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Where To Mail 1040x

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Where To Mail 1040x

Where to mail 1040x Publication 555 - Main Content Table of Contents Domicile Community or Separate Property and Income Identifying Income, Deductions, and CreditsIncome Exemptions Deductions Credits, Taxes, and Payments Community Property Laws DisregardedRequesting relief. Where to mail 1040x Equitable relief. Where to mail 1040x Earned income. Where to mail 1040x Trade or business income. Where to mail 1040x Partnership income or loss. Where to mail 1040x Separate property income. Where to mail 1040x Social security benefits. Where to mail 1040x Other income. Where to mail 1040x End of the Community Preparing a Federal Income Tax ReturnJoint Return Versus Separate Returns Separate Return Preparation How To Get Tax HelpLow Income Taxpayer Clinics Domicile Whether you have community property and community income depends on the state where you are domiciled. Where to mail 1040x If you and your spouse (or your registered domestic partner) have different domiciles, check the laws of each to see whether you have community property or community income. Where to mail 1040x You have only one domicile even if you have more than one home. Where to mail 1040x Your domicile is a permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Where to mail 1040x The question of your domicile is mainly a matter of your intention as indicated by your actions. Where to mail 1040x You must be able to show that you intend a given place or state to be your permanent home. Where to mail 1040x If you move into or out of a community property state during the year, you may or may not have community income. Where to mail 1040x Factors considered in determining domicile include: Where you pay state income tax, Where you vote, Location of property you own, Your citizenship, Length of residence, and Business and social ties to the community. Where to mail 1040x Amount of time spent. Where to mail 1040x    The amount of time spent in one place does not always explain the difference between home and domicile. Where to mail 1040x A temporary home or residence may continue for months or years while a domicile may be established the first moment you occupy the property. Where to mail 1040x Your intent is the determining factor in proving where you have your domicile. Where to mail 1040x    Note. Where to mail 1040x When this publication refers to where you live, it means your domicile. Where to mail 1040x Community or Separate Property and Income If you file a federal tax return separately from your spouse, you must report half of all community income and all of your separate income. Where to mail 1040x Likewise, a registered domestic partner must report half of all community income and all of his or her separate income on his or her federal tax return. Where to mail 1040x You each must attach your Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. Where to mail 1040x Generally, the laws of the state in which you are domiciled govern whether you have community property and community income or separate property and separate income for federal tax purposes. Where to mail 1040x The following is a summary of the general rules. Where to mail 1040x These rules are also shown in Table 1. Where to mail 1040x Community property. Where to mail 1040x    Generally, community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. Where to mail 1040x That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. Where to mail 1040x That cannot be identified as separate property. Where to mail 1040x Community income. Where to mail 1040x    Generally, community income is income from: Community property. Where to mail 1040x Salaries, wages, and other pay received for the services performed by you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. Where to mail 1040x Real estate that is treated as community property under the laws of the state where the property is located. Where to mail 1040x Note Separate property. Where to mail 1040x    Generally, separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). Where to mail 1040x Money earned while domiciled in a noncommunity property state. Where to mail 1040x Property that you or your spouse (or your registered domestic partner) received separately as a gift or inheritance during your marriage (or registered domestic partnership). Where to mail 1040x Property that you or your spouse (or your registered domestic partner) bought with separate funds, or acquired in exchange for separate property, during your marriage (or registered domestic partnership). Where to mail 1040x Property that you and your spouse (or your registered domestic partner) converted from community property to separate property through an agreement valid under state law. Where to mail 1040x The part of property bought with separate funds, if part was bought with community funds and part with separate funds. Where to mail 1040x Separate income. Where to mail 1040x    Generally, income from separate property is the separate income of the spouse (or the registered domestic partner) who owns the property. Where to mail 1040x    In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. Where to mail 1040x Table 1. Where to mail 1040x General Rules — Property and Income: Community or Separate? Community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. Where to mail 1040x (Includes the part of property bought with community property funds if part was bought with community funds and part with separate funds. Where to mail 1040x ) That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. Where to mail 1040x That cannot be identified as separate property. Where to mail 1040x Separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). Where to mail 1040x Money earned while domiciled in a noncommunity property state. Where to mail 1040x Property either of you received as a gift or inherited separately during your marriage (or registered domestic partnership). Where to mail 1040x Property bought with separate funds, or exchanged for separate property, during your marriage (or registered domestic partnership). Where to mail 1040x Property that you and your spouse (or your registered domestic partner) agreed to convert from community to separate property through an agreement valid under state law. Where to mail 1040x The part of property bought with separate funds, if part was bought with community funds and part with separate funds. Where to mail 1040x Community income 1,2,3 is income from: Community property. Where to mail 1040x Salaries, wages, or pay for services of you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. Where to mail 1040x Real estate that is treated as community property under the laws of the state where the property is located. Where to mail 1040x Separate income 1,2 is income from: Separate property which belongs to the spouse (or registered domestic partner) who owns the property. Where to mail 1040x 1In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. Where to mail 1040x 2Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year , later. Where to mail 1040x In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. Where to mail 1040x In other states, it is separate income. Where to mail 1040x 3Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. Where to mail 1040x See Community Property Laws Disregarded , later. Where to mail 1040x Identifying Income, Deductions, and Credits If you file separate returns, you and your spouse (or your registered domestic partner) each must attach your Form 8958 to your Form 1040 to identify your community and separate income, deductions, credits, and other return amounts according to the laws of your state. Where to mail 1040x Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. Where to mail 1040x See Community Property Laws Disregarded, later. Where to mail 1040x Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year, later. Where to mail 1040x In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. Where to mail 1040x In other states, it is separate income. Where to mail 1040x Income The following is a discussion of the general effect of community property laws on the federal income tax treatment of certain items of income. Where to mail 1040x Wages, earnings, and profits. Where to mail 1040x    A spouse's (or your registered domestic partner's) wages, earnings, and net profits from a sole proprietorship are community income and must be evenly split. Where to mail 1040x Dividends, interest, and rents. Where to mail 1040x    Dividends, interest, and rents from community property are community income and must be evenly split. Where to mail 1040x Dividends, interest, and rents from separate property are characterized in accordance with the discussion under Income from separate property , later. Where to mail 1040x Example. Where to mail 1040x If you and your spouse (or your registered domestic partner) buy a bond that is considered community property under your state laws, half the bond interest belongs to you and half belongs to your spouse. Where to mail 1040x You each must show the bond interest and the split of that interest on your Form 8958, and report half the interest on your Form 1040. Where to mail 1040x Attach your Form 8958 to your Form 1040. Where to mail 1040x Alimony received. Where to mail 1040x    Alimony or separate maintenance payments made prior to divorce are taxable to the payee spouse only to the extent they exceed 50% (his or her share) of the reportable community income. Where to mail 1040x This is so because the payee spouse is already required to report half of the community income. Where to mail 1040x See also Alimony paid , later. Where to mail 1040x Gains and losses. Where to mail 1040x    Gains and losses are classified as separate or community depending on how the property is held. Where to mail 1040x For example, a loss on separate property, such as stock held separately, is a separate loss. Where to mail 1040x On the other hand, a loss on community property, such as a casualty loss to your home held as community property, is a community loss. Where to mail 1040x See Publication 544, Sales and Other Dispositions of Assets, for information on gains and losses. Where to mail 1040x See Publication 547, Casualties, Disasters, and Thefts, for information on losses due to a casualty or theft. Where to mail 1040x Withdrawals from individual retirement arrangements (IRAs) and Coverdell Education Savings Accounts (ESAs). Where to mail 1040x    There are several kinds of individual retirement arrangements (IRAs). Where to mail 1040x They are traditional IRAs (including SEP-IRAs), SIMPLE IRAs, and Roth IRAs. Where to mail 1040x IRAs and ESAs by law are deemed to be separate property. Where to mail 1040x Therefore, taxable IRA and ESA distributions are separate property, even if the funds in the account would otherwise be community property. Where to mail 1040x These distributions are wholly taxable to the spouse (or registered domestic partner) whose name is on the account. Where to mail 1040x That spouse (or registered domestic partner) is also liable for any penalties and additional taxes on the distributions. Where to mail 1040x Pensions. Where to mail 1040x    Generally, distributions from pensions will be characterized as community or separate income depending on the respective periods of participation in the pension while married (or during the registered domestic partnership) and domiciled in a community property state or in a noncommunity property state during the total period of participation in the pension. Where to mail 1040x See the example under Civil service retirement , later. Where to mail 1040x These rules may vary between states. Where to mail 1040x Check your state law. Where to mail 1040x Lump-sum distributions. Where to mail 1040x    If you were born before January 2, 1936, and receive a lump-sum distribution from a qualified retirement plan, you may be able to choose an optional method of figuring the tax on the distribution. Where to mail 1040x For the 10-year tax option, you must disregard community property laws. Where to mail 1040x For more information, see Publication 575, Pension and Annuity Income, and Form 4972, Tax on Lump-Sum Distributions. Where to mail 1040x Civil service retirement. Where to mail 1040x    For income tax purposes, community property laws apply to annuities payable under the Civil Service Retirement Act (CSRS) or Federal Employee Retirement System (FERS). Where to mail 1040x   Whether a civil service annuity is separate or community income depends on your marital status (or your status as a registered domestic partner) and domicile of the employee when the services were performed for which the annuity is paid. Where to mail 1040x Even if you now live in a noncommunity property state and you receive a civil service annuity, it may be community income if it is based on services you performed while married (or during the registered domestic partnership) and domiciled in a community property state. Where to mail 1040x   If a civil service annuity is a mixture of community income and separate income, it must be divided between the two kinds of income. Where to mail 1040x The division is based on the employee's domicile and marital status (or registered domestic partnership) in community and noncommunity property states during his or her periods of service. Where to mail 1040x Example. Where to mail 1040x Henry Wright retired this year after 30 years of civil service. Where to mail 1040x He and his wife were domiciled in a community property state during the past 15 years. Where to mail 1040x Since half the service was performed while the Wrights were married and domiciled in a community property state, half the civil service retirement pay is considered to be community income. Where to mail 1040x If Mr. Where to mail 1040x Wright receives $1,000 a month in retirement pay, $500 is considered community income—half ($250) is his income and half ($250) is his wife's. Where to mail 1040x Military retirement pay. Where to mail 1040x    State community property laws apply to