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Tax Amendment

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Tax Amendment

Tax amendment 10. Tax amendment   Planes de Jubilación, Pensiones y Anualidades Table of Contents Qué Hay de Nuevo Recordatorio IntroductionLa Regla General. Tax amendment Arreglos de ahorros para la jubilación (IRA, por sus siglas en inglés). Tax amendment Beneficios de la jubilación del gobierno federal. Tax amendment Useful Items - You may want to see: Información GeneralReinversiones en arreglos de ahorros para la jubilación designados Roth IRA dentro del mismo plan. Tax amendment Cómo Hacer la Declaración Costo (Inversión en el Contrato) Tributación de Pagos PeriódicosExclusión limitada al costo. Tax amendment Exclusión no limitada al costo. Tax amendment Método Simplificado Tributación de Pagos no PeriódicosDistribuciones de Suma Global ReinversionesReinversiones en arreglos de ahorros para la jubilación designados Roth IRA dentro del mismo plan. Tax amendment Impuestos Adicionales EspecialesImpuesto sobre Distribuciones Prematuras Impuestos sobre Acumulación en Exceso Sobrevivientes y Beneficiarios Qué Hay de Nuevo Para propósitos del impuesto sobre los ingresos netos de inversión (NIIT, por sus siglas en inglés), los ingresos netos de inversión no incluyen distribuciones de un plan de jubilación calificado (por ejemplo, planes conforme a la sección 401(a), 403(a), 403(b), 408, 408A o 457(b) del Código de Impuestos Internos). Tax amendment Sin embargo, estas distribuciones sí se toman en cuenta al calcular el límite del ingreso bruto ajustado modificado. Tax amendment Las distribuciones de un plan de jubilación no calificado se incluyen en los ingresos netos de inversión. Tax amendment Vea el Formulario 8960, Net Investment Income Tax – Individuals, Estates, and Trusts (Impuesto sobre los ingresos netos de inversión –personas físicas, patrimonios y fideicomisos), además de sus instrucciones, disponibles en inglés, para más información. Tax amendment Recordatorio  Comenzando en el año 2013, La American Taxpayer Relief Act (Ley de Alivio para el Contribuyente Estadounidense) de 2012 ha ampliado las reglas para las reinversiones de planes de jubilación a opciones Roth. Tax amendment Conforme a las nuevas disposiciones, más contribuyentes pueden tomar ventaja de esta opción. Tax amendment Si desea más información, vea la sección titulada Arreglos de ahorros para la jubilación designados Roth , tema que se explica más adelante. Tax amendment Introduction Este capítulo explica el trato tributario de las distribuciones que usted reciba de: Una pensión o anualidad para empleados de un plan calificado, Una jubilación por incapacidad y Una anualidad comercial comprada. Tax amendment Lo que no abarca este capítulo. Tax amendment   Este capítulo no abarca los siguientes temas: La Regla General. Tax amendment   Éste es el método que se utiliza generalmente para determinar el trato tributario de ingresos de pensiones y anualidades de planes no calificados (incluidas las anualidades comerciales). Tax amendment Para un plan calificado, generalmente no se puede usar la Regla General a menos que la fecha de inicio de su anualidad sea anterior al 19 de noviembre de 1996. Tax amendment Para más información sobre la Regla General, vea la Publicación 939, General Rule for Pensions and Annuities (Regla general para pensiones y anualidades), en inglés. Tax amendment Arreglos de ahorros para la jubilación (IRA, por sus siglas en inglés). Tax amendment   La información acerca del trato tributario de las cantidades que reciba de un arreglo IRA se encuentra en el capítulo 17 . Tax amendment Beneficios de la jubilación del gobierno federal. Tax amendment    Si es jubilado del gobierno federal (jubilación regular, por fases o por incapacidad), consulte la Publicación 721, Tax Guide to U. Tax amendment S. Tax amendment Civil Service Retirement Benefits (Guía tributaria para beneficios de jubilación del gobierno federal de los Estados Unidos), en inglés. Tax amendment La Publicación 721 también contiene la información que necesita si es sobreviviente o beneficiario de un empleado o jubilado federal que haya fallecido. Tax amendment Useful Items - You may want to see: Publicación 575 Pension and Annuity Income (Ingreso de pensiones y anualidades), en inglés 721 Tax Guide to U. Tax amendment S. Tax amendment Civil Service Retirement Benefits (Guía tributaria para beneficios de jubilación del gobierno federal de los Estados Unidos), en inglés 939 General Rule for Pensions and Annuities (Regla general para pensiones y anualidades), en inglés Formulario (e Instrucciones) W-4P Withholding Certificate for Pension or Annuity Payments (Certificado de retenciones para pagos de pensiones o anualidades), en inglés 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Tax amendment (Distribuciones de pensiones, anualidades, planes de jubilación o de participación en las ganancias, arreglos de ahorros para la jubilación, contratos de seguros, etc. Tax amendment ), en inglés 4972 Tax on Lump-Sum Distributions (Impuesto sobre distribuciones de suma global), en inglés 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts (Impuestos adicionales sobre planes calificados (incluidos los arreglos de ahorros para la jubilación) y otras cuentas con beneficios tributarios), en inglés Información General Arreglos de ahorros para la jubilación designados Roth. Tax amendment   Un arreglo de ahorros para la jubilación designado Roth es una cuenta aparte creada dentro de un programa calificado de aportaciones a un arreglo Roth que permite a los participantes optar a que la totalidad o parte de sus aplazamientos electivos a un plan 401(k), 403(b) o 457(b) se consideren aportaciones hechas a un arreglo Roth. Tax amendment Los aplazamientos electivos que se consideran aportaciones a un arreglo Roth se incluyen en los ingresos. Tax amendment Sin embargo, las distribuciones calificadas no se incluyen en los ingresos. Tax amendment Vea la Publicación 575, en inglés, para más información. Tax amendment Reinversiones en arreglos de ahorros para la jubilación designados Roth IRA dentro del mismo plan. Tax amendment   Si usted es participante en un plan de tipo 401(k), 403(b) o 457(b), es posible que pueda reinvertir fondos de dichos planes en un arreglo de ahorros para la jubilación designado Roth dentro del mismo plan. Tax amendment Se tiene que incluir en los ingresos la reinversión de cantidades libres de impuestos. Tax amendment Consulte la Publicación 575, en inglés, para más información. Tax amendment Más de un programa. Tax amendment   Si recibe beneficios de más de un programa bajo un fideicomiso o plan de su empleador, como un plan de pensiones y un plan de participación en las ganancias, es posible que tenga que calcular por separado la parte sujeta a impuestos de cada pensión o contrato de anualidad. Tax amendment Su antiguo empleador o el administrador del plan debe poder indicarle si tiene más de un contrato de pensión o anualidad. Tax amendment Plan de compensación diferida conforme a la sección 457. Tax amendment   Si usted trabaja para el gobierno local o estatal o para una organización exenta de impuestos, podría participar en un plan de compensación diferida conforme a la sección 457. Tax amendment Si su plan cumple los requisitos, usted no paga ahora impuestos sobre los sueldos que se difieran bajo el plan ni sobre las utilidades recibidas de las inversiones hechas por el plan con los sueldos diferidos. Tax amendment Por lo general, usted paga impuestos sobre las cantidades diferidas en un plan local o estatal que cumpla los requisitos sólo cuando se distribuyen del plan. Tax amendment Usted paga impuestos en las cantidades diferidas de un plan de una organización exenta de impuestos cuando éstas son distribuidas o de otra manera están disponibles a usted. Tax amendment   Su plan 457(b) puede tener una opción para un arreglo de ahorros para la jubilación designado Roth. Tax amendment De ser así, quizás pueda reinvertir cantidades al arreglo de ahorros para la jubilación designado Roth o hacer aportaciones. Tax amendment Los aplazamientos electivos a un arreglo de ahorros para la jubilación designado Roth se incluyen en su ingreso. Tax amendment Las distribuciones calificadas de un arreglo designado Roth no están sujetas a impuestos. Tax amendment   Este capítulo explica el tratamiento tributario de los beneficios de un plan creado al amparo de la sección 