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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

How To Amend 2012 Taxes Online

1040ez Fill In FormWhere Can I File State Taxes Free OnlineIrs Extension Form 20121040esEfile Tax Return For FreeCan I File My 2012 Taxes NowAmending Tax ReturnH & R Block Advantage Free FileH And R Block Free TaxFile 2007 Taxes Online Free1040ez Refund1040ez Tax Table2013 Income Tax Forms 1040ezIrs Forms PublicationsHow To File State Taxes FreeAmending Tax ReturnDo I Have To File State TaxesCan I File 1040nr OnlineDownload 2012 Tax FormsIrs Tax Tables 1040ezFreefilefillableformsFederal Income Tax Forms 20121040 Ez Free File1040nr Ez 2012I Need To File My 2009 Taxes For FreeIrs Free File2006 Federal Tax FormsFillable 1040xFile State Taxes Online FreeFree Website For Filing State TaxesComplete 1040x FormIrs Free State Tax FilingE Filing Income Tax2010 Tax Forms 1040ezIrs Free Tax ReturnExtensionFederal Tax Ez Form 2011Student Tax Return 2011Self Employed Tax Deductions1040ez Form 2012 Online

How To Amend 2012 Taxes Online

How to amend 2012 taxes online Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. How to amend 2012 taxes online Gross monthly rate. How to amend 2012 taxes online Your cost. How to amend 2012 taxes online Choosing a survivor annuity after retirement. How to amend 2012 taxes online Canceling a survivor annuity after retirement. How to amend 2012 taxes online Annuity starting date after 1986. How to amend 2012 taxes online Annuity starting date before 1987. How to amend 2012 taxes online Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. How to amend 2012 taxes online Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. How to amend 2012 taxes online The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. How to amend 2012 taxes online If the refund includes only your contributions, none of the refund is taxable. How to amend 2012 taxes online If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). How to amend 2012 taxes online If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. How to amend 2012 taxes online See Rollover Rules in Part II for information on how to make a rollover. How to amend 2012 taxes online Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. How to amend 2012 taxes online Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. How to amend 2012 taxes online If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. How to amend 2012 taxes online If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. How to amend 2012 taxes online For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. How to amend 2012 taxes online A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. How to amend 2012 taxes online Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. How to amend 2012 taxes online OPM will tell you how to make the choice. How to amend 2012 taxes online The choice for no withholding remains in effect until you change it. How to amend 2012 taxes online These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. How to amend 2012 taxes online If you choose not to have tax withheld, or if you do not have enough tax withheld, you may have to make estimated tax payments. How to amend 2012 taxes online You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. How to amend 2012 taxes online Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. How to amend 2012 taxes online For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. How to amend 2012 taxes online Form CSA 1099R. How to amend 2012 taxes online   Form CSA 1099R is mailed to you by OPM each year. How to amend 2012 taxes online It will show any tax you had withheld. How to amend 2012 taxes online File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. How to amend 2012 taxes online    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. How to amend 2012 taxes online servicesonline. How to amend 2012 taxes online opm. How to amend 2012 taxes online gov. How to amend 2012 taxes online To log in, you will need your retirement CSA claim number and your personal identification number. How to amend 2012 taxes online Choosing no withholding on payments outside the United States. How to amend 2012 taxes online   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. How to amend 2012 taxes online   To choose no withholding if you are a U. How to amend 2012 taxes online S. How to amend 2012 taxes online citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. How to amend 2012 taxes online Otherwise, OPM has to withhold tax. How to amend 2012 taxes online For example, OPM must withhold if you provide a U. How to amend 2012 taxes online S. How to amend 2012 taxes online address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. How to amend 2012 taxes online S. How to amend 2012 taxes online home address. How to amend 2012 taxes online   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. How to amend 2012 taxes online S. How to amend 2012 taxes online citizen, a U. How to amend 2012 taxes online S. How to amend 2012 taxes online resident alien, or someone who left the United States to avoid tax. How to amend 2012 taxes online But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. How to amend 2012 taxes online For details, see Publication 519, U. How to amend 2012 taxes online S. How to amend 2012 taxes online Tax Guide for Aliens. How to amend 2012 taxes online Withholding certificate. How to amend 2012 taxes online   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. How to amend 2012 taxes online The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. How to amend 2012 taxes online If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. How to amend 2012 taxes online To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. How to amend 2012 taxes online C. How to amend 2012 taxes online calling area must call 202-606-0500). How to amend 2012 taxes online No special form is needed. How to amend 2012 taxes online You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. How to amend 2012 taxes online If you have TTY/TDD equipment, call 1-855–887–4957. How to amend 2012 taxes online If you need a PIN, call OPM's Retirement Information Office. How to amend 2012 taxes online You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. How to amend 2012 taxes online servicesonline. How to amend 2012 taxes online opm. How to amend 2012 taxes online gov. How to amend 2012 taxes online You will need your retirement CSA or CSF claim number and your PIN. How to amend 2012 taxes online Withholding from certain lump-sum payments. How to amend 2012 taxes online   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. How to amend 2012 taxes online Tax will be withheld at a 20% rate on the interest distributed. How to amend 2012 taxes online However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. How to amend 2012 taxes online If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. How to amend 2012 taxes online Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. How to amend 2012 taxes online See Rollover Rules in Part II. How to amend 2012 taxes online If you receive only your contributions, no tax will be withheld. How to amend 2012 taxes online Withholding from Thrift Savings Plan payments. How to amend 2012 