholding. Amend tax forms Repayment of benefits. Amend tax forms Welfare and Other Public Assistance Benefits Other IncomeEmotional distress. Amend tax forms Deduction for costs involved in unlawful discrimination suits. Amend tax forms Energy conservation measure. Amend tax forms Dwelling unit. Amend tax forms Current income required to be distributed. Amend tax forms Current income not required to be distributed. Amend tax forms How to report. Amend tax forms Losses. Amend tax forms Grantor trust. Amend tax forms Nonemployee compensation. Amend tax forms Corporate director. Amend tax forms Personal representatives. Amend tax forms Manager of trade or business for bankruptcy estate. Amend tax forms Notary public. Amend tax forms Election precinct official. Amend tax forms Difficulty-of-care payments. Amend tax forms Maintaining space in home. Amend tax forms Reporting taxable payments. Amend tax forms Lotteries and raffles. Amend tax forms Form W-2G. Amend tax forms Reporting winnings and recordkeeping. Amend tax forms Inherited pension or IRA. Amend tax forms Employee awards or bonuses. Amend tax forms Pulitzer, Nobel, and similar prizes. Amend tax forms Payment for services. Amend tax forms VA payments. Amend tax forms Prizes. Amend tax forms Strike and lockout benefits. Amend tax forms Introduction You must include on your return all items of income you receive in the form of money, property, and services unless the tax law states that you do not include them. Amend tax forms Some items, however, are only partly excluded from income. Amend tax forms This chapter discusses many kinds of income and explains whether they are taxable or nontaxable. Amend tax forms Income that is taxable must be reported on your tax return and is subject to tax. Amend tax forms Income that is nontaxable may have to be shown on your tax return but is not taxable. Amend tax forms This chapter begins with discussions of the following income items. Amend tax forms Bartering. Amend tax forms Canceled debts. Amend tax forms Sales parties at which you are the host or hostess. Amend tax forms Life insurance proceeds. Amend tax forms Partnership income. Amend tax forms S Corporation income. Amend tax forms Recoveries (including state income tax refunds). Amend tax forms Rents from personal property. Amend tax forms Repayments. Amend tax forms Royalties. Amend tax forms Unemployment benefits. Amend tax forms Welfare and other public assistance benefits. Amend tax forms These discussions are followed by brief discussions of other income items. Amend tax forms Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 544 Sales and Other Dispositions of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Bartering Bartering is an exchange of property or services. Amend tax forms You must include in your income, at the time received, the fair market value of property or services you receive in bartering. Amend tax forms If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise. Amend tax forms Generally, you report this income on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Amend tax forms However, if the barter involves an exchange of something other than services, such as in Example 3 below, you may have to use another form or schedule instead. Amend tax forms Example 1. Amend tax forms You are a self-employed attorney who performs legal services for a client, a small corporation. Amend tax forms The corporation gives you shares of its stock as payment for your services. Amend tax forms You must include the fair market value of the shares in your income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) in the year you receive them. Amend tax forms Example 2. Amend tax forms You are self-employed and a member of a barter club. Amend tax forms The club uses “credit units” as a means of exchange. Amend tax forms It adds credit units to your account for goods or services you provide to members, which you can use to purchase goods or services offered by other members of the barter club. Amend tax forms The club subtracts credit units from your account when you receive goods or services from other members. Amend tax forms You must include in your income the value of the credit units that are added to your account, even though you may not actually receive goods or services from other members until a later tax year. Amend tax forms Example 3. Amend tax forms You own a small apartment building. Amend tax forms In return for 6 months rent-free use of an apartment, an artist gives you a work of art she created. Amend tax forms You must report as rental income on Schedule E (Form 1040), Supplemental Income and Loss, the fair market value of the artwork, and the artist must report as income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) the fair rental value of the apartment. Amend tax forms Form 1099-B from barter exchange. Amend tax forms   If you exchanged property or services through a barter exchange, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a similar statement from the barter exchange should be sent to you by February 18, 2014. Amend tax forms It should show the value of cash, property, services, credits, or scrip you received from exchanges during 2013. Amend tax forms The IRS also will receive a copy of Form 1099-B. Amend tax forms Canceled Debts In most cases, if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. Amend tax forms You have no income from the canceled debt if it is intended as a gift to you. Amend tax forms A debt includes any indebtedness for which you are liable or which attaches to property you hold. Amend tax forms If the debt is a nonbusiness debt, report the canceled amount on Form 1040, line 21. Amend tax forms If it is a business debt, report the amount on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) (or on Schedule F (Form 1040), Profit or Loss From Farming, if the debt is farm debt and you are a farmer). Amend tax forms Form 1099-C. Amend tax forms   If a Federal Government agency, financial institution, or credit union cancels or forgives a debt you owe of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. Amend tax forms The amount of the canceled debt is shown in box 2. Amend tax forms Interest included in canceled debt. Amend tax forms   If any interest is forgiven and included in the amount of canceled debt in box 2, the amount of interest also will be shown in box 3. Amend tax forms Whether or not you must include the interest portion of the canceled debt in your income depends on whether the interest would be deductible when you paid it. Amend tax forms See Deductible debt under Exceptions, later. Amend tax forms   If the interest would not be deductible (such as interest on a personal loan), include in your income the amount from Form 1099-C, box 2. Amend tax forms If the interest would be deductible (such as on a business loan), include in your income the net amount of the canceled debt (the amount shown in box 2 less the interest amount shown in box 3). Amend tax forms Discounted mortgage loan. Amend tax forms   If your financial institution offers a discount for the early payment of your mortgage loan, the amount of the discount is canceled debt. Amend tax forms You must include the canceled amount in your income. Amend tax forms Mortgage relief upon sale or other disposition. Amend tax forms   If you are personally liable for a mortgage (recourse debt), and you are relieved of the mortgage when you dispose of the property, you may realize gain or loss up to the fair market value of the property. Amend tax forms To the extent the mortgage discharge exceeds the fair market value of the property, it is income from discharge of indebtedness unless it qualifies for exclusion under Excluded debt , later. Amend tax forms Report any income from discharge of indebtedness on nonbusiness debt that does not qualify for exclusion as other income on Form 1040, line 21. Amend tax forms    You may be able to exclude part of the mortgage relief on your principal residence. Amend tax forms See Excluded debt, later. Amend tax forms   If you are not personally liable for a mortgage (nonrecourse debt), and you are relieved of the mortgage when you dispose of the property (such as through foreclosure), that relief is included in the amount you realize. Amend tax forms You may have a taxable