457, pero no cubre el trato de las cantidades diferidas. Tax amendment Para más información acerca de las cantidades diferidas de planes conforme a la sección 457, vea Retirement Plan Contributions (Aportaciones a un plan de jubilación) bajo Employee Compensation (Compensación del empleado), en la Publicación 525, Taxable and Nontaxable Income (Ingresos tributables y no tributables), en inglés. Tax amendment   Para obtener información general acerca de planes de compensación diferida, vea Section 457 Deferred Compensation Plans (Planes de compensación diferida conforme a la sección 457), en la Publicación 575, en inglés. Tax amendment Pensiones por incapacidad. Tax amendment   Si se jubiló por incapacidad, generalmente tiene que incluir en los ingresos toda pensión por incapacidad que reciba conforme a un plan que pague su empleador. Tax amendment Tiene que declarar como salario los pagos por incapacidad sujetos a impuestos en la línea 7 del Formulario 1040 o del Formulario 1040A hasta que alcance la edad mínima de jubilación. Tax amendment En general, la edad mínima de jubilación corresponde a la edad en que puede recibir una pensión o anualidad por primera vez si no está incapacitado. Tax amendment    Quizás tenga derecho a un crédito tributario si estaba total y permanentemente incapacitado cuando se jubiló. Tax amendment Para obtener información sobre el crédito para ancianos o incapacitados, vea el capítulo 33 . Tax amendment   A partir del día después de cumplir la edad mínima de jubilación, los pagos que reciba están sujetos a impuestos en calidad de pensión o anualidad. Tax amendment Declare los pagos en las líneas 16a y 16b del Formulario 1040 o en las líneas 12a y 12b del Formulario 1040A. Tax amendment    Los pagos de incapacidad por lesiones causadas directamente por un ataque terrorista dirigido contra los Estados Unidos (o sus aliados) no se incluyen en los ingresos. Tax amendment Para obtener más información acerca de los pagos a sobrevivientes de ataques terroristas, consulte la Publicación 3920, Tax Relief for Victims of Terrorist Attacks (Alivio de impuestos para víctimas de ataques terroristas), en inglés. Tax amendment   Para obtener más información sobre cómo declarar pensiones por incapacidad, incluyendo pensiones militares y otras pensiones gubernamentales por incapacidad, consulte el capítulo 5 . Tax amendment Funcionarios jubilados del sector de la seguridad pública. Tax amendment   Un funcionario jubilado del sector de seguridad pública que reúna los requisitos puede optar por excluir de sus ingresos distribuciones de hasta $3,000 efectuadas directamente de un plan de jubilación del gobierno a un proveedor de seguro de accidente, salud o de cuidado por incapacidad a largo plazo. Tax amendment Vea Insurance Premiums for Retired Public Safety Officers (Primas de seguros para funcionarios jubilados del sector de seguridad pública), en la Publicación 575, en inglés, para más información. Tax amendment Beneficios de jubilación de empleados ferroviarios. Tax amendment   Para fines tributarios, una parte de los beneficios de la jubilación de empleados ferroviarios recibidos se considera beneficios del Seguro Social y otra parte se considera pensión del empleado. Tax amendment Para obtener información acerca de los beneficios de jubilación de empleados ferroviarios considerados beneficios del Seguro Social, consulte la Publicación 915, Social Security and Equivalent Railroad Retirement Benefits (Beneficios del Seguro Social y beneficios equivalentes de la jubilación de empleados ferroviarios), en inglés. Tax amendment Para obtener información acerca de los beneficios de jubilación de empleados ferroviarios considerados pensión del empleado, consulte Railroad Retirement Benefits (Beneficios de jubilación de empleados ferroviarios) en la Publicación 575, en inglés. Tax amendment Retención e impuesto estimado. Tax amendment   El pagador del plan de pensiones, participación en las ganancias, bonificación de acciones, anualidad o compensación diferida retendrá impuestos sobre el ingreso correspondiente a las partes sujetas a impuestos de las cantidades que se le han pagado a usted. Tax amendment Puede indicarle al pagador la cantidad de la retención a realizar al presentar el Formulario W-4P. Tax amendment Si escoge que no le retengan impuestos o si no le retienen suficientes impuestos, tal vez tenga que pagar un impuesto estimado. Tax amendment   Si se le paga una distribución con derecho a reinversión, no puede optar por que no le retengan impuestos. Tax amendment Generalmente, se le retendrá el 20%, pero no hay retención sobre una reinversión directa de una distribución con derecho a reinversión. Tax amendment Consulte Opción de reinversión directa en Reinversiones, más adelante. Tax amendment   Para obtener más información, consulte Pensiones y Anualidades bajo Retención de Impuesto para el Año 2014, en el capítulo 4. Tax amendment Planes calificados para trabajadores por cuenta propia. Tax amendment   En ciertas ocasiones, los planes calificados establecidos por trabajadores por cuenta propia se denominan planes Keogh o H. Tax amendment R. Tax amendment 10. Tax amendment Los planes calificados pueden ser establecidos por propietarios únicos, sociedades colectivas (pero no un socio) y sociedades anónimas. Tax amendment Pueden cubrir a personas que trabajen por cuenta propia, como el propietario único o socios, y empleados regulares (de acuerdo con el derecho consuetudinario). Tax amendment    Por lo general, las distribuciones de un plan calificado están sujetas a impuestos en su totalidad porque la mayoría de los beneficiarios no tiene una base de costos. Tax amendment No obstante, si tiene una inversión (costo) en el plan, sus pagos de pensión o anualidad de un plan calificado se gravan conforme al Método Simplificado. Tax amendment Para obtener más información acerca de los planes calificados, consulte la Publicación 560, Retirement Plans for Small Business (Planes de jubilación para pequeños negocios), en inglés. Tax amendment Anualidades compradas. Tax amendment   Si recibe pagos de pensión o anualidad de un contrato de anualidad de compra privada de una organización comercial, como una compañía de seguros, normalmente tiene que usar la Regla General para calcular la parte exenta de impuestos de cada pago de anualidad. Tax amendment Para obtener más información acerca de la Regla General, consulte la Publicación 939, en inglés. Tax amendment Asimismo, consulte Variable Annuities (Anualidades variables) en la Publicación 575, en inglés, para las disposiciones especiales que se aplican a estos contratos de anualidad. Tax amendment Préstamos. Tax amendment   Si toma un préstamo de su plan de pensiones, tiene que tratar el préstamo como una distribución no periódica salvo que se den ciertas excepciones. Tax amendment Este trato también le aplica a cualquier préstamo obtenido conforme a un contrato comprado bajo su plan de jubilación y al valor de cualquier parte de su interés en el plan o contrato que ha usado como colateral o que ha asignado. Tax amendment Esto significa que tiene que incluir en los ingresos la totalidad o parte de la cantidad obtenida en préstamo. Tax amendment Aun si no tiene que tratar el préstamo como una distribución no periódica, en algunas situaciones quizás no pueda deducir los intereses sobre el préstamo. Tax amendment Para más detalles, vea Loans Treated as Distributions (Préstamos tratados como distribuciones), en la Publicación 575, en inglés. Tax amendment Para obtener más información acerca de la posibilidad de deducción de intereses, vea el capítulo 23 . Tax amendment Intercambio exento de impuestos. Tax amendment   No se reconocen ganancias ni pérdidas en un intercambio de un contrato de anualidad por otro contrato de anualidad si el asegurado o pensionista sigue siendo el mismo. Tax amendment Sin embargo, la ganancia sobre el intercambio de un contrato de anualidad se considera ingresos ordinarios si la ganancia se debe a los intereses acumulados en el contrato y el intercambio del contrato de anualidad es por un seguro de vida o contrato de seguro dotal. Tax amendment Consulte Transfers of Annuity Contracts (Traspasos de contratos de anualidad), en la Publicación 575, en inglés, para obtener más información acerca del intercambio de contratos de anualidad. Tax amendment Cómo Hacer la Declaración Si presenta el Formulario 1040, declare la anualidad total en la línea 16a y la parte sujeta a