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Free 1040ez online Publication 1212 - Main Content Table of Contents Definitions Debt Instruments on the OID List Debt Instruments Not on the OID List Information for Brokers and Other MiddlemenShort-Term Obligations Redeemed at Maturity Long-Term Debt Instruments Certificates of Deposit Bearer Bonds and Coupons Backup Withholding Information for Owners of OID Debt InstrumentsExceptions. Free 1040ez online Adjustment for premium. Free 1040ez online Adjustment for acquisition premium. Free 1040ez online Adjustment for market discount. Free 1040ez online Form 1099-OID How To Report OID Figuring OID on Long-Term Debt Instruments Figuring OID on Stripped Bonds and Coupons How To Get Tax HelpLow Income Taxpayer Clinics Definitions The following terms are used throughout this publication. Free 1040ez online “Original issue discount” is defined first. Free 1040ez online The other terms are listed alphabetically. Free 1040ez online Original issue discount (OID). Free 1040ez online   OID is a form of interest. Free 1040ez online It is the excess of a debt instrument's stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). Free 1040ez online Zero coupon bonds and debt instruments that pay no stated interest until maturity are examples of debt instruments that have OID. Free 1040ez online Accrual period. Free 1040ez online   An accrual period is an interval of time used to measure OID. Free 1040ez online The length of an accrual period can be 6 months, a year, or some other period, depending on when the debt instrument was issued. Free 1040ez online Acquisition premium. Free 1040ez online   Acquisition premium is the excess of a debt instrument's adjusted basis immediately after purchase, including purchase at original issue, over the debt instrument's adjusted issue price at that time. Free 1040ez online A debt instrument does not have acquisition premium, however, if the debt instrument was purchased at a premium. Free 1040ez online See Premium, later. Free 1040ez online Adjusted issue price. Free 1040ez online   The adjusted issue price of a debt instrument at the beginning of an accrual period is used to figure the OID allocable to that period. Free 1040ez online In general, the adjusted issue price at the beginning of the debt instrument's first accrual period is its issue price. Free 1040ez online The adjusted issue price at the beginning of any subsequent accrual period is the sum of the issue price and all the OID includible in income before that accrual period minus any payment previously made on the debt instrument, other than a payment of qualified stated interest. Free 1040ez online Debt instrument. Free 1040ez online   The term “debt instrument” means any instrument or contractual arrangement that constitutes indebtedness under general principles of federal income tax law (including, for example, a bond, debenture, note, certificate, or other evidence of indebtedness). Free 1040ez online It generally does not include an annuity contract. Free 1040ez online Issue price. Free 1040ez online   For debt instruments listed in Section I-A and Section I-B, the issue price generally is the initial offering price to the public (excluding bond houses and brokers) at which a substantial amount of these instruments was sold. Free 1040ez online Market discount. Free 1040ez online   Market discount arises when a debt instrument purchased in the secondary market has decreased in value since its issue date, generally because of an increase in interest rates. Free 1040ez online An OID debt instrument has market discount if your adjusted basis in the debt instrument immediately after you acquired it (usually its purchase price) was less than the debt instrument's issue price plus the total OID that accrued before you acquired it. Free 1040ez online The market discount is the difference between the issue price plus accrued OID and your adjusted basis. Free 1040ez online Premium. Free 1040ez online   A debt instrument is purchased at a premium if its adjusted basis immediately after purchase is greater than the total of all amounts payable on the debt instrument after the purchase date, other than qualified stated interest. Free 1040ez online The premium is the excess of the adjusted basis over the payable amounts. Free 1040ez online See Publication 550 for information on the tax treatment of bond premium. Free 1040ez online Qualified stated interest. Free 1040ez online   In general, qualified stated interest is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually over the term of the debt instrument at a single fixed rate. Free 1040ez online Stated redemption price at maturity. Free 1040ez online   A debt instrument's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on the debt instrument other than qualified stated interest. Free 1040ez online Yield to maturity (YTM). Free 1040ez online   In general, the YTM is the discount rate that, when used in figuring the present value of all principal and interest payments, produces an amount equal to the issue price of the debt instrument. Free 1040ez online The YTM is generally shown on the face of the debt instrument or in the literature you receive from your broker. Free 1040ez online If you do not have this information, consult your broker, tax advisor, or the issuer. Free 1040ez online Debt Instruments on the OID List The OID list on the IRS website can be used by brokers and other middlemen to prepare information returns. Free 1040ez online If you own a listed debt instrument, you generally should not rely on the information in the OID list to determine (or compare) the OID to be reported on your tax return. Free 1040ez online The OID amounts listed are figured without reference to the price or date at which you acquired the debt instrument. Free 1040ez online For information about determining the OID to be reported on your tax return, see the instructions for figuring OID under Information for Owners of OID Debt Instruments, later. Free 1040ez online The following discussions explain what information is contained in each section of the list. Free 1040ez online Section I. Free 1040ez online   This section contains publicly offered, long-term debt instruments. Free 1040ez online Section I-A: Corporate Debt Instruments Issued Before 1985. Free 1040ez online Section I-B: Corporate Debt Instruments Issued After 1984. Free 1040ez online Section I-C: Inflation-Indexed Debt Instruments. Free 1040ez online For each publicly offered debt instrument in Section I, the list contains the following information. Free 1040ez online The name of the issuer. Free 1040ez online The Committee on Uniform Security Identification Procedures (CUSIP) number. Free 1040ez online The issue date. Free 1040ez online The maturity date. Free 1040ez online The issue price expressed as a percent of principal or of stated redemption price at maturity. Free 1040ez online The annual stated or coupon interest rate. Free 1040ez online (This rate is shown as 0. Free 1040ez online 00 if no annual interest payments are provided. Free 1040ez online ) The yield to maturity will be added to Section I-B for bonds issued after December 31, 2006. Free 1040ez online The total OID accrued up to January 1 of a calendar year. Free 1040ez online (This information is not available for every instrument. Free 1040ez online ) For long-term debt instruments issued after July 1, 1982, the daily OID for the accrual periods falling in a calendar year and a subsequent year. Free 1040ez online The total OID per $1,000 of principal or maturity value for a calendar year and a subsequent year. Free 1040ez online Section II. Free 1040ez online   This section contains stripped coupons and principal components of U. Free 1040ez online S. Free 1040ez online Treasury and Government-Sponsored Enterprise debt instruments. Free 1040ez online These stripped components are available through the Department of the Treasury's Separate Trading of Registered Interest and Principal of Securities (STRIPS) program and government-sponsored enterprises such as the Resolution Funding Corporation. Free 1040ez online This section also includes debt instruments backed by U. Free 1040ez online S. Free 1040ez online Treasury securities that represent ownership interests in those securities. Free 1040ez online   The obligations listed in Section II are arranged by maturity date. Free 1040ez online The amounts listed are the total OID for a calendar year per $1,000 of redemption price. Free 1040ez online Section III. Free 1040ez online   This section contains short-term discount obligations. Free 1040ez online Section III-A: Short-Term U. Free 1040ez online S. Free 1040ez online Treasury Bills. Free 1040ez online Section III-B: Federal Home Loan Banks. Free 1040ez online Section III-C: Federal National Mortgage Association. Free 1040ez online Section III-D: Federal Farm Credit Banks. Free 1040ez online Section III-E: Federal Home Loan Mortgage Corporation. Free 1040ez online Section III-F: Federal Agricultural Mortgage Corporation. Free 1040ez online    Information that supplements Section III-A is available on the Internet at http://www. Free 1040ez online treasurydirect. Free 1040ez online gov/tdhome. Free 1040ez online htm. Free 1040ez online   The short-term obligations listed in this section are arranged by maturity date. Free 1040ez online For each obligation, the list contains the CUSIP number, maturity date, issue date, issue price (expressed as a percent of principal), and discount to be reported as interest for a calendar year per $1,000 of redemption price. Free 1040ez online Brokers and other middlemen should rely on the issue price information in Section III only if they are unable to determine the price actually paid by the owner. Free 1040ez online Debt Instruments Not on the OID List The list of debt instruments discussed earlier does not contain the following items. Free 1040ez online U. Free 1040ez online S. Free 1040ez online savings bonds. Free 1040ez online Certificates of deposit and other face-amount certificates issued at a discount, including syndicated certificates of deposit. Free 1040ez online Obligations issued by tax-exempt organizations. Free 1040ez online OID debt instruments that matured or were entirely called by the issuer before the tables were posted on the IRS website. Free 1040ez online Mortgage-backed securities and mortgage participation certificates. Free 1040ez online Long-term OID debt instruments issued before May 28, 1969. Free 1040ez online Short-term obligations, other than the obligations listed in Section III. Free 1040ez online Debt instruments issued at a discount by states or their political subdivisions. Free 1040ez online REMIC regular interests and CDOs. Free 1040ez online Commercial paper and banker's acceptances issued at a discount. Free 1040ez online Obligations issued at a discount by individuals. Free 1040ez online Foreign obligations not traded in the United States and obligations not issued in the United States. Free 1040ez online Information for Brokers and Other Middlemen The following discussions contain specific instructions for brokers and middlemen who hold or redeem a debt instrument for the owner. Free 1040ez online In general, you must file a Form 1099 for the debt instrument if the interest