gain if the amount you realize exceeds your adjusted basis in the property. Amend tax forms Report any gain on nonbusiness property as a capital gain. Amend tax forms   See Publication 4681 for more information. Amend tax forms Stockholder debt. Amend tax forms   If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution that is generally dividend income to you. Amend tax forms For more information, see Publication 542, Corporations. Amend tax forms   If you are a stockholder in a corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. Amend tax forms This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. Amend tax forms Repayment of canceled debt. Amend tax forms   If you included a canceled amount in your income and later pay the debt, you may be able to file a claim for refund for the year the amount was included in income. Amend tax forms You can file a claim on Form 1040X if the statute of limitations for filing a claim is still open. Amend tax forms The statute of limitations generally does not end until 3 years after the due date of your original return. Amend tax forms Exceptions There are several exceptions to the inclusion of canceled debt in income. Amend tax forms These are explained next. Amend tax forms Student loans. Amend tax forms   Certain student loans contain a provision that all or part of the debt incurred to attend the qualified educational institution will be canceled if you work for a certain period of time in certain professions for any of a broad class of employers. Amend tax forms   You do not have income if your student loan is canceled after you agreed to this provision and then performed the services required. Amend tax forms To qualify, the loan must have been made by: The Federal Government, a state or local government, or an instrumentality, agency, or subdivision thereof, A tax-exempt public benefit corporation that has assumed control of a state, county, or municipal hospital, and whose employees are considered public employees under state law, or An educational institution: Under an agreement with an entity described in (1) or (2) that provided the funds to the institution to make the loan, or As part of a program of the institution designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or a tax-exempt organization described in section 501(c)(3). Amend tax forms   A loan to refinance a qualified student loan also will qualify if it was made by an educational institution or a qualified tax-exempt organization under its program designed as described in (3)(b) above. Amend tax forms Education loan repayment assistance. Amend tax forms   Education loan repayments made to you by the National Health Service Corps Loan Repayment Program (NHSC Loan Repayment Program), a state education loan repayment program eligible for funds under the Public Health Service Act, or any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas are not taxable. Amend tax forms    The provision relating to the “other state loan repayment or loan forgiveness program” was added to this exclusion for amounts received in tax years beginning after December 31, 2008. Amend tax forms If you included these amounts in income in 2010, 2011, or 2012, you should file an amended tax return to exclude this income. Amend tax forms See Form 1040X and its instructions for details on filing. Amend tax forms Deductible debt. Amend tax forms   You do not have income from the cancellation of a debt if your payment of the debt would be deductible. Amend tax forms This exception applies only if you use the cash method of accounting. Amend tax forms For more information, see chapter 5 of Publication 334, Tax Guide for Small Business. Amend tax forms Price reduced after purchase. Amend tax forms   In most cases, if the seller reduces the amount of debt you owe for property you purchased, you do not have income from the reduction. Amend tax forms The reduction of the debt is treated as a purchase price adjustment and reduces your basis in the property. Amend tax forms Excluded debt. Amend tax forms   Do not include a canceled debt in your gross income in the following situations. Amend tax forms The debt is canceled in a bankruptcy case under title 11 of the U. Amend tax forms S. Amend tax forms Code. Amend tax forms See Publication 908, Bankruptcy Tax Guide. Amend tax forms The debt is canceled when you are insolvent. Amend tax forms However, you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent. Amend tax forms See Publication 908. Amend tax forms The debt is qualified farm debt and is canceled by a qualified person. Amend tax forms See chapter 3 of Publication 225, Farmer's Tax Guide. Amend tax forms The debt is qualified real property business debt. Amend tax forms See chapter 5 of Publication 334. Amend tax forms The cancellation is intended as a gift. Amend tax forms The debt is qualified principal residence indebtedness. Amend tax forms See Publication 525 for additional information. Amend tax forms Host or Hostess If you host a party or event at which sales are made, any gift or gratuity you receive for giving the event is a payment for helping a direct seller make sales. Amend tax forms You must report this item as income at its fair market value. Amend tax forms Your out-of-pocket party expenses are subject to the 50% limit for meal and entertainment expenses. Amend tax forms These expenses are deductible as miscellaneous itemized deductions subject to the 2%-of-AGI limit on Schedule A (Form 1040), but only up to the amount of income you receive for giving the party. Amend tax forms For more information about the 50% limit for meal and entertainment expenses, see chapter 26. Amend tax forms Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. Amend tax forms This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. Amend tax forms However, interest income received as a result of life insurance proceeds may be taxable. Amend tax forms Proceeds not received in installments. Amend tax forms   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. Amend tax forms If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. Amend tax forms Proceeds received in installments. Amend tax forms   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. Amend tax forms   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. Amend tax forms Include anything over this excluded part in your income as interest. Amend tax forms Surviving spouse. Amend tax forms   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude up to $1,000 a year of the interest included in the installments. Amend tax forms If you remarry, you can continue to take the exclusion. Amend tax forms Surrender of policy for cash. Amend tax forms   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Amend tax forms In most cases, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. Amend tax forms    You should receive a Form 1099-R showing the total proceeds and the taxable part. Amend tax forms Report these amounts on lines 16a and 16b of Form 1040 or lines 12a and 12b of Form 1040A. Amend tax forms More information. Amend tax forms   For more information, see Life Insurance Proceeds in Publication 525. Amend tax forms Endowment Contract Proceeds An endowment contract is a policy under which you are paid a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. Amend tax forms Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. Amend tax forms To determine your cost, subtract any amount that you previously received under the contract and excluded from your income from the total premiums (or other consideration) paid for the contract. Amend tax forms Include the part of the lump sum payment that is more than your cost in your income. Amend tax forms Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are excluded from income if the insured is terminally or chronically ill. Amend tax forms Viatical settlement. Amend tax forms   This is the sale or assignment of any part of the death benefit under a life insurance contract to a viatical settlement provider. Amend tax forms A viatical settlement provider is a person who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill and who meets the requirements of section 101(g)(2)(B) of the Internal Revenue Code. Amend tax forms Exclusion for terminal illness. Amend tax forms    Accelerated death benefits are