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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Tax Return For Students

1040a 2012 InstructionsAmending TaxesHow To File An Amended Tax Return OnlineHow Much Does It Cost To Amend A Tax ReturnAmendment Form 1040xIrs Form 1040ez FillableHow Do I File My State Taxes For Free2012 Pdf Tax Forms 1040Turbo Tax Filing For 2010Tax Cut Free FileStatetaxreturnH&r Block Free Tax SoftwareState Tax Forms 2014Free Tax Filing For Federal And StateHow To Amend A Tax Return 2012Free State EfilingTax Forms 1040Do I Have To File A State Tax ReturnTurbotax 2008 Free EditionWhere To File 2012 TaxesTax Form 1040xIrs 1040ez FormIrs.gov/1040xCan I Do My State Taxes Online For Free1040nr E1040 Ez InstructionsWwwhrblock ComH&r Block Military DiscountState Tax EfileFile Federal Taxes Online Free 2012Free File TaxesH&r Free FederalE File Amended Return1040ez 2012 FormHow To Amend Last Year's Tax ReturnState Amended FormInstructions For 1040ezHow To Fill 1040nrAarp State Tax Filing For SeniorsE File Income Tax Return

Tax Return For Students

Tax return for students 7. Tax return for students   Interest Income Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationSSN for joint account. Tax return for students Custodian account for your child. Tax return for students Penalty for failure to supply SSN. Tax return for students Reporting backup withholding. Tax return for students Savings account with parent as trustee. Tax return for students Interest not reported on Form 1099-INT. Tax return for students Nominees. Tax return for students Incorrect amount. Tax return for students Information reporting requirement. Tax return for students Taxable InterestInterest subject to penalty for early withdrawal. Tax return for students Money borrowed to invest in certificate of deposit. Tax return for students U. Tax return for students S. Tax return for students Savings Bonds Education Savings Bond Program U. Tax return for students S. Tax return for students Treasury Bills, Notes, and Bonds Bonds Sold Between Interest Dates Insurance State or Local Government Obligations Original Issue Discount (OID) When To Report Interest IncomeConstructive receipt. Tax return for students How To Report Interest IncomeSchedule B (Form 1040A or 1040). Tax return for students Reporting tax-exempt interest. Tax return for students U. Tax return for students S. Tax return for students savings bond interest previously reported. Tax return for students Reminder Foreign-source income. Tax return for students  If you are a U. Tax return for students S. Tax return for students citizen with interest income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt by U. Tax return for students S. Tax return for students law. Tax return for students This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. Tax return for students Introduction This chapter discusses the following topics. Tax return for students Different types of interest income. Tax return for students What interest is taxable and what interest is nontaxable. Tax return for students When to report interest income. Tax return for students How to report interest income on your tax return. Tax return for students In general, any interest you receive or that is credited to your account and can be withdrawn is taxable income. Tax return for students Exceptions to this rule are discussed later in this chapter. Tax return for students You may be able to deduct expenses you have in earning this income on Schedule A (Form 1040) if you itemize your deductions. Tax return for students See Money borrowed to invest in certificate of deposit , later, and chapter 28. Tax return for students Useful Items - You may want to see: Publication 537 Installment Sales 550 Investment Income and Expenses 1212 Guide to Original Issue Discount (OID) Instruments Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends 8815 Exclusion of Interest From Series EE and I U. Tax return for students S. Tax return for students Savings Bonds Issued After 1989 8818 Optional Form To Record Redemption of Series EE and I U. Tax return for students S. Tax return for students Savings Bonds Issued After 1989 General Information A few items of general interest are covered here. Tax return for students Recordkeeping. Tax return for students You should keep a list showing sources and interest amounts received during the year. Tax return for students Also, keep the forms you receive showing your interest income (Forms 1099-INT, for example) as an important part of your records. Tax return for students Tax on unearned income of certain children. Tax return for students    Part of a child's 2013 unearned income may be taxed at the parent's tax rate. Tax return for students If so, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. Tax return for students If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Tax return for students   Some parents can choose to include the child's interest and dividends on the parent's return. Tax return for students If you can, use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. Tax return for students   For more information about the tax on unearned income of children and the parents' election, see chapter 31. Tax return for students Beneficiary of an estate or trust. Tax return for students   Interest you receive as a beneficiary of an estate or trust is generally taxable income. Tax return for students You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Tax return for students , from the fiduciary. Tax return for students Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. Tax return for students Social security number (SSN). Tax return for students   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 return for students This includes payers of interest. Tax return for students If you do not give your SSN or ITIN to the payer of interest, you may have to pay a penalty. Tax return for students SSN for joint account. Tax return for students   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 return for students (For information on who owns the funds in a joint account, see Joint accounts , later. Tax return for students ) If the joint account contains combined funds, give the SSN of the person whose name is listed first on the account. Tax return for students This is because only one name and SSN can be shown on Form 1099. Tax return for students   These rules apply both to joint ownership by a married couple and to joint ownership by other individuals. Tax return for students 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 return for students Custodian account for your child. Tax return for students   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 return for students For example, you must give your child's SSN to the payer of interest on an account owned by your child, even though the interest is paid to you as custodian. Tax return for students Penalty for failure to supply SSN. Tax return for students   If you do not give your SSN to the payer of interest, you may have to pay a penalty. Tax return for students See Failure to supply SSN under Penalties in chapter 1. Tax return for students Backup withholding also may apply. Tax return for students Backup withholding. Tax return for students   Your interest income is generally not subject to regular withholding. Tax return for students However, it may be subject to backup withholding to ensure that income tax is collected on the income. Tax return for students Under backup withholding, the payer of interest must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. Tax return for students   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. Tax return for students For more information, see Backup Withholding in chapter 4. Tax return for students Reporting backup withholding. Tax return for students   If backup withholding is deducted from your interest income, the payer must give you a Form 1099-INT for the year indicating the amount withheld. Tax return for students The Form 1099-INT will show any backup withholding as “Federal income tax withheld. Tax return for students ” Joint accounts. Tax return for students   If two or more persons hold property (such as a savings account or bond) as joint tenants, tenants by the entirety, or tenants in common, each person's share of any interest from the property is determined by local law. Tax return for students Income from property given to a child. Tax return for students   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 return for students   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 return for students Savings account with parent as trustee. Tax return for students   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 return for students The savings account legally belongs to the child. Tax return for students The parents are not legally permitted to use any of the funds to support the child. Tax return for students Form 1099-INT. Tax return for students   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 return for students This form shows you the interest you received during the year. Tax return for students Keep this form for your records. Tax return for students You do not have to attach it to your tax return. Tax return for students   Report on your tax return the total interest income you receive for the tax year. Tax return for students Interest not reported on Form 1099-INT. Tax return for students   Even if you do not receive Form 1099-INT, you must still report all of your interest income. Tax return for students For example, you may receive distributive shares of interest from partnerships or S corporations. Tax return for students This interest is reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deduction, Credits, etc. Tax return for students , or Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. Tax return for students Nominees. Tax return for students   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 return for students   If you receive a Form 1099-INT that includes amounts belonging to another person, see the discussion on nominee distributions under How To Report Interest Income in chapter 1 of Publication 550, or Schedule B (Form 1040A or 1040) instructions. Tax return for students Incorrect amount. Tax return for students   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 return for students The new Form 1099-INT you receive will be marked “Corrected. Tax return for students ” Form 1099-OID. Tax return for students   Reportable interest income also may be shown on Form 1099-OID, Original Issue Discount. Tax return for students For more information about amounts shown on this form, see Original Issue Discount (OID) , later in this chapter. Tax return for students Exempt-interest dividends. Tax return for students   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 return for students (However, see Information reporting requirement , next. Tax return for students ) Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. Tax return for students You do not reduce your basis for distributions that are exempt-interest dividends. Tax return for students Information reporting requirement. Tax return for students   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file. Tax return for students This is an information reporting requirement and does not change the exempt-interest dividends into taxable income. Tax return for students Note. Tax return for students Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. Tax return for students See Alternative Minimum Tax (AMT) in chapter 30 for more information. Tax return for students Chapter 1 of Publication 550 