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Turbo Tax Amended Return

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Turbo Tax Amended Return

Turbo tax amended return 5. Turbo tax amended return   Wages, Salaries, and Other Earnings Table of Contents Reminder Introduction Useful Items - You may want to see: Employee CompensationBabysitting. Turbo tax amended return 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. Turbo tax amended return   If you are a U. Turbo tax amended return S. Turbo tax amended return 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. Turbo tax amended return S. Turbo tax amended return law. Turbo tax amended return 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. Turbo tax amended return 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). Turbo tax amended return If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. Turbo tax amended return For details, see Publication 54, Tax Guide for U. Turbo tax amended return S. Turbo tax amended return Citizens and Resident Aliens Abroad. Turbo tax amended return Introduction This chapter discusses compensation received for services as an employee, such as wages, salaries, and fringe benefits. Turbo tax amended return The following topics are included. Turbo tax amended return Bonuses and awards. Turbo tax amended return Special rules for certain employees. Turbo tax amended return Sickness and injury benefits. Turbo tax amended return The chapter explains what income is included in the employee's gross income and what is not included. Turbo tax amended return 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. Turbo tax amended return Form W-2. Turbo tax amended return    If you are an employee, you should receive Form W-2 from your employer showing the pay you received for your services. Turbo tax amended return 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. Turbo tax amended return   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. Turbo tax amended return These wages must be included on line 7 of Form 1040. Turbo tax amended return See Form 8919 for more information. Turbo tax amended return Childcare providers. Turbo tax amended return    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. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return Babysitting. Turbo tax amended return   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. Turbo tax amended return Miscellaneous Compensation This section discusses different types of employee compensation. Turbo tax amended return Advance commissions and other earnings. Turbo tax amended return   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. Turbo tax amended return    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. Turbo tax amended return 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. Turbo tax amended return See Repayments in chapter 12. Turbo tax amended return Allowances and reimbursements. Turbo tax amended return    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463. Turbo tax amended return If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. Turbo tax amended return Back pay awards. Turbo tax amended return    Include in income amounts you are awarded in a settlement or judgment for back pay. Turbo tax amended return These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. Turbo tax amended return They should be reported to you by your employer on Form W-2. Turbo tax amended return Bonuses and awards. Turbo tax amended return   Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. Turbo tax amended return These include prizes such as vacation trips for meeting sales goals. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return Employee achievement award. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return Your employer can tell you whether your award is a qualified plan award. Turbo tax amended return 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. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return Example. Turbo tax amended return 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. Turbo tax amended return Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. Turbo tax amended return 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. Turbo tax amended return Differential wage payments. Turbo tax amended return   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. Turbo tax amended return These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. Turbo tax amended return The payments are reported as wages on Form W-2. Turbo tax amended return Government cost-of-living allowances. Turbo tax amended return   Most payments received by U. Turbo tax amended return S. Turbo tax amended return Government civilian employees for working abroad are taxable. Turbo tax amended return However, certain cost-of-living allowances are tax free. Turbo tax amended return Publication 516, U. Turbo tax amended return S. Turbo tax amended return Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Turbo tax amended return Nonqualified deferred compensation plans. Turbo tax amended return   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. Turbo tax amended return This amount is shown on Form W-2, box 12, using code Y. Turbo tax amended return This amount is not included in your income. Turbo tax amended return   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. Turbo tax amended return This amount is included in your wages shown on Form W-2, box 1. Turbo tax amended return It is also shown on Form W-2, box 12, using code Z. Turbo tax amended return Note received for services. Turbo tax amended return    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. Turbo tax amended return 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. Turbo tax amended return Do not include that part again in your income. Turbo tax amended return Include the rest of the payment in your income in the year of payment. Turbo tax amended return   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. Turbo tax amended return Severance pay. Turbo tax amended return   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. Turbo tax amended return Accrued leave payment. Turbo tax amended return    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. Turbo tax amended return   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. Turbo tax amended return You can reduce gross wages by the amount you repaid in the same tax year in which you received it. Turbo tax amended return 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. Turbo tax amended return Outplacement services. Turbo tax amended return   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. Turbo tax amended return    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). Turbo tax amended return Sick pay. Turbo tax amended return   Pay you receive from your employer while you are sick or injured is part of your salary or wages. Turbo tax amended return In addition, you must include in your income sick pay benefits received from any of the following payers: A welfare fund. Turbo tax amended return A state sickness or disability fund. Turbo tax amended return An association of employers or employees. Turbo tax amended return An insurance company, if your employer paid for the plan. Turbo tax amended return However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. Turbo tax amended return For more information, see Publication 525. Turbo tax amended return Social security and Medicare taxes paid by employer. Turbo tax amended return   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. Turbo tax amended return The payment also is treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. Turbo tax amended return However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. Turbo tax amended return Stock appreciation rights. Turbo tax amended return   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. Turbo tax amended return 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. Turbo tax amended return You include the cash payment in your income in the year you use the right. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return Accounting period. Turbo tax amended return   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. Turbo tax amended return Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. Turbo tax amended return The general rule: benefits are reported for a full calendar year (January 1–December 31). Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return  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. Turbo tax amended return   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). Turbo tax amended return Form W-2. Turbo tax amended return   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. Turbo tax amended return Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). Turbo tax amended return 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). Turbo tax amended return 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. Turbo tax amended return Benefits you receive from the plan may be taxable, as explained later under Sickness and Injury Benefits . Turbo tax amended return 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. Turbo tax amended return Long-term care coverage. Turbo tax amended return    Contributions by your employer to provide coverage for long-term care services generally are not included in your income. Turbo tax amended return However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. Turbo tax amended return This amount will be reported as wages in box 1 of your Form W-2. Turbo tax amended return   Contributions you make to the plan are discussed in Publication 502, Medical and Dental Expenses. Turbo tax amended return Archer MSA contributions. Turbo tax amended return    Contributions by your employer to your Archer MSA generally are not included in your income. Turbo tax amended return Their total will be reported in box 12 of Form W-2 with code R. Turbo tax amended return You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Turbo tax amended return File the form with your return. Turbo tax amended return Health flexible spending arrangement (health FSA). Turbo tax amended return   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. Turbo tax amended return Note. Turbo tax amended return Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. Turbo tax amended return The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. Turbo tax amended return For more information, see Notice 2012-40, 2012-26 I. Turbo tax amended return R. Turbo tax amended return B. Turbo tax amended return 1046, available at www. Turbo tax amended return irs. Turbo tax amended return gov/irb/2012-26 IRB/ar09. Turbo tax amended return html. Turbo tax amended return Health reimbursement arrangement (HRA). Turbo tax amended return   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. Turbo tax amended return Health savings accounts (HSA). Turbo tax amended return   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. Turbo tax amended return Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. Turbo tax amended return Contributions made by your employer are not included in your income. Turbo tax amended return Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. Turbo tax amended return Distributions not used for qualified medical expenses are included in your income. Turbo tax amended return See Publication 969 for the requirements of an HSA. Turbo tax amended return   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. Turbo tax amended return The contributions are treated as a distribution of money and are not included in the partner's gross income. Turbo tax amended return 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. Turbo tax amended return In both situations, the partner can deduct the contribution made to the partner's HSA. Turbo tax amended return   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. Turbo tax amended return The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. Turbo tax amended return Qualified HSA funding distribution. Turbo tax amended return   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. Turbo tax amended return See Publication 590 for the requirements for these qualified HSA funding distributions. Turbo tax amended return Failure to maintain eligibility. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return This income is also subject to an additional 10% tax. Turbo tax amended return 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. Turbo tax amended return See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Turbo tax amended return Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. Turbo tax amended return They also are included as social security and Medicare wages in boxes 3 and 5. Turbo tax amended return However, they are not included as wages in box 1. Turbo tax amended return To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. Turbo tax amended return File the form with your return. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return Holiday gifts. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. Turbo tax amended return For more information, see Publication 970, Tax Benefits for Education. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return For exceptions, see Entire cost excluded , and Entire cost taxed , later. Turbo tax amended return 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. Turbo tax amended return Also, it is shown separately in box 12 with code C. Turbo tax amended return Group-term life insurance. Turbo tax amended return   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. Turbo tax amended return Permanent benefits. Turbo tax amended return   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. Turbo tax amended return Your employer should be able to tell you the amount to include in your income. Turbo tax amended return Accidental death benefits. Turbo tax amended return   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. Turbo tax amended return Former employer. Turbo tax amended return   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. Turbo tax amended return Also, it is shown separately in box 12 with code C. Turbo tax amended return Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. Turbo tax amended return You must pay these taxes with your income tax return. Turbo tax amended return Include them on line 60, Form 1040, and follow the instructions for line 60. Turbo tax amended return For more information, see the Instructions for Form 1040. Turbo tax amended return Two or more employers. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return You must figure how much to include in your income. Turbo tax amended return 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. Turbo tax amended return Figuring the taxable cost. Turbo tax amended return   Use the following worksheet to figure the amount to include in your income. Turbo tax amended return     Worksheet 5-1. Turbo tax amended return Figuring the Cost of Group-Term Life Insurance To Include in Income 1. Turbo tax amended return Enter the total amount of your insurance coverage from your employer(s) 1. Turbo tax amended return   2. Turbo tax amended return Limit on exclusion for employer-provided group-term life insurance coverage 2. Turbo tax amended return 50,000 3. Turbo tax amended return Subtract line 2 from line 1 3. Turbo tax amended return   4. Turbo tax amended return Divide line 3 by $1,000. Turbo tax amended return Figure to the nearest tenth 4. Turbo tax amended return   5. Turbo tax amended return Go to Table 5-1. Turbo tax amended return 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. Turbo tax amended return   6. Turbo tax amended return Multiply line 4 by line 5 6. Turbo tax amended return   7. Turbo tax amended return Enter the number of full months of coverage at this cost. Turbo tax amended return 7. Turbo tax amended return   8. Turbo tax amended return Multiply line 6 by line 7 8. Turbo tax amended return   9. Turbo tax amended return Enter the premiums you paid per month 9. Turbo tax amended return       10. Turbo tax amended return Enter the number of months you paid the premiums 10. Turbo tax amended return       11. Turbo tax amended return Multiply line 9 by line 10. Turbo tax amended return 11. Turbo tax amended return   12. Turbo tax amended return Subtract line 11 from line 8. Turbo tax amended return Include this amount in your income as wages 12. Turbo tax amended return      Table 5-1. Turbo tax amended return Cost of $1,000 of Group-Term Life Insurance for One Month Age Cost Under 25 $. Turbo tax amended return 05 25 through 29 . Turbo tax amended return 06 30 through 34 . Turbo tax amended return 08 35 through 39 . Turbo tax amended return 09 40 through 44 . Turbo tax amended return 10 45 through 49 . Turbo tax amended return 15 50 through 54 . Turbo tax amended return 23 55 through 59 . Turbo tax amended return 43 60 through 64 . Turbo tax amended return 66 65 through 69 1. Turbo tax amended return 27 70 and older 2. Turbo tax amended return 06 Example. Turbo tax amended return You are 51 years old and work for employers A and B. Turbo tax amended return Both employers provide group-term life insurance coverage for you for the entire year. Turbo tax amended return Your coverage is $35,000 with employer A and $45,000 with employer B. Turbo tax amended return You pay premiums of $4. Turbo tax amended return 15 a month under the employer B group plan. Turbo tax amended return You figure the amount to include in your income as shown in Worksheet 5-1. Turbo tax amended return Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated, later. Turbo tax amended return Worksheet 5-1. Turbo tax amended return Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated 1. Turbo tax amended return Enter the total amount of your insurance coverage from your employer(s) 1. Turbo tax amended return 80,000 2. Turbo tax amended return Limit on exclusion for employer-provided group-term life insurance coverage 2. Turbo tax amended return 50,000 3. Turbo tax amended return Subtract line 2 from line 1 3. Turbo tax amended return 30,000 4. Turbo tax amended return Divide line 3 by $1,000. Turbo tax amended return Figure to the nearest tenth 4. Turbo tax amended return 30. Turbo tax amended return 0 5. Turbo tax amended return Go to Table 5-1. Turbo tax amended return 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. Turbo tax amended return . Turbo tax amended return 23 6. Turbo tax amended return Multiply line 4 by line 5 6. Turbo tax amended return 6. Turbo tax amended return 90 7. Turbo tax amended return Enter the number of full months of coverage at this cost. Turbo tax amended return 7. Turbo tax amended return 12 8. Turbo tax amended return Multiply line 6 by line 7 8. Turbo tax amended return 82. Turbo tax amended return 80 9. Turbo tax amended return Enter the premiums you paid per month 9. Turbo tax amended return 4. Turbo tax amended return 15     10. Turbo tax amended return Enter the number of months you paid the premiums 10. Turbo tax amended return 12     11. Turbo tax amended return Multiply line 9 by line 10. Turbo tax amended return 11. Turbo tax amended return 49. Turbo tax amended return 80 12. Turbo tax amended return Subtract line 11 from line 8. Turbo tax amended return Include this amount in your income as wages 12. Turbo tax amended return 33. Turbo tax amended return 00 Entire cost excluded. Turbo tax amended return   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. Turbo tax amended return You are permanently and totally disabled and have ended your employment. Turbo tax amended return Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. Turbo tax amended return 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. Turbo tax amended return (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. Turbo tax amended return ) 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. Turbo tax amended return Entire cost taxed. Turbo tax amended return   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. Turbo tax amended return You are a key employee and your employer's plan discriminates in favor of key employees. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. Turbo tax amended return Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. Turbo tax amended return 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. Turbo tax amended return Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. Turbo tax amended return 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. Turbo tax amended return Exclusion limit. Turbo tax amended return   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. Turbo tax amended return   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. Turbo tax amended return   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. Turbo tax amended return   If the benefits have a value that is more than these limits, the excess must be included in your income. Turbo tax amended return You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. Turbo tax amended return Commuter highway vehicle. Turbo tax amended return   This is a highway vehicle that seats at least six adults (not including the driver). Turbo tax amended return 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). Turbo tax amended return Transit pass. Turbo tax amended return   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. Turbo tax amended return Qualified parking. Turbo tax amended return   This is parking provided to an employee at or near the employer's place of business. Turbo tax amended return 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. Turbo tax amended return It does not include parking at or near the employee's home. Turbo tax amended return Qualified bicycle commuting. Turbo tax amended return   This is reimbursement based on the number of qualified bicycle commuting months for the year. Turbo tax amended return 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. Turbo tax amended return The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. Turbo tax amended return Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. Turbo tax amended return (Your employer can tell you whether your retirement plan is qualified. Turbo tax amended return ) However, the cost of life insurance coverage included in the plan may have to be included. Turbo tax amended return See Group-Term Life Insurance , earlier, under Fringe Benefits. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return For information on distributions from retirement plans, see Publication 575, Pension and Annuity Income (or Publication 721, Tax Guide to U. Turbo tax amended return S. Turbo tax amended return Civil Service Retirement Benefits, if you are a federal employee or retiree). Turbo tax amended return Elective deferrals. Turbo tax amended return   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. Turbo tax amended return The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. Turbo tax amended return An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. Turbo tax amended return However, it is included in wages subject to social security and Medicare taxes. Turbo tax amended return   Elective deferrals include elective contributions to the following retirement plans. Turbo tax amended return Cash or deferred arrangements (section 401(k) plans). Turbo tax amended return The Thrift Savings Plan for federal employees. Turbo tax amended return Salary reduction simplified employee pension plans (SARSEP). Turbo tax amended return Savings incentive match plans for employees (SIMPLE plans). Turbo tax amended return Tax-sheltered annuity plans (403(b) plans). Turbo tax amended return Section 501(c)(18)(D) plans. Turbo tax amended return Section 457 plans. Turbo tax amended return Qualified automatic contribution arrangements. Turbo tax amended return   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. Turbo tax amended return You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. Turbo tax amended return 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. Turbo tax amended return   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. Turbo tax amended return Overall limit on deferrals. Turbo tax amended return   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. Turbo tax amended return The limit for SIMPLE plans is $12,000. Turbo tax amended return The limit for section 501(c)(18)(D) plans is the lesser of $7,000 or 25% of your compensation. Turbo tax amended return The limit for section 457 plans is the lesser of your includible compensation or $17,500. Turbo tax amended return Amounts deferred under specific plan limits are part of the overall limit on deferrals. Turbo tax amended return Designated Roth contributions. Turbo tax amended return   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. Turbo tax amended return Designated Roth contributions are treated as elective deferrals, except that they are included in income. Turbo tax amended return Excess deferrals. Turbo tax amended return   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. Turbo tax amended return However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. Turbo tax amended return   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. Turbo tax amended return See Publication 525 for a discussion of the tax treatment of excess deferrals. Turbo tax amended return Catch-up contributions. Turbo tax amended return   You may be allowed catch-up contributions (additional elective deferral) if you are age 50 or older by the end of your tax year. Turbo tax amended return 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. Turbo tax amended return However, if your option is a statutory stock option, you will not have any income until you sell or exchange your stock. Turbo tax amended return Your employer can tell you which kind of option you hold. Turbo tax amended return For more information, see Publication 525. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return (You can choose to include the value of the property in your income in the year it is transferred to you. Turbo tax amended return ) For more information, see Restricted Property in Publication 525. Turbo tax amended return Dividends received on restricted stock. Turbo tax amended return   Dividends you receive on restricted stock are treated as compensation and not as dividend income. Turbo tax amended return Your employer should include these payments on your Form W-2. Turbo tax amended return Stock you chose to include in income. Turbo tax amended return   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. Turbo tax amended return Report them on your return as dividends. Turbo tax amended return For a discussion of dividends, see chapter 8. Turbo tax amended return    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. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return , in addition to your salary. Turbo tax amended return If the offering is made to the religious institution, it is not taxable to you. Turbo tax amended return 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. Turbo tax amended return However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. Turbo tax amended return See chapter 24. Turbo tax amended return Pension. Turbo tax amended return    A pension or retirement pay for a member of the clergy usually is treated as any other pension or annuity. Turbo tax amended return It must be reported on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. Turbo tax amended return Housing. Turbo tax amended return    Special rules for housing apply to members of the clergy. Turbo tax amended return 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. Turbo tax amended return However, the exclusion cannot be more than the reasonable pay for your service. Turbo tax amended return If you pay for the utilities, you can exclude any allowance designated for utility cost, up to your actual cost. Turbo tax amended return The home or allowance must be provided as compensation for your services as an ordained, licensed, or commissioned minister. Turbo tax amended return 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. Turbo tax amended return For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Turbo tax amended return 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. Turbo tax amended return Services performed for the order. Turbo tax amended return   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. Turbo tax amended return   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. Turbo tax amended return Any wages you earn as an agent of an order that you turn over to the order are not included in your income. Turbo tax amended return Example. Turbo tax amended return You are a member of a church order and have taken a vow of poverty. Turbo tax amended return You renounce any claims to your earnings and turn over to the order any salaries or wages you earn. Turbo tax amended return You are a registered nurse, so your order assigns you to work in a hospital that is an associated institution of the church. Turbo tax amended return However, you remain under the general direction and control of the order. Turbo tax amended return 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. Turbo tax amended return Services performed outside the order. Turbo tax amended return   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. Turbo tax amended return They are part of the duties that you must exercise for, or on behalf of, the religious order as its agent. Turbo tax amended return 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. Turbo tax amended return Amounts you receive for these services are included in your income, even if you have taken a vow of poverty. Turbo tax amended return Example. Turbo tax amended return Mark Brown is a member of a religious order and has taken a vow of poverty. Turbo tax amended return