fully excludable if the insured is a terminally ill individual. Amend tax forms This is a person who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. Amend tax forms Exclusion for chronic illness. Amend tax forms    If the insured is a chronically ill individual who is not terminally ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Amend tax forms Accelerated death benefits paid on a per diem or other periodic basis are excludable up to a limit. Amend tax forms This limit applies to the total of the accelerated death benefits and any periodic payments received from long-term care insurance contracts. Amend tax forms For information on the limit and the definitions of chronically ill individual, qualified long-term care services, and long-term care insurance contracts, see Long-Term Care Insurance Contracts under Sickness and Injury Benefits in Publication 525. Amend tax forms Exception. Amend tax forms   The exclusion does not apply to any amount paid to a person (other than the insured) who has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the person, or Has a financial interest in the person's business. Amend tax forms Form 8853. Amend tax forms   To claim an exclusion for accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. Amend tax forms You do not have to file Form 8853 to exclude accelerated death benefits paid on the basis of actual expenses incurred. Amend tax forms Public Safety Officer Killed in the Line of Duty If you are a survivor of a public safety officer who was killed in the line of duty, you may be able to exclude from income certain amounts you receive. Amend tax forms For this purpose, the term public safety officer includes law enforcement officers, firefighters, chaplains, and rescue squad and ambulance crew members. Amend tax forms For more information, see Publication 559, Survivors, Executors, and Administrators. Amend tax forms Partnership Income A partnership generally is not a taxable entity. Amend tax forms The income, gains, losses, deductions, and credits of a partnership are passed through to the partners based on each partner's distributive share of these items. Amend tax forms Schedule K-1 (Form 1065). Amend tax forms    Although a partnership generally pays no tax, it must file an information return on Form 1065, U. Amend tax forms S. Amend tax forms Return of Partnership Income, and send Schedule K-1 (Form 1065) to each partner. Amend tax forms In addition, the partnership will send each partner a copy of the Partner's Instructions for Schedule K-1 (Form 1065) to help each partner report his or her share of the partnership's income, deductions, credits, and tax preference items. Amend tax forms Keep Schedule K-1 (Form 1065) for your records. Amend tax forms Do not attach it to your Form 1040, unless you are specifically required to do so. Amend tax forms For more information on partnerships, see Publication 541, Partnerships. Amend tax forms Qualified joint venture. Amend tax forms   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. Amend tax forms To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Amend tax forms For further information on how to make the election and which schedule(s) to file, see the instructions for your individual tax return. Amend tax forms S Corporation Income In most cases, an S corporation does not pay tax on its income. Amend tax forms Instead, the income, losses, deductions, and credits of the corporation are passed through to the shareholders based on each shareholder's pro rata share. Amend tax forms Schedule K-1 (Form 1120S). Amend tax forms   An S corporation must file a return on Form 1120S, U. Amend tax forms S. Amend tax forms Income Tax Return for an S Corporation, and send Schedule K-1 (Form 1120S) to each shareholder. Amend tax forms In addition, the S corporation will send each shareholder a copy of the Shareholder's Instructions for Schedule K-1 (Form 1120S) to help each shareholder report his or her share of the S corporation's income, losses, credits, and deductions. Amend tax forms Keep Schedule K-1 (Form 1120S) for your records. Amend tax forms Do not attach it to your Form 1040, unless you are specifically required to do so. Amend tax forms For more information on S corporations and their shareholders, see the Instructions for Form 1120S. Amend tax forms Recoveries A recovery is a return of an amount you deducted or took a credit for in an earlier year. Amend tax forms The most common recoveries are refunds, reimbursements, and rebates of deductions itemized on Schedule A (Form 1040). Amend tax forms You also may have recoveries of non-itemized deductions (such as payments on previously deducted bad debts) and recoveries of items for which you previously claimed a tax credit. Amend tax forms Tax benefit rule. Amend tax forms   You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. Amend tax forms For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year. Amend tax forms For more information, see Publication 525. Amend tax forms Federal income tax refund. Amend tax forms   Refunds of federal income taxes are not included in your income because they are never allowed as a deduction from income. Amend tax forms State tax refund. Amend tax forms   If you received a state or local income tax refund (or credit or offset) in 2013, you generally must include it in income if you deducted the tax in an earlier year. Amend tax forms The payer should send Form 1099-G, Certain Government Payments, to you by January 31, 2014. Amend tax forms The IRS also will receive a copy of the Form 1099-G. Amend tax forms If you file Form 1040, use the State and Local Income Tax Refund Worksheet in the 2013 Form 1040 instructions for line 10 to figure the amount (if any) to include in your income. Amend tax forms See Publication 525 for when you must use another worksheet. Amend tax forms   If you could choose to deduct for a tax year either: State and local income taxes, or State and local general sales taxes, then the maximum refund that you may have to include in income is limited to the excess of the tax you chose to deduct for that year over the tax you did not choose to deduct for that year. Amend tax forms For examples, see Publication 525. Amend tax forms Mortgage interest refund. Amend tax forms    If you received a refund or credit in 2013 of mortgage interest paid in an earlier year, the amount should be shown in box 3 of your Form 1098, Mortgage Interest Statement. Amend tax forms Do not subtract the refund amount from the interest you paid in 2013. Amend tax forms You may have to include it in your income under the rules explained in the following discussions. Amend tax forms Interest on recovery. Amend tax forms   Interest on any of the amounts you recover must be reported as interest income in the year received. Amend tax forms For example, report any interest you received on state or local income tax refunds on Form 1040, line 8a. Amend tax forms Recovery and expense in same year. Amend tax forms   If the refund or other recovery and the expense occur in the same year, the recovery reduces the deduction or credit and is not reported as income. Amend tax forms Recovery for 2 or more years. Amend tax forms   If you receive a refund or other recovery that is for amounts you paid in 2 or more separate years, you must allocate, on a pro rata basis, the recovered amount between the years in which you paid it. Amend tax forms This allocation is necessary to determine the amount of recovery from any earlier years and to determine the amount, if any, of your allowable deduction for this item for the current year. Amend tax forms For information on how to compute the allocation, see Recoveries in Publication 525. Amend tax forms Itemized Deduction Recoveries If you recover any amount that you deducted in an earlier year on Schedule A (Form 1040), you generally must include the full amount of the recovery in your income in the year you receive it. Amend tax forms Where to report. Amend tax forms   Enter your state or local income tax refund on Form 1040, line 10, and the total of all other recoveries as other income on Form 1040, line 21. Amend tax forms You cannot use Form 1040A or Form 1040EZ. Amend tax forms Standard deduction limit. Amend tax forms   You generally are allowed to claim the standard deduction if