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How To Do 2012 Taxes

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How To Do 2012 Taxes

How to do 2012 taxes 16. How to do 2012 taxes   Cómo Declarar Ganancias y Pérdidas Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Cómo Declarar Ganancias y Pérdidas de CapitalExcepción 1. How to do 2012 taxes Excepción 2. How to do 2012 taxes Presente el Formulario 1099-B o el Formulario 1099-S al IRS. How to do 2012 taxes Pérdidas de Capital Tasas Impositivas sobre Ganancias de Capital Qué Hay de Nuevo Tasas máximas de ganancias de capital. How to do 2012 taxes  Para el año 2013, las tasas máximas de ganancias de capital son del 0%, 15%, 20%, 25% y 28%. How to do 2012 taxes Introduction En este capítulo se explica cómo declarar ganancias y pérdidas de capital provenientes de ventas, intercambios y otras enajenaciones de bienes de inversión en el Formulario 8949 y el Anexo D (Formulario 1040). How to do 2012 taxes Esta explicación abarca los siguientes temas: Cómo declarar ganancias y pérdidas a corto plazo. How to do 2012 taxes Cómo declarar ganancias y pérdidas a largo plazo. How to do 2012 taxes Cómo calcular pérdidas de capital que se van a trasladar al año siguiente. How to do 2012 taxes Cómo calcular los impuestos sobre una ganancia neta de capital. How to do 2012 taxes Si vende o de otro modo enajena bienes utilizados en una ocupación o negocio o en la producción de ingresos, vea la Publicación 544, Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés, antes de completar el Anexo D (Formulario 1040). How to do 2012 taxes Useful Items - You may want to see: Publicación 537 Installment Sales (Ventas a plazos), en inglés 544 Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés 550 Investment Income and Expenses (Ingresos y gastos de inversión), en inglés Formulario (e Instrucciones) 4797 Sales of Business Property (Ventas de bienes comerciales), en inglés 6252 Installment Sale Income (Ingresos de ventas a plazos), en inglés 8582 Passive Activity Loss Limitations (Limitaciones de pérdidas en actividades pasivas), en inglés 8949 Sales and Other Dispositions of Capital Assets (Ventas y otras enajenaciones de activos de capital, en inglés) Anexo D (Formulario 1040) Capital Gains and Losses (Ganancias y pérdidas de capital), en inglés Cómo Declarar Ganancias y Pérdidas de Capital Declare sus ganancias y pérdidas de capital en el Formulario 8949. How to do 2012 taxes Complete el Formulario 8949 antes de completar las líneas 1b, 2, 3, 8b, 9 ó 10 del Anexo D (Formulario 1040). How to do 2012 taxes Use el Formulario 8949 para declarar: La venta o intercambio de un activo de capital, la cual no se declaró en ningún otro formulario o anexo, Ganancias por canjes involuntarios (aparte de cuando se deba a un hecho fortuito o un robo) de activos de capital que no sirven para propósitos de negocio o lucro y Deudas incobrables que no provienen del negocio. How to do 2012 taxes Use el Anexo D (Formulario 1040): Para calcular la ganancia o pérdida total de las transacciones declaradas en el Formulario 8949; Para declarar una ganancia proveniente del Formulario 6252 o de la Parte I del Formulario 4797; Para declarar una ganancia o pérdida proveniente del Formulario 4684, 6781 u 8824; Para declarar distribuciones de ganancias de capital no declaradas directamente en el Formulario 1040 o en el Formulario 1040A; Para declarar una pérdida de capital trasladada del año tributario anterior al año tributario actual; Para declarar su parte de una ganancia (o pérdida) de una sociedad colectiva, sociedad anónima de tipo S, caudal hereditario o fideicomiso; Para declarar las transacciones informadas a usted en el Formulario 1099-B (o documento sustitutivo), el cual muestra las bases informadas al IRS y al cual no corresponde ninguno de los ajustes o códigos del Formulario 8949; y Para declarar ganancias de capital a largo plazo no distribuidas provenientes del Formulario 2439. How to do 2012 taxes Anote en el Formulario 8949 todas las ventas e intercambios de activos de capital (incluyendo acciones, bonos, etc. How to do 2012 taxes ) y de bienes raíces (si no se declararon en el Formulario 4684, 4797, 6252, 6781 u 8824 o la línea 1a u 8a del Anexo D). How to do 2012 taxes Declare estas transacciones aun si usted no recibió un Formulario 1099-B o 1099-S (u otra declaración sustitutiva) para la transacción. How to do 2012 taxes Declare las ganancias o pérdidas a corto plazo en la Parte I. How to do 2012 taxes Declare ganancias y pérdidas a largo plazo en la Parte II. How to do 2012 taxes Use cuantos Formularios 8949 sean necesarios. How to do 2012 taxes Excepciones a la presentación del Formulario 8949 y el Anexo D (Formulario 1040). How to do 2012 taxes   Hay ciertas circunstancias bajo las cuales usted tal vez no tenga que presentar el Formulario 8949 ni el Anexo D (Formulario 1040). How to do 2012 taxes Excepción 1. How to do 2012 taxes   Usted no tiene que presentar el Formulario 8949 ni el Anexo D (Formulario 1040) si no tiene pérdidas de capital y sus únicas ganancias de capital son distribuciones de ganancia de capital correspondientes al (los) recuadro(s) 2a del (de los) Formulario(s) 1099-DIV (o declaraciones sustitutivas). How to do 2012 taxes (Si alguno de los Formularios 1099-DIV (o declaraciones sustitutivas) que usted recibe indica una cifra en el recuadro 2b (ganancias no recuperadas conforme a la sección 1250), el recuadro 2c (ganancias conforme a la sección 1202) o el recuadro 2d (ganancias (tasas de 28%) por la venta de objetos coleccionables, usted no reúne los requisitos para esta excepción). How to do 2012 taxes Si reúne los requisitos para esta excepción, declare sus distribuciones de ganancia de capital directamente en la línea 13 del Formulario 1040 y marque el recuadro en la línea 13. How to do 2012 taxes También debe utillizar la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para impuestos sobre dividendos y ganancias de capital), que encontrará en las Instrucciones del Formulario 1040, para calcular su impuesto. How to do 2012 taxes Usted pede declarar sus distribuciones de ganancias de capital en la línea 10 del Formulario 1040A, en vez del Formulario 1040, si ninguno de los Formularios 1099-DIV (o declaraciones sustitutivas) que usted recibió indica una cifra en los recuadros 2b, 2c o 2d y usted no tiene que presentar el Formulario 1040. How to do 2012 taxes Excepción 2. How to do 2012 taxes   Usted tiene que presentar el Anexo D (Formulario 1040), pero por lo general no tiene que presentar el Formulario 8949 si la Excepción 1 no le corresponde y sus únicas ganancias y pérdidas de capital son: Distribuciones de ganancias de capital; Una pérdida de capital trasladada de un año anterior; Una ganancia correspondiente al Formulario 2439 ó 6252, o de la Parte I del Formulario 4797; Una ganancia o pérdida correspondiente al Formulario 4684, 6781 u 8824; Una ganancia o pérdida de una sociedad colectiva, sociedad anónima de tipo S, un caudal hereditario o fideicomiso; Ganancias y pérdidas de transacciones por las cuales usted recibió el Formulario 1099-B (o un documento sustitutivo), el cual muestra las bases informadas al IRS y por lo cual no necesita hacer ningún ajuste en la columna (g) del Formulario 8949 ni anotar ningún código en la columna (f) del Formulario 8949. How to do 2012 taxes Ventas a plazos. How to do 2012 taxes   No puede utilizar el método de pago a plazos para declarar una ganancia proveniente de la venta de acciones o valores bursátiles cotizados en un mercado de valores bursátiles establecido. How to do 2012 taxes Tiene que declarar la totalidad de la ganancia en el año de la venta (el año en el que ocurra la fecha de canje). How to do 2012 taxes Ganancias y pérdidas provenientes de una actividad pasiva. How to do 2012 taxes    Si tiene pérdidas o ganancias provenientes de una actividad pasiva, es posible que tenga que declararlas también en el Formulario 8582. How to do 2012 taxes En ciertos casos, la pérdida puede ser limitada conforme a las reglas de actividad pasiva. How to do 2012 taxes Consulte el Formulario 8582 y sus instrucciones correspondientes por separado para obtener información adicional sobre la declaración de ganancias y pérdidas de capital producto de una actividad pasiva. How to do 2012 taxes Transacciones que se declaran en el Formulario 1099-B. How to do 2012 taxes   Si vendió bienes, como acciones, bonos o ciertos productos de consumo bursátiles, a través de un agente corredor bursátil, éste debe entregarle un Formulario 1099-B o documento sustitutivo. How to do 2012 taxes Utilice el Formulario 1099-B o el documento sustitutivo para completar el Formulario 8949. How to do 2012 taxes Si usted vendió un valor bursátil garantizado en 2013, su agente corredor bursátil le mandará un Formulario 1099-B (o declaración sustitutiva) que le indica la base. How to do 2012 taxes Esto le ayudará a completar el Formulario 8949. How to do 2012 taxes Por lo general, los valores bursátiles garantizados son aquéllos que usted adquirió después del año 2010. How to do 2012 taxes   Declare las ganancias brutas que aparezcan en el recuadro 2a del Formulario 1099-B como el precio de venta en la columna (d) de la Parte I o la Parte II del Formulario 8949, según le corresponda a su caso. How to do 2012 taxes No obstante, si el agente corredor bursátil indica, en el recuadro 2a del Formulario 1099-B, haber declarado al IRS las ganancias brutas (precio de venta) menos comisiones y primas de opciones, anote el precio neto de venta resultante en la columna (d) de la Parte I o de la Parte II del Formulario 8949, según le corresponda a su caso. How to do 2012 taxes   Incluya en la columna (g) todo gasto de venta, tal como honorarios de agente corredor bursátil, comisiones, impuestos de traspaso locales y estatales y primas de opciones, a menos que usted haya declarado el precio neto de venta en la columna (d). How to do 2012 taxes Si incluye un gasto de venta en la columna (g), anote “E” en la columna (f). How to do 2012 taxes Transacciones que se declaran en el Formulario 1099-CAP. How to do 2012 taxes   Si es dueño de acciones de una sociedad anónima en cuyo control o estructura de capital haya habido cambios importantes, dicha sociedad debe enviarle el Formulario 1099-CAP o documento sustitutivo. How to do 2012 taxes Utilice el Formulario 1099-CAP o documento sustitutivo para completar el Formulario 8949. How to do 2012 taxes Si sus cálculos indican que, debido al cambio, usted tendría una pérdida, no anote ninguna cantidad en el Formulario 8949 ni en el Anexo D (Formulario 1040). How to do 2012 taxes Esta transacción no le da la posibilidad de declarar una pérdida en el Anexo D (Formulario 1040). How to do 2012 taxes   Declare el total de la cantidad recibida indicado en el recuadro 2 del Formulario 1099-CAP como el precio de venta en la columna (d) de la Parte I o de la Parte II del Formulario 8949, según le corresponda a su caso. How to do 2012 taxes Transacciones que se declaran en el Formulario 1099-S. How to do 2012 taxes   Si vendió o canjeó bienes raíces que han de declararse, normalmente la persona encargada de comunicar transacciones de bienes raíces debe entregarle un Formulario 1099-S en el que se indiquen las ganancias brutas. How to do 2012 taxes    “Bienes raíces que han de declararse” son toda participación en una propiedad actual o futura en cualesquiera de los siguientes casos: Terrenos con o sin mejoras, incluido el espacio aéreo; Estructuras intrínsecamente permanentes, incluido todo edificio residencial, comercial o industrial; Una unidad de condominio y sus instalaciones accesorias y elementos comunes, incluido el terreno; y Acciones de cooperativa de viviendas en sociedad anónima (como se define en la