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Taxslayer Free For Military

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Taxslayer Free For Military

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

FS-2008-27, December 2008

WASHINGTON — The Heartland Disaster Tax Relief Act of 2008 provides certain tax breaks to help victims of the severe storms, flooding and tornadoes that occurred in Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Missouri, Minnesota, Nebraska and Wisconsin that the federal government declared a disaster during the period beginning May 20, 2008, and ending July 31, 2008.

The recently enacted legislation alters the tax code to help individuals who suffered losses as a result of the Midwestern Disasters and to make it easier for individuals and businesses to engage in charity to benefit those affected by the severe storms, flooding and tornadoes.

The counties in these states that encompass the “Midwestern Disaster Areas” are identified in Tables 1 and 2 at the end of this fact sheet. Taxpayers located in the counties listed in Table 1 are eligible for all portions of the relief made available to the Midwestern Disaster Areas by the recently enacted legislation. Those taxpayers located in the counties listed in Table 2 are eligible only for certain special tax provisions. For a more complete listing of the tax relief provisions that the Heartland Disaster Tax Relief Act of 2008 provides to taxpayers located in the counties listed in Tables 1 and 2, see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas.

Individuals Affected by the Midwestern Disasters

In general, for individuals affected by the Midwestern Disasters, the Heartland Disaster Tax Relief Act of 2008 provides tax-favored early distributions and loans from retirement accounts, eliminates the limitations on claiming losses and permits certain earned income tax credit (EITC) and refundable child tax credit recipients to choose either tax year 2008 or 2007 to determine their earned income and use the more beneficial result.

The recently enacted legislation also allows affected individuals to exclude from income certain cancellations of debt and extends, from two years to five years, the replacement period for converted properties. Portions of the Heartland Disaster Tax Relief Act of 2008 are highlighted below.

Removal of Loss Limitations: For taxpayers who suffered casualty or theft losses to property owned for personal use that are attributable to the Midwestern Disasters, recently enacted legislation removes certain loss limitations. Ordinarily, to figure a deduction for a casualty or theft loss of personal-use property from a particular disaster, taxpayers who itemize must reduce the loss by $100 and also reduce their total casualty and theft losses by 10 percent of their adjusted gross income. Only the excess over these $100 and 10 percent limits is deductible for those taxpayers who itemize their deductions. The recently enacted legislation, however, removes these limits for the Midwestern Disasters on losses of personal-use property, so that the entire amount of unreimbursed losses is deductible if a taxpayer itemizes.

To qualify, a loss must arise in a Midwestern Disaster Area and be attributable to the severe storms, flooding or tornadoes for which the Disaster Declarations identified in Tables 1 and 2 were issued. Note: The new increased standard deduction for net disaster losses does not apply to losses in Midwestern disaster areas.

Cancellation of Debt: Individuals whose main home was located in a Midwestern Disaster Area on the date that a disaster was declared for the county in which they live, will not include in income any non-business debt, such as a mortgage, that is canceled on or after the applicable disaster date and before Jan. 1, 2010, provided that the debt is not secured by property located outside the Midwestern Disaster Areas. If the individual’s main home was located in a Midwestern Disaster Area as shown in Table 2, the individual must also have had an economic loss because of the severe storms, floods or tornadoes. Examples of economic losses include, but are not limited to:

  • Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind or other cause;
  • Loss related to displacement from one’s home; or
  • Loss of livelihood due to temporary or permanent layoffs.

Usually, the cancellation of debt is treated as income by the person for whom the debt is forgiven.

Earned Income Tax Credit and Refundable Child Tax Credit: The recently enacted legislation allows eligible individuals to choose to calculate their earned income tax credit (EITC) or refundable child tax credit using their prior year’s earned income. An eligible individual is one whose earned income in 2008 is less than their earned income in 2007 and their main home on the applicable disaster date was in a Midwestern Disaster Area as shown in Table 1 or their main home on the applicable disaster date was in a Midwestern Disaster Area as shown in Table 2 and they were displaced from that home because of the severe storms, tornadoes or flooding. Taxpayers eligible to make the choice should figure their EITC and refundable child tax credit using their earned income for each year before making the choice to see which gives them the higher credits.

