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How To Amend A Previous Tax Return

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How To Amend A Previous Tax Return

How to amend a previous tax return Publication 521 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. How to amend a previous tax return Tax questions. How to amend a previous tax return Useful Items - You may want to see: What's New Standard mileage rate. How to amend a previous tax return  For 2013, the standard mileage rate for using your vehicle to move to a new home is 24 cents per mile. How to amend a previous tax return See Travel by car under Deductible Moving Expenses. How to amend a previous tax return Reminders Future developments. How to amend a previous tax return  For the latest information about developments related to Publication 521, such as legislation enacted after it was published, go to www. How to amend a previous tax return irs. How to amend a previous tax return gov/pub521. How to amend a previous tax return Change of address. How to amend a previous tax return  If you change your mailing address, be sure to notify the IRS using Form 8822, Change of Address. How to amend a previous tax return Mail it to the Internal Revenue Service Center for your old address. How to amend a previous tax return Addresses for the service centers are on the back of the form. How to amend a previous tax return If you change your business address or the identity of your responsible party, use Form 8822-B, Change of Address or Responsible Party—Business. How to amend a previous tax return Photographs of missing children. How to amend a previous tax return  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. How to amend a previous tax return Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How to amend a previous tax return You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. How to amend a previous tax return Introduction This publication explains the deduction of certain expenses of moving to a new home because you changed job locations or started a new job. How to amend a previous tax return It includes the following topics. How to amend a previous tax return Who can deduct moving expenses. How to amend a previous tax return What moving expenses are deductible. How to amend a previous tax return What moving expenses are not deductible. How to amend a previous tax return How a reimbursement affects your moving expense deduction. How to amend a previous tax return How and when to report moving expenses. How to amend a previous tax return Special rules for members of the Armed Forces. How to amend a previous tax return Form 3903, Moving Expenses, is used to claim the moving expense deduction. How to amend a previous tax return An example of how to report your moving expenses, including a filled-in Form 3903, is shown near the end of the publication. How to amend a previous tax return You may be able to deduct moving expenses whether you are self-employed or an employee. How to amend a previous tax return Your expenses generally must be related to starting work at your new job location. How to amend a previous tax return However, certain retirees and survivors may qualify to claim the deduction even though they are not starting work at a new job location. How to amend a previous tax return See Who Can Deduct Moving Expenses. How to amend a previous tax return Recordkeeping. How to amend a previous tax return    It is important to maintain an accurate record of expenses you paid to move. How to amend a previous tax return You should save items such as receipts, bills, cancelled checks, credit card statements, and mileage logs. How to amend a previous tax return Also, you should save your Form W-2 and statements of reimbursement from your employer. How to amend a previous tax return Comments and suggestions. How to amend a previous tax return   We welcome your comments about this publication and your suggestions for future editions. How to amend a previous tax return   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. How to amend a previous tax return NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How to amend a previous tax return Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How to amend a previous tax return   You can send your comments from www. How to amend a previous tax return irs. How to amend a previous tax return gov/formspubs/. How to amend a previous tax return Click on “More Information” and then on “Comment on Tax Forms and Publications”. How to amend a previous tax return   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. How to amend a previous tax return Ordering forms and publications. How to amend a previous tax return   Visit www. How to amend a previous tax return irs. How to amend a previous tax return gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. How to amend a previous tax return Internal Revenue Service 1201 N. How to amend a previous tax return Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. How to amend a previous tax return   If you have a tax question, check the information available on IRS. How to amend a previous tax return gov or call 1-800-829-1040. How to amend a previous tax return We cannot answer tax questions sent to either of the above addresses. How to amend a previous tax return Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide Forms (and Instructions) 1040 U. How to amend a previous tax return S. How to amend a previous tax return Individual Income Tax Return 1040X Amended U. How to amend a previous tax return S. How to amend a previous tax return Individual Income Tax Return 3903 Moving Expenses 8822 Change of Address 8822–B Change of Address or Responsible Party-Business See How To Get Tax Help, near the end of this publication, for information about getting the publications and the forms listed above. How to amend a previous tax return Prev  Up  Next   Home   More Online Publications
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Here you'll find items of current interest — new programs, recent guidance or timely reminders.


Fuel Tax Credit Extensions: Frequently Asked Questions

These Q&As tell taxpayers how to claim the credits for qualifying sales or uses during 2012. It also describes changes to the cellulosic biofuel credit for 2013.


Legislation

In the past few years, there have been several laws passed that have tax implications. For more information, visit our pages on:


For Same-Sex Couples and Certain Domestic Partners

The following questions and answers provide information to individuals of the same sex who are lawfully married (same-sex spouses). 

Additional information may be found in: 

The following questions and answers provide information to individuals of the same sex and opposite sex who are in registered domestic partnerships, civil unions, or other similar formal relationships that are not marriages under state law. These individuals are not considered as married or spouses for federal tax purposes.

Additional information on these issues may be found in Notice 2013-61, Revenue Ruling 2013-17 and news release IR-2013-72, Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes; Ruling Provides Certainty, Benefits and Protections Under Federal Tax Law for Same-Sex Married Couples. 


Tax Return Preparer Requirements

The IRS has undertaken several initiatives to reach tax return preparers with education and enforcement. All paid preparers must register with the IRS and obtain a Preparer Tax Identification Number (PTIN). Find out more.


Consumer Alerts

‪Please note that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

  • ‪If you get an unsolicited email that appears to be from the IRS, please report it by sending it to phishing@irs.gov. ‪
  • If you find a suspicious website that claims to be the IRS, please send the site’s URL by email to phishing@irs.gov, using the subject line: suspicious website.

For more information on phishing scams, please see Suspicious e-Mails and Identity Theft.

March 2014
New Email Phishing Scam

The IRS has been alerted to a new email phishing scam. The emails appear to be from the IRS Taxpayer Advocate Service and include a bogus case number and the following message:

“Your reported 2013 income is flagged for review due to a document processing error. Your case has been forwarded to the Taxpayer Advocate Service for resolution assistance. To avoid delays processing your 2013 filing contact the Taxpayer Advocate Service for resolution assistance.”

The recipient is directed to click on links that supposedly provide information about the "advocate" assigned to their case or that let them "review reported income."  The links lead to web pages that solicit personal information.

Taxpayers who get these messages should not respond to the email or click on the links. Instead, they should forward the scam emails to the IRS at phishing@irs.gov. For more information, visit the IRS's Report Phishing web page.

The Taxpayer Advocate Service is a legitimate IRS organization that helps taxpayers resolve federal tax issues that have not been resolved through the normal IRS channels. The IRS, including TAS, does not initiate contact with taxpayers by email, texting or any social media.

November 2013
Typhoon Haiyan Relief Scams

Possible scams are taking place in the wake of Typhoon Haiyan. On Nov. 8, 2013, Typhoon Haiyan — known as Yolanda in the Philippines — made landfall in the central Philippines, bringing strong winds and heavy rains that have resulted in flooding, landslides, and widespread damage.

Following major disasters, it is common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Such fraudulent schemes may involve contact by telephone, social media, email or in-person solicitations.

October 2013
Telephone Scam Now Making the Rounds

The IRS warns consumers about a sophisticated phone scam targeting taxpayers, including recent immigrants, throughout the country. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. Characteristics of this scam include:

  • Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
  • Scammers may be able to recite the last four digits of a victim’s Social Security Number.
  • Scammers spoof the IRS toll-free number on caller ID to make it appear that it’s the IRS calling.
  • Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
  • Victims hear background noise of other calls being conducted to mimic a call site.
  • After threatening victims with jail time or driver’s license revocation, scammers hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.

If you know you owe taxes or you think you might owe taxes, call the IRS at 1-800-829-1040. If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill or the caller made some bogus threats as described above), call and report the incident to the Treasury Inspector General for Tax Administration at 1-800-366-4484. 

October 2012
Don't Fall for Phony IRS Websites

The IRS warns consumers about a new tax scam that uses a website that mimics the IRS e-Services online registration page.

‪The actual IRS e-Services page offers web-based products for tax preparers, not the general public. The phony web page looks almost identical to the real one.

The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and financial information that may be used to steal the victim’s money or identity. Typically, identity thieves empty the victim’s financial accounts, run up charges on the victim’s existing credit cards or apply for new loans, credit cards, services or benefits in the victim’s name.

‪The address of the official IRS website is www.irs.gov. Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov.

The IRS website has information that can help you protect yourself from tax scams of all kinds. Search the site using the term: phishing.


