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2012 Tax Software Downloads

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2012 Tax Software Downloads

2012 tax software downloads 7. 2012 tax software downloads   Interest Income Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationSSN for joint account. 2012 tax software downloads Custodian account for your child. 2012 tax software downloads Penalty for failure to supply SSN. 2012 tax software downloads Reporting backup withholding. 2012 tax software downloads Savings account with parent as trustee. 2012 tax software downloads Interest not reported on Form 1099-INT. 2012 tax software downloads Nominees. 2012 tax software downloads Incorrect amount. 2012 tax software downloads Information reporting requirement. 2012 tax software downloads Taxable InterestInterest subject to penalty for early withdrawal. 2012 tax software downloads Money borrowed to invest in certificate of deposit. 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads Savings Bonds Education Savings Bond Program U. 2012 tax software downloads S. 2012 tax software downloads Treasury Bills, Notes, and Bonds Bonds Sold Between Interest Dates Insurance State or Local Government Obligations Original Issue Discount (OID) When To Report Interest IncomeConstructive receipt. 2012 tax software downloads How To Report Interest IncomeSchedule B (Form 1040A or 1040). 2012 tax software downloads Reporting tax-exempt interest. 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads savings bond interest previously reported. 2012 tax software downloads Reminder Foreign-source income. 2012 tax software downloads  If you are a U. 2012 tax software downloads S. 2012 tax software downloads citizen with interest income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt by U. 2012 tax software downloads S. 2012 tax software downloads law. 2012 tax software downloads This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. 2012 tax software downloads Introduction This chapter discusses the following topics. 2012 tax software downloads Different types of interest income. 2012 tax software downloads What interest is taxable and what interest is nontaxable. 2012 tax software downloads When to report interest income. 2012 tax software downloads How to report interest income on your tax return. 2012 tax software downloads In general, any interest you receive or that is credited to your account and can be withdrawn is taxable income. 2012 tax software downloads Exceptions to this rule are discussed later in this chapter. 2012 tax software downloads You may be able to deduct expenses you have in earning this income on Schedule A (Form 1040) if you itemize your deductions. 2012 tax software downloads See Money borrowed to invest in certificate of deposit , later, and chapter 28. 2012 tax software downloads Useful Items - You may want to see: Publication 537 Installment Sales 550 Investment Income and Expenses 1212 Guide to Original Issue Discount (OID) Instruments Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends 8815 Exclusion of Interest From Series EE and I U. 2012 tax software downloads S. 2012 tax software downloads Savings Bonds Issued After 1989 8818 Optional Form To Record Redemption of Series EE and I U. 2012 tax software downloads S. 2012 tax software downloads Savings Bonds Issued After 1989 General Information A few items of general interest are covered here. 2012 tax software downloads Recordkeeping. 2012 tax software downloads You should keep a list showing sources and interest amounts received during the year. 2012 tax software downloads Also, keep the forms you receive showing your interest income (Forms 1099-INT, for example) as an important part of your records. 2012 tax software downloads Tax on unearned income of certain children. 2012 tax software downloads    Part of a child's 2013 unearned income may be taxed at the parent's tax rate. 2012 tax software downloads If so, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. 2012 tax software downloads If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. 2012 tax software downloads   Some parents can choose to include the child's interest and dividends on the parent's return. 2012 tax software downloads If you can, use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. 2012 tax software downloads   For more information about the tax on unearned income of children and the parents' election, see chapter 31. 2012 tax software downloads Beneficiary of an estate or trust. 2012 tax software downloads   Interest you receive as a beneficiary of an estate or trust is generally taxable income. 2012 tax software downloads You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. 2012 tax software downloads , from the fiduciary. 2012 tax software downloads Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. 2012 tax software downloads Social security number (SSN). 2012 tax software downloads   You must give your name and SSN or individual tax identification number (ITIN) to any person required by federal tax law to make a return, statement, or other document that relates to you. 2012 tax software downloads This includes payers of interest. 2012 tax software downloads If you do not give your SSN or ITIN to the payer of interest, you may have to pay a penalty. 2012 tax software downloads SSN for joint account. 2012 tax software downloads   If the funds in a joint account belong to one person, list that person's name first on the account and give that person's SSN to the payer. 2012 tax software downloads (For information on who owns the funds in a joint account, see Joint accounts , later. 2012 tax software downloads ) If the joint account contains combined funds, give the SSN of the person whose name is listed first on the account. 2012 tax software downloads This is because only one name and SSN can be shown on Form 1099. 2012 tax software downloads   These rules apply both to joint ownership by a married couple and to joint ownership by other individuals. 2012 tax software downloads For example, if you open a joint savings account with your child using funds belonging to the child, list the child's name first on the account and give the child's SSN. 2012 tax software downloads Custodian account for your child. 2012 tax software downloads   If your child is the actual owner of an account that is recorded in your name as custodian for the child, give the child's SSN to the payer. 2012 tax software downloads For example, you must give your child's SSN to the payer of interest on an account owned by your child, even though the interest is paid to you as custodian. 2012 tax software downloads Penalty for failure to supply SSN. 2012 tax software downloads   If you do not give your SSN to the payer of interest, you may have to pay a penalty. 2012 tax software downloads See Failure to supply SSN under Penalties in chapter 1. 2012 tax software downloads Backup withholding also may apply. 2012 tax software downloads Backup withholding. 2012 tax software downloads   Your interest income is generally not subject to regular withholding. 2012 tax software downloads However, it may be subject to backup withholding to ensure that income tax is collected on the income. 2012 tax software downloads Under backup withholding, the payer of interest must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. 2012 tax software downloads   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. 2012 tax software downloads For more information, see Backup Withholding in chapter 4. 2012 tax software downloads Reporting backup withholding. 2012 tax software downloads   If backup withholding is deducted from your interest income, the payer must give you a Form 1099-INT for the year indicating the amount withheld. 2012 tax software downloads The Form 1099-INT will show any backup withholding as “Federal income tax withheld. 2012 tax software downloads ” Joint accounts. 2012 tax software downloads   If two or more persons hold property (such as a savings account or bond) as joint tenants, tenants by the entirety, or tenants in common, each person's share of any interest from the property is determined by local law. 2012 tax software downloads Income from property given to a child. 2012 tax software downloads   Property you give as a parent to your child under the Model Gifts of Securities to Minors Act, the Uniform Gifts to Minors Act, or any similar law becomes the child's property. 2012 tax software downloads   Income from the property is taxable to the child, except that any part used to satisfy a legal obligation to support the child is taxable to the parent or guardian having that legal obligation. 2012 tax software downloads Savings account with parent as trustee. 2012 tax software downloads   Interest income from a savings account opened for a minor child, but placed in the name and subject to the order of the parents as trustees, is taxable to the child if, under the law of the state in which the child resides, both of the following are true. 2012 tax software downloads The savings account legally belongs to the child. 2012 tax software downloads The parents are not legally permitted to use any of the funds to support the child. 2012 tax software downloads Form 1099-INT. 2012 tax software downloads   Interest income is generally reported to you on Form 1099-INT, or a similar statement, by banks, savings and loans, and other payers of interest. 2012 tax software downloads This form shows you the interest you received during the year. 2012 tax software downloads Keep this form for your records. 2012 tax software downloads You do not have to attach it to your tax return. 2012 tax software downloads   Report on your tax return the total interest income you receive for the tax year. 2012 tax software downloads Interest not reported on Form 1099-INT. 2012 tax software downloads   Even if you do not receive Form 1099-INT, you must still report all of your interest income. 2012 tax software downloads For example, you may receive distributive shares of interest from partnerships or S corporations. 2012 tax software downloads This interest is reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deduction, Credits, etc. 2012 tax software downloads , or Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. 2012 tax software downloads Nominees. 2012 tax software downloads   Generally, if someone receives interest as a nominee for you, that person must give you a Form 1099-INT showing the interest received on your behalf. 2012 tax software downloads   If you receive a Form 1099-INT that includes amounts belonging to another person, see the discussion on nominee distributions under How To Report Interest Income in chapter 1 of Publication 550, or Schedule B (Form 1040A or 1040) instructions. 2012 tax software downloads Incorrect amount. 2012 tax software downloads   If you receive a Form 1099-INT that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. 2012 tax software downloads The new Form 1099-INT you receive will be marked “Corrected. 2012 tax software downloads ” Form 1099-OID. 2012 tax software downloads   Reportable interest income also may be shown on Form 1099-OID, Original Issue Discount. 2012 tax software downloads For more information about amounts shown on this form, see Original Issue Discount (OID) , later in this chapter. 2012 tax software downloads Exempt-interest dividends. 2012 tax software downloads   Exempt-interest dividends you receive from a mutual fund or other regulated investment company, including those received from a qualified fund of funds in any tax year beginning after December 22, 2010, are not included in your taxable income. 2012 tax software downloads (However, see Information reporting requirement , next. 2012 tax software downloads ) Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. 2012 tax software downloads You do not reduce your basis for distributions that are exempt-interest dividends. 2012 tax software downloads Information reporting requirement. 2012 tax software downloads   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file. 2012 tax software downloads This is an information reporting requirement and does not change the exempt-interest dividends into taxable income. 2012 tax software downloads Note. 2012 tax software downloads Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. 2012 tax software downloads See Alternative Minimum Tax (AMT) in chapter 30 for more information. 2012 tax software downloads Chapter 1 of Publication 550 contains a discussion on private activity bonds under State or Local Government Obligations. 2012 tax software downloads Interest on VA dividends. 2012 tax software downloads   Interest on insurance dividends left on deposit with the Department of Veterans Affairs (VA) is not taxable. 2012 tax software downloads This includes interest paid on dividends on converted United States Government Life Insurance and on National Service Life Insurance policies. 2012 tax software downloads Individual retirement arrangements (IRAs). 2012 tax software downloads   Interest on a Roth IRA generally is not taxable. 2012 tax software downloads Interest on a traditional IRA is tax deferred. 2012 tax software downloads You generally do not include it in your income until you make withdrawals from the IRA. 2012 tax software downloads See chapter 17. 