contains a discussion on private activity bonds under State or Local Government Obligations. Tax return for students Interest on VA dividends. Tax return for students   Interest on insurance dividends left on deposit with the Department of Veterans Affairs (VA) is not taxable. Tax return for students This includes interest paid on dividends on converted United States Government Life Insurance and on National Service Life Insurance policies. Tax return for students Individual retirement arrangements (IRAs). Tax return for students   Interest on a Roth IRA generally is not taxable. Tax return for students Interest on a traditional IRA is tax deferred. Tax return for students You generally do not include it in your income until you make withdrawals from the IRA. Tax return for students See chapter 17. Tax return for students Taxable Interest Taxable interest includes interest you receive from bank accounts, loans you make to others, and other sources. Tax return for students The following are some sources of taxable interest. Tax return for students Dividends that are actually interest. Tax return for students   Certain distributions commonly called dividends are actually interest. Tax return for students 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 return for students  The “dividends” will be shown as interest income on Form 1099-INT. Tax return for students Money market funds. Tax return for students   Money market funds pay dividends and are offered by nonbank financial institutions, such as mutual funds and stock brokerage houses. Tax return for students Generally, amounts you receive from money market funds should be reported as dividends, not as interest. Tax return for students Certificates of deposit and other deferred interest accounts. Tax return for students   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 return for students 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 return for students The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. Tax return for students If interest is deferred for more than 1 year, see Original Issue Discount (OID) , later. Tax return for students Interest subject to penalty for early withdrawal. Tax return for students   If you withdraw funds from a deferred interest account before maturity, you may have to pay a penalty. Tax return for students You must report the total amount of interest paid or credited to your account during the year, without subtracting the penalty. Tax return for students See Penalty on early withdrawal of savings in chapter 1 of Publication 550 for more information on how to report the interest and deduct the penalty. Tax return for students Money borrowed to invest in certificate of deposit. Tax return for students   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 return for students You must report the total interest you earn on the certificate in your income. Tax return for students If you itemize deductions, you can deduct the interest you pay as investment interest, up to the amount of your net investment income. Tax return for students See Interest Expenses in chapter 3 of Publication 550. Tax return for students Example. Tax return for students 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 return for students 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 return for students The bank gives you a Form 1099-INT for 2013 showing the $575 interest you earned. Tax return for students The bank also gives you a statement showing that you paid $310 interest for 2013. Tax return for students You must include the $575 in your income. Tax return for students If you itemize your deductions on Schedule A (Form 1040), you can deduct $310, subject to the net investment income limit. Tax return for students Gift for opening account. Tax return for students   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 return for students   For deposits of less than $5,000, gifts or services valued at more than $10 must be reported as interest. Tax return for students For deposits of $5,000 or more, gifts or services valued at more than $20 must be reported as interest. Tax return for students The value is determined by the cost to the financial institution. Tax return for students Example. Tax return for students You open a savings account at your local bank and deposit $800. Tax return for students The account earns $20 interest. Tax return for students You also receive a $15 calculator. Tax return for students 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 return for students You must report $35 interest income on your tax return. Tax return for students Interest on insurance dividends. Tax return for students   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 return for students 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 return for students Prepaid insurance premiums. Tax return for students   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 return for students U. Tax return for students S. Tax return for students obligations. Tax return for students   Interest on U. Tax return for students S. Tax return for students obligations, such as U. Tax return for students S. Tax return for students Treasury bills, notes, and bonds, issued by any agency or instrumentality of the United States is taxable for federal income tax purposes. Tax return for students Interest on tax refunds. Tax return for students   Interest you receive on tax refunds is taxable income. Tax return for students Interest on condemnation award. Tax return for students   If the condemning authority pays you interest to compensate you for a delay in payment of an award, the interest is taxable. Tax return for students Installment sale payments. Tax return for students   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 return for students That interest is taxable when you receive it. Tax return for students If little or no interest is provided for in a deferred payment contract, part of each payment may be treated as interest. Tax return for students See Unstated Interest and Original Issue Discount in Publication 537, Installment Sales. Tax return for students Interest on annuity contract. Tax return for students   Accumulated interest on an annuity contract you sell before its maturity date is taxable. Tax return for students Usurious interest. Tax return for students   Usurious interest is interest charged at an illegal rate. Tax return for students This is taxable as interest unless state law automatically changes it to a payment on the principal. Tax return for students Interest income on frozen deposits. Tax return for students   Exclude from your gross income interest on frozen deposits. Tax return for students 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 where the institution is located has placed limits on withdrawals because other financial institutions in the state are bankrupt or insolvent. Tax return for students   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 return for students 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 in chapter 1 of Publication 550, for information about reporting this interest income exclusion on your tax return. Tax return for students   The interest you exclude is treated as credited to your account in the following year. Tax return for students You must include it in income in the year you can withdraw it. Tax return for students Example. Tax return for students $100 of interest was credited on your frozen deposit during the year. Tax return for students You withdrew $80 but could not withdraw any more as of the end of the year. Tax return for students You must include $80 in your income and exclude $20 from your income for the year. Tax return for students You must include the $20 in your income for the year you can withdraw it. Tax return for students Bonds traded flat. Tax return for students   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 return for students The defaulted or unpaid interest is not income and is not taxable as interest if paid later. Tax return for students When you receive a payment of that interest, it is a return of capital that reduces the remaining cost basis of your bond. Tax return for students Interest that accrues after the date of purchase, however, is taxable interest income for the year it is received or accrued. Tax return for students See Bonds Sold Between Interest Dates , later, for more information. Tax return for students Below-market loans. Tax return for students   In general, a below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Tax return for students See Below-Market Loans in chapter 1 of Publication 550 for more information. Tax return for students U. Tax return for students S. Tax return for students Savings Bonds This section provides tax information on U. Tax return for students S. Tax return for students savings bonds. Tax return for students It explains how to report the interest income on these bonds and how to treat transfers of these bonds. Tax return for students For other information on U. Tax return for students S. Tax return for students savings bonds, write to:  For series EE and I paper savings bonds: Bureau of the Public Debt Division of Customer Assistance P. Tax return for students O. Tax return for students Box 7012 Parkersburg, WV 26106-7012  For series EE and I electronic bonds: Bureau of the Public Debt Division of Customer Assistance P. Tax return for students O. Tax return for students Box 7015 Parkersburg, WV 26106–7015  For series HH/H: Bureau of the Public Debt Division of Customer Assistance P. Tax return for students O. Tax return for students Box 2186 Parkersburg, WV 26106-2186 Or, on the Internet, visit: www. Tax return for students treasurydirect. Tax return for students gov/indiv/indiv. Tax return for students htm. Tax return for students Accrual method taxpayers. Tax return for students   If you use an accrual method of accounting, you must report interest on U. Tax return for students S. Tax return for students savings bonds each year as it accrues. Tax return for students You cannot postpone reporting interest until you receive it or until the bonds mature. Tax return for students Accrual methods of accounting are explained in chapter 1 under Accounting Methods . Tax return for students Cash method taxpayers. Tax return for students   If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U. Tax return for students S. Tax return for students savings bonds when you receive it. Tax return for students The cash method of accounting is explained in chapter 1 under Accounting Methods. Tax return for students But see Reporting options for cash method taxpayers , later. Tax return for students Series HH bonds. Tax return for students    These bonds were issued at face value. Tax return for students Interest is paid twice a year by direct deposit to your bank account. Tax return for students If you are a cash method taxpayer, you must report interest on these bonds as income in the year you receive it. Tax return for students   Series HH bonds were first offered in 1980 and last offered in August 2004. Tax return for students Before 1980, series H bonds were issued. Tax return for students Series H bonds are treated the same as series HH bonds. Tax return for students If you are a cash method taxpayer, you must report the interest when you receive it. Tax return for students   Series H bonds have a maturity period of 30 years. Tax return for students Series HH bonds mature in 20 years. Tax return for students The last series H bonds matured in 2009. Tax return for students Series EE and series I bonds. Tax return for students   Interest on these bonds is