Interim Changes to the ITIN Application Process

Effective June 22, 2012, the IRS has made interim changes that affect the Individual Taxpayer Identification Number (ITIN) application process. Some of the information below, including the documentation requirements for individuals seeking an ITIN, has been superseded by these changes. Taxpayers and their representatives should review these changes, which are further explained in these Frequently Asked Questions, before requesting an ITIN.

On Oct. 2, 2012, the IRS implemented clarifying changes to its temporary procedures for issuing ITINs for noncitizens with tax Extensions and many foreign students.

Beginning Jan. 1, 2013, the IRS implemented improvements to the Individual Taxpayer Identification Number (ITIN) application process. These changes were developed based on an extensive review and feedback from a variety of stakeholders. The updated ITIN procedures build on changes announced last summer and fall to better protect the integrity of the ITIN application process and strengthen the refund process. Read about the new program changes and check out the latest frequently asked questions for more information.


Help for Victims of Ponzi Investment Schemes

If you've been the victim of a Ponzi scheme, find out more about how it affects your tax situation. We also have some new Q&As about distributions received from a trustee/receiver.


Principal Reduction Alternative Under the Home Affordable Modification Program

Find the answers to your tax questions on the Principal Reduction Alternative under the Home Affordable Modification Program (HAMP), which was established by the Departments of the Treasury and Housing and Urban Development to help distressed homeowners lower their monthly mortgage payments. The Principal Reduction Alternative does not apply to loans that are owned or guaranteed by Fannie Mae or Freddie Mac.


Tax Scams

Don't fall victim to tax scams. Remember — if it sounds too good to be true, it probably is. If you know of a tax fraud, you can report it to the IRS by sending completed Form 3949-A, Information Referral, to Internal Revenue Service, Fresno, CA 93888. Download the form or call 1-800-829-3676 to order by mail.

For recent scams, see:

  • IR-2014-16, IRS Releases the “Dirty Dozen” Tax Scams for 2014; Identity Theft, Phone Scams Lead List
  • IR-2013-33, IRS Releases the Dirty Dozen Tax Scams for 2013
  • IR-2012-23, IRS Releases the Dirty Dozen Tax Scams for 2012
  • IR-2011-73, IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scam
  • IR-2011-39, Don’t Fall Prey to the 2011 Dirty Dozen Tax Scams

Education is the best way to avoid the pitfalls of these “too good to be true” tax scams. For additional information, see:


Phishing Scams

The IRS does not send taxpayers unsolicited emails about their tax accounts, tax situations or personal tax issues. If you receive such an email, most likely it's a scam.

IRS impersonation schemes flourish during filing season. These schemes may take place via phone, fax, Internet sites, social networking sites and particularly email. 

Many impersonations are identity theft scams that try to trick victims into revealing personal and financial information that can be used to access their financial accounts. Some email scams contain attachments or links that, when clicked, download malicious code (virus) that infects your computer or direct you to a bogus form or site posing as a genuine IRS form or web site. 

Some impersonations may be commercial Internet sites that consumers unknowingly visit, thinking they're accessing the genuine IRS website, www.IRS.gov. However, such sites have no connection to the IRS.

For more information on scams and what to do if you're subject to one, see: 


Tax Avoidance Transactions

Read up on the IRS's campaign against abusive tax avoidance transactions. Taxpayers with unreported income relating to offshore transactions who wish to voluntarily disclose the information to the IRS can find information on the process.


Why Pay Taxes? The Truth about Frivolous Tax Arguments

The Truth About Frivolous Tax Arguments (PDF 405K) addresses some of the more common false "legal" arguments made by individuals and groups who oppose compliance with the federal tax laws. These arguments are grouped under six general categories, with variations within each category. Each contention is briefly explained, followed by a discussion of the legal authority that rejects the contention. The second section deals with frivolous arguments encountered in collection due process cases. The final section illustrates penalties imposed on those pursuing frivolous cases.

 

