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Printable Tax Forms 1040ez

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Printable Tax Forms 1040ez

Printable tax forms 1040ez 33. Printable tax forms 1040ez   Credit for the Elderly or the Disabled Table of Contents Introduction Useful Items - You may want to see: Are You Eligible for the Credit?Qualified Individual Income Limits How to Claim the CreditCredit Figured for You Credit Figured by You Introduction If you qualify, you may be able to reduce the tax you owe by taking the credit for the elderly or the disabled which is figured on Schedule R (Form 1040A or 1040). Printable tax forms 1040ez This chapter explains the following. Printable tax forms 1040ez Who qualifies for the credit for the elderly or the disabled. Printable tax forms 1040ez How to claim the credit. Printable tax forms 1040ez You may be able to take the credit for the elderly or the disabled if: You are age 65 or older at the end of 2013, or You retired on permanent and total disability and have taxable disability income. Printable tax forms 1040ez Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 554 Tax Guide for Seniors Form (and Instruction) Schedule R (Form 1040A or 1040) Credit for the Elderly or the Disabled Are You Eligible for the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Printable tax forms 1040ez You are a qualified individual. Printable tax forms 1040ez Your income is not more than certain limits. Printable tax forms 1040ez You can use Figure 33-A and Table 33-1 as guides to see if you are eligible for the credit. Printable tax forms 1040ez Use Figure 33-A first to see if you are a qualified individual. Printable tax forms 1040ez If you are, go to Table 33-1 to make sure your income is not too high to take the credit. Printable tax forms 1040ez You can take the credit only if you file Form 1040 or Form 1040A. Printable tax forms 1040ez You cannot take the credit if you file Form 1040EZ. Printable tax forms 1040ez Qualified Individual You are a qualified individual for this credit if you are a U. Printable tax forms 1040ez S. Printable tax forms 1040ez citizen or resident alien, and either of the following applies. Printable tax forms 1040ez You were age 65 or older at the end of 2013. Printable tax forms 1040ez You were under age 65 at the end of 2013 and all three of the following statements are true. Printable tax forms 1040ez You retired on permanent and total disability (explained later). Printable tax forms 1040ez You received taxable disability income for 2013. Printable tax forms 1040ez On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Printable tax forms 1040ez Age 65. Printable tax forms 1040ez   You are considered to be age 65 on the day before your 65th birthday. Printable tax forms 1040ez Therefore, if you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Printable tax forms 1040ez U. Printable tax forms 1040ez S. Printable tax forms 1040ez Citizen or Resident Alien You must be a U. Printable tax forms 1040ez S. Printable tax forms 1040ez citizen or resident alien (or be treated as a resident alien) to take the credit. Printable tax forms 1040ez Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Printable tax forms 1040ez Exceptions. Printable tax forms 1040ez   You may be able to take the credit if you are a nonresident alien who is married to a U. Printable tax forms 1040ez S. Printable tax forms 1040ez citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Printable tax forms 1040ez S. Printable tax forms 1040ez resident alien. Printable tax forms 1040ez If you make that choice, both you and your spouse are taxed on your worldwide incomes. Printable tax forms 1040ez If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Printable tax forms 1040ez S. Printable tax forms 1040ez citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Printable tax forms 1040ez S. Printable tax forms 1040ez resident alien for the entire year. Printable tax forms 1040ez In that case, you may be allowed to take the credit. Printable tax forms 1040ez For information on these choices, see chapter 1 of Publication 519, U. Printable tax forms 1040ez S. Printable tax forms 1040ez Tax Guide for Aliens. Printable tax forms 1040ez Married Persons Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Printable tax forms 1040ez However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Printable tax forms 1040ez Head of household. Printable tax forms 1040ez   You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you meet certain tests. Printable tax forms 1040ez See Head of Household in chapter 2 for the tests you must meet. Printable tax forms 1040ez Under Age 65 If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability (discussed next) and have taxable disability income (discussed later under Disability income ). Printable tax forms 1040ez You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the close of the tax year. Printable tax forms 1040ez Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Printable tax forms 1040ez If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Printable tax forms 1040ez Permanent and total disability. Printable tax forms 1040ez    You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Printable tax forms 1040ez A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Printable tax forms 1040ez See Physician's statement , later. Printable tax forms 1040ez Substantial gainful activity. Printable tax forms 1040ez   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Printable tax forms 1040ez Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Printable tax forms 1040ez   Substantial gainful activity is not work you do to take care of yourself or your home. Printable tax forms 1040ez It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Printable tax forms 1040ez However, doing this kind of work may show that you are able to engage in substantial gainful activity. Printable tax forms 1040ez    The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Printable tax forms 1040ez Sheltered employment. Printable tax forms 1040ez   Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. Printable tax forms 1040ez These qualified locations are in sheltered workshops, hospitals, and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes. Printable tax forms 1040ez   Compared to commercial employment, pay is lower for sheltered employment. Printable tax forms 1040ez Therefore, one usually does not look for sheltered employment if he or she can get other employment. Printable tax forms 1040ez The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial gainful activity. Printable tax forms 1040ez Physician's statement. Printable tax forms 1040ez   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Printable tax forms 1040ez You can use the statement in the Instructions for Schedule R. Printable tax forms 1040ez    Figure 33-A. Printable tax forms 1040ez Are You a Qualified Individual? This image is too large to be displayed in the current screen. Printable tax forms 1040ez Please click the link to view the image. Printable tax forms 1040ez Figure 33-A Are You a Qualified Individual?   