or OID to be included in the owner's income for a calendar year totals $10 or more. Free 1040ez online You also must file a Form 1099 if you were required to deduct and withhold tax, even if the interest or OID is less than $10. Free 1040ez online See Backup Withholding, later. Free 1040ez online If you must file a Form 1099, furnish a copy to the owner of the debt instrument by January 31 in the year it is due. Free 1040ez online File all your Forms 1099 with the IRS, accompanied by Form 1096, by February 28 in the year it is due (March 31 if you file electronically). Free 1040ez online Electronic payee statements. Free 1040ez online   You can issue Form 1099-OID electronically with the consent of the recipient. Free 1040ez online More information. Free 1040ez online   For more information, including penalties for failure to file (or furnish) required information returns or statements, see the General Instructions for Certain Information Returns (Forms 1098, 1099, 3921, 3922, 5498, and W-2G) for the appropriate calendar year. Free 1040ez online Short-Term Obligations Redeemed at Maturity If you redeem a short-term discount obligation for the owner at maturity, you must report the discount as interest on Form 1099-INT. Free 1040ez online To figure the discount, use the purchase price shown on the owner's copy of the purchase confirmation receipt or similar record, or the price shown in your transaction records. Free 1040ez online If you sell the obligation for the owner before maturity, you must file Form 1099-B to reflect the gross proceeds to the seller. Free 1040ez online Do not report the accrued discount to the date of sale on either Form 1099-INT or Form 1099-OID. Free 1040ez online If the owner's purchase price cannot be determined, figure the discount as if the owner had purchased the obligation at its original issue price. Free 1040ez online A special rule is used to determine the original issue price for information reporting on U. Free 1040ez online S. Free 1040ez online Treasury bills (T-bills) listed in Section III-A. Free 1040ez online Under this rule, you treat as the original issue price of the T-bill the noncompetitive (weighted average of accepted auction bids) discount price for the longest-maturity T-bill maturing on the same date as the T-bill being redeemed. Free 1040ez online This noncompetitive discount price is the issue price (expressed as a percent of principal) shown in Section III-A. Free 1040ez online A similar rule is used to figure the discount on short-term discount obligations issued by the organizations listed in Section III-B through Section III-F. Free 1040ez online Example 1. Free 1040ez online There are 13-week and 26-week T-bills maturing on the same date as the T-bill being redeemed. Free 1040ez online The price actually paid by the owner cannot be established by owner or middleman records. Free 1040ez online You treat as the issue price of the T-bill the noncompetitive discount price (expressed as a percent of principal) shown in Section III-A for a 26-week bill maturing on the same date as the T-bill redeemed. Free 1040ez online The interest you report on Form 1099-INT is the OID (per $1,000 of principal) shown in Section III-A for that obligation. Free 1040ez online Long-Term Debt Instruments If you hold a long-term OID debt instrument as a nominee for the true owner, you generally must file Form 1099-OID. Free 1040ez online For this purpose, you can rely on Section I of the OID list to determine the following information. Free 1040ez online Whether a debt instrument has OID. Free 1040ez online The OID to be reported on the Form 1099-OID. Free 1040ez online In general, you must report OID on publicly offered, long-term debt instruments listed in Section I. Free 1040ez online You also can report OID on other long-term debt instruments. Free 1040ez online Form 1099-OID. Free 1040ez online   On Form 1099-OID for a calendar year show the following information. Free 1040ez online Box 1. Free 1040ez online The OID for the actual dates the owner held the debt instruments during a calendar year. Free 1040ez online To determine this amount, see Figuring OID, next. Free 1040ez online Box 2. Free 1040ez online The qualified stated interest paid or credited during the calendar year. Free 1040ez online Interest reported here is not reported on Form 1099-INT. Free 1040ez online The qualified stated interest on Treasury inflation-protected securities may be reported on Form 1099-INT in box 3 instead. Free 1040ez online Box 3. Free 1040ez online Any interest or principal forfeited because of an early withdrawal that the owner can deduct from gross income. Free 1040ez online Do not reduce the amounts in boxes 1 and 2 by the forfeiture. Free 1040ez online Box 4. Free 1040ez online Any backup withholding for this debt instrument. Free 1040ez online Box 7. Free 1040ez online The CUSIP number, if any. Free 1040ez online If there is no CUSIP number, give a description of the debt instrument, including the abbreviation for the stock exchange, the abbreviation used by the stock exchange for the issuer, the coupon rate, and the year of maturity (for example, NYSE XYZ 12. Free 1040ez online 50 2006). Free 1040ez online If the issuer of the debt instrument is other than the payer, show the name of the issuer in this box. Free 1040ez online Box 8. Free 1040ez online The OID on a U. Free 1040ez online S. Free 1040ez online Treasury obligation for the part of the year the owner held the debt instrument. Free 1040ez online Box 9. Free 1040ez online Investment expenses passed on to holders of a single-class REMIC. Free 1040ez online Boxes 10-12. Free 1040ez online Use to report any state income tax withheld for this debt instrument. Free 1040ez online Figuring OID. Free 1040ez online   You can determine the OID on a long-term debt instrument by using either of the following. Free 1040ez online Section I of the OID list. Free 1040ez online The income tax regulations. Free 1040ez online Using Section I. Free 1040ez online   If the owner held the debt instrument for the entire calendar year, report the OID shown in Section I for the calendar year. Free 1040ez online Because OID is listed for each $1,000 of stated redemption price at maturity, you must adjust the listed amount to reflect the debt instrument's actual stated redemption price at maturity. Free 1040ez online For example, if the debt instrument's stated redemption price at maturity is $500, report one-half the listed OID. Free 1040ez online   If the owner held the debt instrument for less than the entire calendar year, figure the OID to report as follows. Free 1040ez online Look up the daily OID for the first accrual period in the calendar year during which the owner held the debt instrument. Free 1040ez online Multiply the daily OID by the number of days the owner held the debt instrument during that accrual period. Free 1040ez online Repeat steps (1) and (2) for any remaining accrual periods for the year during which the owner held the debt instrument. Free 1040ez online Add the results in steps (2) and (3) to determine the owner's OID per $1,000 of stated redemption price at maturity. Free 1040ez online If necessary, adjust the OID in (4) to reflect the debt instrument's stated redemption price at maturity. Free 1040ez online Report the result on Form 1099-OID in box 1. Free 1040ez online Using the income tax regulations. Free 1040ez online   Instead of using Section I to figure OID, you can use the regulations under sections 1272 through 1275 of the Internal Revenue Code. Free 1040ez online For example, under the regulations, you can use monthly accrual periods in figuring OID for a debt instrument issued after April 3, 1994, that provides for monthly payments. Free 1040ez online (If you use Section I-B, the OID is figured using 6-month accrual periods. Free 1040ez online )   For a general explanation of the rules for figuring OID under the regulations, see Figuring OID on Long-Term Debt Instruments under Information for Owners of OID Debt Instruments, later. Free 1040ez online Certificates of Deposit If you hold a bank certificate of deposit (CD) as a nominee, you must determine whether the CD has OID and any OID includible in the income of the owner. Free 1040ez online You must file an information return showing the reportable interest and OID, if any, on the CD. Free 1040ez online These rules apply whether or not you sold the CD to the owner. Free 1040ez online Report OID on a CD in the same way as OID on other debt instruments. Free 1040ez online See Short-Term Obligations Redeemed at Maturity and Long-Term Debt Instruments, earlier. Free 1040ez online Bearer Bonds and Coupons If a coupon from a bearer bond is presented to you for collection before the bond matures, you generally must report the interest on Form 1099-INT. Free 1040ez online However, do not report the interest if either of the following apply. Free 1040ez online You hold the bond as a nominee for the true owner. Free 1040ez online The payee is a foreign person. Free 1040ez online See Payments to foreign person under Backup Withholding, later. Free 1040ez online Because you cannot assume the presenter of the coupon also owns the bond, you should not report OID on the bond on Form 1099-OID. Free 1040ez online The coupon may have been “stripped” (separated) from the bond and separately purchased. Free 1040ez online However, if a long-term bearer bond on the OID list is presented to you for redemption upon call or maturity, you should prepare a Form 1099-OID showing the OID for that calendar year, as well as any coupon interest payments collected at the time of redemption. Free 1040ez online Backup Withholding If you report OID on Form 1099-OID or interest on Form 1099-INT for a calendar year, you may be required to apply backup withholding to the reportable payment at a rate of 28%. Free 1040ez online The backup withholding is deducted at the time a cash payment is made. Free 1040ez online See Pub. Free 1040ez online 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), for more information. Free 1040ez online Backup withholding generally applies in the following situations. Free 1040ez online The payee does not give you a taxpayer identification number (TIN). Free 1040ez online The IRS notifies you that the payee gave an incorrect TIN. Free 1040ez online The IRS notifies you that the payee is subject to backup withholding due to payee underreporting. Free 1040ez online For debt instruments acquired after 1983: The payee does not certify, under penalties of perjury, that he or she is not subject to backup withholding under (3), or The payee does not certify, under penalties of perjury, that the TIN given is correct. Free 1040ez online However, for short-term discount obligations (other than government obligations), bearer bonds and coupons, and U. Free 1040ez online S. Free 1040ez online savings bonds, backup withholding applies only if the payee does not give you a TIN or gives you an obviously incorrect number for a TIN. Free 1040ez online Short-term obligations. Free 1040ez online   Backup withholding applies to OID on a short-term obligation only when the OID is paid at maturity. Free 1040ez online However, backup withholding applies to any interest payable before maturity when the interest is paid or credited. Free 