impuestos en la línea 16b. Tax amendment Si la pensión o anualidad está íntegramente sujeta a impuestos, anótela en la línea 16b; no anote nada en la línea 16a. Tax amendment Si presenta el Formulario 1040A, declare su anualidad total en la línea 12a y la parte sujeta a impuestos en la línea 12b. Tax amendment Si la pensión o anualidad está íntegramente sujeta a impuestos, anótela en la línea 12b; no anote nada en la línea 12a. Tax amendment Más de una anualidad. Tax amendment   Si recibe más de una anualidad y al menos una de ellas no está integramente sujeta a impuestos, anote la cantidad total recibida de todas las anualidades en la línea 16a del Formulario 1040 o en la línea 12a del Formulario 1040A. Tax amendment Anote la parte sujeta a impuestos en la línea 16b del Formulario 1040 o en la línea 12b del Formulario 1040A. Tax amendment Si todas las anualidades que usted reciba están integramente sujetas a impuestos, anote la suma de dichas anualidades en la línea 16b del Formulario 1040 o en la línea 12b del Formulario 1040A. Tax amendment Declaración conjunta. Tax amendment   Si presenta una declaración conjunta y usted y su cónyuge reciben, cada uno, una o más pensiones o anualidades, declare el total de las pensiones y anualidades en la línea 16a del Formulario 1040 o en la línea 12a del Formulario 1040A. Tax amendment Declare la parte sujeta a impuestos en la línea 16b del Formulario 1040 o en la línea 12b del Formulario 1040A. Tax amendment Costo (Inversión en el Contrato) Antes de calcular qué parte, si la hay, de una distribución de su pensión o anualidad es tributable, tiene que determinar el costo (su inversión en el contrato) de la pensión o anualidad. Tax amendment Su costo total en el plan incluye la prima total, aportaciones y otras cantidades que haya pagado, en fin, todo lo que ha pagado. Tax amendment Asimismo, incluye las cantidades que su empleador pagó y que eran tributables para usted al momento de dicho pago. Tax amendment El costo no incluye cantidades que haya deducido o excluido de los ingresos. Tax amendment De este costo total pagado, reste todo reembolso de primas, descuentos, dividendos, préstamos no reembolsados u otras cantidades exentas de impuestos que haya recibido en la fecha de inicio de la anualidad o en la fecha en que recibió su primer pago, la que ocurra más tarde. Tax amendment La fecha de inicio de la anualidad es el primer día del primer período para el cual usted recibe un pago o la fecha en que se fijan las obligaciones del plan, lo que ocurra más tarde. Tax amendment Arreglos de ahorros para la jubilación designados Roth. Tax amendment   Su costo en estos arreglos se compone de las aportaciones designadas Roth que se incluyeron en sus ingresos como salario sujeto a los requisitos de retención de impuestos correspondientes. Tax amendment Su costo también incluye toda inversión en arreglos de ahorros para la jubilación Roth dentro del mismo plan que incluyó en sus ingresos. Tax amendment Aportaciones de empleo en el extranjero. Tax amendment   Si usted trabajó en un país extranjero y se hicieron aportaciones a su plan de jubilación, se aplican reglas especiales al determinar su costo. Tax amendment Consulte Foreign employment contributions (Aportaciones de empleo en el extranjero), bajo el tema Cost (Investment in the Contract) (Costo (Inversión en el contrato)), en inglés, en la Publicación 575, en inglés. Tax amendment Tributación de Pagos Periódicos Pagos íntegramente tributables. Tax amendment   Generalmente, si no pagó ninguna parte del costo de su pensión o anualidad del empleado y su empleador no retuvo parte del costo de su pago mientras usted trabajaba, las cantidades que recibe cada año son íntegramente tributables. Tax amendment Tiene que declararlas en la declaración del impuesto sobre los ingresos. Tax amendment Pagos parcialmente tributables. Tax amendment   Si pagó parte del costo de su pensión o anualidad, no se gravará la parte de la pensión o anualidad que usted reciba y que represente un rendimiento de su costo. Tax amendment El resto de la cantidad que reciba suele ser tributable. Tax amendment Debe calcular las partes exentas y no exentas de impuestos de sus pagos de pensiones o anualidades conforme al Método Simplificado o a la Regla General. Tax amendment La fecha de inicio de la anualidad determina qué método debe o puede usar. Tax amendment   Si la fecha de inicio de la anualidad es posterior al 18 de noviembre de 1996 y sus pagos son de un plan calificado, tiene que usar el Método Simplificado. Tax amendment Generalmente, tiene que usar la Regla General si su anualidad es pagada bajo un plan no calificado y usted no puede usar este método si su anualidad se pagó bajo un plan calificado. Tax amendment   Si tenía más de una pensión o anualidad parcialmente tributable, calcule por separado la parte exenta y no exenta de impuestos. Tax amendment   Si la anualidad se paga en virtud de un plan calificado y la fecha de inicio de la anualidad es posterior al 1 de julio de 1986 y anterior al 19 de noviembre de 1996, puede escoger usar la Regla General o el Método Simplificado. Tax amendment Límite de exclusión. Tax amendment   La fecha de inicio de la anualidad determina la cantidad total de pagos de anualidad que puede excluir de los ingresos tributables en el transcurso de los años. Tax amendment Una vez que determina la fecha de inicio de su anualidad, ésta no cambia. Tax amendment Si usted calcula la parte tributable del pago de su anualidad usando la Hoja de Trabajo del Método Simplificado, la fecha de inicio de la anualidad determina el período de recuperación para su costo. Tax amendment Este período de recuperación comienza en la fecha de inicio de su anualidad y no se influye por la fecha en que primero completó la hoja de trabajo. Tax amendment Exclusión limitada al costo. Tax amendment   Si la fecha de inicio de la anualidad es posterior a 1986, la cantidad total del ingreso de anualidades que puede excluir en el transcurso de los años como recuperación del costo no puede ser superior al costo total. Tax amendment Todo costo no recuperado en el momento de su muerte (o la muerte del último pensionista) se permite como deducción detallada miscelánea en la declaración final del fallecido. Tax amendment Esta deducción no está sujeta al límite del 2% del ingreso bruto ajustado. Tax amendment Exclusión no limitada al costo. Tax amendment   Si la fecha de inicio de la anualidad es anterior a 1987, puede continuar optando a la exclusión mensual en tanto siga recibiendo su anualidad. Tax amendment Si optó por una anualidad conjunta y de sobreviviente, su sobreviviente puede continuar optando a la exclusión del sobreviviente calculada a partir de la fecha de inicio de la anualidad. Tax amendment La exclusión total podría ser mayor al costo en el que incurra. Tax amendment Método Simplificado Conforme al Método Simplificado, la parte exenta de impuestos de cada pago de la anualidad se calcula dividiendo el costo entre el número total previsto de pagos mensuales. Tax amendment Para una anualidad pagada durante la vida de los pensionistas, este número se basa en las edades de los pensionistas en la fecha de inicio de la anualidad y se determina a partir de una tabla. Tax amendment Para cualquier otra anualidad, este número corresponde al número de pagos mensuales de la anualidad en virtud del contrato. Tax amendment Quién tiene que usar el Método Simplificado. Tax amendment   Usted tiene que usar el Método Simplificado si la fecha de inicio de la anualidad es posterior al 18 de noviembre de 1996 y cumple ambos requisitos: Recibe pagos de pensiones o anualidades de un plan calificado del empleado, anualidad calificada del empleado o plan de anualidad con refugio tributario (plan conforme a la sección 403(b)) y En la fecha de inicio de su anualidad, usted tenía menos de 75 de años de edad o tenía derecho a pagos garantizados por menos de 5 años. Tax amendment Pagos garantizados. Tax amendment   Su contrato de anualidad provee pagos garantizados si un número mínimo de pagos o una cantidad mínima (por ejemplo, la cantidad de su inversión) son pagados, aun si usted y algún pensionista sobreviviente no viven hasta que puedan recibir el mínimo. Tax amendment Si la cantidad mínima es inferior a la cantidad total de pagos que usted va a recibir, salvo que fallezca, durante los primeros 5 años posteriores al comienzo de los pagos (calculado omitiendo todos los aumentos en los pagos), tiene derecho