payable when you redeem the bonds. Tax return for students The difference between the purchase price and the redemption value is taxable interest. Tax return for students Series EE bonds. Tax return for students   Series EE bonds were first offered in January 1980 and have a maturity period of 30 years. Tax return for students   Before July 1980, series E bonds were issued. Tax return for students 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 return for students Paper series EE and series E bonds are issued at a discount. Tax return for students The face value is payable to you at maturity. Tax return for students Electronic series EE bonds are issued at their face value. Tax return for students The face value plus accrued interest is payable to you at maturity. Tax return for students As of January 1, 2012, paper savings bonds were no longer sold at financial institutions. Tax return for students   Owners of paper series EE bonds can convert them to electronic bonds. Tax return for students These converted bonds do not retain the denomination listed on the paper certificate but are posted at their purchase price (with accrued interest). Tax return for students Series I bonds. Tax return for students   Series I bonds were first offered in 1998. Tax return for students These are inflation-indexed bonds issued at their face amount with a maturity period of 30 years. Tax return for students The face value plus all accrued interest is payable to you at maturity. Tax return for students Reporting options for cash method taxpayers. Tax return for students   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 return for students Method 1. Tax return for students Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year they mature. Tax return for students (However, see Savings bonds traded , later. Tax return for students )  Note. Tax return for students Series EE bonds issued in 1983 matured in 2013. Tax return for students If you have used method 1, you generally must report the interest on these bonds on your 2013 return. Tax return for students The last series E bonds were issued in 1980 and matured in 2010. Tax return for students If you used method 1, you generally should have reported the interest on these bonds on your 2010 return. Tax return for students Method 2. Tax return for students Choose to report the increase in redemption value as interest each year. Tax return for students You must use the same method for all series EE, series E, and series I bonds you own. Tax return for students If you do not choose method 2 by reporting the increase in redemption value as interest each year, you must use method 1. Tax return for students    If you plan to cash your bonds in the same year you will pay for higher education expenses, you may want to use method 1 because you may be able to exclude the interest from your income. Tax return for students To learn how, see Education Savings Bond Program, later. Tax return for students Change from method 1. Tax return for students   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 return for students In the year of change you must report all interest accrued to date and not previously reported for all your bonds. Tax return for students   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 return for students Change from method 2. Tax return for students   To change from method 2 to method 1, you must request permission from the IRS. Tax return for students Permission for the change is automatically granted if you send the IRS a statement that meets all the following requirements. Tax return for students You have typed or printed the following number at the top: “131. Tax return for students ” It includes your name and social security number under “131. Tax return for students ” It includes the year of change (both the beginning and ending dates). Tax return for students It identifies the savings bonds for which you are requesting this change. Tax return for students 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 return for students   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 return for students   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 return for students On the statement, type or print “Filed pursuant to section 301. Tax return for students 9100-2. Tax return for students ” To get this extension, you must have filed your original return for the year of the change by the due date (including extensions). Tax return for students    By the date you file the original statement with your return, you must also send a signed copy to the address below. Tax return for students   Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) P. Tax return for students O. Tax return for students Box 7604 Benjamin Franklin Station Washington, DC 20044   If you use a private delivery service, send the signed copy to the address below. Tax return for students   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, Application for Change in Accounting Method. Tax return for students In that case, follow the form instructions for an automatic change. Tax return for students No user fee is required. Tax return for students Co-owners. Tax return for students   If a U. Tax return for students S. Tax return for students 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 return for students One co-owner's funds used. Tax return for students    If you used your funds to buy the bond, you must pay the tax on the interest. Tax return for students This is true even if you let the other co-owner redeem the bond and keep all the proceeds. Tax return for students 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 return for students The co-owner who redeemed the bond is a “nominee. Tax return for students ” See Nominee distributions under How To Report Interest Income in chapter 1 of Publication 550 for more information about how a person who is a nominee reports interest income belonging to another person. Tax return for students Both co-owners' funds used. Tax return for students   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 return for students Community property. Tax return for students   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 return for students If you file separate returns, each of you generally must report one-half of the bond interest. Tax return for students For more information about community property, see Publication 555. Tax return for students Table 7-1. Tax return for students   These rules are also shown in Table 7-1. Tax return for students Ownership transferred. Tax return for students   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 return for students But, if the bonds were reissued in your name alone, you do not have to report the interest accrued at that time. Tax return for students   This same rule applies when bonds (other than bonds held as community property) are transferred between spouses or incident to divorce. Tax return for students Purchased jointly. Tax return for students   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 return for students 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 return for students This interest, however, as well as all interest earned after the reissue, is income to the former co-owner. Tax return for students   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 return for students But the new co-owner will report only his or her share of the interest earned after the transfer. Tax return for students   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 return for students    Table 7-1. Tax return for students Who Pays the Tax on U. Tax return for students S. Tax return for students Savings Bond Interest IF . Tax return for students . Tax return for students . Tax return for students THEN the interest must be reported by . Tax return for students . Tax return for students . Tax return for students you buy a bond in your name and the name of another person as co-owners, using only your own funds you. Tax return for students 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 return for students 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 return for students you and your spouse, who live in a community property state, buy a bond that is community property you and your spouse. Tax return for students If you file separate returns, both you and your spouse generally report one-half of the interest. Tax return for students Example 1. Tax return for students You and your spouse each spent an equal amount to buy a $1,000 series EE savings bond. Tax return for students The bond was issued to you and your spouse as co-owners. Tax return for students You both postpone reporting interest on the bond. Tax return for students You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. Tax return for students At that time neither you nor your spouse has to report the interest earned to the date of reissue. Tax return for students Example 2. Tax return for students You bought a $1,000 series EE savings bond entirely with your own funds. Tax return for students The bond was issued to you and your spouse as co-owners. Tax return for students You both postpone reporting interest on the bond. Tax return for students You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. Tax return for students You must report half the interest earned to the date of reissue. Tax return for students Transfer to a trust. Tax return for students   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 return for students 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 return for students 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 return for students   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 return for students See Savings bonds traded , later. Tax return for students Decedents. Tax return for students   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 return for students This is explained in chapter 1 of Publication 550. Tax return for students Savings bonds traded. Tax return for students   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 return for students (You cannot trade series I bonds for series HH bonds. Tax return for students After August 31, 2004, you cannot trade any other series of bonds for series HH bonds. Tax return for students ) Any cash you received is income up to the amount of the interest earned on the bonds traded. Tax return for students 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 return for students 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 return for students Example. Tax return for students You traded series EE bonds (on which you postponed reporting the interest) for $2,500 in series HH bonds and $223 in cash. Tax return for students You reported the $223 as taxable income on your tax return. Tax return for students At the time of the trade, the series EE bonds had accrued interest of $523 and a redemption value of $2,723. Tax return for students You hold the series HH bonds until maturity, when you receive $2,500. Tax return for students You must report $300 as interest income in the year of maturity. Tax return for students 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 return for students (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 return for students ) Choice to report interest in year of trade. Tax return for students   You could have chosen to treat all of the previously unreported accrued interest on the series EE or series E bonds traded for series HH bonds as income in the year of the trade. Tax return for students If you made this choice, it is treated as a change from method 1. Tax return for students See Change from method 1 under Series