taxes online   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. How to amend 2012 taxes online The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. How to amend 2012 taxes online  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. How to amend 2012 taxes online By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. How to amend 2012 taxes online   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. How to amend 2012 taxes online The above document is also available in the “Forms & Publications” section of the TSP website at www. How to amend 2012 taxes online tsp. How to amend 2012 taxes online gov. How to amend 2012 taxes online Estimated tax. How to amend 2012 taxes online   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). How to amend 2012 taxes online The return must cover all 12 months. How to amend 2012 taxes online   You do not have to pay estimated tax for 2014 if you were a U. How to amend 2012 taxes online S. How to amend 2012 taxes online citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. How to amend 2012 taxes online   Publication 505 contains information that you can use to help you figure your estimated tax payments. How to amend 2012 taxes online Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. How to amend 2012 taxes online The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. How to amend 2012 taxes online Children. How to amend 2012 taxes online   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. How to amend 2012 taxes online   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. How to amend 2012 taxes online Form CSF 1099R. How to amend 2012 taxes online   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. How to amend 2012 taxes online It will show the total amount of the annuity you received in the past year. How to amend 2012 taxes online It also should show, separately, the survivor annuity for a child or children. How to amend 2012 taxes online Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. How to amend 2012 taxes online   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. How to amend 2012 taxes online    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. How to amend 2012 taxes online servicesonline. How to amend 2012 taxes online opm. How to amend 2012 taxes online gov. How to amend 2012 taxes online To log in you will need your retirement CSF claim number and personal identification number. How to amend 2012 taxes online    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. How to amend 2012 taxes online C. How to amend 2012 taxes online calling area must call 202-606-0500). How to amend 2012 taxes online You will need your CSF claim number and your social security number when you call. How to amend 2012 taxes online Taxable part of annuity. How to amend 2012 taxes online   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. How to amend 2012 taxes online To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. How to amend 2012 taxes online Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. How to amend 2012 taxes online If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. How to amend 2012 taxes online However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. How to amend 2012 taxes online Annuity statement. How to amend 2012 taxes online   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). How to amend 2012 taxes online You will use this information to figure the tax-free recovery of your cost. How to amend 2012 taxes online Annuity starting date. How to amend 2012 taxes online   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. How to amend 2012 taxes online If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. How to amend 2012 taxes online Gross monthly rate. How to amend 2012 taxes online   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. How to amend 2012 taxes online Your cost. How to amend 2012 taxes online   Your monthly annuity payment contains an amount on which you have previously paid income tax. How to amend 2012 taxes online This amount represents part of your contributions to the retirement plan. How to amend 2012 taxes online Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. How to amend 2012 taxes online   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. How to amend 2012 taxes online If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. How to amend 2012 taxes online (See Lump-sum credit under Alternative Annuity Option, later. How to amend 2012 taxes online )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. How to amend 2012 taxes online You cannot claim an interest deduction for any interest payments. How to amend 2012 taxes online You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. How to amend 2012 taxes online Recovering your cost tax free. How to amend 2012 taxes online   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. How to amend 2012 taxes online If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. How to amend 2012 taxes online If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). How to amend 2012 taxes online If your annuity starting date is after November 18, 1996, you must use the Simplified Method. How to amend 2012 taxes online   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). How to amend 2012 taxes online The tax-free part is a fixed dollar amount. How to amend 2012 taxes online It remains the same, even if your annuity is increased. How to amend 2012 taxes online Generally, this rule applies as long as you receive your annuity. How to amend 2012 taxes online However, see Exclusion limit , later. How to amend 2012 taxes online Choosing a survivor annuity after retirement. How to amend 2012 taxes online    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. How to amend 2012 taxes online   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. How to amend 2012 taxes online To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. How to amend 2012 taxes online Figure the expected return as of the date the reduced annuity begins. How to amend 2012 taxes online For details on the General Rule, see Publication 939. How to amend 2012 taxes online Canceling a survivor annuity after retirement. How to amend 2012 taxes online   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. How to amend 2012 taxes online The increased annuity does not change the cost recovery you figured at the annuity starting date. How to amend 2012 taxes online The tax-free part of each annuity payment remains the same. How to amend 2012 taxes online    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. How to amend 2012 taxes online C. How to amend 2012 taxes online calling area must call 202-606-0500). How to amend 2012 taxes online Exclusion limit. How to amend 2012 taxes online   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. How to amend 2012 taxes online Annuity starting date after 1986. How to amend 2012 taxes online   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. How to amend 2012 taxes online Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. How to amend 2012 taxes online Example. How to amend 2012 taxes online Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. How to amend 2012 taxes online If your cost is $12,000, the exclusion ends after 