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2010 Taxact

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2010 Taxact

2010 taxact Index Symbols 1231 property sale, Sale of property interest. 2010 taxact 401(k) plans, Elective Deferrals Excess contributions, Excess Contributions 403(b) plans, Elective Deferrals Limit for, Limit for tax-sheltered annuities. 2010 taxact 457 plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under section 457 plans. 2010 taxact 501(c)(18)(D) plans, Elective Deferrals Contributions, Section 501(c)(18)(D) contributions. 2010 taxact 501(c)(3) organizations, Student loans. 2010 taxact 529 program, Qualified tuition program (QTP). 2010 taxact 83(b) election, How to make the choice. 2010 taxact A Academic health centers Meals and lodging when teaching and research organization, Academic health center. 2010 taxact Accelerated death benefits, Accelerated Death Benefits Accident insurance, Accident or Health Plan Accidental death benefits, Accidental death benefits. 2010 taxact Accrual method taxpayers, Prepaid income. 2010 taxact Accrued leave payment At time of retirement or resignation, Accrued leave payment. 2010 taxact Disability retirement, Accrued leave payment. 2010 taxact Activity not for profit, Activity not for profit. 2010 taxact Adoption Employer assistance, Adoption Assistance Advance commissions, Miscellaneous Compensation Aircraft, Flights on employer-provided aircraft. 2010 taxact Airlines No-additional-cost services, No-Additional-Cost Services Valuation of flights on employer-provided aircraft, Flights on employer-provided aircraft. 2010 taxact Alaska Permanent Fund dividend, Alaska Permanent Fund dividend. 2010 taxact Alien status, waiver of, Waiver of alien status. 2010 taxact Aliens Nonresident, Nonresident aliens. 2010 taxact Alimony, Alimony. 2010 taxact Alternative minimum tax (AMT) Recoveries, refiguring of, Subject to alternative minimum tax. 2010 taxact Stock options, Alternative minimum tax (AMT). 2010 taxact Annuities Charitable gift, Charitable gift annuities. 2010 taxact Railroad retirement, Railroad retirement annuities. 2010 taxact Tax-sheltered, Limit for tax-sheltered annuities. 2010 taxact Archer MSAs, Archer MSA contributions. 2010 taxact , Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 2010 taxact Armed forces, Military Combat zone bonus, Veterans' benefits. 2010 taxact Disability, Disability. 2010 taxact Disability pensions, Military and Government Disability Pensions Health professions scholarship, Tuition Reduction Military action as cause of disability injuries, Terrorist attack or military action. 2010 taxact Qualified reservist distribution, Qualified reservist distribution (QRD). 2010 taxact Rehabilitative program payments, Veterans' benefits. 2010 taxact Retirement pay, Military retirement pay. 2010 taxact Veterans benefits, Veterans' benefits. 2010 taxact Assistance (see Tax help) Athletic facilities, employer-provided, Athletic Facilities Automobile (see Vehicle, employer-provided) Awards (see Damages from lawsuits) B Babysitting, Babysitting. 2010 taxact Back pay, award for, Back pay awards. 2010 taxact Backup withholding Barter exchange transactions, Backup withholding. 2010 taxact Bankruptcy Canceled debt not deemed to be income, Excluded debt. 2010 taxact Barter income, Bartering Below-market loans, Below-market loans. 2010 taxact Bequest for services, Bequest for services. 2010 taxact Bicycle, Transportation Fringe benefit, Qualified bicycle commuting. 2010 taxact Black lung benefit payments, Black lung benefit payments. 2010 taxact Bonuses, Bonuses and awards. 2010 taxact , Employee awards or bonuses. 2010 taxact Breach of contract Damages as income, Court awards and damages. 2010 taxact Bribes, Bribes. 2010 taxact Business expenses Reimbursements, Allowances and reimbursements. 2010 taxact Business income, Business and Investment Income, More information. 2010 taxact C Cafeteria plans, Cafeteria plans. 2010 taxact Campaign contributions, Campaign contributions. 2010 taxact Campus lodging, Qualified campus lodging. 2010 taxact , Moving Expense Reimbursements Cancellation of debt, Canceled Debts Cancellation of sales contracts, Canceled sales contract. 2010 taxact Capital gains Recoveries, Capital gains. 2010 taxact , Capital gains. 2010 taxact Capital gains or losses Employee stock option plans (ESOPs), Option granted at a discount. 2010 taxact Incentive stock options (ISOs), Incentive stock options (ISOs). 2010 taxact Sale of personal property, Sale of personal items. 2010 taxact Car (see Vehicle, employer-provided) Car pools, Car pools. 2010 taxact Cash or deferred arrangements (CODAs), Elective Deferrals Cash rebates, Cash rebates. 2010 taxact Casualty insurance Reimbursements from, Casualty insurance and other reimbursements. 2010 taxact Catch-up contributions, Catch-up contributions. 2010 taxact , Catch-up contributions. 2010 taxact Charitable gift annuities, Charitable gift annuities. 2010 taxact Child and Adult Care Food Program Payments to daycare providers, Food program payments to daycare providers. 2010 taxact Child support payments, Child support payments. 2010 taxact Childcare providers, Childcare providers. 2010 taxact , Food program payments to daycare providers. 2010 taxact Chronic illness, Chronically ill individual. 2010 taxact Accelerated death benefits paid to, Exclusion for chronic illness. 2010 taxact Citizens outside U. 2010 taxact S. 2010 taxact Exclusion of foreign income, Reminders Civil Rights Act of 1964, Title VII Back pay and damages for emotional distress under, Court awards and damages. 2010 taxact Clergy, Clergy Coal, Coal and iron ore. 2010 taxact Colleges and universities Faculty lodging, Faculty lodging. 2010 taxact Scholarships and fellowships, Scholarships and fellowships. 2010 taxact Commissions Advance, Miscellaneous Compensation Commuter highway vehicles, Transportation Compensation Employee, Employee Compensation Miscellaneous, Miscellaneous Compensation Unemployment, Unemployment compensation. 2010 taxact Workers', Workers' Compensation Compensatory damages, Other compensation. 2010 taxact , Court awards and damages. 2010 taxact Constructive receipt of income, Constructively received income. 2010 taxact Copyrights Infringement damages, Court awards and damages. 2010 taxact Royalties, Copyrights and patents. 2010 taxact Corporate directors, Corporate director. 2010 taxact Cost-of-living allowances, Government cost-of-living allowances. 2010 taxact Court awards, Court awards and damages. 2010 taxact (see also Damages from lawsuits) Credit card Insurance, Credit card insurance. 2010 taxact Credits Recoveries, refiguring of unused credits, Unused tax credits. 2010 taxact , Unused tax credits. 2010 taxact Currency transactions, foreign, Foreign currency transactions. 2010 taxact D Damages from lawsuits, Court awards and damages. 2010 taxact Back pay awards, Back pay awards. 2010 taxact Breach of contract, Court awards and damages. 2010 taxact Compensatory damages, Other compensation. 2010 taxact , Court awards and damages. 2010 taxact Emotional distress under Title VII, Civil Rights Act of 1964, Court awards and damages. 2010 taxact Punitive damages, Court awards and damages. 2010 taxact Daycare providers, Childcare providers. 2010 taxact (see also Childcare providers) Food program payments to, Food program payments to daycare providers. 2010 taxact De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Death benefits, Proceeds not received in installments. 2010 taxact (see also Life insurance) Accelerated, Accelerated Death Benefits Debts Canceled, Canceled Debts Excluded debt, Excluded debt. 2010 taxact Nonrecourse debts, Mortgage relief upon sale or other disposition. 2010 taxact Recourse, Mortgage relief upon sale or other disposition. 2010 taxact Stockholder's, Stockholder debt. 2010 taxact Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. 2010 taxact Deferred compensation Nonqualified plans, Nonqualified deferred compensation plans. 2010 taxact , Nonqualified deferred compensation plans of nonqualified entities. 2010 taxact Dependent care benefits, Dependent Care Benefits Depletion allowance, Depletion. 2010 taxact Differential wage payments, Differential wage payments. 2010 taxact Armed forces, Differential wage payments. 2010 taxact Directors' fees, Corporate director. 2010 taxact Disability Military, Disability. 2010 taxact Pensions, Disability Pensions Workers' compensation, Disability pension. 2010 taxact Person with, Persons with disabilities. 2010 taxact Unemployment compensation, paid as substitute for, Types of unemployment compensation. 2010 taxact Disaster relief Disaster mitigation payments, Disaster mitigation payments. 2010 taxact Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. 2010 taxact Unemployment benefits, Unemployment Benefits Mitigation payments, Reminders Payments, Disaster relief payments. 2010 taxact Discounts Employee discounts, Employee Discounts Employee stock purchase plans, Option granted at a discount. 2010 taxact Mortgage loan for early payment, Discounted mortgage loan. 2010 taxact Dividends Restricted stock, Dividends received on restricted stock. 2010 taxact Divorced taxpayers Stock options exercised incident to divorce, Tax form. 2010 taxact Down payment assistance, Down payment assistance. 2010 taxact E Educational assistance Employer-provided, Educational Assistance Scholarships and fellowships, Scholarships and fellowships. 2010 taxact Educational institutions Faculty lodging, Faculty lodging. 2010 taxact Elderly persons Nutrition Program for the Elderly, Nutrition Program for the Elderly. 2010 taxact Tax Counseling for the Elderly, Volunteer tax counseling. 