sección 216 del Código de Impuestos Internos). How to do 2012 taxes   Una “persona encargada de comunicar transacciones de bienes raíces” puede ser el abogado del comprador, el abogado de usted, una compañía de escrituras de propiedad o de cuentas en depósito, un prestamista hipotecario, el agente corredor bursátil de usted, el agente corredor bursátil del comprador o la persona que adquiera la mayor participación en la propiedad. How to do 2012 taxes   El Formulario 1099-S indicará las ganancias brutas de la venta o el intercambio en el recuadro 2. How to do 2012 taxes Consulte las Instrucciones para el Formulario 8949 y las Instrucciones para el Anexo D (Formulario 1040) para saber cómo se declaran estas transacciones e incluirlas en la Parte I o Parte II del Formulario 8949, tal como le corresponda a su caso. How to do 2012 taxes No obstante, declare los intercambios por bienes del mismo tipo en el Formulario 8824. How to do 2012 taxes   Es ilegal que una persona encargada de comunicar transacciones de bienes raíces le cobre un cargo por separado por cumplir con el requisito de presentación del Formulario 1099-S. How to do 2012 taxes Nominatarios. How to do 2012 taxes   Si recibe ganancias brutas como nominatario (es decir, las ganancias brutas están a nombre suyo pero en realidad pertenecen a otra persona), vea las Instrucciones para el Formulario 8949, para saber cómo declarar estas cantidades en el Formulario 8949. How to do 2012 taxes Presente el Formulario 1099-B o el Formulario 1099-S al IRS. How to do 2012 taxes   Si recibió ganancias brutas en calidad de nominatario en 2013, tiene que presentar al IRS el Formulario 1099-B o el Formulario 1099-S correspondiente a dichas ganancias. How to do 2012 taxes Envíe el Formulario 1099-B o el Formulario 1099-S junto con el Formulario 1096, Annual Summary and Transmittal of U. How to do 2012 taxes S. How to do 2012 taxes Information Returns (Resumen e informe anual de declaraciones informativas de los Estados Unidos), en inglés, al Centro de Servicio del Servicio de Impuestos Internos que le corresponda a más tardar el 28 de febrero de 2014 (31 de marzo de 2014, si presenta el Formulario 1099-B o el Formulario 1099-S por vía electrónica). How to do 2012 taxes Entregue la Copia B del Formulario 1099-B o del Formulario 1099-S al verdadero dueño de dichas ganancias a más tardar el 18 de febrero de 2014. How to do 2012 taxes En el Formulario 1099-B, usted debe constar como “Payer” (Pagador). How to do 2012 taxes El otro dueño debe constar como “Recipient” (Destinatario). How to do 2012 taxes En el Formulario 1099-S, usted debe constar como “Filer” (Declarante). How to do 2012 taxes El otro dueño debe constar como “Transferor” (Cesionista). How to do 2012 taxes No obstante, usted no tiene que presentar el Formulario 1099-B ni el Formulario 1099-S para mostrar las ganancias de su cónyuge. How to do 2012 taxes Para más información acerca de los requisitos de presentación de ciertas declaraciones informativas y las multas por no presentar (o facilitar) dichas declaraciones, vea las General Instructions for Certain Information Returns (Instrucciones generales para determinadas declaraciones informativas), en inglés. How to do 2012 taxes Si presenta la declaración electrónicamente, vea la Publicación 1220, en inglés. How to do 2012 taxes Venta de bienes comprados en diferentes ocasiones. How to do 2012 taxes   Si vende un paquete de acciones u otros bienes que haya comprado en diferentes ocasiones, declare la pérdida o ganancia a corto plazo procedente de la venta en una fila de la Parte I del Formulario 8949 y anote la pérdida o ganancia a largo plazo en una fila de la Parte II del Formulario 8949. How to do 2012 taxes Escriba “Various” (Varios) en la columna (b) para la “Date acquired” (Fecha de adquisición). How to do 2012 taxes Gastos de venta. How to do 2012 taxes    En la columna (g) del Formulario 8949, incluya todo gasto de venta, como honorarios de agentes corredores bursátiles, comisiones, impuestos estatales y locales sobre traspasos y primas de opciones, a menos que usted haya declarado el precio neto de ventas en la columna (d). How to do 2012 taxes Si usted incluyó un gasto de venta en la columna (g), anote “E” en la columna (f). How to do 2012 taxes   Para más información sobre los ajustes a la base, vea el capítulo 13. How to do 2012 taxes Ganancias y pérdidas a corto plazo. How to do 2012 taxes   Las ganancias o pérdidas de capital sobre la venta o canje de bienes de inversión que haya tenido por 1 año o menos se consideran pérdidas o ganancias de capital a corto plazo. How to do 2012 taxes Declárelas en la Parte I del Formulario 8949. How to do 2012 taxes   Sume su parte de pérdidas o ganancias de capital a corto plazo provenientes de sociedades colectivas, sociedades anónimas de tipo S, caudales hereditarios y fideicomisos, además de toda pérdida de capital a corto plazo que se haya trasladado de un año anterior, con las demás ganancias y pérdidas de capital a corto plazo para calcular la pérdida o ganancia de capital neta a corto plazo en la línea 7 del Anexo D (Formulario 1040). How to do 2012 taxes Ganancias y pérdidas a largo plazo. How to do 2012 taxes    Una ganancia o pérdida de capital sobre la venta o canje de bienes de inversión que haya tenido durante más de 1 año se considera ganancia o pérdida de capital a largo plazo. How to do 2012 taxes Declárela en la Parte II del Formulario 8949. How to do 2012 taxes   Usted debe declarar lo siguiente en la Parte II del Anexo D (Formulario 1040): Ganancias de capital a largo plazo de un fondo mutuo (u otra sociedad inversionista reglamentada) o de una sociedad de inversión inmobiliaria (REIT, por sus siglas en inglés) que no hayan sido distribuidas; Su participación de las ganancias y pérdidas de capital a largo plazo de sociedades colectivas, sociedades anónimas de tipo S, caudales hereditarios y fideicomisos; Toda distribución de ganancia de capital proveniente de fondos mutuos y sociedades de inversión inmobiliaria (REIT) que no se haya declarado directamente en la línea 10 del Formulario 1040A o la línea 13 del Formulario 1040; y Pérdidas de capital a largo plazo trasladadas de un año anterior. How to do 2012 taxes    El resultado que se dé después de sumar dichas cantidades con las demás ganancias de capital a largo plazo y restar las pérdidas de capital a largo plazo es la ganancia o pérdida de capital neta a largo plazo (línea 15 del Anexo D (Formulario 1040)). How to do 2012 taxes Total de la ganancia o pérdida neta. How to do 2012 taxes   Para calcular el total de la ganancia o pérdida neta, sume la ganancia o pérdida de capital neta a corto plazo (línea 7 del Anexo D (Formulario 1040)) con la pérdida o ganancia de capital neta a largo plazo (línea 15 del Anexo D (Formulario 1040)). How to do 2012 taxes Anote el resultado en la línea 16 de la Parte III del Anexo D (Formulario 1040). How to do 2012 taxes Si tiene pérdidas que sobrepasen las ganancias, vea Pérdidas de Capital , que se encuentra a continuación. How to do 2012 taxes Si las líneas 15 y 16 del Anexo D (Formulario 1040) son ganancias y el ingreso sujeto a impuestos en su Formulario 1040 es mayor de cero, vea Tasas Impositivas sobre Ganancias de Capital , más adelante. How to do 2012 taxes Pérdidas de Capital Si las pérdidas de capital son mayores que las ganancias de capital, se puede declarar una deducción por pérdida de capital. How to do 2012 taxes Declare la cantidad de la deducción en la línea 13 del Formulario 1040, anotándola entre paréntesis. How to do 2012 taxes Límite sobre la deducción. How to do 2012 taxes   La deducción por ganancia de capital permisible, calculada en el Anexo D (Formulario 1040), es la cantidad que sea menor de las siguientes: $3,000 ($1,500 si es casado y presenta una declaración por separado) o El total de la pérdida neta tal como aparece en la línea 16 del Anexo D (Formulario 1040). How to do 2012 taxes   Puede usar el total de la pérdida neta para reducir sus ingresos en una cantidad equivalente, hasta el límite de $3,000. How to do 2012 taxes Traslado de pérdida de capital. How to do 2012 taxes   Si el total de la pérdida neta en la línea 16 del Anexo D (Formulario 1040) sobrepasa el límite anual de las deducciones de pérdida de capital, puede trasladar al año siguiente la parte sobrante y tratarla como si hubiera incurrido en la misma durante ese próximo año. How to do 2012 taxes Si una parte de la pérdida sigue sin usarse, puede trasladarla a años posteriores hasta que se agote. How to do 2012 taxes   Cuando calcule una cantidad de pérdida de capital que se trasladará al año siguiente, tiene que tener en cuenta la deducción permisible del año en curso, la haya reclamado o no, e independientemente de si presentó o no una declaración correspondiente al año en curso. How to do 2012 taxes   Cuando traslade una pérdida a un año posterior, ésta sigue siendo una pérdida a largo plazo o corto plazo. How to do 2012 taxes Una pérdida de capital a largo plazo que usted traslade al año tributario siguiente reducirá las ganancias de capital a largo plazo de dicho año antes de reducir las ganancias de capital a corto plazo de dicho año. How to do 2012 taxes Cálculo de la cantidad trasladada al año siguiente. How to do 2012 taxes   La cantidad de la pérdida de capital a trasladarse al año siguiente es la cantidad de pérdida neta total que sea mayor que la cantidad menor entre: La deducción por pérdida de capital permisible durante el año o Sus ingresos sujetos a impuestos aumentados por la deducción por pérdida de capital permisible durante el año y la deducción por exenciones personales. How to do 2012 taxes   Si las deducciones son mayores que sus ingresos brutos del año tributario, utilice los ingresos negativos sujetos a impuestos al calcular la cantidad en el punto (2). How to do 2012 taxes    Complete la Capital Loss Carryover Worksheet (Hoja de trabajo para calcular la pérdida de capital a trasladarse a años posteriores) en las Instrucciones del Anexo D o la Publicación 550, en inglés, para calcular la parte de la pérdida de capital que se pueda trasladar. How to do 2012 taxes Ejemplo. How to do 2012 taxes Roberto y Gloria vendieron valores bursátiles en 2013. How to do 2012 taxes Las ventas dieron por resultado una pérdida de capital de $7,000. How to do 2012 taxes No hicieron otras transacciones de capital. How to do 2012 taxes Sus ingresos sujetos a impuestos fueron $26,000. How to do 2012 taxes En la declaración conjunta de 2013, pueden deducir $3,000. How to do 2012 taxes La parte de la pérdida que no usaron, $4,000 ($7,000 − $3,000), se puede trasladar a 2014. How to do 2012 taxes Si la pérdida de capital hubiera sido $2,000, la deducción por pérdida de capital también habría sido $2,000. How to do 2012 taxes No tendrían cantidad alguna a trasladar al año siguiente. How to do 2012 taxes Utilice primero las pérdidas a corto plazo. How to do 2012 taxes   Cuando calcule la cantidad a trasladarse al año siguiente, utilice primero las pérdidas de capital a corto plazo, aunque haya incurrido en las mismas después de una pérdida de capital a largo plazo. How to do 2012 taxes Si no ha alcanzado el límite de la deducción por pérdidas de capital después de haber utilizado las pérdidas de capital a corto plazo, utilice las pérdidas de capital a largo plazo hasta alcanzar el límite. How to do 2012 taxes Pérdida de capital de un difunto. How to do 2012 taxes    Una pérdida de capital sufrida por una persona en su último año tributario antes de fallecer (o que se haya traspasado de un año anterior a dicho año) se puede deducir sólo en la última declaración del impuesto sobre el ingreso personal que se presente a nombre del difunto. How to do 2012 taxes Los límites de pérdida de capital explicados