10 years (120 months). How to amend 2012 taxes online Thereafter, your entire annuity is generally fully taxable. How to amend 2012 taxes online Annuity starting date before 1987. How to amend 2012 taxes online   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. How to amend 2012 taxes online If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. How to amend 2012 taxes online The total exclusion may be more than your cost. How to amend 2012 taxes online Deduction of unrecovered cost. How to amend 2012 taxes online   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. How to amend 2012 taxes online The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). How to amend 2012 taxes online If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. How to amend 2012 taxes online Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. How to amend 2012 taxes online (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. How to amend 2012 taxes online ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. How to amend 2012 taxes online The Simplified Method does not apply if your annuity starting date is before July 2, 1986. How to amend 2012 taxes online Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. How to amend 2012 taxes online This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. How to amend 2012 taxes online If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. How to amend 2012 taxes online Worksheet A. How to amend 2012 taxes online   Use Worksheet A. How to amend 2012 taxes online Simplified Method (near the end of this publication), to figure your taxable annuity. How to amend 2012 taxes online Be sure to keep the completed worksheet. How to amend 2012 taxes online It will help you figure your taxable amounts for later years. How to amend 2012 taxes online Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. How to amend 2012 taxes online However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. How to amend 2012 taxes online Line 2. How to amend 2012 taxes online   See Your cost , earlier, for an explanation of your cost in the plan. How to amend 2012 taxes online If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. How to amend 2012 taxes online Line 3. How to amend 2012 taxes online   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. How to amend 2012 taxes online If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. How to amend 2012 taxes online If your annuity starting date is before 1998, use Table 1. How to amend 2012 taxes online Line 6. How to amend 2012 taxes online   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. How to amend 2012 taxes online If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. How to amend 2012 taxes online Example. How to amend 2012 taxes online Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. How to amend 2012 taxes online His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. How to amend 2012 taxes online He must use the Simplified Method to figure the tax-free part of his annuity benefits. How to amend 2012 taxes online Bill's monthly annuity benefit is $1,000. How to amend 2012 taxes online He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. How to amend 2012 taxes online At his annuity starting date, he was 65 and Kathy was 57. How to amend 2012 taxes online Bill's completed Worksheet A is shown later. How to amend 2012 taxes online To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). How to amend 2012 taxes online Bill keeps a copy of the completed worksheet for his records. How to amend 2012 taxes online It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. How to amend 2012 taxes online Bill's tax-free monthly amount is $100. How to amend 2012 taxes online (See line 4 of the worksheet. How to amend 2012 taxes online ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. How to amend 2012 taxes online If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. How to amend 2012 taxes online If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. How to amend 2012 taxes online General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. How to amend 2012 taxes online If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. How to amend 2012 taxes online If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. How to amend 2012 taxes online Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. How to amend 2012 taxes online Figuring this percentage is complex and requires the use of actuarial tables. How to amend 2012 taxes online For these tables and other information about using the General Rule, see Publication 939. How to amend 2012 taxes online Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. How to amend 2012 taxes online Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. How to amend 2012 taxes online After your cost was recovered, all payments became fully taxable. How to amend 2012 taxes online You cannot use another rule to again exclude amounts from income. How to amend 2012 taxes online The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. How to amend 2012 taxes online Worksheet A. How to amend 2012 taxes online Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. How to amend 2012 taxes online 1. How to amend 2012 taxes online Enter the total pension or annuity payments received this year. How to amend 2012 taxes online Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. How to amend 2012 taxes online $ 8,000 2. How to amend 2012 taxes online Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. How to amend 2012 taxes online See Your cost in Part II, Rules for Retirees, earlier 2. How to amend 2012 taxes online 31,000 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). How to amend 2012 taxes online Otherwise, go to line 3. How to amend 2012 taxes online   3. How to amend 2012 taxes online Enter the appropriate number from Table 1 below. How to amend 2012 taxes online But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. How to amend 2012 taxes online 3. How to amend 2012 taxes online 310 4. How to amend 2012 taxes online Divide line 2 by the number on line 3 4. How to amend 2012 taxes online 100 5. How to amend 2012 taxes online Multiply line 4 by the number of months for which this year's payments were made. How to amend 2012 taxes online If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. How to amend 2012 taxes online Otherwise, go to line 6 5. How to amend 2012 taxes online 800 6. How to amend 2012 taxes online Enter any amounts previously recovered tax free in years after 1986. How to amend 2012 taxes online This is the amount shown on line 10 of your worksheet for last year 6. How to amend 2012 taxes online 0 7. How to amend 2012 taxes online Subtract line 6 from line 2 7. How to amend 2012 taxes online 31,000 8. How to amend 2012 taxes online Enter the smaller of line 5 or line 7 8. How to amend 2012 taxes online 800 9. How to amend 2012 taxes online Taxable amount for year. How to amend 2012 taxes online Subtract line 8 from line 1. How to amend 2012 taxes online Enter the result, but not less than zero. How to amend 2012 taxes online Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. How to amend 2012 taxes online If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. How to amend 2012 taxes online If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. How to amend 2012 taxes online If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. How to amend 2012 taxes online $7,200 10. How to amend 2012 taxes online Was your annuity starting date before 1987?   