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1040x Online Form

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1040x Online Form

1040x online form Publication 516 - Main Content Table of Contents U. 1040x online form S. 1040x online form Tax ReturnFiling Information Foreign Bank Accounts U. 1040x online form S. 1040x online form Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 1040x online form U. 1040x online form S. 1040x online form Tax Return Filing Information If you are a U. 1040x online form S. 1040x online form citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. 1040x online form However, the special rules explained in the following discussions may apply to you. 1040x online form See also Tax Treaty Benefits, later. 1040x online form When To File and Pay Most individual tax returns cover a calendar year, January through December. 1040x online form The regular due date for these tax returns is April 15 of the following year. 1040x online form If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. 1040x online form If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. 1040x online form You must pay interest on any tax not paid by the regular due date. 1040x online form Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. 1040x online form See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. 1040x online form If your return is filed late, the postmark or delivery service date does not determine the date of filing. 1040x online form In that case, your return is considered filed when it is received by the IRS. 1040x online form Extensions You may be able to get an extension of time to file your return and pay your tax. 1040x online form Automatic 2-month extension. 1040x online form   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. 1040x online form S. 1040x online form citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. 1040x online form To get this extension, you must attach a statement to your return explaining how you qualified. 1040x online form You will owe interest on any tax not paid by the regular due date of your return. 1040x online form Married taxpayers. 1040x online form   If you file a joint return, either you or your spouse can qualify for the automatic extension. 1040x online form If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. 1040x online form Additional extension. 1040x online form   You can apply for an additional extension of time to file your return by filing Form 4868. 1040x online form You must file Form 4868 by the due date for your income tax return. 1040x online form   Generally, you must file it by April 15. 1040x online form However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. 1040x online form Check the box on line 8 of Form 4868. 1040x online form Payment of tax. 1040x online form   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. 1040x online form The late-payment penalty applies if, through withholding, etc. 1040x online form , you paid less than 90% of your actual tax liability by the original due date of your income tax return. 1040x online form Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. 1040x online form Electronic filing. 1040x online form   You can file for the additional extension by phone, using your home computer, or through a tax professional. 1040x online form See Form 4868 for more information. 1040x online form Limit on additional extensions. 1040x online form   You generally cannot get a total extension of more than 6 months. 1040x online form However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. 1040x online form   For more information, see Publication 54. 1040x online form Foreign Bank Accounts You must file Form TD F 90-22. 1040x online form 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. 1040x online form This applies if the combined assets in the account(s) were more than $10,000. 1040x online form Do not include accounts in a U. 1040x online form S. 1040x online form military banking facility operated by a U. 1040x online form S. 1040x online form financial institution. 1040x online form File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. 1040x online form Do not attach it to Form 1040. 1040x online form If you are required to file Form TD F 90-22. 1040x online form 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). 1040x online form You also may be required to file Form 8938 with your U. 1040x online form S. 1040x online form income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. 1040x online form For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. 1040x online form For more information, see Form 8938 and its instructions. 1040x online form U. 1040x online form S. 1040x online form Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. 1040x online form If you are a U. 1040x online form S. 1040x online form citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. 1040x online form S. 1040x online form law. 1040x online form This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). 1040x online form If you are a nonresident alien, your income from sources outside the United States is not subject to U. 1040x online form S. 1040x online form tax. 1040x online form Foreign Earned Income Exclusion Employees of the U. 1040x online form S. 1040x online form Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. 1040x online form S. 1040x online form Government as an employee. 1040x online form But see Other Employment, later. 1040x online form Special Situations In the following two situations, your pay is from the U. 1040x online form S. 1040x online form Government and does not qualify for the foreign earned income exclusion. 1040x online form U. 1040x online form S. 1040x online form agency reimbursed by foreign country. 1040x online form   If you are a U. 1040x online form S. 1040x online form Government employee paid by a U. 1040x online form S. 1040x online form agency to perform services in a foreign country, your pay is from the U. 1040x online form S. 1040x online form Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. 1040x online form This is true even if the U. 1040x online form S. 1040x online form agency is reimbursed by the foreign government. 1040x online form Employees of post exchanges, etc. 1040x online form   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. 1040x online form S. 1040x online form Government, the earnings you receive are paid by the U. 1040x online form S. 1040x online form Government. 1040x online form This is true whether they are paid from appropriated or nonappropriated funds. 1040x online form These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. 1040x online form Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. 1040x online form Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. 1040x online form In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. 1040x online form S. 1040x online form citizens or green card holders. 1040x online form Consequently, if you are a U. 1040x online form S. 1040x online form citizen or green card holder, you will generally not be entitled to reduce your U. 1040x online form S. 1040x online form tax on your government pay. 1040x online form If you are neither a U. 1040x online form S. 1040x online form citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. 1040x online form Review the treaty text carefully. 1040x online form U. 1040x online form S. 1040x online form citizens must always file Form 1040. 1040x online form Non-U. 1040x online form S. 1040x online form citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. 1040x online form If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. 1040x online form Most income tax treaties contain an article providing relief from double taxation. 1040x online form Many treaties contain special foreign tax credit rules for U. 1040x online form S. 1040x online form citizens who are residents of a treaty country. 1040x online form For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. 1040x online form Allowances, Differentials, and Special Pay Most payments received by U. 1040x online form S. 1040x online form Government civilian employees for working abroad, including pay differentials, are taxable. 1040x online form However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. 1040x online form The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. 1040x online form Pay differentials. 1040x online form   Pay differentials you receive as financial incentives for employment abroad are taxable. 1040x online form Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. 1040x online form   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. 1040x online form The area does not have to be a qualified hazardous duty area as discussed in Publication 3. 1040x online form Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. 1040x online form Foreign areas allowances. 1040x online form   Certain foreign areas allowances are tax free. 1040x online form Your employer should not have included these allowances as wages on your Form W-2. 1040x online form   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. 1040x online form Title I, chapter 9, of the Foreign Service Act of 1980. 1040x online form Section 4 of the Central Intelligence Agency Act of 1949, as amended. 1040x online form Title II of the Overseas Differentials and Allowances Act. 1040x online form Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. 1040x online form These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. 1040x online form Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. 1040x online form Cost-of-living allowances. 1040x online form   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. 1040x online form The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. 1040x online form Cost-of-living allowances are not included on your Form W-2. 1040x online form Federal court employees. 1040x online form   If you are a federal court employee, the preceding paragraph also applies to you. 1040x online form The cost-of-living allowance must be granted by rules similar to regulations approved by the President. 1040x online form American Institute in Taiwan. 1040x online form   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. 1040x online form S. 1040x online form tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. 1040x online form S. 1040x online form Government. 1040x online form Federal reemployment payments after serving with an international organization. 1040x online form   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. 1040x online form These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. 1040x online form Allowances or reimbursements for travel and transportation expenses. 1040x online form   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. 1040x online form Lodging furnished to a principal representative of the United States. 1040x online form   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. 1040x online form However, amounts paid by the U. 1040x online form S. 1040x online form government for your usual costs of operating and maintaining your household are taxable. 1040x online form If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. 1040x online form Peace Corps. 1040x online form   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. 1040x online form Taxable allowances. 1040x online form   The following allowances must be included on your Form W-2 and reported on your return as wages. 1040x online form If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. 1040x online form The part of living allowances designated by the Director of the Peace Corps as basic compensation. 1040x online form This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. 1040x online form Leave allowances. 1040x online form Readjustment allowances or “termination payments. 1040x online form ” Taxable allowances are considered received by you when credited to your account. 1040x online form Example. 1040x online form Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. 1040x online form Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. 1040x online form Nontaxable allowances. 1040x online form   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. 1040x online form These allowances should not be included on your Form W-2. 1040x online form These allowances are tax free whether paid by the U. 1040x online form S. 1040x online form Government or the foreign country in which you are stationed. 1040x online form Other Income Other employment. 1040x online form   If, in addition to your U. 1040x online form S. 1040x online form government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. 1040x online form In addition, if your spouse is a U. 1040x online form S. 1040x online form citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. 1040x online form For more information, see Publication 54. 1040x online form The tax treaty rules relating to income from personal services generally apply to income from private employment. 1040x online form As discussed above, the saving clause applies to you if you are a U. 1040x online form S. 1040x online form citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). 1040x online form Sale of personal property. 1040x online form   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. 1040x online form S. 1040x online form dollars, the excess of the amount received in U. 1040x online form S. 1040x online form dollars over the cost or other basis of the property is a capital gain. 1040x online form Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. 1040x online form However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. 1040x online form Sale of your home. 1040x online form   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. 1040x online form Losses are not deductible. 1040x online form   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). 1040x online form Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. 1040x online form   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. 1040x online form   For detailed information on selling your home, see Publication 523. 1040x online form Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. 1040x online form Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. 1040x online form These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. 1040x online form Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. 1040x online form Your tax home is not limited to the Embassy, consulate, or duty station. 1040x online form It includes the entire city or general area in which your principal place of employment is located. 1040x online form Traveling away from home. 1040x online form   You are traveling away from home if you meet both of the following requirements. 1040x online form Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. 1040x online form You need to get sleep or rest to meet the demands of your work while away from home. 1040x online form This requirement is not satisfied by merely napping in your car. 1040x online form You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. 1040x online form Temporary assignment. 1040x online form   If your assignment or job away from your tax home is temporary, your tax home does not change. 1040x online form You are considered to be away from home for the whole period, and your travel expenses are deductible. 1040x online form Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. 1040x online form   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. 1040x online form An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. 1040x online form   You must determine whether your assignment is temporary or indefinite when you start work. 1040x online form If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. 1040x online form Employment that is initially temporary may become indefinite due to changed circumstances. 1040x online form A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. 1040x online form Exception for federal crime investigations or prosecutions. 1040x online form   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. 1040x online form This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. 1040x online form Limit on meals and entertainment. 1040x online form   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. 1040x online form However, the limit does not apply to expenses reimbursed under a U. 1040x online form S. 1040x online form Government expense allowance arrangement. 1040x online form Individuals subject to hours of service limits. 1040x online form   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. 1040x online form   Individuals subject to the Department of Transportation's “hours of service” limits include the following. 1040x online form Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. 1040x online form Interstate truck operators and bus drivers who are under Department of Transportation regulations. 1040x online form Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. 1040x online form Certain merchant mariners who are under Coast Guard regulations. 1040x online form Primary purpose of trip must be for business. 1040x online form   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. 1040x online form However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. 1040x online form   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. 1040x online form This applies even if you engage in business activities while there. 1040x online form However, you can deduct any expenses while at your destination that are directly related to your business. 1040x online form Expenses paid for others. 1040x online form   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. 1040x online form Home leave. 1040x online form   The Foreign Service Act requires U. 1040x online form S. 1040x online form citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. 1040x online form This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. 1040x online form   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. 1040x online form You must be able to verify these amounts in order to claim them. 1040x online form Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. 1040x online form More information. 1040x online form   See chapter 1 of Publication 463 for more information on travel expenses. 1040x online form Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. 1040x online form Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. 1040x online form They do not include expenses you have when traveling away from home overnight. 1040x online form Those expenses are deductible as travel expenses and are discussed earlier. 1040x online form Commuting. 1040x online form   You cannot deduct your transportation costs of going between your home and your regular business location. 1040x online form These costs are personal commuting expenses. 1040x online form   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. 1040x online form   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. 1040x online form More information. 1040x online form   For more information on transportation expenses, see chapter 4 of Publication 463. 1040x online form Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. 1040x online form Membership dues. 1040x online form   You can deduct membership dues you pay to professional societies that relate to your business or profession. 1040x online form Subscriptions. 1040x online form   You can deduct subscriptions to professional publications that relate to your business or profession. 1040x online form Educational expenses. 1040x online form   Generally, educational expenses are considered to be personal expenses and are not deductible. 1040x online form However, under some circumstances, educational expenses are deductible as business expenses. 1040x online form   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. 1040x online form   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. 1040x online form These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. 1040x online form   See Publication 970, Tax Benefits for Education, for more information on educational expenses. 1040x online form    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. 1040x online form However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. 1040x online form These benefits are explained in Publication 970. 1040x online form Foreign service representation expenses. 1040x online form   If you are an employee of the U. 1040x online form S. 1040x online form Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. 1040x online form If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. 1040x online form You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. 1040x online form The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. 1040x online form    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. 1040x online form These rules are explained in Publication 463. 1040x online form Representation expenses. 1040x online form   These are expenses that further the interest of the United States abroad. 1040x online form They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. 1040x online form They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. 1040x online form   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. 1040x online form These regulations are available on the Internet at www. 1040x online form state. 1040x online form gov/m/a/als. 1040x online form Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. 1040x online form ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. 1040x online form Impairment-related work expenses. 1040x online form   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. 1040x online form Attendant care includes a reader for a blind person and a helper for a person with a physical disability. 1040x online form These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). 1040x online form They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. 1040x online form Loss on conversion of U. 1040x online form S. 1040x online form dollars into foreign currency. 1040x online form   The conversion of U. 1040x online form S. 1040x online form dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. 1040x online form Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. 1040x online form For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). 1040x online form The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. 1040x online form You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. 1040x online form For each trip away from home, the dates you left and returned and the number of days spent on business. 1040x online form The destination or area of your travel, described by the name of the city, town, or similar designation. 1040x online form The business reason for your travel or the business benefit gained or expected to be gained from your travel. 1040x online form How to record your expenses. 1040x online form   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. 1040x online form They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. 1040x online form You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. 1040x online form   Each expense should be recorded separately in your records. 1040x online form However, some items can be totaled in reasonable categories. 1040x online form You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. 1040x online form You may record tips separately or with the cost of the service. 1040x online form    Documentary evidence generally is required to support all lodging expenses while traveling away from home. 1040x online form It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. 1040x online form Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. 1040x online form It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. 1040x online form    A canceled check by itself does not prove a business cost. 1040x online form You must have other evidence to show that the check was used for a business purpose. 1040x online form Your records must be timely. 