Page Last Reviewed or Updated: 28-Mar-2014

The How To Amend A Previous Tax Return

How to amend a previous tax return 12. How to amend a previous tax return   Other Income Table of Contents Introduction Useful Items - You may want to see: Bartering Canceled DebtsInterest included in canceled debt. How to amend a previous tax return Exceptions Host or Hostess Life Insurance ProceedsSurviving spouse. How to amend a previous tax return Endowment Contract Proceeds Accelerated Death Benefits Public Safety Officer Killed in the Line of Duty Partnership Income S Corporation Income RecoveriesItemized Deduction Recoveries Rents from Personal Property RepaymentsMethod 1. How to amend a previous tax return Method 2. How to amend a previous tax return RoyaltiesDepletion. How to amend a previous tax return Coal and iron ore. How to amend a previous tax return Sale of property interest. How to amend a previous tax return Part of future production sold. How to amend a previous tax return Unemployment BenefitsTypes of unemployment compensation. How to amend a previous tax return Governmental program. How to amend a previous tax return Repayment of unemployment compensation. How to amend a previous tax return Tax withholding. How to amend a previous tax return Repayment of benefits. How to amend a previous tax return Welfare and Other Public Assistance Benefits Other IncomeEmotional distress. How to amend a previous tax return Deduction for costs involved in unlawful discrimination suits. How to amend a previous tax return Energy conservation measure. How to amend a previous tax return Dwelling unit. How to amend a previous tax return Current income required to be distributed. How to amend a previous tax return Current income not required to be distributed. How to amend a previous tax return How to report. How to amend a previous tax return Losses. How to amend a previous tax return Grantor trust. How to amend a previous tax return Nonemployee compensation. How to amend a previous tax return Corporate director. How to amend a previous tax return Personal representatives. How to amend a previous tax return Manager of trade or business for bankruptcy estate. How to amend a previous tax return Notary public. How to amend a previous tax return Election precinct official. How to amend a previous tax return Difficulty-of-care payments. How to amend a previous tax return Maintaining space in home. How to amend a previous tax return Reporting taxable payments. How to amend a previous tax return Lotteries and raffles. How to amend a previous tax return Form W-2G. How to amend a previous tax return Reporting winnings and recordkeeping. How to amend a previous tax return Inherited pension or IRA. How to amend a previous tax return Employee awards or bonuses. How to amend a previous tax return Pulitzer, Nobel, and similar prizes. How to amend a previous tax return Payment for services. How to amend a previous tax return VA payments. How to amend a previous tax return Prizes. How to amend a previous tax return Strike and lockout benefits. How to amend a previous tax return Introduction You must include on your return all items of income you receive in the form of money, property, and services unless the tax law states that you do not include them. How to amend a previous tax return Some items, however, are only partly excluded from income. How to amend a previous tax return This chapter discusses many kinds of income and explains whether they are taxable or nontaxable. How to amend a previous tax return Income that is taxable must be reported on your tax return and is subject to tax. How to amend a previous tax return Income that is nontaxable may have to be shown on your tax return but is not taxable. How to amend a previous tax return This chapter begins with discussions of the following income items. How to amend a previous tax return Bartering. How to amend a previous tax return Canceled debts. How to amend a previous tax return Sales parties at which you are the host or hostess. How to amend a previous tax return Life insurance proceeds. How to amend a previous tax return Partnership income. How to amend a previous tax return S Corporation income. How to amend a previous tax return Recoveries (including state income tax refunds). How to amend a previous tax return Rents from personal property. How to amend a previous tax return Repayments. How to amend a previous tax return Royalties. How to amend a previous tax return Unemployment benefits. How to amend a previous tax return Welfare and other public assistance benefits. How to amend a previous tax return These discussions are followed by brief discussions of other income items. How to amend a previous tax return Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 544 Sales and Other Dispositions of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Bartering Bartering is an exchange of property or services. How to amend a previous tax return You must include in your income, at the time received, the fair market value of property or services you receive in bartering. How to amend a previous tax return If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise. How to amend a previous tax return Generally, you report this income on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. How to amend a previous tax return However, if the barter involves an exchange of something other than services, such as in Example 3 below, you may have to use another form or schedule instead. How to amend a previous tax return Example 1. How to amend a previous tax return You are a self-employed attorney who performs legal services for a client, a small corporation. How to amend a previous tax return The corporation gives you shares of its stock as payment for your services. How to amend a previous tax return You must include the fair market value of the shares in your income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) in the year you receive them. How to amend a previous tax return Example 2. How to amend a previous tax return You are self-employed and a member of a barter club. How to amend a previous tax return The club uses “credit units” as a means of exchange. How to amend a previous tax return It adds credit units to your account for goods or services you provide to members, which you can use to purchase goods or services offered by other members of the barter club. How to amend a previous tax return The club subtracts credit units from your account when you receive goods or services from other members. How to amend a previous tax return You must include in your income the value of the credit units that are added to your account, even though you may not actually receive goods or services from other members until a later tax year. How to amend a previous tax return Example 3. How to amend a previous tax return You own a small apartment building. How to amend a previous tax return In return for 6 months rent-free use of an apartment, an artist gives you a work of art she created. How to amend a previous tax return You must report as rental income on Schedule E (Form 1040), Supplemental Income and Loss, the fair market value of the artwork, and the artist must report as income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) the fair rental value of the apartment. How to amend a previous tax return Form 1099-B from barter exchange. How to amend a previous tax return   If you exchanged property or services through a barter exchange, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a similar statement from the barter exchange should be sent to you by February 18, 2014. How to amend a previous tax return It should show the value of cash, property, services, credits, or scrip you received from exchanges during 2013. How to amend a previous tax return The IRS also will receive a copy of Form 1099-B. How to amend a previous tax return Canceled Debts In most cases, if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. How to amend a previous tax return You have no income from the canceled debt if it is intended as a gift to you. How to amend a previous tax return A debt includes any indebtedness for which you are liable or which attaches to property you hold. How to amend a previous tax return If the debt is a nonbusiness debt, report the canceled amount on Form 1040, line 21. How to amend a previous tax return If it is a business debt, report the amount on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) (or on Schedule F (Form 1040), Profit or Loss From Farming, if the debt is farm debt and you are a farmer). How to amend a previous tax return Form 1099-C. How to amend a previous tax return   If a Federal Government agency, financial institution, or credit union cancels or forgives a debt you owe of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. How to amend a previous tax return The amount of the canceled debt is shown in box 2. How to amend a previous tax return Interest included in canceled debt. How to amend a previous tax return   If any interest is forgiven and included in the amount of canceled debt in box 2, the amount of interest also will be shown in box 3. How to amend a previous tax return Whether or not you must include the interest portion of the canceled debt in your income depends on whether the interest would be deductible when you paid it. How to amend a previous tax return See Deductible debt under Exceptions, later. How to amend a previous tax return   If the interest would not be deductible (such as interest on a personal loan), include in your income the amount from Form 1099-C, box 2. How to amend a previous tax return If the interest would be deductible (such as on a business loan), include in your income the net amount of the canceled debt (the amount shown in box 2 less the interest amount shown in box 3). How to amend a previous tax return Discounted mortgage loan. How to amend a previous tax return   If your financial institution offers a discount for the early payment of your mortgage loan, the amount of the discount is canceled debt. How to amend a previous tax return You must include the canceled amount in your income. How to amend a previous tax return Mortgage relief upon sale or other disposition. How to amend a previous tax return   If you are personally liable for a mortgage (recourse debt), and you are relieved of the mortgage when you dispose of the property, you may realize gain or loss up to the fair market value of the property. How to amend a previous tax return To the extent the mortgage discharge exceeds the fair market value of the property, it is income from discharge of indebtedness unless it qualifies for exclusion under Excluded debt , later. How to amend a previous tax return Report any income from discharge of indebtedness on nonbusiness debt that does not qualify for exclusion as other income on Form 1040, line 21. How to amend a previous tax return    You may be able to exclude part of the mortgage relief on your principal residence. How to amend a previous tax return See Excluded debt, later. How to amend a previous tax return   If you are not personally liable for a mortgage (nonrecourse debt), and you are relieved of the mortgage when you dispose of the property (such as through foreclosure), that relief is included in the amount you realize. How to amend a previous tax return You may have a taxable gain if the amount you realize exceeds your adjusted basis in the property. How to amend a previous tax return Report any gain on nonbusiness property as a capital gain. How to amend a previous tax return   See Publication 4681 for more information. How to amend a previous tax return Stockholder debt. How to amend a previous tax return   If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution that is generally dividend income to you. How to amend a previous tax return For more information, see Publication 542, Corporations. How to amend a previous tax return   If you are a stockholder in a corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. How to amend a previous tax return This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. How to amend a previous tax return Repayment of canceled debt. How to amend a previous tax return   If you included a canceled amount in your income and later pay the debt, you may be able to file a claim for refund for the year the amount was included in income. How to amend a previous tax return You can file a claim on Form 1040X if the statute of limitations for filing a claim is still open. How to amend a previous tax return The statute of limitations generally does not end until 3 years after the due date of your original return. How to amend a previous tax return Exceptions There are several exceptions to the inclusion of canceled debt in income. How to amend a previous tax return These are explained next. How to amend a previous tax return Student loans. How to amend a previous tax return   Certain student loans contain a provision that all or part of the debt incurred to attend the qualified educational institution will be canceled if you work for a certain period of time in certain professions for any of a broad class of employers. How to amend a previous tax return   You do not have income if your student loan is canceled after you agreed to this provision and then performed the services required. How to amend a previous tax return To