anteriormente aún corresponden en este caso. How to do 2012 taxes El caudal hereditario (patrimonio) del difunto no puede deducir ninguna parte de la pérdida ni trasladarla a años posteriores. How to do 2012 taxes Declaraciones conjuntas y separadas. How to do 2012 taxes   Si antes usted y su cónyuge presentaban declaraciones por separado y ahora presentan una declaración conjunta, sume las cantidades de pérdida de capital que cada uno de ustedes haya trasladado a un año siguiente. How to do 2012 taxes No obstante, si antes usted y su cónyuge presentaban una declaración conjunta y ahora presentan declaraciones por separado, toda pérdida de capital que se haya trasladado a un año siguiente se puede deducir sólo en la declaración del cónyuge que de hecho sufrió la pérdida. How to do 2012 taxes Tasas Impositivas sobre Ganancias de Capital Las tasas impositivas correspondientes a una ganancia neta de capital suelen ser más bajas que las que corresponden a otros ingresos. How to do 2012 taxes Estas tasas reducidas se conocen como las “tasas máximas de ganancias de capital”. How to do 2012 taxes El término “ganancia neta de capital” designa la cantidad por la que la ganancia neta de capital a largo plazo del año supera la pérdida de capital neta a corto plazo. How to do 2012 taxes Para el año 2013, las tasas máximas correspondientes a ganancias de capital son 0%, 15%, 20%, 25% y 28%. How to do 2012 taxes Vea la Tabla 16-1, para obtener información detallada. How to do 2012 taxes Si para calcular el impuesto utiliza las tasas máximas correspondientes a ganancias de capital y el cálculo normal de impuestos le resulta en unos impuestos más bajos, el cálculo normal de impuestos es el que le corresponde. How to do 2012 taxes Ejemplo. How to do 2012 taxes Su ganancia neta de capital proviene en su totalidad de la venta de artículos coleccionables, por lo tanto, la tasa correspondiente a la ganancia de capital es 28%. How to do 2012 taxes Si de otro modo está sujeto a una tasa menor del 28%, la tasa del 28% no corresponde. How to do 2012 taxes Deducción de los intereses de inversiones. How to do 2012 taxes   Si declara una deducción de intereses de inversiones, tal vez tenga que reducir la cantidad de su ganancia neta de capital que reúna los requisitos para las tasas impositivas sobre ganancias de capital. How to do 2012 taxes Réstele la cantidad de la ganancia neta de capital que opte por incluir en los ingresos de inversiones al calcular el límite de la deducción de los mismos. How to do 2012 taxes Para hacer esto, se utiliza la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D) en las Instrucciones para el Anexo D (Formulario 1040), en inglés, o la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para los impuestos sobre dividendos calificados y ganancias de capital), que se encuentra en las instrucciones por separado correspondientes a los Formularios 1040 y 1040A, en inglés. How to do 2012 taxes Para más información acerca del límite de los intereses procedentes de inversiones, vea Interest Expenses (Gastos de intereses) en el capítulo 3 de la Publicación 550, en inglés. How to do 2012 taxes Tabla 16-1. How to do 2012 taxes ¿Cuál es la Tasa Máxima de Ganancias de Capital que le Corresponde? SI la ganancia neta de capital se deriva de . How to do 2012 taxes . How to do 2012 taxes . How to do 2012 taxes ENTONCES la  tasa máxima de  ganancia de capital es . How to do 2012 taxes . How to do 2012 taxes . How to do 2012 taxes una ganancia producto de artículos coleccionables 28% una ganancia, la cual reúne los requisitos, sobre acciones de pequeños negocios calificados menos la exclusión conforme a la sección 1202 28% una ganancia conforme a la sección 1250 no recuperada 25% otra ganancia1 y la tasa impositiva normal correspondiente es 39. How to do 2012 taxes 6% 20% otra ganancia1 y la tasa impositiva normal correspondiente es 25%, 28%, 33% o 35% 15% otra ganancia1 y la tasa impositiva normal correspondiente es 10% o 15% 0% 1 El término “otra ganancia” significa toda ganancia que no sea una ganancia procedente de artículos coleccionables, ganancia sobre acciones de pequeños negocios calificados o una ganancia conforme a la sección 1250 no recuperada. How to do 2012 taxes     Ganancia o pérdida procedente de artículos coleccionables. How to do 2012 taxes   Ésta es una ganancia o pérdida que se deriva de la venta o canje de una obra de arte, alfombra, antigüedad, metal (como oro, plata y platino en barras), piedra preciosa, estampilla o sello, moneda o bebida alcohólica que haya tenido más de 1 año. How to do 2012 taxes   Se considera que una ganancia procedente de artículos coleccionables abarca las ganancias resultantes de la venta de una participación en una sociedad colectiva, sociedad anónima de tipo S o fideicomiso, generadas por una plusvalía no realizada de dichos artículos coleccionables. How to do 2012 taxes Ganancia sobre acciones de pequeños negocios calificados. How to do 2012 taxes    Si obtuvo una ganancia de acciones de pequeños negocios calificados y fue dueño de dichas acciones durante más de 5 años, normalmente puede excluir de los ingresos una parte o la totalidad de su ganancia bajo la sección 1202. How to do 2012 taxes La ganancia que cumple los requisitos, menos la exclusión conforme a la sección 1202, es una ganancia con una tasa de 28%. How to do 2012 taxes Vea Gains on Qualified Small Business Stock (Ganancias de acciones de pequeños negocios calificados) en el capítulo 4 de la Publicación 550, en inglés. How to do 2012 taxes Ganancia conforme a la sección 1250 no recuperada. How to do 2012 taxes    Por lo general, ésta es toda parte de la ganancia de capital que se haya originado por la venta de bienes conforme a la sección 1250 (bienes raíces) debido a depreciación (pero no más que la ganancia neta conforme a la sección 1231) menos toda pérdida neta en el grupo del 28%. How to do 2012 taxes Use la Unrecaptured Section 1250 Gain Worksheet (Hoja de trabajo de ganancias no recuperadas conforme a la sección 1250) de las Instrucciones del Anexo D (Formulario 1040), en inglés, para calcular la ganancia no recuperada conforme a la sección 1250. How to do 2012 taxes Para más información sobre bienes conforme a la sección 1250 y ganancias conforme a la sección 1231, vea el capítulo 3 de la Publicación 544, en inglés. How to do 2012 taxes Cálculo de los impuestos a base de las tasas máximas de ganancias de capital. How to do 2012 taxes   Utilice la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para los impuestos sobre dividendos calificados y ganancias de capital) o la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D), la que corresponda, para calcular su impuesto si ha recibido dividendos calificados o ganancia neta de capital. How to do 2012 taxes Tiene ganancia neta de capital si las cantidades de las líneas 15 y 16 del Anexo D ambas son ganancias. How to do 2012 taxes Hoja de trabajo para los impuestos del Anexo D. How to do 2012 taxes   Utilice la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D) que se encuentra en las Instrucciones del Anexo D (Formulario 1040) para calcular el impuesto si se dan las siguientes condiciones: Tiene que presentar el Anexo D (Formulario 1040) y La cantidad de la línea 18 (ganancia a una tasa de 28%) o la línea 19 (ganancia no recuperada conforme a la sección 1250) del Anexo D (Formulario 1040) es mayor de cero. How to do 2012 taxes Hoja de trabajo para el impuesto sobre dividendos calificados y ganancias de capital. How to do 2012 taxes   Utilice la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para el impuesto sobre los dividendos calificados y ganancias de capital) de las instrucciones del Formulario 1040 o Formulario 1040A (el que presente) para calcular el impuesto si no tiene que utilizar la Hoja de trabajo para los impuestos del Anexo D (como se explica anteriormente) y corresponde cualquiera de los siguientes puntos: Recibió dividendos calificados. How to do 2012 taxes (Vea Dividendos Calificados en el capítulo 8). How to do 2012 taxes No tiene que presentar el Anexo D (Formulario 1040) y recibió distribuciones de ganancias de capital. How to do 2012 taxes (Vea Excepciones a la presentación del Formulario 8949 y el Anexo D (Formulario 1040) , anteriormente). How to do 2012 taxes Las cantidades de las líneas 15 y 16 del Anexo D (Formulario 1040) son mayores de cero. How to do 2012 taxes Impuesto mínimo alternativo. How to do 2012 taxes   Estas tasas de ganancias de capital se utilizan también para calcular el impuesto mínimo alternativo. How to do 2012 taxes Prev  Up  Next   Home   More Online Publications
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The How To Do 2012 Taxes

How to do 2012 taxes 5. How to do 2012 taxes   Wages, Salaries, and Other Earnings Table of Contents Reminder Introduction Useful Items - You may want to see: Employee CompensationBabysitting. How to do 2012 taxes Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Reminder Foreign income. How to do 2012 taxes   If you are a U. How to do 2012 taxes S. How to do 2012 taxes citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U. How to do 2012 taxes S. How to do 2012 taxes law. How to do 2012 taxes This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. How to do 2012 taxes This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). How to do 2012 taxes If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. How to do 2012 taxes For details, see Publication 54, Tax Guide for U. How to do 2012 taxes S. How to do 2012 taxes Citizens and Resident Aliens Abroad. How to do 2012 taxes Introduction This chapter discusses compensation received for services as an employee, such as wages, salaries, and fringe benefits. How to do 2012 taxes The following topics are included. How to do 2012 taxes Bonuses and awards. How to do 2012 taxes Special rules for certain employees. How to do 2012 taxes Sickness and injury benefits. How to do 2012 taxes The chapter explains what income is included in the employee's gross income and what is not included. How to do 2012 taxes Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income Employee Compensation This section discusses various types of employee compensation including fringe benefits, retirement plan contributions, stock options, and restricted property. How to do 2012 taxes Form W-2. How to do 2012 taxes    If you are an employee, you should receive Form W-2 from your employer showing the pay you received for your services. How to do 2012 taxes Include your pay on line 7 of Form 1040 or Form 1040A, or on line 1 of Form 1040EZ, even if you do not receive a Form W-2. How to do 2012 taxes   If you performed services, other than as an independent contractor, and your employer did not withhold social security and Medicare taxes from your pay, you must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, with your Form 1040. How to do 2012 taxes These wages must be included on line 7 of Form 1040. How to do 2012 taxes See Form 8919 for more information. How to do 2012 taxes Childcare providers. How to do 2012 taxes    If you provide childcare, either in the child's home or in your home or other place of business, the pay you receive must be included in your income. How to do 2012 taxes If you are not an employee, you are probably self-employed and must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. How to do 2012 taxes You generally are not an employee unless you are subject to the will and control of the person who employs you as to what you are to do and how you are to do it. How to do 2012 taxes Babysitting. How to do 2012 taxes   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. How to do 2012 taxes Miscellaneous Compensation This section discusses different types of employee compensation. How