1040ez online   If the owner of a short-term obligation at maturity is not the original owner and can establish the purchase price of the obligation, the amount subject to backup withholding must be determined by treating the purchase price as the issue price. Free 1040ez online However, you can choose to disregard that price if it would require significant manual intervention in the computer or recordkeeping system used for the obligation. Free 1040ez online If the purchase price of a listed obligation is not established or is disregarded, you must use the issue price shown in Section III. Free 1040ez online Long-term obligations. Free 1040ez online   If no cash payments are made on a long-term obligation before maturity, backup withholding applies only at maturity. Free 1040ez online The amount subject to backup withholding is the OID includible in the owner's gross income for the calendar year when the obligation matures. Free 1040ez online The amount to be withheld is limited to the cash paid. Free 1040ez online Registered long-term obligations with cash payments. Free 1040ez online   If a registered long-term obligation has cash payments before maturity, backup withholding applies when a cash payment is made. Free 1040ez online The amount subject to backup withholding is the total of the qualified stated interest (defined earlier under Definitions) and OID includible in the owner's gross income for the calendar year when the payment is made. Free 1040ez online If more than one cash payment is made during the year, the OID subject to withholding for the year must be allocated among the expected cash payments in the ratio that each bears to the total of the expected cash payments. Free 1040ez online For any payment, the required withholding is limited to the cash paid. Free 1040ez online Payee not the original owner. Free 1040ez online   If the payee is not the original owner of the obligation, the OID subject to backup withholding is the OID includible in the gross income of all owners during the calendar year (without regard to any amount paid by the new owner at the time of transfer). Free 1040ez online The amount subject to backup withholding at maturity of a listed obligation must be determined using the issue price shown in Section I. Free 1040ez online Bearer long-term obligations with cash payments. Free 1040ez online   If a bearer long-term obligation has cash payments before maturity, backup withholding applies when the cash payments are made. Free 1040ez online For payments before maturity, the amount subject to withholding is the qualified stated interest (defined earlier under Definitions) includible in the owner's gross income for the calendar year. Free 1040ez online For a payment at maturity, the amount subject to withholding is only the total of any qualified stated interest paid at maturity and the OID includible in the owner's gross income for the calendar year when the obligation matures. Free 1040ez online The required withholding at maturity is limited to the cash paid. Free 1040ez online Sales and redemptions. Free 1040ez online   If you report the gross proceeds from a sale, exchange, or redemption of a debt instrument on Form 1099-B for a calendar year, you may be required to withhold 28% of the amount reported. Free 1040ez online Backup withholding applies in the following situations. Free 1040ez online The payee does not give you a TIN. Free 1040ez online The IRS notifies you that the payee gave an incorrect TIN. Free 1040ez online For debt instruments held in an account opened after 1983, the payee does not certify, under penalties of perjury, that the TIN given is correct. Free 1040ez online Payments outside the United States to U. Free 1040ez online S. Free 1040ez online person. Free 1040ez online   The requirements for backup withholding and information reporting apply to payments of OID and interest made outside the United States to a U. Free 1040ez online S. Free 1040ez online person, a controlled foreign corporation, or a foreign person at least 50% of whose income for the preceding 3-year period is effectively connected with the conduct of a U. Free 1040ez online S. Free 1040ez online trade or business. Free 1040ez online Payments to foreign person. Free 1040ez online   The following discussions explain the rules for backup withholding and information reporting on payments to foreign persons. Free 1040ez online U. Free 1040ez online S. Free 1040ez online -source amount. Free 1040ez online   Backup withholding and information reporting are not required for payments of U. Free 1040ez online S. Free 1040ez online -source OID, interest, or proceeds from a sale or redemption of an OID instrument if the payee has given you proof (generally the appropriate Form W-8 or an acceptable substitute) that the payee is a foreign person. Free 1040ez online A U. Free 1040ez online S. Free 1040ez online resident is not a foreign person. Free 1040ez online For proof of the payee's foreign status, you can rely on the appropriate Form W-8 or on documentary evidence for payments made outside the United States to an offshore account or, in case of broker proceeds, a sale effected outside the United States. Free 1040ez online Receipt of the appropriate Form W-8 does not relieve you from information reporting and backup withholding if you actually know the payee is a U. Free 1040ez online S. Free 1040ez online person. Free 1040ez online   For information about the 28% withholding tax that may apply to payments of U. Free 1040ez online S. Free 1040ez online -source OID or interest to foreign persons, see Publication 515. Free 1040ez online Foreign-source amount. Free 1040ez online   Backup withholding and information reporting are not required for payments of foreign-source OID and interest made outside the United States. Free 1040ez online However, if the payments are made inside the United States, the requirements for backup withholding and information reporting will apply unless the payee has given you the appropriate Form W-8 or acceptable substitute as proof that the payee is a foreign person. Free 1040ez online More information. Free 1040ez online   For more information about backup withholding and information reporting on foreign-source amounts or payments to foreign persons, see Regulations section 1. Free 1040ez online 6049-5. Free 1040ez online Information for Owners of OID Debt Instruments This section is for persons who prepare their own tax returns. Free 1040ez online It discusses the income tax rules for figuring and reporting OID on long-term debt instruments. Free 1040ez online It also includes a similar discussion for stripped bonds and coupons, such as zero coupon bonds available through the Department of the Treasury's STRIPS program and government-sponsored enterprises such as the Resolution Funding Corporation. Free 1040ez online However, the information provided does not cover every situation. Free 1040ez online More information can be found in the regulations under sections 1271 through 1275 of the Internal Revenue Code. Free 1040ez online Including OID in income. Free 1040ez online   Generally, you include OID in income as it accrues each year, whether or not you receive any payments from the debt instrument issuer. Free 1040ez online Exceptions. Free 1040ez online   The rules for including OID in income as it accrues generally do not apply to the following debt instruments. Free 1040ez online U. Free 1040ez online S. Free 1040ez online savings bonds. Free 1040ez online Tax-exempt obligations. Free 1040ez online (However, see Tax-Exempt Bonds and Coupons, later. Free 1040ez online ) Obligations issued by individuals before March 2, 1984. Free 1040ez online Loans of $10,000 or less between individuals who are not in the business of lending money. Free 1040ez online (The dollar limit includes outstanding prior loans by the lender to the borrower. Free 1040ez online ) This exception does not apply if a principal purpose of the loan is to avoid any federal tax. Free 1040ez online   See chapter 1 of Publication 550 for information about the rules for these and other types of discounted debt instruments, such as short-term and market discount obligations. Free 1040ez online Publication 550 also discusses rules for holders of REMIC interests and CDOs. Free 1040ez online De minimis rule. Free 1040ez online   You can treat OID as zero if the total OID on a debt instrument is less than one-fourth of 1% (. Free 1040ez online 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. Free 1040ez online Debt instruments with de minimis OID are not listed in this publication. Free 1040ez online There are special rules to determine the de minimis amount in the case of debt instruments that provide for more than one payment of principal. Free 1040ez online Also, the de minimis rules generally do not apply to tax-exempt obligations. Free 1040ez online Example 2. Free 1040ez online You bought at issuance a 10-year debt instrument with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. Free 1040ez online One-fourth of 1% of $1,000 (the stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. Free 1040ez online Under the de minimis rule, you can treat the OID as zero because the $20 discount is less than $25. Free 1040ez online Example 3. Free 1040ez online Assume the same facts as Example 2, except the debt instrument was issued at $950. Free 1040ez online You must report part of the $50 OID each year because it is more than $25. Free 1040ez online Choice to report all interest as OID. Free 1040ez online   Generally, you can choose to treat all interest on a debt instrument acquired after April 3, 1994, as OID and include it in gross income by using the constant yield method. Free 1040ez online See Constant yield method under Debt Instruments Issued After 1984, later, for more information. Free 1040ez online   For this choice, interest includes stated interest, acquisition discount, OID, de minimis OID, market discount, de minimis market discount, and unstated interest, as adjusted by any amortizable bond premium or acquisition premium. Free 1040ez online For more information, see Regulations section 1. Free 1040ez online 1272-3. Free 1040ez online Purchase after date of original issue. Free 1040ez online   A debt instrument you purchased after the date of original issue may have premium, acquisition premium, or market discount. Free 1040ez online If so, the OID reported to you on Form 1099-OID may have to be adjusted. Free 1040ez online For more information, see Showing an OID adjustment under How To Report OID, later. Free 1040ez online The following rules generally do not apply to contingent payment debt instruments. Free 1040ez online Adjustment for premium. Free 1040ez online   If your debt instrument (other than an inflation-indexed debt instrument) has premium, do not report any OID as ordinary income. Free 1040ez online Your adjustment is the total OID shown on your Form 1099-OID. Free 1040ez online Adjustment for acquisition premium. Free 1040ez online   If your debt instrument has acquisition premium, reduce the OID you report. Free 1040ez online Your adjustment is the difference between the OID shown on your Form 1099-OID and the reduced OID amount figured using the rules explained later under Figuring OID on Long-Term Debt Instruments. Free 