you do not itemize your deductions. Amend tax forms Only your itemized deductions that are more than your standard deduction are subject to the recovery rule (unless you are required to itemize your deductions). Amend tax forms If your total deductions on the earlier year return were not more than your income for that year, include in your income this year the lesser of: Your recoveries, or The amount by which your itemized deductions exceeded the standard deduction. Amend tax forms Example. Amend tax forms For 2012, you filed a joint return. Amend tax forms Your taxable income was $60,000 and you were not entitled to any tax credits. Amend tax forms Your standard deduction was $11,900, and you had itemized deductions of $14,000. Amend tax forms In 2013, you received the following recoveries for amounts deducted on your 2012 return: Medical expenses $200 State and local income tax refund 400 Refund of mortgage interest 325 Total recoveries $925 None of the recoveries were more than the deductions taken for 2012. Amend tax forms The difference between the state and local income tax you deducted and your local general sales tax was more than $400. Amend tax forms Your total recoveries are less than the amount by which your itemized deductions exceeded the standard deduction ($14,000 − 11,900 = $2,100), so you must include your total recoveries in your income for 2013. Amend tax forms Report the state and local income tax refund of $400 on Form 1040, line 10, and the balance of your recoveries, $525, on Form 1040, line 21. Amend tax forms Standard deduction for earlier years. Amend tax forms   To determine if amounts recovered in 2013 must be included in your income, you must know the standard deduction for your filing status for the year the deduction was claimed. Amend tax forms Look in the instructions for your tax return from prior years to locate the standard deduction for the filing status for that prior year. Amend tax forms Example. Amend tax forms You filed a joint return on Form 1040 for 2012 with taxable income of $45,000. Amend tax forms Your itemized deductions were $12,350. Amend tax forms The standard deduction that you could have claimed was $11,900. Amend tax forms In 2013, you recovered $2,100 of your 2012 itemized deductions. Amend tax forms None of the recoveries were more than the actual deductions for 2012. Amend tax forms Include $450 of the recoveries in your 2013 income. Amend tax forms This is the smaller of your recoveries ($2,100) or the amount by which your itemized deductions were more than the standard deduction ($12,350 − $11,900 = $450). Amend tax forms Recovery limited to deduction. Amend tax forms   You do not include in your income any amount of your recovery that is more than the amount you deducted in the earlier year. Amend tax forms The amount you include in your income is limited to the smaller of: The amount deducted on Schedule A (Form 1040), or The amount recovered. Amend tax forms Example. Amend tax forms During 2012 you paid $1,700 for medical expenses. Amend tax forms From this amount you subtracted $1,500, which was 7. Amend tax forms 5% of your adjusted gross income. Amend tax forms Your actual medical expense deduction was $200. Amend tax forms In 2013, you received a $500 reimbursement from your medical insurance for your 2012 expenses. Amend tax forms The only amount of the $500 reimbursement that must be included in your income for 2013 is $200—the amount actually deducted. Amend tax forms Other recoveries. Amend tax forms   See Recoveries in Publication 525 if: You have recoveries of items other than itemized deductions, or You received a recovery for an item for which you claimed a tax credit (other than investment credit or foreign tax credit) in a prior year. Amend tax forms Rents from Personal Property If you rent out personal property, such as equipment or vehicles, how you report your income and expenses is in most cases determined by: Whether or not the rental activity is a business, and Whether or not the rental activity is conducted for profit. Amend tax forms In most cases, if your primary purpose is income or profit and you are involved in the rental activity with continuity and regularity, your rental activity is a business. Amend tax forms See Publication 535, Business Expenses, for details on deducting expenses for both business and not-for-profit activities. Amend tax forms Reporting business income and expenses. Amend tax forms    If you are in the business of renting personal property, report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Amend tax forms The form instructions have information on how to complete them. Amend tax forms Reporting nonbusiness income. Amend tax forms   If you are not in the business of renting personal property, report your rental income on Form 1040, line 21. Amend tax forms List the type and amount of the income on the dotted line next to line 21. Amend tax forms Reporting nonbusiness expenses. Amend tax forms   If you rent personal property for profit, include your rental expenses in the total amount you enter on Form 1040, line 36. Amend tax forms Also enter the amount and “PPR” on the dotted line next to line 36. Amend tax forms   If you do not rent personal property for profit, your deductions are limited and you cannot report a loss to offset other income. Amend tax forms See Activity not for profit , under Other Income, later. Amend tax forms Repayments If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Amend tax forms Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. Amend tax forms Generally, you can claim a deduction or credit only if the repayment qualifies as an expense or loss incurred in your trade or business or in a for-profit transaction. Amend tax forms Type of deduction. Amend tax forms   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. Amend tax forms You generally deduct the repayment on the same form or schedule on which you previously reported it as income. Amend tax forms For example, if you reported it as self-employment income, deduct it as a business expense on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). Amend tax forms If you reported it as a capital gain, deduct it as a capital loss as explained in the Instructions for Schedule D (Form 1040). Amend tax forms If you reported it as wages, unemployment compensation, or other nonbusiness income, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040). Amend tax forms Repaid social security benefits. Amend tax forms   If you repaid social security benefits or equivalent railroad retirement benefits, see Repayment of benefits in chapter 11. Amend tax forms Repayment of $3,000 or less. Amend tax forms   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Amend tax forms If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 23. Amend tax forms Repayment over $3,000. Amend tax forms   If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). Amend tax forms However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. Amend tax forms This means that at the time you included the income, it appeared that you had an unrestricted right to it. Amend tax forms If you qualify for this choice, figure your tax under both methods and compare the results. Amend tax forms Use the method (deduction or credit) that results in less tax. Amend tax forms When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. Amend tax forms Each instance of repayment is not considered separately. Amend tax forms Method 1. Amend tax forms   Figure your tax for 2013 claiming a deduction for the repaid amount. Amend tax forms If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 28. Amend tax forms Method 2. Amend tax forms   Figure your tax for 2013 claiming a credit for the repaid amount. Amend tax forms Follow these steps. Amend tax forms Figure your tax for 2013 without deducting the repaid amount. Amend tax forms Refigure your tax from the earlier year without including in income the amount you repaid in 2013. Amend tax forms Subtract the tax in (2) from the tax shown on your return for the earlier year. Amend tax forms This is the credit. Amend tax forms Subtract the answer in (3) from the tax for 2013 figured without the deduction (Step 1). Amend tax forms   If method 1 results in less tax, deduct the amount repaid. Amend tax forms If