You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. Printable tax forms 1040ez Veterans. Printable tax forms 1040ez   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Printable tax forms 1040ez VA Form 21-0172 must be signed by a person authorized by the VA to do so. Printable tax forms 1040ez You can get this form from your local VA regional office. Printable tax forms 1040ez Physician's statement obtained in earlier year. Printable tax forms 1040ez   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Printable tax forms 1040ez For a detailed explanation of the conditions you must meet, see the instructions for Schedule R, Part II. Printable tax forms 1040ez If you meet the required conditions, check the box on your Schedule R, Part II, line 2. Printable tax forms 1040ez   If you checked box 4, 5, or 6 in Part I of Schedule R, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. Printable tax forms 1040ez Table 33-1. Printable tax forms 1040ez Income Limits IF your filing status is . Printable tax forms 1040ez . Printable tax forms 1040ez . Printable tax forms 1040ez THEN, even if you qualify (see Figure 33-A ), you CANNOT take the credit if. Printable tax forms 1040ez . Printable tax forms 1040ez . Printable tax forms 1040ez   Your adjusted gross income (AGI)* is equal to or more than. Printable tax forms 1040ez . Printable tax forms 1040ez . Printable tax forms 1040ez     OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Printable tax forms 1040ez . Printable tax forms 1040ez . Printable tax forms 1040ez   single, head of household, or qualifying widow(er) with dependent child   $17,500     $5,000   married filing jointly and only one spouse qualifies in Figure 33-A   $20,000     $5,000   married filing jointly and both spouses qualify in Figure 33-A   $25,000     $7,500   married filing separately and you lived apart from your spouse for all of 2013   $12,500     $3,750   * AGI is the amount on Form 1040A, line 22, or Form 1040, line 38. Printable tax forms 1040ez Disability income. Printable tax forms 1040ez   If you are under age 65, you must also have taxable disability income to qualify for the credit. Printable tax forms 1040ez Disability income must meet both of the following requirements. Printable tax forms 1040ez It must be paid under your employer's accident or health plan or pension plan. Printable tax forms 1040ez It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and total disability. Printable tax forms 1040ez Payments that are not disability income. Printable tax forms 1040ez   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Printable tax forms 1040ez Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Printable tax forms 1040ez   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Printable tax forms 1040ez Mandatory retirement age is the age set by your employer at which you would have had to retire, had you not become disabled. Printable tax forms 1040ez Income Limits To determine if you can claim the credit, you must consider two income limits. Printable tax forms 1040ez The first limit is the amount of your adjusted gross income (AGI). Printable tax forms 1040ez The second limit is the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income you received. Printable tax forms 1040ez The limits are shown in Table 33-1. Printable tax forms 1040ez If your AGI and nontaxable pensions, annuities, or disability income are less than the income limits, you may be able to claim the credit. Printable tax forms 1040ez See How to Claim the Credit , later. Printable tax forms 1040ez If either your AGI or your nontaxable pensions, annuities, or disability income are equal to or more than the income limits, you cannot take the credit. Printable tax forms 1040ez How to Claim the Credit You can figure the credit yourself or the Internal Revenue Service will figure it for you. Printable tax forms 1040ez Credit Figured for You If you choose to have the IRS figure the credit for you, read the following discussion for the form you will file (Form 1040 or 1040A). Printable tax forms 1040ez If you want the IRS to figure your tax, see chapter 30. Printable tax forms 1040ez Form 1040. Printable tax forms 1040ez   If you want the IRS to figure your credit, see Form 1040 Line Entries under Tax Figured by IRS in chapter 30. Printable tax forms 1040ez Form 1040A. Printable tax forms 1040ez   If you want the IRS to figure your credit, see Form 1040A Line Entries under Tax Figured by IRS in chapter 30. Printable tax forms 1040ez Credit Figured by You If you choose to figure the credit yourself, fill out the front of Schedule R. Printable tax forms 1040ez Next, fill out Schedule R, Part III. Printable tax forms 1040ez If you file Form 1040A, enter the amount from Schedule R, line 22, on Form 1040A, line 30. Printable tax forms 1040ez If you file Form 1040, include the amount from Schedule R, line 22, on line 53; check box c, and enter “Sch R” on the line next to that box. Printable tax forms 1040ez For a step-by-step discussion about filling out Part III of Schedule R, see Figuring the Credit Yourself in Publication 524. Printable tax forms 1040ez Limit on credit. Printable tax forms 1040ez   The amount of the credit you can claim is generally limited to the amount of your tax. Printable tax forms 1040ez Use the Credit Limit Worksheet in the Instructions for Schedule R to determine if your credit is limited. Printable tax forms 1040ez Prev  Up  Next   Home   More Online Publications
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Understanding Your CP161 Notice