Yes. How to amend 2012 taxes online Do not complete the rest of this worksheet. How to amend 2012 taxes online    No. How to amend 2012 taxes online Add lines 6 and 8. How to amend 2012 taxes online This is the amount you have recovered tax free through 2013. How to amend 2012 taxes online You will need this number if you need to fill out this worksheet next year 10. How to amend 2012 taxes online 800 11. How to amend 2012 taxes online Balance of cost to be recovered. How to amend 2012 taxes online Subtract line 10 from line 2. How to amend 2012 taxes online If zero, you will not have to complete this worksheet next year. How to amend 2012 taxes online The payments you receive next year will generally be fully taxable 11. How to amend 2012 taxes online $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. How to amend 2012 taxes online Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. How to amend 2012 taxes online If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. How to amend 2012 taxes online You are eligible to make this choice if you meet all of the following requirements. How to amend 2012 taxes online You are retiring, but not on disability. How to amend 2012 taxes online You have a life-threatening illness or other critical medical condition. How to amend 2012 taxes online You do not have a former spouse entitled to court ordered benefits based on your service. How to amend 2012 taxes online If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. How to amend 2012 taxes online Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. How to amend 2012 taxes online The tax-free part represents part of your cost. How to amend 2012 taxes online The taxable part represents part of the earnings on your annuity contract. How to amend 2012 taxes online Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. How to amend 2012 taxes online Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. How to amend 2012 taxes online Your taxable amount may therefore be more than the lump-sum payment you receive. How to amend 2012 taxes online You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. How to amend 2012 taxes online If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. How to amend 2012 taxes online See Rollover Rules , later, for information on how to make a rollover. How to amend 2012 taxes online OPM can make a direct rollover only up to the amount of the lump-sum payment. How to amend 2012 taxes online Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. How to amend 2012 taxes online The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. How to amend 2012 taxes online It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. How to amend 2012 taxes online For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. How to amend 2012 taxes online Worksheet B. How to amend 2012 taxes online   Use Worksheet B. How to amend 2012 taxes online Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. How to amend 2012 taxes online Be sure to keep the completed worksheet for your records. How to amend 2012 taxes online   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. How to amend 2012 taxes online Lump-sum credit. How to amend 2012 taxes online   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). How to amend 2012 taxes online However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. How to amend 2012 taxes online Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. How to amend 2012 taxes online Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. How to amend 2012 taxes online You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. How to amend 2012 taxes online Present value of your annuity contract. How to amend 2012 taxes online   The present value of your annuity contract is figured using actuarial tables provided by the IRS. How to amend 2012 taxes online If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. How to amend 2012 taxes online Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. How to amend 2012 taxes online , NW Washington, DC 20224-0002 Example. How to amend 2012 taxes online David Brown retired from the federal government in 2013, one month after his 55th birthday. How to amend 2012 taxes online He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. How to amend 2012 taxes online The present value of his annuity contract was $155,000. How to amend 2012 taxes online The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. How to amend 2012 taxes online The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. How to amend 2012 taxes online See Reduced Annuity , later. How to amend 2012 taxes online Worksheet B. How to amend 2012 taxes online Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . How to amend 2012 taxes online  1. How to amend 2012 taxes online Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. How to amend 2012 taxes online $ 31,000 2. How to amend 2012 taxes online Enter the present value of your annuity contract 2. How to amend 2012 taxes online 155,000 3. How to amend 2012 taxes online Divide line 1 by line 2 3. How to amend 2012 taxes online . How to amend 2012 taxes online 20 4. How to amend 2012 taxes online Tax-free amount. How to amend 2012 taxes online Multiply line 1 by line 3. How to amend 2012 taxes online (Caution: Do not include this amount on line 6 of Worksheet A in this publication. How to amend 2012 taxes online ) 4. How to amend 2012 taxes online $6,200 5. How to amend 2012 taxes online Taxable amount (net cost in the plan). How to amend 2012 taxes online Subtract line 4 from line 1. How to amend 2012 taxes online Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. How to amend 2012 taxes online Also, enter this amount on line 2 of Worksheet A in this publication. How to amend 2012 taxes online 5. How to amend 2012 taxes online $24,800   Lump-sum payment in installments. How to amend 2012 taxes online   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. How to amend 2012 taxes online You will receive the first installment after you make the choice upon retirement. How to amend 2012 taxes online The second installment will be paid to you, with interest, in the next calendar year. How to amend 2012 taxes online (Exceptions to the installment rule are provided for cases of critical medical need. How to amend 2012 taxes online )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. How to amend 2012 taxes online If the payment has a tax-free part, you must treat the taxable part as received first. How to amend 2012 taxes online How to report. How to amend 2012 taxes online   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. How to amend 2012 taxes online Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. How to amend 2012 taxes online    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. How to amend 2012 taxes online Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. How to amend 2012 taxes online These annuity payments each will have a tax-free and a taxable part. How to amend 2012 taxes online