to do 2012 taxes Advance commissions and other earnings. How to do 2012 taxes   If you receive advance commissions or other amounts for services to be performed in the future and you are a cash-method taxpayer, you must include these amounts in your income in the year you receive them. How to do 2012 taxes    If you repay unearned commissions or other amounts in the same year you receive them, reduce the amount included in your income by the repayment. How to do 2012 taxes If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), or you may be able to take a credit for that year. How to do 2012 taxes See Repayments in chapter 12. How to do 2012 taxes Allowances and reimbursements. How to do 2012 taxes    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463. How to do 2012 taxes If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. How to do 2012 taxes Back pay awards. How to do 2012 taxes    Include in income amounts you are awarded in a settlement or judgment for back pay. How to do 2012 taxes These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. How to do 2012 taxes They should be reported to you by your employer on Form W-2. How to do 2012 taxes Bonuses and awards. How to do 2012 taxes   Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. How to do 2012 taxes These include prizes such as vacation trips for meeting sales goals. How to do 2012 taxes If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. How to do 2012 taxes However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you. How to do 2012 taxes Employee achievement award. How to do 2012 taxes   If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. How to do 2012 taxes However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. How to do 2012 taxes Your employer can tell you whether your award is a qualified plan award. How to do 2012 taxes Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay. How to do 2012 taxes   However, the exclusion does not apply to the following awards: A length-of-service award if you received it for less than 5 years of service or if you received another length-of-service award during the year or the previous 4 years. How to do 2012 taxes A safety achievement award if you are a manager, administrator, clerical employee, or other professional employee or if more than 10% of eligible employees previously received safety achievement awards during the year. How to do 2012 taxes Example. How to do 2012 taxes Ben Green received three employee achievement awards during the year: a nonqualified plan award of a watch valued at $250, and two qualified plan awards of a stereo valued at $1,000 and a set of golf clubs valued at $500. How to do 2012 taxes Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. How to do 2012 taxes However, because the $1,750 total value of the awards is more than $1,600, Ben must include $150 ($1,750 – $1,600) in his income. How to do 2012 taxes Differential wage payments. How to do 2012 taxes   This is any payment made to you by an employer for any period during which you are, for a period of more than 30 days, an active duty member of the uniformed services and represents all or a portion of the wages you would have received from the employer during that period. How to do 2012 taxes These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. How to do 2012 taxes The payments are reported as wages on Form W-2. How to do 2012 taxes Government cost-of-living allowances. How to do 2012 taxes   Most payments received by U. How to do 2012 taxes S. How to do 2012 taxes Government civilian employees for working abroad are taxable. How to do 2012 taxes However, certain cost-of-living allowances are tax free. How to do 2012 taxes Publication 516, U. How to do 2012 taxes S. How to do 2012 taxes Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. How to do 2012 taxes Nonqualified deferred compensation plans. How to do 2012 taxes   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. How to do 2012 taxes This amount is shown on Form W-2, box 12, using code Y. How to do 2012 taxes This amount is not included in your income. How to do 2012 taxes   However, if at any time during the tax year, the plan fails to meet certain requirements, or is not operated under those requirements, all amounts deferred under the plan for the tax year and all preceding tax years are included in your income for the current year. How to do 2012 taxes This amount is included in your wages shown on Form W-2, box 1. How to do 2012 taxes It is also shown on Form W-2, box 12, using code Z. How to do 2012 taxes Note received for services. How to do 2012 taxes    If your employer gives you a secured note as payment for your services, you must include the fair market value (usually the discount value) of the note in your income for the year you receive it. How to do 2012 taxes When you later receive payments on the note, a proportionate part of each payment is the recovery of the fair market value that you previously included in your income. How to do 2012 taxes Do not include that part again in your income. How to do 2012 taxes Include the rest of the payment in your income in the year of payment. How to do 2012 taxes   If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. How to do 2012 taxes Severance pay. How to do 2012 taxes   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. How to do 2012 taxes Accrued leave payment. How to do 2012 taxes    If you are a federal employee and receive a lump-sum payment for accrued annual leave when you retire or resign, this amount will be included as wages on your Form W-2. How to do 2012 taxes   If you resign from one agency and are reemployed by another agency, you may have to repay part of your lump-sum annual leave payment to the second agency. How to do 2012 taxes You can reduce gross wages by the amount you repaid in the same tax year in which you received it. How to do 2012 taxes Attach to your tax return a copy of the receipt or statement given to you by the agency you repaid to explain the difference between the wages on the return and the wages on your Forms W-2. How to do 2012 taxes Outplacement services. How to do 2012 taxes   If you choose to accept a reduced amount of severance pay so that you can receive outplacement services (such as training in résumé writing and interview techniques), you must include the unreduced amount of the severance pay in income. How to do 2012 taxes    However, you can deduct the value of these outplacement services (up to the difference between the severance pay included in income and the amount actually received) as a miscellaneous deduction (subject to the 2%-of-adjusted-gross-income (AGI) limit) on Schedule A (Form 1040). How to do 2012 taxes Sick pay. How to do 2012 taxes   Pay you receive from your employer while you are sick or injured is part of your salary or wages. How to do 2012 taxes In addition, you must include in your income sick pay benefits received from any of the following payers: A welfare fund. How to do 2012 taxes A state sickness or disability fund. How to do 2012 taxes An association of employers or employees. How to do 2012 taxes An insurance company, if your employer paid for the plan. How to do 2012 taxes However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. How to do 2012 taxes For more information, see Publication 525. How to do 2012 taxes Social security and Medicare taxes paid by employer. How to do 2012 taxes   If you and your employer have an agreement that your employer pays your social security and Medicare taxes without deducting them from your gross wages, you must report the amount of tax paid for you as taxable wages on your tax return. How to do 2012 taxes The payment also is treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. How to do 2012 taxes However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. How to do 2012 taxes Stock appreciation rights. How to do 2012 taxes   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. How to do 2012 taxes When you use the right, you are entitled to a cash payment equal to the fair market value of the corporation's stock on the date of use minus the fair market value on the date the right was granted. How to do 2012 taxes You include the cash payment in your income in the year you use the right. How to do 2012 taxes Fringe Benefits Fringe benefits received in connection with the performance of your services are included in your income as compensation unless you pay fair market value for them or they are specifically excluded by law. How to do 2012 taxes Abstaining from the performance of services (for example, under a covenant not to compete) is treated as the performance of services for purposes of these rules. How to do 2012 taxes Accounting period. How to do 2012 taxes   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. How to do 2012 taxes Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. How to do 2012 taxes The general rule: benefits are reported for a full calendar year (January 1–December 31). How to do 2012 taxes The special accounting period rule: benefits provided during the last 2 months of the calendar year (or any shorter period) are treated as paid during the following calendar year. How to do 2012 taxes For example, each year your employer reports the value of benefits provided during the last 2 months of the prior year and the first 10 months of the current year. How to do 2012 taxes  Your employer does not have to use the same accounting period for each fringe benefit, but must use the same period for all employees who receive a particular benefit. How to do 2012 taxes   You must use the same accounting period that you use to report the benefit to claim an employee business deduction (for use of a car, for example). How to do 2012 taxes Form W-2. How to do 2012 taxes   Your employer must include all taxable fringe benefits in box 1 of Form W-2 as wages, tips, and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages. How to do 2012 taxes Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). How to do 2012 taxes However, if your employer provided you with a vehicle and included 100% of its annual lease value in your income, the employer must separately report this value to you in box 14 (or on a separate statement). How to do 2012 taxes Accident or Health Plan In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income. How to do 2012 taxes Benefits you receive from the plan may be taxable, as explained later under Sickness and Injury Benefits . How to do 2012 taxes For information on the items covered in this section, other than Long-term care coverage, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. How to do 2012 taxes Long-term care coverage. How to do 2012 taxes    Contributions by your employer to provide coverage for long-term care services generally are not included in your income. How to do 2012 taxes However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. How to do 2012 taxes This amount will be reported as wages in box 1 of your Form W-2. How to do 2012 taxes   Contributions you make to the plan are discussed in Publication 502, Medical and Dental Expenses. How to do 2012 taxes Archer MSA contributions. How to do 2012 taxes    Contributions by your employer to your Archer MSA generally are not included in your income. How to do 2012 taxes Their total will be reported in box 12 of Form W-2 with code R. How to do 2012 taxes You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. How to do 2012 taxes File the form with your return. How to do 2012 taxes Health flexible spending arrangement (health FSA). How to do 2012 taxes   If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income. How to do 2012 taxes Note. How to do 2012 