Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Tax 1040x

H&r Free TaxFederal Tax Form 1040aFree Online Tax Filing 2012Hrblock Online1040ez Tax FileCan You File Your 2012 Taxes NowE-file State Taxes OnlyAmending 2010 TaxesCan I File 1040x Online1040ez Booklet1040ez 2010 Instructions1040 Ez FormFree State Tax E FilingWhen Last Day File Taxes 2012Can I Still File 2012 Taxes Online1040 Ez File Online FreeH&r Block TaxHow To File An Amended ReturnFiling Late Taxes2013 Federal Tax Form 1040xHow Do I Amend My 2012 Taxes2010 Tax Forms 1040ezFiling Back Taxes For FreeEfile 2012 Taxes2012 Form 1040 Schedule AIrs Gov Freefile ExtensionHow To File 2012 Taxes NowFile 2012 Taxes ElectronicallyH & R Block TaxesFiling 2010 Taxes Late Online FreeHow To File Amended Tax Return 2012Federal Tax Preparation1040 Ez IrsForm 1040nr Software1040x Site Irs Gov2010 1040ez Tax FormHow To File 2010 Taxes In 20121040ez OnlineCan I Efile 1040xIrs Form 1040ez

Tax 1040x

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

The Tax 1040x

Tax 1040x Publication 179 - Introductory Material Table of Contents Acontecimientos futuros Qué hay de nuevo Recordatorios Calendario Introduction Acontecimientos futuros Si desea obtener la información más reciente sobre todo acontecimiento relacionado con la Publicación 179, tal como legislación promulgada después de que ésta fue publicada, acceda a www. Tax 1040x irs. Tax 1040x gov/pub179. Tax 1040x Qué hay de nuevo Contribuciones al Seguro Social y al Medicare para el 2014. Tax 1040x  La tasa de contribución para el Seguro Social permanece en 6. Tax 1040x 2% tanto para el empleado como para el patrono. Tax 1040x La base límite de salario para el Seguro Social es $117,000. Tax 1040x La tasa de la contribución al Medicare es 1. Tax 1040x 45% tanto para la parte del empleado como la del patrono, la misma tasa que correspondió para el año 2013. Tax 1040x No hay límite sobre la cantidad de salarios sujetos a la contribución al Medicare. Tax 1040x Las contribuciones al Seguro Social y al Medicare se aplican a los salarios de empleados domésticos a quienes usted les paga $1,900 o más en efectivo o de una forma equivalente de remuneración. Tax 1040x Las contribuciones al Seguro Social y al Medicare se aplican a los trabajadores electorales a quienes se les paga $1,600 o más en efectivo o una remuneración equivalente. Tax 1040x Cambio de parte responsable. Tax 1040x  Comenzando el 1 de enero del 2014, toda entidad jurídica que tiene asignado un número patronal tiene que presentar el Formulario 8822-B Change of Address or Responsible Party—Business (Cambio de dirección o Parte Responsable— de negocios), en inglés, para informar si ha cambiado la parte responsable del negocio. Tax 1040x El Formulario 8822-B tiene que presentarse dentro de los 60 días que cambió la parte responsable. Tax 1040x Si el cambio de la parte responsable ocurrió antes del año 2014 y no se ha notificado el cambio anteriormente al IRS presente el Formulario 8822-B antes del 1 de marzo del 2014 e informe solamente el cambio más reciente. Tax 1040x Para la definición de “parte reponsable” vea las Instrucciones del Formulario SS-4PR Solicitud de Número de Identificación Patronal (EIN). Tax 1040x Matrimonio entre personas del mismo sexo. Tax 1040x . Tax 1040x  Para propósitos de las contribuciones federales, las personas del mismo sexo se consideran casados legalmente ​​si se casaron en un estado (o país extranjero) cuyas leyes autorizan el matrimonio de personas del mismo sexo, aunque el estado (o país extranjero) en el que ahora viven no reconozca el matrimonio entre personas del mismo sexo. Tax 1040x Para obtener más información, consulte el Revenue Ruling 2013-17 (Reglamento de Rentas Internas 2013–17) disponible en www. Tax 1040x irs. Tax 1040x gov/irb/2013-38_IRB/ar07. Tax 1040x html. Tax 1040x El Notice 2013-61 (Aviso 2013-61) establece los procedimientos administrativos especiales para los patronos hacer reclamaciones para el reembolso o los ajustes de los pagos en exceso al Seguro Social y al Medicare con respecto a ciertos beneficios entre cónyuges del mismo sexo antes de la expiración del periodo de prescripción. Tax 1040x El Aviso 2013-61 que aparece en la página 432 del Internal Revenue Bulletin (Boletín de Rentas Internas 2013-44), en inglés, está disponible en www. Tax 1040x irs. Tax 1040x gov/irb/2013-44_IRB/ar10. Tax 1040x html. Tax 1040x Recordatorios Retención de la Contribución Adicional al Medicare. Tax 1040x  Además de la retención de la contribución Medicare de 1. Tax 1040x 45%, usted tiene que retener la Contribución Adicional al