To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). How to amend 2012 taxes online For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. How to amend 2012 taxes online To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. How to amend 2012 taxes online Enter as your net cost on line 2 the amount from Worksheet B, line 5. How to amend 2012 taxes online Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. How to amend 2012 taxes online Example. How to amend 2012 taxes online The facts are the same as in the example for David Brown in the preceding discussion. How to amend 2012 taxes online In addition, David received 10 annuity payments in 2013 of $1,200 each. How to amend 2012 taxes online Using Worksheet A, he figures the taxable part of his annuity payments. How to amend 2012 taxes online He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. How to amend 2012 taxes online His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). How to amend 2012 taxes online He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. How to amend 2012 taxes online David's filled-in Worksheet A is shown on the next page. How to amend 2012 taxes online Worksheet A. How to amend 2012 taxes online Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . How to amend 2012 taxes online 1. How to amend 2012 taxes online Enter the total pension or annuity payments received this year. How to amend 2012 taxes online Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. How to amend 2012 taxes online $ 12,000 2. How to amend 2012 taxes online Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. How to amend 2012 taxes online See Your cost in Part II, Rules for Retirees, earlier 2. How to amend 2012 taxes online 24,800 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). How to amend 2012 taxes online Otherwise, go to line 3. How to amend 2012 taxes online   3. How to amend 2012 taxes online Enter the appropriate number from Table 1 below. How to amend 2012 taxes online But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. How to amend 2012 taxes online 3. How to amend 2012 taxes online 360 4. How to amend 2012 taxes online Divide line 2 by the number on line 3 4. How to amend 2012 taxes online 68. How to amend 2012 taxes online 89 5. How to amend 2012 taxes online Multiply line 4 by the number of months for which this year's payments were made. How to amend 2012 taxes online If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. How to amend 2012 taxes online Otherwise, go to line 6 5. How to amend 2012 taxes online 688. How to amend 2012 taxes online 90 6. How to amend 2012 taxes online Enter any amounts previously recovered tax free in years after 1986. How to amend 2012 taxes online This is the amount shown on line 10 of your worksheet for last year 6. How to amend 2012 taxes online 0 7. How to amend 2012 taxes online Subtract line 6 from line 2 7. How to amend 2012 taxes online 24,800 8. How to amend 2012 taxes online Enter the smaller of line 5 or line 7 8. How to amend 2012 taxes online 688. How to amend 2012 taxes online 90 9. How to amend 2012 taxes online Taxable amount for year. How to amend 2012 taxes online Subtract line 8 from line 1. How to amend 2012 taxes online Enter the result, but not less than zero. How to amend 2012 taxes online Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. How to amend 2012 taxes online If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. How to amend 2012 taxes online If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. How to amend 2012 taxes online If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. How to amend 2012 taxes online $11,311. How to amend 2012 taxes online 10 10. How to amend 2012 taxes online Was your annuity starting date before 1987?   Yes. How to amend 2012 taxes online Do not complete the rest of this worksheet. How to amend 2012 taxes online    No. How to amend 2012 taxes online Add lines 6 and 8. How to amend 2012 taxes online This is the amount you have recovered tax free through 2013. How to amend 2012 taxes online You will need this number if you need to fill out this worksheet next year 10. How to amend 2012 taxes online 688. How to amend 2012 taxes online 90 11. How to amend 2012 taxes online Balance of cost to be recovered. How to amend 2012 taxes online Subtract line 10 from line 2. How to amend 2012 taxes online If zero, you will not have to complete this worksheet next year. How to amend 2012 taxes online The payments you receive next year will generally be fully taxable 11. How to amend 2012 taxes online $24,111. How to amend 2012 taxes online 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. How to amend 2012 taxes online Reemployment after choosing the alternative annuity option. How to amend 2012 taxes online If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. How to amend 2012 taxes online If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. How to amend 2012 taxes online Annuity starting date before November 19, 1996. How to amend 2012 taxes online   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. How to amend 2012 taxes online Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. How to amend 2012 taxes online However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. How to amend 2012 taxes online Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. How to amend 2012 taxes online The gift may be taxable for gift tax purposes. How to amend 2012 taxes online The value of the gift is equal to the value of the annuity. How to amend 2012 taxes online Joint and survivor annuity. How to amend 2012 taxes online   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. How to amend 2012 taxes online This will eliminate any gift tax liability with regard to that gift. How to amend 2012 taxes online   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. How to amend 2012 taxes online This may result in a taxable gift. How to amend 2012 taxes online More information. How to amend 2012 taxes online   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. How to amend 2012 taxes online Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. How to amend 2012 taxes online Annual leave. How to amend 2012 taxes online   A payment for accrued annual leave received on retirement is a salary payment. How to amend 2012 taxes online It is taxable as wages in the tax year you receive it. How to amend 2012 taxes online Voluntary contributions. How to amend 2012 taxes online   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. How to amend 2012 taxes online They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. How to amend 2012 taxes online Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. How to amend 2012 taxes online See Thrift Savings Plan , later. How to amend 2012 taxes online Additional annuity benefit. How to amend 2012 taxes online   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. How to amend 2012 taxes online This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. How to amend 2012 taxes online It does not matter that you receive only one monthly check covering both benefits. How to amend 2012 taxes online Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. How to amend 2012 taxes online   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. How to