taxes Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. How to do 2012 taxes The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. How to do 2012 taxes For more information, see Notice 2012-40, 2012-26 I. How to do 2012 taxes R. How to do 2012 taxes B. How to do 2012 taxes 1046, available at www. How to do 2012 taxes irs. How to do 2012 taxes gov/irb/2012-26 IRB/ar09. How to do 2012 taxes html. How to do 2012 taxes Health reimbursement arrangement (HRA). How to do 2012 taxes   If your employer provides an HRA that qualifies as an accident or health plan, coverage and reimbursements of your medical care expenses generally are not included in your income. How to do 2012 taxes Health savings accounts (HSA). How to do 2012 taxes   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. How to do 2012 taxes Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. How to do 2012 taxes Contributions made by your employer are not included in your income. How to do 2012 taxes Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. How to do 2012 taxes Distributions not used for qualified medical expenses are included in your income. How to do 2012 taxes See Publication 969 for the requirements of an HSA. How to do 2012 taxes   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. How to do 2012 taxes The contributions are treated as a distribution of money and are not included in the partner's gross income. How to do 2012 taxes Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are includible in the partner's gross income. How to do 2012 taxes In both situations, the partner can deduct the contribution made to the partner's HSA. How to do 2012 taxes   Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are includible in the shareholder-employee's gross income. How to do 2012 taxes The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. How to do 2012 taxes Qualified HSA funding distribution. How to do 2012 taxes   You can make a one-time distribution from your individual retirement account (IRA) to an HSA and you generally will not include any of the distribution in your income. How to do 2012 taxes See Publication 590 for the requirements for these qualified HSA funding distributions. How to do 2012 taxes Failure to maintain eligibility. How to do 2012 taxes   If your HSA received qualified HSA distributions from a health FSA or HRA (discussed earlier) or a qualified HSA funding distribution, you must be an eligible individual for HSA purposes for the period beginning with the month in which the qualified distribution was made and ending on the last day of the 12th month following that month. How to do 2012 taxes If you fail to be an eligible individual during this period, other than because of death or disability, you must include the distribution in your income for the tax year in which you become ineligible. How to do 2012 taxes This income is also subject to an additional 10% tax. How to do 2012 taxes Adoption Assistance You may be able to exclude from your income amounts paid or expenses incurred by your employer for qualified adoption expenses in connection with your adoption of an eligible child. How to do 2012 taxes See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. How to do 2012 taxes Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. How to do 2012 taxes They also are included as social security and Medicare wages in boxes 3 and 5. How to do 2012 taxes However, they are not included as wages in box 1. How to do 2012 taxes To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. How to do 2012 taxes File the form with your return. How to do 2012 taxes De Minimis (Minimal) Benefits If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. How to do 2012 taxes In most cases, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. How to do 2012 taxes Holiday gifts. How to do 2012 taxes   If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. How to do 2012 taxes However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved. How to do 2012 taxes Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. How to do 2012 taxes For more information, see Publication 970, Tax Benefits for Education. How to do 2012 taxes Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) is not included in your income. How to do 2012 taxes However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. How to do 2012 taxes For exceptions, see Entire cost excluded , and Entire cost taxed , later. How to do 2012 taxes If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of your Form W-2. How to do 2012 taxes Also, it is shown separately in box 12 with code C. How to do 2012 taxes Group-term life insurance. How to do 2012 taxes   This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. How to do 2012 taxes Permanent benefits. How to do 2012 taxes   If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. How to do 2012 taxes Your employer should be able to tell you the amount to include in your income. How to do 2012 taxes Accidental death benefits. How to do 2012 taxes   Insurance that provides accidental or other death benefits but does not provide general death benefits (travel insurance, for example) is not group-term life insurance. How to do 2012 taxes Former employer. How to do 2012 taxes   If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. How to do 2012 taxes Also, it is shown separately in box 12 with code C. How to do 2012 taxes Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. How to do 2012 taxes You must pay these taxes with your income tax return. How to do 2012 taxes Include them on line 60, Form 1040, and follow the instructions for line 60. How to do 2012 taxes For more information, see the Instructions for Form 1040. How to do 2012 taxes Two or more employers. How to do 2012 taxes   Your exclusion for employer-provided group-term life insurance coverage cannot exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. How to do 2012 taxes If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 will not be correct. How to do 2012 taxes You must figure how much to include in your income. How to do 2012 taxes Reduce the amount you figure by any amount reported with code C in box 12 of your Forms W-2, add the result to the wages reported in box 1, and report the total on your return. How to do 2012 taxes Figuring the taxable cost. How to do 2012 taxes   Use the following worksheet to figure the amount to include in your income. How to do 2012 taxes     Worksheet 5-1. How to do 2012 taxes Figuring the Cost of Group-Term Life Insurance To Include in Income 1. How to do 2012 taxes Enter the total amount of your insurance coverage from your employer(s) 1. How to do 2012 taxes   2. How to do 2012 taxes Limit on exclusion for employer-provided group-term life insurance coverage 2. How to do 2012 taxes 50,000 3. How to do 2012 taxes Subtract line 2 from line 1 3. How to do 2012 taxes   4. How to do 2012 taxes Divide line 3 by $1,000. How to do 2012 taxes Figure to the nearest tenth 4. How to do 2012 taxes   5. How to do 2012 taxes Go to Table 5-1. How to do 2012 taxes Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. How to do 2012 taxes   6. How to do 2012 taxes Multiply line 4 by line 5 6. How to do 2012 taxes   7. How to do 2012 taxes Enter the number of full months of coverage at this cost. How to do 2012 taxes 7. How to do 2012 taxes   8. How to do 2012 taxes Multiply line 6 by line 7 8. How to do 2012 taxes   9. How to do 2012 taxes Enter the premiums you paid per month 9. How to do 2012 taxes       10. How to do 2012 taxes Enter the number of months you paid the premiums 10. How to do 2012 taxes       11. How to do 2012 taxes Multiply line 9 by line 10. How to do 2012 taxes 11. How to do 2012 taxes   12. How to do 2012 taxes Subtract line 11 from line 8. How to do 2012 taxes Include this amount in your income as wages 12. How to do 2012 taxes      Table 5-1. How to do 2012 taxes Cost of $1,000 of Group-Term Life Insurance for One Month Age Cost Under 25 $. How to do 2012 taxes 05 25 through 29 . How to do 2012 taxes 06 30 through 34 . How to do 2012 taxes 08 35 through 39 . How to do 2012 taxes 09 40 through 44 . How to do 2012 taxes 10 45 through 49 . How to do 2012 taxes 15 50 through 54 . How to do 2012 taxes 23 55 through 59 . How to do 2012 taxes 43 60 through 64 . How to do 2012 taxes 66 65 through 69 1. How to do 2012 taxes 27 70 and older 2. How to do 2012 taxes 06 Example. How to do 2012 taxes You are 51 years old and work for employers A and B. How to do 2012 taxes Both employers provide group-term life insurance coverage for you for the entire year. How to do 2012 taxes Your coverage is $35,000 with employer A and $45,000 with employer B. How to do 2012 taxes You pay premiums of $4. How to do 2012 taxes 15 a month under the employer B group plan. How to do 2012 taxes You figure the amount to include in your income as shown in Worksheet 5-1. How to do 2012 taxes Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated, later. How to do 2012 taxes Worksheet 5-1. How to do 2012 taxes Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated 1. How to do 2012 taxes Enter the total amount of your insurance coverage from your employer(s) 1. How to do 2012 taxes 80,000 2. How to do 2012 taxes Limit on exclusion for employer-provided group-term life insurance coverage 2. How to do 2012 taxes 50,000 3. How to do 2012 taxes Subtract line 2 from line 1 3. How to do 2012 taxes 30,000 4. How to do 2012 taxes Divide line 3 by $1,000. How to do 2012 taxes Figure to the nearest tenth 4. How to do 2012 taxes 30. How to do 2012 taxes 0 5. How to do 2012 taxes Go to Table 5-1. How to do 2012 taxes Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. How to do 2012 taxes . How to do 2012 taxes 23 6. How to do 2012 taxes Multiply line 4 by line 5 6. How to do 2012 taxes 6. How to do 2012 taxes 90 7. How to do 2012 taxes Enter the number of full months of coverage at this cost. How to do 2012 taxes 7. How to do 2012 taxes 12 8. How to do 2012 taxes Multiply line 6 by line 7 8. How to do 2012 taxes 82. How to do 2012 taxes 80 9. How to do 2012 taxes Enter the premiums you paid per month 9. How to do 2012 taxes 4. How to do 2012 taxes 15     10. How to do 2012 taxes Enter the number of months you paid the premiums 10. How to do 2012 taxes 12     11. How to do 2012 taxes Multiply line 9 by line 10. How to do 2012 taxes 11. How to do 2012 taxes 49. How to do 2012 taxes 80 12. How to do 2012 taxes Subtract line 11 from line 8. How to do 2012 taxes Include this amount in your income as wages 12. How to do 2012 taxes 33. How to do 2012 taxes 00 Entire cost excluded. How to do 2012 taxes   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. How to do 2012 taxes You are permanently and totally disabled and have ended your employment. How to do 2012 taxes Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. How to do 2012 taxes A charitable organization (defined in chapter 24) to which contributions are deductible is the only beneficiary of the policy for the entire period the insurance is in force during the tax year. How to do 2012 taxes (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. How to do 2012 taxes ) The plan existed on January 1, 1984, and You retired before January 2, 1984, and were covered by the plan when you retired, or You reached age 55 before January 2, 1984, and were employed by the employer or its predecessor in 1983. How to do 2012 taxes Entire cost taxed. How to do 2012 taxes   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply: The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. How to do 2012 taxes You are a key employee and your employer's plan discriminates in favor of key employees. How to do 2012 taxes Retirement Planning Services If your employer has a qualified