method 2 results in less tax, claim the credit figured in (3) above on Form 1040, line 71, by adding the amount of the credit to any other credits on this line, and entering “I. Amend tax forms R. Amend tax forms C. Amend tax forms 1341” in the column to the right of line 71. Amend tax forms   An example of this computation can be found in Publication 525. Amend tax forms Repaid wages subject to social security and Medicare taxes. Amend tax forms   If you had to repay an amount that you included in your wages or compensation in an earlier year on which social security, Medicare, or tier 1 RRTA taxes were paid, ask your employer to refund the excess amount to you. Amend tax forms If the employer refuses to refund the taxes, ask for a statement indicating the amount of the overcollection to support your claim. Amend tax forms File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Amend tax forms Repaid wages subject to Additional Medicare Tax. Amend tax forms   Employers cannot make an adjustment or file a claim for refund for Additional Medicare Tax withholding when there is a repayment of wages received by an employee in a prior year because the employee determines liability for Additional Medicare Tax on the employee's income tax return for the prior year. Amend tax forms If you had to repay an amount that you included in your wages or compensation in an earlier year, and on which Additional Medicare Tax was paid, you may be able to recover the Additional Medicare Tax paid on the amount. Amend tax forms To recover Additional Medicare Tax on the repaid wages or compensation, you must file Form 1040X, Amended U. Amend tax forms S. Amend tax forms Individual Income Tax Return, for the prior year in which the wages or compensation were originally received. Amend tax forms See the Instructions for Form 1040X. Amend tax forms Royalties Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. Amend tax forms In most cases you report royalties in Part I of Schedule E (Form 1040). Amend tax forms However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc. Amend tax forms , report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Amend tax forms Copyrights and patents. Amend tax forms   Royalties from copyrights on literary, musical, or artistic works, and similar property, or from patents on inventions, are amounts paid to you for the right to use your work over a specified period of time. Amend tax forms Royalties generally are based on the number of units sold, such as the number of books, tickets to a performance, or machines sold. Amend tax forms Oil, gas, and minerals. Amend tax forms   Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property. Amend tax forms The royalties are based on units, such as barrels, tons, etc. Amend tax forms , and are paid to you by a person or company who leases the property from you. Amend tax forms Depletion. Amend tax forms   If you are the owner of an economic interest in mineral deposits or oil and gas wells, you can recover your investment through the depletion allowance. Amend tax forms For information on this subject, see chapter 9 of Publication 535. Amend tax forms Coal and iron ore. Amend tax forms   Under certain circumstances, you can treat amounts you receive from the disposal of coal and iron ore as payments from the sale of a capital asset, rather than as royalty income. Amend tax forms For information about gain or loss from the sale of coal and iron ore, see Publication 544. Amend tax forms Sale of property interest. Amend tax forms   If you sell your complete interest in oil, gas, or mineral rights, the amount you receive is considered payment for the sale of property used in a trade or business under section 1231, not royalty income. Amend tax forms Under certain circumstances, the sale is subject to capital gain or loss treatment as explained in the Instructions for Schedule D (Form 1040). Amend tax forms For more information on selling section 1231 property, see chapter 3 of Publication 544. Amend tax forms   If you retain a royalty, an overriding royalty, or a net profit interest in a mineral property for the life of the property, you have made a lease or a sublease, and any cash you receive for the assignment of other interests in the property is ordinary income subject to a depletion allowance. Amend tax forms Part of future production sold. Amend tax forms   If you own mineral property but sell part of the future production, in most cases you treat the money you receive from the buyer at the time of the sale as a loan from the buyer. Amend tax forms Do not include it in your income or take depletion based on it. Amend tax forms   When production begins, you include all the proceeds in your income, deduct all the production expenses, and deduct depletion from that amount to arrive at your taxable income from the property. Amend tax forms Unemployment Benefits The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits. Amend tax forms Unemployment compensation. Amend tax forms   You must include in income all unemployment compensation you receive. Amend tax forms You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you. Amend tax forms In most cases, you enter unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Amend tax forms Types of unemployment compensation. Amend tax forms   Unemployment compensation generally includes any amount received under an unemployment compensation law of the United States or of a state. Amend tax forms It includes the following benefits. Amend tax forms Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund. Amend tax forms State unemployment insurance benefits. Amend tax forms Railroad unemployment compensation benefits. Amend tax forms Disability payments from a government program paid as a substitute for unemployment compensation. Amend tax forms (Amounts received as workers' compensation for injuries or illness are not unemployment compensation. Amend tax forms See chapter 5 for more information. Amend tax forms ) Trade readjustment allowances under the Trade Act of 1974. Amend tax forms Unemployment assistance under the Disaster Relief and Emergency Assistance Act. Amend tax forms Unemployment assistance under the Airline Deregulation Act of 1974 Program. Amend tax forms Governmental program. Amend tax forms   If you contribute to a governmental unemployment compensation program and your contributions are not deductible, amounts you receive under the program are not included as unemployment compensation until you recover your contributions. Amend tax forms If you deducted all of your contributions to the program, the entire amount you receive under the program is included in your income. Amend tax forms Repayment of unemployment compensation. Amend tax forms   If you repaid in 2013 unemployment compensation you received in 2013, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Amend tax forms On the dotted line next to your entry enter “Repaid” and the amount you repaid. Amend tax forms If you repaid unemployment compensation in 2013 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. Amend tax forms If the amount is more than $3,000, see Repayments , earlier. Amend tax forms Tax withholding. Amend tax forms   You can choose to have federal income tax withheld from your unemployment compensation. Amend tax forms To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Amend tax forms Tax will be withheld at 10% of your payment. Amend tax forms    If you do not choose to have tax withheld from your unemployment compensation, you may be liable for estimated tax. Amend tax forms If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Amend tax forms For more information on estimated tax, see chapter 4. Amend tax forms Supplemental unemployment benefits. Amend tax forms   Benefits received from an employer-financed fund (to which the employees did not contribute) are not unemployment compensation. Amend tax forms They are taxable as wages and are subject to withholding for income tax. Amend tax forms They may be subject to social security and Medicare taxes. Amend tax forms For more information, see Supplemental Unemployment Benefits in section 5 of Publication 15-A, Employer's Supplemental Tax Guide. Amend tax forms Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Amend tax forms Repayment of benefits. Amend