File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

2010 Tax Tables

File 1040ez OnlineE File State Taxes For FreeH&r Block TaxFree 1040x Filing OnlineFile Back Tax ReturnsIrs Form 1040x 2013 Tax ReturnHrblock Free FileIrs Tax Forms For 2011State Income Tax TablesFree Online State Tax FilingH And R Block Tax SoftwareFree Tax E FileFile 2008 Taxes Online FreeEfile 1040nrFile 2008 Taxes OnlineFree Filing For 2012 TaxesIrs Amended Tax FormIncome Taxes For Students2012 Tax Forms Online2007 Tax ReturnsHow Do I File 2011 TaxesIrs State Tax Forms 20122012 Federal Tax Forms 1040 InstructionsH & R Block Com2010 Irs Form 1040ezEz Form 2014Amended TaxesFile An Amended Tax Return OnlineH&r Block 2011 Tax SoftwareFree Online Tax FilingAmend Tax Return 2013How To File Tax AmendmentVita Tax ProgramAmend 2011 ReturnFree Income Tax FormsIrs Gov Free FileState Tax Forms 20122012 Amended Federal Tax Return FormAmended Irs Tax FormsFree Tax Filing Hr Block

2010 Tax Tables

2010 tax tables Publication 575 - Introductory Material Table of Contents What's New Reminders IntroductionThe General Rule. 2010 tax tables Individual retirement arrangements (IRAs). 2010 tax tables Civil service retirement benefits. 2010 tax tables Social security and equivalent tier 1 railroad retirement benefits. 2010 tax tables Tax-sheltered annuity plans (403(b) plans). 2010 tax tables Ordering forms and publications. 2010 tax tables Tax questions. 2010 tax tables Useful Items - You may want to see: What's New For purposes of the net investment income tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). 2010 tax tables However, these distributions are taken into account when determining the modified adjusted gross income threshold. 2010 tax tables Distributions from a nonqualified retirement plan are included in net investment income. 2010 tax tables See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. 2010 tax tables Reminders Future developments. 2010 tax tables  For the latest information about developments related to Publication 575, such as legislation enacted after it was published, go to www. 2010 tax tables irs. 2010 tax tables gov/pub575. 2010 tax tables In-plan Roth rollovers. 2010 tax tables   Starting in 2013, the American Taxpayer Relief Act of 2012 expanded the rules for in-plan Roth rollovers to include more taxpayers. 2010 tax tables For more information, see In-plan Roth rollovers under Rollovers, discussed later. 2010 tax tables Photographs of missing children. 2010 tax tables  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 2010 tax tables Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2010 tax tables You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 2010 tax tables Introduction This publication discusses the tax treatment of distributions you receive from pension and annuity plans and also shows you how to report the income on your federal income tax return. 2010 tax tables How these distributions are taxed depends on whether they are periodic payments (amounts received as an annuity) that are paid at regular intervals over several years or nonperiodic payments (amounts not received as an annuity). 2010 tax tables What is covered in this publication?   This publication contains information that you need to understand the following topics. 2010 tax tables How to figure the tax-free part of periodic payments under a pension or annuity plan, including using a simple worksheet for payments under a qualified plan. 2010 tax tables How to figure the tax-free part of nonperiodic payments from qualified and nonqualified plans, and how to use the optional methods to figure the tax on lump-sum distributions from pension, stock bonus, and profit-sharing plans. 2010 tax tables How to roll over certain distributions from a retirement plan into another retirement plan or IRA. 2010 tax tables How to report disability payments, and how beneficiaries and survivors of employees and retirees must report benefits paid to them. 2010 tax tables How to report railroad retirement benefits. 2010 tax tables When additional taxes on certain distributions may apply (including the tax on early distributions and the tax on excess accumulation). 2010 tax tables For additional information on how to report pension or annuity payments on your federal income tax return, be sure to review the instructions on the back of Copies B, C, and 2 of the Form 1099-R that you received and the instructions for Form 1040, lines 16a and 16b (Form 1040A, lines 12a and 12b or Form 1040NR, lines 17a and 17b). 2010 tax tables A “corrected” Form 1099-R replaces the corresponding original Form 1099-R if the original Form 1099-R contained an error. 2010 tax tables Make sure you use the amounts shown on the corrected Form 1099-R when reporting information on your tax return. 2010 tax tables What is not covered in this publication?   The following topics are not discussed in this publication. 2010 tax tables The General Rule. 2010 tax tables   This is the method generally used to determine the tax treatment of pension and annuity income from nonqualified plans (including commercial annuities). 