2012 tax software downloads Taxable Interest Taxable interest includes interest you receive from bank accounts, loans you make to others, and other sources. 2012 tax software downloads The following are some sources of taxable interest. 2012 tax software downloads Dividends that are actually interest. 2012 tax software downloads   Certain distributions commonly called dividends are actually interest. 2012 tax software downloads You must report as interest so-called “dividends” on deposits or on share accounts in: Cooperative banks, Credit unions, Domestic building and loan associations, Domestic savings and loan associations, Federal savings and loan associations, and Mutual savings banks. 2012 tax software downloads  The “dividends” will be shown as interest income on Form 1099-INT. 2012 tax software downloads Money market funds. 2012 tax software downloads   Money market funds pay dividends and are offered by nonbank financial institutions, such as mutual funds and stock brokerage houses. 2012 tax software downloads Generally, amounts you receive from money market funds should be reported as dividends, not as interest. 2012 tax software downloads Certificates of deposit and other deferred interest accounts. 2012 tax software downloads   If you open any of these accounts, interest may be paid at fixed intervals of 1 year or less during the term of the account. 2012 tax software downloads You generally must include this interest in your income when you actually receive it or are entitled to receive it without paying a substantial penalty. 2012 tax software downloads The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. 2012 tax software downloads If interest is deferred for more than 1 year, see Original Issue Discount (OID) , later. 2012 tax software downloads Interest subject to penalty for early withdrawal. 2012 tax software downloads   If you withdraw funds from a deferred interest account before maturity, you may have to pay a penalty. 2012 tax software downloads You must report the total amount of interest paid or credited to your account during the year, without subtracting the penalty. 2012 tax software downloads See Penalty on early withdrawal of savings in chapter 1 of Publication 550 for more information on how to report the interest and deduct the penalty. 2012 tax software downloads Money borrowed to invest in certificate of deposit. 2012 tax software downloads   The interest you pay on money borrowed from a bank or savings institution to meet the minimum deposit required for a certificate of deposit from the institution and the interest you earn on the certificate are two separate items. 2012 tax software downloads You must report the total interest you earn on the certificate in your income. 2012 tax software downloads If you itemize deductions, you can deduct the interest you pay as investment interest, up to the amount of your net investment income. 2012 tax software downloads See Interest Expenses in chapter 3 of Publication 550. 2012 tax software downloads Example. 2012 tax software downloads You deposited $5,000 with a bank and borrowed $5,000 from the bank to make up the $10,000 minimum deposit required to buy a 6-month certificate of deposit. 2012 tax software downloads The certificate earned $575 at maturity in 2013, but you received only $265, which represented the $575 you earned minus $310 interest charged on your $5,000 loan. 2012 tax software downloads The bank gives you a Form 1099-INT for 2013 showing the $575 interest you earned. 2012 tax software downloads The bank also gives you a statement showing that you paid $310 interest for 2013. 2012 tax software downloads You must include the $575 in your income. 2012 tax software downloads If you itemize your deductions on Schedule A (Form 1040), you can deduct $310, subject to the net investment income limit. 2012 tax software downloads Gift for opening account. 2012 tax software downloads   If you receive noncash gifts or services for making deposits or for opening an account in a savings institution, you may have to report the value as interest. 2012 tax software downloads   For deposits of less than $5,000, gifts or services valued at more than $10 must be reported as interest. 2012 tax software downloads For deposits of $5,000 or more, gifts or services valued at more than $20 must be reported as interest. 2012 tax software downloads The value is determined by the cost to the financial institution. 2012 tax software downloads Example. 2012 tax software downloads You open a savings account at your local bank and deposit $800. 2012 tax software downloads The account earns $20 interest. 2012 tax software downloads You also receive a $15 calculator. 2012 tax software downloads If no other interest is credited to your account during the year, the Form 1099-INT you receive will show $35 interest for the year. 2012 tax software downloads You must report $35 interest income on your tax return. 2012 tax software downloads Interest on insurance dividends. 2012 tax software downloads   Interest on insurance dividends left on deposit with an insurance company that can be withdrawn annually is taxable to you in the year it is credited to your account. 2012 tax software downloads However, if you can withdraw it only on the anniversary date of the policy (or other specified date), the interest is taxable in the year that date occurs. 2012 tax software downloads Prepaid insurance premiums. 2012 tax software downloads   Any increase in the value of prepaid insurance premiums, advance premiums, or premium deposit funds is interest if it is applied to the payment of premiums due on insurance policies or made available for you to withdraw. 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads obligations. 2012 tax software downloads   Interest on U. 2012 tax software downloads S. 2012 tax software downloads obligations, such as U. 2012 tax software downloads S. 2012 tax software downloads Treasury bills, notes, and bonds, issued by any agency or instrumentality of the United States is taxable for federal income tax purposes. 2012 tax software downloads Interest on tax refunds. 2012 tax software downloads   Interest you receive on tax refunds is taxable income. 2012 tax software downloads Interest on condemnation award. 2012 tax software downloads   If the condemning authority pays you interest to compensate you for a delay in payment of an award, the interest is taxable. 2012 tax software downloads Installment sale payments. 2012 tax software downloads   If a contract for the sale or exchange of property provides for deferred payments, it also usually provides for interest payable with the deferred payments. 2012 tax software downloads That interest is taxable when you receive it. 2012 tax software downloads If little or no interest is provided for in a deferred payment contract, part of each payment may be treated as interest. 2012 tax software downloads See Unstated Interest and Original Issue Discount in Publication 537, Installment Sales. 2012 tax software downloads Interest on annuity contract. 2012 tax software downloads   Accumulated interest on an annuity contract you sell before its maturity date is taxable. 2012 tax software downloads Usurious interest. 2012 tax software downloads   Usurious interest is interest charged at an illegal rate. 2012 tax software downloads This is taxable as interest unless state law automatically changes it to a payment on the principal. 2012 tax software downloads Interest income on frozen deposits. 2012 tax software downloads   Exclude from your gross income interest on frozen deposits. 2012 tax software downloads A deposit is frozen if, at the end of the year, you cannot withdraw any part of the deposit because: The financial institution is bankrupt or insolvent, or The state where the institution is located has placed limits on withdrawals because other financial institutions in the state are bankrupt or insolvent. 2012 tax software downloads   The amount of interest you must exclude is the interest that was credited on the frozen deposits minus the sum of: The net amount you withdrew from these deposits during the year, and The amount you could have withdrawn as of the end of the year (not reduced by any penalty for premature withdrawals of a time deposit). 2012 tax software downloads If you receive a Form 1099-INT for interest income on deposits that were frozen at the end of 2013, see Frozen deposits under How To Report Interest Income in chapter 1 of Publication 550, for information about reporting this interest income exclusion on your tax return. 2012 tax software downloads   The interest you exclude is treated as credited to your account in the following year. 2012 tax software downloads You must include it in income in the year you can withdraw it. 2012 tax software downloads Example. 2012 tax software downloads $100 of interest was credited on your frozen deposit during the year. 2012 tax software downloads You withdrew $80 but could not withdraw any more as of the end of the year. 2012 tax software downloads You must include $80 in your income and exclude $20 from your income for the year. 2012 tax software downloads You must include the $20 in your income for the year you can withdraw it. 2012 tax software downloads Bonds traded flat. 2012 tax software downloads   If you buy a bond at a discount when interest has been defaulted or when the interest has accrued but has not been paid, the transaction is described as trading a bond flat. 2012 tax software downloads The defaulted or unpaid interest is not income and is not taxable as interest if paid later. 2012 tax software downloads When you receive a payment of that interest, it is a return of capital that reduces the remaining cost basis of your bond. 2012 tax software downloads Interest that accrues after the date of purchase, however, is taxable interest income for the year it is received or accrued. 2012 tax software downloads See Bonds Sold Between Interest Dates , later, for more information. 2012 tax software downloads Below-market loans. 2012 tax software downloads   In general, a below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. 2012 tax software downloads See Below-Market Loans in chapter 1 of Publication 550 for more information. 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads Savings Bonds This section provides tax information on U. 2012 tax software downloads S. 2012 tax software downloads savings bonds. 2012 tax software downloads It explains how to report the interest income on these bonds and how to treat transfers of these bonds. 2012 tax software downloads For other information on U. 2012 tax software downloads S. 2012 tax software downloads savings bonds, write to:  For series EE and I paper savings bonds: Bureau of the Public Debt Division of Customer Assistance P. 2012 tax software downloads O. 2012 tax software downloads Box 7012 Parkersburg, WV 26106-7012  For series EE and I electronic bonds: Bureau of the Public Debt Division of Customer Assistance P. 2012 tax software downloads O. 2012 tax software downloads Box 7015 Parkersburg, WV 26106–7015  For series HH/H: Bureau of the Public Debt Division of Customer Assistance P. 2012 tax software downloads O. 2012 tax software downloads Box 2186 Parkersburg, WV 26106-2186 Or, on the Internet, visit: www. 2012 tax software downloads treasurydirect. 2012 tax software downloads gov/indiv/indiv. 2012 tax software downloads htm. 2012 tax software downloads Accrual method taxpayers. 2012 tax software downloads   If you use an accrual method of accounting, you must report interest on U. 2012 tax software downloads S. 2012 tax software downloads savings bonds each year as it accrues. 2012 tax software downloads You cannot postpone reporting interest until you receive it or until the bonds mature. 2012 tax software downloads Accrual methods of accounting are explained in chapter 1 under Accounting Methods . 2012 tax software downloads Cash method taxpayers. 2012 tax software downloads   If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U. 2012 tax software downloads S. 2012 tax software downloads savings bonds when you receive it. 2012 tax software downloads The cash method of accounting is explained in chapter 1 under Accounting Methods. 2012 tax software downloads But see Reporting options for cash method taxpayers , later. 2012 tax software downloads Series HH bonds. 2012 tax software downloads    These bonds were issued at face value. 2012 tax software downloads Interest is paid twice a year by direct deposit to your bank account. 2012 tax software downloads If you are a cash method taxpayer, you must report interest on these bonds as income in the year you receive it. 2012 tax software downloads   Series HH bonds were first offered in 1980 and last offered in August 2004. 2012 tax software downloads Before 1980, series H bonds were issued. 2012 tax software downloads Series H bonds are treated the same as series HH bonds. 2012 tax software downloads If you are a cash method taxpayer, you must report the interest when you receive it. 2012 tax software downloads   Series H bonds have a maturity period of 30 years. 2012 tax software downloads Series HH bonds mature in 20 years. 2012 tax software downloads The last series H bonds matured in 2009. 2012 tax software downloads Series EE and series I bonds. 2012 tax software downloads   Interest on these bonds is payable when you redeem the bonds. 2012 tax software downloads The difference between the purchase price and the redemption value is taxable interest. 