tax forms   You may have to repay some of your supplemental unemployment benefits to qualify for trade readjustment allowances under the Trade Act of 1974. Amend tax forms If you repay supplemental unemployment benefits in the same year you receive them, reduce the total benefits by the amount you repay. Amend tax forms If you repay the benefits in a later year, you must include the full amount of the benefits received in your income for the year you received them. Amend tax forms   Deduct the repayment in the later year as an adjustment to gross income on Form 1040. Amend tax forms (You cannot use Form 1040A or Form 1040EZ. Amend tax forms ) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36. Amend tax forms If the amount you repay in a later year is more than $3,000, you may be able to take a credit against your tax for the later year instead of deducting the amount repaid. Amend tax forms For more information on this, see Repayments , earlier. Amend tax forms Private unemployment fund. Amend tax forms   Unemployment benefit payments from a private (nonunion) fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. Amend tax forms Report the taxable amount on Form 1040, line 21. Amend tax forms Payments by a union. Amend tax forms   Benefits paid to you as an unemployed member of a union from regular union dues are included in your income on Form 1040, line 21. Amend tax forms However, if you contribute to a special union fund and your payments to the fund are not deductible, the unemployment benefits you receive from the fund are includible in your income only to the extent they are more than your contributions. Amend tax forms Guaranteed annual wage. Amend tax forms   Payments you receive from your employer during periods of unemployment, under a union agreement that guarantees you full pay during the year, are taxable as wages. Amend tax forms Include them on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Amend tax forms State employees. Amend tax forms   Payments similar to a state's unemployment compensation may be made by the state to its employees who are not covered by the state's unemployment compensation law. Amend tax forms Although the payments are fully taxable, do not report them as unemployment compensation. Amend tax forms Report these payments on Form 1040, line 21. Amend tax forms Welfare and Other Public Assistance Benefits Do not include in your income governmental benefit payments from a public welfare fund based upon need, such as payments to blind individuals under a state public assistance law. Amend tax forms Payments from a state fund for the victims of crime should not be included in the victims' incomes if they are in the nature of welfare payments. Amend tax forms Do not deduct medical expenses that are reimbursed by such a fund. Amend tax forms You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently. Amend tax forms Reemployment Trade Adjustment Assistance (RTAA) payments. Amend tax forms   RTAA payments received from a state must be included in your income. Amend tax forms The state must send you Form 1099-G to advise you of the amount you should include in income. Amend tax forms The amount should be reported on Form 1040, line 21. Amend tax forms Persons with disabilities. Amend tax forms   If you have a disability, you must include in income compensation you receive for services you perform unless the compensation is otherwise excluded. Amend tax forms However, you do not include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. Amend tax forms Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work. Amend tax forms Disaster relief grants. Amend tax forms    Do not include post-disaster grants received under the Robert T. Amend tax forms Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, child care, or funeral expenses. Amend tax forms Do not deduct casualty losses or medical expenses that are specifically reimbursed by these disaster relief grants. Amend tax forms If you have deducted a casualty loss for the loss of your personal residence and you later receive a disaster relief grant for the loss of the same residence, you may have to include part or all of the grant in your taxable income. Amend tax forms See Recoveries , earlier. Amend tax forms Unemployment assistance payments under the Act are taxable unemployment compensation. Amend tax forms See Unemployment compensation under Unemployment Benefits, earlier. Amend tax forms Disaster relief payments. Amend tax forms   You can exclude from income any amount you receive that is a qualified disaster relief payment. Amend tax forms A qualified disaster relief payment is an amount paid to you: To reimburse or pay reasonable and necessary personal, family, living, or funeral expenses that result from a qualified disaster; To reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation of your home or repair or replacement of its contents to the extent it is due to a qualified disaster; By a person engaged in the furnishing or sale of transportation as a common carrier because of the death or personal physical injuries incurred as a result of a qualified disaster; or By a federal, state, or local government, or agency, or instrumentality in connection with a qualified disaster in order to promote the general welfare. Amend tax forms You can exclude this amount only to the extent any expense it pays for is not paid for by insurance or otherwise. Amend tax forms The exclusion does not apply if you were a participant or conspirator in a terrorist action or a representative of one. Amend tax forms   A qualified disaster is: A disaster which results from a terrorist or military action; A federally declared disaster; or A disaster which results from an accident involving a common carrier, or from any other event, which is determined to be catastrophic by the Secretary of the Treasury or his or her delegate. Amend tax forms   For amounts paid under item (4), a disaster is qualified if it is determined by an applicable federal, state, or local authority to warrant assistance from the federal, state, or local government, agency, or instrumentality. Amend tax forms Disaster mitigation payments. Amend tax forms   You also can exclude from income any amount you receive that is a qualified disaster mitigation payment. Amend tax forms Qualified disaster mitigation payments are also most commonly paid to you in the period immediately following damage to property as a result of a natural disaster. Amend tax forms However, disaster mitigation payments are used to mitigate (reduce the severity of) potential damage from future natural disasters. Amend tax forms They are paid to you through state and local governments based on the provisions of the Robert T. Amend tax forms Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act. Amend tax forms   You cannot increase the basis or adjusted basis of your property for improvements made with nontaxable disaster mitigation payments. Amend tax forms Home Affordable Modification Program (HAMP). Amend tax forms   If you benefit from Pay-for-Performance Success Payments under HAMP, the payments are not taxable. Amend tax forms Mortgage assistance payments under section 235 of the National Housing Act. Amend tax forms   Payments made under section 235 of the National Housing Act for mortgage assistance are not included in the homeowner's income. Amend tax forms Interest paid for the homeowner under the mortgage assistance program cannot be deducted. Amend tax forms Medicare. Amend tax forms   Medicare benefits received under title XVIII of the Social Security Act are not includible in the gross income of the individuals for whom they are paid. Amend tax forms This includes basic (part A (Hospital Insurance Benefits for the Aged)) and supplementary (part B (Supplementary Medical Insurance Benefits for the Aged)). Amend tax forms Old-age, survivors, and disability insurance benefits (OASDI). Amend tax forms   Generally, OASDI payments under section 202 of title II of the Social Security Act are not includible in the gross income of the individuals to whom they are paid. Amend tax forms This applies to old-age insurance benefits, and insurance benefits for wives, husbands, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment. Amend tax forms Nutrition Program for the Elderly. Amend