a menos de 5 años de pagos garantizados. Tax amendment Hoja de Trabajo 10-A. Tax amendment Hoja de Trabajo del Método Simplificado para Guillermo Rojas. Tax amendment 1. Tax amendment Anote el total de pagos de pensión o anualidad recibidos este año. Tax amendment Asimismo, sume esta cantidad al total de la línea 16a del Formulario 1040 o de la línea 12a del Formulario 1040A 1. Tax amendment 14,400 2. Tax amendment Anote su costo en el plan (contrato) en la fecha de inicio de la anualidad más toda exclusión por beneficios en caso de fallecimiento*. Tax amendment Vea Costo (Inversión en el Contrato) , anteriormente 2. Tax amendment 31,000       Nota: Si la fecha de inicio de la anualidad fue antes del presente año y completó esta hoja de trabajo el año pasado, omita la línea 3 y anote la cantidad de la línea 4 de la hoja de trabajo del año pasado en la línea 4 siguiente (aun si la cantidad de la pensión o anualidad ha cambiado). Tax amendment De lo contrario, pase a la línea 3. Tax amendment         3. Tax amendment Anote el número correspondiente de la Tabla 1, presentada a continuación. Tax amendment Sin embargo, si la fecha de inicio de la anualidad fue después de 1997 y los pagos se realizarán durante su vida y la vida de su beneficiario, anote el número correspondiente de la Tabla 2 presentada a continuación 3. Tax amendment 310     4. Tax amendment Divida la línea 2 entre la cantidad anotada en la línea 3 4. Tax amendment 100     5. Tax amendment Multiplique la línea 4 por el número de meses durante los que se realizaron los pagos del presente año. Tax amendment Si la fecha de inicio de la anualidad fue antes de 1987, anote esta cantidad en la línea 8 más adelante y omita las líneas 6, 7, 10 y 11. Tax amendment De lo contrario, pase a la línea 6 . Tax amendment 5. Tax amendment 1,200     6. Tax amendment Anote todas las cantidades recuperadas previamente exentas de impuestos en los años siguientes a 1986. Tax amendment Esta cantidad aparece en la línea 10 de la hoja de trabajo del año pasado 6. Tax amendment −0−     7. Tax amendment Reste la línea 6 de la 2 7. Tax amendment 31,000     8. Tax amendment De las líneas 5 y 7, anote la cantidad que sea menor 8. Tax amendment 1,200 9. Tax amendment Cantidad tributable para el año. Tax amendment Reste la línea 8 de la línea 1. Tax amendment Anote el resultado, pero éste no puede ser menor que cero. Tax amendment Asimismo, sume esta cantidad al total de la línea 16b del Formulario 1040 o de la línea 12b del Formulario 1040A 9. Tax amendment 13,200   Nota: Si el Formulario 1099-R muestra una cantidad tributable mayor, use la cantidad de la línea 9 en su lugar. Tax amendment Si es funcionario jubilado del sector de seguridad pública, vea Insurance Premiums for Retired Public Safety Officers (Primas de Seguros para Funcionarios Jubilados del Sector de Seguridad Pública) en la Publicación 575, en inglés, antes de anotar una cantidad en la declaración de impuestos. Tax amendment     10. Tax amendment ¿La fecha de inicio de su anualidad fue anterior a 1987? □ Sí. Tax amendment NO SIGA. Tax amendment No llene el resto de esta hoja de trabajo. Tax amendment  ☑ No. Tax amendment Sume las líneas 6 y 8. Tax amendment El resultado es la cantidad recuperada exenta de impuestos hasta el año 2013 inclusive. Tax amendment Necesitará esta cifra si necesita llenar esta hoja de trabajo el año que viene 10. Tax amendment 1,200 11. Tax amendment Saldo del costo por recuperar. Tax amendment Reste la línea 10 de la línea 2. Tax amendment Si es cero, no tendrá que llenar esta hoja de trabajo para el año que viene. Tax amendment Los pagos que reciba el año próximo normalmente serán tributables en su totalidad 11. Tax amendment 29,800 TABLA 1 PARA LA LÍNEA 3 ANTERIOR   Y la fecha de inicio de su anualidad fue: SI la edad en la  fecha de inicio de la anualidad era. Tax amendment . Tax amendment . Tax amendment antes del 19 de noviembre de  1996, anote en la línea 3. Tax amendment . Tax amendment . Tax amendment después del 18 de noviembre de  1996, anote en la línea 3. Tax amendment . Tax amendment . Tax amendment 55 años de edad o menos 300 360 56–60 260 310 61–65 240 260 66–70 170 210 71 años de edad o más 120 160 TABLA 2 PARA LA LÍNEA 3 ANTERIOR SI la suma de las edades  en la fecha de inicio  de la anualidad era. Tax amendment . Tax amendment . Tax amendment   ENTONCES anote en la línea 3. Tax amendment . Tax amendment . Tax amendment 110 o menos   410 111–120   360 121–130   310 131–140   260 141 o más   210 * Una exclusión por beneficios en caso de fallecimiento (hasta $5,000) aplicada a ciertos beneficios recibidos por empleados que fallecieron antes del 21 de agosto de 1996. Tax amendment Cómo usar el Método Simplificado. Tax amendment    Complete la Hoja de Trabajo del Método Simplificado de la Publicación 575, en inglés, para calcular la anualidad tributable para 2013. Tax amendment Anualidad sobre una sola vida. Tax amendment    Si la anualidad solamente es pagada durante su vida, utilice la Tabla 1 en la parte inferior de la hoja de trabajo para determinar el número total de pagos mensuales previsto. Tax amendment En la línea 3, anote el número correspondiente a su edad en la fecha de inicio de la anualidad. Tax amendment Anualidad sobre más de una vida. Tax amendment   Si la anualidad es pagada durante la vida de más de una persona, utilice la Tabla 2 en la parte inferior de la hoja de trabajo para determinar el número total de pagos mensuales previsto. Tax amendment Anote en la línea 3 el número indicado en la tabla que es correspondiente a la suma de su edad y la del pensionista sobreviviente más joven en la fecha de inicio de la anualidad. Tax amendment   Sin embargo, si la fecha de inicio de su anualidad comenzó antes de 1998, no utilice la Tabla 2 y no sume las edades de los pensionistas. Tax amendment En vez de hacer eso, debe utilizar la Tabla 1 y anote en la línea 3 el número correspondiente a la edad del pensionista principal en la fecha de inicio de la anualidad. Tax amendment    Asegúrese de guardar una copia de la hoja de trabajo completada, ya que le será de utilidad para calcular su anualidad tributable en el año entrante. Tax amendment Ejemplo. Tax amendment Guillermo Rojas, de 65 años de edad, comenzó a recibir beneficios de jubilación en el año 2013, conforme a una anualidad conjunta y de sobreviviente. Tax amendment La fecha de inicio de la anualidad de Guillermo es el 1 de enero del año 2013. Tax amendment Los beneficios se pagarán durante la vida conjunta de Guillermo y su esposa Marta, de 65 años de edad. Tax amendment Guillermo había aportado $31,000 a un plan calificado y no había recibido distribuciones antes de la fecha de inicio de la anualidad. Tax amendment Guillermo recibirá un beneficio de jubilación de $1,200 mensuales y Marta recibirá un beneficio de sobreviviente mensual de $600 tras la muerte de Guillermo. Tax amendment Guillermo tiene que utilizar el Método Simplificado para calcular su anualidad tributable porque sus pagos provienen de un plan calificado y tiene menos de 75 años de edad. Tax amendment Dado que su anualidad es pagada durante la vida de más de un pensionista, utiliza la suma de su edad y la de Marta y la Tabla 2 que aparece en la parte inferior de la hoja de trabajo para completar la línea 3 de la misma. Tax amendment Su hoja de trabajo completada aparece en la Hoja de Trabajo 10-A . Tax amendment La cantidad mensual exenta de impuestos de Guillermo es $100 ($31,000 ÷ 310), como se indica en la línea 4 de la hoja de trabajo. Tax amendment Al morir Guillermo, si no ha recuperado la totalidad de la inversión de $31,000, Marta también excluirá $100 de su pago mensual de $600. Tax amendment La cantidad total de todos los pagos de anualidad recibidos después de haberse efectuado 310 pagos se tiene que incluir en el ingreso bruto. Tax amendment Si Guillermo y Marta fallecen antes de que se efectúen los 310 pagos, se permitirá una deducción detallada miscelánea por el costo no recuperado en la declaración del impuesto sobre el ingreso final del último en morir. Tax amendment Esta deducción no está sujeta al límite del 2% del ingreso bruto ajustado. Tax amendment Quién tiene que usar la Regla General. Tax amendment   Se tiene que usar la Regla General si se reciben pagos de pensiones o anualidades de: Un plan no calificado (como una anualidad privada, una anualidad comercial comprada o un plan de empleado no calificado) o Un plan calificado si tiene 75 años de edad o