2010 taxact Election precinct officials, Election precinct official. 2010 taxact Elective deferrals, Elective Deferrals Catch-up contributions, Catch-up contributions. 2010 taxact , Catch-up contributions. 2010 taxact Excess annual additions, Excess Annual Additions Excess contributions, Excess Contributions Excess deferrals, Excess deferrals. 2010 taxact Increased limit for last 3 years prior to retirement age, Increased limit. 2010 taxact Limit on, Elective Deferrals Reporting by employer, Reporting by employer. 2010 taxact Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. 2010 taxact Emotional distress damages, Emotional distress. 2010 taxact Employee achievement awards, Employee achievement award. 2010 taxact Employee awards or bonuses, Employee awards or bonuses. 2010 taxact Employee compensation, Employee Compensation, Inherited property not substantially vested. 2010 taxact Fringe benefits, Fringe Benefits, Special valuation rules. 2010 taxact Restricted property, Restricted Property, Inherited property not substantially vested. 2010 taxact Retirement plan contributions, Retirement Plan Contributions Stock options, Stock Options, Statutory Stock Options Employee discounts, Employee Discounts Employee stock purchase plans, Statutory Stock Options, Employee stock purchase plan. 2010 taxact Employer, foreign, Foreign Employer Employer-owned life insurance, Employer-owned life insurance contract. 2010 taxact Employer-provided Educational assistance, Educational Assistance Vehicles, Employer-provided vehicles. 2010 taxact Employment Abroad, Employment abroad. 2010 taxact Agency fees, Employment agency fees. 2010 taxact Contracts Severance pay for cancellation of, Severance pay. 2010 taxact Endowment proceeds, Endowment Contract Proceeds Energy Assistance, Payments to reduce cost of winter energy. 2010 taxact Conservation Subsidies, Energy conservation subsidies. 2010 taxact Utility rebates, Utility rebates. 2010 taxact Estate income, Estate and trust income. 2010 taxact Estimated tax Unemployment compensation, Tax withholding. 2010 taxact Excess Annual additions, Excess Annual Additions Contributions, Excess Contributions Deferrals, Excess deferrals. 2010 taxact Expected inheritance, Expected inheritance. 2010 taxact Expenses paid by another, Expenses paid by another. 2010 taxact Exxon Valdez settlement, Exxon Valdez settlement income. 2010 taxact Eligible retirement plan, Contributions to eligible retirement plan. 2010 taxact Income averaging, Income averaging. 2010 taxact Legal expenses, Legal expenses. 2010 taxact Reporting requirement-statement, Statement. 2010 taxact F Faculty lodging, Faculty lodging. 2010 taxact Fair market value (FMV), Fair market value. 2010 taxact Stock options, Grant of option. 2010 taxact Farming Qualified farm debt, cancellation of, Excluded debt. 2010 taxact Federal employees Accrued leave payment, Accrued leave payment. 2010 taxact Cost-of-living allowances, Government cost-of-living allowances. 2010 taxact Disability pensions, Military and Government Disability Pensions Thrift Savings Plan for, Elective Deferrals Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). 2010 taxact Federal income tax Refunds, Federal income tax refund. 2010 taxact Fees for services, Fees for services. 2010 taxact Financial counseling fees, Financial Counseling Fees Fellowships, Scholarships and fellowships. 2010 taxact FICA withholding Foreign employers, U. 2010 taxact S. 2010 taxact citizens working for in U. 2010 taxact S. 2010 taxact , Social security and Medicare taxes. 2010 taxact Paid by employer, Social security and Medicare taxes paid by employer. 2010 taxact Fiduciaries Fees for services, Fees for services. 2010 taxact , Personal representatives. 2010 taxact Financial counseling fees, Financial Counseling Fees (see also Retirement planning services) Fitness programs Employer-provided, Athletic Facilities Flights Employer-provided aircraft, Flights on employer-provided aircraft. 2010 taxact No-additional-cost services, No-Additional-Cost Services Food benefits Daycare providers, food program payments to, Food program payments to daycare providers. 2010 taxact Nutrition Program for the Elderly, Nutrition Program for the Elderly. 2010 taxact Foreign Currency transactions, Foreign currency transactions. 2010 taxact Employment, Foreign Employer Governments, employees of, Employees of international organizations or foreign governments. 2010 taxact Income, Reminders Service, Service-connected disability. 2010 taxact Form 1040 Excess contributions to elective deferrals, Excess Contributions Recoveries, Where to report. 2010 taxact Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040 or 1040A, Schedule B Restricted stock dividends, Stock you chose to include in your income. 2010 taxact Form 1040, Schedule A Outplacement services, deduction for, Outplacement services. 2010 taxact Repayment of commissions paid in advance, Advance commissions and other earnings. 2010 taxact Form 1040, Schedule C Bartering, Bartering Childcare providers to use, Childcare providers. 2010 taxact Personal property rental, reporting income from, Reporting business income and expenses. 2010 taxact Royalties, Royalties Form 1040, Schedule C-EZ Bartering, Bartering Childcare Providers to use, Childcare providers. 2010 taxact Personal property rental, reporting income from, Reporting business income and expenses. 2010 taxact Royalties, Royalties Form 1040, Schedule D Stock options, Sale of the stock. 2010 taxact Stock options reported on, Statutory Stock Options Form 1040, Schedule E Partner's return, Partner's return. 2010 taxact Royalties, Royalties Form 1040A Recoveries, Where to report. 2010 taxact Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040EZ Recoveries, Where to report. 2010 taxact Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1041 Estates and trusts, Estate and trust income. 2010 taxact Form 1041, Schedule K-1 Beneficiary's share of income, deductions, credits, etc. 2010 taxact , Estate and trust income. 2010 taxact Form 1065 Partnership return, Partnership return. 2010 taxact Form 1065, Schedule K-1 Partner's share of income, Schedule K-1 (Form 1065). 2010 taxact , Partnership Income Form 1098 Mortgage interest statement, Mortgage interest refund. 2010 taxact Form 1099-B Barter exchange transactions, Form 1099-B from barter exchange. 2010 taxact , Backup withholding. 2010 taxact Form 1099-C Cancellation of debt, Form 1099-C. 2010 taxact Form 1099-DIV Restricted stock dividends, Stock you chose to include in your income. 2010 taxact Form 1099-G State tax refunds, State tax refund. 2010 taxact Unemployment compensation, Unemployment Benefits Form 1099-MISC Services totaling $600 or more, Fees for services. 2010 taxact Stock options exercised incident to divorce, Tax form. 2010 taxact Form 1099-R Charitable gift annuities, Charitable gift annuities. 2010 taxact Excess annual additions, Excess Annual Additions Excess deferral amounts, Excess distributed to you. 2010 taxact Surrender of life insurance policy for cash, Surrender of policy for cash. 2010 taxact Form 1120-POL Political organizations, Campaign contributions. 2010 taxact Form 1120S S corporation return, S corporation return. 2010 taxact Form 1120S, Schedule K-1 Shareholder's share of income, credits, deductions, etc. 2010 taxact , Schedule K-1 (Form 1120S). 2010 taxact Form 2441 Child and dependent care expenses, Dependent Care Benefits Form 4255 Recapture of investment credit, Amounts Recovered for Credits Form 6251 Alternative minimum tax, Alternative minimum tax (AMT). 2010 taxact Form 8839 Adoption assistance, Adoption Assistance Form 8853 Accelerated death benefits, Form 8853. 2010 taxact Archer MSAs and long-term care insurance contracts, Archer MSA contributions. 2010 taxact Form 8919 Uncollected social security and Medicare tax on wages, Employee Compensation Form RRB-1099 Railroad retirement board payments, Form RRB-1099. 2010 taxact Form SSA-1099 Social security benefit statement, Form SSA-1099. 2010 taxact Form W-2 501(c)(18)(D) contributions, Section 501(c)(18)(D) contributions. 2010 taxact Accrued leave payment at time of retirement or resignation, Accrued leave payment. 2010 taxact Back pay awards, Back pay awards. 2010 taxact Bonuses or awards, Bonuses and awards. 2010 taxact Elective deferrals, reporting by employer, Reporting by employer. 2010 taxact Failure to receive from employer, Employee Compensation Fringe benefits reported on, Form W-2. 2010 taxact Stock options from employers, Tax form. 2010 taxact Wage and tax statement, Employee Compensation Form W-2G Gambling winnings, Form W-2G. 2010 taxact Form W-4V Unemployment compensation, voluntary withholding request, Tax withholding. 2010 taxact Form W-9 Request for taxpayer identification number, Backup withholding. 2010 taxact Foster care, Foster care providers. 2010 taxact Foster Grandparent Program, National Senior Service Corps programs. 2010 taxact Found property, Found property. 2010 taxact Free tax services, Free help with your tax return. 2010 taxact Fringe benefits, Fringe Benefits, Special valuation rules. 2010 taxact Accident and health insurance, Accident or Health Plan Adoption, employer assistance, Adoption Assistance Athletic facilities, Athletic Facilities Commuter highway vehicles, Transportation De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Dependent care benefits, Dependent Care Benefits Educational assistance, Educational Assistance Employee discounts, Employee Discounts Faculty lodging, Faculty lodging. 2010 taxact Financial counseling fees, Financial Counseling Fees Holiday gifts, Holiday gifts. 