EE and series I bonds, earlier. Tax return for students Form 1099-INT for U. Tax return for students S. Tax return for students savings bonds interest. Tax return for students   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 return for students 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 return for students However, your Form 1099-INT may show more interest than you have to include on your income tax return. Tax return for students For example, this may happen if any of the following are true. Tax return for students You chose to report the increase in the redemption value of the bond each year. Tax return for students The interest shown on your Form 1099-INT will not be reduced by amounts previously included in income. Tax return for students You received the bond from a decedent. Tax return for students 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 return for students Ownership of the bond was transferred. Tax return for students The interest shown on your Form 1099-INT will not be reduced by interest that accrued before the transfer. Tax return for students You were named as a co-owner, and the other co-owner contributed funds to buy the bond. Tax return for students 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 return for students (See Co-owners , earlier in this chapter, for more information about the reporting requirements. Tax return for students ) You received the bond in a taxable distribution from a retirement or profit-sharing plan. Tax return for students 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 return for students (This amount is generally shown on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Tax return for students , for the year of distribution. Tax return for students )   For more information on including the correct amount of interest on your return, see How To Report Interest Income , later. Tax return for students Publication 550 includes examples showing how to report these amounts. Tax return for students    Interest on U. Tax return for students S. Tax return for students savings bonds is exempt from state and local taxes. Tax return for students The Form 1099-INT you receive will indicate the amount that is for U. Tax return for students S. Tax return for students savings bond interest in box 3. Tax return for students 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 return for students S. Tax return for students savings bonds during the year if you pay qualified higher educational expenses during the same year. Tax return for students This exclusion is known as the Education Savings Bond Program. Tax return for students You do not qualify for this exclusion if your filing status is married filing separately. Tax return for students Form 8815. Tax return for students   Use Form 8815 to figure your exclusion. Tax return for students Attach the form to your Form 1040 or Form 1040A. Tax return for students Qualified U. Tax return for students S. Tax return for students savings bonds. Tax return for students   A qualified U. Tax return for students S. Tax return for students savings bond is a series EE bond issued after 1989 or a series I bond. Tax return for students The bond must be issued either in your name (sole owner) or in your and your spouse's names (co-owners). Tax return for students You must be at least 24 years old before the bond's issue date. Tax return for students 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 return for students    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 return for students Beneficiary. Tax return for students   You can designate any individual (including a child) as a beneficiary of the bond. Tax return for students Verification by IRS. Tax return for students   If you claim the exclusion, the IRS will check it by using bond redemption information from the Department of the Treasury. Tax return for students Qualified expenses. Tax return for students   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 return for students   Qualified expenses include any contribution you make to a qualified tuition program or to a Coverdell education savings account. Tax return for students   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 return for students Eligible educational institutions. Tax return for students   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 U. Tax return for students S. Tax return for students Department of Education. Tax return for students Reduction for certain benefits. Tax return for students   You must reduce your qualified higher educational expenses by all of the following tax-free benefits. Tax return for students Tax-free part of scholarships and fellowships (see Scholarships and fellowships in chapter 12). Tax return for students Expenses used to figure the tax-free portion of distributions from a Coverdell ESA. Tax return for students Expenses used to figure the tax-free portion of distributions from a qualified tuition program. Tax return for students Any tax-free payments (other than gifts or inheritances) received for educational expenses, such as Veterans' educational assistance benefits, Qualified tuition reductions, or Employer-provided educational assistance. Tax return for students Any expense used in figuring the American Opportunity and lifetime learning credits. Tax return for students Amount excludable. Tax return for students   If the total proceeds (interest and principal) from the qualified U. Tax return for students S. Tax return for students 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 return for students If the proceeds are more than the expenses, you may be able to exclude only part of the interest. Tax return for students   To determine the excludable amount, multiply the interest part of the proceeds by a fraction. Tax return for students The numerator of the fraction is the qualified higher educational expenses you paid during the year. Tax return for students The denominator of the fraction is the total proceeds you received during the year. Tax return for students Example. Tax return for students In February 2013, Mark and Joan, a married couple, cashed a qualified series EE U. Tax return for students S. Tax return for students savings bond they bought in April 1997. Tax return for students They received proceeds of $8,372 representing principal of $5,000 and interest of $3,372. Tax return for students In 2013, they paid $4,000 of their daughter's college tuition. Tax return for students They are not claiming an education credit for that amount, and their daughter does not have any tax-free educational assistance. Tax return for students They can exclude $1,611 ($3,372 × ($4,000 ÷ $8,372)) of interest in 2013. Tax return for students They must pay tax on the remaining $1,761 ($3,372 − $1,611) interest. Tax return for students Modified adjusted gross income limit. Tax return for students   The interest exclusion is limited if your modified adjusted gross income (modified AGI) is: $74,700 to $89,700 for taxpayers filing single or head of household, and $112,050 to $142,050 for married taxpayers filing jointly or for a qualifying widow(er) with dependent child. Tax return for students You do not qualify for the interest exclusion if your modified AGI is equal to or more than the upper limit for your filing status. Tax return for students   Modified AGI, for purposes of this exclusion, is adjusted gross income (Form 1040, line 37, or Form 1040A, line 21) figured before the interest exclusion, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion and deduction, Exclusion of income for bona fide residents of American Samoa, Exclusion for income from Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for tuition and fees, Deduction for student loan interest, and Deduction for domestic production activities. Tax return for students   Use the Line 9 Worksheet in the Form 8815 instructions to figure your modified AGI. Tax return for students If you claim any of the exclusion or deduction items listed above (except items 6, 7, and 8), add the amount of the exclusion or deduction (except items 6, 7, and 8) to the amount on line 5 of the worksheet, and enter the total on Form 8815, line 9, as your modified AGI. Tax return for students   If you have investment interest expense incurred to earn royalties and other investment income, see Education Savings Bond Program in chapter 1 of Publication 550. Tax return for students Recordkeeping. Tax return for students If you claim the interest exclusion, you must keep a written record of the qualified U. Tax return for students S. Tax return for students savings bonds you redeem. Tax return for students Your record must include the serial number, issue date, face value, and total redemption proceeds (principal and interest) of each bond. Tax return for students You can use Form 8818 to record this information. Tax return for students You should also keep bills, receipts, canceled checks, or other documentation that shows you paid qualified higher educational expenses during the year. Tax return for students U. Tax return for students S. Tax return for students Treasury Bills, Notes, and Bonds Treasury bills, notes, and bonds are direct debts (obligations) of the U. Tax return for students S. Tax return for students Government. Tax return for students Taxation of interest. Tax return for students   Interest income from Treasury bills, notes, and bonds is subject to federal income tax but is exempt from all state and local income taxes. Tax return for students You should receive Form 1099-INT showing the interest (in box 3) paid to you for the year. Tax return for students   Payments of principal and interest generally will be credited to your designated checking or savings account by direct deposit through the TreasuryDirect® system. Tax return for students Treasury bills. Tax return for students   These bills generally have a 4-week, 13-week, 26-week, or 52-week maturity period. Tax return for students They are generally issued at a discount in the amount of $100 and multiples of $100. Tax return for students The difference between the discounted price you pay for the bills and the face value you receive at maturity is interest income. Tax return for students Generally, you report this interest income when the bill is paid at maturity. Tax return for students If you paid a premium for a bill (more than the face value), you generally report the premium as a section 171 deduction when the bill is paid at maturity. Tax return for students Treasury notes and bonds. Tax return for students   Treasury notes have maturity periods of more than 1 year, ranging up to 10 years. Tax return for students Maturity periods for Treasury bonds are longer than 10 years. Tax return for students Both generally are issued in denominations of $100 to $1 million and generally pay interest every 6 months. Tax return for students Generally, you report this interest for the year paid. Tax return for students For more information, see U. Tax return for students S. Tax return for students Treasury Bills, Notes, and Bonds in chapter 1 of Publication 550. Tax return for students For other information on Treasury notes or bonds, write to:  Bureau of the Public Debt P. Tax return for students O. Tax return for students Box 7015 Parkersburg, WV 26106-7015 Or, on the Internet, visit: www. Tax return for students treasurydirect. Tax return for students gov/indiv/indiv. Tax return for students htm. Tax return for students For information on series EE, series I, and series HH savings bonds, see U. Tax return for students S. Tax return for students Savings Bonds , earlier. Tax return for students Treasury