retirement plan, qualified retirement planning services provided to you (and your spouse) by your employer are not included in your income. How to do 2012 taxes Qualified services include retirement planning advice, information about your employer's retirement plan, and information about how the plan may fit into your overall individual retirement income plan. How to do 2012 taxes You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. How to do 2012 taxes Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. How to do 2012 taxes A qualified transportation fringe benefit is: Transportation in a commuter highway vehicle (such as a van) between your home and work place, A transit pass, Qualified parking, or Qualified bicycle commuting reimbursement. How to do 2012 taxes Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. How to do 2012 taxes However, cash reimbursement for a transit pass is excludable only if a voucher or similar item that can be exchanged only for a transit pass is not readily available for direct distribution to you. How to do 2012 taxes Exclusion limit. How to do 2012 taxes   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. How to do 2012 taxes   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. How to do 2012 taxes   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. How to do 2012 taxes   If the benefits have a value that is more than these limits, the excess must be included in your income. How to do 2012 taxes You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. How to do 2012 taxes Commuter highway vehicle. How to do 2012 taxes   This is a highway vehicle that seats at least six adults (not including the driver). How to do 2012 taxes At least 80% of the vehicle's mileage must reasonably be expected to be: For transporting employees between their homes and work place, and On trips during which employees occupy at least half of the vehicle's adult seating capacity (not including the driver). How to do 2012 taxes Transit pass. How to do 2012 taxes   This is any pass, token, farecard, voucher, or similar item entitling a person to ride mass transit (whether public or private) free or at a reduced rate or to ride in a commuter highway vehicle operated by a person in the business of transporting persons for compensation. How to do 2012 taxes Qualified parking. How to do 2012 taxes   This is parking provided to an employee at or near the employer's place of business. How to do 2012 taxes It also includes parking provided on or near a location from which the employee commutes to work by mass transit, in a commuter highway vehicle, or by carpool. How to do 2012 taxes It does not include parking at or near the employee's home. How to do 2012 taxes Qualified bicycle commuting. How to do 2012 taxes   This is reimbursement based on the number of qualified bicycle commuting months for the year. How to do 2012 taxes A qualified bicycle commuting month is any month you use the bicycle regularly for a substantial portion of the travel between your home and place of employment and you do not receive any of the other qualified transportation fringe benefits. How to do 2012 taxes The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. How to do 2012 taxes Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. How to do 2012 taxes (Your employer can tell you whether your retirement plan is qualified. How to do 2012 taxes ) However, the cost of life insurance coverage included in the plan may have to be included. How to do 2012 taxes See Group-Term Life Insurance , earlier, under Fringe Benefits. How to do 2012 taxes If your employer pays into a nonqualified plan for you, you generally must include the contributions in your income as wages for the tax year in which the contributions are made. How to do 2012 taxes However, if your interest in the plan is not transferable or is subject to a substantial risk of forfeiture (you have a good chance of losing it) at the time of the contribution, you do not have to include the value of your interest in your income until it is transferable or is no longer subject to a substantial risk of forfeiture. How to do 2012 taxes For information on distributions from retirement plans, see Publication 575, Pension and Annuity Income (or Publication 721, Tax Guide to U. How to do 2012 taxes S. How to do 2012 taxes Civil Service Retirement Benefits, if you are a federal employee or retiree). How to do 2012 taxes Elective deferrals. How to do 2012 taxes   If you are covered by certain kinds of retirement plans, you can choose to have part of your compensation contributed by your employer to a retirement fund, rather than have it paid to you. How to do 2012 taxes The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. How to do 2012 taxes An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. How to do 2012 taxes However, it is included in wages subject to social security and Medicare taxes. How to do 2012 taxes   Elective deferrals include elective contributions to the following retirement plans. How to do 2012 taxes Cash or deferred arrangements (section 401(k) plans). How to do 2012 taxes The Thrift Savings Plan for federal employees. How to do 2012 taxes Salary reduction simplified employee pension plans (SARSEP). How to do 2012 taxes Savings incentive match plans for employees (SIMPLE plans). How to do 2012 taxes Tax-sheltered annuity plans (403(b) plans). How to do 2012 taxes Section 501(c)(18)(D) plans. How to do 2012 taxes Section 457 plans. How to do 2012 taxes Qualified automatic contribution arrangements. How to do 2012 taxes   Under a qualified automatic contribution arrangement, your employer can treat you as having elected to have a part of your compensation contributed to a section 401(k) plan. How to do 2012 taxes You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. How to do 2012 taxes The notice must explain: Your rights to elect not to have elective contributions made, or to have contributions made at a different percentage, and How contributions made will be invested in the absence of any investment decision by you. How to do 2012 taxes   You must be given a reasonable period of time after receipt of the notice and before the first elective contribution is made to make an election with respect to the contributions. How to do 2012 taxes Overall limit on deferrals. How to do 2012 taxes   For 2013, in most cases, you should not have deferred more than a total of $17,500 of contributions to the plans listed in (1) through (3) and (5) above. How to do 2012 taxes The limit for SIMPLE plans is $12,000. How to do 2012 taxes The limit for section 501(c)(18)(D) plans is the lesser of $7,000 or 25% of your compensation. How to do 2012 taxes The limit for section 457 plans is the lesser of your includible compensation or $17,500. How to do 2012 taxes Amounts deferred under specific plan limits are part of the overall limit on deferrals. How to do 2012 taxes Designated Roth contributions. How to do 2012 taxes   Employers with section 401(k) and section 403(b) plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals to the plan designated as after-tax Roth contributions. How to do 2012 taxes Designated Roth contributions are treated as elective deferrals, except that they are included in income. How to do 2012 taxes Excess deferrals. How to do 2012 taxes   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. How to do 2012 taxes However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. How to do 2012 taxes   If you set aside more than the limit, the excess generally must be included in your income for that year, unless you have an excess deferral of a designated Roth contribution. How to do 2012 taxes See Publication 525 for a discussion of the tax treatment of excess deferrals. How to do 2012 taxes Catch-up contributions. How to do 2012 taxes   You may be allowed catch-up contributions (additional elective deferral) if you are age 50 or older by the end of your tax year. How to do 2012 taxes Stock Options If you receive a nonstatutory option to buy or sell stock or other property as payment for your services, you usually will have income when you receive the option, when you exercise the option (use it to buy or sell the stock or other property), or when you sell or otherwise dispose of the option. How to do 2012 taxes However, if your option is a statutory stock option, you will not have any income until you sell or exchange your stock. How to do 2012 taxes Your employer can tell you which kind of option you hold. How to do 2012 taxes For more information, see Publication 525. How to do 2012 taxes Restricted Property In most cases, if you receive property for your services, you must include its fair market value in your income in the year you receive the property. How to do 2012 taxes However, if you receive stock or other property that has certain restrictions that affect its value, you do not include the value of the property in your income until it has substantially vested. How to do 2012 taxes (You can choose to include the value of the property in your income in the year it is transferred to you. How to do 2012 taxes ) For more information, see Restricted Property in Publication 525. How to do 2012 taxes Dividends received on restricted stock. How to do 2012 taxes   Dividends you receive on restricted stock are treated as compensation and not as dividend income. How to do 2012 taxes Your employer should include these payments on your Form W-2. How to do 2012 taxes Stock you chose to include in income. How to do 2012 taxes   Dividends you receive on restricted stock you chose to include in your income in the year transferred are treated the same as any other dividends. How to do 2012 taxes Report them on your return as dividends. How to do 2012 taxes For a discussion of dividends, see chapter 8. How to do 2012 taxes    For information on how to treat dividends reported on both your Form W-2 and Form 1099-DIV, see Dividends received on restricted stock in Publication 525. How to do 2012 taxes Special Rules for Certain Employees This section deals with special rules for people in certain types of employment: members of the clergy, members of religious orders, people working for foreign employers, military personnel, and volunteers. How to do 2012 taxes Clergy Generally, if you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, masses, etc. How to do 2012 taxes , in addition to your salary. How to do 2012 taxes If the offering is made to the religious institution, it is not taxable to you. How to do 2012 taxes If you are a member of a religious organization and you give your outside earnings to the religious organization, you still must include the earnings in your income. How to do 2012 taxes However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. How to do 2012 taxes See chapter 24. How to do 2012 taxes Pension. How to do 2012 taxes    A pension or retirement pay for a member of the clergy usually is treated as any other pension or annuity. How to do 2012 taxes It must be reported on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. How to do 2012 taxes Housing. How to do 2012 taxes    Special rules for housing apply to members of the clergy. How to do 2012 taxes Under these rules, you do not include in your income the rental value of a home (including utilities) or a designated housing allowance provided to you as part of your pay. How to do 2012 taxes However, the exclusion cannot be more than the reasonable pay for your service. How to do 2012 taxes If you pay for the utilities, you can exclude any allowance designated for utility cost, up to your actual cost. How to do 2012 taxes The home or allowance must be provided as compensation for your services as an ordained, licensed, or commissioned minister. How