qualify, the loan must have been made by: The Federal Government, a state or local government, or an instrumentality, agency, or subdivision thereof, A tax-exempt public benefit corporation that has assumed control of a state, county, or municipal hospital, and whose employees are considered public employees under state law, or An educational institution: Under an agreement with an entity described in (1) or (2) that provided the funds to the institution to make the loan, or As part of a program of the institution designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or a tax-exempt organization described in section 501(c)(3). How to amend a previous tax return   A loan to refinance a qualified student loan also will qualify if it was made by an educational institution or a qualified tax-exempt organization under its program designed as described in (3)(b) above. How to amend a previous tax return Education loan repayment assistance. How to amend a previous tax return   Education loan repayments made to you by the National Health Service Corps Loan Repayment Program (NHSC Loan Repayment Program), a state education loan repayment program eligible for funds under the Public Health Service Act, or any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas are not taxable. How to amend a previous tax return    The provision relating to the “other state loan repayment or loan forgiveness program” was added to this exclusion for amounts received in tax years beginning after December 31, 2008. How to amend a previous tax return If you included these amounts in income in 2010, 2011, or 2012, you should file an amended tax return to exclude this income. How to amend a previous tax return See Form 1040X and its instructions for details on filing. How to amend a previous tax return Deductible debt. How to amend a previous tax return   You do not have income from the cancellation of a debt if your payment of the debt would be deductible. How to amend a previous tax return This exception applies only if you use the cash method of accounting. How to amend a previous tax return For more information, see chapter 5 of Publication 334, Tax Guide for Small Business. How to amend a previous tax return Price reduced after purchase. How to amend a previous tax return   In most cases, if the seller reduces the amount of debt you owe for property you purchased, you do not have income from the reduction. How to amend a previous tax return The reduction of the debt is treated as a purchase price adjustment and reduces your basis in the property. How to amend a previous tax return Excluded debt. How to amend a previous tax return   Do not include a canceled debt in your gross income in the following situations. How to amend a previous tax return The debt is canceled in a bankruptcy case under title 11 of the U. How to amend a previous tax return S. How to amend a previous tax return Code. How to amend a previous tax return See Publication 908, Bankruptcy Tax Guide. How to amend a previous tax return The debt is canceled when you are insolvent. How to amend a previous tax return However, you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent. How to amend a previous tax return See Publication 908. How to amend a previous tax return The debt is qualified farm debt and is canceled by a qualified person. How to amend a previous tax return See chapter 3 of Publication 225, Farmer's Tax Guide. How to amend a previous tax return The debt is qualified real property business debt. How to amend a previous tax return See chapter 5 of Publication 334. How to amend a previous tax return The cancellation is intended as a gift. How to amend a previous tax return The debt is qualified principal residence indebtedness. How to amend a previous tax return See Publication 525 for additional information. How to amend a previous tax return Host or Hostess If you host a party or event at which sales are made, any gift or gratuity you receive for giving the event is a payment for helping a direct seller make sales. How to amend a previous tax return You must report this item as income at its fair market value. How to amend a previous tax return Your out-of-pocket party expenses are subject to the 50% limit for meal and entertainment expenses. How to amend a previous tax return These expenses are deductible as miscellaneous itemized deductions subject to the 2%-of-AGI limit on Schedule A (Form 1040), but only up to the amount of income you receive for giving the party. How to amend a previous tax return For more information about the 50% limit for meal and entertainment expenses, see chapter 26. How to amend a previous tax return Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. How to amend a previous tax return This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. How to amend a previous tax return However, interest income received as a result of life insurance proceeds may be taxable. How to amend a previous tax return Proceeds not received in installments. How to amend a previous tax return   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. How to amend a previous tax return If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. How to amend a previous tax return Proceeds received in installments. How to amend a previous tax return   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. How to amend a previous tax return   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. How to amend a previous tax return Include anything over this excluded part in your income as interest. How to amend a previous tax return Surviving spouse. How to amend a previous tax return   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude up to $1,000 a year of the interest included in the installments. How to amend a previous tax return If you remarry, you can continue to take the exclusion. How to amend a previous tax return Surrender of policy for cash. How to amend a previous tax return   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. How to amend a previous tax return In most cases, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. How to amend a previous tax return    You should receive a Form 1099-R showing the total proceeds and the taxable part. How to amend a previous tax return Report these amounts on lines 16a and 16b of Form 1040 or lines 12a and 12b of Form 1040A. How to amend a previous tax return More information. How to amend a previous tax return   For more information, see Life Insurance Proceeds in Publication 525. How to amend a previous tax return Endowment Contract Proceeds An endowment contract is a policy under which you are paid a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. How to amend a previous tax return Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. How to amend a previous tax return To determine your cost, subtract any amount that you previously received under the contract and excluded from your income from the total premiums (or other consideration) paid for the contract. How to amend a previous tax return Include the part of the lump sum payment that is more than your cost in your income. How to amend a previous tax return Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are excluded from income if the insured is terminally or chronically ill. How to amend a previous tax return Viatical settlement. How to amend a previous tax return   This is the sale or assignment of any part of the death benefit under a life insurance contract to a viatical settlement provider. How to amend a previous tax return A viatical settlement provider is a person who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill and who meets the requirements of section 101(g)(2)(B) of the Internal Revenue Code. How to amend a previous tax return Exclusion for terminal illness. How to amend a previous tax return    Accelerated death benefits are fully excludable if the insured is a terminally ill individual. How to amend a previous tax return This is a person who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. How to amend a previous tax return Exclusion for chronic illness. How to amend a previous tax return    If the insured is a chronically ill individual who is not terminally ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. How to amend a previous tax return Accelerated death benefits paid on a per diem or other periodic basis are excludable up to a limit. How to amend a previous tax return This limit applies to the total of the accelerated death benefits and any periodic payments received from long-term care insurance contracts. How to amend a previous tax return For information on the limit and the definitions of chronically ill individual, qualified long-term care services, and long-term care insurance contracts, see Long-Term Care Insurance Contracts under Sickness and Injury Benefits in Publication 525. How to amend a previous tax return Exception. How to amend a previous tax return   The exclusion does not apply to any amount paid to a person (other than the insured) who has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the person, or Has a financial interest in the person's business. How to amend a previous tax return Form 8853. How to amend a previous tax return   To claim an exclusion for accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. How to amend a previous tax return You do not have to file Form 8853 to exclude accelerated death benefits paid on the basis of actual expenses incurred. How to amend a previous tax return Public Safety Officer Killed in the Line of Duty If you are a survivor of a public safety officer who was killed in the line of duty, you may be able to exclude from income certain amounts you receive. How to amend a previous tax return For this purpose, the term public safety officer includes law enforcement officers, firefighters, chaplains, and rescue squad and ambulance crew members. How to amend a previous tax return For more information, see Publication 559, Survivors, Executors, and Administrators. How to amend a previous tax return Partnership Income A partnership generally is not a taxable entity. How to amend a previous tax return The income, gains, losses, deductions, and credits of a partnership are passed through to the partners based on each partner's distributive share of these items. How to amend a previous tax return Schedule K-1 (Form 1065). How to amend a previous tax return    Although a partnership generally pays no tax, it must file an information return on Form 1065, U. How to amend a previous tax return S. How to amend a previous tax return Return of Partnership Income, and send Schedule K-1 (Form 1065) to each partner. How to amend a previous tax return In addition, the partnership will send each partner a copy of the Partner's Instructions for Schedule K-1 (Form 1065) to help each partner report his or her share of the partnership's income, deductions, credits, and tax preference items. How to amend a previous tax return Keep Schedule K-1 (Form 1065) for your records. How to amend a previous tax return Do not attach it to your Form 1040, unless you are specifically required to do so. How to amend a previous tax return For more information on partnerships, see Publication 541, Partnerships. How to amend a previous tax return Qualified joint venture. How to amend a previous tax return   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. How to amend a previous tax return To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. How to amend a previous tax return For further information on how to make the election and which schedule(s) to file, see the instructions for your individual tax return. How to amend a previous tax return S Corporation Income In most cases, an S corporation does not pay tax on its income. How to amend a previous tax return Instead, the income, losses, deductions, and credits of the corporation are passed through to the shareholders based on each shareholder's pro rata share. How to amend a previous tax return Schedule K-1 (Form 1120S). How to amend a previous tax return   An S corporation must file a return on Form 1120S, U. How to amend a previous tax return S. How to amend a previous tax return Income Tax Return for an S Corporation, and send Schedule K-1 (Form 1120S) to each shareholder. How to amend a previous tax return In addition, the S corporation will send each shareholder a copy of the Shareholder's Instructions for Schedule K-1 (Form 1120S) to help each shareholder report his or her share of the S corporation's income, losses, credits, and deductions. How to amend a previous tax return Keep Schedule K-1 (Form 1120S) for your records. How to amend a previous tax return Do not attach it to your Form 1040, unless you are specifically required to do so. How to amend a previous tax return For more information on S corporations and their shareholders, see the Instructions for Form 1120S. How to amend a previous tax return Recoveries A recovery is a return of an amount you deducted or took a credit for in an earlier year. How to amend a previous tax return The most common recoveries are refunds, reimbursements, and rebates of deductions itemized on Schedule A (Form 1040). How to amend a previous tax return You also may have recoveries of non-itemized deductions (such as payments on previously deducted bad debts) and recoveries of items for which you previously