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File A 1040ez

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File A 1040ez

File a 1040ez Publication 1542 - Main Content Table of Contents How To Use Per Diem Rate TablesThe Two Substantiation Methods Transition Rules Per Diem Rate Tables How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). File a 1040ez How To Use Per Diem Rate Tables This section contains information about the per diem rate substantiation methods available and the choice of rates you must make for the last 3 months of the year. File a 1040ez The Two Substantiation Methods The tables in this publication reflect the high-low substantiation method and the regular federal per diem rate method. File a 1040ez High-low method. File a 1040ez   Tables 1 and 2 in this publication list the localities that are treated under the high-low substantiation method as high-cost localities for all or part of the year. File a 1040ez Table 1 lists the localities that are eligible for $233 ($65 meals and incidental expenses (M&IE)) per diem, effective October 1, 2010. File a 1040ez For travel on or after October 1, 2010, all other localities within CONUS are eligible for $160 ($52 M&IE) per diem under the high-low method. File a 1040ez    Table 2 lists the localities that are eligible for $242 ($65 M&IE) per diem, effective October 1, 2011. File a 1040ez For travel on or after October 1, 2011, the per diem for all other localities decreases to $163 ($52 M&IE). File a 1040ez Regular federal per diem rate method. File a 1040ez   Tables 3 and 4 give the regular federal per diem rates published by the General Services Administration (GSA). File a 1040ez Both tables include the separate rate for meals and incidental expenses (M&IE) for each locality. File a 1040ez The rates listed in Table 3 are effective October 1, 2010; those in Table 4 are effective October 1, 2011. File a 1040ez The standard rate for all locations within CONUS not specifically listed in Table 3 is $123 ($77 for lodging and $46 for M&IE). File a 1040ez For Table 4, this rate is $123 ($77 for lodging and $46 for M&IE). File a 1040ez Transition Rules The transition period covers the last 3 months of the calendar year, from the time that new rates are effective (generally October 1) through December 31. File a 1040ez During this period, you generally may change to the new rates or finish out the year with the rates you had been using. File a 1040ez High-low method. File a 1040ez   If you use the high-low substantiation method for an employee, when new rates become effective (generally October 1) you can either continue with the rates you used for the first part of the year or change to the new rates. File a 1040ez However, you must continue using the high-low method for that employee for the rest of the calendar year (through December 31). File a 1040ez Also, you must use the same rates for all employees reimbursed under the high-low method during that calendar year. File a 1040ez   For example, Employee A travels extensively during March and April of 2012, and you determine A's travel allowance (reimbursement) using the high-low method (Table 2). File a 1040ez Employee A does not travel again until November 2012. File a 1040ez For A's November trip and any others during the remainder of 2012, you may continue using the same set of rates (Table 2) or change to the new rates that generally will be effective in October. File a 1040ez Assume that two of your other employees, B and C, are also reimbursed under the high-low method—your choice of rates must also apply to them. File a 1040ez   For Employee A's travel on or after January 1, 2013, you must use the rates in effect for 2013, but may either continue with the high-low method or choose the regular federal per diem rate method. File a 1040ez The choice of method stays in effect for the entire 2013 calendar year. File a 1040ez   The new rates and localities for the high-low method are included each year in a revenue procedure that is generally published in mid- to late-September. File a 1040ez You can find the revenue procedure in the weekly Internal Revenue Bulletin (IRB) on the Internet at www. File a 1040ez irs. File a 1040ez gov/irb. File a 1040ez Federal per diem rate method. File a 1040ez   New CONUS per diem rates become effective on October 1 of each year and remain in effect through September 30 of the following year. File a 1040ez Employees being reimbursed under the per diem rate method during the first 9 months of a year (January 1–September 30) must continue under the same method through the end of that calendar year (December 31). File a 1040ez However, for travel by these employees from October 1 through December 31, you can choose to continue using the same per diem rates or use the new rates. File a 1040ez Your choice applies to all employees reimbursed under the per diem rate method during that calendar year. File a 1040ez Just as for the high-low method, you must continue using the same method for an employee for the entire calendar year. File a 1040ez   For example, Employees P and Q attend an industry conference in February 2012, and you reimburse their expenses using the per diem rate method (Table 4). File a 1040ez Employee P attends other conferences in July (reimbursed using Table 4) and December 2012, while Employee Q's only other travel occurs in October 2012. File a 1040ez When determining Q's travel allowance for the October travel, you must decide whether to continue with the old (Table 4) rates or adopt the new ones effective October 1, 2012. File a 1040ez Your choice of rates will also apply to Employee P's December travel. File a 1040ez Both employees must continue being reimbursed under the per diem rate method for travel through December 31, 2012. File a 1040ez You can choose a new method for either or both employees; this choice will become effective on January 1, 2013. File a 1040ez   The new federal CONUS per diem rates are published each year, generally early in September, on the Internet. File a 1040ez Go to www. File a 1040ez gsa. File a 1040ez gov/perdiem. File a 1040ez Per diem rates for localities listed in Table 4 may change at any time during the rest of 2011 or 2012. File a 1040ez To be sure you have the most current rate, check IRS. File a 1040ez gov for an updated Publication 1542, the other Internet website listed earlier under Per diem rates on the Internet, or call the IRS at 1-800-829-1040. File