Education Credits: The recently enacted legislation provides educational assistance to students enrolled and paying tuition at eligible educational institutions located in Midwestern Disaster Areas counties identified in Table 1 for any tax year beginning in 2008 or 2009. Basically, the new legislation expands the Hope and Lifetime Learning educational credits in the following way:

  • The Hope Credit is expanded to 100 percent of the first $2,400 in eligible expenses plus 50 percent of the next $2,400 – doubling the maximum Hope Credit from $1,800 to $3,600 for each eligible student.
  • The Lifetime Learning Credit is expanded from 20 percent to 40 percent of the first $10,000 in eligible expenses.

Exemption for Taxpayers Housing Individuals Displaced by the Disasters: Taxpayers who provided housing in their main homes to individuals displaced by the severe storms, tornadoes or flooding that occurred in the Midwestern Disaster Areas may be able to claim an additional exemption amount of $500 for each such displaced individual. The additional exemption amount is allowable once per taxpayer for a specific Midwestern Disaster displaced individual in 2008 or 2009, but not in both years. The maximum additional exemption amount that can be claimed for all displaced individuals is $2,000, or $1,000 if married filing separately. Any exemption amount claimed in 2008 will reduce the $2,000 maximum for 2009.

To qualify as a displaced individual, the individual must have had his or her main home in a Midwestern Disaster Area on the applicable disaster date, and he or she must have been displaced from that home. If the displaced individual’s main home was located in a Midwestern Disaster Area as shown in Table 2, that home must have been damaged by the severe storms, tornadoes or flooding or the individual must have been evacuated from the home because of the severe storms, tornadoes or flooding. In addition, the displaced individual must have been provided housing in the taxpayer’s main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed. The displaced individual cannot be the taxpayer’s spouse or dependent. 

This benefit applies to the counties listed in Tables 1 and 2. More detailed information on claiming the additional exemption can be found in Publication 4492-B.

Recapture of Federal Mortgage Subsidy: Generally, taxpayers who financed their homes under a federally-subsidized program may have to repay all or part of the benefit they received from that program when they sell or otherwise dispose of their home. This repayment is known, technically, as recapture.  Taxpayers do not, however, have to recapture any benefit if their mortgage loan was a qualified home improvement loan of not more than $15,000. The recently enacted legislation provides for this amount to be increased to $150,000, if the loan was provided prior to 2011 and was used to alter, repair, or improve an existing owner-occupied residence in a Midwestern Disaster Area as shown in Table 1. 

Retirement Funds

To help victims of the severe storms, flooding and tornadoes in the Midwestern Disaster Areas, the recently enacted legislation provides certain tax-favored treatment for early distributions, plan loans and re-contributions. These benefits apply to the counties listed in Tables 1 and 2.

Qualified Disaster Recovery Assistance Distributions: A qualified disaster recovery distribution is any distribution from an eligible retirement plan that meets the following requirements:  (1) the distribution was made on or after an applicable disaster date listed in Tables 1 or 2 and before Jan. 1, 2010; (2) the distribution was made to a taxpayer whose main home was located in a Midwestern Disaster Area on the applicable disaster date; and (3) the taxpayer sustained an economic loss because of the severe storms, tornadoes or flooding that affected the Midwestern Disaster Areas. If these requirements are met, the taxpayer can generally designate any distribution from an eligible retirement plan as a qualified disaster recovery assistance distribution, regardless of whether the distribution was made on account of the severe storms, tornadoes or flooding.  The total amount of tax-favored distributions an individual can receive from all plans, annuities or IRAs is $100,000.

Taxation of Qualified Disaster Recovery Assistance Distributions: Qualified disaster recovery assistance distributions are included in income in equal amounts over three years. The taxpayer can, however, elect to include the entire distribution income in the year it was received. An eligible individual who receives qualified disaster recovery assistance distributions does not have to pay the 10% additional tax on early distributions (or the additional 25% tax for certain distributions from SIMPLE IRAs). Under the new law, qualified disaster recovery assistance distributions are not subject to the mandatory 20% withholding. Any distributions received in excess of the $100,000 qualified disaster recovery assistance distribution limit may be subject to the additional tax on early distributions. 