claimed a tax credit. How to amend a previous tax return Tax benefit rule. How to amend a previous tax return   You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. How to amend a previous tax return For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year. How to amend a previous tax return For more information, see Publication 525. How to amend a previous tax return Federal income tax refund. How to amend a previous tax return   Refunds of federal income taxes are not included in your income because they are never allowed as a deduction from income. How to amend a previous tax return State tax refund. How to amend a previous tax return   If you received a state or local income tax refund (or credit or offset) in 2013, you generally must include it in income if you deducted the tax in an earlier year. How to amend a previous tax return The payer should send Form 1099-G, Certain Government Payments, to you by January 31, 2014. How to amend a previous tax return The IRS also will receive a copy of the Form 1099-G. How to amend a previous tax return If you file Form 1040, use the State and Local Income Tax Refund Worksheet in the 2013 Form 1040 instructions for line 10 to figure the amount (if any) to include in your income. How to amend a previous tax return See Publication 525 for when you must use another worksheet. How to amend a previous tax return   If you could choose to deduct for a tax year either: State and local income taxes, or State and local general sales taxes, then the maximum refund that you may have to include in income is limited to the excess of the tax you chose to deduct for that year over the tax you did not choose to deduct for that year. How to amend a previous tax return For examples, see Publication 525. How to amend a previous tax return Mortgage interest refund. How to amend a previous tax return    If you received a refund or credit in 2013 of mortgage interest paid in an earlier year, the amount should be shown in box 3 of your Form 1098, Mortgage Interest Statement. How to amend a previous tax return Do not subtract the refund amount from the interest you paid in 2013. How to amend a previous tax return You may have to include it in your income under the rules explained in the following discussions. How to amend a previous tax return Interest on recovery. How to amend a previous tax return   Interest on any of the amounts you recover must be reported as interest income in the year received. How to amend a previous tax return For example, report any interest you received on state or local income tax refunds on Form 1040, line 8a. How to amend a previous tax return Recovery and expense in same year. How to amend a previous tax return   If the refund or other recovery and the expense occur in the same year, the recovery reduces the deduction or credit and is not reported as income. How to amend a previous tax return Recovery for 2 or more years. How to amend a previous tax return   If you receive a refund or other recovery that is for amounts you paid in 2 or more separate years, you must allocate, on a pro rata basis, the recovered amount between the years in which you paid it. How to amend a previous tax return This allocation is necessary to determine the amount of recovery from any earlier years and to determine the amount, if any, of your allowable deduction for this item for the current year. How to amend a previous tax return For information on how to compute the allocation, see Recoveries in Publication 525. How to amend a previous tax return Itemized Deduction Recoveries If you recover any amount that you deducted in an earlier year on Schedule A (Form 1040), you generally must include the full amount of the recovery in your income in the year you receive it. How to amend a previous tax return Where to report. How to amend a previous tax return   Enter your state or local income tax refund on Form 1040, line 10, and the total of all other recoveries as other income on Form 1040, line 21. How to amend a previous tax return You cannot use Form 1040A or Form 1040EZ. How to amend a previous tax return Standard deduction limit. How to amend a previous tax return   You generally are allowed to claim the standard deduction if you do not itemize your deductions. How to amend a previous tax return Only your itemized deductions that are more than your standard deduction are subject to the recovery rule (unless you are required to itemize your deductions). How to amend a previous tax return If your total deductions on the earlier year return were not more than your income for that year, include in your income this year the lesser of: Your recoveries, or The amount by which your itemized deductions exceeded the standard deduction. How to amend a previous tax return Example. How to amend a previous tax return For 2012, you filed a joint return. How to amend a previous tax return Your taxable income was $60,000 and you were not entitled to any tax credits. How to amend a previous tax return Your standard deduction was $11,900, and you had itemized deductions of $14,000. How to amend a previous tax return In 2013, you received the following recoveries for amounts deducted on your 2012 return: Medical expenses $200 State and local income tax refund 400 Refund of mortgage interest 325 Total recoveries $925 None of the recoveries were more than the deductions taken for 2012. How to amend a previous tax return The difference between the state and local income tax you deducted and your local general sales tax was more than $400. How to amend a previous tax return Your total recoveries are less than the amount by which your itemized deductions exceeded the standard deduction ($14,000 − 11,900 = $2,100), so you must include your total recoveries in your income for 2013. How to amend a previous tax return Report the state and local income tax refund of $400 on Form 1040, line 10, and the balance of your recoveries, $525, on Form 1040, line 21. How to amend a previous tax return Standard deduction for earlier years. How to amend a previous tax return   To determine if amounts recovered in 2013 must be included in your income, you must know the standard deduction for your filing status for the year the deduction was claimed. How to amend a previous tax return Look in the instructions for your tax return from prior years to locate the standard deduction for the filing status for that prior year. How to amend a previous tax return Example. How to amend a previous tax return You filed a joint return on Form 1040 for 2012 with taxable income of $45,000. How to amend a previous tax return Your itemized deductions were $12,350. How to amend a previous tax return The standard deduction that you could have claimed was $11,900. How to amend a previous tax return In 2013, you recovered $2,100 of your 2012 itemized deductions. How to amend a previous tax return None of the recoveries were more than the actual deductions for 2012. How to amend a previous tax return Include $450 of the recoveries in your 2013 income. How to amend a previous tax return This is the smaller of your recoveries ($2,100) or the amount by which your itemized deductions were more than the standard deduction ($12,350 − $11,900 = $450). How to amend a previous tax return Recovery limited to deduction. How to amend a previous tax return   You do not include in your income any amount of your recovery that is more than the amount you deducted in the earlier year. How to amend a previous tax return The amount you include in your income is limited to the smaller of: The amount deducted on Schedule A (Form 1040), or The amount recovered. How to amend a previous tax return Example. How to amend a previous tax return During 2012 you paid $1,700 for medical expenses. How to amend a previous tax return From this amount you subtracted $1,500, which was 7. How to amend a previous tax return 5% of your adjusted gross income. How to amend a previous tax return Your actual medical expense deduction was $200. How to amend a previous tax return In 2013, you received a $500 reimbursement from your medical insurance for your 2012 expenses. How to amend a previous tax return The only amount of the $500 reimbursement that must be included in your income for 2013 is $200—the amount actually deducted. How to amend a previous tax return Other recoveries. How to amend a previous tax return   See Recoveries in Publication 525 if: You have recoveries of items other than itemized deductions, or You received a recovery for an item for which you claimed a tax credit (other than investment credit or foreign tax credit) in a prior year. How to amend a previous tax return Rents from Personal Property If you rent out personal property, such as equipment or vehicles, how you report your income and expenses is in most cases determined by: Whether or not the rental activity is a business, and Whether or not the rental activity is conducted for profit. How to amend a previous tax return In most cases, if your primary purpose is income or profit and you are involved in the rental activity with continuity and regularity, your rental activity is a business. How to amend a previous tax return See Publication 535, Business Expenses, for details on deducting expenses for both business and not-for-profit activities. How to amend a previous tax return Reporting business income and expenses. How to amend a previous tax return    If you are in the business of renting personal property, report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). How to amend a previous tax return The form instructions have information on how to complete them. How to amend a previous tax return Reporting nonbusiness income. How to amend a previous tax return   If you are not in the business of renting personal property, report your rental income on Form 1040, line 21. How to amend a previous tax return List the type and amount of the income on the dotted line next to line 21. How to amend a previous tax return Reporting nonbusiness expenses. How to amend a previous tax return   If you rent personal property for profit, include your rental expenses in the total amount you enter on Form 1040, line 36. How to amend a previous tax return Also enter the amount and “PPR” on the dotted line next to line 36. How to amend a previous tax return   If you do not rent personal property for profit, your deductions are limited and you cannot report a loss to offset other income. How to amend a previous tax return See Activity not for profit , under Other Income, later. How to amend a previous tax return Repayments If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. How to amend a previous tax return Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. How to amend a previous tax return Generally, you can claim a deduction or credit only if the repayment qualifies as an expense or loss incurred in your trade or business or in a for-profit transaction. How to amend a previous tax return Type of deduction. How to amend a previous tax return   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. How to amend a previous tax return You generally deduct the repayment on the same form or schedule on which you previously reported it as income. How to amend a previous tax return For example, if you reported it as self-employment income, deduct it as a business expense on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). How to amend a previous tax return If you reported it as a capital gain, deduct it as a capital loss as explained in the Instructions for Schedule D (Form 1040). How to amend a previous tax return If you reported it as wages, unemployment compensation, or other nonbusiness income, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040). How to amend a previous tax return Repaid social security benefits. How to amend a previous tax return   If you repaid social security benefits or equivalent railroad retirement benefits, see Repayment of benefits in chapter 11. How to amend a previous tax return Repayment of $3,000 or less. How to amend a previous tax return   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. How to amend a previous tax return If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 23. How to amend a previous tax return Repayment over $3,000. How to amend a previous tax return   If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). How to amend a previous tax return However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. How to amend a previous tax return This means that at the time you included the income, it appeared that you had an unrestricted right to it. How to amend a previous tax return If you qualify for this choice, figure your tax under both methods and compare the results. How to amend a previous tax return Use the method (deduction or credit) that results in less tax. How to amend a previous tax return When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. How to amend a previous tax return Each instance of repayment is not considered separately. How to amend a previous tax return Method 1. How to amend a previous tax return   Figure your tax for 2013 claiming a deduction for the repaid amount. How to amend a previous tax return If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 28. How to amend a previous tax return Method 2. How to amend a previous tax return   Figure your tax for 2013 claiming a credit