inflation-protected securities (TIPS). Tax return for students   These securities pay interest twice a year at a fixed rate, based on a principal amount adjusted to take into account inflation and deflation. Tax return for students For the tax treatment of these securities, see Inflation-Indexed Debt Instruments under Original Issue Discount (OID), in Publication 550. Tax return for students Bonds Sold Between Interest Dates If you sell a bond between interest payment dates, part of the sales price represents interest accrued to the date of sale. Tax return for students You must report that part of the sales price as interest income for the year of sale. Tax return for students If you buy a bond between interest payment dates, part of the purchase price represents interest accrued before the date of purchase. Tax return for students When that interest is paid to you, treat it as a return of your capital investment, rather than interest income, by reducing your basis in the bond. Tax return for students See Accrued interest on bonds under How To Report Interest Income in chapter 1 of Publication 550 for information on reporting the payment. Tax return for students Insurance Life insurance proceeds paid to you as beneficiary of the insured person are usually not taxable. Tax return for students But if you receive the proceeds in installments, you must usually report a part of each installment payment as interest income. Tax return for students For more information about insurance proceeds received in installments, see Publication 525, Taxable and Nontaxable Income. Tax return for students Annuity. Tax return for students   If you buy an annuity with life insurance proceeds, the annuity payments you receive are taxed as pension and annuity income from a nonqualified plan, not as interest income. Tax return for students See chapter 10 for information on pension and annuity income from nonqualified plans. Tax return for students State or Local Government Obligations Interest on a bond used to finance government operations generally is not taxable if the bond is issued by a state, the District of Columbia, a possession of the United States, or any of their political subdivisions. Tax return for students Bonds issued after 1982 (including tribal economic development bonds issued after February 17, 2009) by an Indian tribal government are treated as issued by a state. Tax return for students Interest on these bonds is generally tax exempt if the bonds are part of an issue of which substantially all proceeds are to be used in the exercise of any essential government function. Tax return for students For information on federally guaranteed bonds, mortgage revenue bonds, arbitrage bonds, private activity bonds, qualified tax credit bonds, and Build America bonds, see State or Local Government Obligations in chapter 1 of Publication 550. Tax return for students Information reporting requirement. Tax return for students   If you must file a tax return, you are required to show any tax-exempt interest you received on your return. Tax return for students This is an information reporting requirement only. Tax return for students It does not change tax-exempt interest to taxable interest. Tax return for students Original Issue Discount (OID) Original issue discount (OID) is a form of interest. Tax return for students You generally include OID in your income as it accrues over the term of the debt instrument, whether or not you receive any payments from the issuer. Tax return for students A debt instrument generally has OID when the instrument is issued for a price that is less than its stated redemption price at maturity. Tax return for students OID is the difference between the stated redemption price at maturity and the issue price. Tax return for students All debt instruments that pay no interest before maturity are presumed to be issued at a discount. Tax return for students Zero coupon bonds are one example of these instruments. Tax return for students The OID accrual rules generally do not apply to short-term obligations (those with a fixed maturity date of 1 year or less from date of issue). Tax return for students See Discount on Short-Term Obligations in chapter 1 of Publication 550. Tax return for students De minimis OID. Tax return for students   You can treat the discount as zero if it is less than one-fourth of 1% (. Tax return for students 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. Tax return for students This small discount is known as “de minimis” OID. Tax return for students Example 1. Tax return for students You bought a 10-year bond with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. Tax return for students One-fourth of 1% of $1,000 (stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. Tax return for students Because the $20 discount is less than $25, the OID is treated as zero. Tax return for students (If you hold the bond at maturity, you will recognize $20 ($1,000 − $980) of capital gain. Tax return for students ) Example 2. Tax return for students The facts are the same as in Example 1, except that the bond was issued at $950. Tax return for students The OID is $50. Tax return for students Because the $50 discount is more than the $25 figured in Example 1, you must include the OID in income as it accrues over the term of the bond. Tax return for students Debt instrument bought after original issue. Tax return for students   If you buy a debt instrument with de minimis OID at a premium, the discount is not includible in income. Tax return for students If you buy a debt instrument with de minimis OID at a discount, the discount is reported under the market discount rules. Tax return for students See Market Discount Bonds in chapter 1 of Publication 550. Tax return for students Exceptions to reporting OID. Tax return for students   The OID rules discussed in this chapter do not apply to the following debt instruments. Tax return for students Tax-exempt obligations. Tax return for students (However, see Stripped tax-exempt obligations under Stripped Bonds and Coupons in chapter 1 of Publication 550). Tax return for students U. Tax return for students S. Tax return for students savings bonds. Tax return for students Short-term debt instruments (those with a fixed maturity date of not more than 1 year from the date of issue). Tax return for students Obligations issued by an individual before March 2, 1984. Tax return for students Loans between individuals if all the following are true. Tax return for students The lender is not in the business of lending money. Tax return for students The amount of the loan, plus the amount of any outstanding prior loans between the same individuals, is $10,000 or less. Tax return for students Avoiding any federal tax is not one of the principal purposes of the loan. Tax return for students Form 1099-OID. Tax return for students   The issuer of the debt instrument (or your broker if you held the instrument through a broker) should give you Form 1099-OID, or a similar statement, if the total OID for the calendar year is $10 or more. Tax return for students Form 1099-OID will show, in box 1, the amount of OID for the part of the year that you held the bond. Tax return for students It also will show, in box 2, the stated interest you must include in your income. Tax return for students A copy of Form 1099-OID will be sent to the IRS. Tax return for students Do not file your copy with your return. Tax return for students Keep it for your records. Tax return for students   In most cases, you must report the entire amount in boxes 1 and 2 of Form 1099-OID as interest income. Tax return for students But see Refiguring OID shown on Form 1099-OID, later in this discussion, for more information. Tax return for students Form 1099-OID not received. Tax return for students   If you had OID for the year but did not receive a Form 1099-OID, you can find tables on IRS. Tax return for students gov that list total OID on certain debt instruments and have information that will help you figure OID. Tax return for students For the latest OID tables, go to www. Tax return for students irs. Tax return for students gov and enter “OID tables” in the Search box. Tax return for students If your debt instrument is not listed, consult the issuer for further information about the accrued OID for the year. Tax return for students Nominee. Tax return for students   If someone else is the holder of record (the registered owner) of an OID instrument belonging to you and receives a Form 1099-OID on your behalf, that person must give you a Form 1099-OID. Tax return for students Refiguring OID shown on Form 1099-OID. Tax return for students   You must refigure the OID shown in box 1 or box 8 of Form 1099-OID if either of the following apply. Tax return for students You bought the debt instrument after its original issue and paid a premium or an acquisition premium. Tax return for students The debt instrument is a stripped bond or a stripped coupon (including certain zero coupon instruments). Tax return for students For information about figuring the correct amount of OID to include in your income, see Figuring OID on Long-Term Debt Instruments in Publication 1212. Tax return for students Refiguring periodic interest shown on Form 1099-OID. Tax return for students   If you disposed of a debt instrument or acquired it from another holder during the year, see Bonds Sold Between Interest Dates , earlier, for information about the treatment of periodic interest that may be shown in box 2 of Form 1099-OID for that instrument. Tax return for students Certificates of deposit (CDs). Tax return for students   If you buy a CD with a maturity of more than 1 year, you must include in income each year a part of the total interest due and report it in the same manner as other OID. Tax return for students   This also applies to similar deposit arrangements with banks, building and loan associations, etc. Tax return for students , including: Time deposits, Bonus plans, Savings certificates, Deferred income certificates, Bonus savings certificates, and Growth savings certificates. Tax return for students Bearer CDs. Tax return for students   CDs issued after 1982 generally must be in registered form. Tax return for students Bearer CDs are CDs not in registered form. Tax return for students They are not issued in the depositor's name and are transferable from one individual to another. Tax return for students   Banks must provide the IRS and the person redeeming a bearer CD with a Form 1099-INT. Tax return for students More information. Tax return for students   See chapter 1 of Publication 550 for more information about OID and related topics, such as market discount bonds. Tax return for students When To Report Interest Income When to report your interest income depends on whether you use the cash method or an accrual method to report income. Tax return for students Cash method. Tax return for students   Most individual taxpayers use the cash method. Tax return for students If you use this method, you generally report your interest income in the year in which you actually or constructively receive it. Tax return for students However, there are special rules for reporting the discount on certain debt instruments. Tax return for students See U. Tax return for students S. Tax return for students Savings Bonds and Original Issue Discount (OID) , earlier. Tax return for students Example. Tax return for students On September 1, 2011, you loaned another individual $2,000 at 12%, compounded annually. Tax return for students You are not in the business of lending money. Tax return for students The