Medicare de 0. Tax 1040x 9% de los salarios en exceso de $200,000 que le paga a un empleado en un año natural. Tax 1040x Se le requiere a usted que comience a retener la Contribución Adicional al Medicare en el período de paga en el cual usted le paga salarios en exceso de $200,000 a un empleado. Tax 1040x Continúe reteniendo esta Contribución Adicional al Medicare en todo período de paga hasta que finalice el año natural. Tax 1040x La Contribución Adicional al Medicare sólo se le impone al empleado. Tax 1040x No hay una porción correspondiente al patrono de la Contribución Adicional al Medicare. Tax 1040x Todos los salarios que están sujetos a la contribución Medicare, están sujetos a la retención de la Contribución Adicional al Medicare si éstos exceden el límite de $200,000. Tax 1040x Si desea más información sobre cuáles salarios están sujetos a la Contribución Adicional al Medicare, vea la tabla Reglas especiales para varias clases de servicios y de pagos , en el apartado 15 de esta publicación. Tax 1040x Para más información, sobre la Contribución Adicional al Medicare visite IRS. Tax 1040x gov y escriba “ Additional Medicare Tax ” en inglés, en la casilla Search (Buscar). Tax 1040x La información está disponible en inglés. Tax 1040x El crédito contributivo por oportunidad de trabajo para organizaciones calificadas exentas de contribución que contratan a veteranos calificados ha sido extendido. Tax 1040x . Tax 1040x  El crédito contributivo por oportunidad de trabajo está disponible para veteranos desempleados que reúnan los requisitos que comiencen a trabajar antes del 1 de enero de 2014. Tax 1040x Anteriormente, el crédito estaba disponible para veteranos desempleados quienes comenzaron a trabajar a partir del 22 de noviembre de 2011, y antes del 1 de enero de 2013. Tax 1040x Las organizaciones exentas de contribuciones calificadas que contratan veteranos desempleados que reúnan los requisitos pueden reclamar el crédito contributivo por oportunidad de trabajo contra su contribución sobre la nómina utilizando el Formulario 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans (Crédito por oportunidad de trabajo para organizaciones exentas de contribuciones calificadas que contratan a veteranos calificados), en inglés. Tax 1040x Si desea más información, visite IRS. Tax 1040x gov y escriba “work opportunity tax credit” (crédito contributivo por oportunidad de trabajo), en inglés, en la casilla Search (Buscar). Tax 1040x La información está disponible en inglés. Tax 1040x Externalización de las obligaciones de la nómina. Tax 1040x . Tax 1040x  Los patronos son responsables de asegurar que las planillas de contribución se radiquen y que los depósitos y pagos se hagan, aun si el patrono contrata los servicios de un tercero para hacerlo. Tax 1040x El patrono sigue siendo el responsable aun si el tercero no cumple con la acción requerida. Tax 1040x Si opta por externalizar cualquier parte de su nómina y las obligaciones relacionadas con las contribuciones (es decir, retención, declarar y pagar las contribuciones al Seguro Social, al Medicare y FUTA) a un tercero pagador, tal como un proveedor de servicios de nómina o agente de reportación, visite el sitio web IRS. Tax 1040x gov y escriba “outsourcing payroll duties” (externalización de las obligaciones de nómina) en la casilla “Search” (Buscar), para información útil sobre este tema. Tax 1040x Dicha información está disponible en inglés. Tax 1040x El crédito de asistencia para las primas COBRA. Tax 1040x  El crédito por asistencia en los pagos de las primas COBRA se aplica a las primas pagadas por un máximo de 15 meses para los empleados que fueron despedidos entre el 1 de septiembre de 2008 y el 31 de mayo de 2010. Tax 1040x Vea COBRA premium assistance credit (Crédito de asistencia para las primas COBRA) en inglés, en la Publicación 15. Tax 1040x Vea la sección Crédito de asistencia para las primas de COBRA para detalles sobre el crédito. Tax 1040x El Formulario 944-PR está descontinuado. Tax 1040x  El Formulario 944-PR, Planilla para la Declaración Federal ANUAL del Patrono, ya no estará disponible después de 2011. Tax 1040x A partir del año contributivo 2012, los patronos que anteriormente presentaban el Formulario 944-PR presentarán anualmente el Formulario 944(SP), Declaración Federal ANUAL de Impuestos del Patrono o Empleador. Tax 1040x Por otra parte, los contribuyentes pueden solicitar que se les permita la radicación trimestral con el Formulario 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono, en vez del Formulario 944(SP) (o el Formulario 944, en