for the repaid amount. How to amend a previous tax return Follow these steps. How to amend a previous tax return Figure your tax for 2013 without deducting the repaid amount. How to amend a previous tax return Refigure your tax from the earlier year without including in income the amount you repaid in 2013. How to amend a previous tax return Subtract the tax in (2) from the tax shown on your return for the earlier year. How to amend a previous tax return This is the credit. How to amend a previous tax return Subtract the answer in (3) from the tax for 2013 figured without the deduction (Step 1). How to amend a previous tax return   If method 1 results in less tax, deduct the amount repaid. How to amend a previous tax return If method 2 results in less tax, claim the credit figured in (3) above on Form 1040, line 71, by adding the amount of the credit to any other credits on this line, and entering “I. How to amend a previous tax return R. How to amend a previous tax return C. How to amend a previous tax return 1341” in the column to the right of line 71. How to amend a previous tax return   An example of this computation can be found in Publication 525. How to amend a previous tax return Repaid wages subject to social security and Medicare taxes. How to amend a previous tax return   If you had to repay an amount that you included in your wages or compensation in an earlier year on which social security, Medicare, or tier 1 RRTA taxes were paid, ask your employer to refund the excess amount to you. How to amend a previous tax return If the employer refuses to refund the taxes, ask for a statement indicating the amount of the overcollection to support your claim. How to amend a previous tax return File a claim for refund using Form 843, Claim for Refund and Request for Abatement. How to amend a previous tax return Repaid wages subject to Additional Medicare Tax. How to amend a previous tax return   Employers cannot make an adjustment or file a claim for refund for Additional Medicare Tax withholding when there is a repayment of wages received by an employee in a prior year because the employee determines liability for Additional Medicare Tax on the employee's income tax return for the prior year. How to amend a previous tax return If you had to repay an amount that you included in your wages or compensation in an earlier year, and on which Additional Medicare Tax was paid, you may be able to recover the Additional Medicare Tax paid on the amount. How to amend a previous tax return To recover Additional Medicare Tax on the repaid wages or compensation, you must file Form 1040X, Amended U. How to amend a previous tax return S. How to amend a previous tax return Individual Income Tax Return, for the prior year in which the wages or compensation were originally received. How to amend a previous tax return See the Instructions for Form 1040X. How to amend a previous tax return Royalties Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. How to amend a previous tax return In most cases you report royalties in Part I of Schedule E (Form 1040). How to amend a previous tax return However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc. How to amend a previous tax return , report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). How to amend a previous tax return Copyrights and patents. How to amend a previous tax return   Royalties from copyrights on literary, musical, or artistic works, and similar property, or from patents on inventions, are amounts paid to you for the right to use your work over a specified period of time. How to amend a previous tax return Royalties generally are based on the number of units sold, such as the number of books, tickets to a performance, or machines sold. How to amend a previous tax return Oil, gas, and minerals. How to amend a previous tax return   Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property. How to amend a previous tax return The royalties are based on units, such as barrels, tons, etc. How to amend a previous tax return , and are paid to you by a person or company who leases the property from you. How to amend a previous tax return Depletion. How to amend a previous tax return   If you are the owner of an economic interest in mineral deposits or oil and gas wells, you can recover your investment through the depletion allowance. How to amend a previous tax return For information on this subject, see chapter 9 of Publication 535. How to amend a previous tax return Coal and iron ore. How to amend a previous tax return   Under certain circumstances, you can treat amounts you receive from the disposal of coal and iron ore as payments from the sale of a capital asset, rather than as royalty income. How to amend a previous tax return For information about gain or loss from the sale of coal and iron ore, see Publication 544. How to amend a previous tax return Sale of property interest. How to amend a previous tax return   If you sell your complete interest in oil, gas, or mineral rights, the amount you receive is considered payment for the sale of property used in a trade or business under section 1231, not royalty income. How to amend a previous tax return Under certain circumstances, the sale is subject to capital gain or loss treatment as explained in the Instructions for Schedule D (Form 1040). How to amend a previous tax return For more information on selling section 1231 property, see chapter 3 of Publication 544. How to amend a previous tax return   If you retain a royalty, an overriding royalty, or a net profit interest in a mineral property for the life of the property, you have made a lease or a sublease, and any cash you receive for the assignment of other interests in the property is ordinary income subject to a depletion allowance. How to amend a previous tax return Part of future production sold. How to amend a previous tax return   If you own mineral property but sell part of the future production, in most cases you treat the money you receive from the buyer at the time of the sale as a loan from the buyer. How to amend a previous tax return Do not include it in your income or take depletion based on it. How to amend a previous tax return   When production begins, you include all the proceeds in your income, deduct all the production expenses, and deduct depletion from that amount to arrive at your taxable income from the property. How to amend a previous tax return Unemployment Benefits The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits. How to amend a previous tax return Unemployment compensation. How to amend a previous tax return   You must include in income all unemployment compensation you receive. How to amend a previous tax return You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you. How to amend a previous tax return In most cases, you enter unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. How to amend a previous tax return Types of unemployment compensation. How to amend a previous tax return   Unemployment compensation generally includes any amount received under an unemployment compensation law of the United States or of a state. How to amend a previous tax return It includes the following benefits. How to amend a previous tax return Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund. How to amend a previous tax return State unemployment insurance benefits. How to amend a previous tax return Railroad unemployment compensation benefits. How to amend a previous tax return Disability payments from a government program paid as a substitute for unemployment compensation. How to amend a previous tax return (Amounts received as workers' compensation for injuries or illness are not unemployment compensation. How to amend a previous tax return See chapter 5 for more information. How to amend a previous tax return ) Trade readjustment allowances under the Trade Act of 1974. How to amend a previous tax return Unemployment assistance under the Disaster Relief and Emergency Assistance Act. How to amend a previous tax return Unemployment assistance under the Airline Deregulation Act of 1974 Program. How to amend a previous tax return Governmental program. How to amend a previous tax return   If you contribute to a governmental unemployment compensation program and your contributions are not deductible, amounts you receive under the program are not included as unemployment compensation until you recover your contributions. How to amend a previous tax return If you deducted all of your contributions to the program, the entire amount you receive under the program is included in your income. How to amend a previous tax return Repayment of unemployment compensation. How to amend a previous tax return   If you repaid in 2013 unemployment compensation you received in 2013, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. How to amend a previous tax return On the dotted line next to your entry enter “Repaid” and the amount you repaid. How to amend a previous tax return If you repaid unemployment compensation in 2013 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. How to amend a previous tax return If the amount is more than $3,000, see Repayments , earlier. How to amend a previous tax return Tax withholding. How to amend a previous tax return   You can choose to have federal income tax withheld from your unemployment compensation. How to amend a previous tax return To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. How to amend a previous tax return Tax will be withheld at 10% of your payment. How to amend a previous tax return    If you do not choose to have tax withheld from your unemployment compensation, you may be liable for estimated tax. How to amend a previous tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. How to amend a previous tax return For more information on estimated tax, see chapter 4. How to amend a previous tax return Supplemental unemployment benefits. How to amend a previous tax return   Benefits received from an employer-financed fund (to which the employees did not contribute) are not unemployment compensation. How to amend a previous tax return They are taxable as wages and are subject to withholding for income tax. How to amend a previous tax return They may be subject to social security and Medicare taxes. How to amend a previous tax return For more information, see Supplemental Unemployment Benefits in section 5 of Publication 15-A, Employer's Supplemental Tax Guide. How to amend a previous tax return Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. How to amend a previous tax return Repayment of benefits. How to amend a previous tax return   You may have to repay some of your supplemental unemployment benefits to qualify for trade readjustment allowances under the Trade Act of 1974. How to amend a previous tax return If you repay supplemental unemployment benefits in the same year you receive them, reduce the total benefits by the amount you repay. How to amend a previous tax return If you repay the benefits in a later year, you must include the full amount of the benefits received in your income for the year you received them. How to amend a previous tax return   Deduct the repayment in the later year as an adjustment to gross income on Form 1040. How to amend a previous tax return (You cannot use Form 1040A or Form 1040EZ. How to amend a previous tax return ) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36. How to amend a previous tax return If the amount you repay in a later year is more than $3,000, you may be able to take a credit against your tax for the later year instead of deducting the amount repaid. How to amend a previous tax return For more information on this, see Repayments , earlier. How to amend a previous tax return Private unemployment fund. How to amend a previous tax return   Unemployment benefit payments from a private (nonunion) fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. How to amend a previous tax return Report the taxable amount on Form 1040, line 21. How to amend a previous tax return Payments by a union. How to amend a previous tax return   Benefits paid to you as an unemployed member of a union from regular union dues are included in your income on Form 1040, line 21. How to amend a previous tax return However, if you contribute to a special union fund and your payments to the fund are not deductible, the unemployment benefits you receive from the fund are includible in your income only to the extent they are more than your contributions. How to amend a previous tax return Guaranteed annual wage. How to amend a previous tax return   Payments you receive from your employer during periods of unemployment, under a union agreement that guarantees you full pay during the year, are taxable as wages. How to amend a previous tax return Include them on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. How to amend a previous tax return State employees. How to amend a previous tax return   Payments similar to a state's unemployment compensation may be made by the state to its employees who are not covered by the state's unemployment compensation law. How to amend a previous tax return Although the payments are fully taxable, do not report them as unemployment compensation. How to amend a previous tax return Report these payments on Form 1040, line 21. How to amend a previous tax return