1040x online form   Record the elements for the expense in your account book or other record at or near the time of the expense. 1040x online form A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. 1040x online form Confidential information. 1040x online form   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. 1040x online form However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. 1040x online form How To Report Business Expenses As a U. 1040x online form S. 1040x online form Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. 1040x online form If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. 1040x online form However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. 1040x online form If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. 1040x online form Form 2106 or Form 2106-EZ. 1040x online form   You must complete Form 2106 or 2106-EZ to deduct your expenses. 1040x online form Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. 1040x online form Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). 1040x online form Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. 1040x online form Form 2106-EZ. 1040x online form   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. 1040x online form You can use Form 2106-EZ if you meet both of the following conditions. 1040x online form You are not reimbursed by your employer for any expenses. 1040x online form (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. 1040x online form ) If you claim car expenses, you use the standard mileage rate. 1040x online form Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. 1040x online form Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. 1040x online form However, you cannot deduct any expenses for which you received a tax-free allowance as a U. 1040x online form S. 1040x online form Government employee. 1040x online form To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. 1040x online form Closely related to the start of work. 1040x online form   The move must be closely related, both in time and in place, to the start of work at the new location. 1040x online form In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. 1040x online form   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. 1040x online form A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. 1040x online form Distance test. 1040x online form   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. 1040x online form If you did not have an old job location, your new job location must be at least 50 miles from your former home. 1040x online form Time test. 1040x online form   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. 1040x online form Deductible moving expenses. 1040x online form   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). 1040x online form    The cost of your meals is not a deductible moving expense. 1040x online form   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. 1040x online form For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. 1040x online form Expenses must be reasonable. 1040x online form   You can deduct only those expenses that are reasonable for the circumstances of your move. 1040x online form For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. 1040x online form Members of your household. 1040x online form   A member of your household includes anyone who has both your former home and new home as his or her home. 1040x online form It does not include a tenant or employee unless you can claim that person as a dependent. 1040x online form Retirees. 1040x online form   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. 1040x online form You do not have to meet the time test described earlier. 1040x online form Survivors. 1040x online form   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. 1040x online form The move must begin within 6 months after the decedent's death. 1040x online form It must be from the decedent's former home outside the United States, and that home must also have been your home. 1040x online form You do not have to meet the time test described earlier. 1040x online form How to report moving expenses. 1040x online form   Use Form 3903 to report your moving expenses and figure your allowable deduction. 1040x online form Claim the deduction as an adjustment to income on Form 1040. 1040x online form (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. 1040x online form ) Reimbursements. 1040x online form   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. 1040x online form You also must include in gross income reimbursements paid to you under a nonaccountable plan. 1040x online form However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. 1040x online form Additional information. 1040x online form   For additional information about moving expenses, see Publication 521. 1040x online form Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. 1040x online form Contributions. 1040x online form   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. 1040x online form You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. 1040x online form For more information, see Publication 526, Charitable Contributions. 1040x online form Real estate tax and home mortgage interest. 1040x online form   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. 1040x online form You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. 1040x online form Example. 1040x online form Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. 1040x online form During the year, Adam used the allowance, with other funds, to provide a home for himself. 1040x online form His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). 1040x online form Adam did not have any other expenses related to providing a home for himself. 1040x online form Adam must reduce his deductions for home mortgage interest and real estate taxes. 1040x online form He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). 1040x online form The result is 3/4. 1040x online form Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). 1040x online form He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. 1040x online form Exception to the reduction. 1040x online form   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. 1040x online form Required statement. 1040x online form   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. 1040x online form The statement must contain all of the following information. 1040x online form The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. 1040x online form The amount of otherwise deductible expenses attributable to each type of tax-free income. 1040x online form The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. 1040x online form An explanation of how you determined the amounts not directly attributable to each type of tax-free income. 1040x online form   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. 1040x online form Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. 1040x online form S. 1040x online form income tax liability or deduct them as an itemized deduction when figuring your taxable income. 1040x online form Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. 1040x online form Foreign tax credit. 1040x online form   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. 1040x online form If you choose to figure a credit against your U. 1040x online form S. 1040x online form tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. 1040x online form S. 1040x online form income tax return. 1040x online form    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. 1040x online form If all your foreign income is exempt from U. 1040x online form S. 1040x online form tax, you will not be able to claim a foreign tax credit. 1040x online form   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. 1040x online form Exemption from limit. 1040x online form   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. 1040x online form Your only foreign income is passive income, such as interest, dividends, and royalties. 1040x online form The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). 1040x online form The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. 1040x online form If you make the election, you can claim a foreign tax credit without filing Form 1116. 1040x online form However, you cannot carry back or carry over any unused foreign tax to or from this year. 1040x online form See the instructions for the appropriate line in the Tax and Credits section of Form 1040. 1040x online form Foreign tax deduction. 1040x online form   If you choose to deduct all foreign income taxes on your U. 1040x online form S. 1040x online form income tax return, itemize the deduction on Schedule A (Form 1040). 1040x online form You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. 1040x online form Example. 1040x online form Dennis and Christina are married and live and work in Country X. 1040x online form Dennis works for the U. 1040x online form S. 1040x online form Government and Christina is employed by a private company. 1040x online form They pay income tax to Country X on Christina's income only. 1040x online form Dennis and Christina file a joint tax return and exclude all of Christina's income. 1040x online form They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. 1040x online form Deduction for other foreign taxes. 1040x online form   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. 1040x online form You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. 1040x online form   You can deduct real property taxes you pay that are imposed on you by a foreign country. 1040x online form You take this deduction on Schedule A (Form 1040). 1040x online form You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. 1040x online form More information. 1040x online form   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. 1040x online form Local (Foreign) Tax Return As a U. 1040x online form S. 1040x online form Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. 1040x online form Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. 1040x online form Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. 1040x online form Review the treaty text carefully to determine whether your U. 1040x online form S. 1040x online form Government remuneration is taxable in the host country. 1040x online form You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). 1040x online form If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. 1040x online form If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. 1040x online form Most income tax treaties contain an article providing relief from double taxation. 1040x online form Many treaties contain special foreign tax credit rules for U. 1040x online form S. 1040x online form citizens who are residents of a treaty country. 1040x online form For more information about the foreign tax credit, see Foreign Taxes, earlier. 1040x online form Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. 1040x online form For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. 1040x online form Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. 1040x online form Check with the appropriate U. 1040x online form S. 1040x online form Embassy for more information. 1040x online form Double Withholding If your U. 1040x online form S. 1040x online form government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. 1040x online form S. 1040x online form tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. 1040x online form S. 1040x online form income tax return on this income. 1040x online form Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. 1040x online form How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 1040x online form By selecting the method that is best for you, you will have quick and easy access to tax help. 1040x online form Free help with your tax return. 1040x online form   Free help in preparing your return is available nationwide from IRS-certified volunteers. 1040x online form The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. 1040x online form The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 1040x online form 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. 1040x online form Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. 1040x online form To find the nearest VITA or TCE site, visit IRS. 1040x online form gov or call 1-800-906-9887 or 1-800-829-1040. 1040x online form   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040x online form To find the nearest AARP Tax-Aide site, visit AARP's website at www. 1040x online form aarp. 1040x online form org/money/taxaide or call 1-888-227-7669. 1040x online form   For more information on these programs, go to IRS. 1040x online form gov and enter “VITA” in the search box. 1040x online form Internet. 1040x online form You can access the IRS website at IRS. 1040x online form gov 24 hours a day, 7 days a week to: E-file your return. 1040x online form Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 1040x online form Check the status of your 2012 refund. 1040x online form Go to IRS. 1040x online form gov and click on Where’s My Refund. 1040x online form Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 1040x online form If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 1040x online form Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 1040x online form Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. 1040x online form Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040x online form So in a change from previous filing seasons, you won't get an estimated refund date right away. 1040x online form Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 1040x online form You can obtain a free transcript online at IRS. 1040x online form gov by clicking on Order a Return or Account Transcript under “Tools. 1040x online form ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. 1040x online form You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. 1040x online form Download forms, including talking tax forms, instructions, and publications. 1040x online form Order IRS products. 1040x online form Research your tax questions. 1040x online form Search publications by topic or keyword. 1040x online form Use the Internal Revenue Code, regulations, or other official guidance. 1040x online form View Internal Revenue Bulletins (IRBs) published in the last few years. 1040x online form Figure your withholding allowances using the IRS Withholding Calculator at www. 1040x online form irs. 1040x online form gov/individuals. 1040x online form Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. 1040x online form gov by typing Alternative Minimum Tax Assistant in the search box. 1040x online form Sign up to receive local and national tax news by email. 1040x online form Get information on starting and operating a small business. 1040x online form Phone. 1040x online form Many services are available by phone. 1040x online form   Ordering forms, instructions, and publications. 1040x online form Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). 1040x online form You should receive your order within 10 days. 1040x online form Asking tax questions. 1040x online form Call the IRS with your tax questions at 1-800-829-1040. 1040x online form Solving problems. 1040x online form You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). 1040x online form An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 1040x online form Call your local Taxpayer Assistance Center for an appointment. 1040x online form To find the number, go to www. 1040x online form irs. 1040x online form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040x online form TTY/TDD equipment. 1040x online form If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 1040x online form The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. 1040x online form These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 1040x online form gsa. 1040x online form gov/fedrelay. 1040x online form TeleTax topics. 1040x online form Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 1040x online form Checking the status of your 2012 refund. 1040x online form To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). 1040x online form Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 1040x online form If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 1040x online form Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 1040x online form Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040x online form Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 1040x online form Outside the U. 1040x online form S. 1040x online form If you are outside the United States, taxpayer assistance is available at the following U. 1040x online form S Embassies or consulate. 1040x online form Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. 1040x online form If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). 1040x online form If you are in a U. 1040x online form S. 1040x online form territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. 1040x online form S. 1040x online form Virgin Islands) and have a tax question, you can call 1-800-829-1040. 1040x online form Evaluating the quality of our telephone services. 1040x online form To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 1040x online form One method is for a second IRS representative to listen in on or record random telephone calls. 1040x online form Another is to ask some callers to complete a short survey at the end of the call. 1040x online form Walk-in. 1040x online form Some products and services are available on a walk-in basis. 1040x online form   Products. 1040x online form You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040x online form Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 1040x online form Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 1040x online form Services. 1040x online form You can walk in to your local TAC most business days for personal, face-to-face tax help. 1040x online form An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 1040x online form If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. 1040x online form No appointment is necessary—just walk in. 1040x online form Before visiting, check www. 1040x online form irs. 1040x online form gov/localcontacts for hours of operation and services provided. 1040x online form If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. 1040x online form You can leave a message and a representative will call you back within 2 business days. 1040x online form All other issues will be handled without an appointment. 1040x online form To call your local TAC, go to  www. 1040x online form irs. 1040x online form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040x online form Outside the U. 1040x online form S. 1040x online form If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. 1040x online form S. 1040x online form Embassies and consulates. 1040x online form Mail. 1040x online form You can send your order for forms, instructions, and publications to the address below. 1040x online form You should receive a response within 10 days after your request is received. 1040x online form  Internal Revenue Service 1201 N. 1040x online form Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. 1040x online form S. 1040x online form If you are outside the United States, you can get tax assistance by writing to the address below. 1040x online form  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. 1040x online form   The Taxpayer Advocate Service (TAS) is your voice at the IRS. 1040x online form Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. 1040x online form TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. 1040x online form Remember, the worst thing you can do is nothing at all. 1040x online form   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. 1040x online form You face (or your business is facing) an immediate threat of adverse action. 1040x online form You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. 1040x online form   If you qualify for help, they will do everything they can to get your problem resolved. 1040x online form You will be assigned to one advocate who will be with you at every turn. 1040x online form TAS has offices in every state, the District of Columbia, and Puerto Rico. 1040x online form Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. 1040x online form And its services are always free. 1040x online form   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. 1040x online form The TAS tax toolkit at www. 1040x online form TaxpayerAdvocate. 1040x online form irs. 1040x online form gov can help you understand these rights. 1040x online form   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. 1040x online form irs. 1040x online form gov/advocate. 1040x online form You can also call the toll-free number at 1-877-777-4778. 1040x online form Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. 1040x online form These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 1040x online form gsa. 1040x online form gov/fedrelay. 1040x online form   TAS also handles large-scale or systemic problems that affect many taxpayers. 1040x online form If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. 1040x online form irs. 1040x online form gov/advocate. 1040x online form    Outside the U. 1040x online form S. 1040x online form If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. 1040x online form You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. 1040x online form R. 1040x online form 00968-8000 Low Income Taxpayer Clinics (LITCs). 1040x online form   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. 1040x online form Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. 1040x online form These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. 1040x online form Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. 1040x online form For more information and to find a clinic near you, see the LITC page on www. 1040x online form irs. 1040x online form gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. 1040x online form This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. 1040x online form Free tax services. 1040x online form   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. 1040x online form Learn about free tax information from the IRS, including publications, services, and education and assistance programs. 1040x online form The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. 1040x online form The majority of the information and services listed in this publication are available to you free of charge. 1040x online form If there is a fee associated with a resource or service, it is listed in the publication. 1040x online form   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 1040x online form DVD for tax products. 1040x online form You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. 1040x online form Prior-year forms, instructions, and publications. 1040x online form Tax Map: an electronic research tool and finding aid. 1040x online form Tax law frequently asked questions. 1040x online form Tax Topics from the IRS telephone response system. 1040x online form Internal Revenue Code—Title 26 of the U. 1040x online form S. 1040x online form Code. 1040x online form Links to other Internet-based tax research materials. 1040x online form Fill-in, print, and save features for most tax forms. 1040x online form Internal Revenue Bulletins. 1040x online form Toll-free and email technical support. 1040x online form Two releases during the year. 1040x online form  – The first release will ship the beginning of January 2013. 1040x online form  – The final release will ship the beginning of March 2013. 1040x online form Purchase the DVD from National Technical Information Service (NTIS) at www. 1040x online form irs. 1040x online form gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). 1040x online form Prev  Up  Next   Home   More Online Publications
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Taxpayer Identification Numbers (TIN)