1040ez online Adjustment for market discount. Free 1040ez online   If your debt instrument has market discount that you choose to include in income currently, increase the OID you report. Free 1040ez online Your adjustment is the accrued market discount for the year. Free 1040ez online See Market Discount Bonds in chapter 1 of Publication 550 for information on how to figure accrued market discount and include it in your income currently and for other information about market discount bonds. Free 1040ez online If you choose to use the constant yield method to figure accrued market discount, also see Figuring OID on Long-Term Debt Instruments, later. Free 1040ez online The constant yield method of figuring accrued OID, explained in those discussions under Constant yield method, is also used to figure accrued market discount. Free 1040ez online For more information concerning premium or market discount on an inflation-indexed debt instrument, see Regulations section 1. Free 1040ez online 1275-7. Free 1040ez online Sale, exchange, or redemption. Free 1040ez online   Generally, you treat your gain or loss from the sale, exchange, or redemption of a discounted debt instrument as a capital gain or loss if you held the debt instrument as a capital asset. Free 1040ez online If you sold the debt instrument through a broker, you should receive Form 1099-B or an equivalent statement from the broker. Free 1040ez online Use the Form 1099-B or other statement and your brokerage statements to complete Form 8949, and Schedule D (Form 1040). Free 1040ez online   Your gain or loss is the difference between the amount you realized on the sale, exchange, or redemption and your basis in the debt instrument. Free 1040ez online Your basis, generally, is your cost increased by the OID you have included in income each year you held it. Free 1040ez online In general, to determine your gain or loss on a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. Free 1040ez online   See chapter 4 of Publication 550 for more information about the tax treatment of the sale or redemption of discounted debt instruments. Free 1040ez online Example 4. Free 1040ez online Larry, a calendar year taxpayer, bought a corporate debt instrument at original issue for $86,235. Free 1040ez online 00 on November 1 of Year 1. Free 1040ez online The 15-year debt instrument matures on October 31 of Year 16 at a stated redemption price of $100,000. Free 1040ez online The debt instrument provides for semiannual payments of interest at 10%. Free 1040ez online Assume the debt instrument is a capital asset in Larry's hands. Free 1040ez online The debt instrument has $13,765. Free 1040ez online 00 of OID ($100,000 stated redemption price at maturity minus $86,235. Free 1040ez online 00 issue price). Free 1040ez online Larry sold the debt instrument for $90,000 on November 1 of Year 4. Free 1040ez online Including the OID he will report for the period he held the debt instrument in Year 4, Larry has included $4,556. Free 1040ez online 00 of OID in income and has increased his basis by that amount to $90,791. Free 1040ez online 00. Free 1040ez online Larry has realized a loss of $791. Free 1040ez online 00. Free 1040ez online All of Larry's loss is capital loss. Free 1040ez online Form 1099-OID The issuer of the debt instrument (or your broker, if you purchased or held the debt instrument through a broker) should give you a copy of Form 1099-OID or a similar statement if the accrued OID for the calendar year is $10 or more and the term of the debt instrument is more than 1 year. Free 1040ez online Form 1099-OID shows all OID income in box 1 except OID on a U. Free 1040ez online S. Free 1040ez online Treasury obligation, which is shown in box 8. Free 1040ez online It also shows, in box 2, any qualified stated interest you must include in income. Free 1040ez online (However, any qualified stated interest on Treasury inflation-protected securities can be reported on Form 1099-INT in box 3. Free 1040ez online ) A copy of Form 1099-OID will be sent to the IRS. Free 1040ez online Do not attach your copy to your tax return. Free 1040ez online Keep it for your records. Free 1040ez online If you are required to file a tax return and you receive Form 1099-OID showing taxable amounts, you must report these amounts on your return. Free 1040ez online A 20% accuracy-related penalty may be charged for underpayment of tax due to either negligence or disregard of rules and regulations or substantial understatement of tax. Free 1040ez online Form 1099-OID not received. Free 1040ez online   If you held an OID debt instrument for a calendar year but did not receive a Form 1099-OID, refer to the discussions under Figuring OID on Long-Term Debt Instruments, later, for information on the OID you must report. Free 1040ez online Refiguring OID. Free 1040ez online   You must refigure the OID shown on Form 1099-OID, in box 1 or box 8, to determine the proper amount to include in income if one of the following applies. Free 1040ez online You bought the debt instrument at a premium or at an acquisition premium. Free 1040ez online The debt instrument is a stripped bond or coupon (including zero coupon bonds backed by U. Free 1040ez online S. Free 1040ez online Treasury securities). Free 1040ez online The debt instrument is a contingent payment or inflation-indexed debt instrument. Free 1040ez online See the discussions under Figuring OID on Long-Term Debt Instruments or Figuring OID on Stripped Bonds and Coupons, later, for the specific computations. Free 1040ez online Refiguring interest. Free 1040ez online   If you disposed of a debt instrument or acquired it from another holder between interest dates, see the discussion under Bonds Sold Between Interest Dates in chapter 1 of Publication 550 for information about refiguring the interest shown on Form 1099-OID in box 2. Free 1040ez online Nominee. Free 1040ez online   If you are the holder of an OID debt instrument and you receive a Form 1099-OID that shows your taxpayer identification number and includes amounts belonging to another person, you are considered a “nominee. Free 1040ez online ” You must file another Form 1099-OID for each actual owner, showing the OID for the owner. Free 1040ez online Show the owner of the debt instrument as the “recipient” and you as the “payer. Free 1040ez online ”   Complete Form 1099-OID and Form 1096 and file the forms with the Internal Revenue Service Center for your area. Free 1040ez online You must also give a copy of the Form 1099-OID to the actual owner. Free 1040ez online However, you are not required to file a nominee return to show amounts belonging to your spouse. Free 1040ez online See the Form 1099 instructions for more information. Free 1040ez online   When preparing your tax return, follow the instructions under Showing an OID adjustment in the next discussion. Free 1040ez online How To Report OID Generally, you report your taxable interest and OID income on the interest line of Form 1040EZ, Form 1040A, or Form 1040. Free 1040ez online Form 1040 or Form 1040A required. Free 1040ez online   You must use Form 1040 or Form 1040A (you cannot use Form 1040EZ) under either of the following conditions. Free 1040ez online You received a Form 1099-OID as a nominee for the actual owner. Free 1040ez online Your total interest and OID income for the year was more than $1,500. Free 1040ez online Form 1040 required. Free 1040ez online   You must use Form 1040 (you cannot use Form 1040A or Form 1040EZ) if you are reporting more or less OID than the amount shown on Form 1099-OID, other than because you are a nominee. Free 1040ez online For example, if you paid a premium or an acquisition premium when you purchased the debt instrument, you must use Form 1040 because you will report less OID than shown on Form 1099-OID. Free 1040ez online Also, you must use Form 1040 if you were charged an early withdrawal penalty. Free 1040ez online Where to report. Free 1040ez online   List each payer's name (if a brokerage firm gave you a Form 1099, list the brokerage firm as the payer) and the amount received from each payer on Form 1040A, Schedule B, Part I, line 1, or Form 1040, Schedule B, line 1. Free 1040ez online Include all OID and periodic interest shown on any Form 1099-OID, boxes 1, 2, and 8, you received for the tax year. Free 1040ez online Also include any other OID and interest income for which you did not receive a Form 1099. Free 1040ez online Showing an OID adjustment. Free 1040ez online   If you use Form 1040 to report more or less OID than shown on Form 1099-OID, list the full OID on Schedule B, Part I, line 1, and follow the instructions under 1 or 2, next. Free 1040ez online   If you use Form 1040A to report the OID shown on a Form 1099-OID you received as a nominee for the actual owner, list the full OID on Schedule B, Part I, line 1 and follow the instructions under 1. Free 1040ez online If the OID, as adjusted, is less than the amount shown on Form 1099-OID, show the adjustment as follows. Free 1040ez online Under your last entry on line 1, subtotal all interest and OID income listed on line 1. Free 1040ez online Below the subtotal, write “Nominee Distribution” or “OID Adjustment” and show the OID you are not required to report. Free 1040ez online Subtract that OID from the subtotal and enter the result on line 2. Free 1040ez online If the OID, as adjusted, is more than the amount shown on Form 1099-OID, show the adjustment as follows. Free 1040ez online Under your last entry on line 1, subtotal all interest and OID income listed on line 1. Free 1040ez online Below the subtotal, write “OID Adjustment” and show the additional OID. Free 1040ez online Add that OID to the subtotal and enter the result on line 2. Free 1040ez online Figuring OID on Long-Term Debt Instruments How you figure the OID on a long-term debt instrument depends on the date it was issued. Free 1040ez online It also may depend on the type of the debt instrument. Free 1040ez online There are different rules for each of the following debt instruments. Free 1040ez online Corporate debt instruments issued after 1954 and before May 28, 1969, and government debt instruments issued after 1954 and before July 2, 1982. Free 1040ez online Corporate debt instruments issued after May 27, 1969, and before July 2, 1982. Free 1040ez online Debt instruments issued after July 1, 1982, and before 1985. Free 1040ez online Debt instruments issued after 1984 (other than debt instruments described in (5) and (6)). Free 1040ez online Contingent payment debt instruments issued after August 12, 1996. Free 1040ez online Inflation-indexed debt instruments (including Treasury inflation-protected securities) issued after January 5, 1997. Free 1040ez online Zero coupon bonds. Free 1040ez online   The rules for figuring OID on zero coupon bonds backed by U. Free 1040ez online S. Free 1040ez online Treasury securities are discussed under Figuring OID on Stripped Bonds and Coupons, later. Free 1040ez online Corporate Debt Instruments Issued After 1954 and Before May 28, 1969, and Government Debt Instruments Issued After 1954 and Before July 2, 1982 If you hold these debt instruments as capital assets, you include OID in income only in the year the debt instrument is sold, exchanged, or redeemed, and only if you have