to do 2012 taxes However, you must include the rental value of the home or the housing allowance as earnings from self-employment on Schedule SE (Form 1040) if you are subject to the self-employment tax. How to do 2012 taxes For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. How to do 2012 taxes Members of Religious Orders If you are a member of a religious order who has taken a vow of poverty, how you treat earnings that you renounce and turn over to the order depends on whether your services are performed for the order. How to do 2012 taxes Services performed for the order. How to do 2012 taxes   If you are performing the services as an agent of the order in the exercise of duties required by the order, do not include in your income the amounts turned over to the order. How to do 2012 taxes   If your order directs you to perform services for another agency of the supervising church or an associated institution, you are considered to be performing the services as an agent of the order. How to do 2012 taxes Any wages you earn as an agent of an order that you turn over to the order are not included in your income. How to do 2012 taxes Example. How to do 2012 taxes You are a member of a church order and have taken a vow of poverty. How to do 2012 taxes You renounce any claims to your earnings and turn over to the order any salaries or wages you earn. How to do 2012 taxes You are a registered nurse, so your order assigns you to work in a hospital that is an associated institution of the church. How to do 2012 taxes However, you remain under the general direction and control of the order. How to do 2012 taxes You are considered to be an agent of the order and any wages you earn at the hospital that you turn over to your order are not included in your income. How to do 2012 taxes Services performed outside the order. How to do 2012 taxes   If you are directed to work outside the order, your services are not an exercise of duties required by the order unless they meet both of the following requirements: They are the kind of services that are ordinarily the duties of members of the order. How to do 2012 taxes They are part of the duties that you must exercise for, or on behalf of, the religious order as its agent. How to do 2012 taxes If you are an employee of a third party, the services you perform for the third party will not be considered directed or required of you by the order. How to do 2012 taxes Amounts you receive for these services are included in your income, even if you have taken a vow of poverty. How to do 2012 taxes Example. How to do 2012 taxes Mark Brown is a member of a religious order and has taken a vow of poverty. How to do 2012 taxes He renounces all claims to his earnings and turns over his earnings to the order. How to do 2012 taxes Mark is a schoolteacher. How to do 2012 taxes He was instructed by the superiors of the order to get a job with a private tax-exempt school. How to do 2012 taxes Mark became an employee of the school, and, at his request, the school made the salary payments directly to the order. How to do 2012 taxes Because Mark is an employee of the school, he is performing services for the school rather than as an agent of the order. How to do 2012 taxes The wages Mark earns working for the school are included in his income. How to do 2012 taxes Foreign Employer Special rules apply if you work for a foreign employer. How to do 2012 taxes U. How to do 2012 taxes S. How to do 2012 taxes citizen. How to do 2012 taxes   If you are a U. How to do 2012 taxes S. How to do 2012 taxes citizen who works in the United States for a foreign government, an international organization, a foreign embassy, or any foreign employer, you must include your salary in your income. How to do 2012 taxes Social security and Medicare taxes. How to do 2012 taxes   You are exempt from social security and Medicare employee taxes if you are employed in the United States by an international organization or a foreign government. How to do 2012 taxes However, you must pay self-employment tax on your earnings from services performed in the United States, even though you are not self-employed. How to do 2012 taxes This rule also applies if you are an employee of a qualifying wholly owned instrumentality of a foreign government. How to do 2012 taxes Employees of international organizations or foreign governments. How to do 2012 taxes   Your compensation for official services to an international organization is exempt from federal income tax if you are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). How to do 2012 taxes   Your compensation for official services to a foreign government is exempt from federal income tax if all of the following are true. How to do 2012 taxes You are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). How to do 2012 taxes Your work is like the work done by employees of the United States in foreign countries. How to do 2012 taxes The foreign government gives an equal exemption to employees of the United States in its country. How to do 2012 taxes Waiver of alien status. How to do 2012 taxes   If you are an alien who works for a foreign government or international organization and you file a waiver under section 247(b) of the Immigration and Nationality Act to keep your immigrant status, different rules may apply. How to do 2012 taxes See Foreign Employer in Publication 525. How to do 2012 taxes Employment abroad. How to do 2012 taxes   For information on the tax treatment of income earned abroad, see Publication 54. How to do 2012 taxes Military Payments you receive as a member of a military service generally are taxed as wages except for retirement pay, which is taxed as a pension. How to do 2012 taxes Allowances generally are not taxed. How to do 2012 taxes For more information on the tax treatment of military allowances and benefits, see Publication 3, Armed Forces' Tax Guide. How to do 2012 taxes Differential wage payments. How to do 2012 taxes   Any payments made to you by an employer during the time you are performing service in the uniformed services are treated as compensation. How to do 2012 taxes These wages are subject to income tax withholding and are reported on a Form W-2. How to do 2012 taxes See the discussion under Miscellaneous Compensation , earlier. How to do 2012 taxes Military retirement pay. How to do 2012 taxes   If your retirement pay is based on age or length of service, it is taxable and must be included in your income as a pension on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. How to do 2012 taxes Do not include in your income the amount of any reduction in retirement or retainer pay to provide a survivor annuity for your spouse or children under the Retired Serviceman's Family Protection Plan or the Survivor Benefit Plan. How to do 2012 taxes   For more detailed discussion of survivor annuities, see chapter 10. How to do 2012 taxes Disability. How to do 2012 taxes   If you are retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later. How to do 2012 taxes Veterans' benefits. How to do 2012 taxes   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA). How to do 2012 taxes The following amounts paid to veterans or their families are not taxable. How to do 2012 taxes Education, training, and subsistence allowances. How to do 2012 taxes Disability compensation and pension payments for disabilities paid either to veterans or their families. How to do 2012 taxes Grants for homes designed for wheelchair living. How to do 2012 taxes Grants for motor vehicles for veterans who lost their sight or the use of their limbs. How to do 2012 taxes Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death. How to do 2012 taxes Interest on insurance dividends you leave on deposit with the VA. How to do 2012 taxes Benefits under a dependent-care assistance program. How to do 2012 taxes The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001. How to do 2012 taxes Payments made under the compensated work therapy program. How to do 2012 taxes Any bonus payment by a state or political subdivision because of service in a combat zone. How to do 2012 taxes Volunteers The tax treatment of amounts you receive as a volunteer worker for the Peace Corps or similar agency is covered in the following discussions. How to do 2012 taxes Peace Corps. How to do 2012 taxes   Living allowances you receive as a Peace Corps volunteer or volunteer leader for housing, utilities, household supplies, food, and clothing are exempt from tax. How to do 2012 taxes Taxable allowances. How to do 2012 taxes   The following allowances must be included in your income and reported as wages: Allowances paid to your spouse and minor children while you are a volunteer leader training in the United States. How to do 2012 taxes Living allowances designated by the Director of the Peace Corps as basic compensation. How to do 2012 taxes These are allowances for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. How to do 2012 taxes Leave allowances. How to do 2012 taxes Readjustment allowances or termination payments. How to do 2012 taxes These are considered received by you when credited to your account. How to do 2012 taxes Example. How to do 2012 taxes Gary Carpenter, a Peace Corps volunteer, gets $175 a month as a readjustment allowance during his period of service, to be paid to him in a lump sum at the end of his tour of duty. How to do 2012 taxes Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. How to do 2012 taxes Volunteers in Service to America (VISTA). How to do 2012 taxes   If you are a VISTA volunteer, you must include meal and lodging allowances paid to you in your income as wages. How to do 2012 taxes National Senior Services Corps programs. How to do 2012 taxes   Do not include in your income amounts you receive for supportive services or reimbursements for out-of-pocket expenses from the following programs. How to do 2012 taxes Retired Senior Volunteer Program (RSVP). How to do 2012 taxes Foster Grandparent Program. How to do 2012 taxes Senior Companion Program. How to do 2012 taxes Service Corps of Retired Executives (SCORE). How to do 2012 taxes   If you receive amounts for supportive services or reimbursements for out-of-pocket expenses from SCORE, do not include these amounts in income. How to do 2012 taxes Volunteer tax counseling. How to do 2012 taxes   Do not include in your income any reimbursements you receive for transportation, meals, and other expenses you have in training for, or actually providing, volunteer federal income tax counseling for the elderly (TCE). How to do 2012 taxes   You can deduct as a charitable contribution your unreimbursed out-of-pocket expenses in taking part in the volunteer income tax assistance (VITA) program. How to do 2012 taxes See chapter 24. How to do 2012 taxes Sickness and Injury Benefits This section discusses sickness and injury benefits including disability pensions, long-term care insurance contracts, workers' compensation, and other benefits. How to do 2012 taxes In most cases, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. How to do 2012 taxes If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. How to do 2012 taxes However, certain payments may not be taxable to you. How to do 2012 taxes Your employer should be able to give you specific details about your pension plan and tell you the amount you paid for your disability pension. How to do 2012 taxes In addition to disability pensions and annuities, you may be receiving other payments for sickness and injury. How to do 2012 taxes Do not report as income any amounts paid to reimburse you for medical expenses you incurred after the plan was established. How to do 2012 taxes Cost paid by you. How to do 2012 taxes   