Welfare and Other Public Assistance Benefits Do not include in your income governmental benefit payments from a public welfare fund based upon need, such as payments to blind individuals under a state public assistance law. How to amend a previous tax return Payments from a state fund for the victims of crime should not be included in the victims' incomes if they are in the nature of welfare payments. How to amend a previous tax return Do not deduct medical expenses that are reimbursed by such a fund. How to amend a previous tax return You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently. How to amend a previous tax return Reemployment Trade Adjustment Assistance (RTAA) payments. How to amend a previous tax return   RTAA payments received from a state must be included in your income. How to amend a previous tax return The state must send you Form 1099-G to advise you of the amount you should include in income. How to amend a previous tax return The amount should be reported on Form 1040, line 21. How to amend a previous tax return Persons with disabilities. How to amend a previous tax return   If you have a disability, you must include in income compensation you receive for services you perform unless the compensation is otherwise excluded. How to amend a previous tax return However, you do not include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. How to amend a previous tax return Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work. How to amend a previous tax return Disaster relief grants. How to amend a previous tax return    Do not include post-disaster grants received under the Robert T. How to amend a previous tax return Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, child care, or funeral expenses. How to amend a previous tax return Do not deduct casualty losses or medical expenses that are specifically reimbursed by these disaster relief grants. How to amend a previous tax return If you have deducted a casualty loss for the loss of your personal residence and you later receive a disaster relief grant for the loss of the same residence, you may have to include part or all of the grant in your taxable income. How to amend a previous tax return See Recoveries , earlier. How to amend a previous tax return Unemployment assistance payments under the Act are taxable unemployment compensation. How to amend a previous tax return See Unemployment compensation under Unemployment Benefits, earlier. How to amend a previous tax return Disaster relief payments. How to amend a previous tax return   You can exclude from income any amount you receive that is a qualified disaster relief payment. How to amend a previous tax return A qualified disaster relief payment is an amount paid to you: To reimburse or pay reasonable and necessary personal, family, living, or funeral expenses that result from a qualified disaster; To reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation of your home or repair or replacement of its contents to the extent it is due to a qualified disaster; By a person engaged in the furnishing or sale of transportation as a common carrier because of the death or personal physical injuries incurred as a result of a qualified disaster; or By a federal, state, or local government, or agency, or instrumentality in connection with a qualified disaster in order to promote the general welfare. How to amend a previous tax return You can exclude this amount only to the extent any expense it pays for is not paid for by insurance or otherwise. How to amend a previous tax return The exclusion does not apply if you were a participant or conspirator in a terrorist action or a representative of one. How to amend a previous tax return   A qualified disaster is: A disaster which results from a terrorist or military action; A federally declared disaster; or A disaster which results from an accident involving a common carrier, or from any other event, which is determined to be catastrophic by the Secretary of the Treasury or his or her delegate. How to amend a previous tax return   For amounts paid under item (4), a disaster is qualified if it is determined by an applicable federal, state, or local authority to warrant assistance from the federal, state, or local government, agency, or instrumentality. How to amend a previous tax return Disaster mitigation payments. How to amend a previous tax return   You also can exclude from income any amount you receive that is a qualified disaster mitigation payment. How to amend a previous tax return Qualified disaster mitigation payments are also most commonly paid to you in the period immediately following damage to property as a result of a natural disaster. How to amend a previous tax return However, disaster mitigation payments are used to mitigate (reduce the severity of) potential damage from future natural disasters. How to amend a previous tax return They are paid to you through state and local governments based on the provisions of the Robert T. How to amend a previous tax return Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act. How to amend a previous tax return   You cannot increase the basis or adjusted basis of your property for improvements made with nontaxable disaster mitigation payments. How to amend a previous tax return Home Affordable Modification Program (HAMP). How to amend a previous tax return   If you benefit from Pay-for-Performance Success Payments under HAMP, the payments are not taxable. How to amend a previous tax return Mortgage assistance payments under section 235 of the National Housing Act. How to amend a previous tax return   Payments made under section 235 of the National Housing Act for mortgage assistance are not included in the homeowner's income. How to amend a previous tax return Interest paid for the homeowner under the mortgage assistance program cannot be deducted. How to amend a previous tax return Medicare. How to amend a previous tax return   Medicare benefits received under title XVIII of the Social Security Act are not includible in the gross income of the individuals for whom they are paid. How to amend a previous tax return This includes basic (part A (Hospital Insurance Benefits for the Aged)) and supplementary (part B (Supplementary Medical Insurance Benefits for the Aged)). How to amend a previous tax return Old-age, survivors, and disability insurance benefits (OASDI). How to amend a previous tax return   Generally, OASDI payments under section 202 of title II of the Social Security Act are not includible in the gross income of the individuals to whom they are paid. How to amend a previous tax return This applies to old-age insurance benefits, and insurance benefits for wives, husbands, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment. How to amend a previous tax return Nutrition Program for the Elderly. How to amend a previous tax return    Food benefits you receive under the Nutrition Program for the Elderly are not taxable. How to amend a previous tax return If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you are also eligible for food benefits. How to amend a previous tax return Payments to reduce cost of winter energy. How to amend a previous tax return   Payments made by a state to qualified people to reduce their cost of winter energy use are not taxable. How to amend a previous tax return Other Income The following brief discussions are arranged in alphabetical order. How to amend a previous tax return Other income items briefly discussed below are referenced to publications which provide more topical information. How to amend a previous tax return Activity not for profit. How to amend a previous tax return   You must include on your return income from an activity from which you do not expect to make a profit. How to amend a previous tax return An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. How to amend a previous tax return Enter this income on Form 1040, line 21. How to amend a previous tax return Deductions for expenses related to the activity are limited. How to amend a previous tax return They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040). How to amend a previous tax return See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit. How to amend a previous tax return Alaska Permanent Fund dividend. How to amend a previous tax return   If you received a payment from Alaska's mineral income fund (Alaska Permanent Fund dividend), report it as income on line 21 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. How to amend a previous tax return The state of Alaska sends each recipient a document that shows the amount of the payment with the check. How to amend a previous tax return The amount also is reported to IRS. How to amend a previous tax return Alimony. How to amend a previous tax return   Include in your income on Form 1040, line 11, any alimony payments you receive. How to amend a previous tax return Amounts you receive for child support are not income to you. How to amend a previous tax return Alimony and child support payments are discussed in chapter 18. How to amend a previous tax return Bribes. How to amend a previous tax return   If you receive a bribe, include it in your income. How to amend a previous tax return Campaign contributions. How to amend a previous tax return   These contributions are not income to a candidate unless they are diverted to his or her personal use. How to amend a previous tax return To be exempt from tax, the contributions must be spent for campaign purposes or kept in a fund for use in future campaigns. How to amend a previous tax return However, interest earned on bank deposits, dividends received on contributed securities, and net gains realized on sales of contributed securities are taxable and must be reported on Form 1120-POL, U. How to amend a previous tax return S. How to amend a previous tax return Income Tax Return for Certain Political Organizations. How to amend a previous tax return Excess campaign funds transferred to an office account must be included in the officeholder's income on Form 1040, line 21, in the year transferred. How to amend a previous tax return Car pools. How to amend a previous tax return   Do not include in your income amounts you receive from the passengers for driving a car in a car pool to and from work. How to amend a previous tax return These amounts are considered reimbursement for your expenses. How to amend a previous tax return However, this rule does not apply if you have developed car pool arrangements into a profit-making business of transporting workers for hire. How to amend a previous tax return Cash rebates. How to amend a previous tax return   A cash rebate you receive from a dealer or manufacturer of an item you buy is not income, but you must reduce your basis by the amount of the rebate. How to amend a previous tax return Example. How to amend a previous tax return You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. How to amend a previous tax return The $2,000 is not income to you. How to amend a previous tax return Your basis in the car is $22,000. How to amend a previous tax return This is the basis on which you figure gain or loss if you sell the car and depreciation if you use it for business. How to amend a previous tax return Casualty insurance and other reimbursements. How to amend a previous tax return   You generally should not report these reimbursements on your return unless you are figuring gain or loss from the casualty or theft. How to amend a previous tax return See chapter 25 for more information. How to amend a previous tax return Child support payments. How to amend a previous tax return   You should not report these payments on your return. How to amend a previous tax return See chapter 18 for more information. How to amend a previous tax return Court awards and damages. How to amend a previous tax return   To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. How to amend a previous tax return The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. How to amend a previous tax return Include the following as ordinary income. How to amend a previous tax return Interest on any award. How to amend a previous tax return Compensation for lost wages or lost profits in most cases. How to amend a previous tax return Punitive damages, in most cases. How to amend a previous tax return It does not matter if they relate to a physical injury or physical sickness. How to amend a previous tax return Amounts received in settlement of pension rights (if you did not contribute to the plan). How to amend a previous tax return Damages for: Patent or copyright infringement, Breach of contract, or Interference with business operations. How to amend a previous tax return Back pay and damages for emotional distress received to satisfy a claim under title VII of the Civil Rights Act of 1964. How to amend a previous tax return Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income. How to amend a previous tax return   Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments). How to amend a previous tax return Emotional distress. How to amend a previous tax return   Emotional distress itself is not a physical injury or physical sickness, but damages you receive for emotional distress due to a physical injury or sickness are treated as received for the physical injury or sickness. How to amend a