inglés). Tax 1040x Para más información, consulte las Instrucciones para el Formulario 944(SP). Tax 1040x Para solicitar que se le permita radicar los formularios trimestrales 941-PR para informar sus contribuciones al Seguro Social y Medicare del año 2014, debe llamar al IRS al 1-800-829-4933 o al 267-941-1000 (llamada con cargos) a más tardar el 1 de abril de 2014. Tax 1040x O, puede enviar una solicitud por escrito (el matasellos debe estar fechado en o antes del 15 de marzo de 2014). Tax 1040x Después de comunicarse con el IRS, el IRS le enviará una notificación por escrito indicándole que su requisito de presentación ha cambiado. Tax 1040x Si usted no recibe este aviso, debe presentar el Formulario 944(SP) para el año natural 2014. Tax 1040x Para más información, consulte ¿Qué ocurre si quiere presentar Formularios 941, 941-SS o 941-PR en lugar del Formulario 944 (en inglés) o 944(SP)?, en las Instrucciones para el Formulario 944(SP) de 2013. Tax 1040x Usted tiene que recibir un aviso escrito del IRS para poder radicar el Formulario 944(SP). Tax 1040x  Si usted ha estado radicando los Formularios 941-PR y cree que sus contribuciones sobre la nómina para el año natural serán $1,000 o menos y desea radicar el Formulario 944(SP) (o el Formulario 944, en inglés) en vez de los Formularios 941-PR, tiene que comunicarse con el IRS para solicitar el permiso para poder radicar el Formulario 944(SP). Tax 1040x Antes de que pueda radicar este formulario, tiene que recibir un aviso escrito de parte del IRS que le otorgue el permiso para poder radicar el Formulario 944(SP) en vez de los Formularios 941-PR. Tax 1040x Si desea más información sobre cómo solicitar el permiso para radicar el Formulario 944(SP) o el Formulario 944, en vez de los Formularios 941-PR, vea el tema titulado ¿Qué ocurre si quiere presentar Formularios 941, 941-SS o 941-PR en lugar del Formulario 944 (en inglés) o 944(SP)?, en las Instrucciones para el Formulario 944(SP). Tax 1040x Cambio de dirección. Tax 1040x . Tax 1040x  Utilice el Formulario 8822-B, Change of Address or Responsible Party-Business (Cambio de dirección— o Parte Responsable— de negocios), en inglés, para notificarle al IRS sobre un cambio a su dirección. Tax 1040x No envíe el Formulario 8822-B junto con su planilla de contribuciones sobre la nómina. Tax 1040x Los depósitos de las contribuciones federales tienen que llevarse a cabo mediante transferencia electrónica de fondos. Tax 1040x  Usted tiene que depositar toda contribución mediante transferencia electrónica de fondos. Tax 1040x Generalmente, la transferencia electrónica de fondos se lleva a cabo usando el Electronic Federal Tax Payment System (Sistema electrónico de pagos de la contribución federal o EFTPS, por sus siglas en inglés). Tax 1040x Si no desea utilizar el EFTPS, puede hacer los arreglos para que su preparador, institución financiera, servicio de nómina u otro tercero de su confianza efectúe depósitos electrónicos en nombre suyo. Tax 1040x El EFTPS es un servicio gratuito provisto por el Departamento del Tesoro. Tax 1040x Los servicios provistos por su preparador profesional, institución financiera, servicio de nómina u otro tercero podría conllevar en un cargo. Tax 1040x Si desea más información sobre cómo efectuar depósitos de la contribución federal, vea Cómo hacer los depósitos , en el apartado 11. Tax 1040x Si desea más información sobre EFTPS o si desea inscribirse, visite el sitio web de EFTPS en www. Tax 1040x eftps. Tax 1040x gov o llame al 1-800-244-4829 (1-800-733-4829, si es usuario de equipo TDD). Tax 1040x Puede encontrar información adicional sobre EFTPS en la Publicación 966 (SP), Sistema de Pago Electrónico del Impuesto Federal: La Manera Segura de pagar los Impuestos Federales. Tax 1040x Radicación y pago por medios electrónicos. Tax 1040x  El uso de las opciones electrónicas puede hacer más fácil la radicación de una planilla y el pago de la contribución federal. Tax 1040x Utilice el EFTPS para efectuar depósitos o pagar la contribución en su totalidad, independientemente de si utiliza a un preparador o si prepara sus propias planillas. Tax 1040x Puede usar el sistema electrónico e-file del IRS para radicar ciertas planillas. Tax 1040x Si hay una suma por pagar en la planilla, puede radicarla con el sistema e-file y pagar electrónicamente (e-pay) en un solo paso al autorizar un retiro electrónico de fondos de su cuenta bancaria mientras está radicando electrónicamente. Tax 1040x No utilice el retiro electrónico de fondos para pagar contribuciones que se requiere que se depositen. Tax 1040x Visite el sitio web del