note stated that principal and interest would be due on August 31, 2013. Tax return for students In 2013, you received $2,508. Tax return for students 80 ($2,000 principal and $508. Tax return for students 80 interest). Tax return for students If you use the cash method, you must include in income on your 2013 return the $508. Tax return for students 80 interest you received in that year. Tax return for students Constructive receipt. Tax return for students   You constructively receive income when it is credited to your account or made available to you. Tax return for students You do not need to have physical possession of it. Tax return for students For example, you are considered to receive interest, dividends, or other earnings on any deposit or account in a bank, savings and loan, or similar financial institution, or interest on life insurance policy dividends left to accumulate, when they are credited to your account and subject to your withdrawal. Tax return for students This is true even if they are not yet entered in your passbook. Tax return for students   You constructively receive income on the deposit or account even if you must: Make withdrawals in multiples of even amounts, Give a notice to withdraw before making the withdrawal, Withdraw all or part of the account to withdraw the earnings, or Pay a penalty on early withdrawals, unless the interest you are to receive on an early withdrawal or redemption is substantially less than the interest payable at maturity. Tax return for students Accrual method. Tax return for students   If you use an accrual method, you report your interest income when you earn it, whether or not you have received it. Tax return for students Interest is earned over the term of the debt instrument. Tax return for students Example. Tax return for students If, in the previous example, you use an accrual method, you must include the interest in your income as you earn it. Tax return for students You would report the interest as follows: 2011, $80; 2012, $249. Tax return for students 60; and 2013, $179. Tax return for students 20. Tax return for students Coupon bonds. Tax return for students   Interest on coupon bonds is taxable in the year the coupon becomes due and payable. Tax return for students It does not matter when you mail the coupon for payment. Tax return for students How To Report Interest Income Generally, you report all your taxable interest income on Form 1040, line 8a; Form 1040A, line 8a; or Form 1040EZ, line 2. Tax return for students You cannot use Form 1040EZ if your taxable interest income is more than $1,500. Tax return for students Instead, you must use Form 1040A or Form 1040. Tax return for students Form 1040A. Tax return for students   You must complete Schedule B (Form 1040A or 1040), Part I, if you file Form 1040A and any of the following are true. Tax return for students Your taxable interest income is more than $1,500. Tax return for students You are claiming the interest exclusion under the Education Savings Bond Program (discussed earlier). Tax return for students You received interest from a seller-financed mortgage, and the buyer used the property as a home. Tax return for students You received a Form 1099-INT for U. Tax return for students S. Tax return for students savings bond interest that includes amounts you reported before 2013. Tax return for students You received, as a nominee, interest that actually belongs to someone else. Tax return for students You received a Form 1099-INT for interest on frozen deposits. Tax return for students You are reporting OID in an amount less than the amount shown on Form 1099-OID. Tax return for students You received a Form 1099-INT for interest on a bond you bought between interest payment dates. Tax return for students You acquired taxable bonds after 1987 and choose to reduce interest income from the bonds by any amortizable bond premium (see Bond Premium Amortization in chapter 3 of Publication 550). Tax return for students List each payer's name and the amount of interest income received from each payer on line 1. Tax return for students If you received a Form 1099-INT or Form 1099-OID from a brokerage firm, list the brokerage firm as the payer. Tax return for students   You cannot use Form 1040A if you must use Form 1040, as described next. Tax return for students Form 1040. Tax return for students   You must use Form 1040 instead of Form 1040A or Form 1040EZ if: You forfeited interest income because of the early withdrawal of a time deposit; You acquired taxable bonds after 1987, you choose to reduce interest income from the bonds by any amortizable bond premium, and you are deducting the excess of bond premium amortization for the accrual period over the qualified stated interest for the period (see Bond Premium Amortization in chapter 3 of Publication 550); or You received tax-exempt interest from private activity bonds issued after August 7, 1986. Tax return for students Schedule B (Form 1040A or 1040). Tax return for students   You must complete Schedule B (Form 1040A or 1040), Part I, if you file Form 1040 and any of the following apply. Tax return for students Your taxable interest income is more than $1,500. Tax return for students You are claiming the interest exclusion under the Education Savings Bond Program (discussed earlier). Tax return for students You received interest from a seller-financed mortgage, and the buyer used the property as a home. Tax return for students You received a Form 1099-INT for U. Tax return for students S. Tax return for students savings bond interest that includes amounts you reported before 2013. Tax return for students You received, as a nominee, interest that actually belongs to someone else. Tax return for students You received a Form 1099-INT for interest on frozen deposits. Tax return for students You received a Form 1099-INT for interest on a bond you bought between interest payment dates. Tax return for students You are reporting OID in an amount less than the amount shown on Form 1099-OID. Tax return for students Statement (2) in the preceding list under Form 1040 is true. Tax return for students In Part I, line 1, list each payer's name and the amount received from each. Tax return for students If you received a Form 1099-INT or Form 1099-OID from a brokerage firm, list the brokerage firm as the payer. Tax return for students Reporting tax-exempt interest. Tax return for students   Total your tax-exempt interest (such as interest or accrued OID on certain state and municipal bonds, including tax-exempt interest on zero coupon municipal bonds) and exempt-interest dividends from a mutual fund as shown on Form 1099-INT, box 8, and on Form 1099-DIV, box 10. Tax return for students Add these amounts to any other tax-exempt interest you received. Tax return for students Report the total on line 8b of Form 1040A or 1040. Tax return for students   If you file Form 1040EZ, enter “TEI” and the amount in the space to the left of line 2. Tax return for students Do not add tax-exempt interest in the total on Form 1040EZ, line 2. Tax return for students   Form 1099-INT, box 9, and Form 1099-DIV, box 11, show the tax-exempt interest subject to the alternative minimum tax on Form 6251. Tax return for students These amounts are already included in the amounts on Form 1099-INT, box 8, and Form 1099-DIV, box 10. Tax return for students Do not add the amounts in Form 1099-INT, box 9 and Form 1099-DIV, box 11 to, or subtract them from, the amounts on Form 1099-INT, box 8, and Form 1099-DIV, box 10. Tax return for students    Do not report interest from an individual retirement account (IRA) as tax-exempt interest. Tax return for students Form 1099-INT. Tax return for students   Your taxable interest income, except for interest from U. Tax return for students S. Tax return for students savings bonds and Treasury obligations, is shown in box 1 of Form 1099-INT. Tax return for students Add this amount to any other taxable interest income you received. Tax return for students You must report all of your taxable interest income even if you do not receive a Form 1099-INT. Tax return for students Generally, contact your financial institution if you do not receive a Form 1099-INT by February 15. Tax return for students Your identifying number may be truncated on any paper Form 1099-INT you receive. Tax return for students   If you forfeited interest income because of the early withdrawal of a time deposit, the deductible amount will be shown on Form 1099-INT in box 2. Tax return for students See Penalty on early withdrawal of savings in chapter 1 of Publication 550. Tax return for students   Box 3 of Form 1099-INT shows the interest income you received from U. Tax return for students S. Tax return for students savings bonds, Treasury bills, Treasury notes, and Treasury bonds. Tax return for students Add the amount shown in box 3 to any other taxable interest income you received, unless part of the amount in box 3 was previously included in your interest income. Tax return for students If part of the amount shown in box 3 was previously included in your interest income, see U. Tax return for students S. Tax return for students savings bond interest previously reported , later. Tax return for students   Box 4 of Form 1099-INT will contain an amount if you were subject to backup withholding. Tax return for students Report the amount from box 4 on Form 1040EZ, line 7; on Form 1040A, line 36; or Form 1040, line 62 (federal income tax withheld). Tax return for students   Box 5 of Form 1099-INT shows investment expenses you may be able to deduct as an itemized deduction. Tax return for students See chapter 28 for more information about investment expenses. Tax return for students   If there are entries in boxes 6 and 7 of Form 1099-INT, you must file Form 1040. Tax return for students You may be able to take a credit for the amount shown in box 6 unless you deduct this amount on line 8 of Schedule A (Form 1040). Tax return for students To take the credit, you may have to file Form 1116, Foreign Tax Credit. Tax return for students For more information, see Publication 514, Foreign Tax Credit for Individuals. Tax return for students U. Tax return for students S. Tax return for students savings bond interest previously reported. Tax return for students   If you received a Form 1099-INT for U. Tax return for students S. Tax return for students savings bond interest, the form may show interest you do not have to report. Tax return for students See Form 1099-INT for U. Tax return for students S. Tax return for students savings bonds interest , earlier, under U. Tax return for students S. Tax return for students Savings Bonds. Tax return for students   On Schedule B (Form 1040A or 1040), Part I, line 1, report all the interest shown on your Form 1099-INT. Tax return for students Then follow these steps. Tax return for students Several lines above line 2, enter a subtotal of all interest listed on line 1. Tax return for students Below the subtotal enter “U. Tax return for students S. Tax return for students Savings Bond Interest Previously Reported” and enter amounts previously reported or interest accrued before you received the bond. Tax return for students Subtract these amounts from the subtotal and enter the result on line 2. Tax return for students More information. Tax return for students   For more information about how to report interest income, see chapter 1 of Publication 550 or the instructions for the form you must file. Tax return for students Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Alivio Tributario en Situaciones de Desastre para Personas y Negocios