2012 tax software downloads Series EE bonds. 2012 tax software downloads   Series EE bonds were first offered in January 1980 and have a maturity period of 30 years. 2012 tax software downloads   Before July 1980, series E bonds were issued. 2012 tax software downloads The original 10-year maturity period of series E bonds has been extended to 40 years for bonds issued before December 1965 and 30 years for bonds issued after November 1965. 2012 tax software downloads Paper series EE and series E bonds are issued at a discount. 2012 tax software downloads The face value is payable to you at maturity. 2012 tax software downloads Electronic series EE bonds are issued at their face value. 2012 tax software downloads The face value plus accrued interest is payable to you at maturity. 2012 tax software downloads As of January 1, 2012, paper savings bonds were no longer sold at financial institutions. 2012 tax software downloads   Owners of paper series EE bonds can convert them to electronic bonds. 2012 tax software downloads These converted bonds do not retain the denomination listed on the paper certificate but are posted at their purchase price (with accrued interest). 2012 tax software downloads Series I bonds. 2012 tax software downloads   Series I bonds were first offered in 1998. 2012 tax software downloads These are inflation-indexed bonds issued at their face amount with a maturity period of 30 years. 2012 tax software downloads The face value plus all accrued interest is payable to you at maturity. 2012 tax software downloads Reporting options for cash method taxpayers. 2012 tax software downloads   If you use the cash method of reporting income, you can report the interest on series EE, series E, and series I bonds in either of the following ways. 2012 tax software downloads Method 1. 2012 tax software downloads Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year they mature. 2012 tax software downloads (However, see Savings bonds traded , later. 2012 tax software downloads )  Note. 2012 tax software downloads Series EE bonds issued in 1983 matured in 2013. 2012 tax software downloads If you have used method 1, you generally must report the interest on these bonds on your 2013 return. 2012 tax software downloads The last series E bonds were issued in 1980 and matured in 2010. 2012 tax software downloads If you used method 1, you generally should have reported the interest on these bonds on your 2010 return. 2012 tax software downloads Method 2. 2012 tax software downloads Choose to report the increase in redemption value as interest each year. 2012 tax software downloads You must use the same method for all series EE, series E, and series I bonds you own. 2012 tax software downloads If you do not choose method 2 by reporting the increase in redemption value as interest each year, you must use method 1. 2012 tax software downloads    If you plan to cash your bonds in the same year you will pay for higher education expenses, you may want to use method 1 because you may be able to exclude the interest from your income. 2012 tax software downloads To learn how, see Education Savings Bond Program, later. 2012 tax software downloads Change from method 1. 2012 tax software downloads   If you want to change your method of reporting the interest from method 1 to method 2, you can do so without permission from the IRS. 2012 tax software downloads In the year of change you must report all interest accrued to date and not previously reported for all your bonds. 2012 tax software downloads   Once you choose to report the interest each year, you must continue to do so for all series EE, series E, and series I bonds you own and for any you get later, unless you request permission to change, as explained next. 2012 tax software downloads Change from method 2. 2012 tax software downloads   To change from method 2 to method 1, you must request permission from the IRS. 2012 tax software downloads Permission for the change is automatically granted if you send the IRS a statement that meets all the following requirements. 2012 tax software downloads You have typed or printed the following number at the top: “131. 2012 tax software downloads ” It includes your name and social security number under “131. 2012 tax software downloads ” It includes the year of change (both the beginning and ending dates). 2012 tax software downloads It identifies the savings bonds for which you are requesting this change. 2012 tax software downloads It includes your agreement to: Report all interest on any bonds acquired during or after the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest, and Report all interest on the bonds acquired before the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest, with the exception of the interest reported in prior tax years. 2012 tax software downloads   You must attach this statement to your tax return for the year of change, which you must file by the due date (including extensions). 2012 tax software downloads   You can have an automatic extension of 6 months from the due date of your return for the year of change (excluding extensions) to file the statement with an amended return. 2012 tax software downloads On the statement, type or print “Filed pursuant to section 301. 2012 tax software downloads 9100-2. 2012 tax software downloads ” To get this extension, you must have filed your original return for the year of the change by the due date (including extensions). 2012 tax software downloads    By the date you file the original statement with your return, you must also send a signed copy to the address below. 2012 tax software downloads   Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) P. 2012 tax software downloads O. 2012 tax software downloads Box 7604 Benjamin Franklin Station Washington, DC 20044   If you use a private delivery service, send the signed copy to the address below. 2012 tax software downloads   Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) Room 5336 1111 Constitution Avenue, NW  Washington, DC 20224   Instead of filing this statement, you can request permission to change from method 2 to method 1 by filing Form 3115, Application for Change in Accounting Method. 2012 tax software downloads In that case, follow the form instructions for an automatic change. 2012 tax software downloads No user fee is required. 2012 tax software downloads Co-owners. 2012 tax software downloads   If a U. 2012 tax software downloads S. 2012 tax software downloads savings bond is issued in the names of co-owners, such as you and your child or you and your spouse, interest on the bond is generally taxable to the co-owner who bought the bond. 2012 tax software downloads One co-owner's funds used. 2012 tax software downloads    If you used your funds to buy the bond, you must pay the tax on the interest. 2012 tax software downloads This is true even if you let the other co-owner redeem the bond and keep all the proceeds. 2012 tax software downloads Under these circumstances, the co-owner who redeemed the bond will receive a Form 1099-INT at the time of redemption and must provide you with another Form 1099-INT showing the amount of interest from the bond taxable to you. 2012 tax software downloads The co-owner who redeemed the bond is a “nominee. 2012 tax software downloads ” See Nominee distributions under How To Report Interest Income in chapter 1 of Publication 550 for more information about how a person who is a nominee reports interest income belonging to another person. 2012 tax software downloads Both co-owners' funds used. 2012 tax software downloads   If you and the other co-owner each contribute part of the bond's purchase price, the interest is generally taxable to each of you, in proportion to the amount each of you paid. 2012 tax software downloads Community property. 2012 tax software downloads   If you and your spouse live in a community property state and hold bonds as community property, one-half of the interest is considered received by each of you. 2012 tax software downloads If you file separate returns, each of you generally must report one-half of the bond interest. 2012 tax software downloads For more information about community property, see Publication 555. 2012 tax software downloads Table 7-1. 2012 tax software downloads   These rules are also shown in Table 7-1. 2012 tax software downloads Ownership transferred. 2012 tax software downloads   If you bought series E, series EE, or series I bonds entirely with your own funds and had them reissued in your co-owner's name or beneficiary's name alone, you must include in your gross income for the year of reissue all interest that you earned on these bonds and have not previously reported. 2012 tax software downloads But, if the bonds were reissued in your name alone, you do not have to report the interest accrued at that time. 2012 tax software downloads   This same rule applies when bonds (other than bonds held as community property) are transferred between spouses or incident to divorce. 2012 tax software downloads Purchased jointly. 2012 tax software downloads   If you and a co-owner each contributed funds to buy series E, series EE, or series I bonds jointly and later have the bonds reissued in the co-owner's name alone, you must include in your gross income for the year of reissue your share of all the interest earned on the bonds that you have not previously reported. 2012 tax software downloads The former co-owner does not have to include in gross income at the time of reissue his or her share of the interest earned that was not reported before the transfer. 2012 tax software downloads This interest, however, as well as all interest earned after the reissue, is income to the former co-owner. 2012 tax software downloads   This income-reporting rule also applies when the bonds are reissued in the name of your former co-owner and a new co-owner. 2012 tax software downloads But the new co-owner will report only his or her share of the interest earned after the transfer. 2012 tax software downloads   If bonds that you and a co-owner bought jointly are reissued to each of you separately in the same proportion as your contribution to the purchase price, neither you nor your co-owner has to report at that time the interest earned before the bonds were reissued. 2012 tax software downloads    Table 7-1. 2012 tax software downloads Who Pays the Tax on U. 2012 tax software downloads S. 2012 tax software downloads Savings Bond Interest IF . 2012 tax software downloads . 2012 tax software downloads . 2012 tax software downloads THEN the interest must be reported by . 2012 tax software downloads . 2012 tax software downloads . 2012 tax software downloads you buy a bond in your name and the name of another person as co-owners, using only your own funds you. 2012 tax software downloads you buy a bond in the name of another person, who is the sole owner of the bond the person for whom you bought the bond. 2012 tax software downloads you and another person buy a bond as co-owners, each contributing part of the purchase price both you and the other co-owner, in proportion to the amount each paid for the bond. 2012 tax software downloads you and your spouse, who live in a community property state, buy a bond that is community property you and your spouse. 2012 tax software downloads If you file separate returns, both you and your spouse generally report one-half of the interest. 2012 tax software downloads Example 1. 2012 tax software downloads You and your spouse each spent an equal amount to buy a $1,000 series EE savings bond. 2012 tax software downloads The bond was issued to you and your spouse as co-owners. 2012 tax software downloads You both postpone reporting interest on the bond. 2012 tax software downloads You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. 2012 tax software downloads At that time neither you nor your spouse has to report the interest earned to the date of reissue. 2012 tax software downloads Example 2. 2012 tax software downloads You bought a $1,000 series EE savings bond entirely with your own funds. 2012 tax software downloads The bond was issued to you and your spouse as co-owners. 2012 tax software downloads You both postpone reporting interest on the bond. 2012 tax software downloads You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. 2012 tax software downloads You must report half the interest earned to the date of reissue. 2012 tax software downloads Transfer to a trust. 2012 tax software downloads   If you own series E, series EE, or series I bonds and transfer them to a trust, giving up all rights of ownership, you must include in your income for that year the interest earned to the date of transfer if you have not already reported it. 2012 tax software downloads However, if you are considered the owner of the trust and if the increase in value both before and after the transfer continues to be taxable to you, you can continue to defer reporting the interest earned each year. 2012 tax software downloads You must include the total interest in your income in the year you cash or dispose of the bonds or the year the bonds finally mature, whichever is earlier. 2012 tax software downloads   The same rules apply to previously unreported interest on series EE or series E bonds if the transfer to a trust consisted of series HH or series H bonds you acquired in a trade for the series EE or series E bonds. 