tax forms    Food benefits you receive under the Nutrition Program for the Elderly are not taxable. Amend tax forms If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you are also eligible for food benefits. Amend tax forms Payments to reduce cost of winter energy. Amend tax forms   Payments made by a state to qualified people to reduce their cost of winter energy use are not taxable. Amend tax forms Other Income The following brief discussions are arranged in alphabetical order. Amend tax forms Other income items briefly discussed below are referenced to publications which provide more topical information. Amend tax forms Activity not for profit. Amend tax forms   You must include on your return income from an activity from which you do not expect to make a profit. Amend tax forms An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. Amend tax forms Enter this income on Form 1040, line 21. Amend tax forms Deductions for expenses related to the activity are limited. Amend tax forms They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040). Amend tax forms See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit. Amend tax forms Alaska Permanent Fund dividend. Amend tax forms   If you received a payment from Alaska's mineral income fund (Alaska Permanent Fund dividend), report it as income on line 21 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Amend tax forms The state of Alaska sends each recipient a document that shows the amount of the payment with the check. Amend tax forms The amount also is reported to IRS. Amend tax forms Alimony. Amend tax forms   Include in your income on Form 1040, line 11, any alimony payments you receive. Amend tax forms Amounts you receive for child support are not income to you. Amend tax forms Alimony and child support payments are discussed in chapter 18. Amend tax forms Bribes. Amend tax forms   If you receive a bribe, include it in your income. Amend tax forms Campaign contributions. Amend tax forms   These contributions are not income to a candidate unless they are diverted to his or her personal use. Amend tax forms To be exempt from tax, the contributions must be spent for campaign purposes or kept in a fund for use in future campaigns. Amend tax forms However, interest earned on bank deposits, dividends received on contributed securities, and net gains realized on sales of contributed securities are taxable and must be reported on Form 1120-POL, U. Amend tax forms S. Amend tax forms Income Tax Return for Certain Political Organizations. Amend tax forms Excess campaign funds transferred to an office account must be included in the officeholder's income on Form 1040, line 21, in the year transferred. Amend tax forms Car pools. Amend tax forms   Do not include in your income amounts you receive from the passengers for driving a car in a car pool to and from work. Amend tax forms These amounts are considered reimbursement for your expenses. Amend tax forms However, this rule does not apply if you have developed car pool arrangements into a profit-making business of transporting workers for hire. Amend tax forms Cash rebates. Amend tax forms   A cash rebate you receive from a dealer or manufacturer of an item you buy is not income, but you must reduce your basis by the amount of the rebate. Amend tax forms Example. Amend tax forms You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. Amend tax forms The $2,000 is not income to you. Amend tax forms Your basis in the car is $22,000. Amend tax forms This is the basis on which you figure gain or loss if you sell the car and depreciation if you use it for business. Amend tax forms Casualty insurance and other reimbursements. Amend tax forms   You generally should not report these reimbursements on your return unless you are figuring gain or loss from the casualty or theft. Amend tax forms See chapter 25 for more information. Amend tax forms Child support payments. Amend tax forms   You should not report these payments on your return. Amend tax forms See chapter 18 for more information. Amend tax forms Court awards and damages. Amend tax forms   To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. Amend tax forms The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. Amend tax forms Include the following as ordinary income. Amend tax forms Interest on any award. Amend tax forms Compensation for lost wages or lost profits in most cases. Amend tax forms Punitive damages, in most cases. Amend tax forms It does not matter if they relate to a physical injury or physical sickness. Amend tax forms Amounts received in settlement of pension rights (if you did not contribute to the plan). Amend tax forms Damages for: Patent or copyright infringement, Breach of contract, or Interference with business operations. Amend tax forms Back pay and damages for emotional distress received to satisfy a claim under title VII of the Civil Rights Act of 1964. Amend tax forms Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income. Amend tax forms   Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments). Amend tax forms Emotional distress. Amend tax forms   Emotional distress itself is not a physical injury or physical sickness, but damages you receive for emotional distress due to a physical injury or sickness are treated as received for the physical injury or sickness. Amend tax forms Do not include them in your income. Amend tax forms   If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, employment discrimination or injury to reputation), you must include the damages in your income, except for any damages you receive for medical care due to that emotional distress. Amend tax forms Emotional distress includes physical symptoms that result from emotional distress, such as headaches, insomnia, and stomach disorders. Amend tax forms Deduction for costs involved in unlawful discrimination suits. Amend tax forms   You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. Amend tax forms For more information, see Publication 525. Amend tax forms Credit card insurance. Amend tax forms   In most cases, if you receive benefits under a credit card disability or unemployment insurance plan, the benefits are taxable to you. Amend tax forms These plans make the minimum monthly payment on your credit card account if you cannot make the payment due to injury, illness, disability, or unemployment. Amend tax forms Report on Form 1040, line 21, the amount of benefits you received during the year that is more than the amount of the premiums you paid during the year. Amend tax forms Down payment assistance. Amend tax forms   If you purchase a home and receive assistance from a nonprofit corporation to make the down payment, that assistance is not included in your income. Amend tax forms If the corporation qualifies as a tax-exempt charitable organization, the assistance is treated as a gift and is included in your basis of the house. Amend tax forms If the corporation does not qualify, the assistance is treated as a rebate or reduction of the purchase price and is not included in your basis. Amend tax forms Employment agency fees. Amend tax forms   If you get a job through an employment agency, and the fee is paid by your employer, the fee is not includible in your income if you are not liable for it. Amend tax forms However, if you pay it and your employer reimburses you for it, it is includible in your income. Amend tax forms Energy conservation subsidies. Amend tax forms   You can exclude from gross income any subsidy provided, either directly or indirectly, by public utilities for the purchase or installation of an energy conservation measure for a dwelling unit. Amend tax forms Energy conservation measure. Amend tax forms   This includes installations or modifications that are primarily designed to reduce consumption of electricity or natural gas, or improve the management of energy demand. Amend tax forms Dwelling unit. Amend tax forms   This includes a house, apartment, condominium, mobile home, boat, or similar property. Amend tax forms If a building or structure contains both dwelling and other units, any subsidy must be properly allocated. Amend tax forms Estate and trust income. Amend tax forms    An estate or trust, unlike a partnership, may have to pay federal income tax. Amend tax forms If you are a beneficiary of an