Repayment of Qualified Disaster Recovery Assistance Distributions: Taxpayers may choose to repay any portion of a qualified disaster recovery distribution that is eligible for tax-free rollover treatment into an eligible retirement plan within three years from the date of the distribution. The distribution will be treated as though it were paid in a direct rollover (note that for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover). To report a re-contribution, the eligible individual must also file a Form 8930, Qualified Disaster Recovery Assistance Retirement Plan Distributions and Repayments. Refer to Publication 4492-B for additional information on repaying qualified disaster recovery assistance distributions and for a list of the qualified disaster recovery assistance distributions that cannot be repaid.

Repayment of Qualified Distributions for the Purchase or Construction of a Main Home: An individual who received a qualified distribution to purchase or construct a main home in a Midwestern disaster area can repay part or all of that distribution to an eligible retirement plan on or after the applicable disaster date, but no later than March 3, 2009. To be a qualified distribution, the distribution must meet all of the following requirements:  (1) the distribution is a hardship distribution from a 401(k) plan or a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA; (2) the distribution was received within six months prior to the day after the applicable disaster date; and (3) the distribution was used to purchase or construct a main home in a Midwestern Disaster Area that was not purchased or constructed because of the severe storms, tornadoes or flooding. 
Amounts that are repaid before March 4, 2009, are treated as a qualified rollover and are not included in income (note that for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover). If the qualified distribution is not repaid by March 4, 2009, the distribution may be taxable for 2007 or 2008, as well as subject to the additional 10% tax on early distributions (or the additional 25% tax for certain SIMPLE IRAs). Any repayments must be reported on Form 8930, Qualified Disaster Recovery Assistance Retirement Plan Distributions and Repayments.  

Retirement Plan Loans: Under the new law, the allowable retirement plan loan amount for eligible individuals is increased from $50,000 to $100,000. To figure the dollar limit, an eligible individual would start with (a) $100,000 and subtract the highest outstanding balance of loans from these plans during the prior year and compare that figure to (b) the eligible individual’s vested benefit under the plan. Whichever figure is less is the limit that the eligible individual can borrow from the employer’s plans without a tax consequence.

For an eligible individual, payments on retirement plan loans outstanding on or after the applicable disaster date may be suspended for one year by the plan administrator. To qualify for suspension, the due date for any loan payment must occur during the period beginning on the applicable disaster date and ending on Dec. 31, 2009. 

Charity Encouraged by New Law

To encourage charity, the recently enacted legislation suspends the limits on certain charitable contributions, creates an exemption for those housing Midwestern Disaster displaced individuals, increases the standard mileage rate for charitable use of vehicles and excludes from gross income mileage reimbursements to charitable volunteers.

Suspension of Charitable Limits for Certain Charitable Contributions: In the case of an individual, the recently enacted legislation allows a deduction for qualified contributions up to the amount by which the taxpayer’s contribution base – adjusted gross income – exceeds the deduction for other charitable contributions. Contributions in excess of this amount are generally carried over to succeeding taxable years. The recently enacted legislation allows corporations to elect to deduct qualified cash contributions without regard to the 10% of taxable income limit.

Qualified contributions are defined as cash contributions to a charitable organization described in section 170(b)(1)(A) (other than a supporting organization described in section 509(a)(3)), for relief efforts in one or more Midwestern Disaster Areas made after May 1, 2008, and before Jan. 1, 2009. Contributions of non-cash property, such as securities, are not qualified contributions.

The charitable contribution deduction up to the amount of qualified contributions (as defined above) paid during the year is not treated as an itemized deduction for purposes of the overall limitation on itemized deductions. This benefit applies only to the counties listed in Table 1.