2010 taxact Meals and lodging, Meals and Lodging Moving expenses (see Moving expenses) No-additional-cost services, No-Additional-Cost Services Parking, Transportation Retirement planning (see Retirement planning services) Transit pass, Transportation, Transit pass. 2010 taxact Tuition reduction, Tuition Reduction Valuation of, Valuation of Fringe Benefits, Special valuation rules. 2010 taxact Vehicle, Employer-provided vehicles. 2010 taxact Working condition benefits, Working Condition Benefits Frozen deposits Interest on, Interest on frozen deposits. 2010 taxact G Gambling winnings and losses, Gambling winnings. 2010 taxact Gas Royalties from, Oil, gas, and minerals. 2010 taxact Gifts, Gifts and inheritances. 2010 taxact Holiday gifts from employer, Holiday gifts. 2010 taxact Government employees (see Federal employees; State employees) Grantor trusts, Grantor trust. 2010 taxact Group-term life insurance Worksheets, Figuring the taxable cost. 2010 taxact , Worksheet 1. 2010 taxact Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Gulf oil spill, Reminders, Gulf oil spill. 2010 taxact H HAMP Home affordable modification program Pay-for-performance success payments, Home Affordable Modification Program (HAMP). 2010 taxact Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. 2010 taxact Health Flexible spending arrangement, Health flexible spending arrangement (health FSA). 2010 taxact Insurance, Accident or Health Plan Reimbursement arrangement, Health reimbursement arrangement (HRA). 2010 taxact Savings account, Health savings accounts (HSA). 2010 taxact Help (see Tax help) Highly compensated employees Excess contributions to elective deferrals, Excess Contributions Historic preservation grants, Historic preservation grants. 2010 taxact Hobby losses, Hobby losses. 2010 taxact Holding period requirement, Holding period requirement. 2010 taxact Holiday gifts, Holiday gifts. 2010 taxact Holocaust victims restitution, Holocaust victims restitution. 2010 taxact Home, sale of, Sale of home. 2010 taxact Host or hostess, Host or Hostess Hotels No-additional-cost services, No-Additional-Cost Services Housing (see Lodging) I Illegal activities, Illegal activities. 2010 taxact Incentive stock options (ISOs), Statutory Stock Options, Incentive stock options (ISOs). 2010 taxact Income Assigned, Assignment of income. 2010 taxact Business and investment, Business and Investment Income, More information. 2010 taxact Constructive receipt of, Constructively received income. 2010 taxact Estate and trust, Estate and trust income. 2010 taxact Foreign employers, Foreign Employer Illegal, Illegal activities. 2010 taxact Miscellaneous, Miscellaneous Income Other, Other Income Partnership, Partnership Income Prepaid, Prepaid income. 2010 taxact S corporation, S Corporation Income Indian fishing rights, Indian fishing rights. 2010 taxact Indian money account, Indian money account litigation settlement. 2010 taxact Individual retirement arrangements (IRAs) Deduction, Benefits may affect your IRA deduction. 2010 taxact Inherited IRA, Inherited pension or IRA. 2010 taxact Inheritance, Gifts and inheritances. 2010 taxact IRA, Inherited pension or IRA. 2010 taxact Property not substantially vested, Inherited property not substantially vested. 2010 taxact Injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. 2010 taxact Insurance Credit card, Credit card insurance. 2010 taxact Health, Accident or Health Plan Life (see Life insurance) Long-term care (see Long-term care insurance) Interest Canceled debt including, Interest included in canceled debt. 2010 taxact Frozen deposits, Interest on frozen deposits. 2010 taxact Mortgage refunds, Mortgage interest refund. 2010 taxact Option on insurance, Interest option on insurance. 2010 taxact Recovery amounts, Interest on recovery. 2010 taxact Savings bond, Interest on qualified savings bonds. 2010 taxact State and local government obligations, Interest on state and local government obligations. 2010 taxact Interference with business operations Damages as income, Court awards and damages. 2010 taxact International organizations, employees of, Foreign Employer Interview expenses, Job interview expenses. 2010 taxact Investment counseling fees, Financial Counseling Fees (see also Retirement planning services) Investment income, Business and Investment Income, More information. 2010 taxact IRAs (see Individual retirement arrangements (IRAs)) Iron ore, Coal and iron ore. 2010 taxact Itemized deductions Limited, Itemized deductions limited. 2010 taxact Recoveries, Recoveries, Itemized Deduction Recoveries J Job interview expenses, Job interview expenses. 2010 taxact Joint returns Social security benefits or railroad retirement payments, Joint return. 2010 taxact Joint state/local tax return Recoveries, Joint state or local income tax return. 2010 taxact Jury duty pay, Jury duty. 2010 taxact K Kickbacks, Kickbacks. 2010 taxact L Labor unions Convention expenses, reimbursed, Reimbursed union convention expenses. 2010 taxact Dues, Union benefits and dues. 2010 taxact Strike and lockout benefits, Strike and lockout benefits. 2010 taxact Unemployment benefits paid from, Payments by a union. 2010 taxact Last day of tax year, income received on, Constructively received income. 2010 taxact Leave (see Accrued leave payment) Length-of-service awards, Employee achievement award. 2010 taxact Life insurance Employer-owned, Employer-owned life insurance contract. 2010 taxact Proceeds, Life Insurance Proceeds Surrender of policy for cash, Surrender of policy for cash. 2010 taxact Loans, Discounted mortgage loan. 2010 taxact (see also Mortgage) Below-market, Below-market loans. 2010 taxact Student, Student loans. 2010 taxact Lockout benefits, Strike and lockout benefits. 2010 taxact Lodging Campus lodging, Qualified campus lodging. 2010 taxact , Moving Expense Reimbursements Clergy, Housing Employer-paid or reimbursed, Meals and Lodging Faculty lodging, Faculty lodging. 2010 taxact Replacement housing payments, Replacement housing payments. 2010 taxact Long-term care insurance, Long-term care coverage. 2010 taxact , Long-Term Care Insurance Contracts Lotteries and raffles, Lotteries and raffles. 2010 taxact Lump-sum distributions Survivor benefits, Lump-sum payments. 2010 taxact M Manufacturer incentive payments, Manufacturer incentive payments. 2010 taxact Meals Employer-paid or reimbursed, Meals and Lodging Nutrition Program for the Elderly, Nutrition Program for the Elderly. 2010 taxact Medical Care reimbursements, Reimbursement for medical care. 2010 taxact Savings accounts, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 2010 taxact Medicare Advantage MSAs, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 2010 taxact Benefits, Medicare. 2010 taxact Tax paid by employer, Social security and Medicare taxes paid by employer. 2010 taxact Medicare tax (see Social security and Medicare taxes) Military (see Armed forces) Minerals Royalties from, Oil, gas, and minerals. 2010 taxact Miscellaneous Compensation, Miscellaneous Compensation Income, Miscellaneous Income Missing children, photographs of, Reminders Mortgage Assistance payment (under sec. 2010 taxact 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. 2010 taxact Discounted loan, Discounted mortgage loan. 2010 taxact Interest refund, Mortgage interest refund. 2010 taxact Qualified principal residence indebtedness, Qualified principal residence indebtedness (QPRI). 2010 taxact Relief, Mortgage relief upon sale or other disposition. 2010 taxact Motor vehicle, employer-provided, Employer-provided vehicles. 2010 taxact Moving expenses Reimbursements, Allowances and reimbursements. 2010 taxact , Moving expense reimbursements. 2010 taxact MSAs (Medical savings accounts), Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 2010 taxact N National Health Service Corps Scholarship Program, Tuition Reduction National Oceanic and Atmospheric Administration, Service-connected disability. 2010 taxact National Senior Service Corps, National Senior Service Corps programs. 2010 taxact No-additional-cost services, No-Additional-Cost Services No-fault car insurance Disability benefits under, Other compensation. 2010 taxact Nobel prize, Pulitzer, Nobel, and similar prizes. 2010 taxact Nonrecourse debt, Mortgage relief upon sale or other disposition. 2010 taxact Nonstatutory stock options, Nonstatutory Stock Options Nontaxable income, Introduction Not-for-profit activities, Activity not for profit. 2010 taxact Notary fees, Notary public. 2010 taxact Notes received for services, Note received for services. 2010 taxact Nutrition Program for the Elderly, Nutrition Program for the Elderly. 2010 taxact O Oil Royalties from, Oil, gas, and minerals. 2010 taxact Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). 2010 taxact Options, stock, Stock Options, Statutory Stock Options Outplacement services, Outplacement services. 2010 taxact Overseas work, Reminders P Parking fees Employer-paid or reimbursed, Transportation, Qualified parking. 2010 taxact Partner and partnership income, Partnership Income Patents Infringement damages, Court awards and damages. 2010 taxact Royalties, Copyrights and patents. 2010 taxact Peace Corps, Peace Corps. 2010 taxact Pensions Clergy, Pension. 2010 taxact Disability pensions, Disability Pensions Inherited pensions, Inherited pension or IRA. 2010 taxact Military, Military retirement pay. 2010 taxact Personal property Rental income and expense, Rents From Personal Property Sale of, Sale of personal items. 2010 taxact Personal representatives (see Fiduciaries) Prepaid income, Prepaid income. 2010 taxact Price reduced after purchase, Price reduced after purchase. 2010 taxact Prizes and awards, Bonuses and awards. 2010 taxact , Prizes and awards. 