2012 tax software downloads See Savings bonds traded , later. 2012 tax software downloads Decedents. 2012 tax software downloads   The manner of reporting interest income on series E, series EE, or series I bonds, after the death of the owner (decedent), depends on the accounting and income-reporting methods previously used by the decedent. 2012 tax software downloads This is explained in chapter 1 of Publication 550. 2012 tax software downloads Savings bonds traded. 2012 tax software downloads   If you postponed reporting the interest on your series EE or series E bonds, you did not recognize taxable income when you traded the bonds for series HH or series H bonds, unless you received cash in the trade. 2012 tax software downloads (You cannot trade series I bonds for series HH bonds. 2012 tax software downloads After August 31, 2004, you cannot trade any other series of bonds for series HH bonds. 2012 tax software downloads ) Any cash you received is income up to the amount of the interest earned on the bonds traded. 2012 tax software downloads When your series HH or series H bonds mature, or if you dispose of them before maturity, you report as interest the difference between their redemption value and your cost. 2012 tax software downloads Your cost is the sum of the amount you paid for the traded series EE or series E bonds plus any amount you had to pay at the time of the trade. 2012 tax software downloads Example. 2012 tax software downloads You traded series EE bonds (on which you postponed reporting the interest) for $2,500 in series HH bonds and $223 in cash. 2012 tax software downloads You reported the $223 as taxable income on your tax return. 2012 tax software downloads At the time of the trade, the series EE bonds had accrued interest of $523 and a redemption value of $2,723. 2012 tax software downloads You hold the series HH bonds until maturity, when you receive $2,500. 2012 tax software downloads You must report $300 as interest income in the year of maturity. 2012 tax software downloads This is the difference between their redemption value, $2,500, and your cost, $2,200 (the amount you paid for the series EE bonds). 2012 tax software downloads (It is also the difference between the accrued interest of $523 on the series EE bonds and the $223 cash received on the trade. 2012 tax software downloads ) Choice to report interest in year of trade. 2012 tax software downloads   You could have chosen to treat all of the previously unreported accrued interest on the series EE or series E bonds traded for series HH bonds as income in the year of the trade. 2012 tax software downloads If you made this choice, it is treated as a change from method 1. 2012 tax software downloads See Change from method 1 under Series EE and series I bonds, earlier. 2012 tax software downloads Form 1099-INT for U. 2012 tax software downloads S. 2012 tax software downloads savings bonds interest. 2012 tax software downloads   When you cash a bond, the bank or other payer that redeems it must give you a Form 1099-INT if the interest part of the payment you receive is $10 or more. 2012 tax software downloads Box 3 of your Form 1099-INT should show the interest as the difference between the amount you received and the amount paid for the bond. 2012 tax software downloads However, your Form 1099-INT may show more interest than you have to include on your income tax return. 2012 tax software downloads For example, this may happen if any of the following are true. 2012 tax software downloads You chose to report the increase in the redemption value of the bond each year. 2012 tax software downloads The interest shown on your Form 1099-INT will not be reduced by amounts previously included in income. 2012 tax software downloads You received the bond from a decedent. 2012 tax software downloads The interest shown on your Form 1099-INT will not be reduced by any interest reported by the decedent before death, or on the decedent's final return, or by the estate on the estate's income tax return. 2012 tax software downloads Ownership of the bond was transferred. 2012 tax software downloads The interest shown on your Form 1099-INT will not be reduced by interest that accrued before the transfer. 2012 tax software downloads You were named as a co-owner, and the other co-owner contributed funds to buy the bond. 2012 tax software downloads The interest shown on your Form 1099-INT will not be reduced by the amount you received as nominee for the other co-owner. 2012 tax software downloads (See Co-owners , earlier in this chapter, for more information about the reporting requirements. 2012 tax software downloads ) You received the bond in a taxable distribution from a retirement or profit-sharing plan. 2012 tax software downloads The interest shown on your Form 1099-INT will not be reduced by the interest portion of the amount taxable as a distribution from the plan and not taxable as interest. 2012 tax software downloads (This amount is generally shown on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2012 tax software downloads , for the year of distribution. 2012 tax software downloads )   For more information on including the correct amount of interest on your return, see How To Report Interest Income , later. 2012 tax software downloads Publication 550 includes examples showing how to report these amounts. 2012 tax software downloads    Interest on U. 2012 tax software downloads S. 2012 tax software downloads savings bonds is exempt from state and local taxes. 2012 tax software downloads The Form 1099-INT you receive will indicate the amount that is for U. 2012 tax software downloads S. 2012 tax software downloads savings bond interest in box 3. 2012 tax software downloads Education Savings Bond Program You may be able to exclude from income all or part of the interest you receive on the redemption of qualified U. 2012 tax software downloads S. 2012 tax software downloads savings bonds during the year if you pay qualified higher educational expenses during the same year. 2012 tax software downloads This exclusion is known as the Education Savings Bond Program. 2012 tax software downloads You do not qualify for this exclusion if your filing status is married filing separately. 2012 tax software downloads Form 8815. 2012 tax software downloads   Use Form 8815 to figure your exclusion. 2012 tax software downloads Attach the form to your Form 1040 or Form 1040A. 2012 tax software downloads Qualified U. 2012 tax software downloads S. 2012 tax software downloads savings bonds. 2012 tax software downloads   A qualified U. 2012 tax software downloads S. 2012 tax software downloads savings bond is a series EE bond issued after 1989 or a series I bond. 2012 tax software downloads The bond must be issued either in your name (sole owner) or in your and your spouse's names (co-owners). 2012 tax software downloads You must be at least 24 years old before the bond's issue date. 2012 tax software downloads For example, a bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or child. 2012 tax software downloads    The issue date of a bond may be earlier than the date the bond is purchased because the issue date assigned to a bond is the first day of the month in which it is purchased. 2012 tax software downloads Beneficiary. 2012 tax software downloads   You can designate any individual (including a child) as a beneficiary of the bond. 2012 tax software downloads Verification by IRS. 2012 tax software downloads   If you claim the exclusion, the IRS will check it by using bond redemption information from the Department of the Treasury. 2012 tax software downloads Qualified expenses. 2012 tax software downloads   Qualified higher educational expenses are tuition and fees required for you, your spouse, or your dependent (for whom you claim an exemption) to attend an eligible educational institution. 2012 tax software downloads   Qualified expenses include any contribution you make to a qualified tuition program or to a Coverdell education savings account. 2012 tax software downloads   Qualified expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. 2012 tax software downloads Eligible educational institutions. 2012 tax software downloads   These institutions include most public, private, and nonprofit universities, colleges, and vocational schools that are accredited and eligible to participate in student aid programs run by the U. 2012 tax software downloads S. 2012 tax software downloads Department of Education. 2012 tax software downloads Reduction for certain benefits. 2012 tax software downloads   You must reduce your qualified higher educational expenses by all of the following tax-free benefits. 2012 tax software downloads Tax-free part of scholarships and fellowships (see Scholarships and fellowships in chapter 12). 2012 tax software downloads Expenses used to figure the tax-free portion of distributions from a Coverdell ESA. 2012 tax software downloads Expenses used to figure the tax-free portion of distributions from a qualified tuition program. 2012 tax software downloads Any tax-free payments (other than gifts or inheritances) received for educational expenses, such as Veterans' educational assistance benefits, Qualified tuition reductions, or Employer-provided educational assistance. 2012 tax software downloads Any expense used in figuring the American Opportunity and lifetime learning credits. 2012 tax software downloads Amount excludable. 2012 tax software downloads   If the total proceeds (interest and principal) from the qualified U. 2012 tax software downloads S. 2012 tax software downloads savings bonds you redeem during the year are not more than your adjusted qualified higher educational expenses for the year, you may be able to exclude all of the interest. 2012 tax software downloads If the proceeds are more than the expenses, you may be able to exclude only part of the interest. 2012 tax software downloads   To determine the excludable amount, multiply the interest part of the proceeds by a fraction. 2012 tax software downloads The numerator of the fraction is the qualified higher educational expenses you paid during the year. 2012 tax software downloads The denominator of the fraction is the total proceeds you received during the year. 2012 tax software downloads Example. 2012 tax software downloads In February 2013, Mark and Joan, a married couple, cashed a qualified series EE U. 2012 tax software downloads S. 2012 tax software downloads savings bond they bought in April 1997. 2012 tax software downloads They received proceeds of $8,372 representing principal of $5,000 and interest of $3,372. 2012 tax software downloads In 2013, they paid $4,000 of their daughter's college tuition. 2012 tax software downloads They are not claiming an education credit for that amount, and their daughter does not have any tax-free educational assistance. 2012 tax software downloads They can exclude $1,611 ($3,372 × ($4,000 ÷ $8,372)) of interest in 2013. 2012 tax software downloads They must pay tax on the remaining $1,761 ($3,372 − $1,611) interest. 2012 tax software downloads Modified adjusted gross income limit. 2012 tax software downloads   The interest exclusion is limited if your modified adjusted gross income (modified AGI) is: $74,700 to $89,700 for taxpayers filing single or head of household, and $112,050 to $142,050 for married taxpayers filing jointly or for a qualifying widow(er) with dependent child. 2012 tax software downloads You do not qualify for the interest exclusion if your modified AGI is equal to or more than the upper limit for your filing status. 2012 tax software downloads   Modified AGI, for purposes of this exclusion, is adjusted gross income (Form 1040, line 37, or Form 1040A, line 21) figured before the interest exclusion, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion and deduction, Exclusion of income for bona fide residents of American Samoa, Exclusion for income from Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for tuition and fees, Deduction for student loan interest, and Deduction for domestic production activities. 2012 tax software downloads   Use the Line 9 Worksheet in the Form 8815 instructions to figure your modified AGI. 2012 tax software downloads If you claim any of the exclusion or deduction items listed above (except items 6, 7, and 8), add the amount of the exclusion or deduction (except items 6, 7, and 8) to the amount on line 5 of the worksheet, and enter the total on Form 8815, line 9, as your modified AGI. 2012 tax software downloads   If you have investment interest expense incurred to earn royalties and other investment income, see Education Savings Bond Program in chapter 1 of Publication 550. 2012 tax software downloads Recordkeeping. 2012 tax software downloads If you claim the interest exclusion, you must keep a written record of the qualified U. 2012 tax software downloads S. 2012 tax software downloads savings bonds you redeem. 2012 tax software downloads Your record must include the serial number, issue date, face value, and total redemption proceeds (principal and interest) of each bond. 2012 tax software downloads You can use Form 8818 to record this information. 2012 tax software downloads You should also keep bills, receipts, canceled checks, or other documentation that shows you paid qualified higher educational expenses during the year. 