a 1040ez Per Diem Rate Tables Table 1. File a 1040ez Localities Eligible for $233 ($65 M&IE) Per Diem Amount Under the High-Low Substantiation Method (Effective October 1, 2010 – September 30, 2011)1,2 Note: The standard (“low”) rate of $160 ($108 for lodging and $52 for M&IE) applies to all locations within the continental United States (CONUS) not specifically listed below or encompassed by the boundary definition of a listed point. File a 1040ez Per Diem Locality Effective Date of State Key City County and/or Other Defined Location $233 Rate AZ Phoenix, Scottsdale Maricopa 1/1 - 5/31   Sedona City limits of Sedona 3/1 - 4/30 CA Monterey Monterey All year   Napa Napa 4/1 - 9/30 10/1 - 11/30   San Diego San Diego All year   San Francisco San Francisco All year   Santa Barbara Santa Barbara All year   Santa Monica City limits of Santa Monica All year   South Lake Tahoe El Dorado All year   Yosemite National Park Mariposa All year CO Aspen Pitkin 1/1 - 3/31 6/1 - 8/31 12/1 - 12/31   Denver, Aurora Denver, Adams, Arapahoe, Jefferson All year   Silverthorne, Breckenridge Summit 1/1 - 3/31 12/1 - 12/31   Steamboat Springs Routt 1/1 - 3/31 12/1 - 12/31   Telluride San Miguel 1/1 - 3/31 12/1 - 12/31   Vail Eagle 1/1 - 8/31 12/1 - 12/31 DC Washington, DC (also the cities of Alexandria, Fairfax, and Falls Church, and the counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and Prince George's in Maryland)   All year FL Fort Lauderdale Broward 1/1 - 5/31   Fort Walton Beach, DeFuniak Springs Okaloosa, Walton 6/1 - 7/31   Key West Monroe All year   Miami Miami-Dade 1/1 - 3/31 12/1 - 12/31   Naples Collier 1/1 - 4/30 IL Chicago Cook, Lake All year LA New Orleans Orleans, St. File a 1040ez Bernard, Jefferson, Plaquemines Parishes 1/1 - 6/30 10/1 - 12/31 MA Boston, Cambridge Suffolk, City of Cambridge All year   Falmouth City limits of Falmouth 7/1 - 8/31   Martha's Vineyard Dukes 7/1 - 8/31   Nantucket Nantucket 6/1 - 9/30 MD Counties of Montgomery and Prince George's   All year Table 1. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Effective Date of State Key City County and/or Other Defined Location $233 Rate MD Baltimore Baltimore City 3/1 - 9/30 10/1 - 11/30   Cambridge, St. File a 1040ez Michaels Dorchester, Talbot 6/1 - 8/31   Ocean City Worcester 6/1 - 8/31 ME Bar Harbor Hancock 7/1 - 8/31 NC Kill Devil Dare 6/1 - 8/31 NH Conway Carroll 7/1 - 8/31 NY Floral Park, Garden City, Great Neck Nassau All year   Glens Falls Warren 7/1 - 8/31   Lake Placid Essex 7/1 - 8/31   Manhattan (includes the boroughs of Manhattan, Brooklyn, the Bronx, Queens, and Staten Island) Bronx, Kings, New York, Queens, Richmond All year   Riverhead, Ronkonkoma, Melville Suffolk 6/1 - 8/31   Saratoga Springs, Schenectady Saratoga, Schenectady 7/1 - 8/31   Tarrytown, White Plains, New Rochelle Westchester All year PA Philadelphia Philadelphia All year RI Jamestown, Middletown, Newport Newport 5/1 - 9/30 10/1 - 10/31 UT Park City Summit 1/1 - 3/31 VA Cities of Alexandria, Falls Church, and Fairfax; Counties of Arlington and Fairfax   All year   Virginia Beach City of Virginia Beach 6/1 - 8/31 VT Stowe Lamoille 1/1 - 3/31 6/1 - 12/31 WA Seattle King All year WY Jackson, Pinedale Teton, Sublette 7/1 - 8/31 1 Transition rule. File a 1040ez A payor who uses the high-low substantiation method  in Table 1 for an employee during the first 9 months of calendar year 2011 must continue to use the high-low substantiation method for the remainder  of calendar year 2011 for that employee. File a 1040ez For travel on or after October 1, 2011, and before January 1, 2012, the payor may continue to use the rates and high-cost localities published in Table 1 or the updated rates and high-cost localities published in the revenue procedure that supersedes Revenue Procedure 2010-39, as long as those rates and localities are used consistently during this period for all employees reimbursed under this method. File a 1040ez See Transition Rules under How To Use Per Diem Rate Tables for an example. File a 1040ez    2 Revenue Procedure 2010-39 in Internal Revenue Bulletin 2010-42. File a 1040ez Table 2. File a 1040ez Localities Eligible for $242 ($65 M&IE) Per Diem Amount Under the High-Low Substantiation Method (Effective October 1, 2011)1,2 Note: The standard (“low”) rate of $163 ($111 for lodging and $52 for M&IE) applies to all locations within the continental United States (CONUS) not specifically listed below or encompassed by the boundary definition of a listed point. File a 1040ez Per Diem Locality Effective Date of State Key City County and/or Other Defined Location $242 Rate AZ Sedona City limits of Sedona 3/1 - 4/30 CA Monterey Monterey All year   Napa Napa 4/1 - 9/30 10/1 - 11/30   San Diego San Diego All year   San Francisco San Francisco All year   Santa Barbara Santa Barbara All year   Santa Monica City limits of Santa Monica All year   Yosemite National Park Mariposa 6/1 - 8/31 CO Aspen Pitkin 1/1 - 3/31 6/1 - 8/31 12/1 - 12/31   Denver, Aurora Denver, Adams, Arapahoe, Jefferson All year   Steamboat Springs Routt 1/1 - 3/31 12/1 - 12/31   Telluride San Miguel 1/1 - 3/31 12/1 - 12/31   Vail Eagle 1/1 - 8/31 12/1 - 12/31 DC Washington, DC (also the cities of Alexandria, Fairfax, and Falls Church, and the counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and Prince George's in Maryland)   All year FL Fort Lauderdale Broward 1/1 - 5/31   Fort Walton Beach, DeFuniak Springs Okaloosa, Walton 6/1 - 7/31   Key West Monroe All year   Miami Miami-Dade 1/1 - 3/31 12/1 - 12/31   Naples Collier 1/1 - 4/30 IL Chicago Cook, Lake 4/1 - 9/30 10/1 - 11/30 LA New Orleans Orleans, St. File a 1040ez Bernard, Jefferson, Plaquemines Parishes 1/1 - 6/30 10/1 - 12/31 MA Boston, Cambridge Suffolk, City of Cambridge All year   Falmouth City limits of Falmouth 7/1 - 8/31   Martha's Vineyard Dukes 7/1 - 8/31   Nantucket Nantucket 6/1 - 9/30 Table 2. File a 1040ez (Effective October 1, 2011) (Continued) Per Diem Locality Effective Date of State Key City County and/or Other Defined Location $242 Rate MD Counties of Montgomery and Prince George's   All year   Baltimore Baltimore City 3/1 - 9/30 10/1 - 11/30   Cambridge, St. File a 1040ez Michaels Dorchester, Talbot 6/1 - 8/31   Ocean City Worcester 6/1 - 8/31 ME Bar Harbor Hancock 7/1 - 8/31 NC Kill Devil Dare 6/1 - 8/31 NH Conway Carroll 7/1 - 8/31 NY Floral Park, Garden City, Great Neck Nassau All year   Glens Falls Warren 7/1 - 8/31   Lake Placid Essex 7/1 - 8/31   