2010 tax tables For a qualified plan, you generally cannot use the General Rule unless your annuity starting date is before November 19, 1996. 2010 tax tables Although this publication will help you determine whether you can use the General Rule, it will not help you use it to determine the tax treatment of your pension or annuity income. 2010 tax tables For that and other information on the General Rule, see Publication 939, General Rule for Pensions and Annuities. 2010 tax tables Individual retirement arrangements (IRAs). 2010 tax tables   Information on the tax treatment of amounts you receive from an IRA is in Publication 590, Individual Retirement Arrangements (IRAs). 2010 tax tables Civil service retirement benefits. 2010 tax tables   If you are retired from the federal government (regular, phased, or disability retirement) or are the survivor or beneficiary of a federal employee or retiree who died, get Publication 721, Tax Guide to U. 2010 tax tables S. 2010 tax tables Civil Service Retirement Benefits. 2010 tax tables Publication 721 covers the tax treatment of federal retirement benefits, primarily those paid under the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS). 2010 tax tables It also covers benefits paid from the Thrift Savings Plan (TSP). 2010 tax tables Social security and equivalent tier 1 railroad retirement benefits. 2010 tax tables   For information about the tax treatment of these benefits, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. 2010 tax tables However, this publication (575) covers the tax treatment of the non-social security equivalent benefit portion of tier 1 railroad retirement benefits, tier 2 benefits, vested dual benefits, and supplemental annuity benefits paid by the U. 2010 tax tables S. 2010 tax tables Railroad Retirement Board. 2010 tax tables Tax-sheltered annuity plans (403(b) plans). 2010 tax tables   If you work for a public school or certain tax-exempt organizations, you may be eligible to participate in a 403(b) retirement plan offered by your employer. 2010 tax tables Although this publication covers the treatment of benefits under 403(b) plans and discusses in-plan Roth rollovers from 403(b) plans to designated Roth accounts, it does not cover other tax provisions that apply to these plans. 2010 tax tables For that and other information on 403(b) plans, see Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations. 2010 tax tables Comments and suggestions. 2010 tax tables   We welcome your comments about this publication and your suggestions for future editions. 2010 tax tables   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2010 tax tables NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2010 tax tables Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2010 tax tables   You can send your comments from www. 2010 tax tables irs. 2010 tax tables gov/formspubs/. 2010 tax tables Click on “More Information” and then on “Comment on Tax Forms and Publications. 2010 tax tables ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 2010 tax tables Ordering forms and publications. 2010 tax tables   Visit www. 2010 tax tables irs. 2010 tax tables gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 2010 tax tables Internal Revenue Service 1201 N. 2010 tax tables Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 2010 tax tables   If you have a tax question, check the information available on IRS. 2010 tax tables gov or call 1-800-829-1040. 2010 tax tables We cannot answer tax questions sent to either of the above addresses. 2010 tax tables Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 525 Taxable and Nontaxable Income 560 Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans) 571 Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations 590 Individual Retirement Arrangements (IRAs) 721 Tax Guide to U. 2010 tax tables S. 2010 tax tables Civil Service Retirement Benefits 915 Social Security and Equivalent Railroad Retirement Benefits 939 General Rule for Pensions and Annuities Form (and Instructions) W-4P Withholding Certificate for Pension or Annuity Payments 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2010 tax tables 4972 Tax on Lump-Sum Distributions 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts See How To Get Tax Help near the end of this publication for information about getting publications and forms. 2010 tax tables Prev  Up  Next   Home   More Online Publications
Español

Farm Service Agency

The Farm Service Agency aims to support farms and farming communities through a variety of programs including disaster relief, conservation programs, commodity price guarantee programs, and loan programs.

Contact the Agency or Department

Website: Farm Service Agency

Contact In-Person: Find the Farm Service Agency Office Near You

Address: 1400 Independence Ave SW
STOP 0506

Washington, DC 20250-0506

The 2010 Tax Tables

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