más en la fecha de inicio de su anualidad y sus pagos de anualidad están garantizados por un mínimo de 5 años. Tax amendment Anualidad cuya fecha de inicio es anterior al 19 de noviembre de 1996. Tax amendment   Si la fecha de inicio de la anualidad es posterior al 1 de julio de 1986 y anterior al 19 de noviembre de 1996, tuvo que utilizar la Regla General para cualquiera de las circunstancias descritas anteriormente. Tax amendment También tuvo que usarla para toda anualidad de plazo fijo. Tax amendment Si no tuvo que utilizar la Regla General, pudo haber escogido usarla. Tax amendment Si la fecha de inicio de la anualidad es anterior al 2 de julio de 1986, tuvo que usar la Regla General, a menos que haya podido usar la Regla de los Tres Años. Tax amendment   Si tuvo que usar la Regla General (o escogió usarla), debe continuar usándola cada año que recupere su costo. Tax amendment Quién no puede usar la Regla General. Tax amendment   No puede usar la Regla General si recibe su pensión o anualidad de un plan calificado y ninguna de las circunstancias descritas anteriormente corresponde a su caso. Tax amendment Consulte Quién tiene que usar el Método Simplificado , anteriormente. Tax amendment Información adicional. Tax amendment   Para obtener información completa acerca del uso de la Regla General, incluidas las tablas actuariales que necesitará utilizar, consulte la Publicación 939, en inglés. Tax amendment Tributación de Pagos no Periódicos Las distribuciones no periódicas también se conocen como cantidades que no son recibidas como una anualidad. Tax amendment Abarcan todos los pagos que no sean pagos periódicos o distribuciones correctivas. Tax amendment Ejemplos de pagos no periódicos son retiros en efectivo, distribuciones de las ganancias de utilidad corriente, ciertos préstamos y el valor de un contrato de anualidad transferido sin consideración completa y adecuada. Tax amendment Distribuciones correctivas de aportaciones en exceso hechas a un plan de jubilación. Tax amendment   Normalmente, si las aportaciones hechas para usted durante el año a determinados planes de jubilación exceden ciertos límites, usted es responsable de pagar impuestos sobre el excedente. Tax amendment Para corregir la cantidad en exceso, es posible que el plan se la devuelva (junto con todos los ingresos devengados sobre el mismo). Tax amendment Para información acerca de los límites sobre aportaciones a un plan de jubilación y cómo declarar distribuciones correctivas, vea Retirement Plan Contributions (Aportaciones a un plan de jubilación), bajo Employee Compensation (Compensación del empleado), en la Publicación 525, en inglés. Tax amendment Cómo calcular el monto sujeto a impuestos de los pagos que no son periódicos. Tax amendment   El método que usted usa para calcular el monto sujeto a impuestos de una distribución no periódica depende de si la misma se hace antes de la fecha de inicio de la anualidad, o si se hace en o después de la fecha de inicio de la anualidad. Tax amendment Si se hace la distribución antes de la fecha de inicio de la anualidad, el trato tributario de la misma también depende de si se hace conforme a un plan calificado o no calificado. Tax amendment Si se hace conforme a un plan no calificado, su trato tributario dependerá de si le da fin completamente al contrato, si se recibe bajo ciertos seguros de vida o contratos de seguro dotal o si se puede asignar a una cantidad que usted invirtió antes del 14 de agosto de 1982. Tax amendment Fecha de inicio de la anualidad. Tax amendment   La fecha de inicio de la anualidad es el primer día del primer período para el cual usted recibe un pago de anualidad según estipula el contrato, o la fecha en que la obligación estipulada en el contrato se convierta en obligación fija, la que ocurra más tarde. Tax amendment Distribución en la fecha de inicio de la anualidad o después de dicha fecha. Tax amendment   Si recibe un pago no periódico procedente de su contrato de anualidad en, o después de, la fecha de inicio de la anualidad, generalmente tiene que incluir la totalidad del mismo en su ingreso bruto. Tax amendment Distribución antes de la fecha de inicio de la anualidad. Tax amendment   Si recibe una distribución que no sea periódica antes de la fecha de inicio de la anualidad proveniente de un plan de jubilación calificado, generalmente puede asignar sólo una parte de dicha distribución al costo del contrato. Tax amendment Excluya del ingreso bruto la parte que asigne al costo. Tax amendment Incluya el resto en su ingreso bruto. Tax amendment   Si recibe una distribución no periódica antes de la fecha de inicio de la anualidad proveniente de un plan que no sea un plan de jubilación calificado (plan no calificado), por lo general la misma se asigna primero a las ganancias (la parte sujeta a impuestos) y luego al costo del contrato (la parte exenta de impuestos). Tax amendment Esta regla de asignación se aplica, por ejemplo, a un contrato de anualidad comercial que haya comprado directamente del emisor. Tax amendment    Las distribuciones de los planes no calificados están sujetas al impuesto sobre los ingresos netos de inversión. Tax amendment Vea las Instrucciones para el Formulario 8960, disponibles en inglés. Tax amendment   Para más información, vea Figuring the Taxable Amount (Cómo calcular el monto tributable), bajo Taxation of Nonperiodic Payments (Tributación de pagos no periódicos), en la Publicación 575, en inglés. Tax amendment Distribuciones de Suma Global Esta sección, que abarca el tema de las distribuciones de sumas globales, sólo aplica si el participante del plan nació antes del 2 de enero de 1936. Tax amendment Si el participante nació después del 1 de enero de 1936, la cantidad tributable de este pago no periódico se declara tal como se explicó anteriormente. Tax amendment Una distribución de suma global es la distribución o el pago, en un año tributario, del saldo total de un participante de un plan, de todos los planes del empleador calificados del mismo tipo (por ejemplo, planes de pensiones, de participación en las ganancias o de bonificación de acciones). Tax amendment La distribución de un plan no calificado (como una anualidad comercial de compra privada o un plan de compensación diferida de la sección 457 de un gobierno estatal o local o de una organización exenta de impuestos) no se puede considerar distribución de suma global. Tax amendment El saldo total de un participante de un plan no incluye ciertas cantidades a las cuales perdió el derecho a ellas. Tax amendment Tampoco incluye las aportaciones voluntarias del empleado que sean deducibles, permitidas por el plan después de 1981 y antes de 1987. Tax amendment Para obtener más información acerca de las distribuciones que no se pueden considerar distribuciones de suma global, consulte Distributions that do not qualify (Distribuciones que no reúnen los requisitos), bajo Lump-Sum Distributions (Distribuciones de suma global) en la Publicación 575, en inglés. Tax amendment Si recibe una distribución de suma global de un plan de empleado calificado o anualidad de empleado calificada y el participante del plan nació antes del 2 de enero de 1936, tal vez pueda elegir métodos alternos para el cálculo del impuesto sobre la distribución. Tax amendment La parte de la participación activa en el plan antes de 1974 puede considerarse ganancia de capital sujeta a una tasa de impuesto del 20%. Tax amendment La parte de la participación después de 1973 (y toda parte de la participación antes de 1974 que no declare como ganancia de capital) constituye ingresos ordinarios. Tax amendment Tal vez pueda usar la opción de impuesto de 10 años, la cual se explica más adelante, para calcular los impuestos sobre la parte de los ingresos ordinarios. Tax amendment Use el Formulario 4972 para calcular el impuesto separado sobre una distribución de suma global mediante los métodos a los que tiene opción. Tax amendment El impuesto calculado en el Formulario 4972 se suma al impuesto básico calculado en otros ingresos. Tax amendment Esto puede dar origen a un impuesto menor que el que usted pagaría si incluye la cantidad tributable de la distribución como ingresos ordinarios al calcular el impuesto básico. Tax amendment Cómo tratar la distribución. Tax amendment   Si recibe una distribución de suma global, podría tratar la parte tributable basándose en una de las siguientes opciones: Declare la parte de la distribución de la participación antes de 1974 