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads Treasury Bills, Notes, and Bonds Treasury bills, notes, and bonds are direct debts (obligations) of the U. 2012 tax software downloads S. 2012 tax software downloads Government. 2012 tax software downloads Taxation of interest. 2012 tax software downloads   Interest income from Treasury bills, notes, and bonds is subject to federal income tax but is exempt from all state and local income taxes. 2012 tax software downloads You should receive Form 1099-INT showing the interest (in box 3) paid to you for the year. 2012 tax software downloads   Payments of principal and interest generally will be credited to your designated checking or savings account by direct deposit through the TreasuryDirect® system. 2012 tax software downloads Treasury bills. 2012 tax software downloads   These bills generally have a 4-week, 13-week, 26-week, or 52-week maturity period. 2012 tax software downloads They are generally issued at a discount in the amount of $100 and multiples of $100. 2012 tax software downloads The difference between the discounted price you pay for the bills and the face value you receive at maturity is interest income. 2012 tax software downloads Generally, you report this interest income when the bill is paid at maturity. 2012 tax software downloads If you paid a premium for a bill (more than the face value), you generally report the premium as a section 171 deduction when the bill is paid at maturity. 2012 tax software downloads Treasury notes and bonds. 2012 tax software downloads   Treasury notes have maturity periods of more than 1 year, ranging up to 10 years. 2012 tax software downloads Maturity periods for Treasury bonds are longer than 10 years. 2012 tax software downloads Both generally are issued in denominations of $100 to $1 million and generally pay interest every 6 months. 2012 tax software downloads Generally, you report this interest for the year paid. 2012 tax software downloads For more information, see U. 2012 tax software downloads S. 2012 tax software downloads Treasury Bills, Notes, and Bonds in chapter 1 of Publication 550. 2012 tax software downloads For other information on Treasury notes or bonds, write to:  Bureau of the Public Debt P. 2012 tax software downloads O. 2012 tax software downloads Box 7015 Parkersburg, WV 26106-7015 Or, on the Internet, visit: www. 2012 tax software downloads treasurydirect. 2012 tax software downloads gov/indiv/indiv. 2012 tax software downloads htm. 2012 tax software downloads For information on series EE, series I, and series HH savings bonds, see U. 2012 tax software downloads S. 2012 tax software downloads Savings Bonds , earlier. 2012 tax software downloads Treasury inflation-protected securities (TIPS). 2012 tax software downloads   These securities pay interest twice a year at a fixed rate, based on a principal amount adjusted to take into account inflation and deflation. 2012 tax software downloads For the tax treatment of these securities, see Inflation-Indexed Debt Instruments under Original Issue Discount (OID), in Publication 550. 2012 tax software downloads Bonds Sold Between Interest Dates If you sell a bond between interest payment dates, part of the sales price represents interest accrued to the date of sale. 2012 tax software downloads You must report that part of the sales price as interest income for the year of sale. 2012 tax software downloads If you buy a bond between interest payment dates, part of the purchase price represents interest accrued before the date of purchase. 2012 tax software downloads When that interest is paid to you, treat it as a return of your capital investment, rather than interest income, by reducing your basis in the bond. 2012 tax software downloads See Accrued interest on bonds under How To Report Interest Income in chapter 1 of Publication 550 for information on reporting the payment. 2012 tax software downloads Insurance Life insurance proceeds paid to you as beneficiary of the insured person are usually not taxable. 2012 tax software downloads But if you receive the proceeds in installments, you must usually report a part of each installment payment as interest income. 2012 tax software downloads For more information about insurance proceeds received in installments, see Publication 525, Taxable and Nontaxable Income. 2012 tax software downloads Annuity. 2012 tax software downloads   If you buy an annuity with life insurance proceeds, the annuity payments you receive are taxed as pension and annuity income from a nonqualified plan, not as interest income. 2012 tax software downloads See chapter 10 for information on pension and annuity income from nonqualified plans. 2012 tax software downloads State or Local Government Obligations Interest on a bond used to finance government operations generally is not taxable if the bond is issued by a state, the District of Columbia, a possession of the United States, or any of their political subdivisions. 2012 tax software downloads Bonds issued after 1982 (including tribal economic development bonds issued after February 17, 2009) by an Indian tribal government are treated as issued by a state. 2012 tax software downloads Interest on these bonds is generally tax exempt if the bonds are part of an issue of which substantially all proceeds are to be used in the exercise of any essential government function. 2012 tax software downloads For information on federally guaranteed bonds, mortgage revenue bonds, arbitrage bonds, private activity bonds, qualified tax credit bonds, and Build America bonds, see State or Local Government Obligations in chapter 1 of Publication 550. 2012 tax software downloads Information reporting requirement. 2012 tax software downloads   If you must file a tax return, you are required to show any tax-exempt interest you received on your return. 2012 tax software downloads This is an information reporting requirement only. 2012 tax software downloads It does not change tax-exempt interest to taxable interest. 2012 tax software downloads Original Issue Discount (OID) Original issue discount (OID) is a form of interest. 2012 tax software downloads You generally include OID in your income as it accrues over the term of the debt instrument, whether or not you receive any payments from the issuer. 2012 tax software downloads A debt instrument generally has OID when the instrument is issued for a price that is less than its stated redemption price at maturity. 2012 tax software downloads OID is the difference between the stated redemption price at maturity and the issue price. 2012 tax software downloads All debt instruments that pay no interest before maturity are presumed to be issued at a discount. 2012 tax software downloads Zero coupon bonds are one example of these instruments. 2012 tax software downloads The OID accrual rules generally do not apply to short-term obligations (those with a fixed maturity date of 1 year or less from date of issue). 2012 tax software downloads See Discount on Short-Term Obligations in chapter 1 of Publication 550. 2012 tax software downloads De minimis OID. 2012 tax software downloads   You can treat the discount as zero if it is less than one-fourth of 1% (. 2012 tax software downloads 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. 2012 tax software downloads This small discount is known as “de minimis” OID. 2012 tax software downloads Example 1. 2012 tax software downloads You bought a 10-year bond with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. 2012 tax software downloads One-fourth of 1% of $1,000 (stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. 2012 tax software downloads Because the $20 discount is less than $25, the OID is treated as zero. 2012 tax software downloads (If you hold the bond at maturity, you will recognize $20 ($1,000 − $980) of capital gain. 2012 tax software downloads ) Example 2. 2012 tax software downloads The facts are the same as in Example 1, except that the bond was issued at $950. 2012 tax software downloads The OID is $50. 2012 tax software downloads Because the $50 discount is more than the $25 figured in Example 1, you must include the OID in income as it accrues over the term of the bond. 2012 tax software downloads Debt instrument bought after original issue. 2012 tax software downloads   If you buy a debt instrument with de minimis OID at a premium, the discount is not includible in income. 2012 tax software downloads If you buy a debt instrument with de minimis OID at a discount, the discount is reported under the market discount rules. 2012 tax software downloads See Market Discount Bonds in chapter 1 of Publication 550. 2012 tax software downloads Exceptions to reporting OID. 2012 tax software downloads   The OID rules discussed in this chapter do not apply to the following debt instruments. 2012 tax software downloads Tax-exempt obligations. 2012 tax software downloads (However, see Stripped tax-exempt obligations under Stripped Bonds and Coupons in chapter 1 of Publication 550). 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads savings bonds. 2012 tax software downloads Short-term debt instruments (those with a fixed maturity date of not more than 1 year from the date of issue). 2012 tax software downloads Obligations issued by an individual before March 2, 1984. 2012 tax software downloads Loans between individuals if all the following are true. 2012 tax software downloads The lender is not in the business of lending money. 2012 tax software downloads The amount of the loan, plus the amount of any outstanding prior loans between the same individuals, is $10,000 or less. 2012 tax software downloads Avoiding any federal tax is not one of the principal purposes of the loan. 2012 tax software downloads Form 1099-OID. 2012 tax software downloads   The issuer of the debt instrument (or your broker if you held the instrument through a broker) should give you Form 1099-OID, or a similar statement, if the total OID for the calendar year is $10 or more. 2012 tax software downloads Form 1099-OID will show, in box 1, the amount of OID for the part of the year that you held the bond. 2012 tax software downloads It also will show, in box 2, the stated interest you must include in your income. 2012 tax software downloads A copy of Form 1099-OID will be sent to the IRS. 2012 tax software downloads Do not file your copy with your return. 2012 tax software downloads Keep it for your records. 2012 tax software downloads   In most cases, you must report the entire amount in boxes 1 and 2 of Form 1099-OID as interest income. 2012 tax software downloads But see Refiguring OID shown on Form 1099-OID, later in this discussion, for more information. 2012 tax software downloads Form 1099-OID not received. 2012 tax software downloads   If you had OID for the year but did not receive a Form 1099-OID, you can find tables on IRS. 2012 tax software downloads gov that list total OID on certain debt instruments and have information that will help you figure OID. 2012 tax software downloads For the latest OID tables, go to www. 2012 tax software downloads irs. 2012 tax software downloads gov and enter “OID tables” in the Search box. 2012 tax software downloads If your debt instrument is not listed, consult the issuer for further information about the accrued OID for the year. 2012 tax software downloads Nominee. 2012 tax software downloads   If someone else is the holder of record (the registered owner) of an OID instrument belonging to you and receives a Form 1099-OID on your behalf, that person must give you a Form 1099-OID. 2012 tax software downloads Refiguring OID shown on Form 1099-OID. 2012 tax software downloads   You must refigure the OID shown in box 1 or box 8 of Form 1099-OID if either of the following apply. 2012 tax software downloads You bought the debt instrument after its original issue and paid a premium or an acquisition premium. 2012 tax software downloads The debt instrument is a stripped bond or a stripped coupon (including certain zero coupon instruments). 2012 tax software downloads For information about figuring the correct amount of OID to include in your income, see Figuring OID on Long-Term Debt Instruments in Publication 1212. 2012 tax software downloads Refiguring periodic interest shown on Form 1099-OID. 2012 tax software downloads   If you disposed of a debt instrument or acquired it from another holder during the year, see Bonds Sold Between Interest Dates , earlier, for information about the treatment of periodic interest that may be shown in box 2 of Form 1099-OID for that instrument. 2012 tax software downloads Certificates of deposit (CDs). 2012 tax software downloads   If you buy a CD with a maturity of more than 1 year, you must include in income each year a part of the total interest due and report it in the same manner as other OID. 2012 tax software downloads   This also applies to similar deposit arrangements with banks, building and loan associations, etc. 2012 tax software downloads , including: Time deposits, Bonus plans, Savings certificates, Deferred income certificates, Bonus savings certificates, and Growth savings certificates. 2012 tax software downloads Bearer CDs. 2012 tax software downloads   CDs issued after 1982 generally must be in registered form. 2012 tax software downloads Bearer CDs are CDs not in registered form. 2012 tax software downloads They are not issued in the depositor's name and are transferable from one individual to another. 