a gain. Free 1040ez online The OID, which is taxed as ordinary income, generally equals the following amount. Free 1040ez online   number of full months you held the debt instrument  number of full months from date of original issue to date of maturity X original issue discount The balance of the gain is capital gain. Free 1040ez online If there is a loss on the sale of the debt instrument, the entire loss is a capital loss and no OID is reported. Free 1040ez online Corporate Debt Instruments Issued After May 27, 1969, and Before July 2, 1982 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments. Free 1040ez online For information about showing the correct OID on your tax return, see the discussion under How To Report OID, earlier. Free 1040ez online Your basis in the debt instrument is increased by the OID you include in income. Free 1040ez online Form 1099-OID. Free 1040ez online   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. Free 1040ez online However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. Free 1040ez online See Reduction for acquisition premium, later. Free 1040ez online If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. Free 1040ez online irs. Free 1040ez online gov/pub1212 by clicking the link under Recent Developments. Free 1040ez online Form 1099-OID not received. Free 1040ez online    The OID listed is for each $1,000 of redemption price. Free 1040ez online You must adjust the listed amount if your debt instrument has a different principal amount. Free 1040ez online For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. Free 1040ez online   If you held the debt instrument the entire year, use the OID shown in Section I-A for a calendar year. Free 1040ez online (If your debt instrument is not listed in Section I-A, consult the issuer for information about the issue price and the OID that accrued for that year. Free 1040ez online ) If you did not hold the debt instrument the entire year, figure your OID using the following method. Free 1040ez online Divide the OID shown by 12. Free 1040ez online Multiply the result in (1) by the number of complete and partial months (for example, 6½ months) you held the debt instrument during a calendar year. Free 1040ez online This is the OID to include in income unless you paid an acquisition premium. Free 1040ez online The reduction for acquisition premium is discussed next. Free 1040ez online Reduction for acquisition premium. Free 1040ez online   If you bought the debt instrument at an acquisition premium, figure the OID to include in income as follows. Free 1040ez online Divide the total OID on the debt instrument by the number of complete months, and any part of a month, from the date of original issue to the maturity date. Free 1040ez online This is the monthly OID. Free 1040ez online Subtract from your cost the issue price and the accumulated OID from the date of issue to the date of purchase. Free 1040ez online (If the result is zero or less, stop here. Free 1040ez online You did not pay an acquisition premium. Free 1040ez online ) Divide the amount figured in (2) by the number of complete months, and any part of a month, from the date of your purchase to the maturity date. Free 1040ez online Subtract the amount figured in (3) from the amount figured in (1). Free 1040ez online This is the OID to include in income for each month you hold the debt instrument during the year. Free 1040ez online Transfers during the month. Free 1040ez online   If you buy or sell a debt instrument on any day other than the same day of the month as the date of original issue, the ratable monthly portion of OID for the month of sale is divided between the seller and the buyer according to the number of days each held the debt instrument. Free 1040ez online Your holding period for this purpose begins the day you acquire the debt instrument and ends the day before you dispose of it. Free 1040ez online Debt Instruments Issued After July 1, 1982, and Before 1985 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments and increase your basis by the amount included. Free 1040ez online For information about showing the correct OID on your tax return, see How To Report OID, earlier. Free 1040ez online Form 1099-OID. Free 1040ez online   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. Free 1040ez online However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. Free 1040ez online See Constant yield method and the discussions on acquisition premium that follow, later. Free 1040ez online If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. Free 1040ez online irs. Free 1040ez online gov/pub1212 by clicking the link under Recent Developments. Free 1040ez online Form 1099-OID not received. Free 1040ez online    The OID listed is for each $1,000 of redemption price. Free 1040ez online You must adjust the listed amount if your debt instrument has a different principal amount. Free 1040ez online For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. Free 1040ez online   If you held the debt instrument the entire year, use the OID shown in Section I-A. Free 1040ez online (If your instrument is not listed in Section I-A, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. Free 1040ez online ) If you did not hold the debt instrument the entire year, figure your OID using either of the following methods. Free 1040ez online Method 1. Free 1040ez online    Divide the total OID for a calendar year by 365 (366 for leap years). Free 1040ez online Multiply the result in (1) by the number of days you held the debt instrument during that particular year. Free 1040ez online  This computation is an approximation and may result in a slightly higher OID than Method 2. Free 1040ez online Method 2. Free 1040ez online    Look up the daily OID for the first accrual period you held the debt instrument during a calendar year. Free 1040ez online (See Accrual period under Constant yield method, next. Free 1040ez online ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. Free 1040ez online If you held the debt instrument for part of both accrual periods, repeat (1) and (2) for the second accrual period. Free 1040ez online Add the results of (2) and (3). Free 1040ez online This is the OID to include in income, unless you paid an acquisition premium. Free 1040ez online (The reduction for acquisition premium is discussed later. Free 1040ez online ) Constant yield method. Free 1040ez online   This discussion shows how to figure OID on debt instruments issued after July 1, 1982, and before 1985, using a constant yield method. Free 1040ez online OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. Free 1040ez online   Figure the OID allocable to any accrual period as follows. Free 1040ez online Multiply the adjusted issue price at the beginning of the accrual period by the debt instrument's yield to maturity. Free 1040ez online Subtract from the result in (1) any qualified stated interest allocable to the accrual period. Free 1040ez online Accrual period. Free 1040ez online   An accrual period for any OID debt instrument issued after July 1, 1982, and before 1985 is each 1-year period beginning on the date of the issue of the obligation and each anniversary thereafter, or the shorter period to maturity for the last accrual period. Free 1040ez online Your tax year will usually include parts of two accrual periods. Free 1040ez online Daily OID. Free 1040ez online   The OID for any accrual period is allocated equally to each day in the accrual period. Free 1040ez online You must include in income the sum of the OID amounts for each day you hold the debt instrument during the year. Free 1040ez online If your tax year includes parts of two or more accrual periods, you must include the proper daily OID amounts for each accrual period. Free 1040ez online Figuring daily OID. Free 1040ez online   The daily OID for the initial accrual period is figured using the following formula. Free 1040ez online   (ip × ytm) − qsi     p   ip = issue price ytm = yield to maturity qsi = qualified stated interest p = number of days in accrual period         The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. Free 1040ez online Reduction for acquisition premium on debt instruments purchased before July 19, 1984. Free 1040ez online   If you bought the debt instrument at an acquisition premium before July 19, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. Free 1040ez online Figure the daily acquisition premium by dividing the total acquisition premium by the number of days in the period beginning on your purchase date and ending on the day before the date of maturity. Free 1040ez online Reduction for acquisition premium on debt instruments purchased after July 18, 1984. Free 1040ez online   If you bought the debt instrument at an acquisition premium after July 18, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. Free 1040ez online However, the method of figuring the daily acquisition premium is different from the method described in the preceding discussion. Free 1040ez online To figure the daily acquisition premium under this method, multiply the daily OID by the following fraction. Free 1040ez online The numerator is the acquisition premium. Free 1040ez online The denominator is the total OID remaining for the debt instrument after your purchase date. Free 1040ez online Section I-A is available at www. Free 1040ez online irs. Free 1040ez online gov/pub1212 and clicking the link under Recent Developments. Free 1040ez online Using Section I-A to figure accumulated OID. Free 1040ez online   If you bought your corporate debt instrument in a calendar year or the subsequent year, you can figure the accumulated OID to the date of purchase by adding the following amounts. Free 1040ez online The amount from the “Total OID to January 1, YYYY” column for your debt instrument. Free 1040ez online The OID from January 1 of a calendar year to the date of purchase, figured as follows. Free 1040ez online Multiply the daily OID for the first accrual period in the calendar year by the number of days from January 1 to the date of purchase, or the end of the accrual period if the debt instrument was purchased in the second or third accrual period. Free 1040ez online Multiply the daily OID for each subsequent accrual period by the number of days in the period to the date of purchase or the end of the accrual period, whichever applies. Free 1040ez online Add the amounts figured in (2a) and (2b). Free 1040ez online Debt Instruments Issued After 1984 If you hold debt instruments issued after 1984, you must report part of the OID in gross income each year that you own the debt instruments. Free 1040ez online You must include the OID in gross income whether or not you hold the debt instrument as a capital asset. Free 1040ez online Your basis in the debt instrument is increased by the OID you include in income. Free 1040ez online For information about showing the correct OID on your tax return, see How To Report OID, earlier. Free 1040ez online Form 1099-OID. Free 1040ez online   You should receive a Form 1099-OID showing OID for the part of a calendar year you held the debt instrument. Free 1040ez online However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. Free 1040ez online See Constant yield method and Reduction for acquisition premium, later. Free 