Manhattan (includes the boroughs of Manhattan, Brooklyn, the Bronx, Queens, and Staten Island) Bronx, Kings, New York, Queens, Richmond All year   Saratoga Springs, Schenectady Saratoga, Schenectady 7/1 - 8/31   Tarrytown, White Plains, New Rochelle Westchester All year PA Philadelphia Philadelphia All year RI Jamestown, Middletown, Newport Newport 5/1 - 9/30 10/1 - 10/31 UT Park City Summit 1/1 - 3/31 VA Cities of Alexandria, Falls Church, and Fairfax; Counties of Arlington and Fairfax   All year   Virginia Beach City of Virginia Beach 6/1 - 8/31 WA Seattle King All year WY Jackson, Pinedale Teton, Sublette 7/1 - 8/31 1 Transition rule. File a 1040ez A payor who uses the high-low substantiation method  in Table 2 for an employee during the first 9 months of calendar year 2012 must continue to use the high-low substantiation method for the remainder  of calendar year 2012 for that employee. File a 1040ez For travel on or after October 1, 2012, and before January 1, 2013, the payor may continue to use the rates and high-cost localities published in Table 2 or the updated rates and high-cost localities published in the revenue procedure that supersedes Revenue Procedure 2011-47 and Notice 2011-81, as long as those rates and localities are used consistently during this period for all employees reimbursed under this method. File a 1040ez See Transition Rules under How To Use Per Diem Rate Tables for an example. File a 1040ez    2 Revenue Procedure 2011-47 and Notice 2011-81 in Internal Revenue Bulletin 2011-42. File a 1040ez Table 3. File a 1040ez Maximum Federal Per Diem Rates (Effective October 1, 2010 – September 30, 2011)1 Note: The standard rate of $123 ($77 for lodging and $46 for M&IE) applies to all locations within the continental United States (CONUS) not specifically listed below or encompassed by the boundary definition of a listed point. File a 1040ez However, the standard CONUS rate applies to all locations within CONUS, including those defined below, for certain relocation allowances. File a 1040ez (See parts 302-2, 302-4, and 302-5 of 41 CFR. File a 1040ez ) Table 4 lists all per diem rates alphabetically by state abbreviation. File a 1040ez Click on a link below to find rates for your state: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas , Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate AL Birmingham Jefferson, Shelby All year $88   $56   $144     Gulf Shores Baldwin 1/1 - 5/31 101   51   152         6/1 - 7/31 126   51   177         8/1 - 12/31 101   51   152     Huntsville Madison, Limestone All year 86   51   137     Mobile Mobile 1/1 - 2/28 98   51   149         3/1 - 12/31 90   51   141   AR Hot Springs Garland All year 101   46   147     Little Rock Pulaski All year 88   61   149   AZ Grand Canyon, Flagstaff Coconino (except city limits of Sedona), Yavapai 1/1 - 2/28 77   66   143         3/1 - 10/31 95   66   161         11/1 - 12/31 77   66   143     Kayenta Navajo 1/1 - 4/30 77   46   123         5/1 - 9/30 89   46   135         10/1 - 12/31 77   46   123     Phoenix, Scottsdale Maricopa 1/1 - 5/31 126   71   197         6/1 - 8/31 81   71   152         9/1 - 12/31 106   71   177     Sedona City limits of Sedona 1/1 - 2/28 129   66   195         3/1 - 4/30 145   66   211         5/1 - 12/31 129   66   195     Sierra Vista Cochise All year 81   46   127     Tucson Pima 1/1 - 1/31 93   56   149         2/1 - 5/31 111   56   167         6/1 - 8/31 77   56   133         9/1 - 12/31 93   56   149     Yuma Yuma All year 81   46   127   CA Antioch, Brentwood, Concord Contra Costa All year 101   66   167     Barstow, Ontario, Victorville San Bernardino Before 4/01/11 83   56   139         After 3/31/11 99   56   155     Benicia, Dixon, Fairfield Solano All year 84   56   140     Death Valley Inyo All year 92   46   138     Eureka, Arcata, Humboldt 1/1 - 5/31 82   61   143     McKinleyville   6/1 - 8/31 92   61   153         9/1 - 12/31 82   61   143     Fresno Fresno All year 91   61   152     Los Angeles Los Angeles (except the city of Santa Monica), Orange, Ventura; Edwards AFB All year 123   71   194     Mammoth Lakes Mono All year 116   61   177   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate CA Mill Valley, San Rafael, Novato Marin All year $106   $56   $162     Modesto Stanislaus All year 85   51   136     Monterey Monterey 1/1 - 6/30 126   71   197         7/1 - 8/31 152   71   223         9/1 - 12/31 126   71   197     Napa Napa 1/1 - 3/31 107   66   173         4/1 - 11/30 142   66   208         12/1 - 12/31 107   66   173     Oakhurst Madera 1/1 - 4/30 78   56   134         5/1 - 8/31 92   56   148         9/1 - 12/31 78   56   134     Oakland Alameda All year 94   61   155     Palm Springs Riverside 1/1 - 4/30 120   71   191         5/1 - 8/31 90   71   161         9/1 - 12/31 104   71   175     Point Arena, Gualala Mendocino All year 88   66   154     Redding Shasta All year 87   61   148     Sacramento Sacramento All year 101   61   162     San Diego San Diego All year 131   71   202     San Francisco San Francisco Before 1/1/11:                   10/1 - 10/31 174   71   245         11/1 - 12/31 142   71   213         After 12/31/10:                   1/1 - 3/31 142   71   213         4/1 - 8/31 150   71   221         9/1 - 12/31 180   71   251     San Luis Obispo San Luis Obispo 1/1 - 6/30 104   66   170         7/1 - 8/31 121   66   187         9/1 - 12/31 104   66   170     San Mateo, Foster City, Belmont San Mateo All year 108   61   169     Santa Barbara Santa Barbara 1/1 - 6/30 143   66   209         7/1 - 8/31 172   66   238         9/1 - 12/31 143   66   209     Santa Cruz Santa Cruz All year 93   66   159     Santa Monica City limits of Santa Monica All year 180   71   251     Santa Rosa Sonoma All year 109   61   170     South Lake Tahoe El Dorado All year 125   71   196     Stockton San Joaquin All year 80   56   136     Sunnyvale, Palo Alto, San Jose Santa Clara All year 116   56   172     Tahoe City Placer All year 87   61   148     Truckee Nevada 1/1 - 2/28 113   71   184         3/1 - 11/30 96   71   167         12/1 - 12/31 113   71   184     Visalia, Lemoore Tulare, Kings All year 83   61   144     West Sacramento Yolo All year 91   51   142     Yosemite National Mariposa 1/1 - 5/31 129   71   200     Park   6/1 - 8/31 162   71   233         9/1 - 12/31 129   71   200   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate CO Aspen Pitkin 1/1 - 3/31 $202   $71   $273         4/1 - 5/31 107   71   