2010 taxact Achievement awards, Employee achievement award. 2010 taxact Employee awards or bonuses, Employee awards or bonuses. 2010 taxact Length-of-service awards, Employee achievement award. 2010 taxact Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes. 2010 taxact Safety achievement, Employee achievement award. 2010 taxact Scholarship prizes, Prizes. 2010 taxact Profit-sharing plan, Retirement and profit-sharing plans. 2010 taxact Public assistance benefits, Welfare and Other Public Assistance Benefits Public Health Service, Service-connected disability. 2010 taxact Public safety officers killed in line of duty, Public safety officer killed in the line of duty. 2010 taxact Public transportation passes, employer-provided, Transportation, Transit pass. 2010 taxact Publications (see Tax help) Pulitzer prize, Pulitzer, Nobel, and similar prizes. 2010 taxact Punitive damages, Court awards and damages. 2010 taxact Q Qualified joint venture, Reminders Qualified tuition program (QTP), Qualified tuition program (QTP). 2010 taxact R Raffles, Lotteries and raffles. 2010 taxact Railroad Retirement annuities, Railroad retirement annuities. 2010 taxact Retirement benefits, Social security and equivalent railroad retirement benefits. 2010 taxact Sick pay, Railroad sick pay. 2010 taxact Unemployment compensation benefits, Types of unemployment compensation. 2010 taxact Real estate Qualified real property business debt, cancellation of, Excluded debt. 2010 taxact Rebates Cash, Cash rebates. 2010 taxact Utility, Utility rebates. 2010 taxact Recovery of amounts previously deducted, Recoveries, Standard deduction for earlier years. 2010 taxact Itemized deductions, Recoveries, Itemized Deduction Recoveries Non-itemized deductions, Non-Itemized Deduction Recoveries Unused tax credits, refiguring of, Unused tax credits. 2010 taxact , Unused tax credits. 2010 taxact Refunds Federal income tax, Federal income tax refund. 2010 taxact Mortgage interest, Mortgage interest refund. 2010 taxact State tax, State tax refund. 2010 taxact Rehabilitative program payments, Veterans' benefits. 2010 taxact Reimbursements Business expenses, Allowances and reimbursements. 2010 taxact Casualty losses, Casualty insurance and other reimbursements. 2010 taxact Meals and lodging, Meals and Lodging Medical expenses, Reimbursement for medical care. 2010 taxact Moving expenses, Allowances and reimbursements. 2010 taxact , Moving expense reimbursements. 2010 taxact Related party transactions Stock option transfer, Transfer in non-arm's-length transaction. 2010 taxact Religious order members, Members of Religious Orders Rental income and expenses Personal property rental, Rents From Personal Property Reporting of, Reporting business income and expenses. 2010 taxact Repayments, Repayments, Year of deduction (or credit). 2010 taxact Repossession, Canceled sales contract. 2010 taxact Restricted property, Restricted Property, Inherited property not substantially vested. 2010 taxact Retired Senior Volunteer Program (RSVP), National Senior Service Corps programs. 2010 taxact Retirement Settlement, Reminders Retirement planning services, Financial Counseling Fees, Retirement Planning Services Retirement plans, Military retirement pay. 2010 taxact (see also Pensions) Automatic contribution arrangements, Qualified automatic contribution arrangements. 2010 taxact Contributions, Retirement Plan Contributions, Excess Annual Additions, Statutory Stock Options Elective deferrals (see Elective deferrals) Rewards, Rewards. 2010 taxact Roth contributions, Designated Roth contributions. 2010 taxact Royalties, Royalties S S corporations, S Corporation Income Safety achievement awards, Employee achievement award. 2010 taxact Salary reduction simplified employee pension plans (see SARSEPs) Sale of home, Sale of home. 2010 taxact Sales contracts Cancellation of, Canceled sales contract. 2010 taxact SARSEPs, Elective Deferrals Excess contributions, Excess Contributions Savings bonds, Interest on qualified savings bonds. 2010 taxact Savings incentive match plans for employees (see SIMPLE plans) Scholarships and fellowships, Scholarships and fellowships. 2010 taxact Self-employed persons U. 2010 taxact S. 2010 taxact citizens working for foreign employers in U. 2010 taxact S. 2010 taxact treated as, Social security and Medicare taxes. 2010 taxact Senior Companion Program, National Senior Service Corps programs. 2010 taxact Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE). 2010 taxact Severance pay, Severance pay. 2010 taxact Outplacement services, Outplacement services. 2010 taxact Sick pay, Sick pay. 2010 taxact Sickness and injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. 2010 taxact SIMPLE plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under SIMPLE plans. 2010 taxact Smallpox vaccine injuries, Smallpox vaccine injuries. 2010 taxact Social security and Medicare taxes Foreign employers, U. 2010 taxact S. 2010 taxact citizens working for in U. 2010 taxact S. 2010 taxact , Social security and Medicare taxes. 2010 taxact Paid by employer, Social security and Medicare taxes paid by employer. 2010 taxact Social security benefits, Social security and equivalent railroad retirement benefits. 2010 taxact Standard deduction Recoveries, Standard deduction limit. 2010 taxact , Standard deduction for earlier years. 2010 taxact State employees Unemployment benefits paid to, State employees. 2010 taxact State or local governments Interest on obligations of, Interest on state and local government obligations. 2010 taxact State or local taxes Refunds, State tax refund. 2010 taxact Statutory stock option holding period, Sale of the stock. 2010 taxact Stock appreciation rights, Stock appreciation rights. 2010 taxact Stock options, Stock Options, Statutory Stock Options Stock options, nonstatutory Exercise or transfer, Exercise or transfer of option. 2010 taxact Grant, Grant of option. 2010 taxact Sale, Sale of the stock. 2010 taxact Stock options, statutory Exercise, Exercise of option. 2010 taxact Grant, Grant of option. 2010 taxact Sale, Sale of the stock. 2010 taxact Stockholder debts, Stockholder debt. 2010 taxact Stolen property, Stolen property. 2010 taxact Strike benefits, Strike and lockout benefits. 2010 taxact Student loans Cancellation of debt, Student loans. 2010 taxact Substantial risk of forfeiture, Substantial risk of forfeiture. 2010 taxact Substantially vested property, Substantially vested. 2010 taxact Supplemental security income (SSI) payments, Social security and equivalent railroad retirement benefits. 2010 taxact Supplemental unemployment benefits, Supplemental unemployment benefits. 2010 taxact Surviving spouse Life insurance proceeds paid to, Surviving spouse. 2010 taxact Survivor benefits, Survivor Benefits T Tables and figures Group-term life insurance (Table 1), Group-Term Life Insurance Tax benefit rule, Tax benefit rule. 2010 taxact Tax Counseling for the Elderly, Volunteer tax counseling. 2010 taxact Tax help, How To Get Tax Help Tax-sheltered annuity plans (403(b) plans), Elective Deferrals Limit for, Limit for tax-sheltered annuities. 2010 taxact Terminal illness, Exclusion for terminal illness. 2010 taxact Terrorist attacks Disability payments for injuries from, Terrorist attack or military action. 2010 taxact Victims of, tax relief, Reminders Thrift Savings Plan, Elective Deferrals Title VII, Civil Rights Act of 1964 Back pay and damages for emotional distress under, Court awards and damages. 2010 taxact Tour guides, free tours for, Free tour. 2010 taxact Trade Act of 1974 Trade readjustment allowances under, Types of unemployment compensation. 2010 taxact , Repayment of benefits. 2010 taxact Transferable property, Transferable property. 2010 taxact Transit passes, Transportation, Transit pass. 2010 taxact Travel agencies Free tour to organizer of group of tourists, Free tour. 2010 taxact Travel and transportation expenses Free tours from travel agencies, Free tour. 2010 taxact Fringe benefits, Transportation Reimbursements, Allowances and reimbursements. 2010 taxact School children, transporting of, Transporting school children. 2010 taxact Trusts Grantor trusts, Grantor trust. 2010 taxact Income, Estate and trust income. 2010 taxact Tuition program, qualified (QTP), Qualified tuition program (QTP). 2010 taxact Tuition reduction, Tuition Reduction U Unemployment compensation, Unemployment Benefits Unions (see Labor unions) Unlawful discrimination suits Deduction for costs, Deduction for costs involved in unlawful discrimination suits. 2010 taxact V VA payments, VA payments. 2010 taxact Valuation Fringe benefits, Valuation of Fringe Benefits, Special valuation rules. 2010 taxact Stock options, Nonstatutory Stock Options Vehicle Commuter highway, Commuter highway vehicle. 2010 taxact Employer-provided, Employer-provided vehicles. 2010 taxact Veterans benefits, Veterans' benefits. 2010 taxact Disability compensation, Retroactive VA determination. 2010 taxact Retroactive VA determination, Retroactive VA determination. 2010 taxact Special statute of limitations. 2010 taxact , Special statute of limitations. 2010 taxact Viatical settlements, Viatical settlement. 2010 taxact Volunteer work, Volunteers Tax counseling (Volunteer Income Tax Assistance Program), Volunteer tax counseling. 2010 taxact Volunteers in Service to America (VISTA), Volunteers in Service to America (VISTA). 2010 taxact W W-2 form (see Form W-2) Welfare benefits, Welfare and Other Public Assistance Benefits Whistleblower, Whistleblower's award. 2010 taxact Winter energy payments, Payments to reduce cost of winter energy. 2010 taxact Withholding Barter exchange transactions, Backup withholding. 2010 taxact Unemployment compensation, Tax withholding. 2010 taxact Work-training programs, Work-training program. 2010 taxact Workers' compensation, Workers' Compensation Working condition benefits, Working Condition Benefits Worksheets Group-term life insurance (Worksheet 1), Figuring the taxable cost. 2010 taxact , Worksheet 1. 2010 taxact Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Prev  Up     Home   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The 2010 Taxact