amend 2012 taxes online Refund of voluntary contributions. How to amend 2012 taxes online   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. How to amend 2012 taxes online If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. How to amend 2012 taxes online See Rollover Rules , later. How to amend 2012 taxes online The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. How to amend 2012 taxes online It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. How to amend 2012 taxes online For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. How to amend 2012 taxes online Community property laws. How to amend 2012 taxes online   State community property laws apply to your annuity. How to amend 2012 taxes online These laws will affect your income tax only if you file a return separately from your spouse. How to amend 2012 taxes online   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. How to amend 2012 taxes online Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. How to amend 2012 taxes online   At any time, you have only one domicile even though you may have more than one home. How to amend 2012 taxes online Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. How to amend 2012 taxes online The question of your domicile is mainly a matter of your intentions as indicated by your actions. How to amend 2012 taxes online   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. How to amend 2012 taxes online The division is based on your periods of service and domicile in community and noncommunity property states while you were married. How to amend 2012 taxes online   For more information, see Publication 555, Community Property. How to amend 2012 taxes online Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. How to amend 2012 taxes online The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. How to amend 2012 taxes online This amount is taxable as wages. How to amend 2012 taxes online Your annuity will continue to be taxed just as it was before. How to amend 2012 taxes online If you are still recovering your cost, you continue to do so. How to amend 2012 taxes online If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. How to amend 2012 taxes online Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. How to amend 2012 taxes online A nonresident alien is an individual who is not a citizen or a resident alien of the United States. How to amend 2012 taxes online Special rule for figuring your total contributions. How to amend 2012 taxes online   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. How to amend 2012 taxes online You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. How to amend 2012 taxes online For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. How to amend 2012 taxes online Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. How to amend 2012 taxes online   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. How to amend 2012 taxes online Limit on taxable amount. How to amend 2012 taxes online   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. How to amend 2012 taxes online Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. How to amend 2012 taxes online The numerator of the fraction is the retiree's total U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government basic pay, other than tax-exempt pay for services performed outside the United States. How to amend 2012 taxes online The denominator is the retiree's total U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government basic pay for all services. How to amend 2012 taxes online    Basic pay includes regular pay plus any standby differential. How to amend 2012 taxes online It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. How to amend 2012 taxes online   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. How to amend 2012 taxes online (For an annuity, first complete Worksheet A in this publication. How to amend 2012 taxes online ) Worksheet C. How to amend 2012 taxes online Limited Taxable Amount for Nonresident Alien 1. How to amend 2012 taxes online Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. How to amend 2012 taxes online   2. How to amend 2012 taxes online Enter the total U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government basic pay other than tax-exempt pay for services performed outside the United States 2. How to amend 2012 taxes online   3. How to amend 2012 taxes online Enter the total U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government basic pay for all services 3. How to amend 2012 taxes online   4. How to amend 2012 taxes online Divide line 2 by line 3 4. How to amend 2012 taxes online   5. How to amend 2012 taxes online Limited taxable amount. How to amend 2012 taxes online Multiply line 1 by line 4. How to amend 2012 taxes online Enter this amount on Form 1040NR, line 17b 5. How to amend 2012 taxes online   Example 1. How to amend 2012 taxes online You are a nonresident alien who performed all services for the U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government abroad as a nonresident alien. How to amend 2012 taxes online You retired and began to receive a monthly annuity of $200. How to amend 2012 taxes online Your total basic pay for all services for the U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government was $100,000. How to amend 2012 taxes online All of your basic pay was tax exempt because it was not U. How to amend 2012 taxes online S. How to amend 2012 taxes online source income. How to amend 2012 taxes online The taxable amount of your annuity using Worksheet A in this publication is $720. How to amend 2012 taxes online You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. How to amend 2012 taxes online Worksheet C. How to amend 2012 taxes online Limited Taxable Amount for Nonresident Alien — Example 1 1. How to amend 2012 taxes online Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. How to amend 2012 taxes online $ 720 2. How to amend 2012 taxes online Enter the total U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government basic pay other than tax-exempt pay for services performed outside the United States 2. How to amend 2012 taxes online 0 3. How to amend 2012 taxes online Enter the total U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government basic pay for all services 3. How to amend 2012 taxes online 100,000 4. How to amend 2012 taxes online Divide line 2 by line 3 4. How to amend 2012 taxes online 0 5. How to amend 2012 taxes online Limited taxable amount. How to amend 2012 taxes online Multiply line 1 by line 4. How to amend 2012 taxes online Enter this amount on Form 1040NR, line 17b 5. How to amend 2012 taxes online 0 Example 2. How to amend 2012 taxes online You are a nonresident alien who performed services for the U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government as a nonresident alien both within the United States and abroad. How to amend 2012 taxes online You retired and began to receive a monthly annuity of $240. How to amend 2012 taxes online Your total basic pay for your services for the U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. How to amend 2012 taxes online The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. How to amend 2012 taxes online S. How to amend 