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State Income Tax Forms 2013

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State Income Tax Forms 2013

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

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