178         6/1 - 8/31 143   71   214         9/1 - 11/30 103   71   174         12/1 - 12/31 202   71   273     Boulder, Broomfield Boulder, Broomfield All year 104   61   165     Colorado Springs El Paso All year 84   66   150     Cortez Montezuma 1/1 - 5/31 87   51   138         6/1 - 8/31 105   51   156         9/1 - 12/31 87   51   138     Crested Butte, Gunnison Gunnison 1/1 - 3/31 82   51   133         4/1 - 5/31 77   51   128         6/1 - 8/31 95   51   146         9/1 - 12/31 82   51   133     Denver, Aurora Denver, Adams, Arapahoe, and Jefferson All year 141   66   207     Douglas County Douglas All year 101   61   162     Durango La Plata 1/1 - 5/31 93   61   154         6/1 - 9/30 128   61   189         10/1 - 12/31 93   61   154     Fort Collins, Loveland Larimer All year 84   56   140     Glenwood Springs, Grand Junction Garfield, Mesa All year 86   51   137     Montrose Montrose 1/1 - 5/31 79   56   135         6/1 - 9/30 94   56   150         10/1 - 12/31 79   56   135     Silverthorne, Summit 1/1 - 3/31 147   56   203     Breckenridge   4/1 - 11/30 93   56   149         12/1 - 12/31 147   56   203     Steamboat Springs Routt 1/1 - 3/31 179   56   235         4/1 - 11/30 103   56   159         12/1 - 12/31 179   56   235     Telluride San Miguel 1/1 - 3/31 141   71   212         4/1 - 5/31 93   71   164         6/1 - 9/30 124   71   195         10/1 - 11/30 94   71   165         12/1 - 12/31 141   71   212     Vail Eagle 1/1 - 3/31 261   71   332         4/1 - 8/31 130   71   201         9/1 - 11/30 105   71   176         12/1 - 12/31 261   71   332   CT Bridgeport, Danbury Fairfield All year 114   71   185     Cromwell, Old Saybrook Middlesex All year 83   61   144     Hartford Hartford All year 106   56   162     Lakeville, Salisbury Litchfield All year 93   66   159     New Haven New Haven All year 92   61   153     New London, Groton New London All year 98   61   159   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate DC District of Columbia Washington, DC (also the cities of Alexandria, 1/1 - 2/28 $181   $71   $252       Fairfax, and Falls Church, and the counties of 3/1 - 6/30 211   71   282       Arlington and Fairfax, in Virginia; and the counties 7/1 - 8/31 157   71   228       of Montgomery and Prince George's in Maryland) 9/1 - 10/31 211   71   282       (see also Maryland and Virginia) 11/1 - 12/31 181   71   252   DE Dover Kent 1/1 - 4/30 77   46   123         5/1 - 9/30 92   46   138         10/1 - 12/31 77   46   123     Lewes Sussex 1/1 - 6/30 82   46   128         7/1 - 8/31 123   46   169         9/1 - 12/31 82   46   128     Wilmington New Castle All year 109   56   165   FL Altamonte Springs Seminole All year 80   61   141     Boca Raton, Delray Palm Beach 1/1 - 4/30 111   71   182     Beach, Jupiter   5/1 - 12/31 82   71   153     Bradenton Manatee 1/1 - 4/30 100   56   156         5/1 - 12/31 84   56   140     Cocoa Beach Brevard All year 99   51   150     Daytona Beach Volusia 1/1 - 1/31 84   51   135         2/1 - 7/31 107   51   158         8/1 - 12/31 84   51   135     Fort Lauderdale Broward 1/1 - 2/28 173   71   244         3/1 - 5/31 149   71   220         6/1 - 9/30 103   71   174         10/1 - 12/31 124   71   195     Fort Myers Lee 1/1 - 4/30 115   56   171         5/1 - 12/31 87   56   143     Fort Walton Beach, Okaloosa, Walton 1/1 - 2/28 78   51   129     DeFuniak Springs   3/1 - 5/31 126   51   177         6/1 - 7/31 164   51   215         8/1 - 10/31 112   51   163         11/1 - 12/31 78   51   129     Gainesville Alachua All year 89   51   140     Gulf Breeze Santa Rosa 1/1 - 2/28 92   51   143         3/1 - 5/31 114   51   165         6/1 - 8/31 140   51   191         9/1 - 12/31 92   51   143     Jacksonville, Jacksonville Beach, Mayport Naval Station Duval, Nassau; City of Jacksonville All year 82   51   133     Key West Monroe 1/1 - 1/31 193   71   264         2/1 - 4/30 209   71   280         5/1 - 11/30 145   71   216         12/1 - 12/31 193   71   264     Kissimmee Osceola 1/1 - 5/31 84   46   130         6/1 - 8/31 77   46   123         9/1 - 12/31 84   46   130     Lakeland Polk All year 81   46   127   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate FL Miami Miami-Dade 1/1 - 3/31 $151   $66   $217         4/1 - 5/31 128   66   194         6/1 - 11/30 104   66   170         12/1 - 12/31 151   66   217     Naples Collier 1/1 - 4/30 155   61   216         5/1 - 9/30 101   61   162         10/1 - 12/31 111   61   172     Orlando Orange 1/1 - 5/31 104   56   160         6/1 - 12/31 90   56   146     Panama City Bay 1/1 - 2/28 77   51   128         3/1 - 7/31 110   51   161         8/1 - 12/31 77   51   128     Pensacola, Pensacola Beach Escambia All year 103   46   149     Punta Gorda Charlotte 1/1 - 1/31 77   51   128         2/1 - 4/30 88   51   139         5/1 - 12/31 77   51   128     Sarasota Sarasota 1/1 - 4/30 110   56   166         5/1 - 12/31 86   56   142     Sebring Highlands 1/1 - 3/31 123   46   169         4/1 - 12/31 82   46   128     St. File a 1040ez Augustine St. File a 1040ez Johns All year 97   56   153     Stuart Martin 1/1 - 4/30 102   51   153         5/1 - 12/31 82   51   133     Tallahassee Leon All year 87   46   133     Tampa, St. File a 1040ez Petersburg Pinellas, Hillsborough 1/1 - 4/30 108   51   159         5/1 - 12/31 92   51   143     Vero Beach Indian River 1/1 - 1/31 83   51   134         2/1 - 3/31 99   51   150         4/1 - 12/31 83   51   134   GA Athens Clarke All year 93   46   139     Atlanta Fulton, DeKalb, Cobb All year 132   56   188     Augusta Richmond All year 84   51   135     Columbus Muscogee All year 85   46   131     Jekyll Island, Brunswick Glynn 1/1 - 3/31 92   56   148         4/1 - 11/30 136   56   192         12/1 - 12/31 92   56   148     Savannah Chatham All year 97   56   153   IA Cedar Rapids Linn All year 81   51   132     Des Moines Polk All year 83   51   134     West Des Moines Dallas All year 95   51   146   ID Bonner's Ferry, Boundary, Bonner, Shoshone 1/1 - 6/30 77   61   138     Sandpoint   7/1 - 8/31 99   61   160         9/1 - 12/31 77   61   138     Coeur d'Alene Kootenai 1/1 - 5/31 77   61   138         6/1 - 8/31 105   61   166         9/1 - 12/31 77   61   138     Driggs, Idaho Falls Teton, Bonneville, Fremont All year 78   46   124   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate ID Sun Valley, Ketchum Blaine 1/1 - 5/31 $79   $71   $150         6/1 - 8/31 95   71   166         9/1 - 12/31 79   71   150   