estate or trust, you may be taxed on your share of its income distributed or required to be distributed to you. Amend tax forms However, there is never a double tax. Amend tax forms Estates and trusts file their returns on Form 1041, U. Amend tax forms S. Amend tax forms Income Tax Return for Estates and Trusts, and your share of the income is reported to you on Schedule K-1 (Form 1041). Amend tax forms Current income required to be distributed. Amend tax forms   If you are the beneficiary of an estate or trust that must distribute all of its current income, you must report your share of the distributable net income, whether or not you actually received it. Amend tax forms Current income not required to be distributed. Amend tax forms    If you are the beneficiary of an estate or trust and the fiduciary has the choice of whether to distribute all or part of the current income, you must report: All income that is required to be distributed to you, whether or not it is actually distributed, plus All other amounts actually paid or credited to you, up to the amount of your share of distributable net income. Amend tax forms How to report. Amend tax forms   Treat each item of income the same way that the estate or trust would treat it. Amend tax forms For example, if a trust's dividend income is distributed to you, you report the distribution as dividend income on your return. Amend tax forms The same rule applies to distributions of tax-exempt interest and capital gains. Amend tax forms   The fiduciary of the estate or trust must tell you the type of items making up your share of the estate or trust income and any credits you are allowed on your individual income tax return. Amend tax forms Losses. Amend tax forms   Losses of estates and trusts generally are not deductible by the beneficiaries. Amend tax forms Grantor trust. Amend tax forms   Income earned by a grantor trust is taxable to the grantor, not the beneficiary, if the grantor keeps certain control over the trust. Amend tax forms (The grantor is the one who transferred property to the trust. Amend tax forms ) This rule applies if the property (or income from the property) put into the trust will or may revert (be returned) to the grantor or the grantor's spouse. Amend tax forms   Generally, a trust is a grantor trust if the grantor has a reversionary interest valued (at the date of transfer) at more than 5% of the value of the transferred property. Amend tax forms Expenses paid by another. Amend tax forms   If your personal expenses are paid for by another person, such as a corporation, the payment may be taxable to you depending upon your relationship with that person and the nature of the payment. Amend tax forms But if the payment makes up for a loss caused by that person, and only restores you to the position you were in before the loss, the payment is not includible in your income. Amend tax forms Fees for services. Amend tax forms   Include all fees for your services in your income. Amend tax forms Examples of these fees are amounts you receive for services you perform as: A corporate director, An executor, administrator, or personal representative of an estate, A manager of a trade or business you operated before declaring Chapter 11 bankruptcy, A notary public, or An election precinct official. Amend tax forms Nonemployee compensation. Amend tax forms   If you are not an employee and the fees for your services from the same payer total $600 or more for the year, you may receive a Form 1099-MISC. Amend tax forms You may need to report your fees as self-employment income. Amend tax forms See Self-Employed Persons , in chapter 1, for a discussion of when you are considered self-employed. Amend tax forms Corporate director. Amend tax forms   Corporate director fees are self-employment income. Amend tax forms Report these payments on Schedule C or Schedule C-EZ (Form 1040). Amend tax forms Personal representatives. Amend tax forms   All personal representatives must include in their gross income fees paid to them from an estate. Amend tax forms If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on Form 1040, line 21. Amend tax forms If you are in the trade or business of being an executor, report these fees as self-employment income on Schedule C or Schedule C-EZ (Form 1040). Amend tax forms The fee is not includible in income if it is waived. Amend tax forms Manager of trade or business for bankruptcy estate. Amend tax forms   Include in your income all payments received from your bankruptcy estate for managing or operating a trade or business that you operated before you filed for bankruptcy. Amend tax forms Report this income on Form 1040, line 21. Amend tax forms Notary public. Amend tax forms    Report payments for these services on Schedule C or Schedule C-EZ (Form 1040). Amend tax forms These payments are not subject to self-employment tax. Amend tax forms See the separate instructions for Schedule SE (Form 1040) for details. Amend tax forms Election precinct official. Amend tax forms    You should receive a Form W-2 showing payments for services performed as an election official or election worker. Amend tax forms Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Amend tax forms Foster care providers. Amend tax forms   Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. Amend tax forms However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments. Amend tax forms   A qualified foster individual is a person who: Is living in a foster family home, and Was placed there by: An agency of a state or one of its political subdivisions, or A qualified foster care placement agency. Amend tax forms Difficulty-of-care payments. Amend tax forms   These are additional payments that are designated by the payer as compensation for providing the additional care that is required for physically, mentally, or emotionally handicapped qualified foster individuals. Amend tax forms A state must determine that the additional compensation is needed, and the care for which the payments are made must be provided in your home. Amend tax forms   You must include in your income difficulty-of-care payments received for more than: 10 qualified foster individuals under age 19, or 5 qualified foster individuals age 19 or older. Amend tax forms Maintaining space in home. Amend tax forms   If you are paid to maintain space in your home for emergency foster care, you must include the payment in your income. Amend tax forms Reporting taxable payments. Amend tax forms    If you receive payments that you must include in your income, you are in business as a foster care provider and you are self-employed. Amend tax forms Report the payments on Schedule C or Schedule C-EZ (Form 1040). Amend tax forms See Publication 587, Business Use of Your Home, to help you determine the amount you can deduct for the use of your home. Amend tax forms Found property. Amend tax forms   If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession. Amend tax forms Free tour. Amend tax forms   If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Amend tax forms Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. Amend tax forms You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. Amend tax forms If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040). Amend tax forms Gambling winnings. Amend tax forms   You must include your gambling winnings in income on Form 1040, line 21. Amend tax forms If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. Amend tax forms Lotteries and raffles. Amend tax forms   Winnings from lotteries and raffles are gambling winnings. Amend tax forms In addition to cash winnings, you must include in your income the fair market value of bonds, cars, houses, and other noncash prizes. Amend tax forms    If you win a state lottery prize payable in installments, see Publication 525 for more information. Amend tax forms Form W-2G. Amend tax forms   You may have received a Form W-2G, Certain Gambling Winnings, showing the amount of your gambling winnings and any tax taken out of them. Amend tax forms Include the amount from box 1 on Form 1040, line 21. Amend tax forms Include the amount shown in box 4 on Form 1040, line 62, as federal income tax withheld. Amend tax forms Reporting winnings and recordkeeping. Amend tax forms   For more information on reporting gam