English

Las provisiones especiales de impuesto podrían ayudar a los contribuyentes a recuperarse financieramente del impacto de un desastre, especialmente si el Presidente de los Estados Unidos declara su localidad como una Zona de Desastre. Dependiendo de las circunstancias, el IRS puede otorgar tiempo adicional para presentar la declaración federal y pagar los impuestos. Tanto los individuos como los negocios dentro de una zona designada por el Presidente como Zona de Desastre pueden obtener su reembolso más rápido reclamando las pérdidas relacionadas con el desastre en su declaración de impuestos para el año anterior, presentando una declaración enmendada.

 


Pérdidas por hechos fortuitos, desastres y robo, Tema Tributario 515
Cómo Reconstruir Sus Registros

 


Para mayor información:

Agencia Federal para el Manejo de Emergencias (FEMA)
GobiernoUSA.gov sobre Desastres y Emergencias&quot&gtInformación de GobiernoUSA.gov sobre Desastres y Emergencias

 


Publicaciones:

Publicación 547(SPP Hechos Fortuitos, Desastres y Robos
Publicación 584(SP) Registro de Pérdidas por Hechos Fortuitos (Imprevistos), Desastres y Robos (Propiedad de Uso Personal)
Publicación 3067 (SP) - Asistencia del IRS en Desastres
Publicación 1600(SP) Ayuda del IRS para contribuyentes afectados por desastres y pérdidas
Publicación 4492SP - Información para los Contribuyentes Afectados por los Huracanes Katrina, Rita y Wilma

 

 