IL Bolingbrook, Romeoville, Lemont Will All year 82   51   133     Chicago Cook, Lake 1/1 - 3/31 128   71   199         4/1 - 6/30 166   71   237         7/1 - 8/31 146   71   217         9/1 - 11/30 173   71   244         12/1 - 12/31 128   71   199     Oakbrook Terrace DuPage All year 92   61   153     O'Fallon, Fairview Bond, Calhoun, Clinton, Jersey, Macoupin, All year 105   56   161     Heights, Collinsville Madison, Monroe, St. File a 1040ez Clair                 Springfield Sangamon All year 82   56   138   IN Bloomington Monroe All year 91   56   147     Fort Wayne Allen All year 81   56   137     Hammond, Munster, Merrillville Lake All year 85   46   131     Indianapolis, Carmel Marion, Hamilton; Fort Benjamin Harrison All year 91   61   152     Lafayette Tippecanoe All year 80   51   131     South Bend St. File a 1040ez Joseph All year 87   56   143     Valparaiso, Burlington Beach Porter All year 79   51   130   KS Kansas City, Overland Park Wyandotte, Johnson, Leavenworth All year 99   61   160     Wichita Sedgwick All year 89   56   145   KY Boone County Boone All year 88   51   139     Kenton County Kenton All year 115   56   171     Lexington Fayette All year 89   61   150     Louisville Jefferson 1/1 - 5/31 101   61   162         6/1 - 8/31 95   61   156         9/1 - 12/31 101   61   162   LA Baton Rouge East Baton Rouge Parish All year 96   56   152     Covington, Slidell St. File a 1040ez Tammany Parish All year 88   56   144     Lafayette Lafayette Consolidated Government All year 87   56   143     Lake Charles Calcasieu Parish All year 79   61   140     New Orleans Orleans, Jefferson, Plaquemines, and 1/1 - 6/30 131   71   202       St. File a 1040ez Bernard Parishes 7/1 - 9/30 98   71   169         10/1 - 12/31 131   71   202   MA Andover Essex All year 83   56   139     Boston, Cambridge Suffolk; City of Cambridge 1/1 - 3/31 154   71   225         4/1 - 6/30 190   71   261         7/1 - 8/31 171   71   242         9/1 - 10/31 206   71   277         11/1 - 12/31 154   71   225     Burlington, Woburn Middlesex less the city of Cambridge All year 108   71   179   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate MA Falmouth City limits of Falmouth 1/1 - 4/30 $95   $51   $146         5/1 - 6/30 107   51   158         7/1 - 8/31 161   51   212         9/1 - 12/31 95   51   146     Hyannis Barnstable less the city of Falmouth 1/1 - 6/30 85   56   141         7/1 - 8/31 123   56   179         9/1 - 12/31 85   56   141     Martha's Vineyard Dukes 1/1 - 6/30 114   71   185         7/1 - 8/31 201   71   272         9/1 - 12/31 114   71   185     Nantucket Nantucket 1/1 - 5/31 128   61   189         6/1 - 9/30 243   61   304         10/1 - 12/31 128   61   189     Northampton Hampshire All year 92   56   148     Pittsfield Berkshire 1/1 - 6/30 107   61   168         7/1 - 8/31 126   61   187         9/1 - 12/31 107   61   168     Plymouth, Taunton, New Bedford Plymouth, Bristol All year 88   56   144     Quincy Norfolk All year 114   51   165     Springfield Hampden All year 93   51   144     Worcester Worcester All year 90   61   151   MD Counties of Montgomery   1/1 - 2/28 181   71   252     and Prince George's   3/1 - 6/30 211   71   282         7/1 - 8/31 157   71   228         9/1 - 10/31 211   71   282         11/1 - 12/31 181   71   252     Aberdeen, Bel Air, Belcamp Harford All year 84   56   140     Annapolis Anne Arundel 1/1 - 4/30 100   61   161         5/1 - 10/31 114   61   175         11/1 - 12/31 100   61   161     Baltimore City Baltimore City 1/1 - 2/28 121   71   192         3/1 - 11/30 144   71   215         12/1 - 12/31 121   71   192     Baltimore County Baltimore All year 99   61   160     Cambridge, St. File a 1040ez Michaels Dorchester, Talbot 1/1 - 3/31 101   61   162         4/1 - 5/31 119   61   180         6/1 - 8/31 170   61   231         9/1 - 10/31 131   61   192         11/1 - 12/31 101   61   162     Centreville Queen Anne All year 103   51   154     Columbia Howard All year 105   61   166     Frederick Frederick All year 92   56   148     Hagerstown Washington All year 78   56   134     La Plata, Indian Head Charles All year 84   51   135     Lexington Park, Leonardtown, Lusby St. File a 1040ez Mary's, Calvert All year 102   61   163   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate MD Ocean City Worcester 1/1 - 3/31 $77   $71   $148         4/1 - 5/31 88   71   159         6/1 - 8/31 192   71   263         9/1 - 10/31 105   71   176         11/1 - 12/31 77   71   148   ME Bar Harbor Hancock 1/1 - 6/30 86   61   147         7/1 - 8/31 140   61   201         9/1 - 10/31 112   61   173         11/1 - 12/31 86   61   147     Kennebunk, Kittery, York 1/1 - 3/31 77   56   133     Sanford   4/1 - 6/30 86   56   142         7/1 - 8/31 122   56   178         9/1 - 10/31 96   56   152         11/1 - 12/31 77   56   133     Portland Cumberland, Sagadahoc 1/1 - 6/30 89   56   145         7/1 - 9/30 109   56   165         10/1 - 12/31 89   56   145     Rockport Knox 1/1 - 6/30 80   56   136         7/1 - 9/30 106   56   162         10/1 - 12/31 80   56   136   MI Ann Arbor Washtenaw All year 87   56   143     Detroit Wayne All year 95   56   151     East Lansing, Lansing Ingham, Eaton All year 82   51   133     Grand Rapids Kent All year 81   51   132     Holland Ottawa All year 81   56   137     Kalamazoo, Battle Creek Kalamazoo, Calhoun All year 87   51   138     Midland Midland All year 90   46   136     Muskegon Muskegon 1/1 - 5/31 77   46   123         6/1 - 8/31 101   46   147         9/1 - 12/31 77   46   123     Petoskey Emmet 1/1 - 6/30 77   51   128         7/1 - 8/31 99   51   150         9/1 - 12/31 77   51   128     Pontiac, Auburn Hills Oakland All year 87   56   143     South Haven Van Buren 1/1 - 5/31 77   56   133         6/1 - 8/31 89   56   145         9/1 - 12/31 77   56   133     Traverse City, Leland Grand Traverse, Leelanau 1/1 - 6/30 77   51   128         7/1 - 8/31 109   51   160         9/1 - 12/31 77   51   128   MN Duluth St. File a 1040ez Louis 1/1 - 5/31 80   56   136         6/1 - 10/31 99   56   155         11/1 - 12/31 80   56   136     Eagan, Burnsville, Mendota Heights Dakota All year 82   56   138     Minneapolis, St. File a 1040ez Paul Hennepin, Ramsey All year 120   71   191     Rochester Olmsted All year 95   51   146   MO Columbia Boone All Year 78   51   129   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate MO Kansas City Jackson, Clay, Cass, Platte All year $99   $61   $160     St. File a 1040ez Louis St. File a 1040ez Louis, St. File a 1040ez Charles, Crawford, Franklin, Jefferson, Lincoln, Warren, Washington; St. File a 1040ez Louis City All year 105   66   171     St. File a 1040ez Robert Pulaski All year 78   46   124   MS Gulfport, Biloxi Harrison All year 82   56   138     Hattiesburg Forrest, Lamar All year 85   51   136     Oxford Lafayette County Before 4/01/11 77   46   123         After 3/31/11 96   51   147     Robinsonville Tunica All year 82   51   133     Southaven Desoto All year 88   46   134     Starkville Oktibbeha All year 91   46   137   MT Big Sky, West Gallatin 1/1 - 5/31 80   61   141     Yellowstone   6/1 - 8/31 105   61   166         9/1 - 12/31 80   61   141     Butte Silver Bow All year 86   51   137     Helena Lewis and Clark All year 81   56   137     Missoula, Polson, Missoula, Lake, Flathead 1/1 - 6/30 87   51   138     Kalispell   7/1 - 8/31 104   51   155         9/1 - 12/31 87   51   138   NC Asheville Buncombe 1/1 - 6/30 81   51   132         7/1 - 10/31 90   51   141         11/1 - 12/31 81   51   132     Atlantic Beach, Carteret 1/1 - 5/31 81   56   137     Morehead City   6/1 - 8/31 110   56   166         9/1 - 12/31 81   56   137     Chapel Hill Orange All year 86   56   142     Charlotte Mecklenburg All year 95   51   146     Durham Durham All year 89   51   140     Fayetteville Cumberland All year 91   51   142     Greensboro Guilford All year 85   56   141     Greenville Pitt All year 79   51   130     Kill Devil Dare 1/1 - 5/31 90   61   151         6/1 - 8/31 143   61   204         9/1 - 12/31 90   61   151     New Bern, Havelock Craven All year 94   46   140     Raleigh Wake All year 90   66   156     Wilmington New Hanover All year 97   56   153     Winston-Salem Forsyth All year 83   56   139   ND The standard CONUS rate of $123 ($77 for lodging and $46 for M&IE) applies to all per diem localities in North Dakota. File a 1040ez NE Omaha Douglas 1/1 - 4/30 93   61   154         5/1 - 6/30 104   61   165         7/1 - 12/31 93   61   154   NH Concord Merrimack 1/1 - 5/31 82   51   133         6/1 - 9/30 92   51   143         10/1 - 12/31 82   51   133     Conway Carroll 1/1 - 2/28 116   61   177         3/1 - 6/30 102   61   163         7/1 - 8/31 141   61   202         9/1 - 12/31 116   61   177   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate NH Durham Strafford All year $94   $46   $140     Laconia Belknap 1/1 - 5/31 85   51   136         6/1 - 10/31 101   51   152         11/1 - 12/31 85   51   136     Lebanon, Lincoln, West Lebanon Grafton, Sullivan All year 101   56   157     Manchester Hillsborough All year 86   56   142     Portsmouth Rockingham 1/1 - 6/30 102   61   163         7/1 - 9/30 126   61   187         10/1 - 12/31 102   61   163   NJ Atlantic City, Cape Atlantic, Cape May 1/1 - 3/31 87   66   153     May, Ocean City   4/1 - 12/31 100   66   166     Belle Mead Somerset All year 116   56   172     Cherry Hill, Moorestown Camden, Burlington All year 92   61   153     Eatontown, Freehold Monmouth All year 110   56   166     Edison, Piscataway Middlesex All year 109   51   160     Flemington Hunterdon All year 107   61   168     Newark Bergen, Essex, Hudson, Passaic All year 116   61   177     Parsippany Morris All year 125   56   181     Princeton, Trenton Mercer All year 126   61   187     Springfield, Cranford, New Providence Union All year 94   56   150     Toms River Ocean 1/1 - 5/31 78   51   129         6/1 - 8/31 99   51   150         9/1 - 12/31 78   51   129   NM Albuquerque Bernalillo All year 81   56   137     Las Cruces Dona Ana All year 79   56   135     Los Alamos Los Alamos All year 86   51   137     Santa Fe Santa Fe 1/1 - 6/30 82   71   153         7/1 - 10/31 100   71   171         11/1 - 12/31 82   71   153     Taos Taos All year 87   66   153   NV Incline Village, Washoe 1/1 - 6/30 98   51   149     Reno, Sparks   7/1 - 8/31 123   51   174         9/1 - 12/31 98   51   149     Las Vegas Clark All year 93   71   164     Stateline, Carson City Douglas, Carson City All year 93   61   154   NY Albany Albany All year 104   61   165     Binghamton, Owego Broome, Tioga All year 90   46   136     Buffalo Erie All year 98   56   154     Floral Park, Garden City, Great Neck Nassau All year 143   66   209     Glens Falls Warren 1/1 - 6/30 92   66   158         7/1 - 8/31 133   66   199         9/1 - 12/31 92   66   158     Ithaca, Waterloo, Romulus Tompkins, Seneca All year 114   46   160   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate NY Kingston Ulster All year $101   $66   $167     Lake Placid Essex 1/1 - 2/28 124   61   185         3/1 - 6/30 99   61   160         7/1 - 8/31 145   61   206         9/1 - 11/30 103   61   164         12/1 - 12/31 124   61   185     Manhattan (includes Bronx, Kings, New York, Queens, Richmond Before 1/1/11:               the boroughs of   10/1 - 12/31 269   71   340     Manhattan, Brooklyn   After 12/31/10:               the Bronx, Queens, and Staten Island)   1/1 - 3/31 192   71   263         4/1 - 5/31 212   71   283         6/1 - 8/31 224   71   295         9/1 - 12/31 295   71   366     Niagara Falls Niagara 1/1 - 5/31 77   51   128         6/1 - 8/31 100   51   151         9/1 - 12/31 77   51   128     Nyack, Palisades Rockland All year 103   61   164     Poughkeepsie Dutchess All year 95   66   161     Riverhead, Suffolk 1/1 - 5/31 114   71   185     Ronkonkoma, Melville   6/1 - 8/31 137   71   208         9/1 - 12/31 114   71   185     Rochester Monroe All year 96   51   147     Saratoga Springs, Saratoga, Schenectady 1/1 - 6/30 104   56   160     Schenectady   7/1 - 8/31 151   56   207         9/1 - 12/31 104   56   160     Syracuse, Oswego Onondaga, Oswego All year 93   56   149     Tarrytown, White Plains, New Rochelle Westchester All year 142   71   213     Troy Rensselaer All year 94   51   145     West Point Orange All year 109   51   160   OH Akron Summit All year 85   51   136     Canton Stark All year 88   51   139     Cincinnati Hamilton, Clermont All year 115   56   171     Cleveland Cuyahoga All year 102   56   158     Columbus Franklin All year 94   56   150     Dayton, Fairborn Greene, Darke, Montgomery All year 81   56   137     Hamilton Butler, Warren All year 92   51   143     Mentor Lake All year 88   46   134     Rittman Wayne, Medina All year 87   51   138     Sandusky, Bellevue Erie, Huron 1/1 - 5/31 77   46   123         6/1 - 8/31 83   46   129         9/1 - 12/31 77   46   