Increase in the Standard Mileage Rate for Charitable Use of Vehicles: The recently enacted legislation provides special standard mileage rates for taxpayers who used their vehicles to provide charitable services related solely to the severe storms, tornadoes and flooding that occurred in the Midwestern Disaster Areas during the period May 2, 2008, through Dec. 31, 2008.  The special rate is 36 cents per mile for the period May 2, 2008, through June 30, 2008. For the period July 1, 2008, through Dec. 31, 2008, the special rate is 41 cents per mile.

Taxpayers may also exclude from income any amounts received as mileage reimbursement for the use of a private passenger automobile for the benefit of a qualified charitable organization in responding to the severe storms, tornadoes and flooding that occurred in the Midwestern Disaster Areas during the period May 2, 2008, through Dec. 31, 2008. Taxpayers cannot claim a deduction or credit for any amounts excluded and must keep records of miles driven, time, place (or use) and purpose of the mileage. The amount that can be excluded from income cannot exceed 50.5 cents per mile for the period May 2, 2008, through June 30, 2008; and 58.5 cents per mile for the period July 1, 2008, through Dec. 31, 2008. This benefit applies only to the counties listed in Table 1.

Table 1
Taxpayers located in these counties are eligible for all portions of relief identified in this document.

Applicable Disaster Date*

State 

Affected Counties - Midwestern Disaster Areas 

 5/2/2008  Arkansas Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline and Van Buren.
 6/1/2008  Illinois Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago.
 6/6/2008  Indiana Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington and Wayne.
 5/25/2008  Iowa Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, Worth and Wright.
 5/10/2008  Missouri Barry, Jasper and Newton.
 6/1/2008  Missouri Adair, Andrew, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis, Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St. Charles, Stone, Taney, Vernon and Webster.
 5/22/2008  Nebraska Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Platte, Richardson, Sarpy and Saunders.
 6/5/2008  Wisconsin Adams, Calumet, Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha and Winnebago.

 

Table 2
Taxpayers located in the counties listed below are eligible for all of the special tax provisions identified in this fact sheet except the education credits, charitable giving incentives (suspension of charitable limits and increase in standard mileage rates) and the recapture of federal mortgage subsidy.**

Applicable Disaster Date*

State

Affected Counties - Midwestern Disaster Areas

 6/1/2008  Illinois Greene, Madison, Monroe, Pike, Randolph, St. Clair and Scott.
 6/6/2008  Indiana Benton, Boone, Fountain, Franklin, Jay, Montgomery, Ohio, Switzerland, Union and Wabash.
 5/25/2008  Iowa Carroll, Cherokee, Lyon, Palo Alto, Pocahontas, Taylor and Wayne.
 5/22/2008  Kansas Barber, Barton, Bourbon, Brown, Butler, Chautauqua, Cherokee, Clark, Clay, Comanche, Cowley, Crawford, Decatur, Dickinson, Edwards, Elk, Ellis, Ellsworth, Franklin, Gove, Graham, Harper, Haskell, Hodgeman, Jackson, Jewell, Kingman, Kiowa, Lane, Linn, Logan, Mitchell, Montgomery, Ness, Norton, Osborne, Pawnee, Phillips, Pratt, Reno, Republic, Riley, Rooks, Rush, Saline, Seward, Sheridan, Smith, Stafford, Sumner, Thomas, Trego, Wallace and Wilson.
 6/6/2008  Michigan Allegan, Barry, Eaton, Ingham, Lake, Manistee, Mason, Missaukee, Osceola, Ottawa, Saginaw and Wexford.
 6/7/2008  Minnesota Cook, Fillmore, Freeborn, Houston, Mower and Nobles.
 6/1/2008  Missouri Atchison, Audrain, Bates, Buchanan, Cape Girardeau, Carroll, Christian, Daviess, Grundy, Howard, Jefferson, Knox, Mercer, Miller, Mississippi, Morgan, New Madrid, Pemiscot, Perry, Pettis, Platte, Polk, Randolph, Ray, Saline, Schuyler, Scotland, Scott, Shelby, St. Genevieve, St. Louis, Sullivan, the Independent City of St. Louis and Worth.
 4/23/2008  Nebraska Gage, Johnson, Morrill, Nemaha and Pawnee.
 5/22/2008  Nebraska Adams, Blaine, Boone, Boyd, Brown, Burt, Cass, Chase, Cherry, Cuming, Dundy, Fillmore, Frontier, Furnas, Garfield, Gosper, Greeley, Hall, Hayes, Howard, Johnson, Keya Paha, Lincoln, Logan, Loup, Merrick, McPherson, Morrill, Nance, Nemaha, Otoe, Phelps, Polk, Red Willow, Rock, Saline, Seward, Sherman, Stanton, Thayer, Thomas, Thurston, Valley, Webster, Wheeler and York.
 6/27/2008  Nebraska Dodge, Douglas, Sarpy and Saunders.
 6/5/2008  Wisconsin Lafayette.