2012 tax software downloads   Banks must provide the IRS and the person redeeming a bearer CD with a Form 1099-INT. 2012 tax software downloads More information. 2012 tax software downloads   See chapter 1 of Publication 550 for more information about OID and related topics, such as market discount bonds. 2012 tax software downloads When To Report Interest Income When to report your interest income depends on whether you use the cash method or an accrual method to report income. 2012 tax software downloads Cash method. 2012 tax software downloads   Most individual taxpayers use the cash method. 2012 tax software downloads If you use this method, you generally report your interest income in the year in which you actually or constructively receive it. 2012 tax software downloads However, there are special rules for reporting the discount on certain debt instruments. 2012 tax software downloads See U. 2012 tax software downloads S. 2012 tax software downloads Savings Bonds and Original Issue Discount (OID) , earlier. 2012 tax software downloads Example. 2012 tax software downloads On September 1, 2011, you loaned another individual $2,000 at 12%, compounded annually. 2012 tax software downloads You are not in the business of lending money. 2012 tax software downloads The note stated that principal and interest would be due on August 31, 2013. 2012 tax software downloads In 2013, you received $2,508. 2012 tax software downloads 80 ($2,000 principal and $508. 2012 tax software downloads 80 interest). 2012 tax software downloads If you use the cash method, you must include in income on your 2013 return the $508. 2012 tax software downloads 80 interest you received in that year. 2012 tax software downloads Constructive receipt. 2012 tax software downloads   You constructively receive income when it is credited to your account or made available to you. 2012 tax software downloads You do not need to have physical possession of it. 2012 tax software downloads For example, you are considered to receive interest, dividends, or other earnings on any deposit or account in a bank, savings and loan, or similar financial institution, or interest on life insurance policy dividends left to accumulate, when they are credited to your account and subject to your withdrawal. 2012 tax software downloads This is true even if they are not yet entered in your passbook. 2012 tax software downloads   You constructively receive income on the deposit or account even if you must: Make withdrawals in multiples of even amounts, Give a notice to withdraw before making the withdrawal, Withdraw all or part of the account to withdraw the earnings, or Pay a penalty on early withdrawals, unless the interest you are to receive on an early withdrawal or redemption is substantially less than the interest payable at maturity. 2012 tax software downloads Accrual method. 2012 tax software downloads   If you use an accrual method, you report your interest income when you earn it, whether or not you have received it. 2012 tax software downloads Interest is earned over the term of the debt instrument. 2012 tax software downloads Example. 2012 tax software downloads If, in the previous example, you use an accrual method, you must include the interest in your income as you earn it. 2012 tax software downloads You would report the interest as follows: 2011, $80; 2012, $249. 2012 tax software downloads 60; and 2013, $179. 2012 tax software downloads 20. 2012 tax software downloads Coupon bonds. 2012 tax software downloads   Interest on coupon bonds is taxable in the year the coupon becomes due and payable. 2012 tax software downloads It does not matter when you mail the coupon for payment. 2012 tax software downloads How To Report Interest Income Generally, you report all your taxable interest income on Form 1040, line 8a; Form 1040A, line 8a; or Form 1040EZ, line 2. 2012 tax software downloads You cannot use Form 1040EZ if your taxable interest income is more than $1,500. 2012 tax software downloads Instead, you must use Form 1040A or Form 1040. 2012 tax software downloads Form 1040A. 2012 tax software downloads   You must complete Schedule B (Form 1040A or 1040), Part I, if you file Form 1040A and any of the following are true. 2012 tax software downloads Your taxable interest income is more than $1,500. 2012 tax software downloads You are claiming the interest exclusion under the Education Savings Bond Program (discussed earlier). 2012 tax software downloads You received interest from a seller-financed mortgage, and the buyer used the property as a home. 2012 tax software downloads You received a Form 1099-INT for U. 2012 tax software downloads S. 2012 tax software downloads savings bond interest that includes amounts you reported before 2013. 2012 tax software downloads You received, as a nominee, interest that actually belongs to someone else. 2012 tax software downloads You received a Form 1099-INT for interest on frozen deposits. 2012 tax software downloads You are reporting OID in an amount less than the amount shown on Form 1099-OID. 2012 tax software downloads You received a Form 1099-INT for interest on a bond you bought between interest payment dates. 2012 tax software downloads You acquired taxable bonds after 1987 and choose to reduce interest income from the bonds by any amortizable bond premium (see Bond Premium Amortization in chapter 3 of Publication 550). 2012 tax software downloads List each payer's name and the amount of interest income received from each payer on line 1. 2012 tax software downloads If you received a Form 1099-INT or Form 1099-OID from a brokerage firm, list the brokerage firm as the payer. 2012 tax software downloads   You cannot use Form 1040A if you must use Form 1040, as described next. 2012 tax software downloads Form 1040. 2012 tax software downloads   You must use Form 1040 instead of Form 1040A or Form 1040EZ if: You forfeited interest income because of the early withdrawal of a time deposit; You acquired taxable bonds after 1987, you choose to reduce interest income from the bonds by any amortizable bond premium, and you are deducting the excess of bond premium amortization for the accrual period over the qualified stated interest for the period (see Bond Premium Amortization in chapter 3 of Publication 550); or You received tax-exempt interest from private activity bonds issued after August 7, 1986. 2012 tax software downloads Schedule B (Form 1040A or 1040). 2012 tax software downloads   You must complete Schedule B (Form 1040A or 1040), Part I, if you file Form 1040 and any of the following apply. 2012 tax software downloads Your taxable interest income is more than $1,500. 2012 tax software downloads You are claiming the interest exclusion under the Education Savings Bond Program (discussed earlier). 2012 tax software downloads You received interest from a seller-financed mortgage, and the buyer used the property as a home. 2012 tax software downloads You received a Form 1099-INT for U. 2012 tax software downloads S. 2012 tax software downloads savings bond interest that includes amounts you reported before 2013. 2012 tax software downloads You received, as a nominee, interest that actually belongs to someone else. 2012 tax software downloads You received a Form 1099-INT for interest on frozen deposits. 2012 tax software downloads You received a Form 1099-INT for interest on a bond you bought between interest payment dates. 2012 tax software downloads You are reporting OID in an amount less than the amount shown on Form 1099-OID. 2012 tax software downloads Statement (2) in the preceding list under Form 1040 is true. 2012 tax software downloads In Part I, line 1, list each payer's name and the amount received from each. 2012 tax software downloads If you received a Form 1099-INT or Form 1099-OID from a brokerage firm, list the brokerage firm as the payer. 2012 tax software downloads Reporting tax-exempt interest. 2012 tax software downloads   Total your tax-exempt interest (such as interest or accrued OID on certain state and municipal bonds, including tax-exempt interest on zero coupon municipal bonds) and exempt-interest dividends from a mutual fund as shown on Form 1099-INT, box 8, and on Form 1099-DIV, box 10. 2012 tax software downloads Add these amounts to any other tax-exempt interest you received. 2012 tax software downloads Report the total on line 8b of Form 1040A or 1040. 2012 tax software downloads   If you file Form 1040EZ, enter “TEI” and the amount in the space to the left of line 2. 2012 tax software downloads Do not add tax-exempt interest in the total on Form 1040EZ, line 2. 2012 tax software downloads   Form 1099-INT, box 9, and Form 1099-DIV, box 11, show the tax-exempt interest subject to the alternative minimum tax on Form 6251. 2012 tax software downloads These amounts are already included in the amounts on Form 1099-INT, box 8, and Form 1099-DIV, box 10. 2012 tax software downloads Do not add the amounts in Form 1099-INT, box 9 and Form 1099-DIV, box 11 to, or subtract them from, the amounts on Form 1099-INT, box 8, and Form 1099-DIV, box 10. 2012 tax software downloads    Do not report interest from an individual retirement account (IRA) as tax-exempt interest. 2012 tax software downloads Form 1099-INT. 2012 tax software downloads   Your taxable interest income, except for interest from U. 2012 tax software downloads S. 2012 tax software downloads savings bonds and Treasury obligations, is shown in box 1 of Form 1099-INT. 2012 tax software downloads Add this amount to any other taxable interest income you received. 2012 tax software downloads You must report all of your taxable interest income even if you do not receive a Form 1099-INT. 2012 tax software downloads Generally, contact your financial institution if you do not receive a Form 1099-INT by February 15. 2012 tax software downloads Your identifying number may be truncated on any paper Form 1099-INT you receive. 2012 tax software downloads   If you forfeited interest income because of the early withdrawal of a time deposit, the deductible amount will be shown on Form 1099-INT in box 2. 2012 tax software downloads See Penalty on early withdrawal of savings in chapter 1 of Publication 550. 2012 tax software downloads   Box 3 of Form 1099-INT shows the interest income you received from U. 2012 tax software downloads S. 2012 tax software downloads savings bonds, Treasury bills, Treasury notes, and Treasury bonds. 2012 tax software downloads Add the amount shown in box 3 to any other taxable interest income you received, unless part of the amount in box 3 was previously included in your interest income. 2012 tax software downloads If part of the amount shown in box 3 was previously included in your interest income, see U. 2012 tax software downloads S. 2012 tax software downloads savings bond interest previously reported , later. 2012 tax software downloads   Box 4 of Form 1099-INT will contain an amount if you were subject to backup withholding. 2012 tax software downloads Report the amount from box 4 on Form 1040EZ, line 7; on Form 1040A, line 36; or Form 1040, line 62 (federal income tax withheld). 2012 tax software downloads   Box 5 of Form 1099-INT shows investment expenses you may be able to deduct as an itemized deduction. 2012 tax software downloads See chapter 28 for more information about investment expenses. 2012 tax software downloads   If there are entries in boxes 6 and 7 of Form 1099-INT, you must file Form 1040. 2012 tax software downloads You may be able to take a credit for the amount shown in box 6 unless you deduct this amount on line 8 of Schedule A (Form 1040). 2012 tax software downloads To take the credit, you may have to file Form 1116, Foreign Tax Credit. 2012 tax software downloads For more information, see Publication 514, Foreign Tax Credit for Individuals. 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads savings bond interest previously reported. 2012 tax software downloads   If you received a Form 1099-INT for U. 2012 tax software downloads S. 2012 tax software downloads savings bond interest, the form may show interest you do not have to report. 2012 tax software downloads See Form 1099-INT for U. 2012 tax software downloads S. 2012 tax software downloads savings bonds interest , earlier, under U. 2012 tax software downloads S. 2012 tax software downloads Savings Bonds. 2012 tax software downloads   On Schedule B (Form 1040A or 1040), Part I, line 1, report all the interest shown on your Form 1099-INT. 2012 tax software downloads Then follow these steps. 2012 tax software downloads Several lines above line 2, enter a subtotal of all interest listed on line 1. 2012 tax software downloads Below the subtotal enter “U. 2012 tax software downloads S. 2012 tax software downloads Savings Bond Interest Previously Reported” and enter amounts previously reported or interest accrued before you received the bond. 2012 tax software downloads Subtract these amounts from the subtotal and enter the result on line 2. 2012 tax software downloads More information. 2012 tax software downloads   For more information about how to report interest income, see chapter 1 of Publication 550 or the instructions for the form you must file. 2012 tax software downloads Prev  Up  Next   Home   More Online Publications
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Federal Payment Levy Program