2010 taxact 2. 2010 taxact   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. 2010 taxact Surviving spouse. 2010 taxact Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. 2010 taxact Payments from a state fund for victims of crime. 2010 taxact Home Affordable Modification Program (HAMP). 2010 taxact Mortgage assistance payments. 2010 taxact Payments to reduce cost of winter energy use. 2010 taxact Nutrition Program for the Elderly. 2010 taxact Reemployment Trade Adjustment Assistance (RTAA). 2010 taxact Generally, income is taxable unless it is specifically exempt (not taxed) by law. 2010 taxact Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. 2010 taxact Under special provisions of the law, certain items are partially or fully exempt from tax. 2010 taxact Provisions that are of special interest to older taxpayers are discussed in this chapter. 2010 taxact Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. 2010 taxact In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. 2010 taxact You need not receive the compensation in cash for it to be taxable. 2010 taxact Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. 2010 taxact Volunteer work. 2010 taxact   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. 2010 taxact Retired Senior Volunteer Program (RSVP). 2010 taxact Foster Grandparent Program. 2010 taxact Senior Companion Program. 2010 taxact Service Corps of Retired Executives (SCORE). 2010 taxact Unemployment compensation. 2010 taxact   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. 2010 taxact More information. 2010 taxact   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. 2010 taxact Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. 2010 taxact A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. 2010 taxact A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. 2010 taxact A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. 2010 taxact More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. 2010 taxact Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. 2010 taxact Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. 2010 taxact These are discussed in Publication 590. 2010 taxact If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. 2010 taxact If you do not file Form 8606 with your return, you may have to pay a $50 penalty. 2010 taxact Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 2010 taxact Early distributions. 2010 taxact   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. 2010 taxact You must include early distributions of taxable amounts in your gross income. 2010 taxact These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. 2010 taxact For purposes of the additional 10% tax, an IRA is a qualified retirement plan. 2010 taxact For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. 2010 taxact After age 59½ and before age 70½. 2010 taxact   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. 2010 taxact Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. 2010 taxact Required distributions. 2010 taxact   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. 2010 taxact See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. 2010 taxact If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. 2010 taxact For purposes of the 50% excise tax, an IRA is a qualified retirement plan. 2010 taxact For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. 2010 taxact See also Excess Accumulations (Insufficient Distributions) in Publication 590. 2010 taxact Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. 2010 taxact However, see Insurance Premiums for Retired Public Safety Officers , later. 2010 taxact If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). 2010 taxact This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. 2010 taxact The rest of each payment is taxable. 2010 taxact However, see Insurance Premiums for Retired Public Safety Officers , later. 2010 taxact You figure the tax-free part of the payment using one of the following methods. 2010 taxact Simplified Method. 2010 taxact You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). 2010 taxact You cannot use this method if your annuity is paid under a nonqualified plan. 2010 taxact General Rule. 2010 taxact You must use this method if your annuity is paid under a nonqualified plan. 2010 taxact You generally cannot use this method if your annuity is paid under a qualified plan. 2010 taxact Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. 2010 taxact You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. 2010 taxact Exclusion limit. 2010 taxact   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. 2010 taxact Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. 2010 taxact This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. 2010 taxact   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. 2010 taxact If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. 2010 taxact The total exclusion may be more than your cost. 2010 taxact Cost. 2010 taxact   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). 2010 taxact Your total cost in the plan includes everything that you paid. 2010 taxact It also includes amounts your employer contributed that were taxable to you when paid. 2010 taxact However, see Foreign employment contributions , later. 2010 taxact   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. 2010 taxact   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. 2010 taxact    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2010 taxact , that you receive. 2010 taxact Foreign employment contributions. 2010 taxact   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. 2010 taxact For details, see Foreign employment contributions in Publication 575. 2010 taxact Withholding. 2010 taxact   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. 2010 taxact However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. 2010 taxact (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. 2010 taxact ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. 2010 taxact   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. 2010 taxact Simplified Method. 2010 taxact   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. 2010 taxact For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. 2010 taxact For any other annuity, this number is the number of monthly annuity payments under the contract. 2010 taxact Who must use the Simplified Method. 2010 taxact   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). 2010 taxact   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. 2010 taxact If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. 2010 taxact Guaranteed payments. 2010 taxact   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. 2010 taxact If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. 2010 taxact Who cannot use the Simplified Method. 2010 taxact   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). 2010 taxact   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. 2010 taxact If you did not have to use the General Rule, you could have chosen to use it. 2010 taxact You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. 2010 taxact   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. 2010 taxact   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. 2010 taxact Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. 2010 taxact   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. 2010 taxact How to use the Simplified Method. 2010 taxact   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. 2010 taxact Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. 2010 taxact   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. 2010 taxact How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. 2010 taxact For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. 2010 taxact    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. 2010 taxact Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. 2010 taxact Single-life annuity. 2010 taxact   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010 taxact Enter on line 3 the number shown for your age on your annuity starting date. 2010 taxact This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2010 taxact Multiple-lives annuity. 2010 taxact   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010 taxact Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. 2010 taxact For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. 2010 taxact For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. 2010 taxact Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. 2010 taxact   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. 2010 taxact Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. 2010 taxact This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2010 taxact Fixed-period annuities. 2010 taxact   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. 2010 taxact Line 6. 2010 taxact   The amount on line 6 should include all amounts that could have been recovered in prior years. 2010 taxact If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. 2010 taxact    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. 2010 taxact Example. 2010 taxact Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. 