como ganancia de capital (si reúne los requisitos) y la parte de la participación después de 1973 como ingresos ordinarios. Tax amendment Declare la parte de la distribución de la participación antes de 1974 como ganancia de capital (si reúne los requisitos) y use la opción de impuesto de 10 años para calcular los impuestos sobre la parte de la participación después de 1973 (si reúne los requisitos). Tax amendment Use la opción de impuesto de 10 años para calcular los impuestos sobre la cantidad tributable total (si reúne los requisitos). Tax amendment Reinvierta toda o parte de la distribución. Tax amendment Consulte Reinversiones , más adelante. Tax amendment Actualmente no se deben impuestos sobre la parte reinvertida. Tax amendment Declare toda parte no reinvertida como ingresos ordinarios. Tax amendment Declare toda parte tributable de la distribución como ingresos ordinarios en la declaración de impuestos. Tax amendment   Las tres primeras opciones se explican en los siguientes párrafos. Tax amendment Opción al trato de suma global. Tax amendment   Puede decidir usar la opción de impuesto de 10 años o el trato de ganancia de capital solamente una vez después de 1986 para todo participante de un plan. Tax amendment Si escoge esta alternativa, no puede optar a ninguno de estos dos tratos para futuras distribuciones destinadas al participante. Tax amendment Partes de la distribución sujetas a impuestos y exentas de impuestos. Tax amendment    La parte sujeta a impuestos de una distribución de suma global corresponde a las aportaciones del empleador y al ingreso ganado sobre su cuenta. Tax amendment Puede recuperar el costo de la suma global y toda revalorización neta no realizada (NUA, por sus siglas en inglés) en los valores bursátiles exentos de impuestos del empleador. Tax amendment Costo. Tax amendment   En general, su costo es el total de: Las aportaciones al plan no deducibles realizadas por el participante del plan, Los costos tributables del participante del plan de un contrato de seguro de vida ya pagado, Todas las aportaciones del empleador que hayan sido tributables para el participante del plan y Reembolsos de préstamos que hayan sido tributables para el participante del plan. Tax amendment Tiene que descontar de este costo las cantidades previamente pagadas exentas de impuestos. Tax amendment Revalorización neta no realizada (NUA, por sus siglas en inglés). Tax amendment   Por lo general, la NUA en los valores bursátiles del empleador (recuadro 6 del Formulario 1099-R) recibida como parte de una distribución de suma global está exenta de impuestos hasta que usted venda o intercambie los valores bursátiles. Tax amendment Para obtener más información, consulte Distributions of employer securities (Distribuciones de valores bursátiles del empleador), bajo Taxation of Nonperiodic Payments (Tributación de pagos no periódicos), en la Publicación 575, en inglés. Tax amendment Trato de Ganancias de Capital El trato de ganancias de capital solamente se aplica a la parte tributable de una distribución de suma global originada por la participación en el plan antes de 1974. Tax amendment La cantidad tratada como ganancia de capital se grava a una tasa del 20%. Tax amendment Puede elegir este trato solamente una vez para un participante de un plan y sólo si éste nació antes del 2 de enero de 1936. Tax amendment Complete la Parte II del Formulario 4972 para elegir la opción de ganancia de capital del 20%. Tax amendment Para obtener más información, vea Capital Gain Treatment (Trato de ganancias de capital) bajo Lump-Sum Distributions (Distribuciones de suma global), en la Publicación 575, en inglés. Tax amendment Opción de Impuesto de 10 Años La opción de impuesto de 10 años es una fórmula especial que se usa para calcular por separado un impuesto sobre la parte de ingresos ordinarios de una distribución de suma global. Tax amendment Usted paga el impuesto solamente una vez, para el año en que recibe la distribución, y no durante los siguientes 10 años. Tax amendment Puede elegir este trato solamente una vez para un participante de un plan y sólo si éste nació antes del 2 de enero de 1936. Tax amendment La parte de ingresos ordinarios de la distribución corresponde a la cantidad que se indica en el recuadro 2a del Formulario 1099-R que le entregó el pagador, menos la cantidad, si la hay, que se indica en el recuadro 3. Tax amendment También puede tratar la parte de la ganancia de capital de la distribución (recuadro 3 del Formulario 1099-R) como ingresos ordinarios para la opción de impuesto de 10 años si no elige el trato de ganancias de capital para esa parte. Tax amendment Complete la Parte III del Formulario 4972 para elegir la opción de impuesto de 10 años. Tax amendment Para calcular el impuesto, tiene que usar la Tasa Impositiva (Tax Rate Schedule) especial que se halla en las instrucciones de la Parte III. Tax amendment La Publicación 575, en inglés, muestra cómo completar el Formulario 4972 para calcular el impuesto por separado. Tax amendment Reinversiones Si retira dinero en efectivo u otros activos de un plan de jubilación calificado en una distribución con derecho a reinversión, puede diferir el impuesto sobre la distribución al reinvertirla a otro plan de jubilación calificado o arreglo IRA tradicional. Tax amendment Para este fin, los siguientes son planes de jubilación calificados: Un plan de empleado calificado. Tax amendment Un plan de anualidades de empleado calificado. Tax amendment Un plan de anualidades con refugio tributario (plan 403(b)). Tax amendment Un plan de compensación diferida de la sección 457 del gobierno estatal o local que reúna los requisitos. Tax amendment Distribuciones con derecho a reinversión. Tax amendment   Generalmente, una distribución con derecho a reinversión es toda distribución del total, o de alguna parte, del saldo a su favor en un plan de jubilación calificado. Tax amendment Para información sobre excepciones a las distribuciones con derecho a reinversión, vea la Publicación 575, en inglés. Tax amendment Reinversión de cantidades no tributables. Tax amendment   Tal vez usted pueda reinvertir la parte no tributable de una distribución (como sus aportaciones después de impuestos) realizada en otro plan de jubilación calificado que sea un plan de empleado calificado o plan de la sección 403(b), o en un arreglo IRA tradicional o Roth IRA. Tax amendment El traspaso se tiene que efectuar mediante una reinversión directa a un plan calificado o a un plan de la sección 403(b) que considere en forma separada las partes tributables y no tributables de la reinversión o a través de una reinversión en un arreglo IRA tradicional o en un arreglo Roth IRA. Tax amendment   Si solamente reinvierte parte de una distribución que incluya cantidades tributables y no tributables, la cantidad reinvertida se trata como si proviniera primero de la parte tributable de la distribución. Tax amendment   Toda aportación neta de impuestos que reinvierta en su arreglo IRA tradicional forma parte de la base (costo) en sus arreglos IRA. Tax amendment Para recuperar la base después de sacar distribuciones de su arreglo IRA, tiene que llenar el Formulario 8606 para el año de la distribución. Tax amendment Para más información, vea las Instrucciones para el Formulario 8606, en inglés. Tax amendment Opción de reinversión directa. Tax amendment   Puede elegir que se pague una parte o el total de una distribución con derecho a reinversión directamente a otro plan calificado que esté autorizado para recibirlas o a un arreglo IRA tradicional o arreglo Roth IRA. Tax amendment Si elige una reinversión directa o si se efectúa una reinversión automática, no se retendrán impuestos de ninguna parte de la distribución que se pague directamente al fideicomisario del otro plan. Tax amendment Si decide que se le pague la distribución. Tax amendment   Si se le paga una distribución con derecho a reinversión, normalmente se retendrá el 20% de la misma para fines del impuesto sobre los ingresos. Tax amendment No obstante, se considera que la totalidad de la distribución se le ha pagado aunque en realidad recibe sólo el 80% de la misma. Tax amendment Normalmente, tiene que incluir en los ingresos toda parte (incluyendo la parte retenida) que no reinvierta dentro de los 60 días en otro plan de jubilación calificado o en un arreglo IRA tradicional o arreglo Roth IRA. Tax amendment (Consulte Pensiones y Anualidades bajo Retención de Impuesto para el