IRS www. Tax 1040x irs. Tax 1040x gov/efile , en inglés, para más información sobre cómo radicar una planilla electrónicamente. Tax 1040x Si desea más información sobre cómo pagar sus contribuciones utilizando el retiro electrónico de fondos, visite la página del IRS en www. Tax 1040x irs. Tax 1040x gov/e-pay. Tax 1040x Se le podría cobrar un cargo por radicar electrónicamente. Tax 1040x Para EFTPS, visite www. Tax 1040x eftps. Tax 1040x gov o llame a la línea de servicio al cliente de EFTPS al 1-800-244-4829 o 1-800-733-4829, si es usuario de equipo TDD. Tax 1040x Para la radicación electrónica de los Formularios 499R-2/W-2PR y 499R-2/W-2cPR ante la Administración del Seguro Social, visite la página web www. Tax 1040x hacienda. Tax 1040x gobierno. Tax 1040x pr. Tax 1040x Si usted está radicando su planilla de contribuciones o si está pagando sus contribuciones federales electrónicamente, se necesita que provea un EIN válido. Tax 1040x Si no provee un EIN válido, la planilla o pago no se tramitará. Tax 1040x Esto podría resultarle en multas y demoras en la tramitación de su planilla o pago. Tax 1040x Pagos con tarjeta de crédito o débito. Tax 1040x  Para mayor información sobre cómo se pagan las contribuciones con tarjetas de crédito o débito, visite el sitio web del IRS, www. Tax 1040x irs. Tax 1040x gov/e-pay. Tax 1040x No obstante, no use una tarjeta de crédito o débito para pagar contribuciones que deben ser depositadas. Tax 1040x Contratación de empleados nuevos. Tax 1040x  Mantenga un registro con el nombre y número de cada uno de sus empleados nuevos según aparece en su tarjeta de Seguro Social. Tax 1040x Todo empleado que no tenga una tarjeta de Seguro Social deberá solicitarla usando el Formulario SS-5-SP, Solicitud para una Tarjeta de Seguro Social, en español. Tax 1040x Vea el apartado 4 . Tax 1040x Cómo informar las discrepancias entre los Formularios 941-PR (o 944(SP)) y los Formularios 499R-2/W-2PR. Tax 1040x . Tax 1040x  Utilice el Anexo D (Formulario 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations (Informe de discrepancias causadas por adquisiciones, fusiones o consolidaciones), en inglés. Tax 1040x En este anexo se explicarán las discrepancias en los salarios, contribuciones y pagos que han surgido entre los Formularios 941-PR (o el Formulario 944(SP)) debido a adquisiciones, fusiones o consolidaciones. Tax 1040x Si desea más información, vea las Instrucciones para el Anexo D (Formulario 941), disponibles en inglés. Tax 1040x Solicitud de un número de identificación patronal en línea (EIN). Tax 1040x  Usted puede solicitar un número de identificación patronal (EIN, por sus siglas en inglés) en línea al visitar el sitio web IRS. Tax 1040x gov, en inglés, y pulsar sobre el enlace “Apply for an EIN Online” (Solicitud de un número de identificación patronal en línea (EIN)), que se encuentra bajo Tools (Herramientas). Tax 1040x La información está provista en inglés. Tax 1040x Pagos rechazados. Tax 1040x  Cualquier forma de pago que ha sido rechazado y es devuelto por la institución financiera está sujeto a una penalidad. Tax 1040x Esta penalidad es $25 o el 2% de la cantidad del pago, lo mayor entre ambos. Tax 1040x Sin embargo, la penalidad en pagos rechazados de $24. Tax 1040x 99 o menos es igual a la cantidad del pago. Tax 1040x Por ejemplo, un pago por $18 que fue rechazado, la penalidad es $18 (la cantidad rechazada). Tax 1040x Remuneración pagada a trabajadores agrícolas con visa H-2A. Tax 1040x  La remuneración que le paga a trabajadores agrícolas por trabajo realizado con una visa H-2A no está sujeta a las contribuciones al Seguro Social, al Medicare o la Contribución Adicional al Medicare. Tax 1040x Por lo tanto, no debe informarla como remuneración sujeta a dichas contribuciones. Tax 1040x Verifique con las agencias del gobierno de Puerto Rico para verificar si tiene algún requisito estatal. Tax 1040x Servicios de entrega privados. Tax 1040x  Puede usar ciertos servicios de entrega privados designados por el IRS para enviar sus planillas o pagos de la contribución. Tax 1040x La lista incluye sólo los servicios siguientes: DHL Express (DHL): DHL Same Day Service. Tax 1040x Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority y FedEx International First. Tax 1040x United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Tax 1040x M. Tax 1040x , UPS Worldwide Express Plus y UPS Worldwide Express. Tax 1040x Si desea obtener la dirección a dónde enviar la planilla o pago si utilizara un servicio de entrega privado, acceda a IRS. Tax 1040x gov y escriba “private delivery service” en la casilla