military retirement pay. Where to mail 1040x Generally, the pay is either separate or community income based on the marital status and domicile of the couple while the member of the Armed Forces was in active military service. Where to mail 1040x For example, military retirement pay for services performed during marriage and domicile in a community property state is community income. Where to mail 1040x   Active military pay earned while married and domiciled in a community property state is also community income. Where to mail 1040x This income is considered to be received half by the member of the Armed Forces and half by the spouse. Where to mail 1040x Partnership income. Where to mail 1040x    If an interest is held in a partnership, and income from the partnership is attributable to the efforts of either spouse (or registered domestic partner), the partnership income is community property. Where to mail 1040x If it is merely a passive investment in a separate property partnership, the partnership income will be characterized in accordance with the discussion under Income from separate property , later. Where to mail 1040x Tax-exempt income. Where to mail 1040x    For spouses, community income exempt from federal tax generally keeps its exempt status for both spouses. Where to mail 1040x For example, under certain circumstances, income earned outside the United States is tax exempt. Where to mail 1040x If you earned income and met the conditions that made it exempt, the income is also exempt for your spouse even though he or she may not have met the conditions. Where to mail 1040x Registered domestic partners should consult the particular exclusion provision to see if the exempt status applies to both. Where to mail 1040x Income from separate property. Where to mail 1040x    In some states, income from separate property is separate income. Where to mail 1040x These states include Arizona, California, Nevada, New Mexico, and Washington. Where to mail 1040x Other states characterize income from separate property as community income. Where to mail 1040x These states include Idaho, Louisiana, Texas, and Wisconsin. Where to mail 1040x Exemptions When you file separate returns, you must claim your own exemption amount for that year. Where to mail 1040x (See your tax return instructions. Where to mail 1040x ) You cannot divide the amount allowed as an exemption for a dependent between you and your spouse (or your registered domestic partner). Where to mail 1040x When community funds provide support for more than one person, each of whom otherwise qualifies as a dependent, you and your spouse (or your registered domestic partner) may divide the number of dependency exemptions as explained in the following example. Where to mail 1040x Example. Where to mail 1040x Ron and Diane White have three dependent children and live in Nevada. Where to mail 1040x If Ron and Diane file separately, only Ron can claim his own exemption, and only Diane can claim her own exemption. Where to mail 1040x Ron and Diane can agree that one of them will claim the exemption for one, two, or all of their children and the other will claim any remaining exemptions. Where to mail 1040x They cannot each claim half of the total exemption amount for their three children. Where to mail 1040x Deductions If you file separate returns, your deductions generally depend on whether the expenses involve community or separate income. Where to mail 1040x Business and investment expenses. Where to mail 1040x    If you file separate returns, expenses incurred to earn or produce community business or investment income are generally divided equally between you and your spouse (or your registered domestic partner). Where to mail 1040x Each of you is entitled to deduct one-half of the expenses on your separate returns. Where to mail 1040x Expenses incurred by a spouse (or registered domestic partner) to produce separate business or investment income is deductible by the spouse (or the registered domestic partner) who earns the corresponding separate business or investment income. Where to mail 1040x    Other limits may also apply to business and investment expenses. Where to mail 1040x For more information, see Publication 535, Business Expenses, and Publication 550, Investment Income and Expenses. Where to mail 1040x Alimony paid. Where to mail 1040x    Payments that may otherwise qualify as alimony are not deductible by the payer if they are the recipient spouse's part of community income. Where to mail 1040x They are deductible as alimony only to the extent they are more than that spouse's part of community income. Where to mail 1040x Example. Where to mail 1040x You live in a community property state. Where to mail 1040x You are separated but the special rules explained later under Spouses living apart all year do not apply. Where to mail 1040x Under a written agreement, you pay your spouse $12,000 of your $20,000 total yearly community income. Where to mail 1040x Your spouse receives no other community income. Where to mail 1040x Under your state law, earnings of a spouse living separately and apart from the other spouse continue as community property. Where to mail 1040x On your separate returns, each of you must report $10,000 of the total community income. Where to mail 1040x In addition, your spouse must report $2,000 as alimony received. Where to mail 1040x You can deduct $2,000 as alimony paid. Where to mail 1040x IRA deduction. Where to mail 1040x    Deductions for IRA contributions cannot be split between spouses (or registered domestic partners). Where to mail 1040x The deduction for each spouse (or each registered domestic partner) is figured separately and without regard to community property laws. Where to mail 1040x Personal expenses. Where to mail 1040x   Expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. Where to mail 1040x If these expenses are paid from community funds, divide the deduction equally between you and your spouse. Where to mail 1040x Credits, Taxes, and Payments The following is a discussion of the general effect of community property laws on the treatment of certain credits, taxes, and payments on your separate return. Where to mail 1040x Child tax credit. Where to mail 1040x    You may be entitled to a child tax credit for each of your qualifying children. Where to mail 1040x You must provide the name and identification number (usually the social security number) of each qualifying child on your return. Where to mail 1040x See your tax return instructions for the maximum amount of the credit you can claim for each qualifying child. Where to mail 1040x Limit on credit. Where to mail 1040x    The credit is limited if your modified adjusted gross income (modified AGI) is above a certain amount. Where to mail 1040x The amount at which the limitation (phaseout) begins depends on your filing status. Where to mail 1040x Generally, your credit is limited to your tax liability unless you have three or more qualifying children. Where to mail 1040x See your tax return instructions for more information. Where to mail 1040x Self-employment tax. Where to mail 1040x    For the effect of community property laws on the income tax treatment of income from a sole proprietorship and partnerships, see Wages, earnings, and profits and Partnership income , earlier. Where to mail 1040x The following rules only apply to persons married for federal tax purposes. Where to mail 1040x Registered domestic partners report community income for self-employment tax purposes the same way they do for income tax purposes. Where to mail 1040x Sole proprietorship. Where to mail 1040x    With regard to net income from a trade or business (other than a partnership) that is community income, self-employment tax is imposed on the spouse carrying on the trade or business. Where to mail 1040x Partnerships. Where to mail 1040x    All of the distributive share of a married partner's income or loss from a partnership trade or business is attributable to the partner for computing any self-employment tax, even if a portion of the partner's distributive share of income or loss is community income or loss that is otherwise attributable to the partner's spouse for income tax purposes. Where to mail 1040x If both spouses are partners, any self-employment tax is allocated based on their distributive shares. Where to mail 1040x Federal income tax withheld. Where to mail 1040x    Report the credit for federal income tax withheld on community wages in the same manner as your wages. Where to mail 1040x If you and your spouse file separate returns on which each of you reports half the community wages, each of you is entitled to credit for half the income tax withheld on those wages. Where to mail 1040x Likewise, each registered domestic partner is entitled to credit for half the income tax withheld on those wages. Where to mail 1040x Estimated tax payments. Where to mail 1040x    In determining whether you must pay estimated tax, apply the estimated tax rules to your estimated income. Where to mail 1040x These rules are explained in Publication 505. Where to mail 1040x   If you think you may owe estimated tax and want to pay the tax separately (registered domestic partners must pay the tax separately), determine whether you must pay it by taking into account: Half the community income and deductions, All of your separate income and deductions, and Your own exemption and any exemptions for dependents that you may claim. Where to mail 1040x   Whether you and your spouse pay estimated tax jointly or separately will not affect your choice of filing joint or separate income tax returns. Where to mail 1040x   If you and your spouse paid estimated tax jointly but file separate income tax returns, either of you can claim all of the estimated tax paid, or you may divide it between you in any way that you agree upon. Where to mail 1040x   If you cannot agree on how to divide it, the estimated tax you can claim equals the total estimated tax paid times the tax shown on your separate return, divided by the total of the tax shown on your return and your spouse's return. Where to mail 1040x   If you paid your estimated taxes separately, you get credit for only the estimated taxes you paid. Where to mail 1040x Earned income credit. Where to mail 1040x    You may be entitled to an earned income credit (EIC). Where to mail 1040x You cannot claim this credit if your filing status is married filing separately. Where to mail 1040x   If you are married, but qualify to file as head of household under rules for married taxpayers living apart (see Publication 501, Exemptions, Standard Deduction, and Filing Information), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under community property laws. Where to mail 1040x That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Where to mail 1040x Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. Where to mail 1040x The same rule applies to registered domestic partners. Where to mail 1040x    This rule does not apply when determining your adjusted gross income (AGI) for the EIC. Where to mail 1040x Your AGI includes that part of both your and your spouse's (or your registered domestic partner's) wages that you are required to include in gross income shown on your tax return. Where to mail 1040x   For more information about the EIC, see Publication 596, Earned Income Credit (EIC). Where to mail 1040x Overpayments. Where to mail 1040x    The amount of an overpayment on a joint return is allocated under the community property laws of the state in which you are domiciled. Where to mail 1040x If, under the laws of your state, community property is subject to premarital or other separate debts of either spouse, the full joint overpayment may be used to offset the obligation. Where to mail 1040x If, under the laws of your state, community property is not subject to premarital or other separate debts of either spouse, only the portion of the joint overpayment allocated to the spouse liable for the obligation can be used to offset that liability. Where to mail 1040x The portion allocated to the other spouse can be refunded. Where to mail 1040x Community Property Laws Disregarded The following discussions are situations where special rules apply to community property and community income for spouses. Where to mail 1040x These rules do not apply to registered domestic partners. Where to mail 1040x Certain community income not treated as community income by one spouse. Where to mail 1040x    Community property laws may not apply to an item of community income that you received but did not treat as community income. Where to mail 1040x You are responsible for reporting all of that income item if: You treat the item as if only you are entitled to the income, and You do not notify your spouse of the nature and amount of the income by the due date for filing the return (including extensions). Where to mail 1040x Relief from liability arising from community property law. Where to mail 1040x    You are not responsible for the tax relating to an item of community income if all the following conditions are met. Where to mail 1040x You did not file a joint return for the tax year. Where to mail 1040x You did not include an item of community income in gross income. Where to mail 1040x The item of community income you did not include is one of the following: Wages, salaries, and other compensation your spouse (or former spouse) received for services he or she performed as an employee. Where to mail 1040x Income your spouse (or former spouse) derived from a trade or business he or she operated as a sole proprietor. Where to mail 1040x Your spouse's (or former spouse's) distributive share of partnership income. Where to mail 1040x Income from your spouse's (or former spouse's) separate property (other than income described in (a), (b), or (c)). Where to mail 1040x Use the appropriate community property law to determine what is separate property. Where to mail 1040x Any other income that belongs to your spouse (or former spouse) under community property law. Where to mail 1040x You establish that you did not know of, and had no reason to know of, that community income. Where