A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or by the IRS. A Social Security number (SSN) is issued by the SSA whereas all other TINs are issued by the IRS.
 

Taxpayer Identification Numbers

  • Social Security Number "SSN"
  • Employer Identification Number "EIN"
  • Individual Taxpayer Identification Number "ITIN"
  • Taxpayer Identification Number for Pending U.S. Adoptions "ATIN"
  • Preparer Taxpayer Identification Number "PTIN"
Note: The temporary IRS Numbers previously assigned are no longer valid.

Do I Need One?

A TIN must be furnished on returns, statements, and other tax related documents. For example a number must be furnished:

  • When filing your tax returns.
  • When claiming treaty benefits.

A TIN must be on a withholding certificate if the beneficial owner is claiming any of the following:

  • Tax treaty benefits (other than for income from marketable securities)
  • Exemption for effectively connected income
  • Exemption for certain annuities

When Claiming Exemptions for Dependent or Spouse:

You generally must list on your individual income tax return the social security number (SSN) of any person for whom you claim an exemption. If your dependent or spouse does not have and is not eligible to get an SSN, you must list the ITIN instead of an SSN. You do not need an SSN or ITIN for a child who was born and died in the same tax year. Instead of an SSN or ITIN, attach a copy of the child's birth certificate and write Died on the appropriate exemption line of your tax return.

How Do I Get A TIN?

SSN

You will need to complete Form SS-5, Application for a Social Security Card (PDF). You also must submit evidence of your identity, age, and U.S. citizenship or lawful alien status. For more information please see the Social Security web site.

Form SS-5 is also available by calling 1-800-772-1213 or visiting your local Social Security office. These services are free.

EIN

An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. It is also used by estates and trusts which have income which is required to be reported on Form 1041, U.S. Income Tax Return for Estates and Trusts (PDF). Refer to Employer ID Numbers for more information.

The following form is available only to employers located in Puerto Rico, Solicitud de Número de Identificación Patronal (EIN) SS-4PR (PDF).

ITIN

An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number "9", formatted like an SSN (NNN-NN-NNNN).

To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number (PDF) . The Form W-7 requires documentation substantiating foreign/alien status and true identity for each individual. You may either mail the documentation, along with the Form W-7, to the address shown in the Form W-7 Instructions, present it at IRS walk-in offices, or process your application through an Acceptance Agent authorized by the IRS. Form W-7(SP), Solicitud de Número de Identificación Personal del Contribuyente del Servicio de Impuestos Internos (PDF) is available for use by Spanish speakers.

Acceptance Agents are entities (colleges, financial institutions, accounting firms, etc.) who are authorized by the IRS to assist applicants in obtaining ITINs. They review the applicant's documentation and forward the completed Form W-7 to IRS for processing.

NOTE: You cannot claim the earned income credit using an ITIN.

Foreign persons who are individuals should apply for a social security number (SSN, if permitted) on Form SS-5 with the Social Security Administration, or should apply for an Individual Taxpayer Identification Number (ITIN) on Form W-7. Effective immediately, each ITIN applicant must now:

  • Apply using the revised Form W-7, Application for IRS Individual Taxpayer Identification Number; and
  • Attach a federal income tax return to the Form W-7.

Applicants who meet one of the exceptions to the requirement to file a tax return (see the Instructions for Form W-7) must provide documentation to support the exception.

New W-7/ITIN rules were issued on December 17, 2003. For a summary of those rules, please see the new Form W-7 and its instructions.

For more detailed information on ITINs, refer to:

ATIN

An Adoption Taxpayer Identification Number (ATIN) is a temporary nine-digit number issued by the IRS to individuals who are in the process of legally adopting a U.S. citizen or resident child but who cannot get an SSN for that child in time to file their tax return.

Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions (PDF) is used to apply for an ATIN. (NOTE: Do not use Form W-7A if the child is not a U.S. citizen or resident.)

PTIN

Beginning January 1, 2011, if you are a paid tax preparer you must use a valid Preparer Tax Identification Number (PTIN) on returns you prepare. Use of the PTIN no longer is optional. If you do not have a PTIN, you must get one by using the new IRS sign-up system. Even if you have a PTIN but you received it prior to September 28, 2010, you must apply for a new or renewed PTIN by using the new system. If all your authentication information matches, you may be issued the same number. You must have a PTIN if you, for compensation, prepare all or substantially all of any federal tax return or claim for refund.

If you do not want to apply for a PTIN online, use Form W-12, IRS Paid Preparer Tax Identification Number Application (PDF). The paper application will take 4-6 weeks to process.

If you are a foreign preparer who is unable to get a U.S. Social Security Number, please see the instructions on New Requirements for Tax Return Preparers: Frequently Asked Questions.

Foreign Persons and IRS Employer Identification Numbers

Foreign entities that are not individuals (i.e., foreign corporations, etc.) and that are required to have a federal Employer Identification Number (EIN) in order to claim an exemption from withholding because of a tax treaty (claimed on Form W-8BEN), need to submit Form SS-4 Application for Employer Identification Number to the Internal Revenue Service in order to apply for such an EIN. Those foreign entities filing Form SS-4 for the purpose of obtaining an EIN in order to claim a tax treaty exemption and which otherwise have no requirements to file a U.S. income tax return, employment tax return, or excise tax return, should comply with the following special instructions when filling out Form SS-4. When completing line 7b of Form SS-4, the applicant should write "N/A" in the block asking for an SSN or ITIN, unless the applicant already has an SSN or ITIN. When answering question 10 on Form SS-4, the applicant should check the "other" block and write or type in immediately after it one of the following phrases as most appropriate:

"For W-8BEN Purposes Only"
"For Tax Treaty Purposes Only"
"Required under Reg. 1.1441-1(e)(4)(viii)"
"897(i) Election"

If questions 11 through 17 on Form SS-4 do not apply to the applicant because he has no U.S. tax return filing requirement, such questions should be annotated "N/A". A foreign entity that completes Form SS-4 in the manner described above should be entered into IRS records as not having a filing requirement for any U.S. tax returns. However, if the foreign entity receives a letter from the IRS soliciting the filing of a U.S. tax return, the foreign entity should respond to the letter immediately by stating that it has no requirement to file any U.S. tax returns. Failure to respond to the IRS letter may result in a procedural assessment of tax by the IRS against the foreign entity. If the foreign entity later becomes liable to file a U.S. tax return, the foreign entity should not apply for a new EIN, but should instead use the EIN it was first issued on all U.S. tax returns filed thereafter.

To expedite the issuance of an EIN for a foreign entity, please call (267) 941-1099. This is not a toll-free call.