Search (Buscar). Tax 1040x La información está disponible en inglés. Tax 1040x El proveedor de servicio de entrega privado que escoja puede informarle de cómo se obtiene verificación por escrito de la fecha de envío. Tax 1040x Los servicios de entrega privados no pueden entregar artículos de correo a los apartados postales. Tax 1040x Usted tiene que utilizar el Servicio Postal de los EE. Tax 1040x UU. Tax 1040x para enviar todo artículo de correo a una dirección que incluya un apartado postal del IRS. Tax 1040x Mantenimiento de récords. Tax 1040x  Conserve todos los récords de sus contribuciones sobre la nómina durante 4 años. Tax 1040x Los mismos deben estar disponibles para ser inspeccionados por funcionarios del IRS. Tax 1040x No se ha establecido ninguna manera especial de llevar estos récords. Tax 1040x Sin embargo, los mismos deberán incluir su EIN, las cantidades y fechas de todos los pagos de salarios (incluyendo beneficios marginales) y las propinas declaradas, así como los nombres, direcciones y ocupaciones de todos los empleados que reciban tales pagos, las fechas de empleo, además de los números de Seguro Social y los duplicados de las planillas de contribución radicadas anteriormente, incluyendo las fechas y cantidades de depósitos hechos según se explica en el apartado 11 . Tax 1040x Todo patrono agrícola tiene que llevar un registro en el cual consten el nombre, dirección permanente y el EIN de cada líder de cuadrilla. Tax 1040x Vea Líder de cuadrilla, en el apartado 1 . Tax 1040x Comentarios y sugerencias. Tax 1040x  Le agradecemos sus comentarios sobre esta publicación y sugerencias para ediciones futuras de la misma. Tax 1040x Puede escribirnos a la siguiente dirección: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Tax 1040x NW, IR-6526 Washington, DC 20224 Nosotros contestamos muchas cartas a través de llamadas telefónicas. Tax 1040x Por lo tanto, sería de ayuda si en su correspondencia incluye su número telefónico, junto con el código de área telefónico, en donde nos podamos comunicar con usted durante el día. Tax 1040x También, puede enviarnos comentarios a través de la página www. Tax 1040x irs. Tax 1040x gov/formspubs. Tax 1040x Pulse sobre el enlace titulado More Information (Más información) y luego pulse sobre el enlace titulado “Give us Feedback” (Proveer comentarios), en inglés. Tax 1040x Aunque no podemos contestar a cada comentario que recibimos, sí agradecemos sus sugerencias y las consideraremos al revisar nuestros productos contributivos. Tax 1040x Fotografías de niños desaparecidos. Tax 1040x  El Servicio de Rentas Internas siente orgullo en colaborar con el National Center for Missing and Exploited Children (Centro Nacional de Niños Desaparecidos y Explotados). Tax 1040x Las fotografías de niños desaparecidos que han sido seleccionadas por el Centro pueden aparecer en esta publicación en páginas que de otra manera estarían en blanco. Tax 1040x Usted puede ayudar a que estos niños regresen a sus hogares si al mirar sus fotografías los puede identificar y entonces llama libre de cargos al 1-800-THE-LOST (1-800-843-5678). Tax 1040x Calendario   Si alguna fecha indicada a continuación es un sábado, domingo o día festivo oficial, la fecha de vencimiento para radicar la planilla, presentar un formulario o depositar su contribución es el próximo día laborable. Tax 1040x Un día festivo oficial en Puerto Rico o en un estado posterga una fecha de vencimiento únicamente si la oficina del IRS donde usted tiene que radicar su planilla de contribución está localizada en tal estado o territorio. Tax 1040x Para propósitos de la fecha de vencimiento, se cumplen los requisitos para radicar la planilla si la misma se encuentra en un sobre que esté dirigido apropiadamente, que tenga suficiente franqueo y que el matasellos esté fechado a más tardar en la fecha de vencimiento. Tax 1040x Si se envía mediante un servicio de entrega privado aprobado por el IRS, la misma se tiene que enviar a más tardar en la fecha de vencimiento. Tax 1040x Vea el tema Servicios de entrega privados en Recordatorios. Tax 1040x A continuación encontrará una lista de las fechas y responsabilidades más importantes para usted. Tax 1040x Además, vea la Publicación 509, Tax Calendars (Calendarios contributivos), en inglés, para más información. Tax 1040x Para el 31 de enero:  Entregue a los empleados sus comprobantes de retención. Tax 1040x Entréguele a cada empleado un Formulario 499R-2/W-2PR, Comprobante de Retención, debidamente completado. Tax 1040x Vea el apartado 13 . Tax 1040x Radique el Formulario 943-PR, Planilla para la