123     Youngstown Mahoning, Trumbull All year 82   51   133   OK Oklahoma City Oklahoma All year 82   66   148     Tulsa Tulsa, Creek, Osage, Rogers All year 80   61   141   OR Ashland, Crater Lake Jackson, Klamath All year 80   56   136     Beaverton Washington All year 90   51   141   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate OR Bend Deschutes 1/1 - 6/30 $88   $61   $149         7/1 - 8/31 110   61   171         9/1 - 12/31 88   61   149     Clackamas Clackamas All year 87   61   148     Eugene, Florence Lane All year 97   51   148     Lincoln City Lincoln 1/1 - 6/30 83   56   139         7/1 - 8/31 104   56   160         9/1 - 12/31 83   56   139     Portland Multnomah All year 113   66   179     Seaside Clatsop 1/1 - 6/30 93   51   144         7/1 - 8/31 130   51   181         9/1 - 12/31 93   51   144   PA Allentown, Easton, Bethlehem Lehigh, Northampton All year 84   51   135     Bucks County Bucks All year 95   71   166     Chester, Radnor, Essington Delaware All year 96   51   147     Erie Erie All year 82   46   128     Gettysburg Adams 1/1 - 3/31 79   51   130         4/1 - 10/31 98   51   149         11/1 - 12/31 79   51   130     Harrisburg, Hershey Dauphin Before 1/1/11:                   10/31 - 12/31 106   51   157         After 12/31/10:                   1/1 - 3/31 106   51   157         3/31 - 5/31 107   51   158         6/1 - 8/31 134   51   185         9/1 - 12/31 107   51   158     Lancaster Lancaster All year 96   56   152     Malvern, Frazer, Berwyn Chester All year 116   51   167     Mechanicsburg Cumberland All year 83   56   139     Montgomery County Montgomery All year 115   66   181     Philadelphia Philadelphia 1/1 - 8/31 136   66   202         9/1 - 11/30 149   66   215         12/1 - 12/31 136   66   202     Pittsburgh Allegheny All year 115   71   186     Reading Berks All year 89   56   145     Scranton Lackawanna All year 80   56   136     State College Centre All year 86   56   142   RI East Greenwich, Warwick, North Kingstown Kent, Washington All year 84   56   140     Jamestown, Middletown, Newport 1/1 - 4/30 96   71   167     Newport   5/1 - 10/31 145   71   216         11/1 - 12/31 96   71   167     Providence, Bristol Providence, Bristol All year 122   71   193   SC Aiken Aiken All year 81   46   127     Charleston Charleston, Berkeley, Dorchester All year 132   56   188     Columbia Richland, Lexington All year 85   51   136     Greenville Greenville All year 82   56   138   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate SC Hilton Head Beaufort 1/1 - 3/31 $87   $61   $148         4/1 - 8/31 127   61   188         9/1 - 10/31 104   61   165         11/1 - 12/31 87   61   148     Myrtle Beach Horry 1/1 - 3/31 77   51   128         4/1 - 5/31 89   51   140         6/1 - 8/31 116   51   167         9/1 - 10/31 80   51   131         11/1 - 12/31 77   51   128   SD Hot Springs Fall River, Custer 1/1 - 5/31 77   46   123         6/1 - 8/31 101   46   147         9/1 - 12/31 77   46   123     Rapid City Pennington 1/1 - 5/31 77   51   128         6/1 - 8/31 121   51   172         9/1 - 12/31 77   51   128     Sturgis, Spearfish Meade, Butte, Lawrence 1/1 - 5/31 77   51   128         6/1 - 8/31 108   51   159         9/1 - 12/31 77   51   128   TN Brentwood, Franklin Williamson All year 94   56   150     Chattanooga Hamilton All year 88   56   144     Knoxville Knox All year 84   56   140     Memphis Shelby All year 96   61   157     Nashville Davidson All year 110   66   176     Oak Ridge Anderson All year 90   46   136   TX Arlington, Fort Worth, Grapevine Tarrant; City limits of Grapevine All year 138   56   194     Austin Travis All year 104   71   175     Beaumont Jefferson All year 86   51   137     College Station Brazos All year 93   56   149     Corpus Christi Nueces All year 87   51   138     Dallas Dallas; City of Dallas All year 107   71   178     El Paso El Paso All year 88   51   139     Galveston Galveston 1/1 - 2/28 84   56   140         3/1 - 8/31 101   56   157         9/1 - 12/31 84   56   140     Greenville Hunt Before 4/01/2011 78   51   129         After 3/31/2011 86   51   137     Houston Montgomery, Fort Bend, Harris; L. File a 1040ez B. File a 1040ez Johnson Space Center All year 109   71   180     Laredo Webb All year 78   56   134     McAllen Hidalgo All year 85   56   141     Midland Midland All year 92   51   143     Plano Collin All year 100   61   161     Round Rock Williamson All year 90   51   141     San Antonio Bexar All year 106   66   172     South Padre Island Cameron 1/1 - 5/31 85   56   141         6/1 - 7/31 107   56   163         8/1 - 12/31 85   56   141     Waco McLennan All year 85   51   136   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate UT Moab Grand 1/1 - 2/28 $77   $56   $133         3/1 - 10/31 97   56   153         11/1 - 12/31 77   56   133     Park City Summit 1/1 - 3/31 153   71   224         4/1 - 12/31 89   71   160     Provo Utah All year 80   51   131     Salt Lake City Salt Lake, Tooele All year 95   61   156   VA Cities of Alexandria,   1/1 - 2/28 181   71   252     Fairfax, and Falls   3/1 - 6/30 211   71   282     Church; Counties of   7/1 - 8/31 157   71   228     Arlington and Fairfax   9/1 - 10/31 11/1 - 12/31 211 181   71 71   282 252     Abingdon Washington All year 86   46   132     Blacksburg Montgomery All year 95   46   141     Bowling Green Caroline County Before 4/01/2011 77   46   123         After 3/31/2011 89   56   145     Charlottesville Albemarle, Greene; City of Charlottesville All year 113   56   169     Chesapeake, Suffolk City of Chesapeake, City of Suffolk 1/1 - 5/31 78   56   134         6/1 - 8/31 88   56   144         9/1 - 12/31 78   56   134     Chesterfield, Henrico Counties Chesterfield, Henrico All year 87   51   138     Fredericksburg Stafford, Spotsylvania; City of Fredericksburg All year 89   56   145     James City, York, James City and York Counties; City of 1/1 - 3/31 77   51   128     Williamsburg Williamsburg 4/1 - 8/31 91   51   142         9/1 - 12/31 77   51   128     Loudoun County Loudoun All year 111   61   172     Lynchburg Campbell; City of Lynchburg All year 79   51   130     Manassas City of Manassas All year 82   46   128     Norfolk, Portsmouth City of Norfolk, City of Portsmouth All year 92   61   153     Prince William County Prince William All year 89   56   145     Richmond City City of Richmond All year 114   66   180     Roanoke City limits of Roanoke All year 99   51   150     Virginia