He renounces all claims to his earnings and turns over his earnings to the order. Turbo tax amended return Mark is a schoolteacher. Turbo tax amended return He was instructed by the superiors of the order to get a job with a private tax-exempt school. Turbo tax amended return Mark became an employee of the school, and, at his request, the school made the salary payments directly to the order. Turbo tax amended return Because Mark is an employee of the school, he is performing services for the school rather than as an agent of the order. Turbo tax amended return The wages Mark earns working for the school are included in his income. Turbo tax amended return Foreign Employer Special rules apply if you work for a foreign employer. Turbo tax amended return U. Turbo tax amended return S. Turbo tax amended return citizen. Turbo tax amended return   If you are a U. Turbo tax amended return S. Turbo tax amended return 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. Turbo tax amended return Social security and Medicare taxes. Turbo tax amended return   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. Turbo tax amended return However, you must pay self-employment tax on your earnings from services performed in the United States, even though you are not self-employed. Turbo tax amended return This rule also applies if you are an employee of a qualifying wholly owned instrumentality of a foreign government. Turbo tax amended return Employees of international organizations or foreign governments. Turbo tax amended return   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). Turbo tax amended return   Your compensation for official services to a foreign government is exempt from federal income tax if all of the following are true. Turbo tax amended return 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). Turbo tax amended return Your work is like the work done by employees of the United States in foreign countries. Turbo tax amended return The foreign government gives an equal exemption to employees of the United States in its country. Turbo tax amended return Waiver of alien status. Turbo tax amended return   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. Turbo tax amended return See Foreign Employer in Publication 525. Turbo tax amended return Employment abroad. Turbo tax amended return   For information on the tax treatment of income earned abroad, see Publication 54. Turbo tax amended return 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. Turbo tax amended return Allowances generally are not taxed. Turbo tax amended return For more information on the tax treatment of military allowances and benefits, see Publication 3, Armed Forces' Tax Guide. Turbo tax amended return Differential wage payments. Turbo tax amended return   Any payments made to you by an employer during the time you are performing service in the uniformed services are treated as compensation. Turbo tax amended return These wages are subject to income tax withholding and are reported on a Form W-2. Turbo tax amended return See the discussion under Miscellaneous Compensation , earlier. Turbo tax amended return Military retirement pay. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return   For more detailed discussion of survivor annuities, see chapter 10. Turbo tax amended return Disability. Turbo tax amended return   If you are retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later. Turbo tax amended return Veterans' benefits. Turbo tax amended return   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). Turbo tax amended return The following amounts paid to veterans or their families are not taxable. Turbo tax amended return Education, training, and subsistence allowances. Turbo tax amended return Disability compensation and pension payments for disabilities paid either to veterans or their families. Turbo tax amended return Grants for homes designed for wheelchair living. Turbo tax amended return Grants for motor vehicles for veterans who lost their sight or the use of their limbs. Turbo tax amended return Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death. Turbo tax amended return Interest on insurance dividends you leave on deposit with the VA. Turbo tax amended return Benefits under a dependent-care assistance program. Turbo tax amended return The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001. Turbo tax amended return Payments made under the compensated work therapy program. Turbo tax amended return Any bonus payment by a state or political subdivision because of service in a combat zone. Turbo tax amended return 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. Turbo tax amended return Peace Corps. Turbo tax amended return   Living allowances you receive as a Peace Corps volunteer or volunteer leader for housing, utilities, household supplies, food, and clothing are exempt from tax. Turbo tax amended return Taxable allowances. Turbo tax amended return   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. Turbo tax amended return Living allowances designated by the Director of the Peace Corps as basic compensation. Turbo tax amended return These are allowances for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. Turbo tax amended return Leave allowances. Turbo tax amended return Readjustment allowances or termination payments. Turbo tax amended return These are considered received by you when credited to your account. Turbo tax amended return Example. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return Volunteers in Service to America (VISTA). Turbo tax amended return   If you are a VISTA volunteer, you must include meal and lodging allowances paid to you in your income as wages. Turbo tax amended return National Senior Services Corps programs. Turbo tax amended return   Do not include in your income amounts you receive for supportive services or reimbursements for out-of-pocket expenses from the following programs. Turbo tax amended return Retired Senior Volunteer Program (RSVP). Turbo tax amended return Foster Grandparent Program. Turbo tax amended return Senior Companion Program. Turbo tax amended return Service Corps of Retired Executives (SCORE). Turbo tax amended return   If you receive amounts for supportive services or reimbursements for out-of-pocket expenses from SCORE, do not include these amounts in income. Turbo tax amended return Volunteer tax counseling. Turbo tax amended return   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). Turbo tax amended return   You can deduct as a charitable contribution your unreimbursed out-of-pocket expenses in taking part in the volunteer income tax assistance (VITA) program. Turbo tax amended return See chapter 24. Turbo tax amended return Sickness and Injury Benefits This section discusses sickness and injury benefits including disability pensions, long-term care insurance contracts, workers' compensation, and other benefits. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return However, certain payments may not be taxable to you. Turbo tax amended return 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. Turbo tax amended return In addition to disability pensions and annuities, you may be receiving other payments for sickness and injury. Turbo tax amended return Do not report as income any amounts paid to reimburse you for medical expenses you incurred after the plan was established. Turbo tax amended return Cost paid by you. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return See Reimbursement in a later year in chapter 21. Turbo tax amended return Cafeteria plans. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A, until you reach minimum retirement age. Turbo tax amended return Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Turbo tax amended return You may be entitled to a tax credit if you were permanently and totally disabled when you retired. Turbo tax amended return For information on this credit and the definition of permanent and total disability, see chapter 33. Turbo tax amended return Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Turbo tax amended return Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. Turbo tax amended return The rules for reporting pensions are explained in How To Report in chapter 10. Turbo tax amended return For information on disability payments from a governmental program provided as a substitute for unemployment compensation, see chapter 12. Turbo tax amended return Retirement and profit-sharing plans. Turbo tax amended return   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. Turbo tax amended return The payments must be reported as a pension or annuity. Turbo tax amended return For more information on pensions, see chapter 10. Turbo tax amended return Accrued leave payment. Turbo tax amended return   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. Turbo tax amended return The payment is not a disability payment. Turbo tax amended return Include it in your income in the tax year you receive it. Turbo tax amended return Military and Government Disability Pensions Certain military and government disability pensions are not taxable. Turbo tax amended return Service-connected disability. Turbo tax amended return   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. Turbo tax amended return The armed forces of any country. Turbo tax amended return The National Oceanic and Atmospheric Administration. Turbo tax amended return The Public Health Service. Turbo tax amended return The Foreign Service. Turbo tax amended return Conditions for exclusion. Turbo tax amended return   Do not include the disability payments in your income if any of the following conditions apply. Turbo tax amended return You were entitled to receive a disability payment before September 25, 1975. Turbo tax amended return 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. Turbo tax amended return You receive the disability payments for a combat-related injury. Turbo tax amended return 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. Turbo tax amended return You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. Turbo tax amended return Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA. Turbo tax amended return Pension based on years of service. Turbo tax amended return   If you receive a disability pension based on years of service, in most cases you must include it in your income. Turbo tax amended return 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. Turbo tax amended return You must include the rest of your pension in your income. Turbo tax amended return Retroactive VA determination. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return You must include with each Form 1040X a copy of the official VA Determination letter granting the retroactive benefit. Turbo tax amended return The letter must show the amount withheld and the effective date of the benefit. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return Special statute of limitations. Turbo tax amended return   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. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return Example. Turbo tax amended return You retired in 2007 and receive a pension based on your years of service. Turbo tax amended return On August 1, 2013, you receive a determination of service-connected disability retroactive to 2007. Turbo tax amended return Generally, you could claim a refund for the taxes paid on your pension for 2010, 2011, and 2012. Turbo tax amended return 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. Turbo tax amended return You cannot file a claim for 2007 and 2008 because those tax years began more than 5 years before the determination. Turbo tax amended return Terrorist attack or military action. Turbo tax amended return   Do not include in your income disability payments you receive for injuries resulting directly from a terrorist or military action. Turbo tax amended return Long-Term Care Insurance Contracts Long-term care insurance contracts in most cases are treated as accident and health insurance contracts. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return A long-term care insurance contract is an insurance contract that only provides coverage for qualified long-term care services. Turbo tax amended return 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. Turbo tax amended return Qualified long-term care services. Turbo tax amended return   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. Turbo tax amended return Chronically ill individual. Turbo tax amended return   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. Turbo tax amended return Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. Turbo tax amended return An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Turbo tax amended return Limit on exclusion. Turbo tax amended return   You generally can exclude from gross income up to $320 a day for 2013. Turbo tax amended return See Limit on exclusion, under Long-Term Care Insurance Contracts, under Sickness and Injury Benefits in Publication 525 for more information. Turbo tax amended return 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. Turbo tax amended return The exemption also applies to your survivors. Turbo tax amended return 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. Turbo tax amended return 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. Turbo tax amended return For more information, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Turbo tax amended return Return to work. Turbo tax amended return    If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. Turbo tax amended return Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. Turbo tax amended return Railroad sick pay. Turbo tax amended return    Payments you receive as sick pay under the Railroad Unemployment Insurance Act are taxable and you must include them in your income. Turbo tax amended return However, do not include them in your income if they are for an on-the-job injury. Turbo tax amended return   If you received income because of a disability, see Disability Pensions , earlier. Turbo tax amended return Federal Employees' Compensation Act (FECA). Turbo tax amended return   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. Turbo tax amended return 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. Turbo tax amended return Report this income on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040-EZ. Turbo tax amended return Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. Turbo tax amended return    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. Turbo tax amended return For a discussion of the taxability of these benefits, see Social security and equivalent railroad retirement benefits under Other Income, in Publication 525. Turbo tax amended return    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. Turbo tax amended return It is a miscellaneous deduction subject to the 2%-of-AGI limit on Schedule A (Form 1040). Turbo tax amended return If you buy back sick leave in the same year you used it, the amount reduces your taxable sick leave pay. Turbo tax amended return Do not deduct it separately. Turbo tax amended return Other compensation. Turbo tax amended return   Many other amounts you receive as compensation for sickness or injury are not taxable. Turbo tax amended return These include the following amounts. Turbo tax amended return Compensatory damages you receive for physical injury or physical sickness, whether paid in a lump sum or in periodic payments. Turbo tax amended return 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. Turbo tax amended return Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. Turbo tax amended return Compensation you receive for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. Turbo tax amended return This compensation must be based only on the injury and not on the period of your absence from work. Turbo tax amended return These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. Turbo tax amended return Reimbursement for medical care. Turbo tax amended return    A reimbursement for medical care is generally not taxable. Turbo tax amended return However, it may reduce your medical expense deduction. Turbo tax amended return For more information, see chapter 21. Turbo tax amended return Prev  Up  Next   Home   More Online Publications
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The Turbo Tax Amended Return

Turbo tax amended return Internal Revenue Bulletin:  2013-12  March 18, 2013  Rev. Turbo tax amended return Proc. Turbo tax amended return 2013-21 Table of Contents SECTION 1. Turbo tax amended return PURPOSE SECTION 2. Turbo tax amended return BACKGROUND SECTION 3. Turbo tax amended return SCOPE SECTION 4. Turbo tax amended return APPLICATION. Turbo tax amended return 01 Limitations on Depreciation Deductions for Certain Automobiles. Turbo tax amended return . Turbo tax amended return 02 Inclusions in Income of Lessees of Passenger Automobiles. Turbo tax amended return SECTION 5. Turbo tax amended return EFFECTIVE DATE SECTION 6. Turbo tax amended return DRAFTING INFORMATION SECTION 1. Turbo tax amended return PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2013, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2013, including a separate table of inclusion amounts for lessees of trucks and vans. Turbo tax amended return The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Turbo tax amended return SECTION 2. Turbo tax amended return BACKGROUND . Turbo tax amended return 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Turbo tax amended return For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Turbo tax amended return The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Turbo tax amended return This change reflects the higher rate of price inflation for trucks and vans since 1988. Turbo tax amended return . Turbo tax amended return 02 Section 331(a) of the American Taxpayer Relief Act of 2012, Pub. Turbo tax amended return L. Turbo tax amended return No. Turbo tax amended return 112-240, 126 Stat. Turbo tax amended return 2313 (Jan. Turbo tax amended return 2, 2013) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2014, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2014. Turbo tax amended return Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Turbo tax amended return . Turbo tax amended return 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Turbo tax amended return Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Turbo tax amended return Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2012, that is round 3 extension property (as defined in § 168(k)(4)(J)(iv)). Turbo tax amended return Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Turbo tax amended return This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer: (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2013 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Turbo tax amended return . Turbo tax amended return 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Turbo tax amended return The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Turbo tax amended return Under § 1. Turbo tax amended return 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Turbo tax amended return One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Turbo tax amended return Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Turbo tax amended return SECTION 3. Turbo tax amended return SCOPE . Turbo tax amended return 01 The limitations on depreciation deductions in section 4. Turbo tax amended return 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2013, and continue to apply for each taxable year that the passenger automobile remains in service. Turbo tax amended return . Turbo tax amended return 02 The tables in section 4. Turbo tax amended return 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2013. Turbo tax amended return Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Turbo tax amended return See Rev. Turbo tax amended return Proc. Turbo tax amended return 2008-22, 2008-1 C. Turbo tax amended return B. Turbo tax amended return 658, for passenger automobiles first leased during calendar year 2008; Rev. Turbo tax amended return Proc. Turbo tax amended return 2009-24, 2009-17 I. Turbo tax amended return R. Turbo tax amended return B. Turbo tax amended return 885, for passenger automobiles first leased during calendar year 2009; Rev. Turbo tax amended return Proc. Turbo tax amended return 2010-18, 2010-09 I. Turbo tax amended return R. Turbo tax amended return B. Turbo tax amended return 427, as amplified and modified by section 4. Turbo tax amended return 03 of Rev. Turbo tax amended return Proc. Turbo tax amended return 2011-21, 2011-12 I. Turbo tax amended return R. Turbo tax amended return B. Turbo tax amended return 560, for passenger automobiles first leased during calendar year 2010; Rev. Turbo tax amended return Proc. Turbo tax amended return 2011-21, for passenger automobiles first leased during calendar year 2011; and Rev. Turbo tax amended return Proc. Turbo tax amended return 2012-23, 2012-14 I. Turbo tax amended return R. Turbo tax amended return B. Turbo tax amended return 712, for passenger automobiles first leased during calendar year 2012. Turbo tax amended return SECTION 4. Turbo tax amended return APPLICATION . Turbo tax amended return 01 Limitations on Depreciation Deductions for Certain Automobiles. Turbo tax amended return (1) Amount of the inflation adjustment. Turbo tax amended return (a) Passenger automobiles (other than trucks or vans). Turbo tax amended return Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Turbo tax amended return Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Turbo tax amended return The new car component of the CPI was 115. Turbo tax amended return 2 for October 1987 and 143. Turbo tax amended return 787 for October 2012. Turbo tax amended return The October 2012 index exceeded the October 1987 index by 28. Turbo tax amended return 587. Turbo tax amended return Therefore, the automobile price inflation adjustment for 2013 for passenger automobiles (other than trucks and vans) is 24. Turbo tax amended return 8 percent (28. Turbo tax amended return 587/115. Turbo tax amended return 2 x 100%). Turbo tax amended return The dollar limitations in § 280F(a) are multiplied by a factor of 0. Turbo tax amended return 248, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2013. Turbo