Declaración ANUAL de la Contribución Federal del Patrono de Empleados Agrícolas, ante el IRS. Tax 1040x Si depositó a tiempo la contribución correspondiente al Formulario 943-PR en su totalidad, tendrá hasta 10 días naturales adicionales a partir de la fecha de vencimiento indicada anteriormente para radicar su Formulario 943-PR. Tax 1040x Radique el Formulario 940-PR, Planilla para la Declaración Federal ANUAL del Patrono de la Contribución Federal para el Desempleo (FUTA), ante el IRS. Tax 1040x Pague o deposite todo saldo adeudado (si es más de $500). Tax 1040x Si depositó el total de las contribuciones adeudadas a su debido tiempo, tendrá hasta 10 días naturales adicionales a partir de la fecha de vencimiento indicada anteriormente para radicar el Formulario 940-PR. Tax 1040x Si antes radicaba el Formulario 944-PR, radique ahora el Formulario 944(SP), Declaración Federal ANUAL de Impuestos del Patrono o Empleador (o el Formulario 944, en inglés), ante el IRS si el mismo le notificó que debe radicar el Formulario 944(SP) en lugar de los Formularios 941-PR trimestrales. Tax 1040x Si depositó la cantidad total de contribuciones conforme a la fecha de vencimiento de éstas, tendrá 10 días naturales adicionales a partir de la fecha de vencimiento indicada anteriormente para radicar el Formulario 944(SP). Tax 1040x Para el 28 de febrero. Tax 1040x   Radique los comprobantes de retención ante la Administración del Seguro Social (SSA, por sus siglas en inglés). Tax 1040x Radique el Original del Formulario 499R-2/W-2PR, junto con el Formulario W-3PR, Informe de Comprobantes de Retención, ante la SSA. Tax 1040x Para las planillas radicadas por vías electrónicas, vea el siguiente tema. Tax 1040x Para el 31 de marzo. Tax 1040x  Radique el Formulario 499R-2/W-2PR por vías electrónicas (y no por medios magnéticos o en papel) ante la SSA. Tax 1040x Sin embargo, puede transmitir un archivo electrónico por medio de Internet. Tax 1040x Vea Employer W-2 Filing Instructions & Information (Instrucciones e información para patronos sobre la radicación de Formularios W-2), en inglés, en el sitio web www. Tax 1040x socialsecurity. Tax 1040x gov/employer de la SSA para más información. Tax 1040x Para el 30 de abril, 31 de julio, 31 de octubre y 31 de enero. Tax 1040x  Radique el Formulario 941-PR trimestralmente ante el IRS. Tax 1040x Si depositó el total de las contribuciones adeudadas a su debido tiempo, tendrá hasta 10 días naturales adicionales a partir de las fechas de vencimiento indicadas anteriormente para radicar el Formulario 941-PR. Tax 1040x No radique los Formularios 941-PR para dichos trimestres si el IRS le ha informado que debe radicar el Formulario 944(SP). Tax 1040x Deposite la contribución FUTA para el trimestre (incluyendo toda cantidad trasladada de un trimestre anterior) si la cantidad adeudada es más de $500. Tax 1040x Si es de $500 o menos, traspásela al trimestre siguiente. Tax 1040x Vea el apartado 10 , para más información. Tax 1040x Introduction Esta publicación deberá ser usada por patronos cuyo negocio principal está ubicado en Puerto Rico o que tienen empleados cuyos ingresos están sujetos a retención de la contribución estatal sobre los ingresos de Puerto Rico. Tax 1040x Generalmente, tanto los patronos como los empleados en Puerto Rico están sujetos a las contribuciones al Seguro Social y al seguro Medicare, conforme a la Federal Insurance Contributions Act (Ley de Contribuciones Federales al Seguro Social o FICA, por sus siglas en inglés). Tax 1040x Esta publicación resume las responsabilidades que tiene el patrono en cuanto al cobro, pago y declaración de dichas contribuciones. Tax 1040x Dondequiera que en esta publicación se use el término “Estados Unidos”, el mismo incluye a Puerto Rico, las Islas Vírgenes y los territorios autónomos y territorios no autónomos de los Estados Unidos. Tax 1040x Las secciones a las cuales se hace referencia en esta publicación corresponden al Código Federal de Rentas Internas, a menos que se indique lo contrario. Tax 1040x Esta publicación también proporciona a dichos patronos un resumen de sus responsabilidades en relación con las contribuciones bajo la Federal Unemployment Tax Act (Ley Federal de Contribución para el Desempleo o FUTA, por sus siglas en inglés). Tax 1040x Vea los apartados 9 y 10 . Tax 1040x Excepto por lo indicado en las tablas que se hallan en el apartado 15 , esas contribuciones corresponden a todo patrono que pague salarios tributables a empleados o que tenga empleados que declaran propinas. Tax 1040x En esta publicación no se incluye información relacionada con