1040ez online   You may also need to refigure the OID for a contingent payment or inflation-indexed debt instrument on which the amount reported on Form 1099-OID is inaccurate. Free 1040ez online See Contingent Payment Debt Instruments or Inflation-Indexed Debt Instruments, later. Free 1040ez online If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-B available at www. Free 1040ez online irs. Free 1040ez online gov/pub1212 by clicking the link under Recent Developments. Free 1040ez online Form 1099-OID not received. Free 1040ez online   The OID listed is for each $1,000 of redemption price. Free 1040ez online You must adjust the listed amount if your debt instrument has a different principal amount. Free 1040ez online For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. Free 1040ez online   Use the OID shown in Section I-B for a calendar year if you held the debt instrument the entire year. Free 1040ez online (If your debt instrument is not listed in Section I-B, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. Free 1040ez online ) If you did not hold the debt instrument the entire year, figure your OID as follows. Free 1040ez online Look up the daily OID for the first accrual period in which you held the debt instrument during a calendar year. Free 1040ez online (See Accrual period under Constant yield method, later. Free 1040ez online ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. Free 1040ez online Repeat (1) and (2) for any remaining accrual periods in which you held the debt instrument. Free 1040ez online Add the results of (2) and (3). Free 1040ez online This is the OID to include in income for that year, unless you paid an acquisition premium. Free 1040ez online (The reduction for acquisition premium is discussed later. Free 1040ez online ) Tax-exempt bond. Free 1040ez online   If you own a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. Free 1040ez online You need to make this adjustment to determine if you have a gain or loss on a later disposition of the bond. Free 1040ez online In general, use the rules that follow to determine your OID. Free 1040ez online Constant yield method. Free 1040ez online   This discussion shows how to figure OID on debt instruments issued after 1984 using a constant yield method. Free 1040ez online (The special rules that apply to contingent payment debt instruments and inflation-indexed debt instruments are explained later. Free 1040ez online ) OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. Free 1040ez online   Figure the OID allocable to any accrual period as follows. Free 1040ez online Multiply the adjusted issue price at the beginning of the accrual period by a fraction. Free 1040ez online The numerator of the fraction is the debt instrument's yield to maturity and the denominator is the number of accrual periods per year. Free 1040ez online The yield must be stated appropriately taking into account the length of the particular accrual period. Free 1040ez online Subtract from the result in (1) any qualified stated interest allocable to the accrual period. Free 1040ez online Accrual period. Free 1040ez online   For debt instruments issued after 1984 and before April 4, 1994, an accrual period is each 6-month period that ends on the day that corresponds to the stated maturity date of the debt instrument or the date 6 months before that date. Free 1040ez online For example, a debt instrument maturing on March 31 has accrual periods that end on September 30 and March 31 of each calendar year. Free 1040ez online Any short period is included as the first accrual period. Free 1040ez online   For debt instruments issued after April 3, 1994, accrual periods may be of any length and may vary in length over the term of the debt instrument, as long as each accrual period is no longer than 1 year and all payments are made on the first or last day of an accrual period. Free 1040ez online However, the OID listed for these debt instruments in Section I-B has been figured using 6-month accrual periods. Free 1040ez online Daily OID. Free 1040ez online   The OID for any accrual period is allocated equally to each day in the accrual period. Free 1040ez online Figure the amount to include in income by adding the OID for each day you hold the debt instrument during the year. Free 1040ez online Since your tax year will usually include parts of two or more accrual periods, you must include the proper daily OID for each accrual period. Free 1040ez online If your debt instrument has 6-month accrual periods, your tax year will usually include one full 6-month accrual period and parts of two other 6-month periods. Free 1040ez online Figuring daily OID. Free 1040ez online   The daily OID for the initial accrual period is figured using the following formula. Free 1040ez online   (ip × ytm/n) − qsi     p   ip = issue price ytm = yield to maturity n = number of accrual periods in 1 year qsi = qualified stated interest p = number of days in accrual period       The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. Free 1040ez online Example 5. Free 1040ez online On January 1 of Year 1, you bought a 15-year, 10% debt instrument of A Corporation at original issue for $86,235. Free 1040ez online 17. Free 1040ez online According to the prospectus, the debt instrument matures on December 31 of Year 15 at a stated redemption price of $100,000. Free 1040ez online The yield to maturity is 12%, compounded semiannually. Free 1040ez online The debt instrument provides for qualified stated interest payments of $5,000 on June 30 and December 31 of each calendar year. Free 1040ez online The accrual periods are the 6-month periods ending on each of these dates. Free 1040ez online The number of days for the first accrual period (January 1 through June 30) is 181 days (182 for leap years). Free 1040ez online The daily OID for the first accrual period is figured as follows. Free 1040ez online   ($86,235. Free 1040ez online 17 x . Free 1040ez online 12/2) – $5,000     181 days     = $174. Free 1040ez online 11020 = $. Free 1040ez online 96193   181           The adjusted issue price at the beginning of the second accrual period is the issue price plus the OID previously includible in income ($86,235. Free 1040ez online 17 + $174. Free 1040ez online 11), or $86,409. Free 1040ez online 28. Free 1040ez online The number of days for the second accrual period (July 1 through December 31) is 184 days. Free 1040ez online The daily OID for the second accrual period is figured as follows. Free 1040ez online   ($86,409. Free 1040ez online 28 x . Free 1040ez online 12/2) – $5,000     184 days     = $184. Free 1040ez online 55681 = $1. Free 1040ez online 00303   184 Since the first and second accrual periods coincide exactly with your tax year, you include in income for Year 1 the OID allocable to the first two accrual periods, $174. Free 1040ez online 11 ($. Free 1040ez online 95665 × 182 days) plus $184. Free 1040ez online 56 ($1. Free 1040ez online 00303 × 184 days), or $358. Free 1040ez online 67. Free 1040ez online Add the OID to the $10,000 interest you report on your income tax return for Year 1. Free 1040ez online Example 6. Free 1040ez online Assume the same facts as in Example 5, except that you bought the debt instrument at original issue on May 1 of Year 1, with a maturity date of April 30, Year 16. Free 1040ez online Also, the interest payment dates are October 31 and April 30 of each calendar year. Free 1040ez online The accrual periods are the 6-month periods ending on each of these dates. Free 1040ez online The number of days for the first accrual period (May 1 through October 31) is 184 days. Free 1040ez online The daily OID for the first accrual period is figured as follows. Free 1040ez online   ($86,235. Free 1040ez online 17 x . Free 1040ez online 12/2) – $5,000     184 days     = $174. Free 1040ez online 11020 = $. Free 1040ez online 94625   184           The number of days for the second accrual period (November 1 through April 30) is 181 days (182 for leap years). Free 1040ez online The daily OID for the second accrual period is figured as follows. Free 1040ez online   ($86,409. Free 1040ez online 28 x . Free 1040ez online 12/2) – $5,000     181 days     = $184. Free 1040ez online 55681 = $1. Free 1040ez online 01965   181 If you hold the debt instrument through the end of Year 1, you must include $236. Free 1040ez online 31 of OID in income. Free 1040ez online This is $174. Free 1040ez online 11 ($. Free 1040ez online 94625 × 184 days) for the period May 1 through October 31 plus $62. Free 1040ez online 20 ($1. Free 1040ez online 01965 × 61 days) for the period November 1 through December 31. Free 1040ez online The OID is added to the $5,000 interest income paid on October 31 of Year 1. Free 1040ez online Your basis in the debt instrument is increased by the OID you include in income. Free 1040ez online On January 1 of Year 2, your basis in the A Corporation debt instrument is $86,471. Free 1040ez online 48 ($86,235. Free 1040ez online 17 + $236. Free 1040ez online 31). Free 1040ez online Short first accrual period. Free 1040ez online   You may have to make adjustments if a debt instrument has a short first accrual period. Free 1040ez online For example, a debt instrument with 6-month accrual periods that is issued on February 15 and matures on October 31 has a short first accrual period that ends April 30. Free 1040ez online (The remaining accrual periods begin on May 1 and November 1. Free 1040ez online ) For this short period, figure the daily OID as described earlier, but adjust the yield for the length of the short accrual period. Free 1040ez online You may use any reasonable compounding method in determining OID for a short period. Free 1040ez online Examples of reasonable compounding methods include continuous compounding and monthly compounding (that is, simple interest within a month). Free 1040ez online Consult your tax advisor for more information about making this computation. Free 1040ez online   The OID for the final accrual period is the difference between the amount payable at maturity (other than a payment of qualified stated interest) and the adjusted issue price at the beginning of the final accrual period. Free 1040ez online Reduction for acquisition premium. Free 1040ez online   If you bought the debt instrument at an acquisition premium, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. Free 1040ez online To figure the daily acquisition premium, multiply the daily OID by the following fraction. Free 1040ez online The numerator is the acquisition premium. Free 1040ez online The denominator is the total OID remaining for the debt instrument after your purchase date. Free 1040ez online Example 7. Free 1040ez online Assume the same facts as in Example 6, except that you bought the debt instrument on November 1 of Year 1 for $87,000, after its original issue on May 1 of Year 1. Free 1040ez online The adjusted issue price on November 1 of Year 1 is $86,409. Free 1040ez online 28 ($86,235. Free 1040ez online 17 + $174. Free 1040ez online 11). Free 1040ez online In this case, you paid an acquisition premium of $590. Free 1040ez online 72 ($87,000 − $86,409. Free 1040ez online 28). Free 1040ez online The daily OID for the accrual period November 1 through April 30, reduced for the acquisition