References/Related Topics

Page Last Reviewed or Updated: 17-Jan-2014

The 1040x Online Form

1040x online form 12. 1040x online form   Other Income Table of Contents Introduction Useful Items - You may want to see: Bartering Canceled DebtsInterest included in canceled debt. 1040x online form Exceptions Host or Hostess Life Insurance ProceedsSurviving spouse. 1040x online form Endowment Contract Proceeds Accelerated Death Benefits Public Safety Officer Killed in the Line of Duty Partnership Income S Corporation Income RecoveriesItemized Deduction Recoveries Rents from Personal Property RepaymentsMethod 1. 1040x online form Method 2. 1040x online form RoyaltiesDepletion. 1040x online form Coal and iron ore. 1040x online form Sale of property interest. 1040x online form Part of future production sold. 1040x online form Unemployment BenefitsTypes of unemployment compensation. 1040x online form Governmental program. 1040x online form Repayment of unemployment compensation. 1040x online form Tax withholding. 1040x online form Repayment of benefits. 1040x online form Welfare and Other Public Assistance Benefits Other IncomeEmotional distress. 1040x online form Deduction for costs involved in unlawful discrimination suits. 1040x online form Energy conservation measure. 1040x online form Dwelling unit. 1040x online form Current income required to be distributed. 1040x online form Current income not required to be distributed. 1040x online form How to report. 1040x online form Losses. 1040x online form Grantor trust. 1040x online form Nonemployee compensation. 1040x online form Corporate director. 1040x online form Personal representatives. 1040x online form Manager of trade or business for bankruptcy estate. 1040x online form Notary public. 1040x online form Election precinct official. 1040x online form Difficulty-of-care payments. 1040x online form Maintaining space in home. 1040x online form Reporting taxable payments. 1040x online form Lotteries and raffles. 1040x online form Form W-2G. 1040x online form Reporting winnings and recordkeeping. 1040x online form Inherited pension or IRA. 1040x online form Employee awards or bonuses. 1040x online form Pulitzer, Nobel, and similar prizes. 1040x online form Payment for services. 1040x online form VA payments. 1040x online form Prizes. 1040x online form Strike and lockout benefits. 1040x online form Introduction You must include on your return all items of income you receive in the form of money, property, and services unless the tax law states that you do not include them. 1040x online form Some items, however, are only partly excluded from income. 1040x online form This chapter discusses many kinds of income and explains whether they are taxable or nontaxable. 1040x online form Income that is taxable must be reported on your tax return and is subject to tax. 1040x online form Income that is nontaxable may have to be shown on your tax return but is not taxable. 1040x online form This chapter begins with discussions of the following income items. 1040x online form Bartering. 1040x online form Canceled debts. 1040x online form Sales parties at which you are the host or hostess. 1040x online form Life insurance proceeds. 1040x online form Partnership income. 1040x online form S Corporation income. 1040x online form Recoveries (including state income tax refunds). 1040x online form Rents from personal property. 1040x online form Repayments. 1040x online form Royalties. 1040x online form Unemployment benefits. 1040x online form Welfare and other public assistance benefits. 1040x online form These discussions are followed by brief discussions of other income items. 1040x online form Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 544 Sales and Other Dispositions of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Bartering Bartering is an exchange of property or services. 1040x online form You must include in your income, at the time received, the fair market value of property or services you receive in bartering. 1040x online form If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise. 1040x online form Generally, you report this income on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. 1040x online form However, if the barter involves an exchange of something other than services, such as in Example 3 below, you may have to use another form or schedule instead. 1040x online form Example 1. 1040x online form You are a self-employed attorney who performs legal services for a client, a small corporation. 1040x online form The corporation gives you shares of its stock as payment for your services. 1040x online form You must include the fair market value of the shares in your income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) in the year you receive them. 1040x online form Example 2. 1040x online form You are self-employed and a member of a barter club. 1040x online form The club uses “credit units” as a means of exchange. 1040x online form It adds credit units to your account for goods or services you provide to members, which you can use to purchase goods or services offered by other members of the barter club. 1040x online form The club subtracts credit units from your account when you receive goods or services from other members. 1040x online form You must include in your income the value of the credit units that are added to your account, even though you may not actually receive goods or services from other members until a later tax year. 1040x online form Example 3. 1040x online form You own a small apartment building. 1040x online form In return for 6 months rent-free use of an apartment, an artist gives you a work of art she created. 1040x online form You must report as rental income on Schedule E (Form 1040), Supplemental Income and Loss, the fair market value of the artwork, and the artist must report as income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) the fair rental value of the apartment. 1040x online form Form 1099-B from barter exchange. 1040x online form   If you exchanged property or services through a barter exchange, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a similar statement from the barter exchange should be sent to you by February 18, 2014. 1040x online form It should show the value of cash, property, services, credits, or scrip you received from exchanges during 2013. 1040x online form The IRS also will receive a copy of Form 1099-B. 1040x online form Canceled Debts In most cases, if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. 1040x online form You have no income from the canceled debt if it is intended as a gift to you. 1040x online form A debt includes any indebtedness for which you are liable or which attaches to property you hold. 1040x online form If the debt is a nonbusiness debt, report the canceled amount on Form 1040, line 21. 1040x online form If it is a business debt, report the amount on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) (or on Schedule F (Form 1040), Profit or Loss From Farming, if the debt is farm debt and you are a farmer). 1040x online form Form 1099-C. 1040x online form   If a Federal Government agency, financial institution, or credit union cancels or forgives a debt you owe of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. 1040x online form The amount of the canceled debt is shown in box 2. 1040x online form Interest included in canceled debt. 1040x online form   If any interest is forgiven and included in the amount of canceled debt in box 2, the amount of interest also will be shown in box 3. 1040x online form Whether or not you must include the interest portion of the canceled debt in your income depends on whether the interest would be deductible when you paid it. 1040x online form See Deductible debt under Exceptions, later. 1040x online form   If the interest would not be deductible (such as interest on a personal loan), include in your income the amount from Form 1099-C, box 2. 1040x online form If the interest would be deductible (such as on a business loan), include in your income the net amount of the canceled debt (the amount shown in box 2 less the interest amount shown in box 3). 1040x online form Discounted mortgage loan. 1040x online form   If your financial institution offers a discount for the early payment of your mortgage loan, the amount of the discount is canceled debt. 1040x online form You must include the canceled amount in your income. 1040x online form Mortgage relief upon sale or other disposition. 1040x online form   If you are personally liable for a mortgage (recourse debt), and you are relieved of the mortgage when you dispose of the property, you may realize gain or loss up to the fair market value of the property. 1040x online form To the extent the mortgage discharge exceeds the fair market value of the property, it is income from discharge of indebtedness unless it qualifies for exclusion under Excluded debt , later. 1040x online form Report any income from discharge of indebtedness on nonbusiness debt that does not qualify for exclusion as other income on Form 1040, line 21. 1040x online form    You may be able to exclude part of the mortgage relief on your principal residence. 1040x online form See Excluded debt, later. 1040x online form   If you are not personally liable for a mortgage (nonrecourse debt), and you are relieved of the mortgage when you dispose of the property (such as through foreclosure), that relief is included in the amount you realize. 1040x online form You may have a taxable gain if the amount you realize exceeds your adjusted basis in the property. 1040x online form Report any gain on nonbusiness property as a capital gain. 1040x online form   See Publication 4681 for more information. 1040x online form Stockholder debt. 1040x online form   If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution that is generally dividend income to you. 1040x online form For more information, see Publication 542, Corporations. 1040x online form   If you are a stockholder in a corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. 1040x online form This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. 1040x online form Repayment of canceled debt. 1040x online form   If you included a canceled amount in your income and later pay the debt, you may be able to file a claim for refund for the year the amount was included in income. 1040x online form You can file a claim on Form 1040X if the statute of limitations for filing a claim is still open. 1040x online form The statute of limitations generally does not end until 3 years after the due date of your original return. 1040x online form Exceptions There are several exceptions to the inclusion of canceled debt in income. 1040x online form These are explained next. 1040x online form Student loans. 1040x online form   Certain student loans contain a provision that all or part of the debt incurred to attend the qualified educational institution will be canceled if you work for a certain period of time in certain professions for any of a broad class of employers. 1040x online form   You do not have income if your student loan is canceled after you agreed to this provision and then performed the services required. 1040x online form To qualify, the loan must have been made by: The Federal Government, a state or local government, or an instrumentality, agency, or subdivision thereof, A tax-exempt public benefit corporation that has assumed control of a state, county, or municipal hospital, and whose employees are considered public employees under state law, or An educational institution: Under an agreement with an entity described in (1) or (2) that provided the funds to the institution to make the loan, or As part of a program of the institution designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or a tax-exempt organization described in section 501(c)(3). 1040x online form   A loan to refinance a qualified student loan also will qualify if it was made by an educational institution or a qualified tax-exempt organization under its program designed as described in (3)(b) above. 1040x online form Education loan repayment assistance. 1040x online form   Education loan repayments made to you by the National Health Service Corps Loan Repayment Program (NHSC Loan Repayment Program), a state education loan repayment program eligible for funds under the Public Health Service Act, or any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas are not taxable. 1040x online form    The provision relating to the “other state loan repayment or loan forgiveness program” was added to this exclusion for amounts received in tax years beginning after December 31, 2008. 1040x online form If you included these amounts in income in 2010, 2011, or 2012, you should file an amended tax return to exclude this income. 1040x online form See Form 1040X and its instructions for details on filing. 1040x online form Deductible debt. 1040x online form   You do not have income from the cancellation of a debt if your payment of the debt would be deductible. 1040x online form This exception applies only if you use the cash method of accounting. 1040x online form For more information, see chapter 5 of Publication 334, Tax Guide for Small Business. 1040x online form Price reduced after purchase. 1040x online form   In most cases, if the seller reduces the amount of debt you owe for property you purchased, you do not have income from the reduction. 1040x online form The reduction of the debt is treated as a purchase price adjustment and reduces your basis in the property. 1040x online form Excluded debt. 1040x online form   Do not include a canceled debt in your gross income in the following situations. 1040x online form The debt is canceled in a bankruptcy case under title 11 of the U. 1040x online form S. 1040x online form Code. 1040x online form See Publication 908, Bankruptcy Tax Guide. 1040x online form The debt is canceled when you are insolvent. 1040x online form However, you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent. 1040x online form See Publication 908. 1040x online form The debt is qualified farm debt and is canceled by a qualified person. 1040x online form See chapter 3 of Publication 225, Farmer's Tax Guide. 1040x online form The debt is qualified real property business debt. 1040x online form See chapter 5 of Publication 334. 1040x online form The cancellation is intended as a gift. 1040x online form The debt is qualified principal residence indebtedness. 1040x online form See Publication 525 for additional information. 1040x online form Host or Hostess If you host a party or event at which sales are made, any gift or gratuity you receive for giving the event is a payment for helping a direct seller make sales. 1040x online form You must report this item as income at its fair market value. 1040x online form Your out-of-pocket party expenses are subject to the 50% limit for meal and entertainment expenses. 1040x online form These expenses are deductible as miscellaneous itemized deductions subject to the 2%-of-AGI limit on Schedule A (Form 1040), but only up to the amount of income you receive for giving the party. 1040x online form For more information about the 50% limit for meal and entertainment expenses, see chapter 26. 1040x online form Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. 1040x online form This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. 1040x online form However, interest income received as a result of life insurance proceeds may be taxable. 1040x online form Proceeds not received in installments. 1040x online form   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. 1040x online form If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. 1040x online form Proceeds received in installments. 1040x online form   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. 1040x online form   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. 1040x online form Include anything over this excluded part in your income as interest. 1040x online form Surviving spouse. 1040x online form   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude up to $1,000 a year of the interest included in the installments. 1040x online form If you remarry, you can continue to take the exclusion. 1040x online form Surrender of policy for cash. 1040x online form   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. 1040x online form In most cases, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. 1040x online form    You should receive a Form 1099-R showing the total proceeds and the taxable part. 1040x online form Report these amounts on lines 16a and 16b of Form 1040 or lines 12a and 12b of Form 1040A. 1040x online form More information. 1040x online form   For more information, see Life Insurance Proceeds in Publication 525. 1040x online form Endowment Contract Proceeds An endowment contract is a policy under which you are paid a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. 1040x online form Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. 1040x online form To determine your cost, subtract any amount that you previously received under the contract and excluded from your income from the total premiums (or other consideration) paid for the contract. 