las contribuciones del trabajo por cuenta propia (Seguro Social y Medicare para personas que trabajan por cuenta propia). Tax 1040x Si necesita información sobre estas contribuciones, comuníquese con la oficina del IRS en Guaynabo o vea la Publicación 570, Tax Guide for Individuals With Income From U. Tax 1040x S. Tax 1040x Possessions (Guía tributaria para individuos con ingresos de fuentes en los territorios estadounidenses), en inglés. Tax 1040x Contribuciones sobre los ingresos de Puerto Rico. Tax 1040x   Esta publicación no incluye información relacionada con la retención de contribuciones federales sobre los ingresos. Tax 1040x Ésta sólo trata las contribuciones sobre la nómina para patronos que están en Puerto Rico. Tax 1040x   Si desea obtener información acerca de la contribución sobre ingresos de Puerto Rico, consulte con el Departamento de Hacienda de Puerto Rico. Tax 1040x Las personas que trabajan amparadas bajo el programa del Seguro Social elijen un plan de protección para sus familias y para sí mismas. Tax 1040x Entidades no consideradas como separadas de sus dueños y compañías subsidarias calificadas conforme al subcapítulo S (QSubs). Tax 1040x   Las entidades no consideradas como separadas de sus dueños (disregarded entities) que tienen un solo dueño y que cumplen los requisitos y las compañías subsidiarias calificadas conforme al subcapítulo S (QSubs, por sus siglas en inglés), son tratadas como si fueran entidades separadas de su dueño para propósitos de las contribuciones sobre la nómina. Tax 1040x Las entidades no consideradas como separadas de sus dueños que tienen un solo dueño y que cumplen los requisitos y no han optado por ser tratadas como corporación, tiene que declarar y pagar la contribución sobre la nómina correspondiente a los salarios de los empleados utilizando el nombre y EIN de dicha entidad. Tax 1040x Vea la sección 1. Tax 1040x 1361-4(a)(7) y la sección 301. Tax 1040x 7701-2(c)(2)(iv) de los Reglamentos, en inglés. Tax 1040x Crédito de asistencia para las primas de COBRA. Tax 1040x   La Consolidated Omnibus Budget Reconciliation Act of 1985 (Ley de Conciliación de Asignaciones del Presupuesto de 1985 o COBRA, por sus siglas en inglés) les provee a ciertos ex empleados, jubilados, cónyuges, ex cónyuges e hijos dependientes el derecho a recibir temporalmente cobertura de salud a tarifas especiales para grupos. Tax 1040x La ley COBRA, por lo general, cubre los planes de salud que incluyen a múltiples patronos y planes de salud que son mantenidos por patronos de la empresa privada (que no son iglesias) que tengan 20 o más empleados a tiempo completo o parcial. Tax 1040x A dichos planes les corresponden ciertos requisitos conforme a la Employee Retirement Income Security Act of 1974 (Ley para la Protección de los Ingresos de Jubilación para los Empleados de 1974 o ERISA, por sus siglas en inglés). Tax 1040x Conforme a la Public Health Service Act (Ley sobre el Servicio de Salud Pública), los requisitos del programa COBRA también le corresponden a los planes de salud que cubren a los empleados gubernamentales estatales y municipales. Tax 1040x Requisitos similares corresponden conforme al Federal Employees Health Benefits Program (Programa de Seguro Médico para los Empleados Federales (FEHBP, por sus siglas en inglés)) y ciertas leyes estatales. Tax 1040x Para tratar a la asistencia (o subsidio) para las primas de COBRA que se explican a continuación, a todos estos requisitos se les refiere como “requisitos de COBRA ”. Tax 1040x   La ley American Recovery and Reinvestment Act of 2009 (Ley de Recuperación y Reinversión Económica Estadounidense de 2009 o ARRA, por sus siglas en inglés) permite un crédito contra las contribuciones sobre la paga (dichas contribuciones se denominan “contribuciones sobre la nómina” en esta publicación), para proveer asistencia para las primas de COBRA a individuos que cumplen con los requisitos para recibir dicha asistencia. Tax 1040x Para los períodos de continuidad de cobertura COBRA que comienzan después del 16 de febrero de 2009, un plan de salud colectivo tiene que tratar a un individuo que reúne los requisitos para la asistencia como si hubiese pagado la prima de COBRA para la continuidad de cobertura requerida si el individuo optó por la cobertura COBRA y paga el 35% de la cantidad de la prima. Tax 1040x   Un individuo que reúne los requisitos para la asistencia es un beneficiario calificado que cumple con los requisitos para la continuidad de la cobertura COBRA durante el período que comienza el 1 de septiembre de 2008, y que termina el 31 de mayo de 