tax amended return This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2013. Turbo tax amended return (b) Trucks and vans. Turbo tax amended return To determine the dollar limitations for trucks and vans first placed in service during calendar year 2013, the Service uses the new truck component of the CPI instead of the new car component. Turbo tax amended return The new truck component of the CPI was 112. Turbo tax amended return 4 for October 1987 and 149. Turbo tax amended return 386 for October 2012. Turbo tax amended return The October 2012 index exceeded the October 1987 index by 36. Turbo tax amended return 986. Turbo tax amended return Therefore, the automobile price inflation adjustment for 2013 for trucks and vans is 32. Turbo tax amended return 9 percent (36. Turbo tax amended return 986/112. Turbo tax amended return 4 x 100%). Turbo tax amended return The dollar limitations in § 280F(a) are multiplied by a factor of 0. Turbo tax amended return 329, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Turbo tax amended return This adjustment applies to all trucks and vans that are first placed in service in calendar year 2013. Turbo tax amended return (2) Amount of the limitation. Turbo tax amended return Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2013. Turbo tax amended return Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction applies. Turbo tax amended return Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction does not apply. Turbo tax amended return REV. Turbo tax amended return PROC. Turbo tax amended return 2013-21 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Turbo tax amended return PROC. Turbo tax amended return 2013-21 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 REV. Turbo tax amended return PROC. Turbo tax amended return 2013-21 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Turbo tax amended return PROC. Turbo tax amended return 2013-21 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 . Turbo tax amended return 02 Inclusions in Income of Lessees of Passenger Automobiles. Turbo tax amended return A taxpayer must follow the procedures in § 1. Turbo tax amended return 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2013. Turbo tax amended return In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Turbo tax amended return REV. Turbo tax amended return PROC. Turbo tax amended return 2013-21 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 2 4 6 7 8 19,500 20,000 2 5 6 9 9 20,000 20,500 2 5 8 9 11 20,500 21,000 3 6 8 10 12 21,000 21,500 3 6 10 11 13 21,500 22,000 3 7 10 13 14 22,000 23,000 4 8 11 14 16 23,000 24,000 4 9 14 16 18 24,000 25,000 5 10 15 18 21 25,000 26,000 5 12 16 21 23 26,000 27,000 6 12 19 23 25 27,000 28,000 6 14 20 25 28 28,000 29,000 7 15 22 27 30 29,000 30,000 7 16 24 29 33 30,000 31,000 8 17 26 31 35 31,000 32,000 8 19 27 33 38 32,000 33,000 9 20 29 35 40 33,000 34,000 10 21 31 37 43 34,000 35,000 10 22 33 39 45 35,000 36,000 11 23 35 41 48 36,000 37,000 11 25 36 43 50 37,000 38,000 12 26 38 45 53 38,000 39,000 12 27 40 47 55 39,000 40,000 13 28 42 49 58 40,000 41,000 13 29 44 52 59 41,000 42,000 14 30 45 54 63 42,000 43,000 14 32 47 56 64 43,000 44,000 15 33 48 59 67 44,000 45,000 15 34 51 60 69 45,000 46,000 16 35 52 63 72 46,000 47,000 17 36 54 65 74 47,000 48,000 17 38 55 67 77 48,000 49,000 18 39 57 69 79 49,000 50,000 18 40 59 71 82 50,000 51,000 19 41 61 73 84 51,000 52,000 19 42 63 75 87 52,000 53,000 20 43 65 77 89 53,000 54,000 20 45 66 79 92 54,000 55,000 21 46 68 81 94 55,000 56,000 21 47 70 84 96 56,000 57,000 22 48 72 85 99 57,000 58,000 22 50 73 88 101 58,000 59,000 23 51 75 90 103 59,000 60,000 24 52 76 92 106 60,000 62,000 24 54 79 95 110 62,000 64,000 25 56 83 99 115 64,000 66,000 27 58 87 103 120 66,000 68,000 28 60 90 108 125 68,000 70,000 29 63 93 112 130 70,000 72,000 30 65 97 117 134 72,000 74,000 31 68 100 121 139 74,000 76,000 32 70 104 125 144 76,000 78,000 33 73 107 129 149 78,000 80,000 34 75 111 133 154 80,000 85,000 36 79 117 141 162 85,000 90,000 39 85 126 151 174 90,000 95,000 41 91 135 162 186 95,000 100,000 44 97 144 172 199 100,000 110,000 48 106 157 188 217 110,000 120,000 53 118 174 210 241 120,000 130,000 59 129 193 230 266 130,000 140,000 64 141 210 252 290 140,000 150,000 70 153 227 273 315 150,000 160,000 75 165 245 294 339 160,000 170,000 80 177 263 315 363 170,000 180,000 86 189 280 336 388 180,000 190,000 91 201 298 357 412 190,000 200,000 97 212 316 378 436 200,000 210,000 102 224 333 400 461 210,000 220,000 107 236 351 420 486 220,000 230,000 113 248 368 442 509 230,000 240,000 118 260 386 463 534 240,000 And up 124 272 403 484 558 REV. Turbo tax amended return PROC. Turbo tax amended return 2013-21 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 1 3 4 5 6 19,500 20,000 2 3 5 6 7 20,000 20,500 2 4 6 7 8 20,500 21,000 2 5 7 8 9 21,000 21,500 2 5 8 9 11 21,500 22,000 3 6 8 10 12 22,000 23,000 3 7 10 11 14 23,000 24,000 4 8 11 14 16 24,000 25,000 4 9 14 16 18 25,000 26,000 5 10 15 18 21 26,000 27,000 5 12 17 20 23 27,000 28,000 6 13 18 23 25 28,000 29,000 6 14 20 25 28 29,000 30,000 7 15 22 27 30 30,000 31,000 7 16 24 29 33 31,000 32,000 8 17 26 31 35 32,000 33,000 8 19 27 33 38 33,000 34,000 9 20 29 35 41 34,000 35,000 10 21 31 37 43 35,000 36,000 10 22 33 39 46 36,000 37,000 11 23 35 41 48 37,000 38,000 11 25 36 43 51 38,000 39,000 12 26 38 45 53 39,000 40,000 12 27 40 48 55 40,000 41,000 13 28 42 49 58 41,000 42,000 13 29 44 52 60 42,000 43,000 14 30 46 54 62 43,000 44,000 14 32 47 56 65 44,000 45,000 15 33 48 59 67 45,000 46,000 15 34 51 60 70 46,000 47,000 16 35 52 63 72 47,000 48,000 17 36 54 65 74 48,000 49,000 17 38 55 67 77 49,000 50,000 18 39 57 69 79 50,000 51,000 18 40 59 71 82 51,000 52,000 19 41 61 73 84 52,000 53,000 19 42 63 75 87 53,000 54,000 20 43 65 77 89 54,000 55,000 20 45 66 80 91 55,000 56,000 21 46 68 81 94 56,000 57,000 21 47 70 84 96 57,000 58,000 22 48 72 86 98 58,000 59,000 22 50 73 88 101 59,000 60,000 23 51 75 90 103 60,000 62,000 24 52 78 93 108 62,000 64,000 25 55 81 97 113 64,000 66,000 26 57 85 101 118 66,000 68,000 27 60 88 106 122 68,000 70,000 28 62 92 110 127 70,000 72,000 29 64 96 114 132 72,000 74,000 30 67 99 118 137 74,000 76,000 31 69 103 122 142 76,000 78,000 32 72 105 127 147 78,000 80,000 34 73 110 131 151 80,000 85,000 35 78 116 138 160 85,000 90,000 38 84 124 149 172 90,000 95,000 41 90 133 160 184 95,000 100,000 44 95 142 171 196 100,000 110,000 48 104 156 186 214 110,000 120,000 53 116 173 207 240 120,000 130,000 58 128 191 228 264 130,000 140,000 64 140 208 249 288 140,000 150,000 69 152 226 270 313 150,000 160,000 75 164 243 292 336 160,000 170,000 80 176 261 312 361 170,000 180,000 85 188 278 334 386 180,000 190,000 91 199 296 355 410 190,000 200,000 96 211 314 376 434 200,000 210,000 101 223 332 397 459 210,000 220,000 107 235 349 418 483 220,000 230,000 112 247 367 439 507 230,000 240,000 118 259 384 460 532 240,000 And up 123 271 401 482 556 SECTION 5. Turbo tax amended return EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2013. Turbo tax amended return SECTION 6. Turbo tax amended return DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Turbo tax amended return Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Turbo tax amended return For further information regarding this revenue procedure, contact Mr. Turbo tax amended return Harvey at (202) 622-4930 (not a toll-free call). Turbo tax amended return Prev  Up  Next   Home   More Internal Revenue Bulletins