previous tax return Do not include them in your income. How to amend a previous tax return   If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, employment discrimination or injury to reputation), you must include the damages in your income, except for any damages you receive for medical care due to that emotional distress. How to amend a previous tax return Emotional distress includes physical symptoms that result from emotional distress, such as headaches, insomnia, and stomach disorders. How to amend a previous tax return Deduction for costs involved in unlawful discrimination suits. How to amend a previous tax return   You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. How to amend a previous tax return For more information, see Publication 525. How to amend a previous tax return Credit card insurance. How to amend a previous tax return   In most cases, if you receive benefits under a credit card disability or unemployment insurance plan, the benefits are taxable to you. How to amend a previous tax return These plans make the minimum monthly payment on your credit card account if you cannot make the payment due to injury, illness, disability, or unemployment. How to amend a previous tax return Report on Form 1040, line 21, the amount of benefits you received during the year that is more than the amount of the premiums you paid during the year. How to amend a previous tax return Down payment assistance. How to amend a previous tax return   If you purchase a home and receive assistance from a nonprofit corporation to make the down payment, that assistance is not included in your income. How to amend a previous tax return If the corporation qualifies as a tax-exempt charitable organization, the assistance is treated as a gift and is included in your basis of the house. How to amend a previous tax return If the corporation does not qualify, the assistance is treated as a rebate or reduction of the purchase price and is not included in your basis. How to amend a previous tax return Employment agency fees. How to amend a previous tax return   If you get a job through an employment agency, and the fee is paid by your employer, the fee is not includible in your income if you are not liable for it. How to amend a previous tax return However, if you pay it and your employer reimburses you for it, it is includible in your income. How to amend a previous tax return Energy conservation subsidies. How to amend a previous tax return   You can exclude from gross income any subsidy provided, either directly or indirectly, by public utilities for the purchase or installation of an energy conservation measure for a dwelling unit. How to amend a previous tax return Energy conservation measure. How to amend a previous tax return   This includes installations or modifications that are primarily designed to reduce consumption of electricity or natural gas, or improve the management of energy demand. How to amend a previous tax return Dwelling unit. How to amend a previous tax return   This includes a house, apartment, condominium, mobile home, boat, or similar property. How to amend a previous tax return If a building or structure contains both dwelling and other units, any subsidy must be properly allocated. How to amend a previous tax return Estate and trust income. How to amend a previous tax return    An estate or trust, unlike a partnership, may have to pay federal income tax. How to amend a previous tax return If you are a beneficiary of an estate or trust, you may be taxed on your share of its income distributed or required to be distributed to you. How to amend a previous tax return However, there is never a double tax. How to amend a previous tax return Estates and trusts file their returns on Form 1041, U. How to amend a previous tax return S. How to amend a previous tax return Income Tax Return for Estates and Trusts, and your share of the income is reported to you on Schedule K-1 (Form 1041). How to amend a previous tax return Current income required to be distributed. How to amend a previous tax return   If you are the beneficiary of an estate or trust that must distribute all of its current income, you must report your share of the distributable net income, whether or not you actually received it. How to amend a previous tax return Current income not required to be distributed. How to amend a previous tax return    If you are the beneficiary of an estate or trust and the fiduciary has the choice of whether to distribute all or part of the current income, you must report: All income that is required to be distributed to you, whether or not it is actually distributed, plus All other amounts actually paid or credited to you, up to the amount of your share of distributable net income. How to amend a previous tax return How to report. How to amend a previous tax return   Treat each item of income the same way that the estate or trust would treat it. How to amend a previous tax return For example, if a trust's dividend income is distributed to you, you report the distribution as dividend income on your return. How to amend a previous tax return The same rule applies to distributions of tax-exempt interest and capital gains. How to amend a previous tax return   The fiduciary of the estate or trust must tell you the type of items making up your share of the estate or trust income and any credits you are allowed on your individual income tax return. How to amend a previous tax return Losses. How to amend a previous tax return   Losses of estates and trusts generally are not deductible by the beneficiaries. How to amend a previous tax return Grantor trust. How to amend a previous tax return   Income earned by a grantor trust is taxable to the grantor, not the beneficiary, if the grantor keeps certain control over the trust. How to amend a previous tax return (The grantor is the one who transferred property to the trust. How to amend a previous tax return ) This rule applies if the property (or income from the property) put into the trust will or may revert (be returned) to the grantor or the grantor's spouse. How to amend a previous tax return   Generally, a trust is a grantor trust if the grantor has a reversionary interest valued (at the date of transfer) at more than 5% of the value of the transferred property. How to amend a previous tax return Expenses paid by another. How to amend a previous tax return   If your personal expenses are paid for by another person, such as a corporation, the payment may be taxable to you depending upon your relationship with that person and the nature of the payment. How to amend a previous tax return But if the payment makes up for a loss caused by that person, and only restores you to the position you were in before the loss, the payment is not includible in your income. How to amend a previous tax return Fees for services. How to amend a previous tax return   Include all fees for your services in your income. How to amend a previous tax return Examples of these fees are amounts you receive for services you perform as: A corporate director, An executor, administrator, or personal representative of an estate, A manager of a trade or business you operated before declaring Chapter 11 bankruptcy, A notary public, or An election precinct official. How to amend a previous tax return Nonemployee compensation. How to amend a previous tax return   If you are not an employee and the fees for your services from the same payer total $600 or more for the year, you may receive a Form 1099-MISC. How to amend a previous tax return You may need to report your fees as self-employment income. How to amend a previous tax return See Self-Employed Persons , in chapter 1, for a discussion of when you are considered self-employed. How to amend a previous tax return Corporate director. How to amend a previous tax return   Corporate director fees are self-employment income. How to amend a previous tax return Report these payments on Schedule C or Schedule C-EZ (Form 1040). How to amend a previous tax return Personal representatives. How to amend a previous tax return   All personal representatives must include in their gross income fees paid to them from an estate. How to amend a previous tax return If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on Form 1040, line 21. How to amend a previous tax return If you are in the trade or business of being an executor, report these fees as self-employment income on Schedule C or Schedule C-EZ (Form 1040). How to amend a previous tax return The fee is not includible in income if it is waived. How to amend a previous tax return Manager of trade or business for bankruptcy estate. How to amend a previous tax return   Include in your income all payments received from your bankruptcy estate for managing or operating a trade or business that you operated before you filed for bankruptcy. How to amend a previous tax return Report this income on Form 1040, line 21. How to amend a previous tax return Notary public. How to amend a previous tax return    Report payments for these services on Schedule C or Schedule C-EZ (Form 1040). How to amend a previous tax return These payments are not subject to self-employment tax. How to amend a previous tax return See the separate instructions for Schedule SE (Form 1040) for details. How to amend a previous tax return Election precinct official. How to amend a previous tax return    You should receive a Form W-2 showing payments for services performed as an election official or election worker. How to amend a previous tax return Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. How to amend a previous tax return Foster care providers. How to amend a previous tax return   Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. How to amend a previous tax return However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments. How to amend a previous tax return   A qualified foster individual is a person who: Is living in a foster family home, and Was placed there by: An agency of a state or one of its political subdivisions, or A qualified foster care placement agency. How to amend a previous tax return Difficulty-of-care payments. How to amend a previous tax return   These are additional payments that are designated by the payer as compensation for providing the additional care that is required for physically, mentally, or emotionally handicapped qualified foster individuals. How to amend a previous tax return A state must determine that the additional compensation is needed, and the care for which the payments are made must be provided in your home. How to amend a previous tax return   You must include in your income difficulty-of-care payments received for more than: 10 qualified foster individuals under age 19, or 5 qualified foster individuals age 19 or older. How to amend a previous tax return Maintaining space in home. How to amend a previous tax return   If you are paid to maintain space in your home for emergency foster care, you must include the payment in your income. How to amend a previous tax return Reporting taxable payments. How to amend a previous tax return    If you receive payments that you must include in your income, you are in business as a foster care provider and you are self-employed. How to amend a previous tax return Report the payments on Schedule C or Schedule C-EZ (Form 1040). How to amend a previous tax return See Publication 587, Business Use of Your Home, to help you determine the amount you can deduct for the use of your home. How to amend a previous tax return Found property. How to amend a previous tax return   If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession. How to amend a previous tax return Free tour. How to amend a previous tax return   If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. How to amend a previous tax return Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. How to amend a previous tax return You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. How to amend a previous tax return If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040). How to amend a previous tax return Gambling winnings. How to amend a previous tax return   You must include your gambling winnings in income on Form 1040, line 21. How to amend a previous tax return If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. How to amend a previous tax return Lotteries and raffles. How to amend a previous tax return   Winnings from lotteries and raffles are gambling winnings. How to amend a previous tax return In addition to cash winnings, you must include in your income the fair market value of bonds, cars, houses, and other noncash prizes. How to amend a previous tax return    If you win a state lottery prize payable in installments, see Publication 525 for more information. How to amend a previous tax return Form W-2G. How to amend a previous tax return   You may have received a Form W-2G, Certain Gambling Winnings, showing the amount of your gambling winnings and any tax taken out of them. How to amend a previous tax return Include the amount from box 1 on Form 1040, line 21. How to amend a previous tax return Include the amount shown in box 4 on Form 1040, line 62, as federal income tax withheld. How to amend a previous tax return Reporting winnings and recordkeeping. How to amend a previous tax return   For more information on reporting gam