Page Last Reviewed or Updated: 02-Dec-2013

The Tax Return For Students

Tax return for students 5. Tax return for students   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. Tax return for students You may be able to reduce your federal income tax by claiming one or more of these credits. Tax return for students Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. Tax return for students For more information, see Publication 524, Credit for the Elderly or the Disabled. Tax return for students You can take the credit only if you file Form 1040 or Form 1040A. Tax return for students You cannot take the credit if you file Form 1040EZ or Form 1040NR. Tax return for students Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Tax return for students You are a qualified individual. Tax return for students Your income is not more than certain limits. Tax return for students  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. Tax return for students   Qualified Individual You are a qualified individual for this credit if you are a U. Tax return for students S. Tax return for students citizen or resident alien, and either of the following applies. Tax return for students You were age 65 or older at the end of 2013. Tax return for students You were under age 65 at the end of 2013 and all three of the following statements are true. Tax return for students You retired on permanent and total disability (explained later). Tax return for students You received taxable disability income for 2013. Tax return for students On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Tax return for students Age 65. Tax return for students You are considered to be age 65 on the day before your 65th birthday. Tax return for students Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. Tax return for students Figure 5-A. Tax return for students Are You a Qualified Individual? This image is too large to be displayed in the current screen. Tax return for students Please click the link to view the image. Tax return for students Figure 5-A, Are you a qualified individual? U. Tax return for students S. Tax return for students citizen or resident alien. Tax return for students   You must be a U. Tax return for students S. Tax return for students citizen or resident alien (or be treated as a resident alien) to take the credit. Tax return for students Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Tax return for students Exceptions. Tax return for students   You may be able to take the credit if you are a nonresident alien who is married to a U. Tax return for students S. Tax return for students citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Tax return for students S. Tax return for students resident alien. Tax return for students If you make that choice, both you and your spouse are taxed on your worldwide income. Tax return for students   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Tax return for students S. Tax return for students citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Tax return for students S. Tax return for students resident alien for the entire year. Tax return for students In that case, you may be allowed to take the credit. Tax return for students   For information on these choices, see chapter 1 of Publication 519, U. Tax return for students S. Tax return for students Tax Guide for Aliens. Tax return for students Married persons. Tax return for students   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Tax return for students However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Tax return for students Head of household. Tax return for students   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. Tax return for students See Publication 524 and Publication 501. Tax return for students Under age 65. Tax return for students   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). Tax return for students You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. Tax return for students You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. Tax return for students   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Tax return for students If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Tax return for students Permanent and total disability. Tax return for students   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Tax return for students A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Tax return for students See Physician's statement , later. Tax return for students Substantial gainful activity. Tax return for students   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Tax return for students   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Tax return for students   Substantial gainful activity is not work you do to take care of yourself or your home. Tax return for students It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Tax return for students However, doing this kind of work may show that you are able to engage in substantial gainful activity. Tax return for students    Figure 5-B. Tax return for students Income Limits IF your filing status is. Tax return for students . Tax return for students . Tax return for students THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. Tax return for students . Tax return for students . Tax return for students OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Tax return for students . Tax return for students . Tax return for students single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Tax return for students Physician's statement. Tax return for students   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Tax return for students   You do not have to file this statement with your tax return, but you must keep it for your records. Tax return for students The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. Tax return for students Veterans. Tax return for students   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Tax return for students VA Form 21-0172 must be signed by a person authorized by the VA to do so. Tax return for students You can get this form from your local VA regional office. Tax return for students Physician's statement obtained in earlier year. Tax return for students   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Tax return for students For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. Tax return for students If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. Tax return for students   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. Tax return for students Disability income. Tax return for students   If you are under age 65, you must also have taxable disability income to qualify for the credit. Tax return for students   Disability income must meet the following two requirements. Tax return for students It must be paid under your employer's accident or health plan or pension plan. Tax return for students It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. Tax return for students Payments that are not disability income. Tax return for students   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Tax return for students Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Tax return for students   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Tax return for students Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. Tax return for students Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. Tax return for students Figuring the credit yourself. Tax return for students   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). Tax return for students Next, fill out Schedule R (Form 1040A or 1040), Part III. Tax return for students Credit figured for you. Tax return for students   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). Tax return for students If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. Tax return for students Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. Tax return for students The credit can be up to 35% of your expenses. Tax return for students To qualify, you must pay these expenses so you can work or look for work. Tax return for students If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. Tax return for students If the correct information is not shown, the credit may be reduced or disallowed. Tax return for students You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. Tax return for students For more information, see Publication 503, Child and Dependent Care Expenses. Tax return for students Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. Tax return for students The EIC is available to persons with or without a qualifying child. Tax return for students Credit has no effect on certain welfare benefits. Tax return for students   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Tax return for students These programs include the following. Tax return for students Medicaid and supplemental security income (SSI). Tax return for students Supplemental Nutrition Assistance Program (food stamps). Tax return for students Low-income housing. Tax return for students Temporary Assistance for Needy Families (TANF). Tax return for students  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Tax return for students Check with your local benefit coordinator to find out if your refund will affect your benefits. Tax return for students Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. Tax return for students The specific rules you must meet depend on whether you have a qualifying child. Tax return for students If you have a qualifying child, the rules in Parts A, B, and D apply to you. Tax return for students If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Tax return for students  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. Tax return for students You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). Tax return for students The sections that follow provide additional information for some of the rules. Tax return for students Adjusted gross income (AGI). Tax return for students   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. Tax return for students Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). Tax return for students Table 5-1. Tax return for students Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. Tax return for students Second, you must meet all the rules in one of these columns, whichever applies. Tax return for students Third, you must meet the rule in this column. Tax return for students Part A. Tax return for students  Rules for Everyone Part B. Tax return for students  Rules If You Have a Qualifying Child Part C. Tax return for students  Rules If You Do Not Have a Qualifying Child Part D. Tax return for students  Figuring and Claiming the EIC 1. Tax return for students Your adjusted gross income (AGI) must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Tax return for students 2. Tax return for students You must have a valid social security number. Tax return for students  3. Tax return for students Your filing status cannot be “Married filing separately. Tax return for students ” 4. Tax return for students You must be a U. Tax return for students S. Tax return for students citizen or resident alien all year. Tax return for students  5. Tax return for students You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Tax return for students  6. Tax return for students Your investment income must be $3,300 or less. Tax return for students  7. Tax return for students You must have earned income. Tax return for students 8. Tax return for students Your child must meet the relationship, age, residency, and joint return tests. Tax return for students  9. Tax return for students Your qualifying child cannot be used by more than one person to claim the EIC. Tax return for students  10. Tax return for students You generally cannot be a qualifying child of another person. Tax return for students 11. Tax return for students You must be at least age 25 but under age 65. Tax return for students  12. Tax return for students You cannot be the dependent of another person. Tax return for students  13. Tax return for students You generally cannot be a qualifying child of another person. Tax return for students  14. Tax return for students You must have lived in the United States more than half of the year. Tax return for students 15. Tax return for students Your earned income must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Tax return for students Social security number. Tax return for students   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). Tax return for students Any qualifying child listed on Schedule EIC also must have a valid SSN. Tax return for students (See Qualifying child , later, if you have a qualifying child. Tax return for students )   If your social security card (or your spouse's if you are married filing jointly) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. Tax return for students An example of a federally funded benefit is Medicaid. Tax return for students Investment income. Tax return for students   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. Tax return for students If your investment income is more than $3,300, you cannot claim the credit. Tax return for students For most people, investment income is the total of the following amounts. Tax return for students Taxable interest (line 8a of Form 1040 or 1040A). Tax return for students Tax-exempt interest (line 8b of Form 1040 or 1040A). Tax return for students Dividend income (line 9a of Form 1040 or 1040A). Tax return for students Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Tax return for students  If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Tax return for students   For more information about investment income, see Publication 596, Earned Income Credit. Tax return for students Earned income. Tax return for students   Under Rule 7, you must have earned income to claim the EIC. Tax return for students Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. Tax return for students Earned income includes all of the following types of income. Tax return for students Wages, salaries, tips, and other taxable employee pay. Tax return for students Employee pay is earned income only if it is taxable. Tax return for students Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Tax return for students But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Tax return for students Net earnings from self-employment. Tax return for students Gross income received as a statutory employee. Tax return for students Gross income defined. Tax return for students   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Tax return for students Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Tax return for students If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. Tax return for students Self-employed persons. Tax return for students   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. Tax return for students If you do not, you may not get all the credit to which you are entitled. Tax return for students Disability benefits. Tax return for students   If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Tax return for students Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Tax return for students Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Tax return for students   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Tax return for students It does not matter whether you have reached minimum retirement age. Tax return for students If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. Tax return for students Income that is not earned income. Tax return for students   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Tax return for students Do not include any of these items in your earned income. Tax return for students Workfare payments. Tax return for students   Nontaxable workfare payments are not earned income for the EIC. Tax return for students These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. Tax return for students Qualifying child. Tax return for students   Under Rule 8, your child is a qualifying child if your child meets four tests. Tax return for students The four tests are: Relationship, Age, Residency, and Joint return. Tax return for students   The four tests are illustrated in Figure 5-C. Tax return for students See Publication 596 for more information about each test. Tax return for students Figure 5-C. Tax return for students Tests for Qualifying Child A qualifying child for the EIC is a child who is your. Tax return for students . Tax return for students . Tax return for students Son, daughter, stepchild, foster child,  or a descendant of any of them (for example, your grandchild) OR Brother, sister, half brother, half sister, stepbrother,  stepsister, or a descendant of any of them (for example, your  niece or nephew) was . Tax return for students . Tax return for students . Tax return for students Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR Under age 24 at the end of 2013, a student, and younger than you (or your spouse if filing jointly) OR Permanently and totally disabled at any time during the year, regardless of age who. Tax return for students . Tax return for students . Tax return for students Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. Tax return for students . Tax return for students . Tax return for students Lived with you in the United States for more than half of 2013. Tax return for students  If the child did not live with you for the required time, see Publication 596 for more information. Tax return for students Figuring the EIC To figure the amount of your credit, you have two choices. Tax return for students Have the IRS figure the EIC for you. Tax return for students If you want to do this, see IRS Will Figure the EIC for You in Publication 596. Tax return for students Figure the EIC yourself. Tax return for students If you want to do this, see How To Figure the EIC Yourself in Publication 596. Tax return for students Prev  Up  Next   Home   More Online Publications