to mail 1040x Under all facts and circumstances, it would not be fair to include the item of community income in your gross income. Where to mail 1040x Requesting relief. Where to mail 1040x    For information on how and when to request relief from liabilities arising from community property laws, see Community Property Laws in Publication 971, Innocent Spouse Relief. Where to mail 1040x Equitable relief. Where to mail 1040x    If you do not qualify for the relief discussed earlier under Relief from liability arising from community property law and are now liable for an underpaid or understated tax you believe should be paid only by your spouse (or former spouse), you may request equitable relief. Where to mail 1040x To request equitable relief, you must file Form 8857, Request for Innocent Spouse Relief. Where to mail 1040x Also see Publication 971. Where to mail 1040x Spousal agreements. Where to mail 1040x    In some states a married couple may enter into an agreement that affects the status of property or income as community or separate property. Where to mail 1040x Check your state law to determine how it affects you. Where to mail 1040x Nonresident alien spouse. Where to mail 1040x    If you are a U. Where to mail 1040x S. Where to mail 1040x citizen or resident alien and you choose to treat your nonresident alien spouse as a U. Where to mail 1040x S. Where to mail 1040x resident for tax purposes and you are domiciled in a community property state or country, use the community property rules. Where to mail 1040x You must file a joint return for the year you make the choice. Where to mail 1040x You can file separate returns in later years. Where to mail 1040x For details on making this choice, see Publication 519, U. Where to mail 1040x S. Where to mail 1040x Tax Guide for Aliens. Where to mail 1040x   If you are a U. Where to mail 1040x S. Where to mail 1040x citizen or resident alien and do not choose to treat your nonresident alien spouse as a U. Where to mail 1040x S. Where to mail 1040x resident for tax purposes, treat your community income as explained next under Spouses living apart all year. Where to mail 1040x However, you do not have to meet the four conditions discussed there. Where to mail 1040x Spouses living apart all year. Where to mail 1040x    If you are married at any time during the calendar year, special rules apply for reporting certain community income. Where to mail 1040x You must meet all the following conditions for these special rules to apply. Where to mail 1040x You and your spouse lived apart all year. Where to mail 1040x You and your spouse did not file a joint return for a tax year beginning or ending in the calendar year. Where to mail 1040x You and/or your spouse had earned income for the calendar year that is community income. Where to mail 1040x You and your spouse have not transferred, directly or indirectly, any of the earned income in condition (3) above between yourselves before the end of the year. Where to mail 1040x Do not take into account transfers satisfying child support obligations or transfers of very small amounts or value. Where to mail 1040x If all these conditions are met, you and your spouse must report your community income as discussed next. Where to mail 1040x See also Certain community income not treated as community income by one spouse , earlier. Where to mail 1040x Earned income. Where to mail 1040x    Treat earned income that is not trade or business or partnership income as the income of the spouse who performed the services to earn the income. Where to mail 1040x Earned income is wages, salaries, professional fees, and other pay for personal services. Where to mail 1040x   Earned income does not include amounts paid by a corporation that are a distribution of earnings and profits rather than a reasonable allowance for personal services rendered. Where to mail 1040x Trade or business income. Where to mail 1040x    Treat income and related deductions from a trade or business that is not a partnership as those of the spouse carrying on the trade or business. Where to mail 1040x Partnership income or loss. Where to mail 1040x    Treat income or loss from a trade or business carried on by a partnership as the income or loss of the spouse who is the partner. Where to mail 1040x Separate property income. Where to mail 1040x    Treat income from the separate property of one spouse as the income of that spouse. Where to mail 1040x Social security benefits. Where to mail 1040x    Treat social security and equivalent railroad retirement benefits as the income of the spouse who receives the benefits. Where to mail 1040x Other income. Where to mail 1040x    Treat all other community income, such as dividends, interest, rents, royalties, or gains, as provided under your state's community property law. Where to mail 1040x Example. Where to mail 1040x George and Sharon were married throughout the year but did not live together at any time during the year. Where to mail 1040x Both domiciles were in a community property state. Where to mail 1040x They did not file a joint return or transfer any of their earned income between themselves. Where to mail 1040x During the year their incomes were as follows:   George Sharon Wages $20,000 $22,000 Consulting business 5,000   Partnership   10,000 Dividends from separate property 1,000 2,000 Interest from community property 500 500 Total $26,500 $34,500 Under the community property law of their state, all the income is considered community income. Where to mail 1040x (Some states treat income from separate property as separate income—check your state law. Where to mail 1040x ) Sharon did not take part in George's consulting business. Where to mail 1040x Ordinarily, on their separate returns they would each report $30,500, half the total community income of $61,000 ($26,500 + $34,500). Where to mail 1040x But because they meet the four conditions listed earlier under Spouses living apart all year , they must disregard community property law in reporting all their income (except the interest income) from community property. Where to mail 1040x They each report on their returns only their own earnings and other income, and their share of the interest income from community property. Where to mail 1040x George reports $26,500 and Sharon reports $34,500. Where to mail 1040x Other separated spouses. Where to mail 1040x    If you and your spouse are separated but do not meet the four conditions discussed earlier under Spouses living apart all year , you must treat your income according to the laws of your state. Where to mail 1040x In some states, income earned after separation but before a decree of divorce continues to be community income. Where to mail 1040x In other states, it is separate income. Where to mail 1040x End of the Community The marital community may end in several ways. Where to mail 1040x When the marital community ends, the community assets (money and property) are divided between the spouses. Where to mail 1040x Similarly, a registered domestic partnership may end in several ways and the community assets must be divided between the registered domestic partners. Where to mail 1040x Death of spouse. Where to mail 1040x    If you own community property and your spouse dies, the total fair market value (FMV) of the community property, including the part that belongs to you, generally becomes the basis of the entire property. Where to mail 1040x For this rule to apply, at least half the value of the community property interest must be includible in your spouse's gross estate, whether or not the estate must file a return (this rule does not apply to registered domestic partners). Where to mail 1040x Example. Where to mail 1040x Bob and Ann owned community property that had a basis of $80,000. Where to mail 1040x When Bob died, his and Ann's community property had an FMV of $100,000. Where to mail 1040x One-half of the FMV of their community interest was includible in Bob's estate. Where to mail 1040x The basis of Ann's half of the property is $50,000 after Bob died (half of the $100,000 FMV). Where to mail 1040x The basis of the other half to Bob's heirs is also $50,000. Where to mail 1040x   For more information about the basis of assets, see Publication 551, Basis of Assets. Where to mail 1040x    The above basis rule does not apply if your spouse died in 2010 and the spouse's executor elected out of the estate tax, in which case section 1022 will apply. Where to mail 1040x See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for additional information. Where to mail 1040x Divorce or separation. Where to mail 1040x    If spouses divorce or separate, the (equal or unequal) division of community property in connection with the divorce or property settlement does not result in a gain or loss. Where to mail 1040x For registered domestic partners, an unequal division of community property in a property settlement may result in a gain or loss. Where to mail 1040x For information on the tax consequences of the division of property under a property settlement or divorce decree, see Publication 504. Where to mail 1040x   Each spouse (or each registered domestic partner) is taxed on half the community income for the part of the year before the community ends. Where to mail 1040x However, see Spouses living apart all year , earlier. Where to mail 1040x Any income received after the community ends is separate income. Where to mail 1040x This separate income is taxable only to the spouse (or the registered domestic partner) to whom it belongs. Where to mail 1040x   An absolute decree of divorce or annulment ends the marital community in all community property states. Where to mail 1040x A decree of annulment, even though it holds that no valid marriage ever existed, usually does not nullify community property rights arising during the “marriage. Where to mail 1040x ” However, you should check your state law for exceptions. Where to mail 1040x   A decree of legal separation or of separate maintenance may or may not end the marital community. Where to mail 1040x The court issuing the decree may terminate the marital community and divide the property between the spouses. Where to mail 1040x   A separation agreement may divide the community property between you and your spouse. Where to mail 1040x It may provide that this property, along with future earnings and property acquired, will be separate property. Where to mail 1040x This agreement may end the community. Where to mail 1040x   In some states, the marital community ends when the spouses permanently separate, even if there is no formal agreement. Where to mail 1040x Check your state law. Where to mail 1040x   If you are a registered domestic partner, you should check your state law to determine when the community ends. Where to mail 1040x Preparing a Federal Income Tax Return The following discussion does not apply to spouses who meet the conditions under Spouses living apart all year , discussed earlier. Where to mail 1040x Those spouses must report their community income as explained in that discussion. Where to mail 1040x Joint Return Versus Separate Returns Ordinarily, filing a joint return will give you a greater tax advantage than filing a separate return. Where to mail 1040x But in some cases, your combined income tax on separate returns may be less than it would be on a joint return. Where to mail 1040x This discussion concerning joint versus separate returns does not apply to registered domestic partners. Where to mail 1040x The following rules apply if your filing status is married filing separately. Where to mail 1040x You should itemize deductions if your spouse itemizes deductions, because you cannot claim the standard deduction. Where to mail 1040x You cannot take the credit for child and dependent care expenses in most instances. Where to mail 1040x You cannot take the earned income credit. Where to mail 1040x You cannot exclude any interest income from qualified U. Where to mail 1040x S. Where to mail 1040x savings bonds that you used for higher education expenses. Where to mail 1040x You cannot take the credit for the elderly or the disabled unless you lived apart from your spouse all year. Where to mail 1040x You may have to include in income more of any social security benefits (including any equivalent railroad retirement benefits) you received during the year than you would on a joint return. Where to mail 1040x You cannot deduct interest paid on a qualified student loan. Where to mail 1040x You cannot take the education credits. Where to mail 1040x You may have a smaller child tax credit than you would on a joint return. Where to mail 1040x You cannot take the exclusion or credit for adoption expenses in most instances. Where to mail 1040x Figure your tax both on a joint return and on separate returns under the community property laws of your state. Where to mail 1040x You can then compare the tax figured under both methods and use the one that results in less tax. Where to mail 1040x Separate Return Preparation If you file separate returns, you and your spouse must each report half of your combined community income and deductions in addition to your separate income and deductions. Where to mail 1040x Each of you must complete and attach Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. Where to mail 1040x On the appropriate lines of your separate Form 1040, list only your share of the income and deductions on the appropriate lines of your separate tax returns (wages, interest, dividends, etc. Where to mail 1040x ). Where to mail 1040x The same reporting rule applies to registered domestic partners. Where to mail 1040x For a discussion of the effect of community property laws on certain items of income, deductions, credits, and other return amounts, see Identifying Income, Deductions, and Credits , earlier. Where to mail 1040x Attach your Form 8958 to your separate return showing how you figured the income, deductions, and federal income tax withheld that each of you reported. Where to mail 1040x Form 8958 is used for married spouses in community property states who choose to file married filing separately. Where to mail 1040x Form 8958 