Año 2014, en el capítulo 4). Tax amendment    Si decide reinvertir una cantidad igual a la distribución antes de la retención, su aportación al nuevo plan o arreglo IRA tiene que incluir otro dinero (por ejemplo, de ahorros o cantidades obtenidas en préstamo) para reemplazar la cantidad retenida. Tax amendment Cuándo hacer la reinversión. Tax amendment   Generalmente, tiene que efectuar por completo la reinversión de una distribución con derecho a reinversión a más tardar 60 días después del día en que reciba la distribución del plan de su empleador. Tax amendment (Si recibe una distribución y durante los 60 días de haberla recibido ésta se convierte en depósito bloqueado de una institución financiera, el plazo de reinversión se prórroga por el período durante el cual la distribución se encuentre en un depósito bloqueado en una institución financiera). Tax amendment   El IRS puede retirar el requisito de 60 días si la aplicación de dicho requisito fuera contrario a un trato de equidad o de buena conciencia, como en el caso de un hecho fortuito, desastre u otro evento fuera de un control razonable. Tax amendment El administrador de un plan calificado tiene que entregarle una explicación por escrito de sus opciones de distribución dentro de un período razonable antes de realizar una distribución con derecho a reinversión. Tax amendment Orden de relaciones domésticas calificadas (QDRO, por sus siglas en inglés). Tax amendment   Tal vez pueda reinvertir la totalidad o parte exenta de impuestos de una distribución de un plan de jubilación calificado que reciba conforme a una orden de relaciones domésticas calificadas. Tax amendment Si recibe la distribución como cónyuge o ex cónyuge de un empleado (no como beneficiario que no es cónyuge), se aplican a su caso las reglas de reinversión como si usted fuese el empleado. Tax amendment Puede reinvertir la distribución del plan en un arreglo IRA tradicional o en otro plan de jubilación que reúna las condiciones. Tax amendment Consulte el tema titulado Rollovers (Reinversiones), en la Publicación 575, en inglés, para obtener más información acerca de los beneficios recibidos conforme a una orden de este tipo. Tax amendment Reinversiones por parte del cónyuge sobreviviente. Tax amendment   Tal vez pueda reinvertir, exenta de impuestos, la totalidad o parte de una distribución de un plan de jubilación calificado que reciba como cónyuge sobreviviente de un empleado fallecido. Tax amendment Las reglas de reinversión se le aplican como si usted fuese el empleado. Tax amendment Puede reinvertir una distribución en un plan de jubilación calificado o en un arreglo IRA tradicional o arreglo Roth IRA. Tax amendment En el caso de una reinversión en un arreglo Roth IRA, vea Reinversiones en arreglos Roth IRA , más adelante. Tax amendment    Una distribución pagada a un beneficiario distinto al cónyuge sobreviviente del empleado no suele ser una distribución con derecho a reinversión. Tax amendment No obstante, vea el tema que se presenta a continuación, Reinversiones por parte de un beneficiario que no sea el cónyuge . Tax amendment Reinversiones por parte de un beneficiario que no sea el cónyuge. Tax amendment   Si es beneficiario designado (que no sea el cónyuge sobreviviente) de un empleado fallecido, quizás pueda reinvertir la totalidad o parte exenta de impuestos de una distribución que reciba de un plan de jubilación calificado del empleado. Tax amendment La distribución debe ser un traspaso directo de fideicomisario a fideicomisario a su arreglo IRA tradicional o su arreglo Roth IRA establecido para recibir dicha distribución. Tax amendment El traspaso se considerará una distribución con derecho a reinversión y el plan que la recibe se considerará un arreglo IRA heredado. Tax amendment Para más información sobre los arreglos IRA heredados, vea el tema titulado What if You Inherit an IRA? (¿Qué ocurre si usted hereda un IRA?), en el capítulo 1 de la Publicación 590, Individual Retirement Arrangements (IRAs) (Arreglos individuales de ahorro para la jubilación (IRA, por sus siglas en inglés)), en inglés. Tax amendment Bonos de jubilación. Tax amendment   Si rescata bonos de jubilación obtenidos conforme a un plan de compra de bonos calificado, puede reinvertir exentos de impuesto en un arreglo IRA la parte de las ganancias que sea superior a la base (como se explica en la Publicación 590, en inglés) o en un plan de empleador calificado. Tax amendment Arreglos de ahorros para la jubilación designados Roth. Tax amendment   Puede reinvertir una distribución con derecho a reinversión desde un arreglo designado Roth a otro arreglo designado Roth o a un arreglo Roth IRA. Tax amendment Si desea reinvertir la parte de la distribución que no se incluya en los ingresos, tiene que hacer una reinversión directa de la distribución en su totalidad o puede reinvertir la cantidad entera (o cualquier parte de la misma) en un arreglo Roth IRA. Tax amendment Para más información sobre las reinversiones de arreglos designados Roth, vea el tema titulado Rollovers (Reinversiones), en la Publicación 575, en inglés. Tax amendment Reinversiones en arreglos de ahorros para la jubilación designados Roth IRA dentro del mismo plan. Tax amendment   Si usted es participante en un plan de tipo 401(k), 403(b) o 457(b), es posible que pueda reinvertir fondos de dichos planes en un arreglo designado Roth dentro del mismo plan. Tax amendment Se tiene que incluir en los ingresos la reinversión de cantidades libres de impuestos. Tax amendment Vea el tema titulado Designated Roth Accounts (Cuentas designadas Roth), que se encuentra bajo el tema Rollovers (Reinversiones), en la Publicación 575, en inglés, para más información. Tax amendment Reinversiones en arreglos Roth IRA. Tax amendment   Puede reinvertir distribuciones directamente de un plan de jubilación calificado en un arreglo Roth IRA. Tax amendment   Tiene que incluir en los ingresos brutos distribuciones procedentes de un plan de jubilación calificado (que no sea un arreglo designado Roth) que habría estado obligado a incluir en los ingresos si no las hubiera reinvertido en un arreglo Roth IRA. Tax amendment No se incluye en los ingresos brutos ninguna parte de una distribución procedente de un plan de jubilación calificado que sea una devolución de aportaciones a dicho plan que estuviesen sujetas a impuestos cuando las hizo. Tax amendment Asimismo, no corresponde el impuesto del 10% sobre distribuciones prematuras. Tax amendment Información adicional. Tax amendment   Para más información sobre las reglas relativas a la reinversión de distribuciones, vea el tema titulado Rollovers (Reinversiones), en la Publicación 575, en inglés. Tax amendment Impuestos Adicionales Especiales Para desalentar el uso de fondos de pensiones para fines que no sean los de la jubilación normal, la ley impone impuestos adicionales sobre distribuciones prematuras de aquellos fondos y en aquellos casos en que los fondos no se retiran a tiempo. Tax amendment Por lo general, no estará sujeto a estos impuestos si reinvierte toda distribución prematura que reciba, como se explica anteriormente, y comienza a retirar los fondos a una edad de jubilación normal y en cantidades razonables durante su expectativa de vida. Tax amendment Estos impuestos adicionales especiales son impuestos sobre: Distribuciones prematuras y Acumulación en exceso (sin recibir distribuciones mínimas). Tax amendment Estos impuestos se explican en las siguientes secciones. Tax amendment Si tiene que pagar alguno de estos impuestos, declárelo en el Formulario 5329. Tax amendment Sin embargo, no tiene que presentar el Formulario 5329 si adeuda solamente el impuesto sobre distribuciones prematuras y su Formulario 1099-R indica correctamente un “1” en el recuadro 7. Tax amendment En su lugar, anote el 10% de la parte tributable de la distribución en la línea 58 del Formulario 1040 y escriba “No” bajo el título “ Other Taxes ” (Otros impuestos) a la izquierda de la línea 58. Tax amendment Aun si no adeuda estos impuestos, es posible que tenga que completar el Formulario 5329 y adjuntarlo al Formulario 1040. Tax amendment Esto corresponde si cumple una excepción al impuesto sobre distribuciones prematuras, pero el recuadro 7 de su Formulario 1099-R no indica una excepción. Tax amendment Impuesto sobre Distribuciones Prematuras La mayoría de las distribuciones (periódicas y no periódicas) de planes de jubilación calificados y contratos de anualidades no