2010 taxact Bill's annuity starting date is January 1, 2013. 2010 taxact The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. 2010 taxact Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. 2010 taxact Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. 2010 taxact Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. 2010 taxact See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. 2010 taxact You can find a blank version of this worksheet in Publication 575. 2010 taxact (The references in the illustrated worksheet are to sections in Publication 575). 2010 taxact His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. 2010 taxact Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). 2010 taxact Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. 2010 taxact The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. 2010 taxact If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. 2010 taxact This deduction is not subject to the 2%-of-adjusted-gross-income limit. 2010 taxact Worksheet 2-A. 2010 taxact Simplified Method Worksheet—Illustrated 1. 2010 taxact Enter the total pension or annuity payments received this year. 2010 taxact Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 2010 taxact $ 14,400 2. 2010 taxact Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. 2010 taxact 31,000   Note. 2010 taxact If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 2010 taxact Otherwise, go to line 3. 2010 taxact     3. 2010 taxact Enter the appropriate number from Table 1 below. 2010 taxact But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. 2010 taxact 310 4. 2010 taxact Divide line 2 by the number on line 3 4. 2010 taxact 100 5. 2010 taxact Multiply line 4 by the number of months for which this year's payments were made. 2010 taxact If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2010 taxact Otherwise, go to line 6 5. 2010 taxact 1,200 6. 2010 taxact Enter any amount previously recovered tax free in years after 1986. 2010 taxact This is the amount shown on line 10 of your worksheet for last year 6. 2010 taxact 0 7. 2010 taxact Subtract line 6 from line 2 7. 2010 taxact 31,000 8. 2010 taxact Enter the smaller of line 5 or line 7 8. 2010 taxact 1,200 9. 2010 taxact Taxable amount for year. 2010 taxact Subtract line 8 from line 1. 2010 taxact Enter the result, but not less than zero. 2010 taxact Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2010 taxact Note. 2010 taxact If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 2010 taxact If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. 2010 taxact 9. 2010 taxact $ 13,200 10. 2010 taxact Was your annuity starting date before 1987? □ Yes. 2010 taxact STOP. 2010 taxact Do not complete the rest of this worksheet. 2010 taxact  ☑ No. 2010 taxact Add lines 6 and 8. 2010 taxact This is the amount you have recovered tax free through 2013. 2010 taxact You will need this number if you need to fill out this worksheet next year. 2010 taxact 10. 2010 taxact 1,200 11. 2010 taxact Balance of cost to be recovered. 2010 taxact Subtract line 10 from line 2. 2010 taxact If zero, you will not have to complete this worksheet next year. 2010 taxact The payments you receive next year will generally be fully taxable 11. 2010 taxact $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 2010 taxact   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . 2010 taxact . 2010 taxact . 2010 taxact   BEFORE November 19, 1996, enter on line 3 . 2010 taxact . 2010 taxact . 2010 taxact AFTER November 18, 1996, enter on line 3 . 2010 taxact . 2010 taxact . 2010 taxact   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . 2010 taxact . 2010 taxact . 2010 taxact   THEN enter on line 3 . 2010 taxact . 2010 taxact . 2010 taxact         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. 2010 taxact   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. 2010 taxact   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. 2010 taxact The retiree's cost has already been recovered tax free. 2010 taxact   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. 2010 taxact The resulting tax-free amount will then remain fixed. 2010 taxact Any increases in the survivor annuity are fully taxable. 2010 taxact   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. 2010 taxact See Simplified Method , earlier. 2010 taxact How to report. 2010 taxact   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. 2010 taxact If your pension or annuity is fully taxable, enter it on line 16b. 2010 taxact Do not make an entry on line 16a. 2010 taxact   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. 2010 taxact If your pension or annuity is fully taxable, enter it on line 12b. 2010 taxact Do not make an entry on line 12a. 2010 taxact   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. 2010 taxact If your pension or annuity is fully taxable, enter it on line 17b. 2010 taxact Do not make an entry on line 17a. 2010 taxact Example. 2010 taxact You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. 2010 taxact You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). 2010 taxact The entire $1,200 is taxable. 2010 taxact You include $1,200 only on Form 1040, line 16b. 2010 taxact Joint return. 2010 taxact   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. 2010 taxact Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. 2010 taxact Form 1099-R. 2010 taxact   You should receive a Form 1099-R for your pension or annuity. 2010 taxact Form 1099-R shows your pension or annuity for the year and any income tax withheld. 2010 taxact You should receive a Form W-2 if you receive distributions from certain nonqualified plans. 2010 taxact You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. 2010 taxact Generally, you should be sent these forms by January 31, 2014. 2010 taxact Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. 2010 taxact Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. 2010 taxact For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. 2010 taxact The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. 2010 taxact See Tax on Early Distributions, later. 2010 taxact Lump-sum distributions. 2010 taxact   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. 2010 taxact The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. 2010 taxact The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. 2010 taxact You may be able to use the 10-year tax option to figure tax on the ordinary income part. 2010 taxact Form 1099-R. 2010 taxact   If you receive a total distribution from a plan, you should receive a Form 1099-R. 2010 taxact If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. 2010 taxact The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. 2010 taxact More information. 2010 taxact   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. 2010 taxact Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. 2010 taxact The tax applies to the taxable part of the distribution. 2010 taxact For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). 2010 taxact  An IRA is also a qualified retirement plan for purposes of this tax. 2010 taxact General exceptions to tax. 2010 taxact   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. 2010 taxact Additional exceptions. 2010 taxact   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. 2010 taxact See Publication 575 for details. 2010 taxact Reporting tax. 2010 taxact   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. 2010 taxact 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. 2010 taxact See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. 2010 taxact Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. 2010 taxact Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. 2010 taxact However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. 2010 taxact For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). 2010 taxact  An IRA is also a qualified retirement plan for purposes of this tax. 2010 taxact An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. 2010 taxact 5% owners. 2010 taxact   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. 2010 taxact See Publication 575 for more information. 2010 taxact Amount of tax. 2010 taxact   If you do not receive the required minimum distribution, you are subject to an additional tax. 2010 taxact The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. 2010 taxact You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. 2010 taxact Form 5329. 2010 taxact   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. 2010 taxact Additional information. 2010 taxact   For more detailed information on the tax on excess accumulation, see Publication 575. 2010 taxact Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. 2010 taxact The premiums can be for coverage for you, your spouse, or dependent(s). 2010 taxact The distribution must be made directly from the plan to the insurance provider. 2010 taxact You can exclude from income the smaller of the amount of the insurance premiums or $3,000. 2010 taxact You can only make this election for amounts that would otherwise be included in your income. 2010 taxact The amount excluded from your income cannot be used to claim a medical expense deduction. 2010 taxact An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. 2010 taxact If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. 2010 taxact The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. 2010 taxact Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 2010 taxact Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2010 taxact Enter “PSO” next to the appropriate line on which you report the taxable amount. 2010 taxact Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. 