* In some cases the date will be later due to the continuation of the severe storms, tornadoes or flooding that began on the above date. The Federal Emergency Management Agency has more details.

** See Pub. 4492-B for a more complete listing of the tax provisions that are available to taxpayers located in the affected counties in the Midwestern Disaster Areas listed in Tables 1 and 2.

Page Last Reviewed or Updated: 18-Aug-2012

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Taxslayer free for military Make a payment using one of several safe and convenient electronic payment options available on IRS. Taxslayer free for military gov. Taxslayer free for military Select the Payment tab on the front page of IRS. Taxslayer free for military gov for more information. Taxslayer free for military Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Taxslayer free for military Figure your income tax withholding with the IRS Withholding Calculator on IRS. Taxslayer free for military gov. Taxslayer free for military Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Taxslayer free for military Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Taxslayer free for military gov. Taxslayer free for military Request an Electronic Filing PIN by going to IRS. Taxslayer free for military gov and entering Electronic Filing PIN in the search box. Taxslayer free for military Download forms, instructions and publications, including accessible versions for people with disabilities. Taxslayer free for military Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Taxslayer free for military gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Taxslayer free for military An employee can answer questions about your tax account or help you set up a payment plan. Taxslayer free for military Before you visit, check the Office Locator on IRS. Taxslayer free for military gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Taxslayer free for military If you have a special need, such as a disability, you can request an appointment. Taxslayer free for military Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Taxslayer free for military Apply for an Employer Identification Number (EIN). Taxslayer free for military Go to IRS. Taxslayer free for military gov and enter Apply for an EIN in the search box. Taxslayer free for military Read the Internal Revenue Code, regulations, or other official guidance. Taxslayer free for military Read Internal Revenue Bulletins. Taxslayer free for military Sign up to receive local and national tax news and more by email. Taxslayer free for military Just click on “subscriptions” above the search box on IRS. Taxslayer free for military gov and choose from a variety of options. Taxslayer free for military    Phone. Taxslayer free for military You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Taxslayer free for military Download the free IRS2Go app from the iTunes app store or from Google Play. Taxslayer free for military Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Taxslayer free for military gov, or download the IRS2Go app. Taxslayer free for military Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Taxslayer free for military The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Taxslayer free for military Most VITA and TCE sites offer free electronic filing. Taxslayer free for military Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Taxslayer free for military Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Taxslayer free for military Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Taxslayer free for military If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Taxslayer free for military The IRS issues more than 9 out of 10 refunds in less than 21 days. Taxslayer free for military Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Taxslayer free for military Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Taxslayer free for military The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Taxslayer free for military Note, the above information is for our automated hotline. Taxslayer free for military Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Taxslayer free for military Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Taxslayer free for military You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Taxslayer free for military It can take up to 3 weeks from the date you mailed it to show up in our system. Taxslayer free for military Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Taxslayer free for military You should receive your order within 10 business days. Taxslayer free for military Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Taxslayer free for military If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Taxslayer free for military Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Taxslayer free for military The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Taxslayer free for military These individuals can also contact the IRS through relay services such as the Federal Relay Service. Taxslayer free for military    Walk-in. Taxslayer free for military You can find a selection of forms, publications and services — in-person. Taxslayer free for military Products. Taxslayer free for military You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Taxslayer free for military Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Taxslayer free for military Services. Taxslayer free for military You can walk in to your local TAC for face-to-face tax help. Taxslayer free for military An employee can answer questions about your tax account or help you set up a payment plan. Taxslayer free for military Before visiting, use the Office