In July 2000, the IRS, in conjunction with the Department of the Treasury, Financial Management Service (FMS), started the Federal Payment Levy Program (FPLP) which is authorized by Internal Revenue Code Section 6331 (h), as prescribed by the Taxpayer Relief Act of 1997 Section 1024. Through this program, we can collect your overdue taxes through a continuous levy on certain federal payments disbursed by FMS. The following is a list of federal payments that can be levied through the FPLP:

  • federal employee retirement annuities,
  • federal payments made to you as a contractor/vendor doing business with the government (including Defense contracts),
  • federal employee travel advances or reimbursements,
  • certain Social Security benefits paid to you,
  • some federal salaries, 
  • Medicare provider and supplier payments.
  • Railroad Retirement Board benefits paid to you.

In the future, the program will expand to include additional federal employee salaries and other types of federal payments.

Federal payments to a delinquent taxpayer will not be included in the program in certain circumstances. These circumstances include, when you are in bankruptcy, have applied for relief as an innocent or injured spouse, made alternative arrangements to pay, or the IRS has determined you are in a hardship situation.

As part of this program, a file of delinquent accounts is transmitted to FMS to be matched against pending federal payments you are due. When a match is found, we send you a Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing, CP 90 or CP 297, if another Final Notice has not already been issued. See Tax Information for Appeals for additional information about your right to a hearing.

If we don't hear from you within 30 days from the date of the Final Notice, we will transmit the levy electronically to FMS. This applies to all federal payments that can be levied except for certain Social Security benefits. See Publication 594, The IRS Collection Process, and Publication 1, Your Rights as a Taxpayer , for additional information.

A levy may be transmitted to FMS without issuing a Final Notice if you previously requested a Collection Due Process (CDP) hearing on employment taxes. The Small Business and Work Opportunity Tax Act of 2007 amended I.R.C. Section 6330(f) and permits such a levy. If you requested a CDP hearing on previous employment taxes NO MORE THAN 2 years prior to the employment taxes being levied, we will send you a Notice of Levy and Notice of Your Right to a Hearing, CP 297A.

A levy may be transmitted to FMS without issuing a Final Notice if you or your predecessor is a Federal contractor.The Small Business Jobs Act of 2010 amended IRC Section 6330(f) and permits the IRS to issue such a levy.  We will send you a post levy notice, Notice of Levy and Notice of Your Right to a Hearing, CP 90C or CP 297C.

From that point on, FMS may reduce any federal payments subject to the levy by 15 percent, or the exact amount of tax owed if it is less than 15 percent of the payment.  Some contract/vendor payments, however, will be reduced by 100 percent, or the exact amount of tax owed. The levy is continuous until your overdue taxes are paid in full, or other arrangements are made to satisfy the debt. Each time your federal payment is levied, FMS will send you a letter of explanation, including information on which federal payment was levied, and advise you to contact us for resolution.

Contact us toll-free at 1-800-829-7650 or 1-800-829-3903 to resolve the issue by paying the tax bill, entering into an installment agreement, or proposing an Offer in Compromise. Please do not contact the FMS, OPM, SSA, or any other federal agency. See Topic 202, What to Do if You Can't Pay Your Tax, and Topic 204, Offers In Compromise, for additional information.

 