premium, is figured as follows. Free 1040ez online 1) Daily OID on date of purchase (2nd accrual period) $1. Free 1040ez online 01965*  2)  Acquisition premium $590. Free 1040ez online 72    3)  Total OID remaining after purchase date ($13,764. Free 1040ez online 83 − $174. Free 1040ez online 11) 13,590. Free 1040ez online 72   4) Line 2 ÷ line 3 . Free 1040ez online 04346  5)  Line 1 × line 4 . Free 1040ez online 04432  6)  Daily OID reduced for the acquisition premium. Free 1040ez online Line 1 − line 5 $0. Free 1040ez online 97533  * As shown in Example 6. Free 1040ez online The total OID to include in income for Year 1 is $59. Free 1040ez online 50 ($. Free 1040ez online 97533 × 61 days). Free 1040ez online Contingent Payment Debt Instruments This discussion shows how to figure OID on a contingent payment debt instrument issued after August 12, 1996, that was issued for cash or publicly traded property. Free 1040ez online In general, a contingent payment debt instrument provides for one or more payments that are contingent as to timing or amount. Free 1040ez online If you hold a contingent payment bond, you must report OID as it accrues each year. Free 1040ez online Because the actual payments on a contingent payment debt instrument cannot be known in advance, issuers and holders cannot use the constant yield method (discussed earlier under Debt Instruments Issued After 1984) without making certain assumptions about the payments on the debt instrument. Free 1040ez online To figure OID accruals on contingent payment debt instruments, holders and issuers must use the noncontingent bond method. Free 1040ez online Noncontingent bond method. Free 1040ez online    Under this method, the issuer must compute a comparable yield for the debt instrument and, based on this yield, construct a projected payment schedule for the instrument, which includes a projected fixed amount for each contingent payment. Free 1040ez online In general, holders and issuers accrue OID on this projected payment schedule using the constant yield method that applies to fixed payment debt instruments. Free 1040ez online When a contingent payment differs from the projected fixed amount, the holders and issuers make adjustments to their OID accruals. Free 1040ez online If the actual contingent payment is larger than expected, both the issuer and the holder increase their OID accruals. Free 1040ez online If the actual contingent payment is smaller than expected, holders and issuers generally decrease their OID accruals. Free 1040ez online Form 1099-OID. Free 1040ez online   The amount shown on Form 1099-OID in box 1 you receive for a contingent payment debt instrument may not be the correct amount to include in income. Free 1040ez online For example, the amount may not be correct if the contingent payment was different from the projected amount. Free 1040ez online If the amount in box 1 is not correct, you must figure the OID to report on your return under the following rules. Free 1040ez online For information on showing an OID adjustment on your tax return, see How To Report OID, earlier. Free 1040ez online Figuring OID. Free 1040ez online   To figure OID on a contingent payment debt instrument, you need to know the “comparable yield” and “projected payment schedule” of the debt instrument. Free 1040ez online The issuer must make these available to you. Free 1040ez online Comparable yield. Free 1040ez online   The comparable yield generally is the yield at which the issuer would issue a fixed rate debt instrument with terms and conditions similar to those of the contingent payment debt instrument. Free 1040ez online The comparable yield is determined as of the debt instrument's issue date. Free 1040ez online Projected payment schedule. Free 1040ez online   The projected payment schedule for a contingent payment debt instrument includes all fixed payments due under the instrument and a projected fixed amount for each contingent payment. Free 1040ez online The projected payment schedule is created by the issuer as of the debt instrument's issue date. Free 1040ez online It is used to determine the issuer's and holder's interest accruals and adjustments. Free 1040ez online Steps for figuring OID. Free 1040ez online   Figure the OID on a contingent payment debt instrument in two steps. Free 1040ez online Figure the OID using the constant yield method (discussed earlier under Debt Instruments Issued After 1984 ) that applies to fixed payment debt instruments. Free 1040ez online Use the comparable yield as the yield to maturity. Free 1040ez online In general, use the projected payment schedule to determine the instrument's adjusted issue price at the beginning of each accrual period (other than the initial period). Free 1040ez online Do not treat any amount payable as qualified stated interest. Free 1040ez online Adjust the OID in (1) to account for actual contingent payments. Free 1040ez online If the contingent payment is greater than the projected fixed amount, you have a positive adjustment. Free 1040ez online If the contingent payment is less than the projected fixed amount, you have a negative adjustment. Free 1040ez online Net positive adjustment. Free 1040ez online   A net positive adjustment exists for a tax year when the total of any positive adjustments described in (2) above for the tax year is more than the total of any negative adjustments for the tax year. Free 1040ez online Treat a net positive adjustment as additional OID for the tax year. Free 1040ez online Net negative adjustment. Free 1040ez online   A net negative adjustment exists for a tax year when the total of any negative adjustments described in (2) above for the tax year is more than the total of any positive adjustments for the tax year. Free 1040ez online Use a net negative adjustment to offset OID on the debt instrument for the tax year. Free 1040ez online If the net negative adjustment is more than the OID on the debt instrument for the tax year, you can claim the difference as an ordinary loss. Free 1040ez online However, the amount you can claim as an ordinary loss is limited to the OID on the debt instrument you included in income in prior tax years. Free 1040ez online You must carry forward any net negative adjustment that is more than the total OID for the tax year and prior tax years and treat it as a negative adjustment in the next tax year. Free 1040ez online Basis adjustments. Free 1040ez online   In general, increase your basis in a contingent payment debt instrument by the OID included in income. Free 1040ez online Your basis, however, is not affected by any negative or positive adjustments. Free 1040ez online Decrease your basis by any noncontingent payment received and the projected contingent payment scheduled to be received. Free 1040ez online Treatment of gain or loss on sale or exchange. Free 1040ez online   If you sell a contingent payment debt instrument at a gain, your gain is ordinary income (interest income), even if you hold the debt instrument as a capital asset. Free 1040ez online If you sell a contingent payment debt instrument at a loss, your loss is an ordinary loss to the extent of your prior OID accruals on the debt instrument. Free 1040ez online If the debt instrument is a capital asset, treat any loss that is more than your prior OID accruals as a capital loss. Free 1040ez online See Regulations section 1. Free 1040ez online 1275-4 for exceptions to these rules. Free 1040ez online Premium, acquisition premium, and market discount. Free 1040ez online   The rules for accruing premium, acquisition premium, and market discount do not apply to a contingent payment debt instrument. Free 1040ez online See Regulations section 1. Free 1040ez online 1275-4 to determine how to account for these items. Free 1040ez online Inflation-Indexed Debt Instruments This discussion shows how you figure OID on certain inflation-indexed debt instruments issued after January 5, 1997. Free 1040ez online An inflation-indexed debt instrument is generally a debt instrument on which the payments are adjusted for inflation and d
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The Free 1040ez Online

Free 1040ez online Publication 596SP - Introductory Material Table of Contents Acontecimientos Futuros ¿Qué es el Crédito por Ingreso del Trabajo (EIC)? ¿Puedo Reclamar el Crédito por Ingreso del Trabajo (EIC)? ¿Necesito esta Publicación? ¿Hay que Tener un Hijo para Tener Derecho al Crédito por Ingreso del Trabajo (EIC)? ¿Cómo Calculo la Cantidad del Crédito por Ingreso del Trabajo (EIC)? ¿Cómo Puedo Encontrar Rápidamente Información Específica? ¿Hay Ayuda Disponible en Internet? Qué Hay de Nuevo para el año 2013 Recordatorios Acontecimientos Futuros Para la información más actualizada sobre los acontecimientos que afectan la Publicación 596(SP), tales como legislación promulgada después de su publicación, visite www. Free 1040ez online irs. Free 1040ez online gov/pub596sp, en inglés. Free 1040ez online ¿Qué es el Crédito por Ingreso del Trabajo (EIC)? El crédito por ingreso del trabajo (EIC, por sus siglas en inglés) es un crédito tributario para aquellas personas que trabajan y que reciben ingreso del trabajo inferior a $51,567. Free 1040ez online Un crédito tributario significa que va a tener más dinero disponible porque reduce la cantidad de impuesto a pagar. Free 1040ez online El crédito por ingreso del trabajo (EIC) también podría proporcionarle un reembolso. Free 1040ez online ¿Puedo Reclamar el Crédito por Ingreso del Trabajo (EIC)? Para tener derecho al crédito por ingreso del trabajo (EIC), tiene que cumplir determinados requisitos. Free 1040ez online Dichos requisitos se resumen en la Tabla 1. Free 1040ez online Tabla 1. Free 1040ez online Síntesis del Crédito por Ingreso del Trabajo Primero, tiene que cumplir todos los requisitos de esta columna. Free 1040ez online Segundo, tiene que cumplir todos los requisitos de una de estas columnas, la que le corresponda. Free 1040ez online Tercero, tiene que cumplir el requisito de esta columna. Free 1040ez online Capítulo 1. Free 1040ez online  Requisitos para Todos Capítulo 2. Free 1040ez online  Requisitos que Tiene que Cumplir si Tiene un Hijo Calificado Capítulo 3. Free 1040ez online  Requisitos que Tiene que Cumplir si no Tiene un Hijo Calificado Capítulo 4. Free 1040ez online  Calcular y Reclamar el Crédito por Ingreso del Trabajo (EIC) 1. Free 1040ez online Tiene que tener  ingresos brutos ajustados (AGI, por sus siglas en inglés) inferiores a:  • $46,227 ($51,567 para casados que presentan una declaración conjunta) si tiene tres o más hijos calificados,  • $43,038 ($48,378 para casados que presentan una declaración conjunta) si tiene dos hijos calificados,  • $37,870 ($43,210 para casados que presentan una declaración conjunta) si tiene un hijo calificado o  • $14,340 ($19,680 para casados que presentan una declaración conjunta) si no tiene un hijo calificado. Free 1040ez online 2. Free 1040ez online Tiene que tener un número de Seguro Social válido. Free 1040ez online   3. Free 1040ez online Su estado civil para efectos de la declaración no puede ser  “casado que presenta la declaración por separado”. Free 1040ez online   4. Free 1040ez online Tiene que ser ciudadano de los Estados Unidos o extranjero residente durante todo el año. Free 1040ez online   5. Free 