calificados pagadas a usted antes de cumplir 59 años y medio de edad está sujeta a un impuesto adicional del 10%. Tax amendment Este impuesto se aplica a la parte de la distribución que tiene que incluir en el ingreso bruto. Tax amendment Para este fin, un plan de jubilación calificado es: Un plan de empleado calificado, Un plan de anualidades de empleado calificado, Un plan de anualidades con refugio tributario o Un plan de remuneración diferida de la sección 457 del gobierno estatal o local (en la medida en que alguna distribución sea atribuible a las cantidades que recibió el plan en un traspaso directo o reinversión de uno de los otros planes que se indican aquí o de un arreglo IRA). Tax amendment Tasa del 5% en ciertas distribuciones prematuras de contratos de anualidad diferida. Tax amendment   Si un retiro prematuro de una anualidad diferida está sujeto al impuesto adicional del 10%, en su lugar se podría aplicar una tasa de un 5%. Tax amendment La tasa del 5% se aplica a distribuciones conforme a una opción por escrito que estipule un plan de distribución de su participación en el contrato si, para el 1 de marzo de 1986, usted había comenzado a recibir pagos conforme a esa opción. Tax amendment En la línea 4 del Formulario 5329, en inglés, multiplique la cantidad de la línea 3 por el 5% en lugar del 10%. Tax amendment Adjunte una explicación a su declaración. Tax amendment Distribuciones de arreglos Roth IRA reinvertidas en un plan de jubilación que reúne los requisitos y dentro del plazo de cinco años. Tax amendment   Si reinvirtió fondos de un plan de jubilación, el cual reúne los requisitos, en un arreglo Roth IRA y recibe una distribución de este arreglo Roth IRA dentro del plazo de cinco años que se inicia en el primer día del año tributario en el que efectuó dicha reinversión, es posible que tenga que pagar el impuesto adicional del 10% sobre distribuciones prematuras. Tax amendment Normalmente, paga el impuesto adicional del 10% sobre toda cantidad atribuible a la parte de la reinversión que usted estuviera obligado a incluir en los ingresos. Tax amendment Se utiliza el Formulario 5329 para calcular el impuesto adicional. Tax amendment Para más información, vea el Formulario 5329 y las instrucciones del mismo. Tax amendment Para información sobre distribuciones calificadas de un arreglo Roth IRA, vea Additional Tax on Early Distributions (Impuesto adicional sobre distribuciones prematuras) en el capítulo 2 de la Publicación 590, en inglés. Tax amendment Distribuciones de arreglos de ahorros para la jubilación designados Roth asignables a distribuciones de un arreglo para la jubilación Roth efectuadas dentro del plazo de cinco años. Tax amendment   Si reinvirtió fondos de un plan de tipo 401(k), 403(b) o 457(b) en un arreglo designado Roth IRA y recibe una distribución de este arreglo designado Roth IRA dentro del plazo de cinco años que se inicia en el primer día del año tributario en el que efectuó dicha reinversión, es posible que tenga que pagar el impuesto adicional del 10% sobre distribuciones prematuras. Tax amendment Normalmente, paga el impuesto adicional del 10% sobre toda cantidad atribuible a la parte de la reinversión dentro del mismo plan que usted estuviera obligado a incluir en los ingresos. Tax amendment Se utiliza el Formulario 5329 para calcular el impuesto adicional. Tax amendment Para más información, vea el Formulario 5329 y las instrucciones del mismo. Tax amendment Para información sobre distribuciones calificadas de un arreglo designado Roth IRA, vea Designated Roth accounts (Arreglos Roth IRA designados) bajo Taxation of Periodic Payments (Tributación de pagos periódicos), en la Publicación 575, en inglés. Tax amendment Excepciones a los impuestos. Tax amendment    Ciertas distribuciones prematuras se excluyen del impuesto sobre dichas distribuciones prematuras. Tax amendment Si el pagador sabe que se aplica una excepción a su distribución prematura, el código de distribución “2”, “3” ó “4” debe aparecer en el recuadro 7 del Formulario 1099-R y usted no tiene que declarar la distribución en el Formulario 5329. Tax amendment Si corresponde una excepción, pero el código de la distribución “1” (distribución prematura, se desconocen excepciones) aparece en el recuadro 7, tiene que presentar el Formulario 5329. Tax amendment Anote en la línea 1 del Formulario 5329 la cantidad tributable de la distribución que aparece en el recuadro 2a de su Formulario 1099-R. Tax amendment En la línea 2, anote la cantidad que se puede excluir y el número de la excepción que aparece en las instrucciones del Formulario 5329. Tax amendment    Si el código de distribución “1” aparece incorrectamente en el Formulario 1099-R para una distribución recibida cuando tenía 59 años y medio de edad o más, incluya esa distribución en el Formulario 5329. Tax amendment Anote el número de la excepción “12” en la línea 2. Tax amendment Excepciones generales. Tax amendment   El impuesto no se aplica a distribuciones que: Se realizan como parte de una serie de pagos periódicos básicamente iguales (efectuados como mínimo una vez al año) durante su vida (o expectativa de vida) o la vida conjunta (o expectativa de vida conjunta) de usted y de su beneficiario designado (si los pagos provienen de un plan de jubilación calificado, tienen que comenzar después de su retirada del trabajo), Se realizan porque usted se encuentra total y permanentemente incapacitado o Se realizan al momento de la muerte del participante del plan o dueño del contrato o después de la muerte. Tax amendment Excepciones adicionales para planes de jubilación calificados. Tax amendment   El impuesto no se aplica a distribuciones provenientes de: Un plan de jubilación calificado (que no sea un arreglo IRA) después de su retirada del trabajo durante o después del año en que cumplió 55 años de edad (50 años de edad para empleados calificados del sector de la seguridad pública), Un plan de jubilación calificado (que no sea un arreglo IRA) a un beneficiario alternativo conforme a una orden de relaciones domésticas calificadas, Un plan de jubilación calificado en la medida en que usted tenga gastos médicos deducibles que excedan del 10% (o 7. Tax amendment 5% si usted o su cónyuge tiene 65 años de edad o más) de su ingreso bruto ajustado, independientemente de si detalla o no sus deducciones para el año, Un plan de empleador conforme a una opción por escrito que estipule un plan de distribución de la totalidad de su participación si, al 1 de marzo de 1986, usted se había retirado de servicio y había comenzado a recibir pagos conforme a esa opción, Un plan de acciones de propiedad de los empleados en el caso de dividendos de valores bursátiles del empleador administrados por el plan, Un plan de jubilación calificado debido a un embargo del plan por parte del IRS Cuentas de aplazamientos electivos bajo planes 401(k) o 403(b), o planes similares, que sean distribuciones para ciudadanos en reserva militar que reúnen los requisitos o Pagos de anualidades de jubilación por fases efectuados a empleados federales. Tax amendment Vea la Publicación 721, disponible en inglés, si desea más información sobre el programa de jubilación por fases. Tax amendment Empleados del sector de la seguridad pública que reúnen los requisitos. Tax amendment   Si es empleado del sector de la seguridad pública y reúne los requisitos, las distribuciones hechas de un plan de pensiones gubernamental con beneficios definidos no están sujetas al impuesto adicional sobre distribuciones prematuras. Tax amendment Se le considera empleado del sector de la seguridad pública que reúne los requisitos si provee protección policial, presta servicios de bombero o servicios médicos de urgencia para un estado o municipio y terminó de prestar servicios (se había separado del servicio) en, o después del, año en que cumplió los 50 años de edad. Tax amendment Distribuciones para ciudadanos en reserva militar que reúnen los requisitos. Tax amendment   Una distribución para ciudadanos en reserva militar que reúnen los requisitos no está sujeta a impuestos adicionales sobre distribuciones prematuras. Tax amendment Una distribución para ciudadanos en reserva militar que reúnen los requisitos es una distribución: (
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Federal and State Agencies for Seniors

Find a list of federal and state agencies with resources for seniors.

The Tax Amendment

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