2010, debido al cese involuntario de empleo de un empleado amparado por la cobertura durante el período y que opta por la continuidad de la cobertura de COBRA. Tax 1040x La asistencia para mantener la cobertura puede durar hasta 15 meses. Tax 1040x   Los empleados que fueron despedidos durante el período que comienza el 1 septiembre de 2008 y que termina el 31 de mayo de 2010, y recibieron ofertas de indemnización que retrasaron el inicio de la continuación de cobertura COBRA, pueden ser elegibles para recibir asistencia con las primas para la continuación de cobertura COBRA. Tax 1040x Para más información, vea Notice 2009-27 (Avisio 2009-27) que aparece en la página 838 del Internal Revenue Bulletin (Boletín de Rentas Internas 2009-16), en inglés, disponible en www. Tax 1040x irs. Tax 1040x gov/irb/2009-16_irb/ar09. Tax 1040x html. Tax 1040x   Los administradores de planes de salud colectivos (u otras entidades) que proveen o administran la continuación de la cobertura COBRA, tienen que notificarle a los individuos que cumplen con los requisitos para la asistencia de las primas de COBRA de que tienen derecho a dicha cobertura. Tax 1040x   El 65% de la prima que no es pagada por las personas que reúnen los requisitos para la asistencia se le reembolsa a los patronos que mantienen el plan de salud colectivo. Tax 1040x El reembolso se hace por medio de un crédito que se le aplica a las obligaciones de las contribuciones sobre la nómina del patrono. Tax 1040x Para obtener información sobre cómo reclamar el crédito, vea las Instrucciones para el Formulario 941-PR o las Instrucciones para el Formulario 944(SP). Tax 1040x El crédito se le trata como un depósito hecho en el primer día del período de la planilla (trimestre o año). Tax 1040x En el caso de un plan que cubre a múltiples patronos, el crédito es reclamado por el plan, en vez del patrono. Tax 1040x En el caso de un plan asegurado que está sujeto a los requisitos estatales para la continuidad de cobertura, el crédito es reclamado por la compañía de seguros, en vez del patrono. Tax 1040x   Todo individuo o entidad que reclama el crédito por los pagos para la asistencia COBRA tiene que conservar la siguiente información para comprobar su reclamación: Información sobre el recibo, incluyendo fechas y cantidades, de la parte del 35% de la prima que le corresponde a la persona que reúne los requisitos para la asistencia. Tax 1040x En el caso de un plan de seguro, una copia de la factura u otro documento comprobante emitido por la compañía aseguradora y prueba del pago a tiempo de la prima completa hecho a la compañía aseguradora que se requiere conforme los requisitos para la cobertura COBRA. Tax 1040x En el caso de un plan autoasegurado, documentos que comprueban la cantidad de la prima y la cobertura provista a las personas que reúnen los requisitos para la asistencia. Tax 1040x Atestiguación del cese involuntario, incluyendo la fecha de cesación (despido) involuntario para cada empleado amparado por la cobertura cuyo despido involuntario es la base para el derecho al subsidio. Tax 1040x Prueba de que cada persona reúne los requisitos para la asistencia de la cobertura COBRA y de que ha optado por dicha cobertura. Tax 1040x Un registro que tenga los números de Seguro Social de todos los empleados con cobertura, la cantidad del subsidio reembolsado con respecto a cada empleado con cobertura y que indique si el subsidio se debe a una persona o a dos o más personas. Tax 1040x   Para más información, visite IRS. Tax 1040x gov y escriba “COBRA” en la casilla Search (Buscar). Tax 1040x La información está disponible en inglés. Tax 1040x Ayuda para radicar documentos ante la SSA. Tax 1040x   Si necesita ayuda en español para radicar sus formularios contributivos ante la SSA (esto incluye la solicitud de un número de identificación personal (PIN, por sus siglas en inglés)), llame a la SSA al 1-800-772-6270. Tax 1040x Elegibilidad para empleo. Tax 1040x   Usted tiene que verificar que cada empleado nuevo tenga derecho a trabajar legalmente en los Estados Unidos. Tax 1040x Esto incluye completar el Formulario I-9, Employment Eligibility Verification (Verificación de elegibilidad para empleo), disponible en español, del Servicio de Ciudadanía e Inmigración de Estados Unidos (USCIS, por sus siglas en inglés). Tax 1040x Puede obtener el formulario llamando al USCIS al 1-800-870-3676. Tax 1040x Si desea más información, comuníquese con el USCIS al 1-800-375-5283 o visite la página web de USCIS en www. Tax 1040x uscis. Tax 1040x gov/espanol. Tax 1040x Prev  Up  Next   Home   More Online Publications