Beach City of Virginia Beach 1/1 - 5/31 89   56   145         6/1 - 8/31 144   56   200         9/1 - 12/31 89   56   145     Wallops Island Accomack 1/1 - 6/30 84   56   140         7/1 - 8/31 125   56   181         9/1 - 12/31 84   56   140     Warrenton Fauquier All year 93   46   139   VT Burlington, St. File a 1040ez Albans Chittenden, Franklin 1/1 - 5/31 92   66   158         6/1 - 10/31 111   66   177         11/1 - 12/31 92   66   158     Manchester Bennington All year 87   71   158     Middlebury Addison All year 115   61   176     Montpelier Washington All year 100   61   161     Stowe Lamoille 1/1 - 3/31 133   71   204         4/1 - 5/31 101   71   172         6/1 - 12/31 133   71   204   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate VT White River Junction Windsor 1/1 - 2/28 $101   $56   $157         3/1 - 5/31 89   56   145         6/1 - 12/31 101   56   157   WA Anacortes, Coupeville, Oak Harbor San Juan, Skagit, Island All year 90   61   151     Bremerton Kitsap All year 78   66   144     Everett, Lynnwood Snohomish All year 94   61   155     Ocean Shores Grays Harbor 1/1 - 6/30 88   51   139         7/1 - 8/31 107   51   158         9/1 - 12/31 88   51   139     Olympia, Tumwater Thurston All year 86   61   147     Port Angeles, Port Clallam, Jefferson 1/1 - 6/30 94   61   155     Townsend   7/1 - 8/31 123   61   184         9/1 - 12/31 94   61   155     Richland Benton All year 88   46   134     Seattle King All year 139   71   210     Spokane Spokane All year 86   61   147     Tacoma Pierce All year 109   61   170     Vancouver Clark, Cowlitz, Skamania All year 113   56   169   WI Appleton Outagamie All year 81   46   127     Brookfield, Racine Waukesha, Racine All year 87   56   143     Lake Geneva Walworth 1/1 - 5/31 90   51   141         6/1 - 9/30 122   51   173         10/1 - 12/31 90   51   141     Madison Dane All year 88   56   144     Milwaukee Milwaukee All year 95   61   156     Sturgeon Bay Door 1/1 - 6/30 77   56   133         7/1 - 9/30 86   56   142         10/1 - 12/31 77   56   133     Wisconsin Dells Columbia 1/1 - 6/30 77   61   138         7/1 - 8/31 85   61   146         9/1 - 12/31 77   61   138   WV Charleston Kanawha All year 95   51   146     Morgantown Monongalia All year 83   46   129     Shepherdstown Jefferson, Berkeley All year 82   51   133     Wheeling Ohio All year 94   46   140   WY Cody Park 1/1 - 5/31 84   51   135         6/1 - 9/30 117   51   168         10/1 - 12/31 84   51   135     Evanston, Rock Springs Uinta, Sweetwater All year 80   51   131   Table 3. File a 1040ez (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate WY Gillette Campbell 1/1 - 5/31 $91   $51   $142         6/1 - 8/31 109   51   160         9/1 - 12/31 91   51   142     Jackson, Pinedale Teton, Sublette 1/1 - 6/30 109   56   165         7/1 - 8/31 158   56   214         9/1 - 12/31 109   56   165     Sheridan Sheridan 1/1 - 5/31 77   56   133         6/1 - 8/31 89   56   145         9/1 - 12/31 77   56   133   1Transition rule. File a 1040ez In lieu of the updated GSA rates that will be effective October 1, 2011, taxpayers may continue to use the CONUS rates in effect for the first 9 months of 2011 (Table 3) for expenses of all CONUS travel away from home that are paid or incurred during calendar year 2011. File a 1040ez A taxpayer must consistently use either these rates or the updated rates for the period of October 1, 2011, through December 31, 2011. File a 1040ez See Transition Rules under How To Use Per Diem Rate Tables for an example. File a 1040ez    2Unless otherwise specified, the per diem locality is defined as “all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries. File a 1040ez ”   3Per diem localities with county definitions shall include “all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately). File a 1040ez ” 4When a military installation or Government-related facility (whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the two rates which apply to the cities and/or counties, even though part(s) of such activities may be located outside the defined per diem locality. File a 1040ez   Note: Recognizing that all locations are not incorporated cities, the term “city limits” has been used as a general phrase to denote the commonly recognized local boundaries of the location cited. File a 1040ez         Table 4. File a 1040ez Maximum Federal Per Diem Rates (Effective October 1, 2011 – September 30, 2012)1 Note: The standard rate of $123 ($77 for lodging and $46 for M&IE) applies to all locations within the continental United States (CONUS) not specifically listed below or encompassed by the boundary definition of a listed point. File a 1040ez However, the standard CONUS rate applies to all locations within CONUS, including those defined below, for certain relocation allowances. File a 1040ez (See parts 302-2, 302-4, and 302-5 of 41 CFR. File a 1040ez ) Table 4 lists all per diem rates alphabetically by state abbreviation. File a 1040ez Click on a link below to find rates for your state: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas , Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate AL Birmingham Jefferson, Shelby All year $86   $56   $142     Gulf Shores Baldwin 1/1 - 5/31 100   51   151         6/1 - 7/31 117   51   168         8/1 - 12/31 100   51   151     Huntsville Madison, Limestone All year 87   51   138     Mobile Mobile All year 94   51   145     Montgomery/Prattville Montgomery/Autauga All year 80   51   131   AR Hot Springs Garland All year 101   46   147     Little Rock Pulaski All year 86   61   147   AZ Grand Canyon, Flagstaff Coconino (except city limits of Sedona), Yavapai 1/1 - 2/29 77   66   143         3/1 - 10/31 97   66   163         11/1 - 12/31 77   66   143     Kayenta Navajo 1/1 - 4/30 79   46   125         5/1 - 9/30 90   46   136         10/1 - 12/31 79   46   125     Phoenix, Scottsdale Maricopa 1/1 - 5/31 128   71   199         6/1 - 8/31 80   71   151         9/1 - 12/31 105   71   176     Sedona City limits of Sedona 1/1 - 2/29 127   66   193         3/1 - 4/30 145   66   211         5/1 - 12/31 127   66   193     Sierra Vista Cochise All year 83   46   129     Tucson Pima 1/1 - 1/31 90   56   146         2/1 - 5/31 103   56   159         6/1 - 8/31 77   56   133         9/1 - 12/31 90   56   146     Yuma Yuma All year 78   46
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The File A 1040ez

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