Page Last Reviewed or Updated: 07-Jan-2014

The 2012 Tax Software Downloads

2012 tax software downloads Index A Alien Resident, Resident alien. 2012 tax software downloads American Institute in Taiwan, U. 2012 tax software downloads S. 2012 tax software downloads employees of, American Institute in Taiwan. 2012 tax software downloads American Samoa, possession exclusion, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Apprentices, treaty benefits for, Common Benefits Assistance (see Tax help) B Binational social security agreements, Bilateral Social Security (Totalization) Agreements Blocked income, Blocked Income Bona fide residence test Defined, Bona Fide Residence Test First year, Bona fide resident for part of a year. 2012 tax software downloads Last year, Bona fide resident for part of a year. 2012 tax software downloads Meeting the requirements, Publication 54 - Additional Material Qualifying for, Bona fide residence. 2012 tax software downloads , Reassignment. 2012 tax software downloads Treaty provisions, Special agreements and treaties. 2012 tax software downloads Voting by absentee ballot, Effect of voting by absentee ballot. 2012 tax software downloads Waiver of time requirements, Waiver of Time Requirements, U. 2012 tax software downloads S. 2012 tax software downloads Travel Restrictions C Camps, foreign, Foreign camps. 2012 tax software downloads Carryover of housing deduction, Carryover. 2012 tax software downloads Change of address, Reminders Choosing the exclusion, Choosing the Exclusion, When You Can Choose the Exclusion Clergy, self-employment tax on, Members of the Clergy Community income, Community income. 2012 tax software downloads Competent authority assistance, Competent Authority Assistance Contributions To foreign charitable organizations, Contributions to Foreign Charitable Organizations To IRAs, Contributions to Individual Retirement Arrangements Conventions, income tax, Purpose of Tax Treaties Credit Earned income, Earned income credit. 2012 tax software downloads , Earned income credit. 2012 tax software downloads Foreign tax, Foreign tax credit. 2012 tax software downloads , Taxes of Foreign Countries and U. 2012 tax software downloads S. 2012 tax software downloads Possessions, Deduction for Other Foreign Taxes, Common Benefits Related to excluded income, Items Related to Excluded Income Currency Foreign, Foreign Currency D Deductions Contributions to foreign charitable organizations, Contributions to Foreign Charitable Organizations Foreign taxes, Taxes of Foreign Countries and U. 2012 tax software downloads S. 2012 tax software downloads Possessions, Deduction for Other Foreign Taxes, Common Benefits, Publication 54 - Additional Material Housing, foreign, Foreign Housing Deduction IRA contributions, Contributions to Individual Retirement Arrangements Moving expenses, Moving Expenses, Forms To File Related to excluded income, Items Related to Excluded Income Reporting, How To Report Deductions Dependents Exemption for, Exemptions, Publication 54 - Additional Material Individual taxpayer identification number (ITIN), Social security number. 2012 tax software downloads Social security number, Social security number. 2012 tax software downloads Deposit of foreign currency with disbursing officer, Deposit of foreign currency with disbursing officer. 2012 tax software downloads E Earned income Foreign, Foreign Earned Income, Foreign camps. 2012 tax software downloads , Publication 54 - Additional Material Source of, Source of Earned Income Types of, Earned and Unearned Income, Storage expense reimbursements. 2012 tax software downloads Earned income credit, Earned income credit. 2012 tax software downloads , Earned income credit. 2012 tax software downloads Employer-provided amounts, Employer-provided amounts. 2012 tax software downloads Estimated tax, Estimated Tax Exclusion Foreign earned income, Foreign Earned Income Exclusion, When You Can Choose the Exclusion Housing, Foreign Housing Exclusion, Choosing the exclusion. 2012 tax software downloads Meals and lodging, Exclusion of Meals and Lodging U. 2012 tax software downloads S. 2012 tax software downloads possessions, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Exemptions Dependents, Exemptions, Publication 54 - Additional Material Spouse, Exemptions, Publication 54 - Additional Material Extensions Filing income tax return, Extensions, Return filed before test is met. 2012 tax software downloads Meeting bona fide residence or physical presence test, Extension of time to meet tests. 2012 tax software downloads F Fellowships, Scholarships and fellowships. 2012 tax software downloads Figuring estimated tax on nonconvertible foreign income, Figuring estimated tax on nonconvertible foreign currency. 2012 tax software downloads Figuring U. 2012 tax software downloads S. 2012 tax software downloads income tax, Figuring actual tax. 2012 tax software downloads Filing information Estimated tax, Estimated Tax Filing requirements, Filing Requirements Nonresident spouse treated as resident, Nonresident Alien Spouse Treated as a Resident, Foreign earned income exclusion. 2012 tax software downloads Filing requirements By filing status, Filing Requirements Foreign currency, Foreign Currency When to file and pay, When To File and Pay, Return filed before test is met. 2012 tax software downloads , Publication 54 - Additional Material Where to file, Where To File, Publication 54 - Additional Material Foreign Camps, Foreign camps. 2012 tax software downloads Country, defined, Foreign Country Currency, Foreign Currency Earned income, Foreign Earned Income, Foreign camps. 2012 tax software downloads , Publication 54 - Additional Material Household, second, Second foreign household. 2012 tax software downloads Foreign currency, deposit with disbursing officer, Deposit of foreign currency with disbursing officer. 2012 tax software downloads Foreign earned income Defined, Foreign Earned Income, More information. 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads Government employees, U. 2012 tax software downloads S. 2012 tax software downloads Government Employees, More information. 2012 tax software downloads Foreign earned income exclusion Choosing, Choosing the Exclusion, When You Can Choose the Exclusion Defined, Foreign Earned Income Exclusion Earned income credit, Earned income credit. 2012 tax software downloads Foreign tax credit, Foreign tax credit or deduction. 2012 tax software downloads Income received after year earned, Paid in year following work. 2012 tax software downloads , Example. 2012 tax software downloads Limit, Limit on Excludable Amount, Physical presence test. 2012 tax software downloads , Publication 54 - Additional Material Maximum exclusion, Limit on Excludable Amount, Physical presence test. 2012 tax software downloads Part-year exclusion, Part-year exclusion. 2012 tax software downloads Physical presence test, maximum exclusion, Physical presence test. 2012 tax software downloads Requirements, Who Qualifies for the Exclusions and the Deduction?, Foreign camps. 2012 tax software downloads Revoking choice, Revoking the Exclusion Foreign housing exclusion Earned income credit, Earned income credit. 2012 tax software downloads Foreign tax credit, Foreign tax credit or deduction. 2012 tax software downloads Foreign housing exclusion/deduction Carryover of deduction, Carryover. 2012 tax software downloads Deduction, figuring, Foreign Housing Deduction Exclusion, figuring, Foreign Housing Exclusion, Choosing the exclusion. 2012 tax software downloads Housing amount, Housing Amount Housing expenses, Housing expenses. 2012 tax software downloads Married couples, Married Couples Requirements, Who Qualifies for the Exclusions and the Deduction?, Foreign camps. 2012 tax software downloads Second foreign household, Second foreign household. 2012 tax software downloads Foreign tax credit Earned income exclusion, Foreign tax credit or deduction. 2012 tax software downloads , Foreign tax credit or deduction. 2012 tax software downloads Foreign taxes Credit for, Foreign tax credit. 2012 tax software downloads , Taxes of Foreign Countries and U. 2012 tax software downloads S. 2012 tax software downloads Possessions, Deduction for Other Foreign Taxes, Common Benefits Deduction for, Taxes of Foreign Countries and U. 2012 tax software downloads S. 2012 tax software downloads Possessions, Deduction for Other Foreign Taxes, Common Benefits, Publication 54 - Additional Material Paid on excluded income, Foreign taxes paid on excluded income. 2012 tax software downloads Form 1040-ES, Estimated Tax 1040X, Return filed before test is met. 2012 tax software downloads , How To Make the Choice 1116, Credit for Foreign Income Taxes 2032, Foreign affiliate. 2012 tax software downloads 2350, How to get an extension. 2012 tax software downloads 2555, Choosing the Exclusion, Form 2555 and Form 2555-EZ, Form 2555 2555-EZ, Choosing the Exclusion, Form 2555 and Form 2555-EZ, Form 2555 3115, Blocked Income 3903, Forms To File 4361, Members of the Clergy 4563, American Samoa. 2012 tax software downloads 4868, Automatic 6-month extension. 2012 tax software downloads 673, Statement. 2012 tax software downloads 8689, Non-USVI resident with USVI income. 2012 tax software downloads 8822, Reminders W-4, Foreign tax credit. 2012 tax software downloads Free tax services, Free help with your tax return. 2012 tax software downloads Frequently asked questions (FAQs), Publication 54 - Additional Material Fulbright grant, Fulbright Grant, Publication 54 - Additional Material G General tax questions, Publication 54 - Additional Material Green card test, Resident alien. 2012 tax software downloads Guam Possession exclusion, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Residents of, Resident of Guam. 2012 tax software downloads Where to file, Resident of Guam. 2012 tax software downloads H Help (see Tax help) Housing Amount, Housing Amount, Self-employed and employer-provided amounts. 2012 tax software downloads Deduction, Foreign Housing Exclusion and Deduction, Foreign Housing Deduction Exclusion, Foreign Housing Exclusion and Deduction, Choosing the exclusion. 2012 tax software downloads Expenses, Housing expenses. 2012 tax software downloads I Income Apprentices, treaty benefits for, Common Benefits Artist, Income of an artist. 2012 tax software downloads Blocked, Blocked Income Community, Community income. 2012 tax software downloads Corporation, Income from a corporation. 2012 tax software downloads Earned, Foreign Earned Income, Foreign camps. 2012 tax software downloads , Publication 54 - Additional Material Employer's property or facilities, use of, Use of employer's property or facilities. 2012 tax software downloads Investment, treaty benefits for, Common Benefits Partnership, Income from a sole proprietorship or partnership. 2012 tax software downloads Pensions and annuities, Pensions and annuities. 2012 tax software downloads , Common Benefits Personal service, treaty benefits for, Common Benefits Professional fees, Professional fees. 2012 tax software downloads Professors, treaty benefits for, Common Benefits Railroad retirement benefits, Publication 54 - Additional Material Reimbursement of employee expenses, Reimbursement of employee expenses. 2012 tax software downloads Reimbursement of moving expenses, Reimbursement of moving expenses. 2012 tax software downloads Rental, Rental income. 2012 tax software downloads Royalties, Royalties. 2012 tax software downloads Social security benefits, Publication 54 - Additional Material Sole proprietorship, Income from a sole proprietorship or partnership. 2012 tax software downloads Source of, Source of Earned Income Stock options, Stock options. 2012 tax software downloads Students, treaty benefits for, Common Benefits Teachers, treaty benefits for, Common Benefits Trainees, treaty benefits for, Common Benefits Unearned, Earned and Unearned Income Indefinite assignment, Temporary or Indefinite Assignment Individual retirement arrangements (IRAs), Contributions to Individual Retirement Arrangements Individual taxpayer identification number (ITIN), Social security number. 2012 tax software downloads Investment income, treaty benefits for, Common Benefits IRAs, Contributions to Individual Retirement Arrangements L Limit on Foreign housing deduction, Limit Housing expenses, Limit on housing expenses. 2012 tax software downloads Income exclusion, Limit on Excludable Amount, Physical presence test. 2012 tax software downloads Lodging, exclusion of, Exclusion of Meals and Lodging M Married couples, Married Couples Meals and lodging, exclusion of, Exclusion of Meals and Lodging Moving Allocating expenses, Allocation of Moving Expenses Deducting expenses, Moving Expenses, Forms To File Reimbursement of expenses, Reimbursement of moving expenses. 2012 tax software downloads N Nonresident spouse Social security number, Social Security Number (SSN) Treated as resident, Nonresident Alien Spouse Treated as a Resident, Foreign earned income exclusion. 2012 tax software downloads Northern Mariana Islands Possession exclusion, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Residents of, Resident of the Commonwealth of the Northern Mariana Islands. 2012 tax software downloads Where to file, Resident of the Commonwealth of the Northern Mariana Islands. 2012 tax software downloads P Part-year exclusion, Part-year exclusion. 2012 tax software downloads Pay for personal services, Earned income. 2012 tax software downloads , Common Benefits Paying U. 2012 tax software downloads S. 2012 tax software downloads tax in foreign currency, Paying U. 2012 tax software downloads S. 2012 tax software downloads tax in foreign currency. 2012 tax software downloads Payment of tax, When To File and Pay Penalties and interest, Publication 54 - Additional Material Pensions and annuities Income from, Pensions and annuities. 2012 tax software downloads , Common Benefits Withholding from, Withholding from pension payments. 2012 tax software downloads Physical presence test 12-month period, How to figure the 12-month period. 2012 tax software downloads Defined, Physical Presence Test Maximum exclusion, Physical presence test. 2012 tax software downloads Meeting the requirements, Publication 54 - Additional Material Waiver of time requirements, Waiver of Time Requirements, U. 2012 tax software downloads S. 2012 tax software downloads Travel Restrictions Professors, treaty benefits for, Common Benefits Publications (see Tax help) Puerto Rico Possession exclusion, Puerto Rico and U. 2012 tax software downloads S. 2012 tax software downloads Virgin Islands Residents of, Puerto Rico. 2012 tax software downloads Q Questions and answers, Publication 54 - Additional Material R Railroad retirement benefits, Publication 54 - Additional Material Reimbursement Accountable plan, Accountable plan. 2012 tax software downloads Employee expenses, Reimbursement of employee expenses. 2012 tax software downloads Moving expenses, Reimbursement of moving expenses. 2012 tax software downloads Resident alien defined, Resident alien. 2012 tax software downloads Revoking choice to exclude, Revoking the Exclusion S Scholarship and fellowship grants, Publication 54 - Additional Material Scholarships, Scholarships and fellowships. 2012 tax software downloads Second foreign household, Second foreign household. 2012 tax software downloads , Married Couples Self-employment tax Clergy, Members of the Clergy Exemption from, Exemption From Social Security and Medicare Taxes How to pay, Publication 54 - Additional Material Who must pay, Who Must Pay Self-Employment Tax? Social security and Medicare taxes, Social Security and Medicare Taxes Social security benefits, Publication 54 - Additional Material Social security number Dependents, Social security number. 2012 tax software downloads Nonresident spouse, Social Security Number (SSN) Source of earned income, Source of Earned Income Spouse, exemption for, Exemptions, Publication 54 - Additional Material Students, treaty benefits for, Common Benefits Substantial presence test, Resident alien. 2012 tax software downloads T Taiwan, American Institute in, American Institute in Taiwan. 2012 tax software downloads Tax help, How To Get Tax Help Tax home, Tax Home in Foreign Country, Temporary or Indefinite Assignment Tax treaties Benefits of, Common Benefits, More information on treaties. 2012 tax software downloads Competent authority assistance, Competent Authority Assistance Determining residence, Special agreements and treaties. 2012 tax software downloads Obtaining copies of, Obtaining Copies of Tax Treaties Purpose of, Purpose of Tax Treaties Teachers, treaty benefits for, Common Benefits Temporary assignment, expenses, Temporary or Indefinite Assignment Totalization agreements, Bilateral Social Security (Totalization) Agreements Trainees, treaty benefits for, Common Benefits Travel restrictions, U. 2012 tax software downloads S. 2012 tax software downloads Travel Restrictions Treaties (see Tax treaties) TTY/TDD information, How To Get Tax Help U U. 2012 tax software downloads S. 2012 tax software downloads Government employees, U. 2012 tax software downloads S. 2012 tax software downloads Government Employees, More information. 2012 tax software downloads U. 2012 tax software downloads S. 2012 tax software downloads Virgin Islands Possession exclusion, Puerto Rico and U. 2012 tax software downloads S. 2012 tax software downloads Virgin Islands V Virgin Islands Nonresidents of, Non-USVI resident with USVI income. 2012 tax software downloads Residents of, Resident of U. 2012 tax software downloads S. 2012 tax software downloads Virgin Islands (USVI). 2012 tax software downloads Where to file, Resident of U. 2012 tax software downloads S. 2012 tax software downloads Virgin Islands (USVI). 2012 tax software downloads W Waiver of time requirements, Waiver of Time Requirements, U. 2012 tax software downloads S. 2012 tax software downloads Travel Restrictions When to file and pay, When To File and Pay, Return filed before test is met. 2012 tax software downloads , Publication 54 - Additional Material Where to file Claiming exclusion/deduction, Where To File Commonwealth of the Northern Mariana Islands residents, Resident of the Commonwealth of the Northern Mariana Islands. 2012 tax software downloads Guam residents, Resident of Guam. 2012 tax software downloads No legal residence in U. 2012 tax software downloads S. 2012 tax software downloads , Where To File Virgin Islands residents, nonresidents, Resident of U. 2012 tax software downloads S. 2012 tax software downloads Virgin Islands (USVI). 2012 tax software downloads Withholding Income tax, Income Tax Withholding , Publication 54 - Additional Material Pension payments, Withholding from pension payments. 2012 tax software downloads Prev  Up     Home   More Online Publications