is also used for registered domestic partners who are domiciled in Nevada, Washington, or California. Where to mail 1040x A registered domestic partner in Nevada, Washington, or California must follow state community property laws and report half the combined community income of the individual and his or her registered domestic partner. Where to mail 1040x Extension of time to file. Where to mail 1040x    An extension of time for filing your separate return does not extend the time for filing your spouse's (or your registered domestic partner's) separate return. Where to mail 1040x If you and your spouse file a joint return, you cannot file separate returns after the due date for filing either separate return has passed. Where to mail 1040x How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Where to mail 1040x Free help with your tax return. Where to mail 1040x    You can get free help preparing your return nationwide from IRS-certified volunteers. Where to mail 1040x The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Where to mail 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Where to mail 1040x Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Where to mail 1040x In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Where to mail 1040x To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Where to mail 1040x gov, download the IRS2Go app, or call 1-800-906-9887. Where to mail 1040x   As part of the TCE program, AARP offers the Tax-Aide counseling program. Where to mail 1040x To find the nearest AARP Tax-Aide site, visit AARP's website at www. Where to mail 1040x aarp. Where to mail 1040x org/money/taxaide or call 1-888-227-7669. Where to mail 1040x For more information on these programs, go to IRS. Where to mail 1040x gov and enter “VITA” in the search box. Where to mail 1040x Internet. Where to mail 1040x    IRS. Where to mail 1040x gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Where to mail 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Where to mail 1040x Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Where to mail 1040x Check the status of your 2013 refund with the Where's My Refund? application on IRS. Where to mail 1040x gov or download the IRS2Go app and select the Refund Status option. Where to mail 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Where to mail 1040x Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Where to mail 1040x You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Where to mail 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Where to mail 1040x Use the Interactive Tax Assistant (ITA) to research your tax questions. Where to mail 1040x No need to wait on the phone or stand in line. Where to mail 1040x The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Where to mail 1040x When you reach the response screen, you can print the entire interview and the final response for your records. Where to mail 1040x New subject areas are added on a regular basis. Where to mail 1040x  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Where to mail 1040x gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Where to mail 1040x You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Where to mail 1040x The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Where to mail 1040x When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Where to mail 1040x Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Where to mail 1040x You can also ask the IRS to mail a return or an account transcript to you. Where to mail 1040x Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Where to mail 1040x gov or by calling 1-800-908-9946. Where to mail 1040x Tax return and tax account transcripts are generally available for the current year and the past three years. Where to mail 1040x Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Where to mail 1040x Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Where to mail 1040x If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Where to mail 1040x Check the status of your amended return using Where's My Amended Return? Go to IRS. Where to mail 1040x gov and enter Where's My Amended Return? in the search box. Where to mail 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Where to mail 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Where to mail 1040x Make a payment using one of several safe and convenient electronic payment options available on IRS. Where to mail 1040x gov. Where to mail 1040x Select the Payment tab on the front page of IRS. Where to mail 1040x gov for more information. Where to mail 1040x Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Where to mail 1040x Figure your income tax withholding with the IRS Withholding Calculator on IRS. Where to mail 1040x gov. Where to mail 1040x Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Where to mail 1040x Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Where to mail 1040x gov. Where to mail 1040x Request an Electronic Filing PIN by going to IRS. Where to mail 1040x gov and entering Electronic Filing PIN in the search box. Where to mail 1040x Download forms, instructions and publications, including accessible versions for people with disabilities. Where to mail 1040x Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Where to mail 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Where to mail 1040x An employee can answer questions about your tax account or help you set up a payment plan. Where to mail 1040x Before you visit, check the Office Locator on IRS. Where to mail 1040x gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Where to mail 1040x If you have a special need, such as a disability, you can request an appointment. Where to mail 1040x Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Where to mail 1040x Apply for an Employer Identification Number (EIN). Where to mail 1040x Go to IRS. Where to mail 1040x gov and enter Apply for an EIN in the search box. Where to mail 1040x Read the Internal Revenue Code, regulations, or other official guidance. Where to mail 1040x Read Internal Revenue Bulletins. Where to mail 1040x Sign up to receive local and national tax news and more by email. Where to mail 1040x Just click on “subscriptions” above the search box on IRS. Where to mail 1040x gov and choose from a variety of options. Where to mail 1040x    Phone. Where to mail 1040x You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Where to mail 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Where to mail 1040x Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Where to mail 1040x gov, or download the IRS2Go app. Where to mail 1040x Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Where to mail 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Where to mail 1040x Most VITA and TCE sites offer free electronic filing. Where to mail 1040x Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Where to mail 1040x Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Where to mail 1040x Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Where to mail 1040x If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Where to mail 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Where to mail 1040x Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Where to mail 1040x Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Where to mail 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Where to mail 1040x Note, the above information is for our automated hotline. Where to mail 1040x Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Where to mail 1040x Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Where to mail 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Where to mail 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Where to mail 1040x Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Where to mail 1040x You should receive your order within 10 business days. Where to mail 1040x Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Where to mail 1040x If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Where to mail 1040x Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Where to mail 1040x The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Where to mail 1040x These individuals can also contact the IRS through relay services such as the Federal Relay Service. Where to mail 1040x    Walk-in. Where to mail 1040x You can find a selection of forms, publications and services — in-person. Where to mail 1040x Products. Where to mail 1040x You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Where to mail 1040x Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Where to mail 1040x Services. Where to mail 1040x You can walk in to your local TAC for face-to-face tax help. Where to mail 1040x An employee can answer questions about your tax account or help you set up a payment plan. Where to mail 1040x Before visiting, use the Office Locator tool on IRS. Where to mail 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Where to mail 1040x    Mail. Where to mail 1040x You can send your order for forms, instructions, and publications to the address below. Where to mail 1040x You should receive a response within 10 business days after your request is received. Where to mail 1040x Internal Revenue Service 1201 N. Where to mail 1040x Mitsubishi Motorway Bloomington, IL 61705-6613   The Taxpayer Advocate Service Is Here to Help You. Where to mail 1040x The Taxpayer Advocate Service (TAS) is your voice at the IRS. Where to mail 1040x Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Where to mail 1040x   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Where to mail 1040x We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Where to mail 1040x You face (or your business is facing) an immediate threat of adverse action. Where to mail 1040x You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Where to mail 1040x   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Where to mail 1040x Here's why we can help: TAS is an independent organization within the IRS. Where to mail 1040x Our advocates know how to work with the IRS. Where to mail 1040x Our services are free and tailored to meet your needs. Where to mail 1040x We have offices in every state, the District of Columbia, and Puerto Rico. Where to mail 1040x   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Where to mail 1040x irs. Where to mail 1040x gov/advocate, or call us toll-free at 1-877-777-4778. Where to mail 1040x   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Where to mail 1040x If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Where to mail 1040x irs. Where to mail 1040x gov/sams. Where to mail 1040x Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Where to mail 1040x Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Where to mail 1040x Visit www. Where to mail 1040x irs. Where to mail 1040x gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List. Where to mail 1040x Prev  Up  Next   Home   More Online Publications
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Where to mail 1040x Publication 525 - Main Content Table of Contents Employee CompensationBabysitting. Where to mail 1040x Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Business and Investment IncomeRents From Personal Property Royalties Partnership Income S Corporation Income Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Miscellaneous IncomeBartering Canceled Debts Host or Hostess Life Insurance Proceeds Recoveries Survivor Benefits Unemployment Benefits Welfare and Other Public Assistance Benefits Other Income RepaymentsMethod 1. Where to mail 1040x Method 2. Where to mail 1040x How To Get Tax HelpLow Income Taxpayer Clinics Employee Compensation In most cases, you must include in gross income everything you receive in payment for personal services. Where to mail 1040x In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. Where to mail 1040x You should receive a Form W-2 from your employer or former employer showing the pay you received for your services. Where to mail 1040x Include all your pay on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ, even if you do not receive Form W-2, or you receive a Form W-2 that does not include all pay that should be included on the Form W-2. Where to mail 1040x 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. Where to mail 1040x These wages must be included on line 7 of Form 1040. Where to mail 1040x See Form 8919 for more information. Where to mail 1040x Childcare providers. Where to mail 1040x   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. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x Babysitting. Where to mail 1040x   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. Where to mail 1040x Bankruptcy. Where to mail 1040x   If you filed for bankruptcy under Chapter 11 of the Bankruptcy Code, you must allocate your wages and withheld income tax. Where to mail 1040x Your W-2 will show your total wages and withheld income tax for the year. Where to mail 1040x On your tax return, you report the wages and withheld income tax for the period before you filed for bankruptcy. Where to mail 1040x Your bankruptcy estate reports the wages and withheld income tax for the period after you filed for bankruptcy. Where to mail 1040x If you receive other information returns (such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income) that report gross income to you, rather than to the bankruptcy estate, you must allocate that income. Where to mail 1040x   The only exception is for purposes of figuring your self-employment tax, if you are self-employed. Where to mail 1040x For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case. Where to mail 1040x   You must file a statement with your income tax return stating you filed a Chapter 11 bankruptcy case. Where to mail 1040x The statement must show the allocation and describe the method used to make the allocation. Where to mail 1040x For a sample of this statement and other information, see Notice 2006-83, 2006-40 I. Where to mail 1040x R. Where to mail 1040x B. Where to mail 1040x 596, available at www. Where to mail 1040x irs. Where to mail 1040x gov/irb/2006-40_IRB/ar12. Where to mail 1040x html. Where to mail 1040x Miscellaneous Compensation This section discusses many types of employee compensation. Where to mail 1040x The subjects are arranged in alphabetical order. Where to mail 1040x Advance commissions and other earnings. Where to mail 1040x   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. Where to mail 1040x    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. Where to mail 1040x If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), Itemized Deductions, or you may be able to take a credit for that year. Where to mail 1040x See Repayments , later. Where to mail 1040x Allowances and reimbursements. Where to mail 1040x    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Where to mail 1040x If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. Where to mail 1040x Back pay awards. Where to mail 1040x   Include in income amounts you are awarded in a settlement or judgment for back pay. Where to mail 1040x These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. Where to mail 1040x They should be reported to you by your employer on Form W-2. Where to mail 1040x Bonuses and awards. Where to mail 1040x    Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. Where to mail 1040x These include prizes such as vacation trips for meeting sales goals. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x Employee achievement award. Where to mail 1040x   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. Where to mail 1040x 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. Where to mail 1040x Your employer can tell you whether your award is a qualified plan award. Where to mail 1040x 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. Where to mail 1040x   However, the exclusion does not apply to the following awards. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x Example. Where to mail 1040x 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. Where to mail 1040x Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. Where to mail 1040x 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. Where to mail 1040x Differential wage payments. Where to mail 1040x   This is any payment made by an employer to an individual for any period during which the individual is, 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 the individual would have received from the employer for that period. Where to mail 1040x These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. Where to mail 1040x The payments are reported as wages on Form W-2. Where to mail 1040x Government cost-of-living allowances. Where to mail 1040x   Most payments received by U. Where to mail 1040x S. Where to mail 1040x Government civilian employees for working abroad are taxable. Where to mail 1040x However, certain cost-of-living allowances are tax free. Where to mail 1040x Publication 516, U. Where to mail 1040x S. Where to mail 1040x Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Where to mail 1040x Nonqualified deferred compensation plans. Where to mail 1040x   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. Where to mail 1040x This amount is shown on Form W-2, box 12, using code Y. Where to mail 1040x This amount is not included in your income. Where to mail 1040x   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. Where to mail 1040x This amount is included in your wages shown on Form W-2, box 1. Where to mail 1040x It is also shown on Form W-2, box 12, using code Z. Where to mail 1040x Nonqualified deferred compensation plans of nonqualified entities. Where to mail 1040x   In most cases, any compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity is included in gross income when there is no substantial risk of forfeiture of the rights to such compensation. Where to mail 1040x For this purpose, a nonqualified entity is: A foreign corporation unless substantially all of its income is: Effectively connected with the conduct of a trade or business in the United States, or Subject to a comprehensive foreign income tax. Where to mail 1040x A partnership unless substantially all of its income is allocated to persons other than: Foreign persons for whom the income is not subject to a comprehensive foreign income tax, and Tax-exempt organizations. Where to mail 1040x Note received for services. Where to mail 1040x   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. Where to mail 1040x 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. Where to mail 1040x Do not include that part again in your income. Where to mail 1040x Include the rest of the payment in your income in the year of payment. Where to mail 1040x   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. Where to mail 1040x Severance pay. Where to mail 1040x   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. Where to mail 1040x Accrued leave payment. Where to mail 1040x   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. Where to mail 1040x   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. Where to mail 1040x You can reduce gross wages by the amount you repaid in the same tax year in which you received it. Where to mail 1040x 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 your return and the wages on your Forms W-2. Where to mail 1040x Outplacement services. Where to mail 1040x   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. Where to mail 1040x    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). Where to mail 1040x Sick pay. Where to mail 1040x   Pay you receive from your employer while you are sick or injured is part of your salary or wages. Where to mail 1040x In addition, you must include in your income sick pay benefits received from any of the following payers. Where to mail 1040x A welfare fund. Where to mail 1040x A state sickness or disability fund. Where to mail 1040x An association of employers or employees. Where to mail 1040x An insurance company, if your employer paid for the plan. Where to mail 1040x However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. Where to mail 1040x For more information, see Other Sickness and Injury Benefits under Sickness and Injury Benefits, later. Where to mail 1040x Social security and Medicare taxes paid by employer. Where to mail 1040x   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. Where to mail 1040x The payment is also treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. Where to mail 1040x However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. Where to mail 1040x Stock appreciation rights. Where to mail 1040x   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. Where to mail 1040x 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. Where to mail 1040x You include the cash payment in income in the year you use the right. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x See Valuation of Fringe Benefits , later in this discussion, for information on how to determine the amount to include in income. Where to mail 1040x Recipient of fringe benefit. Where to mail 1040x   You are the recipient of a fringe benefit if you perform the services for which the fringe benefit is provided. Where to mail 1040x You are considered to be the recipient even if it is given to another person, such as a member of your family. Where to mail 1040x An example is a car your employer gives to your spouse for services you perform. Where to mail 1040x The car is considered to have been provided to you and not to your spouse. Where to mail 1040x   You do not have to be an employee of the provider to be a recipient of a fringe benefit. Where to mail 1040x If you are a partner, director, or independent contractor, you also can be the recipient of a fringe benefit. Where to mail 1040x Provider of benefit. Where to mail 1040x   Your employer or another person for whom you perform services is the provider of a fringe benefit regardless of whether that person actually provides the fringe benefit to you. Where to mail 1040x The provider can be a client or customer of an independent contractor. Where to mail 1040x Accounting period. Where to mail 1040x   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. Where to mail 1040x Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. Where to mail 1040x The general rule: benefits are reported for a full calendar year (January 1–December 31). Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x   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). Where to mail 1040x Form W-2. Where to mail 1040x   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. Where to mail 1040x Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). Where to mail 1040x 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). Where to mail 1040x 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. Where to mail 1040x Benefits you receive from the plan may be taxable, as explained, later, under Sickness and Injury Benefits . Where to mail 1040x 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. Where to mail 1040x Long-term care coverage. Where to mail 1040x   Contributions by your employer to provide coverage for long-term care services generally are not included in your income. Where to mail 1040x However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. Where to mail 1040x This amount will be reported as wages in box 1 of your Form W-2. Where to mail 1040x Archer MSA contributions. Where to mail 1040x    Contributions by your employer to your Archer MSA generally are not included in your income. Where to mail 1040x Their total will be reported in box 12 of Form W-2, with code R. Where to mail 1040x You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Where to mail 1040x File the form with your return. Where to mail 1040x Health flexible spending arrangement (health FSA). Where to mail 1040x   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. Where to mail 1040x   Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. Where to mail 1040x The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. Where to mail 1040x For more information, see Notice 2012-40, 2012-26 I. Where to mail 1040x R. Where to mail 1040x B. Where to mail 1040x 1046, available at www. Where to mail 1040x irs. Where to mail 1040x gov/irb/2012-26 IRB/ar09. Where to mail 1040x html. Where to mail 1040x Health reimbursement arrangement (HRA). Where to mail 1040x   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. Where to mail 1040x Health savings accounts (HSA). Where to mail 1040x   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. Where to mail 1040x Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. Where to mail 1040x Contributions made by your employer are not included in your income. Where to mail 1040x Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. Where to mail 1040x Distributions not used for qualified medical expenses are included in your income. Where to mail 1040x See Publication 969 for the requirements of an HSA. Where to mail 1040x   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. Where to mail 1040x The contributions are treated as a distribution of money and are not included in the partner's gross income. Where to mail 1040x 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. Where to mail 1040x In both situations, the partner can deduct the contribution made to the partner's HSA. Where to mail 1040x   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. Where to mail 1040x The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. Where to mail 1040x Qualified HSA funding distribution. Where to mail 1040x   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. Where to mail 1040x See Publication 590, Individual Retirement Arrangements (IRAs), for the requirements for these qualified HSA funding distributions. Where to mail 1040x Failure to maintain eligibility. Where to mail 1040x   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. Where to mail 1040x 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. Where to mail 1040x This income is also subject to an additional 10% tax. Where to mail 1040x 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. Where to mail 1040x See Instructions for Form 8839, Qualified Adoption Expenses, for more information. Where to mail 1040x Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. Where to mail 1040x They also are included as social security and Medicare wages in boxes 3 and 5. Where to mail 1040x However, they are not included as wages in box 1. Where to mail 1040x To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. Where to mail 1040x File the form with your return. Where to mail 1040x Athletic Facilities If your employer provides you with the free or low-cost use of an employer-operated gym or other athletic club on your employer's premises, the value is not included in your compensation. Where to mail 1040x The gym must be used primarily by employees, their spouses, and their dependent children. Where to mail 1040x If your employer pays for a fitness program provided to you at an off-site resort hotel or athletic club, the value of the program is included in your compensation. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x Also see Employee Discounts , later. Where to mail 1040x Holiday gifts. Where to mail 1040x   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. Where to mail 1040x 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. Where to mail 1040x Dependent Care Benefits If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Where to mail 1040x Dependent care benefits include: Amounts your employer pays directly to either you or your care provider for the care of your qualifying person while you work, and The fair market value of care in a daycare facility provided or sponsored by your employer. Where to mail 1040x The amount you can exclude is limited to the lesser of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Where to mail 1040x Your employer must show the total amount of dependent care benefits provided to you during the year under a qualified plan in box 10 of your Form W-2. Where to mail 1040x Your employer also will include any dependent care benefits over $5,000 in your wages shown in box 1 of your Form W-2. Where to mail 1040x To claim the exclusion, you must complete Part III of Form 2441, Child and Dependent Care Expenses. Where to mail 1040x See the Instructions for Form 2441 for more information. Where to mail 1040x Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. Where to mail 1040x For more information, see Publication 970. Where to mail 1040x Employee Discounts If your employer sells you property or services at a discount, you may be able to exclude the amount of the discount from your income. Where to mail 1040x The exclusion applies to discounts on property or services offered to customers in the ordinary course of the line of business in which you work. Where to mail 1040x However, it does not apply to discounts on real property or property commonly held for investment (such as stocks or bonds). Where to mail 1040x The exclusion is limited to the price charged nonemployee customers multiplied by the following percentage. Where to mail 1040x For a discount on property, your employer's gross profit percentage (gross profit divided by gross sales) on all property sold during the employer's previous tax year. Where to mail 1040x (Ask your employer for this percentage. Where to mail 1040x ) For a discount on services, 20%. Where to mail 1040x Financial Counseling Fees Financial counseling fees paid for you by your employer are included in your income and must be reported as part of wages. Where to mail 1040x If the fees are for tax or investment counseling, they can be deducted on Schedule A (Form 1040) as a miscellaneous deduction (subject to the 2%-of-AGI limit). Where to mail 1040x Qualified retirement planning services paid for you by your employer may be excluded from your income. Where to mail 1040x For more information, see Retirement Planning Services , later. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x For exceptions to this rule, see Entire cost excluded , and Entire cost taxed , later. Where to mail 1040x 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. Where to mail 1040x Also, it is shown separately in box 12 with code C. Where to mail 1040x Group-term life insurance. Where to mail 1040x   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. Where to mail 1040x Permanent benefits. Where to mail 1040x   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. Where to mail 1040x Your employer should be able to tell you the amount to include in your income. Where to mail 1040x Accidental death benefits. Where to mail 1040x   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. Where to mail 1040x Former employer. Where to mail 1040x   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. Where to mail 1040x Also, it is shown separately in box 12 with code C. Where to mail 1040x Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. Where to mail 1040x You must pay these taxes with your income tax return. Where to mail 1040x Include them on line 60, Form 1040, and follow the instructions forline 60. Where to mail 1040x For more information, see the Instructions for Form 1040. Where to mail 1040x Two or more employers. Where to mail 1040x   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. Where to mail 1040x 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. Where to mail 1040x You must figure how much to include in your income. Where to mail 1040x 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. Where to mail 1040x Figuring the taxable cost. Where to mail 1040x    Use the following worksheet to figure the amount to include in your income. Where to mail 1040x   If you pay any part of the cost of the insurance, your entire payment reduces, dollar for dollar, the amount you otherwise would include in your income. Where to mail 1040x However, you cannot reduce the amount to include in your income by: Payments for coverage in a different tax year, Payments for coverage through a cafeteria plan, unless the payments are after-tax contributions, or Payments for coverage not taxed to you because of the exceptions discussed later under Entire cost excluded . Where to mail 1040x Worksheet 1. Where to mail 1040x Figuring the Cost of Group-Term Life Insurance To Include in Income 1. Where to mail 1040x Enter the total amount of your insurance coverage from your employer(s) 1. Where to mail 1040x   2. Where to mail 1040x Limit on exclusion for employer-provided group-term life insurance coverage 2. Where to mail 1040x 50,000 3. Where to mail 1040x Subtract line 2 from line 1 3. Where to mail 1040x   4. Where to mail 1040x Divide line 3 by $1,000. Where to mail 1040x Figure to the nearest tenth 4. Where to mail 1040x   5. Where to mail 1040x Go to Table 1. Where to mail 1040x 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. Where to mail 1040x   6. Where to mail 1040x Multiply line 4 by line 5 6. Where to mail 1040x     7. Where to mail 1040x Enter the number of full months of coverage at this cost 7. Where to mail 1040x   8. Where to mail 1040x Multiply line 6 by line 7 8. Where to mail 1040x   9. Where to mail 1040x Enter the premiums you paid per month 9. Where to mail 1040x       10. Where to mail 1040x Enter the number of months you paid the  premiums 10. Where to mail 1040x       11. Where to mail 1040x Multiply line 9 by line 10. Where to mail 1040x 11. Where to mail 1040x   12. Where to mail 1040x Subtract line 11 from line 8. Where to mail 1040x Include this amount in your income as wages 12. Where to mail 1040x   Table 1. Where to mail 1040x Cost of $1,000 of Group-Term Life Insurance for One Month   Age Cost     Under 25 $ . Where to mail 1040x 05     25 through 29 . Where to mail 1040x 06     30 through 34 . Where to mail 1040x 08     35 through 39 . Where to mail 1040x 09     40 through 44 . Where to mail 1040x 10     45 through 49 . Where to mail 1040x 15     50 through 54 . Where to mail 1040x 23     55 through 59 . Where to mail 1040x 43     60 through 64 . Where to mail 1040x 66     65 through 69 1. Where to mail 1040x 27     70 and older 2. Where to mail 1040x 06   Example. Where to mail 1040x You are 51 years old and work for employers A and B. Where to mail 1040x Both employers provide group-term life insurance coverage for you for the entire year. Where to mail 1040x Your coverage is $35,000 with employer A and $45,000 with employer B. Where to mail 1040x You pay premiums of $4. Where to mail 1040x 15 a month under the employer B group plan. Where to mail 1040x You figure the amount to include in your income as follows. Where to mail 1040x   Worksheet 1. Where to mail 1040x Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated 1. Where to mail 1040x Enter the total amount of your insurance coverage from your employer(s) 1. Where to mail 1040x 80,000 2. Where to mail 1040x Limit on exclusion for employer-provided group-term life insurance coverage 2. Where to mail 1040x 50,000 3. Where to mail 1040x Subtract line 2 from line 1 3. Where to mail 1040x 30,000 4. Where to mail 1040x Divide line 3 by $1,000. Where to mail 1040x Figure to the nearest tenth 4. Where to mail 1040x 30. Where to mail 1040x 0 5. Where to mail 1040x Go to Table 1. Where to mail 1040x 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. Where to mail 1040x . Where to mail 1040x 23 6. Where to mail 1040x Multiply line 4 by line 5 6. Where to mail 1040x 6. Where to mail 1040x 90 7. Where to mail 1040x Enter the number of full months of coverage at this cost. Where to mail 1040x 7. Where to mail 1040x 12 8. Where to mail 1040x Multiply line 6 by line 7 8. Where to mail 1040x 82. Where to mail 1040x 80 9. Where to mail 1040x Enter the premiums you paid per month 9. Where to mail 1040x 4. Where to mail 1040x 15     10. Where to mail 1040x Enter the number of months you paid the premiums 10. Where to mail 1040x 12     11. Where to mail 1040x Multiply line 9 by line 10. Where to mail 1040x 11. Where to mail 1040x 49. Where to mail 1040x 80 12. Where to mail 1040x Subtract line 11 from line 8. Where to mail 1040x Include this amount in your income as wages 12. Where to mail 1040x 33. Where to mail 1040x 00 The total amount to include in income for the cost of excess group-term life insurance is $33. Where to mail 1040x Neither employer provided over $50,000 insurance coverage, so the wages shown on your Forms W-2 do not include any part of that $33. Where to mail 1040x You must add it to the wages shown on your Forms W-2 and include the total on your return. Where to mail 1040x Entire cost excluded. Where to mail 1040x   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. Where to mail 1040x You are permanently and totally disabled and have ended your employment. Where to mail 1040x Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. Where to mail 1040x A charitable organization 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. Where to mail 1040x (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. Where to mail 1040x ) 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. Where to mail 1040x Entire cost taxed. Where to mail 1040x   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply. Where to mail 1040x The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. Where to mail 1040x You are a key employee and your employer's plan discriminates in favor of key employees. Where to mail 1040x Meals and Lodging You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met. Where to mail 1040x The meals are: Furnished on the business premises of your employer, and Furnished for the convenience of your employer. Where to mail 1040x The lodging is: Furnished on the business premises of your employer, Furnished for the convenience of your employer, and A condition of your employment. Where to mail 1040x (You must accept it in order to be able to properly perform your duties. Where to mail 1040x ) You also do not include in your income the value of meals or meal money that qualifies as a de minimis fringe benefit. Where to mail 1040x See De Minimis (Minimal) Benefits , earlier. Where to mail 1040x Faculty lodging. Where to mail 1040x   If you are an employee of an educational institution or an academic health center and you are provided with lodging that does not meet the three conditions given earlier, you still may not have to include the value of the lodging in income. Where to mail 1040x However, the lodging must be qualified campus lodging, and you must pay an adequate rent. Where to mail 1040x Academic health center. Where to mail 1040x   This is an organization that meets the following conditions. Where to mail 1040x Its principal purpose or function is to provide medical or hospital care or medical education or research. Where to mail 1040x It receives payments for graduate medical education under the Social Security Act. Where to mail 1040x One of its principal purposes or functions is to provide and teach basic and clinical medical science and research using its own faculty. Where to mail 1040x Qualified campus lodging. Where to mail 1040x   Qualified campus lodging is lodging furnished to you, your spouse, or one of your dependents by, or on behalf of, the institution or center for use as a home. Where to mail 1040x The lodging must be located on or near a campus of the educational institution or academic health center. Where to mail 1040x Adequate rent. Where to mail 1040x   The amount of rent you pay for the year for qualified campus lodging is considered adequate if it is at least equal to the lesser of: 5% of the appraised value of the lodging, or The average of rentals paid by individuals (other than employees or students) for comparable lodging held for rent by the educational institution. Where to mail 1040x If the amount you pay is less than the lesser of these amounts, you must include the difference in your income. Where to mail 1040x   The lodging must be appraised by an independent appraiser and the appraisal must be reviewed on an annual basis. Where to mail 1040x Example. Where to mail 1040x Carl Johnson, a sociology professor for State University, rents a home from the university that is qualified campus lodging. Where to mail 1040x The house is appraised at $200,000. Where to mail 1040x The average rent paid for comparable university lodging by persons other than employees or students is $14,000 a year. Where to mail 1040x Carl pays an annual rent of $11,000. Where to mail 1040x Carl does not include in his income any rental value because the rent he pays equals at least 5% of the appraised value of the house (5% × $200,000 = $10,000). Where to mail 1040x If Carl paid annual rent of only $8,000, he would have to include $2,000 in his income ($10,000 − $8,000). Where to mail 1040x Moving Expense Reimbursements In most cases, if your employer pays for your moving expenses (either directly or indirectly) and the expenses would have been deductible if you paid them yourself, the value is not included in your income. Where to mail 1040x See Publication 521 for more information. Where to mail 1040x No-Additional-Cost Services The value of services you receive from your employer for free, at cost, or for a reduced price is not included in your income if your employer: Offers the same service for sale to customers in the ordinary course of the line of business in which you work, and Does not have a substantial additional cost (including any sales income given up) to provide you with the service (regardless of what you paid for the service). Where to mail 1040x In most cases, no-additional-cost services are excess capacity services, such as airline, bus, or train tickets, hotel rooms, and telephone services. Where to mail 1040x Example. Where to mail 1040x You are employed as a flight attendant for a company that owns both an airline and a hotel chain. Where to mail 1040x Your employer allows you to take personal flights (if there is an unoccupied seat) and stay in any one of their hotels (if there is an unoccupied room) at no cost to you. Where to mail 1040x The value of the personal flight is not included in your income. Where to mail 1040x However, the value of the hotel room is included in your income because you do not work in the hotel business. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. Where to mail 1040x Also, see Financial Counseling Fees , earlier. Where to mail 1040x Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. Where to mail 1040x 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. Where to mail 1040x Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. Where to mail 1040x 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. Where to mail 1040x Exclusion limit. Where to mail 1040x   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. Where to mail 1040x   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. Where to mail 1040x   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. Where to mail 1040x   If the benefits have a value that is more than these limits, the excess must be included in your income. Where to mail 1040x You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. Where to mail 1040x Commuter highway vehicle. Where to mail 1040x   This is a highway vehicle that seats at least six adults (not including the driver). Where to mail 1040x 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). Where to mail 1040x Transit pass. Where to mail 1040x   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. Where to mail 1040x Qualified parking. Where to mail 1040x   This is parking provided to an employee at or near the employer's place of business. Where to mail 1040x 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. Where to mail 1040x It does not include parking at or near the employee's home. Where to mail 1040x Qualified bicycle commuting. Where to mail 1040x   This is reimbursement based on the number of qualified bicycle commuting months for the year. Where to mail 1040x 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. Where to mail 1040x The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. Where to mail 1040x Tuition Reduction You can exclude a qualified tuition reduction from your income. Where to mail 1040x This is the amount of a reduction in tuition: For education (below graduate level) furnished by an educational institution to an employee, former employee who retired or became disabled, or his or her spouse and dependent children. Where to mail 1040x For education furnished to a graduate student at an educational institution if the graduate student is engaged in teaching or research activities for that institution. Where to mail 1040x Representing payment for teaching, research, or other services if you receive the amount under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance program. Where to mail 1040x For more information, see Publication 970. Where to mail 1040x Working Condition Benefits If your employer provides you with a product or service and the cost of it would have been allowable as a business or depreciation deduction if you paid for it yourself, the cost is not included in your income. Where to mail 1040x Example. Where to mail 1040x You work as an engineer and your employer provides you with a subscription to an engineering trade magazine. Where to mail 1040x The cost of the subscription is not included in your income because the cost would have been allowable to you as a business deduction if you had paid for the subscription yourself. Where to mail 1040x Valuation of Fringe Benefits If a fringe benefit is included in your income, the amount included is generally its value determined under the general valuation rule or under the special valuation rules. Where to mail 1040x For an exception, see Group-Term Life Insurance , earlier. Where to mail 1040x General valuation rule. Where to mail 1040x   You must include in your income the amount by which the fair market value of the fringe benefit is more than the sum of: The amount, if any, you paid for the benefit, plus The amount, if any, specifically excluded from your income by law. Where to mail 1040x If you pay fair market value for a fringe benefit, no amount is included in your income. Where to mail 1040x Fair market value. Where to mail 1040x   The fair market value of a fringe benefit is determined by all the facts and circumstances. Where to mail 1040x It is the amount you would have to pay a third party to buy or lease the benefit. Where to mail 1040x This is determined without regard to: Your perceived value of the benefit, or The amount your employer paid for the benefit. Where to mail 1040x Employer-provided vehicles. Where to mail 1040x   If your employer provides a car (or other highway motor vehicle) to you, your personal use of the car is usually a taxable noncash fringe benefit. Where to mail 1040x   Under the general valuation rules, the value of an employer-provided vehicle is the amount you would have to pay a third party to lease the same or a similar vehicle on the same or comparable terms in the same geographic area where you use the vehicle. Where to mail 1040x An example of a comparable lease term is the amount of time the vehicle is available for your use, such as a 1-year period. Where to mail 1040x The value cannot be determined by multiplying a cents-per-mile rate times the number of miles driven unless you prove the vehicle could have been leased on a cents-per-mile basis. Where to mail 1040x Flights on employer-provided aircraft. Where to mail 1040x   Under the general valuation rules, if your flight on an employer-provided piloted aircraft is primarily personal and you control the use of the aircraft for the flight, the value is the amount it would cost to charter the flight from a third party. Where to mail 1040x   If there is more than one employee on the flight, the cost to charter the aircraft must be divided among those employees. Where to mail 1040x The division must be based on all the facts, including which employee or employees control the use of the aircraft. Where to mail 1040x Special valuation rules. Where to mail 1040x   You generally can use a special valuation rule for a fringe benefit only if your employer uses the rule. Where to mail 1040x If your employer uses a special valuation rule, you cannot use a different special rule to value that benefit. Where to mail 1040x You always can use the general valuation rule discussed earlier, based on facts and circumstances, even if your employer uses a special rule. Where to mail 1040x   If you and your employer use a special valuation rule, you must include in your income the amount your employer determines under the special rule minus the sum of: Any amount you repaid your employer, plus Any amount specifically excluded from income by law. Where to mail 1040x The special valuation rules are the following. Where to mail 1040x The automobile lease rule. Where to mail 1040x The vehicle cents-per-mile rule. Where to mail 1040x The commuting rule. Where to mail 1040x The unsafe conditions commuting rule. Where to mail 1040x The employer-operated eating-facility rule. Where to mail 1040x   For more information on these rules, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Where to mail 1040x    For information on the non-commercial flight and commercial flight valuation rules, see sections 1. Where to mail 1040x 61-21(g) and 1. Where to mail 1040x 61-21(h) of the regulations. Where to mail 1040x Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. Where to mail 1040x (Your employer can tell you whether your retirement plan is qualified. Where to mail 1040x ) However, the cost of life insurance coverage included in the plan may have to be included. Where to mail 1040x See Group-Term Life Insurance , earlier, under Fringe Benefits. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x For information on distributions from retirement plans, see Publication 575 (or Publication 721, Tax Guide to U. Where to mail 1040x S. Where to mail 1040x Civil Service Retirement Benefits, if you are a federal employee or retiree). Where to mail 1040x Elective Deferrals 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. Where to mail 1040x The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. Where to mail 1040x An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. Where to mail 1040x However, it is included in wages subject to social security and Medicare taxes. Where to mail 1040x Elective deferrals include elective contributions to the following retirement plans. Where to mail 1040x Cash or deferred arrangements (section 401(k) plans). Where to mail 1040x The Thrift Savings Plan for federal employees. Where to mail 1040x Salary reduction simplified employee pension plans (SARSEP). Where to mail 1040x Savings incentive match plans for employees (SIMPLE plans). Where to mail 1040x Tax-sheltered annuity plans (403(b) plans). Where to mail 1040x Section 501(c)(18)(D) plans. Where to mail 1040x (But see Reporting by employer , later. Where to mail 1040x ) Section 457 plans. Where to mail 1040x Qualified automatic contribution arrangements. Where to mail 1040x   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. Where to mail 1040x You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. Where to mail 1040x 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. Where to mail 1040x   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. Where to mail 1040x Overall limit on deferrals. Where to mail 1040x   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), earlier. Where to mail 1040x The specific plan limits for the plans listed in (4) through (7), earlier, are discussed later. Where to mail 1040x Amounts deferred under specific plan limits are part of the overall limit on deferrals. Where to mail 1040x   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. Where to mail 1040x However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. Where to mail 1040x Catch-up contributions. Where to mail 1040x   You may be allowed catch-up contributions (additional elective deferrals) if you are age 50 or older by the end of your tax year. Where to mail 1040x For more information about catch-up contributions to 403(b) plans, see chapter 6 of Publication 571, Tax Sheltered Annuity Plans. Where to mail 1040x   For more information about additional elective deferrals to: SEPs (SARSEPs), see Salary Reduction Simplified Employee Pension in chapter 2 of Publication 560, Retirement Plans for Small Business. Where to mail 1040x SIMPLE plans, see How Much Can Be Contributed on Your Behalf? in chapter 3 of Publication 590. Where to mail 1040x Section 457 plans, see Limit for deferrals under section 457 plans , later. Where to mail 1040x Limit for deferrals under SIMPLE plans. Where to mail 1040x   If you are a participant in a SIMPLE plan, you generally should not have deferred more than $12,000 in 2013. Where to mail 1040x Amounts you defer under a SIMPLE plan count toward the overall limit ($17,500 for 2013) and may affect the amount you can defer under other elective deferral plans. Where to mail 1040x Limit for tax-sheltered annuities. Where to mail 1040x   If you are a participant in a tax-sheltered annuity plan (403(b) plan), the limit on elective deferrals for 2013 generally is $17,500. Where to mail 1040x However, if you have at least 15 years of service with a public school system, a hospital, a home health service agency, a health and welfare service agency, a church, or a convention or association of churches (or associated organization), the limit on elective deferrals is increased by the least of the following amounts. Where to mail 1040x $3,000, $15,000, reduced by the sum of: The additional pre-tax elective deferrals made in earlier years because of this rule, plus The aggregate amount of designated Roth contributions permitted for prior tax years because of this rule, or $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years. Where to mail 1040x   If you qualify for the 15-year rule, your elective deferrals under this limit can be as high as $20,500 for 2013. Where to mail 1040x   For more information, see Publication 571. Where to mail 1040x Limit for deferral under section 501(c)(18) plans. Where to mail 1040x   If you are a participant in a section 501(c)(18) plan (a trust created before June 25, 1959, funded only by employee contributions), you should have deferred no more than the lesser of $7,000 or 25% of your compensation. Where to mail 1040x Amounts you defer under a section 501(c)(18) plan count toward the overall limit ($17,500 in 2013) and may affect the amount you can defer under other elective deferral plans. Where to mail 1040x Limit for deferrals under section 457 plans. Where to mail 1040x   If you are a participant in a section 457 plan (a deferred compensation plan for employees of state or local governments or tax-exempt organizations), you should have deferred no more than the lesser of your includible compensation or $17,500 in 2013. Where to mail 1040x However, if you are within 3 years of normal retirement age, you may be allowed an increased limit if the plan allows it. Where to mail 1040x See Increased limit , later. Where to mail 1040x Includible compensation. Where to mail 1040x   This is the pay you received for the year from the employer who maintained the section 457 plan. Where to mail 1040x In most cases, it includes all the following payments. Where to mail 1040x Wages and salaries. Where to mail 1040x Fees for professional services. Where to mail 1040x The value of any employer-provided qualified transportation fringe benefit (defined under Transportation , earlier) that is not included in your income. Where to mail 1040x Other amounts received (cash or noncash) for personal services you performed, including, but not limited to, the following items. Where to mail 1040x Commissions and tips. Where to mail 1040x Fringe benefits. Where to mail 1040x Bonuses. Where to mail 1040x Employer contributions (elective deferrals) to: The section 457 plan. Where to mail 1040x Qualified cash or deferred arrangements (section 401(k) plans) that are not included in your income. Where to mail 1040x A salary reduction simplified employee pension (SARSEP). Where to mail 1040x A tax-sheltered annuity (section 403(b) plan). Where to mail 1040x A savings incentive match plan for employees (SIMPLE plan). Where to mail 1040x A section 125 cafeteria plan. Where to mail 1040x   Instead of using the amounts listed earlier to determine your includible compensation, your employer can use any of the following amounts. Where to mail 1040x Your wages as defined for income tax