1040ez online No puede presentar el Formulario 2555 ni el Formulario 2555-EZ (relacionado con el ingreso del trabajo en el extranjero). Free 1040ez online   6. Free 1040ez online Sus ingresos procedentes de inversiones tienen que ser de $3,300 o menos. Free 1040ez online    7. Free 1040ez online Tiene que haber recibido ingreso del trabajo. Free 1040ez online 8. Free 1040ez online Su hijo tiene que cumplir los requisitos de parentesco, edad, residencia y de declaración conjunta. Free 1040ez online   9. Free 1040ez online Soló una persona puede utilizar su hijo calificado para fines de reclamar el crédito por ingreso del trabajo (EIC). Free 1040ez online   10. Free 1040ez online Usted no puede ser el hijo calificado de otra persona. Free 1040ez online 11. Free 1040ez online Tiene que tener por lo menos 25 años de edad pero menos de 65 años de edad. Free 1040ez online   12. Free 1040ez online Usted no puede ser dependiente de otra persona. Free 1040ez online   13. Free 1040ez online Usted no puede ser el hijo calificado de otra persona. Free 1040ez online   14. Free 1040ez online Tiene que haber vivido en los Estados Unidos durante más de la mitad del año. Free 1040ez online 15. Free 1040ez online Tiene que tener ingresos del trabajo inferiores a:  • $46,227 ($51,567 para casados que presentan una declaración conjunta) si tiene tres o más hijos calificados,  • $43,038 ($48,378 para casados que presentan una declaración conjunta) si tiene dos hijos calificados,  • $37,870 ($43,210 para casados que presentan una declaración conjunta) si tiene un hijo calificado o  • $14,340 ($19,680 para casados que presentan una declaración conjunta) si no tiene un hijo calificado. Free 1040ez online ¿Necesito esta Publicación? Algunas personas que presenten el Formulario 1040 tienen que usar la Hoja de Trabajo 1 de esta publicación, en vez de consultar el Paso 2 de las instrucciones para el Formulario 1040, para determinar si pueden reclamar el crédito por ingreso del trabajo (EIC). Free 1040ez online Usted se encuentra en esta categoría si alguna de las siguientes situaciones le corresponde para el año 2013. Free 1040ez online Presenta el Anexo E (Formulario 1040). Free 1040ez online Declara ingresos provenientes del alquiler de bienes inmuebles/muebles que no son utilizados en un oficio o negocio. Free 1040ez online Declara ingresos en la línea 21 del Formulario 1040 que provienen del Formulario 8814 (relacionados con la elección de declarar los intereses y dividendos recibidos por un hijo). Free 1040ez online Declara una cantidad en la línea 13 del Formulario 1040 que incluye una cantidad del Formulario 4797. Free 1040ez online Si ninguna de las situaciones que aparecen anteriormente le corresponde, las instrucciones del formulario de impuestos contienen toda la información que necesita para saber si puede reclamar el crédito por ingreso del trabajo (EIC) y para calcular la cantidad del mismo. Free 1040ez online No necesita esta publicación, pero puede leerla para saber si puede reclamar el crédito por ingreso del trabajo (EIC) y para aprender más sobre este crédito. Free 1040ez online ¿Hay que Tener un Hijo para Tener Derecho al Crédito por Ingreso del Trabajo (EIC)? No. Free 1040ez online Puede reunir los requisitos del crédito por ingreso del trabajo (EIC) aunque no tenga un hijo calificado si usted tiene como mínimo 25 años de edad pero menos de 65 años y tiene ingresos del trabajo inferiores a $14,340 ($19,680 si es casado que presenta una declaración conjunta). Free 1040ez online Vea el capítulo 3 para información adicional. Free 1040ez online ¿Cómo Calculo la Cantidad del Crédito por Ingreso del Trabajo (EIC)? Si puede reclamar el crédito por ingreso del trabajo (EIC), tiene la opción de solicitar que el IRS le calcule la cantidad del crédito o puede calcularlo usted mismo. Free 1040ez online Para calcularlo usted mismo, puede llenar la hoja de trabajo que se encuentra en las instrucciones del formulario que presente. Free 1040ez online Para saber cómo solicitar que el IRS le calcule la cantidad del crédito, vea el capítulo 4. Free 1040ez online ¿Cómo Puedo Encontrar Rápidamente Información Específica? Puede utilizar el índice para buscar información específica. Free 1040ez online En la mayoría de los casos, el índice hace referencia a títulos, tablas u hojas de trabajo. Free 1040ez online ¿Hay Ayuda Disponible en Internet? Sí. Free 1040ez online Puede utilizar el Asistente EITC en el sitio web www. Free 1040ez online irs. Free 1040ez online gov/espanol para saber si tiene derecho al crédito. Free 1040ez online El Asistente EITC está disponible en español y en inglés. Free 1040ez online Qué Hay de Nuevo para el año 2013 La cantidad de ingresos del trabajo ha aumentado. Free 1040ez online La cantidad máxima de ingresos que usted puede ganar y aún obtener el crédito ha aumentado. Free 1040ez online Tal vez pueda reclamar el crédito si: Tiene tres o más hijos calificados y gana menos de $46,227 ($51,567 si es casado que presenta una declaración conjunta), Tiene dos hijos calificados y gana menos de $43,038 ($48,378 si es casado que presenta una declaración conjunta), Tiene un hijo calificado y gana menos de $37,870 ($43,210 si es casado que presenta una declaración conjunta) o No tiene un hijo calificado y gana menos de $14,340 ($19,680 si es casado que presenta una declaración conjunta). Free 1040ez online Además, tiene que tener ingresos brutos ajustados inferiores a la cantidad que le corresponda de la lista anterior. Free 1040ez online Para más información, vea los Requisitos 1 y 15. Free 1040ez online La cantidad de ingresos de inversiones ha aumentado. Free 1040ez online La cantidad máxima de ingresos de inversiones que usted puede ganar y aún obtener el crédito ha aumentado a $3,300. Free 1040ez online Vea el Requisito 6 —Tiene que tener ingresos de inversiones de $3,300 o menos . Free 1040ez online Recordatorios Aumento del crédito por ingreso del trabajo (EIC) en ciertas declaraciones conjuntas. Free 1040ez online  Una persona casada que presente una declaración conjunta podría recibir un crédito mayor que el que recibe otra persona que tenga los mismos ingresos pero con un estado civil diferente para efectos de la declaración. Free 1040ez online Por lo tanto, la Tabla del Crédito por Ingreso del Trabajo (EIC) tiene columnas distintas para las personas casadas que presenten una declaración conjunta que para los demás. Free 1040ez online Cuando busque su crédito por ingreso del trabajo en la Tabla del Crédito por Ingreso del Trabajo (EIC), asegúrese de usar la columna correcta para su estado civil para efectos de la declaración y el número de hijos que tenga. Free 1040ez online El crédito por ingreso del trabajo (EIC) no afecta ciertos pagos de bienestar social. Free 1040ez online  Todo reembolso que reciba por el crédito por ingreso del trabajo (EIC) no se considera ingreso al determinar si usted u otra persona tiene derecho a recibir beneficios de los programas de asistencia social que se indican a continuación, ni al determinar la cantidad que usted u otra persona puede recibir de algún programa federal, o algún programa estatal o local que recibe todo o parte de sus fondos de fuentes federales. Free 1040ez online Tales programas incluyen los siguientes: Asistencia Temporal para Familias Necesitadas (TANF, por sus siglas en inglés). Free 1040ez online Seguro Medicaid. Free 1040ez online Seguridad de Ingreso Suplementario (SSI, por sus siglas en inglés). Free 1040ez online Programas de Asistencia Suplementaria de Alimentación (SNAP, por sus siglas en inglés) (cupones para alimentos). Free 1040ez online Viviendas para personas de bajos ingresos. Free 1040ez online Además, cuando determine la elegibilidad, el reembolso no podrá ser contado como una fuente de ingresos, durante por lo menos 12 meses después que usted lo reciba. Free 1040ez online Hable con el coordinador de beneficios local para averiguar si su reembolso afectará sus beneficios. Free 1040ez online No se olvide del crédito estatal. Free 1040ez online  Si reúne los requisitos para reclamar el crédito por ingreso del trabajo (EIC) en la declaración de impuestos federales sobre los ingresos, podría tener también derecho a reclamar un crédito parecido en la declaración de impuestos estatales o locales sobre los ingresos. Free 1040ez online Para ver una lista de estados que ofrecen el crédito estatal por ingreso del trabajo, visite www. Free 1040ez online irs. Free 1040ez online gov/eitc. Free 1040ez online En caso de que el IRS cuestione el crédito por ingreso del trabajo (EIC). Free 1040ez online  El IRS puede pedirle que entregue documentos para comprobar que usted tiene derecho al crédito por ingreso del trabajo (EIC). Free 1040ez online Le informaremos cuáles documentos debe enviarnos. Free 1040ez online Éstos pueden incluir actas de nacimiento, expedientes académicos, expedientes médicos, etc. Free 1040ez online El proceso para determinar su derecho al crédito demorará su reembolso. Free 1040ez online Fotografías de niños desaparecidos. Free 1040ez online  El IRS se complace en colaborar con el Centro Nacional de Niños Desaparecidos y Explotados (National Center for Missing and Exploited Children). Free 1040ez online Esta publicación puede contener fotografías de niños desaparecidos seleccionadas por el Centro en páginas que de otra manera estarían en blanco. Free 1040ez online Usted puede ayudar a que estos niños regresen a su hogar si al mirar sus fotografías los identifica y llama gratis al 1-800-THE-LOST (1-800-843-5678). Free 1040ez online Comentarios y sugerencias. Free 1040ez online  Agradeceremos sus comentarios acerca de esta publicación, así como sus sugerencias para ediciones futuras. Free 1040ez online Nos puede escribir a la dirección siguiente:  Internal Revenue Service Tax Forms and Publications 1111 Constitution Ave. Free 1040ez online NW, IR-6526 Washington, DC 20224 Contestamos muchas cartas por teléfono. Free 1040ez online Por lo tanto, sería útil que incluyera en la correspondencia su número de teléfono, con el código de área, para llamar durante el día. Free 1040ez online Usted nos puede enviar comentarios desde la página web en www. Free 1040ez online irs. Free 1040ez online gov/formspubs, en inglés. Free 1040ez online Pulse sobre “More Information,” (Más información) y seleccionando “Give us feedback. Free 1040ez online ” (Proveer comentarios). Free 1040ez online Aunque no podemos contestar individualmente cada comentario, agradecemos sus comentarios y sugerencias y los tendremos en cuenta para ediciones futuras de nuestros productos tributarios. Free 1040ez online Para pedir formularios y publicaciones. Free 1040ez online  Visite www. Free 1040ez online irs. Free 1040ez online gov/formspubs para descargar formularios y publicaciones, llame al 1-800-829-3676 para pedir formularios y publicaciones o escriba a la dirección a continuación para recibir una respuesta dentro de los 10 días después de recibir su solicitud. Free 1040ez online  Internal Revenue Service 1201 N. Free 1040ez online Mitsubishi Motorway Bloomington, IL 61705-6613 Preguntas sobre los impuestos. Free 1040ez online  Si tiene una pregunta sobre los impuestos, verifique la información disponible en IRS. Free 1040ez online gov/espanol o llame al 1-800-829-1040. 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