2012 taxes online source income. How to amend 2012 taxes online The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. How to amend 2012 taxes online You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. How to amend 2012 taxes online Worksheet C. How to amend 2012 taxes online Limited Taxable Amount for Nonresident Alien — Example 2 1. How to amend 2012 taxes online Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. How to amend 2012 taxes online $ 1,980 2. How to amend 2012 taxes online Enter the total U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government basic pay other than tax-exempt pay for services performed outside the United States 2. How to amend 2012 taxes online 40,000 3. How to amend 2012 taxes online Enter the total U. How to amend 2012 taxes online S. How to amend 2012 taxes online Government basic pay for all services 3. How to amend 2012 taxes online 120,000 4. How to amend 2012 taxes online Divide line 2 by line 3 4. How to amend 2012 taxes online . How to amend 2012 taxes online 333 5. How to amend 2012 taxes online Limited taxable amount. How to amend 2012 taxes online Multiply line 1 by line 4. How to amend 2012 taxes online Enter this amount on Form 1040NR, line 17b 5. How to amend 2012 taxes online 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. How to amend 2012 taxes online (However, see Roth TSP balance and Uniformed services TSP accounts, next. How to amend 2012 taxes online ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. How to amend 2012 taxes online The way that you withdraw your account balance determines when you must pay the tax. How to amend 2012 taxes online Roth TSP balance. How to amend 2012 taxes online   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. How to amend 2012 taxes online This means Roth TSP contributions are included in your income. How to amend 2012 taxes online The contribution limits are the same as the traditional TSP. How to amend 2012 taxes online You can elect to have part or all of your TSP contributions designated as a Roth TSP. How to amend 2012 taxes online Agency contributions will be part of your traditional TSP balance. How to amend 2012 taxes online Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. How to amend 2012 taxes online   Qualified distributions from your Roth TSP are not included in income. How to amend 2012 taxes online This applies to both your cost in the account and income earned on that account. How to amend 2012 taxes online A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. How to amend 2012 taxes online   For more information, go to the TSP website, www. How to amend 2012 taxes online tsp. How to amend 2012 taxes online gov, or the TSP Service Office. How to amend 2012 taxes online See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. How to amend 2012 taxes online Uniformed services TSP accounts. How to amend 2012 taxes online   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. How to amend 2012 taxes online However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. How to amend 2012 taxes online See Roth TSP balance discussed previously to get more information about Roth contributions. How to amend 2012 taxes online The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. How to amend 2012 taxes online You can get more information from the TSP website, www. How to amend 2012 taxes online tsp. How to amend 2012 taxes online gov, or the TSP Service Office. How to amend 2012 taxes online Direct rollover by the TSP. How to amend 2012 taxes online   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. How to amend 2012 taxes online However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. How to amend 2012 taxes online Also, see Rollover Rules , later. How to amend 2012 taxes online Direct rollover by the TSP to a Roth IRA. How to amend 2012 taxes online   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. How to amend 2012 taxes online However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. How to amend 2012 taxes online Also, see Rollovers to Roth IRAs for more information, later. How to amend 2012 taxes online Note. How to amend 2012 taxes online A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. How to amend 2012 taxes online This is because you already paid tax on those contributions. How to amend 2012 taxes online You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. How to amend 2012 taxes online TSP annuity. How to amend 2012 taxes online   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. How to amend 2012 taxes online The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. How to amend 2012 taxes online However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. How to amend 2012 taxes online See Roth TSP balance , earlier. How to amend 2012 taxes online This is because you already paid tax on those contributions. How to amend 2012 taxes online Cash withdrawals. How to amend 2012 taxes online   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. How to amend 2012 taxes online (See Rollover Rules , later. How to amend 2012 taxes online ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. How to amend 2012 taxes online See Lump-Sum Distributions in Publication 575 for details. How to amend 2012 taxes online However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. How to amend 2012 taxes online See Roth TSP balance , earlier. How to amend 2012 taxes online    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. How to amend 2012 taxes online   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. How to amend 2012 taxes online If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. How to amend 2012 taxes online See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. How to amend 2012 taxes online However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. How to amend 2012 taxes online See Roth TSP balance , earlier, for a discussion of those conditions. How to amend 2012 taxes online Tax on early distributions. How to amend 2012 taxes online   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. How to amend 2012 taxes online However, this additional tax does not apply in certain situations, including any of the following. How to amend 2012 taxes online You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. How to amend 2012 taxes online You choose to receive your account balance in monthly payments based on your life expectancy. How to amend 2012 taxes online You are totally and permanently disabled. How to amend 2012 taxes online You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). How to amend 2012 taxes online The earnings may be subject to the 10% tax depending on whether you met certain conditions. How to amend 2012 taxes online See Roth TSP balance , earlier. How to amend 2012 taxes online   For more information, see Tax on Early Distributions in Publication 575. How to amend 2012 taxes online Outstanding loan. How to amend 2012 taxes online   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. How to amend 2012 taxes online The distribution also may be subject to the additional 10% tax on early distributions. How to amend 2012 taxes online However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. How to amend 2012 taxes online See Rollover