withholding purposes. Where to mail 1040x Your wages as reported in box 1 of Form W-2. Where to mail 1040x Your wages that are subject to social security withholding (including elective deferrals). Where to mail 1040x Increased limit. Where to mail 1040x   During any, or all, of the last 3 years ending before you reach normal retirement age under the plan, your plan may provide that your limit is the lesser of: Twice the annual limit ($35,000 for 2013), or The basic annual limit plus the amount of the basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions). Where to mail 1040x Catch-up contributions. Where to mail 1040x   You generally can have additional elective deferrals made to your governmental section 457 plan if: You reached age 50 by the end of the year, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions. Where to mail 1040x If you qualify, your limit can be the lesser of your includible compensation or $17,500, plus $5,500. Where to mail 1040x However, if you are within 3 years of retirement age and your plan provides the increased limit, discussed earlier, that limit may be higher. Where to mail 1040x Designated Roth contributions. Where to mail 1040x   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. Where to mail 1040x Designated Roth contributions are treated as elective deferrals, except that they are included in income. Where to mail 1040x Your retirement plan must maintain separate accounts and recordkeeping for the designated Roth contributions. Where to mail 1040x   Qualified distributions from a Roth plan are not included in income. Where to mail 1040x In most cases, a distribution made before the end of the 5-tax-year period beginning with the first tax year for which you made a designated Roth contribution to the plan is not a qualified distribution. Where to mail 1040x Reporting by employer. Where to mail 1040x   Your employer generally should not include elective deferrals in your wages in box 1 of Form W-2. Where to mail 1040x Instead, your employer should mark the Retirement plan checkbox in box 13 and show the total amount deferred in box 12. Where to mail 1040x Section 501(c)(18)(D) contributions. Where to mail 1040x   Wages shown in box 1 of your Form W-2 should not have been reduced for contributions you made to a section 501(c)(18)(D) retirement plan. Where to mail 1040x The amount you contributed should be identified with code “H” in box 12. Where to mail 1040x You may deduct the amount deferred subject to the limits that apply. Where to mail 1040x Include your deduction in the total on Form 1040, line 36. Where to mail 1040x Enter the amount and “501(c)(18)(D)” on the dotted line next to line 36. Where to mail 1040x Designated Roth contributions. Where to mail 1040x    These contributions are elective deferrals but are included in your wages in box 1 of Form W-2. Where to mail 1040x Designated Roth contributions to a section 401(k) plan are reported using code AA in box 12, or, for section 403(b) plans, code BB in box 12. Where to mail 1040x Excess deferrals. Where to mail 1040x   If your deferrals exceed the limit, you must notify your plan by the date required by the plan. Where to mail 1040x If the plan permits, the excess amount will be distributed to you. Where to mail 1040x If you participate in more than one plan, you can have the excess paid out of any of the plans that permit these distributions. Where to mail 1040x You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. Where to mail 1040x The plan then must pay you the amount of the excess, along with any income earned on that amount, by April 15 of the following year. Where to mail 1040x   You must include the excess deferral in your income for the year of the deferral unless you have an excess deferral of a designated Roth contribution. Where to mail 1040x File Form 1040 to add the excess deferral amount to your wages on line 7. Where to mail 1040x Do not use Form 1040A or Form 1040EZ to report excess deferral amounts. Where to mail 1040x Excess not distributed. Where to mail 1040x   If you do not take out the excess amount, you cannot include it in the cost of the contract even though you included it in your income. Where to mail 1040x Therefore, you are taxed twice on the excess deferral left in the plan—once when you contribute it, and again when you receive it as a distribution. Where to mail 1040x Excess distributed to you. Where to mail 1040x   If you take out the excess after the year of the deferral and you receive the corrective distribution by April 15 of the following year, do not include it in income again in the year you receive it. Where to mail 1040x If you receive it later, you must include it in income in both the year of the deferral and the year you receive it. Where to mail 1040x Any income on the excess deferral taken out is taxable in the tax year in which you take it out. Where to mail 1040x If you take out part of the excess deferral and the income on it, allocate the distribution proportionately between the excess deferral and the income. Where to mail 1040x    You should receive a Form 1099-R for the year in which the excess deferral is distributed to you. Where to mail 1040x Use the following rules to report a corrective distribution shown on Form 1099-R for 2013. Where to mail 1040x If the distribution was for a 2013 excess deferral, your Form 1099-R should have the code “8” in box 7. Where to mail 1040x Add the excess deferral amount to your wages on your 2013 tax return. Where to mail 1040x If the distribution was for a 2013 excess deferral to a designated Roth account, your Form 1099-R should have code “B” in box 7. Where to mail 1040x Do not add this amount to your wages on your 2013 return. Where to mail 1040x If the distribution was for a 2012 excess deferral, your Form 1099-R should have the code “P” in box 7. Where to mail 1040x If you did not add the excess deferral amount to your wages on your 2012 tax return, you must file an amended return on Form 1040X, Amended U. Where to mail 1040x S. Where to mail 1040x Individual Income Tax Return. Where to mail 1040x If you did not receive the distribution by April 15, 2013, you also must add it to your wages on your 2013 tax return. Where to mail 1040x If the distribution was for the income earned on an excess deferral, your Form 1099-R should have the code “8” in box 7. Where to mail 1040x Add the income amount to your wages on your 2013 income tax return, regardless of when the excess deferral was made. Where to mail 1040x Report a loss on a corrective distribution of an excess deferral in the year the excess amount (reduced by the loss) is distributed to you. Where to mail 1040x Include the loss as a negative amount on Form 1040, line 21 and identify it as “Loss on Excess Deferral Distribution. Where to mail 1040x ”    Even though a corrective distribution of excess deferrals is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Where to mail 1040x It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Where to mail 1040x Excess Contributions If you are a highly compensated employee, the total of your elective deferrals and other contributions made for you for any year under a section 401(k) plan or SARSEP can be, as a percentage of pay, no more than 125% of the average deferral percentage (ADP) of all eligible non-highly compensated employees. Where to mail 1040x If the total contributed to the plan is more than the amount allowed under the ADP test, the excess contributions must be either distributed to you or recharacterized as after-tax employee contributions by treating them as distributed to you and then contributed by you to the plan. Where to mail 1040x You must include the excess contributions in your income as wages on Form 1040, line 7. Where to mail 1040x You cannot use Form 1040A or Form 1040EZ to report excess contribution amounts. Where to mail 1040x If you receive a corrective distribution of excess contributions (and allocable income), it is included in your income in the year of the distribution. Where to mail 1040x The allocable income is the amount of gain or loss through the end of the plan year for which the contribution was made that is allocable to the excess contributions. Where to mail 1040x You should receive a Form 1099-R for the year the excess contributions are distributed to you. Where to mail 1040x Add the distribution to your wages for that year. Where to mail 1040x Even though a corrective distribution of excess contributions is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Where to mail 1040x It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Where to mail 1040x Excess Annual Additions The amount contributed in 2013 to a defined contribution plan is generally limited to the lesser of 100% of your compensation or $51,000. Where to mail 1040x Under certain circumstances, contributions that exceed these limits (excess annual additions) may be corrected by a distribution of your elective deferrals or a return of your after-tax contributions and earnings from these contributions. Where to mail 1040x A corrective payment of excess annual additions consisting of elective deferrals or earnings from your after-tax contributions is fully taxable in the year paid. Where to mail 1040x A corrective payment consisting of your after-tax contributions is not taxable. Where to mail 1040x If you received a corrective payment of excess annual additions, you should receive a separate Form 1099-R for the year of the payment with the code “E” in box 7. Where to mail 1040x Report the total payment shown in box 1 of Form 1099-R on line 16a of Form 1040 or line 12a of Form 1040A. Where to mail 1040x Report the taxable amount shown in box 2a of Form 1099-R on line 16b of Form 1040 or line 12b of Form 1040A. Where to mail 1040x Even though a corrective distribution of excess annual additions is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Where to mail 1040x It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Where to mail 1040x Stock Options If you receive an option to buy or sell stock or other property as payment for your services, you may have income when you receive the option (the grant), 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 or property acquired through exercise of the option. Where to mail 1040x The timing, type, and amount of income inclusion depend on whether you receive a nonstatutory stock option or a statutory stock option. Where to mail 1040x Your employer can tell you which kind of option you hold. Where to mail 1040x Nonstatutory Stock Options Grant of option. Where to mail 1040x   If you are granted a nonstatutory stock option, you may have income when you receive the option. Where to mail 1040x The amount of income to include and the time to include it depend on whether the fair market value of the option can be readily determined. Where to mail 1040x The fair market value of an option can be readily determined if it is actively traded on an established market. Where to mail 1040x    The fair market value of an option that is not traded on an established market can be readily determined only if all of the following conditions exist. Where to mail 1040x You can transfer the option. Where to mail 1040x You can exercise the option immediately in full. Where to mail 1040x The option or the property subject to the option is not subject to any condition or restriction (other than a condition to secure payment of the purchase price) that has a significant effect on the fair market value of the option. Where to mail 1040x The fair market value of the option privilege can be readily determined. Where to mail 1040x The option privilege for an option to buy is the opportunity to benefit during the option's exercise period from any increase in the value of property subject to the option without risking any capital. Where to mail 1040x For example, if during the exercise period the fair market value of stock subject to an option is greater than the option's exercise price, a profit may be realized by exercising the option and immediately selling the stock at its higher value. Where to mail 1040x The option privilege for an option to sell is the opportunity to benefit during the exercise period from a decrease in the value of the property subject to the option. Where to mail 1040x If you or a member of your family is an officer, director, or more-than-10% owner of an expatriated corporation, you may owe an excise tax on the value of nonstatutory options and other stock-based compensation from that corporation. Where to mail 1040x For more information on the excise tax, see Internal Revenue Code section 4985. Where to mail 1040x Option with readily determinable value. Where to mail 1040x   If you receive a nonstatutory stock option that has a readily determinable fair market value at the time it is granted to you, the option is treated like other property received as compensation. Where to mail 1040x See Restricted Property , later, for rules on how much income to include and when to include it. Where to mail 1040x However, the rule described in that discussion for choosing to include the value of property in your income for the year of the transfer does not apply to a nonstatutory option. Where to mail 1040x Option without readily determinable value. Where to mail 1040x   If the fair market value of the option is not readily determinable at the time it is granted to you (even if it is determined later), you do not have income until you exercise or transfer the option. Where to mail 1040x    Exercise or transfer of option. Where to mail 1040x   When you exercise a nonstatutory stock option, the amount to include in your income depends on whether the option had a readily determinable value. Where to mail 1040x Option with readily determinable value. Where to mail 1040x   When you exercise a nonstatutory stock option that had a readily determinable value at the time the option was granted, you do not have to include any amount in income. Where to mail 1040x Option without readily determinable value. Where to mail 1040x   When you exercise a nonstatutory stock option that did not have a readily determinable value at the time the option was granted, the restricted prope