Locator tool on IRS. Taxslayer free for military gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Taxslayer free for military    Mail. Taxslayer free for military You can send your order for forms, instructions, and publications to the address below. Taxslayer free for military You should receive a response within 10 business days after your request is received. Taxslayer free for military  Internal Revenue Service 1201 N. Taxslayer free for military Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Taxslayer free for military The Taxpayer Advocate Service (TAS) is your voice at the IRS. Taxslayer free for military Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Taxslayer free for military   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Taxslayer free for military We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Taxslayer free for military You face (or your business is facing) an immediate threat of adverse action. Taxslayer free for military You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Taxslayer free for military   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Taxslayer free for military Here's why we can help: TAS is an independent organization within the IRS. Taxslayer free for military Our advocates know how to work with the IRS. Taxslayer free for military Our services are free and tailored to meet your needs. Taxslayer free for military We have offices in every state, the District of Columbia, and Puerto Rico. Taxslayer free for military   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Taxslayer free for military   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Taxslayer free for military If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Taxslayer free for military Low Income Taxpayer Clinics (LITCs) Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Taxslayer free for military Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Taxslayer free for military Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Taxslayer free for military Small Business Administration The Small Business Administration (SBA) offers training and educational programs, counseling services, financial programs, and contract assistance for small business owners. Taxslayer free for military The SBA also has publications and videos on a variety of business topics. Taxslayer free for military The following briefly describes assistance provided by the SBA. Taxslayer free for military Small Business Development Centers (SBDCs). Taxslayer free for military   SBDCs provide counseling, training, and technical services to current and prospective small business owners who cannot afford the services of a private consultant. Taxslayer free for military Help is available when beginning, improving, or expanding a small business. Taxslayer free for military Business Information Centers (BICs). Taxslayer free for military   BICs offer a small business reference library, management video tapes, and computer technology to help plan a business. Taxslayer free for military BICs also offer one-on-one assistance. Taxslayer free for military Individuals who are in business or are interested in starting a business can use BICs as often as they wish at no charge. Taxslayer free for military Service Corps of Retired Executives (SCORE). Taxslayer free for military   SCORE provides small business counseling and training to current and prospective small business owners. Taxslayer free for military SCORE is made up of current and former business people who offer their expertise and knowledge to help people start, manage, and expand a small business. Taxslayer free for military SCORE also offers a variety of small business workshops. Taxslayer free for military Internet. Taxslayer free for military    You can visit the SBA website at www. Taxslayer free for military sba. Taxslayer free for military gov. Taxslayer free for military While visiting the SBA website, you can find a variety of information of interest to small business owners. Taxslayer free for military Phone. Taxslayer free for military    Call the SBA Answer Desk at 1-800-U-ASK-SBA (1-800-827-5722) for general information about programs available to assist small business owners. Taxslayer free for military Walk-in. Taxslayer free for military   You can walk in to a Small Business Development Center or Business Information Center to request assistance with your small business. Taxslayer free for military To find the location nearest you, visit the SBA website or call the SBA Answer Desk. Taxslayer free for military Other Federal Agencies Other federal agencies also publish publications and pamphlets to assist small businesses. Taxslayer free for military Most of these are available from the Superintendent of Documents at the Government Printing Office. Taxslayer free for military You can get information and order these publications and pamphlets in several ways. Taxslayer free for military Internet. Taxslayer free for military   You can visit the GPO website at  www. Taxslayer free for military access. Taxslayer free for military gpo. Taxslayer free for military gov. Taxslayer free for military Mail. Taxslayer free for military   Write to the GPO at the following address. Taxslayer free for military  Superintendent of Documents U. Taxslayer free for military S. Taxslayer free for military Government Printing Office P. Taxslayer free for military O. Taxslayer free for military Box 979050 St. Taxslayer free for military Louis, MO 63917-9000 Phone. Taxslayer free for military   Call the GPO toll-free at 1-866-512-1800 or at 202-512-1800 from the Washington, DC, area. Taxslayer free for military Prev  Up  Next   Home   More Online Publications