Rules , later. How to amend 2012 taxes online   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. How to amend 2012 taxes online However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. How to amend 2012 taxes online See Roth TSP balance , earlier. How to amend 2012 taxes online More information. How to amend 2012 taxes online   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. How to amend 2012 taxes online Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). How to amend 2012 taxes online    The above documents are also available on the TSP website at www. How to amend 2012 taxes online tsp. How to amend 2012 taxes online gov. How to amend 2012 taxes online Select “Forms & Publications. How to amend 2012 taxes online ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. How to amend 2012 taxes online You do not include the amount rolled over in your income, and you cannot take a deduction for it. How to amend 2012 taxes online The amount rolled over is taxed later as the new program pays that amount to you. How to amend 2012 taxes online If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. How to amend 2012 taxes online However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. How to amend 2012 taxes online To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. How to amend 2012 taxes online You can also roll over a distribution from a qualified retirement plan into a Roth IRA. How to amend 2012 taxes online Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. How to amend 2012 taxes online See Rollovers to Roth IRAs , later, for more information. How to amend 2012 taxes online Qualified retirement plan. How to amend 2012 taxes online   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. How to amend 2012 taxes online The CSRS, FERS, and TSP are considered qualified retirement plans. How to amend 2012 taxes online Distributions eligible for rollover treatment. How to amend 2012 taxes online   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. How to amend 2012 taxes online You cannot roll over any part of your CSRS or FERS annuity payments. How to amend 2012 taxes online   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. How to amend 2012 taxes online   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. How to amend 2012 taxes online However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. How to amend 2012 taxes online Direct rollover option. How to amend 2012 taxes online   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. How to amend 2012 taxes online   There is an automatic rollover requirement for mandatory distributions. How to amend 2012 taxes online A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. How to amend 2012 taxes online The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. How to amend 2012 taxes online You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. How to amend 2012 taxes online If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. How to amend 2012 taxes online No tax withheld. How to amend 2012 taxes online   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. How to amend 2012 taxes online However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. How to amend 2012 taxes online Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. How to amend 2012 taxes online Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. How to amend 2012 taxes online Payment to you option. How to amend 2012 taxes online   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. How to amend 2012 taxes online However, the full amount is treated as distributed to you even though you actually receive only 80%. How to amend 2012 taxes online You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. How to amend 2012 taxes online Rollovers to Roth IRAs are generally included in income. How to amend 2012 taxes online Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. How to amend 2012 taxes online If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. How to amend 2012 taxes online However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). How to amend 2012 taxes online Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. How to amend 2012 taxes online See Roth TSP balance , earlier. How to amend 2012 taxes online Also, see Tax on Early Distributions in Publication 575. How to amend 2012 taxes online Exception to withholding. How to amend 2012 taxes online   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. How to amend 2012 taxes online Partial rollovers. How to amend 2012 taxes online   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. How to amend 2012 taxes online See Lump-Sum Distributions in Publication 575. How to amend 2012 taxes online However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. How to amend 2012 taxes online Rolling over more than amount received. How to amend 2012 taxes online   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). How to amend 2012 taxes online Example. How to amend 2012 taxes online You left government service at age 53. How to amend 2012 taxes online On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
Print - Click this link to Print this page

Tax Relief for Victims of Hurricane Isaac in Mississippi

LA/MS-2012-14, Sept. 5, 2012

Updated 10/01/12 to include Copiah, Franklin, Jefferson, Jones and Lamar counties.

Updated 9/10/12 to include Adams, Amite, Clarke, Forrest, George, Hinds, Lincoln, Marion, Pike, Stone, Walthall, Warren and Wilkinson counties.

NEW ORLEANS — Victims of Hurricane Isaac that began on Aug. 26, 2012 in parts of Mississippi may qualify for tax relief from the Internal Revenue Service.

Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Mississippi will receive tax relief, and other locations may be added in coming days based on additional damage assessments by FEMA.

The President has declared the counties of Adams, Amite, Clarke, Copiah, Forrest, Franklin, George, Hancock, Harrison, Hinds, Jackson, Jefferson, Jones, Lamar, Lincoln, Marion, Pearl River, Pike, Stone, Walthall, Warren and Wilkinson a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 26, and on or before Jan. 11, 2013, have been postponed to Jan. 11, 2013. This includes the quarterly estimated tax payment due on Sept. 17, 2012.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 26, and on or before Sept. 10, as long as the deposits are made by Sept. 10, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitutes a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and is entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Jan. 11, 2013, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 26 and on or before Jan. 11, 2013.

The IRS also gives affected taxpayers until Jan. 11, 2013, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 26 and on or before Jan. 11, 2013.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 26 and on or before Sept. 10 provided the taxpayer makes these deposits by Sept. 10.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “MISSISSIPPI/HURRICANE ISAAC” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, IRS.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Page Last Reviewed or Updated: 14-Aug-2013

The How To Amend 2012 Taxes Online

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