If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. How to do 2012 taxes If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. How to do 2012 taxes See Reimbursement in a later year in chapter 21. How to do 2012 taxes Cafeteria plans. How to do 2012 taxes   In most cases, if you are covered by an accident or health insurance plan through a cafeteria plan, and the amount of the insurance premiums was not included in your income, you are not considered to have paid the premiums and you must include any benefits you receive in your income. How to do 2012 taxes If the amount of the premiums was included in your income, you are considered to have paid the premiums, and any benefits you receive are not taxable. How to do 2012 taxes Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. How to do 2012 taxes You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A, until you reach minimum retirement age. How to do 2012 taxes Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. How to do 2012 taxes You may be entitled to a tax credit if you were permanently and totally disabled when you retired. How to do 2012 taxes For information on this credit and the definition of permanent and total disability, see chapter 33. How to do 2012 taxes Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. How to do 2012 taxes Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. How to do 2012 taxes The rules for reporting pensions are explained in How To Report in chapter 10. How to do 2012 taxes For information on disability payments from a governmental program provided as a substitute for unemployment compensation, see chapter 12. How to do 2012 taxes Retirement and profit-sharing plans. How to do 2012 taxes   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. How to do 2012 taxes The payments must be reported as a pension or annuity. How to do 2012 taxes For more information on pensions, see chapter 10. How to do 2012 taxes Accrued leave payment. How to do 2012 taxes   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. How to do 2012 taxes The payment is not a disability payment. How to do 2012 taxes Include it in your income in the tax year you receive it. How to do 2012 taxes Military and Government Disability Pensions Certain military and government disability pensions are not taxable. How to do 2012 taxes Service-connected disability. How to do 2012 taxes   You may be able to exclude from income amounts you receive as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service in one of the following government services. How to do 2012 taxes The armed forces of any country. How to do 2012 taxes The National Oceanic and Atmospheric Administration. How to do 2012 taxes The Public Health Service. How to do 2012 taxes The Foreign Service. How to do 2012 taxes Conditions for exclusion. How to do 2012 taxes   Do not include the disability payments in your income if any of the following conditions apply. How to do 2012 taxes You were entitled to receive a disability payment before September 25, 1975. How to do 2012 taxes You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975. How to do 2012 taxes You receive the disability payments for a combat-related injury. How to do 2012 taxes This is a personal injury or sickness that Results directly from armed conflict, Takes place while you are engaged in extra-hazardous service, Takes place under conditions simulating war, including training exercises such as maneuvers, or Is caused by an instrumentality of war. How to do 2012 taxes You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. How to do 2012 taxes Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA. How to do 2012 taxes Pension based on years of service. How to do 2012 taxes   If you receive a disability pension based on years of service, in most cases you must include it in your income. How to do 2012 taxes However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), do not include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. How to do 2012 taxes You must include the rest of your pension in your income. How to do 2012 taxes Retroactive VA determination. How to do 2012 taxes   If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive. How to do 2012 taxes You can claim a refund of any tax paid on the excludable amount (subject to the statute of limitations) by filing an amended return on Form 1040X for each previous year during the retroactive period. How to do 2012 taxes You must include with each Form 1040X a copy of the official VA Determination letter granting the retroactive benefit. How to do 2012 taxes The letter must show the amount withheld and the effective date of the benefit. How to do 2012 taxes   If you receive a lump-sum disability severance payment and are later awarded VA disability benefits, exclude 100% of the severance benefit from your income. How to do 2012 taxes However, you must include in your income any lump-sum readjustment or other nondisability severance payment you received on release from active duty, even if you are later given a retroactive disability rating by the VA. How to do 2012 taxes Special statute of limitations. How to do 2012 taxes   In most cases, under the statute of limitations a claim for credit or refund must be filed within 3 years from the time a return was filed. How to do 2012 taxes However, if you receive a retroactive service-connected disability rating determination, the statute of limitations is extended by a 1-year period beginning on the date of the determination. How to do 2012 taxes This 1-year extended period applies to claims for credit or refund filed after June 17, 2008, and does not apply to any tax year that began more than 5 years before the date of the determination. How to do 2012 taxes Example. How to do 2012 taxes You retired in 2007 and receive a pension based on your years of service. How to do 2012 taxes On August 1, 2013, you receive a determination of service-connected disability retroactive to 2007. How to do 2012 taxes Generally, you could claim a refund for the taxes paid on your pension for 2010, 2011, and 2012. How to do 2012 taxes However, under the special limitation period, you can also file a claim for 2009 as long as you file the claim by August 1, 2014. How to do 2012 taxes You cannot file a claim for 2007 and 2008 because those tax years began more than 5 years before the determination. How to do 2012 taxes Terrorist attack or military action. How to do 2012 taxes   Do not include in your income disability payments you receive for injuries resulting directly from a terrorist or military action. How to do 2012 taxes Long-Term Care Insurance Contracts Long-term care insurance contracts in most cases are treated as accident and health insurance contracts. How to do 2012 taxes Amounts you receive from them (other than policyholder dividends or premium refunds) in most cases are excludable from income as amounts received for personal injury or sickness. How to do 2012 taxes To claim an exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract, you must file Form 8853 with your return. How to do 2012 taxes A long-term care insurance contract is an insurance contract that only provides coverage for qualified long-term care services. How to do 2012 taxes The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits, and In most cases, not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. How to do 2012 taxes Qualified long-term care services. How to do 2012 taxes   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance and personal care services, and Required by a chronically ill individual and provided pursuant to a plan of care as prescribed by a licensed health care practitioner. How to do 2012 taxes Chronically ill individual. How to do 2012 taxes   A chronically ill individual is one who has been certified by a licensed health care practitioner within the previous 12 months as one of the following: An individual who, for at least 90 days, is unable to perform at least two activities of daily living without substantial assistance due to loss of functional capacity. How to do 2012 taxes Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. How to do 2012 taxes An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. How to do 2012 taxes Limit on exclusion. How to do 2012 taxes   You generally can exclude from gross income up to $320 a day for 2013. How to do 2012 taxes See Limit on exclusion, under Long-Term Care Insurance Contracts, under Sickness and Injury Benefits in Publication 525 for more information. How to do 2012 taxes Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. How to do 2012 taxes The exemption also applies to your survivors. How to do 2012 taxes The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. How to do 2012 taxes If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. How to do 2012 taxes For more information, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. How to do 2012 taxes Return to work. How to do 2012 taxes    If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. How to do 2012 taxes Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. How to do 2012 taxes Railroad sick pay. How to do 2012 taxes    Payments you receive as sick pay under the Railroad Unemployment Insurance Act are taxable and you must include them in your income. How to do 2012 taxes However, do not include them in your income if they are for an on-the-job injury. How to do 2012 taxes   If you received income because of a disability, see Disability Pensions , earlier. How to do 2012 taxes Federal Employees' Compensation Act (FECA). How to do 2012 taxes   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. How to do 2012 taxes However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. How to do 2012 taxes Report this income on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040-EZ. How to do 2012 taxes Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. How to do 2012 taxes    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. How to do 2012 taxes For a discussion of the taxability of these benefits, see Social security and equivalent railroad retirement benefits under Other Income, in Publication 525. How to do 2012 taxes    You can deduct the amount you spend to buy back sick leave for an earlier year to be eligible for nontaxable FECA benefits for that period. How to do 2012 taxes It is a miscellaneous deduction subject to the 2%-of-AGI limit on Schedule A (Form 1040). How to do 2012 taxes If you buy back sick leave in the same year you used it, the amount reduces your taxable sick leave pay. How to do 2012 taxes Do not deduct it separately. How to do 2012 taxes Other compensation. How to do 2012 taxes   Many other amounts you receive as compensation for sickness or injury are not taxable. How to do 2012 taxes These include the following amounts. How to do 2012 taxes Compensatory damages you receive for physical injury or physical sickness, whether paid in a lump sum or in periodic payments. How to do 2012 taxes Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. How to do 2012 taxes Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. How to do 2012 taxes Compensation you receive for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. How to do 2012 taxes This compensation must be based only on the injury and not on the period of your absence from work. How to do 2012 taxes These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. How to do 2012 taxes Reimbursement for medical care. How to do 2012 taxes    A reimbursement for medical care is generally not taxable. How to do 2012 taxes However, it may reduce your medical expense deduction. How to do 2012 taxes For more information, see chapter 21. How to do 2012 taxes Prev  Up  Next   Home   More Online Publications