2010 taxact These categories are treated differently for income tax purposes. 2010 taxact Social security equivalent benefits. 2010 taxact   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. 2010 taxact This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. 2010 taxact (See Social Security and Equivalent Railroad Retirement Benefits , later. 2010 taxact ) Non-social security equivalent benefits. 2010 taxact   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). 2010 taxact It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. 2010 taxact This category of benefits is treated as an amount received from a qualified employee plan. 2010 taxact This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. 2010 taxact Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. 2010 taxact More information. 2010 taxact   For more information about railroad retirement benefits, see Publication 575. 2010 taxact Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. 2010 taxact But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. 2010 taxact For more information, including information about veterans' benefits and insurance, see Publication 525. 2010 taxact Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. 2010 taxact Social security benefits include monthly retirement, survivor, and disability benefits. 2010 taxact They do not include supplemental security income (SSI) payments, which are not taxable. 2010 taxact Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. 2010 taxact They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. 2010 taxact If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. 2010 taxact Are Any of Your Benefits Taxable? Note. 2010 taxact When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. 2010 taxact  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. 2010 taxact When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. 2010 taxact S. 2010 taxact savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. 2010 taxact Figuring total income. 2010 taxact   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. 2010 taxact If that total amount is more than your base amount, part of your benefits may be taxable. 2010 taxact If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. 2010 taxact Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. 2010 taxact If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. 2010 taxact If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. 2010 taxact Worksheet 2-B. 2010 taxact A Quick Way To Check if Your Benefits May Be Taxable A. 2010 taxact Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2010 taxact Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. 2010 taxact (If you received more than one form, combine the amounts from box 5  and enter the total. 2010 taxact ) A. 2010 taxact     Note. 2010 taxact If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. 2010 taxact     B. 2010 taxact Enter one-half of the amount on line A B. 2010 taxact   C. 2010 taxact Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2010 taxact   D. 2010 taxact Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. 2010 taxact S. 2010 taxact savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. 2010 taxact   E. 2010 taxact Add lines B, C, and D and enter the total E. 2010 taxact   F. 2010 taxact If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. 2010 taxact   G. 2010 taxact Is the amount on line F less than or equal to the amount on line E? □ No. 2010 taxact None of your benefits are taxable this year. 2010 taxact  □ Yes. 2010 taxact Some of your benefits may be taxable. 2010 taxact To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. 2010 taxact     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. 2010 taxact Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. 2010 taxact It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. 2010 taxact If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. 2010 taxact Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. 2010 taxact Your repayments are shown in box 4. 2010 taxact The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). 2010 taxact Use the amount in box 5 to figure whether any of your benefits are taxable. 2010 taxact Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. 2010 taxact If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. 2010 taxact If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. 2010 taxact For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. 2010 taxact How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. 2010 taxact Generally, the higher that total amount, the greater the taxable part of your benefits. 2010 taxact Maximum taxable part. 2010 taxact   The taxable part of your benefits usually cannot be more than 50%. 2010 taxact However, up to 85% of your benefits can be taxable if either of the following situations applies to you. 2010 taxact The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). 2010 taxact You are married filing separately and lived with your spouse at any time during 2013. 2010 taxact   If you are a nonresident alien, 85% of your benefits are taxable. 2010 taxact However, this income is exempt under some tax treaties. 2010 taxact Which worksheet to use. 2010 taxact   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. 2010 taxact However, you will need to use a different worksheet(s) if any of the following situations applies to you. 2010 taxact You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. 2010 taxact In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. 2010 taxact Situation (1) does not apply and you take one or more of the following exclusions. 2010 taxact Interest from qualified U. 2010 taxact S. 2010 taxact savings bonds (Form 8815). 2010 taxact Employer-provided adoption benefits (Form 8839). 2010 taxact Foreign earned income or housing (Form 2555 or Form 2555-EZ). 2010 taxact Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. 2010 taxact In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. 2010 taxact You received a lump-sum payment for an earlier year. 2010 taxact In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. 2010 taxact See Lump-Sum Election , later. 2010 taxact How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. 2010 taxact You cannot use Form 1040EZ. 2010 taxact Reporting on Form 1040. 2010 taxact   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. 2010 taxact If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. 2010 taxact Reporting on Form 1040A. 2010 taxact   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. 2010 taxact If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. 2010 taxact Reporting on Form 1040NR. 2010 taxact   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. 2010 taxact Benefits not taxable. 2010 taxact   If you are filing Form 1040EZ, do not report any benefits on your tax return. 2010 taxact If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. 2010 taxact Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2010 taxact If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. 2010 taxact Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. 2010 taxact This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. 2010 taxact No part of the lump-sum death benefit is subject to tax. 2010 taxact For more information about the lump-sum death benefit, visit the Social Security Administration website at www. 2010 taxact SSA. 2010 taxact gov, and use keyword: death benefit. 2010 taxact Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. 2010 taxact However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. 2010 taxact You can elect this method if it lowers your taxable benefits. 2010 taxact See Publication 915 for more information. 2010 taxact Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. 2010 taxact If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. 2010 taxact If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. 2010 taxact If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. 2010 taxact S. 2010 taxact Railroad Retirement Board field office. 2010 taxact Joint return. 2010 taxact   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. 2010 taxact You do this to get your net benefits when figuring if your combined benefits are taxable. 2010 taxact Repayment of benefits received in an earlier year. 2010 taxact   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. 2010 taxact   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. 2010 taxact Claim it on Schedule A (Form 1040), line 23. 2010 taxact   If this deduction is more than $3,000, you have to follow some special instructions. 2010 taxact See Publication 915 for those instructions. 2010 taxact Sickness and Injury Benefits Generally, 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 taxact 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 taxact However, certain payments may not be taxable to you. 2010 taxact Some of these payments are discussed later in this section. 2010 taxact Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. 2010 taxact Cost paid by you. 2010 taxact   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. 2010 taxact 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 taxact 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 taxact You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. 2010 taxact Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 2010 taxact If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. 2010 taxact See Credit for the Elderly or the Disabled, later. 2010 taxact For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. 