1040x online form Include the part of the lump sum payment that is more than your cost in your income. 1040x online form Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are excluded from income if the insured is terminally or chronically ill. 1040x online form Viatical settlement. 1040x online form   This is the sale or assignment of any part of the death benefit under a life insurance contract to a viatical settlement provider. 1040x online form A viatical settlement provider is a person who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill and who meets the requirements of section 101(g)(2)(B) of the Internal Revenue Code. 1040x online form Exclusion for terminal illness. 1040x online form    Accelerated death benefits are fully excludable if the insured is a terminally ill individual. 1040x online form This is a person who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. 1040x online form Exclusion for chronic illness. 1040x online form    If the insured is a chronically ill individual who is not terminally ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. 1040x online form Accelerated death benefits paid on a per diem or other periodic basis are excludable up to a limit. 1040x online form This limit applies to the total of the accelerated death benefits and any periodic payments received from long-term care insurance contracts. 1040x online form For information on the limit and the definitions of chronically ill individual, qualified long-term care services, and long-term care insurance contracts, see Long-Term Care Insurance Contracts under Sickness and Injury Benefits in Publication 525. 1040x online form Exception. 1040x online form   The exclusion does not apply to any amount paid to a person (other than the insured) who has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the person, or Has a financial interest in the person's business. 1040x online form Form 8853. 1040x online form   To claim an exclusion for accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. 1040x online form You do not have to file Form 8853 to exclude accelerated death benefits paid on the basis of actual expenses incurred. 1040x online form Public Safety Officer Killed in the Line of Duty If you are a survivor of a public safety officer who was killed in the line of duty, you may be able to exclude from income certain amounts you receive. 1040x online form For this purpose, the term public safety officer includes law enforcement officers, firefighters, chaplains, and rescue squad and ambulance crew members. 1040x online form For more information, see Publication 559, Survivors, Executors, and Administrators. 1040x online form Partnership Income A partnership generally is not a taxable entity. 1040x online form The income, gains, losses, deductions, and credits of a partnership are passed through to the partners based on each partner's distributive share of these items. 1040x online form Schedule K-1 (Form 1065). 1040x online form    Although a partnership generally pays no tax, it must file an information return on Form 1065, U. 1040x online form S. 1040x online form Return of Partnership Income, and send Schedule K-1 (Form 1065) to each partner. 1040x online form In addition, the partnership will send each partner a copy of the Partner's Instructions for Schedule K-1 (Form 1065) to help each partner report his or her share of the partnership's income, deductions, credits, and tax preference items. 1040x online form Keep Schedule K-1 (Form 1065) for your records. 1040x online form Do not attach it to your Form 1040, unless you are specifically required to do so. 1040x online form For more information on partnerships, see Publication 541, Partnerships. 1040x online form Qualified joint venture. 1040x online form   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. 1040x online form To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. 1040x online form For further information on how to make the election and which schedule(s) to file, see the instructions for your individual tax return. 1040x online form S Corporation Income In most cases, an S corporation does not pay tax on its income. 1040x online form Instead, the income, losses, deductions, and credits of the corporation are passed through to the shareholders based on each shareholder's pro rata share. 1040x online form Schedule K-1 (Form 1120S). 1040x online form   An S corporation must file a return on Form 1120S, U. 1040x online form S. 1040x online form Income Tax Return for an S Corporation, and send Schedule K-1 (Form 1120S) to each shareholder. 1040x online form In addition, the S corporation will send each shareholder a copy of the Shareholder's Instructions for Schedule K-1 (Form 1120S) to help each shareholder report his or her share of the S corporation's income, losses, credits, and deductions. 1040x online form Keep Schedule K-1 (Form 1120S) for your records. 1040x online form Do not attach it to your Form 1040, unless you are specifically required to do so. 1040x online form For more information on S corporations and their shareholders, see the Instructions for Form 1120S. 1040x online form Recoveries A recovery is a return of an amount you deducted or took a credit for in an earlier year. 1040x online form The most common recoveries are refunds, reimbursements, and rebates of deductions itemized on Schedule A (Form 1040). 1040x online form You also may have recoveries of non-itemized deductions (such as payments on previously deducted bad debts) and recoveries of items for which you previously claimed a tax credit. 1040x online form Tax benefit rule. 1040x online form   You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. 1040x online form For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year. 1040x online form For more information, see Publication 525. 1040x online form Federal income tax refund. 1040x online form   Refunds of federal income taxes are not included in your income because they are never allowed as a deduction from income. 1040x online form State tax refund. 1040x online form   If you received a state or local income tax refund (or credit or offset) in 2013, you generally must include it in income if you deducted the tax in an earlier year. 1040x online form The payer should send Form 1099-G, Certain Government Payments, to you by January 31, 2014. 1040x online form The IRS also will receive a copy of the Form 1099-G. 1040x online form If you file Form 1040, use the State and Local Income Tax Refund Worksheet in the 2013 Form 1040 instructions for line 10 to figure the amount (if any) to include in your income. 1040x online form See Publication 525 for when you must use another worksheet. 1040x online form   If you could choose to deduct for a tax year either: State and local income taxes, or State and local general sales taxes, then the maximum refund that you may have to include in income is limited to the excess of the tax you chose to deduct for that year over the tax you did not choose to deduct for that year. 1040x online form For examples, see Publication 525. 1040x online form Mortgage interest refund. 1040x online form    If you received a refund or credit in 2013 of mortgage interest paid in an earlier year, the amount should be shown in box 3 of your Form 1098, Mortgage Interest Statement. 1040x online form Do not subtract the refund amount from the interest you paid in 2013. 1040x online form You may have to include it in your income under the rules explained in the following discussions. 1040x online form Interest on recovery. 1040x online form   Interest on any of the amounts you recover must be reported as interest income in the year received. 1040x online form For example, report any interest you received on state or local income tax refunds on Form 1040, line 8a. 1040x online form Recovery and expense in same year. 1040x online form   If the refund or other recovery and the expense occur in the same year, the recovery reduces the deduction or credit and is not reported as income. 1040x online form Recovery for 2 or more years. 1040x online form   If you receive a refund or other recovery that is for amounts you paid in 2 or more separate years, you must allocate, on a pro rata basis, the recovered amount between the years in which you paid it. 1040x online form This allocation is necessary to determine the amount of recovery from any earlier years and to determine the amount, if any, of your allowable deduction for this item for the current year. 1040x online form For information on how to compute the allocation, see Recoveries in Publication 525. 1040x online form Itemized Deduction Recoveries If you recover any amount that you deducted in an earlier year on Schedule A (Form 1040), you generally must include the full amount of the recovery in your income in the year you receive it. 1040x online form Where to report. 1040x online form   Enter your state or local income tax refund on Form 1040, line 10, and the total of all other recoveries as other income on Form 1040, line 21. 1040x online form You cannot use Form 1040A or Form 1040EZ. 1040x online form Standard deduction limit. 1040x online form   You generally are allowed to claim the standard deduction if you do not itemize your deductions. 1040x online form Only your itemized deductions that are more than your standard deduction are subject to the recovery rule (unless you are required to itemize your deductions). 1040x online form If your total deductions on the earlier year return were not more than your income for that year, include in your income this year the lesser of: Your recoveries, or The amount by which your itemized deductions exceeded the standard deduction. 1040x online form Example. 1040x online form For 2012, you filed a joint return. 1040x online form Your taxable income was $60,000 and you were not entitled to any tax credits. 1040x online form Your standard deduction was $11,900, and you had itemized deductions of $14,000. 1040x online form In 2013, you received the following recoveries for amounts deducted on your 2012 return: Medical expenses $200 State and local income tax refund 400 Refund of mortgage interest 325 Total recoveries $925 None of the recoveries were more than the deductions taken for 2012. 1040x online form The difference between the state and local income tax you deducted and your local general sales tax was more than $400. 1040x online form Your total recoveries are less than the amount by which your itemized deductions exceeded the standard deduction ($14,000 − 11,900 = $2,100), so you must include your total recoveries in your income for 2013. 1040x online form Report the state and local income tax refund of $400 on Form 1040, line 10, and the balance of your recoveries, $525, on Form 1040, line 21. 1040x online form Standard deduction for earlier years. 1040x online form   To determine if amounts recovered in 2013 must be included in your income, you must know the standard deduction for your filing status for the year the deduction was claimed. 1040x online form Look in the instructions for your tax return from prior years to locate the standard deduction for the filing status for that prior year. 1040x online form Example. 1040x online form You filed a joint return on Form 1040 for 2012 with taxable income of $45,000. 1040x online form Your itemized deductions were $12,350. 1040x online form The standard deduction that you could have claimed was $11,900. 1040x online form In 2013, you recovered $2,100 of your 2012 itemized deductions. 1040x online form None of the recoveries were more than the actual deductions for 2012. 1040x online form Include $450 of the recoveries in your 2013 income. 1040x online form This is the smaller of your recoveries ($2,100) or the amount by which your itemized deductions were more than the standard deduction ($12,350 − $11,900 = $450). 1040x online form Recovery limited to deduction. 1040x online form   You do not include in your income any amount of your recovery that is more than the amount you deducted in the earlier year. 1040x online form The amount you include in your income is limited to the smaller of: The amount deducted on Schedule A (Form 1040), or The amount recovered. 1040x online form Example. 1040x online form During 2012 you paid $1,700 for medical expenses. 1040x online form From this amount you subtracted $1,500, which was 7. 1040x online form 5% of your adjusted gross income. 1040x online form Your actual medical expense deduction was $200. 1040x online form In 2013, you received a $500 reimbursement from your medical insurance for your 2012 expenses. 1040x online form The only amount of the $500 reimbursement that must be included in your income for 2013 is $200—the amount actually deducted. 1040x online form Other recoveries. 1040x online form   See Recoveries in Publication 525 if: You have recoveries of items other than itemized deductions, or You received a recovery for an item for which you claimed a tax credit (other than investment credit or foreign tax credit) in a prior year. 1040x online form Rents from Personal Property If you rent out personal property, such as equipment or vehicles, how you report your income and expenses is in most cases determined by: Whether or not the rental activity is a business, and Whether or not the rental activity is conducted for profit. 1040x online form In most cases, if your primary purpose is income or profit and you are involved in the rental activity with continuity and regularity, your rental activity is a business. 1040x online form See Publication 535, Business Expenses, for details on deducting expenses for both business and not-for-profit activities. 1040x online form Reporting business income and expenses. 1040x online form    If you are in the business of renting personal property, report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). 1040x online form The form instructions have information on how to complete them. 1040x online form Reporting nonbusiness income. 1040x online form   If you are not in the business of renting personal property, report your rental income on Form 1040, line 21. 1040x online form List the type and amount of the income on the dotted line next to line 21. 1040x online form Reporting nonbusiness expenses. 1040x online form   If you rent personal property for profit, include your rental expenses in the total amount you enter on Form 1040, line 36. 1040x online form Also enter the amount and “PPR” on the dotted line next to line 36. 1040x online form   If you do not rent personal property for profit, your deductions are limited and you cannot report a loss to offset other income. 1040x online form See Activity not for profit , under Other Income, later. 1040x online form Repayments If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. 1040x online form Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. 1040x online form Generally, you can claim a deduction or credit only if the repayment qualifies as an expense or loss incurred in your trade or business or in a for-profit transaction. 1040x online form Type of deduction. 1040x online form   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. 1040x online form You generally deduct the repayment on the same form or schedule on which you previously reported it as income. 1040x online form For example, if you reported it as self-employment income, deduct it as a business expense on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). 1040x online form If you reported it as a capital gain, deduct it as a capital loss as explained in the Instructions for Schedule D (Form 1040). 1040x online form If you reported it as wages, unemployment compensation, or other nonbusiness income, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040). 1040x online form Repaid social security benefits. 1040x online form   If you repaid social security benefits or equivalent railroad retirement benefits, see Repayment of benefits in chapter 11. 1040x online form Repayment of $3,000 or less. 1040x online form   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. 1040x online form If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 23. 1040x online form Repayment over $3,000. 1040x online form   If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). 1040x online form However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. 1040x online form This means that at the time you included the income, it appeared that you had an unrestricted right to it. 1040x online form If you qualify for this choice, figure your tax under both methods and compare the results. 1040x online form Use the method (deduction or credit) that results in less tax. 1040x online form When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. 1040x online form Each instance of repayment is not considered separately. 1040x online form Method 1. 1040x online form   Figure your tax for 2013 claiming a deduction for the repaid amount. 1040x online form If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 28. 1040x online form Method 2. 1040x online form   Figure your tax for 2013 claiming a credit for the repaid amount. 1040x online form Follow these steps. 