You received this notice because of the money you owe from your tax return.


What you need to do

  • Read your notice carefully ― it will explain how much money you owe on your taxes.
  • Check the list of payments we applied to your account to see if we applied all the payments you made.
  • Pay the amount owed by the date on the notice's payment coupon.
  • Make payment arrangements if you can't pay the full amount you owe.

  • You may want to...


    Answers to Common Questions

  • Do I have to pay interest on the amount I owe?
    Interest will accrue on the amount you owe unless you pay it by the requested payment date on the notice’s payment coupon.

  • Do I receive a penalty if I cannot pay the full amount?
    Yes. You usually will receive a late payment penalty. Notice 746, Information About Your Notice, Penalty and Interest has more information about penalties and interest.

  • What happens if I cannot pay the full amount I owe?
    You can arrange to make a payment plan with us if you cannot pay the full amount you owe.

  • How can I set up a payment plan?
    Call the toll-free number listed on the top right corner of your notice to discuss payment options or learn more about payment arrangements here.

  • What should I do if I disagree with the notice?
    Contact us at the toll free number listed on the top right corner of your notice. Please have your documentation (such as cancelled checks, amended return, etc.) ready when you call.

  •  


  • Tips for next year

    Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions for which you may qualify. In many cases, you can file free. Learn more about how to file electronically here.

Page Last Reviewed or Updated: 26-Mar-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Printable Tax Forms 1040ez

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