2010 taxact Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 2010 taxact Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. 2010 taxact For more information on pensions and annuities, see Publication 575. 2010 taxact Retirement and profit-sharing plans. 2010 taxact   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 taxact The payments must be reported as a pension or annuity. 2010 taxact Accrued leave payment. 2010 taxact   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 2010 taxact The payment is not a disability payment. 2010 taxact Include it in your income in the tax year you receive it. 2010 taxact Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. 2010 taxact Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. 2010 taxact However, the amount you can exclude may be limited. 2010 taxact Long-term care insurance contracts are discussed in more detail in Publication 525. 2010 taxact 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 taxact The exemption also applies to your survivors. 2010 taxact 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 taxact If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2010 taxact For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 2010 taxact Return to work. 2010 taxact   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. 2010 taxact Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. 2010 taxact Federal Employees' Compensation Act (FECA). 2010 taxact   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. 2010 taxact 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 taxact Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. 2010 taxact Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. 2010 taxact    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2010 taxact For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 2010 taxact Other compensation. 2010 taxact   Many other amounts you receive as compensation for sickness or injury are not taxable. 2010 taxact These include the following amounts. 2010 taxact 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 taxact Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. 2010 taxact Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). 2010 taxact This compensation must be based only on the injury and not on the period of your absence from work. 2010 taxact These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. 2010 taxact 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. 2010 taxact This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. 2010 taxact Proceeds not received in installments. 2010 taxact   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. 2010 taxact 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. 2010 taxact Proceeds received in installments. 2010 taxact   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. 2010 taxact   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. 2010 taxact Include anything over this excluded part in your income as interest. 2010 taxact Installments for life. 2010 taxact   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. 2010 taxact If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. 2010 taxact Surviving spouse. 2010 taxact   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, in any year, up to $1,000 of the interest included in the installments. 2010 taxact If you remarry, you can continue to take the exclusion. 2010 taxact Surrender of policy for cash. 2010 taxact   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. 2010 taxact In general, 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. 2010 taxact You should receive a Form 1099-R showing the total proceeds and the taxable part. 2010 taxact Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. 2010 taxact Endowment Contract Proceeds An endowment contract is a policy that pays over to you 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. 2010 taxact 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. 2010 taxact To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. 2010 taxact Include in your income the part of the lump-sum payment that is more than your cost. 2010 taxact Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. 2010 taxact The tax treatment of an annuity is explained in Publication 575. 2010 taxact For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. 2010 taxact This election must be made within 60 days after the lump-sum payment first becomes payable to you. 2010 taxact Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. 2010 taxact However, see Exception , later. 2010 taxact For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. 2010 taxact Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. 2010 taxact In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. 2010 taxact Generally, a viatical settlement provider is one 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. 2010 taxact To report taxable 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. 2010 taxact Terminally or chronically ill defined. 2010 taxact   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. 2010 taxact A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. 2010 taxact The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. 2010 taxact The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. 2010 taxact Exception. 2010 taxact   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. 2010 taxact Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. 2010 taxact Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. 2010 taxact You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. 2010 taxact Main home. 2010 taxact   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. 2010 taxact Repaying the first-time homebuyer credit because you sold your home. 2010 taxact   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. 2010 taxact For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. 2010 taxact   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. 2010 taxact If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. 2010 taxact If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. 2010 taxact   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. 2010 taxact Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. 2010 taxact You meet the ownership test. 2010 taxact You meet the use test. 2010 taxact During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. 2010 taxact You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . 2010 taxact Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. 2010 taxact This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). 2010 taxact Exception to ownership and use tests. 2010 taxact   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. 2010 taxact Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. 2010 taxact The maximum amount you can exclude will be reduced. 2010 taxact See Publication 523, Selling Your Home, for more information. 2010 taxact Exception to use test for individuals with a disability. 2010 taxact   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. 2010 taxact Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. 2010 taxact   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. 2010 taxact Exception to ownership test for property acquired in a like-kind exchange. 2010 taxact   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. 2010 taxact This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. 2010 taxact A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. 2010 taxact See Publication 523 for more information. 2010 taxact Period of nonqualified use. 2010 taxact   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. 2010 taxact Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. 2010 taxact See Publication 523 for more information. 2010 taxact Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. 2010 taxact However, see Special rules for joint returns , next. 2010 taxact Special rules for joint returns. 2010 taxact   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. 2010 taxact You are married and file a joint return for the year. 2010 taxact Either you or your spouse meets the ownership test. 2010 taxact Both you and your spouse meet the use test. 2010 taxact During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. 2010 taxact Sale of home by surviving spouse. 2010 taxact   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. 2010 taxact   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. 2010 taxact The sale or exchange took place no more than 2 years after the date of death of your spouse. 2010 taxact You have not remarried. 2010 taxact You and your spouse met the use test at the time of your spouse's death. 2010 taxact You or your spouse met the ownership test at the time of your spouse's death. 2010 taxact Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. 2010 taxact Home transferred from spouse. 2010 taxact   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. 2010 taxact Use of home after divorce. 2010 taxact   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. 2010 taxact Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. 2010 taxact However, you must meet the ownership and use tests. 2010 taxact See Publication 523 for more information. 2010 taxact Depreciation after May 6, 1997. 2010 taxact   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. 2010 taxact See Publication 523 for more information. 2010 taxact Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. 2010 taxact If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. 2010 taxact Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. 2010 taxact If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. 2010 taxact See Publication 523 for more information. 2010 taxact Reverse Mortgages A revers