1040x online form Figure your tax for 2013 without deducting the repaid amount. 1040x online form Refigure your tax from the earlier year without including in income the amount you repaid in 2013. 1040x online form Subtract the tax in (2) from the tax shown on your return for the earlier year. 1040x online form This is the credit. 1040x online form Subtract the answer in (3) from the tax for 2013 figured without the deduction (Step 1). 1040x online form   If method 1 results in less tax, deduct the amount repaid. 1040x online form If method 2 results in less tax, claim the credit figured in (3) above on Form 1040, line 71, by adding the amount of the credit to any other credits on this line, and entering “I. 1040x online form R. 1040x online form C. 1040x online form 1341” in the column to the right of line 71. 1040x online form   An example of this computation can be found in Publication 525. 1040x online form Repaid wages subject to social security and Medicare taxes. 1040x online form   If you had to repay an amount that you included in your wages or compensation in an earlier year on which social security, Medicare, or tier 1 RRTA taxes were paid, ask your employer to refund the excess amount to you. 1040x online form If the employer refuses to refund the taxes, ask for a statement indicating the amount of the overcollection to support your claim. 1040x online form File a claim for refund using Form 843, Claim for Refund and Request for Abatement. 1040x online form Repaid wages subject to Additional Medicare Tax. 1040x online form   Employers cannot make an adjustment or file a claim for refund for Additional Medicare Tax withholding when there is a repayment of wages received by an employee in a prior year because the employee determines liability for Additional Medicare Tax on the employee's income tax return for the prior year. 1040x online form If you had to repay an amount that you included in your wages or compensation in an earlier year, and on which Additional Medicare Tax was paid, you may be able to recover the Additional Medicare Tax paid on the amount. 1040x online form To recover Additional Medicare Tax on the repaid wages or compensation, you must file Form 1040X, Amended U. 1040x online form S. 1040x online form Individual Income Tax Return, for the prior year in which the wages or compensation were originally received. 1040x online form See the Instructions for Form 1040X. 1040x online form Royalties Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. 1040x online form In most cases you report royalties in Part I of Schedule E (Form 1040). 1040x online form However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc. 1040x online form , report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). 1040x online form Copyrights and patents. 1040x online form   Royalties from copyrights on literary, musical, or artistic works, and similar property, or from patents on inventions, are amounts paid to you for the right to use your work over a specified period of time. 1040x online form Royalties generally are based on the number of units sold, such as the number of books, tickets to a performance, or machines sold. 1040x online form Oil, gas, and minerals. 1040x online form   Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property. 1040x online form The royalties are based on units, such as barrels, tons, etc. 1040x online form , and are paid to you by a person or company who leases the property from you. 1040x online form Depletion. 1040x online form   If you are the owner of an economic interest in mineral deposits or oil and gas wells, you can recover your investment through the depletion allowance. 1040x online form For information on this subject, see chapter 9 of Publication 535. 1040x online form Coal and iron ore. 1040x online form   Under certain circumstances, you can treat amounts you receive from the disposal of coal and iron ore as payments from the sale of a capital asset, rather than as royalty income. 1040x online form For information about gain or loss from the sale of coal and iron ore, see Publication 544. 1040x online form Sale of property interest. 1040x online form   If you sell your complete interest in oil, gas, or mineral rights, the amount you receive is considered payment for the sale of property used in a trade or business under section 1231, not royalty income. 1040x online form Under certain circumstances, the sale is subject to capital gain or loss treatment as explained in the Instructions for Schedule D (Form 1040). 1040x online form For more information on selling section 1231 property, see chapter 3 of Publication 544. 1040x online form   If you retain a royalty, an overriding royalty, or a net profit interest in a mineral property for the life of the property, you have made a lease or a sublease, and any cash you receive for the assignment of other interests in the property is ordinary income subject to a depletion allowance. 1040x online form Part of future production sold. 1040x online form   If you own mineral property but sell part of the future production, in most cases you treat the money you receive from the buyer at the time of the sale as a loan from the buyer. 1040x online form Do not include it in your income or take depletion based on it. 1040x online form   When production begins, you include all the proceeds in your income, deduct all the production expenses, and deduct depletion from that amount to arrive at your taxable income from the property. 1040x online form Unemployment Benefits The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits. 1040x online form Unemployment compensation. 1040x online form   You must include in income all unemployment compensation you receive. 1040x online form You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you. 1040x online form In most cases, you enter unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. 1040x online form Types of unemployment compensation. 1040x online form   Unemployment compensation generally includes any amount received under an unemployment compensation law of the United States or of a state. 1040x online form It includes the following benefits. 1040x online form Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund. 1040x online form State unemployment insurance benefits. 1040x online form Railroad unemployment compensation benefits. 1040x online form Disability payments from a government program paid as a substitute for unemployment compensation. 1040x online form (Amounts received as workers' compensation for injuries or illness are not unemployment compensation. 1040x online form See chapter 5 for more information. 1040x online form ) Trade readjustment allowances under the Trade Act of 1974. 1040x online form Unemployment assistance under the Disaster Relief and Emergency Assistance Act. 1040x online form Unemployment assistance under the Airline Deregulation Act of 1974 Program. 1040x online form Governmental program. 1040x online form   If you contribute to a governmental unemployment compensation program and your contributions are not deductible, amounts you receive under the program are not included as unemployment compensation until you recover your contributions. 1040x online form If you deducted all of your contributions to the program, the entire amount you receive under the program is included in your income. 1040x online form Repayment of unemployment compensation. 1040x online form   If you repaid in 2013 unemployment compensation you received in 2013, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. 1040x online form On the dotted line next to your entry enter “Repaid” and the amount you repaid. 1040x online form If you repaid unemployment compensation in 2013 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. 1040x online form If the amount is more than $3,000, see Repayments , earlier. 1040x online form Tax withholding. 1040x online form   You can choose to have federal income tax withheld from your unemployment compensation. 1040x online form To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. 1040x online form Tax will be withheld at 10% of your payment. 1040x online form    If you do not choose to have tax withheld from your unemployment compensation, you may be liable for estimated tax. 1040x online form If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. 1040x online form For more information on estimated tax, see chapter 4. 1040x online form Supplemental unemployment benefits. 1040x online form   Benefits received from an employer-financed fund (to which the employees did not contribute) are not unemployment compensation. 1040x online form They are taxable as wages and are subject to withholding for income tax. 1040x online form They may be subject to social security and Medicare taxes. 1040x online form For more information, see Supplemental Unemployment Benefits in section 5 of Publication 15-A, Employer's Supplemental Tax Guide. 1040x online form Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. 1040x online form Repayment of benefits. 1040x online form   You may have to repay some of your supplemental unemployment benefits to qualify for trade readjustment allowances under the Trade Act of 1974. 1040x online form If you repay supplemental unemployment benefits in the same year you receive them, reduce the total benefits by the amount you repay. 1040x online form If you repay the benefits in a later year, you must include the full amount of the benefits received in your income for the year you received them. 1040x online form   Deduct the repayment in the later year as an adjustment to gross income on Form 1040. 1040x online form (You cannot use Form 1040A or Form 1040EZ. 1040x online form ) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36. 1040x online form If the amount you repay in a later year is more than $3,000, you may be able to take a credit against your tax for the later year instead of deducting the amount repaid. 1040x online form For more information on this, see Repayments , earlier. 1040x online form Private unemployment fund. 1040x online form   Unemployment benefit payments from a private (nonunion) fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. 1040x online form Report the taxable amount on Form 1040, line 21. 1040x online form Payments by a union. 1040x online form   Benefits paid to you as an unemployed member of a union from regular union dues are included in your income on Form 1040, line 21. 1040x online form However, if you contribute to a special union fund and your payments to the fund are not deductible, the unemployment benefits you receive from the fund are includible in your income only to the extent they are more than your contributions. 1040x online form Guaranteed annual wage. 1040x online form   Payments you receive from your employer during periods of unemployment, under a union agreement that guarantees you full pay during the year, are taxable as wages. 1040x online form Include them on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. 1040x online form State employees. 1040x online form   Payments similar to a state's unemployment compensation may be made by the state to its employees who are not covered by the state's unemployment compensation law. 1040x online form Although the payments are fully taxable, do not report them as unemployment compensation. 1040x online form Report these payments on Form 1040, line 21. 1040x online form Welfare and Other Public Assistance Benefits Do not include in your income governmental benefit payments from a public welfare fund based upon need, such as payments to blind individuals under a state public assistance law. 1040x online form Payments from a state fund for the victims of crime should not be included in the victims' incomes if they are in the nature of welfare payments. 1040x online form Do not deduct medical expenses that are reimbursed by such a fund. 1040x online form You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently. 1040x online form Reemployment Trade Adjustment Assistance (RTAA) payments. 1040x online form   RTAA payments received from a state must be included in your income. 1040x online form The state must send you Form 1099-G to advise you of the amount you should include in income. 1040x online form The amount should be reported on Form 1040, line 21. 1040x online form Persons with disabilities. 1040x online form   If you have a disability, you must include in income compensation you receive for services you perform unless the compensation is otherwise excluded. 1040x online form However, you do not include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. 1040x online form Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work. 1040x online form Disaster relief grants. 1040x online form    Do not include post-disaster grants received under the Robert T. 1040x online form Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, child care, or funeral expenses. 1040x online form Do not deduct casualty losses or medical expenses that are specifically reimbursed by these disaster relief grants. 1040x online form If you have deducted a casualty loss for the loss of your personal residence and you later receive a disaster relief grant for the loss of the same residence, you may have to include part or all of the grant in your taxable income. 1040x online form See Recoveries , earlier. 1040x online form Unemployment assistance payments under the Act are taxable unemployment compensation. 1040x online form See Unemployment compensation under Unemployment Benefits, earlier. 1040x online form Disaster relief payments. 1040x online form   You can exclude from income any amount you receive that is a qualified disaster relief payment. 1040x online form A qualified disaster relief payment is an amount paid to you: To reimburse or pay reasonable and necessary personal, family, living, or funeral expenses that result from a qualified disaster; To reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation of your home or repair or replacement of its contents to the extent it is due to a qualified disaster; By a person engaged in the furnishing or sale of transportation as a common carrier because of the death or personal physical injuries incurred as a result of a qualified disaster; or By a federal, state, or local government, or agency, or instrumentality in connection with a qualified disaster in order to promote the general welfare. 1040x online form You can exclude this amount only to the extent any expense it pays for is not paid for by insurance or otherwise. 1040x online form The exclusion does not apply if you were a participant or conspirator in a terrorist action or a representative of one. 1040x online form   A qualified disaster is: A disaster which results from a terrorist or military action; A federally declared disaster; or A disaster which results from an accident involving a common carrier, or from any other event, which is determined to be catastrophic by the Secretary of the Treasury or his or her delegate. 1040x online form   For amounts paid under item (4), a disaster is qualified if it is determined by an applicable federal, state, or local authority to warrant assistance from the federal, state, or local government, agency, or instrumentality. 1040x online form Disaster mitigation payments. 1040x online form   You also can exclude from income any amount you receive that is a qualified disaster mitigation payment. 1040x online form Qualified disaster mitigation payments are also most commonly paid to you in the period immediately following damage to property as a result of a natural disaster. 1040x online form However, disaster mitigation payments are used to mitigate (reduce the severity of) potential damage from future natural disasters. 1040x online form They are paid to you through state and local governments based on the provisions of the Robert T. 1040x online form Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act. 1040x online form   You cannot increase the basis or adjusted basis of your property for improvements made with nontaxable disaster mitigation payments. 1040x online form Home Affordable Modification Program (HAMP). 1040x online form   If you benefit from Pay-for-Performance Success Payments under HAMP, the payments are not taxable. 1040x online form Mortgage assistance payments under section 235 of the National Housing Act. 1040x online form   Payments made under section 235 of the National Housing Act for mortgage assistance are not included in the homeowner's income. 1040x online form Interest paid for the homeowner under the mortgage assistance program cannot be deducted. 1040x online form Medicare. 1040x online form   Medicare benefits received under title XVIII of the Social Security Act are not includible in the gross income of the individuals for whom they are paid. 1040x online form This includes basic (part A (Hospital Insurance Benefits for the Aged)) and supplementary (part B (Supplementary Medical Insurance Benefits for the Aged)). 1040x online form Old-age, survivors, and disability insurance benefits (OASDI). 1040x online form   Generally, OASDI payments under section 202 of title II of the Social Security Act are not includible in the gross income of the individuals to whom they are paid. 1040x online form This applies to old-age insurance benefits, and insurance benefits for wives, husbands, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment. 1040x online form Nutrition Program for the Elderly. 1040x online form    Food benefits you receive under the Nutrition Program for the Elderly are not taxable. 1040x online form If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you are also eligible for food benefits. 1040x online form Payments to reduce cost of winter energy. 1040x online form   Payments made by a state to qualified people to reduce their cost of winter energy use are not taxable. 1040x online form Other Income The following brief discussions are arranged in alphabetical order. 1040x online form Other income items briefly discussed below are referenced to publications which provide more topical information. 1040x online form Activity not for profit. 1040x online form   You must include on your return income from an activity from which you do not expect to make a profit. 1040x online form An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. 1040x online form Enter this income on Form 1040, line 21. 1040x online form Deductions for expenses related to the activity are limited. 1040x online form They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040). 1040x online form See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit. 1040x online form Alaska Permanent Fund dividend. 1040x online form   If you received a payment from Alaska's mineral income fund (Alaska Permanent Fund dividend), report it as income on line 21 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. 1040x online form The state of Alaska sends each recipient a document that shows the amount of the payment with the check. 1040x online form The amount also is reported to IRS. 1040x online form Alimony. 1040x online form   Include in your income on Form 1040, line 11, any alimony payments you receive. 1040x online form Amounts you receive for child support are not income to you. 1040x online form Alimony and child support payments are discussed in chapter 18. 1040x online form Bribes. 1040x online form   If you receive a bribe, include it in your income. 1040x online form Campaign contributions. 1040x online form   These contributions are not income to a candidate unless they are diverted to his or her personal use. 1040x online form To be exempt from tax, the contributions must be spent for campaign purposes or kept in a fund for use in future campaigns. 1040x online form However, interest earned on bank deposits, dividends received on contributed securities, and net gains realized on sales of contributed securities are taxable and must be reported on Form 1120-POL, U. 1040x online form S. 1040x online form Income Tax Return for Certain Political Organizations. 1040x online form Excess campaign funds transferred to an office account must be included in the officeholder's income on Form 1040, line 21, in the year transferred. 1040x online form Car pools. 1040x online form   Do not include in your income amounts you receive from the passengers for driving a car in a car pool to and from work. 1040x online form These amounts are considered reimbursement for your expenses. 1040x online form However, this rule does not apply if you have developed car pool arrangements into a profit-making business of transporting workers for hire. 1040x online form Cash rebates. 1040x online form   A cash rebate you receive from a dealer or manufacturer of an item you buy is not income, but you must reduce your basis by the amount of the rebate. 1040x online form Example. 1040x online form You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. 1040x online form The $2,000 is not income to you. 1040x online form Your basis in the car is $22,000. 1040x online form This is the basis on which you figure gain or loss if you sell the car and depreciation if you use it for business. 1040x online form Casualty insurance and other reimbursements. 1040x online form   You generally should not report these reimbursements on your return unless you are figuring gain or loss from the casualty or theft. 1040x online form See chapter 25 for more information. 1040x online form Child support payments. 1040x online form   You should not report these payments on your return. 1040x online form See chapter 18 for more information. 1040x online form Court awards and damages. 1040x online form   To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. 1040x online form The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. 1040x online form Include the following as ordinary income. 1040x online form Interest on any award. 1040x online form Compensation for lost wages or lost profits in most cases. 1040x online form Punitive damages, in most cases. 1040x online form It does not matter if they relate to a physical injury or physical sickness. 1040x online form Amounts received in settlement of pension rights (if you did not contribute to the plan). 1040x online form Damages for: Patent or copyright infringement, Breach of contract, or Interference with business operations. 1040x online form Back pay and damages for emotional distress received to satisfy a claim under title VII of the Civil Rights Act of 1964. 1040x online form Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income. 1040x online form   Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments). 1040x online form Emotional distress. 1040x online form   Emotional distress itself is not a physical injury or physical sickness, but damages you receive for emotional distress due to a physical injury or sickness are treated as received for the physical injury or sickness. 1040x online form Do not include them in your income. 1040x online form   If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, employment discrimination or injury to reputation), you must include the damages in your income, except for any damages you receive for medical care due to that emotional distress. 1040x online form Emotional distress includes physical symptoms that result from emotional distress, such as headaches, insomnia, and stomach disorders. 1040x online form Deduction for costs involved in unlawful discrimination suits. 1040x online form   You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. 1040x online form For more information, see Publication 525. 1040x online form Credit card insurance. 1040x online form   In most cases, if you receive benefits under a credit card disability or unemployment insurance plan, the benefits are taxable to you. 1040x online form These plans make the minimum monthly payment on your credit card account if you cannot make the payment due to injury, illness, disability, or unemployment. 1040x online form Report on Form 1040, line 21, the amount of benefits you received during the year that is more than the amount of the premiums you paid during the year. 1040x online form Down payment assistance. 1040x online form   If you purchase a home and receive assistance from a nonprofit corporation to make the down payment, that assistance is not included in your income. 1040x online form If the corporation qualifies as a tax-exempt charitable organization, the assistance is treated as a gift and is included in your basis of the house. 1040x online form If the corporation does not qualify, the assistance is treated as a rebate or reduction of the purchase price and is not included in your basis. 1040x online form Employment agency fees. 1040x online form   If you get a job through an employment agency, and the fee is paid by your employer, the fee is not includible in your income if you are not liable for it. 1040x online form However, if you pay it and your employer reimburses you for it, it is includible in your income. 1040x online form Energy conservation subsidies. 1040x online form   You can exclude from gross income any subsidy provided, either directly or indirectly, by public utilities for the purchase or installation of an energy conservation measure for a dwelling unit. 1040x online form Energy conservation measure. 1040x online form   This includes installations or modifications that are primarily designed to reduce consumption of electricity or natural gas, or improve the management of energy demand. 1040x online form Dwelling unit. 1040x online form   This includes a house, apartment, condominium, mobile home, boat, or similar property. 1040x online form If a building or structure contains both dwelling and other units, any subsidy must be properly allocated. 1040x online form Estate and trust income. 1040x online form    An estate or trust, unlike a partnership, may have to pay federal income tax. 1040x online form If you are a beneficiary of an estate or trust, you may be taxed on your share of its income distributed or required to be distributed to you. 1040x online form However, there is never a double tax. 1040x online form Estates and trusts file their returns on Form 1041, U. 1040x online form S. 1040x online form Income Tax Return for Estates and Trusts, and your share of the income is reported to you on Schedule K-1 (Form 1041). 1040x online form Current income required to be distributed. 1040x online form   If you are the beneficiary of an estate or trust that must distribute all of its current income, you must report your share of the distributable net income, whether or not you actually received it. 1040x online form Current income not required to be distributed. 1040x online form    If you are the beneficiary of an estate or trust and the fiduciary has the choice of whether to distribute all or part of the current income, you must report: All income that is required to be distributed to you, whether or not it is actually distributed, plus All other amounts actually paid or credited to you, up to the amount of your share of distributable net income. 1040x online form How to report. 1040x online form   Treat each item of income the same way that the estate or trust would treat it. 1040x online form For example, if a trust's dividend income is distributed to you, you report the distribution as dividend income on your return. 1040x online form The same rule applies to distributions of tax-exempt interest and capital gains. 1040x online form   The fiduciary of the estate or trust must tell you the type of items making up your share of the estate or trust income and any credits you are allowed on your individual income tax return. 1040x online form Losses. 1040x online form   Losses of estates and trusts generally are not deductible by the beneficiaries. 1040x online form Grantor trust. 1040x online form   Income earned by a grantor trust is taxable to the grantor, not the beneficiary, if the grantor keeps certain control over the trust. 1040x online form (The grantor is the one who transferred property to the trust. 1040x online form ) This rule applies if the property (or income from the property) put into the trust will or may revert (be returned) to the grantor or the grantor's spouse. 1040x online form   Generally, a trust is a grantor trust if the grantor has a reversionary interest valued (at the date of transfer) at more than 5% of the value of the transferred property. 1040x online form Expenses paid by another. 1040x online form   If your personal expenses are paid for by another person, such as a corporation, the payment may be taxable to you depending upon your relationship with that person and the nature of the payment. 1040x online form But if the payment makes up for a loss caused by that person, and only restores you to the position you were in before the loss, the payment is not includible in your income. 1040x online form Fees for services. 1040x online form   Include all fees for your services in your income. 1040x online form Examples of these fees are amounts you receive for services you perform as: A corporate director, An executor, administrator, or personal representative of an estate, A manager of a trade or business you operated before declaring Chapter 11 bankruptcy, A notary public, or An election precinct official. 1040x online form Nonemployee compensation. 1040x online form   If you are not an employee and the fees for your services from the same payer total $600 or more for the year, you may receive a Form 1099-MISC. 1040x online form You may need to report your fees as self-employment income. 1040x online form See Self-Employed Persons , in chapter 1, for a discussion of when you are considered self-employed. 1040x online form Corporate director. 1040x online form   Corporate director fees are self-employment income. 1040x online form Report these payments on Schedule C or Schedule C-EZ (Form 1040). 1040x online form Personal representatives. 1040x online form   All personal representatives must include in their gross income fees paid to them from an estate. 1040x online form If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on Form 1040, line 21. 1040x online form If you are in the trade or business of being an executor, report these fees as self-employment income on Schedule C or Schedule C-EZ (Form 1040). 1040x online form The fee is not includible in income if it is waived. 1040x online form Manager of trade or business for bankruptcy estate. 1040x online form   Include in your income all payments received from your bankruptcy estate for managing or operating a trade or business that you operated before you filed for bankruptcy. 1040x online form Report this income on Form 1040, line 21. 1040x online form Notary public. 1040x online form    Report payments for these services on Schedule C or Schedule C-EZ (Form 1040). 1040x online form These payments are not subject to self-employment tax. 1040x online form See the separate instructions for Schedule SE (Form 1040) for details. 1040x online form Election precinct official. 1040x online form    You should receive a Form W-2 showing payments for services performed as an election official or election worker. 1040x online form Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. 1040x online form Foster care providers. 1040x online form   Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. 1040x online form However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments. 1040x online form   A qualified foster individual is a person who: Is living in a foster family home, and Was placed there by: An agency of a state or one of its political subdivisions, or A qualified foster care placement agency. 1040x online form Difficulty-of-care payments. 1040x online form   These are additional payments that are designated by the payer as compensation for providing the additional care that is required for physically, mentally, or emotionally handicapped qualified foster individuals. 1040x online form A state must determine that the additional compensation is needed, and the care for which the payments are made must be provided in your home. 1040x online form   You must include in your income difficulty-of-care payments received for more than: 10 qualified foster individuals under age 19, or 5 qualified foster individuals age 19 or older. 1040x online form Maintaining space in home. 1040x online form   If you are paid to maintain space in your home for emergency foster care, you must include the payment in your income. 1040x online form Reporting taxable payments. 1040x online form    If you receive payments that you must include in your income, you are in business as a foster care provider and you are self-employed. 1040x online form Report the payments on Schedule C or Schedule C-EZ (Form 1040). 1040x online form See Publication 587, Business Use of Your Home, to help you determine the amount you can deduct for the use of your home. 1040x online form Found property. 1040x online form   If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession. 1040x online form Free tour. 1040x online form   If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. 1040x online form Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. 1040x online form You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. 1040x online form If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040). 1040x online form Gambling winnings. 1040x online form   You must include your gambling winnings in income on Form 1040, line 21. 1040x online form If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. 1040x online form Lotteries and raffles. 1040x online form   Winnings from lotteries and raffles are gambling winnings. 1040x online form In addition to cash winnings, you must include in your income the fair market value of bonds, cars, houses, and other noncash prizes. 1040x online form    If you win a state lottery prize payable in installments, see Publication 525 for more information. 1040x online form Form W-2G. 1040x online form   You may have received a Form W-2G, Certain Gambling Winnings, showing the amount of your gambling winnings and any tax taken out of them. 1040x online form Include the amount from box 1 on Form 1040, line 21. 1040x online form Include the amount shown in box 4 on Form 1040, line 62, as federal income tax withheld. 1040x online form Reporting winnings and recordkeeping. 1040x online form   For more information on reporting gam