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Website Efile Past Year Tax Returns

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Website Efile Past Year Tax Returns

Website efile past year tax returns Publication 1544 - Main Content Table of Contents Why Report These Payments? Who Must File Form 8300?What Payments Must Be Reported? What Is Cash? Taxpayer Identification Number (TIN) What Is a Related Transaction? What About Suspicious Transactions? When, Where, and What To File Examples Penalties How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Website efile past year tax returns Why Report These Payments? Drug dealers and smugglers often use large cash payments to “launder” money from illegal activities. Website efile past year tax returns Laundering means converting “dirty” or illegally-gained money to “clean” money. Website efile past year tax returns The government can often trace this laundered money through the payments you report. Website efile past year tax returns Laws passed by Congress require you to report these payments. Website efile past year tax returns Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. Website efile past year tax returns The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Website efile past year tax returns Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300. Website efile past year tax returns For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Website efile past year tax returns Special rules for clerks of federal or state courts are discussed later under Bail received by court clerks. Website efile past year tax returns However, you do not have to file Form 8300 if the transaction is not related to your trade or business. Website efile past year tax returns For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Website efile past year tax returns Transaction defined. Website efile past year tax returns    A “transaction” occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Website efile past year tax returns Person defined. Website efile past year tax returns   A “person” includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Website efile past year tax returns   Exempt organizations, including employee plans, are also “persons. Website efile past year tax returns ” However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Website efile past year tax returns Foreign transactions. Website efile past year tax returns   You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. Website efile past year tax returns However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Website efile past year tax returns Bail received by court clerks. Website efile past year tax returns   Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: Any federal offense involving a controlled substance, Racketeering, Money laundering, and Any state offense substantially similar to (1), (2), or (3) above. Website efile past year tax returns For more information about the rules that apply to court clerks, see Section 1. Website efile past year tax returns 6050I-2 of the Income Tax Regulations. Website efile past year tax returns What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: Over $10,000, Received as: One lump sum of over $10,000, Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, Received in the course of your trade or business, Received from the same buyer (or agent), and Received in a single transaction or in related transactions (defined later). Website efile past year tax returns What Is Cash? Cash is: The coins and currency of the United States (and any other country), and A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in: A designated reporting transaction (defined later), or Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form 8300. Website efile past year tax returns Cash may include a cashier's check even if it is called a “treasurer's check” or “bank check. Website efile past year tax returns ” Cash does not include a check drawn on an individual's personal account. Website efile past year tax returns A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. Website efile past year tax returns These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Form 104. Website efile past year tax returns Example 1. Website efile past year tax returns You are a coin dealer. Website efile past year tax returns Bob Green buys gold coins from you for $13,200. Website efile past year tax returns He pays for them with $6,200 in U. Website efile past year tax returns S. Website efile past year tax returns currency and a cashier's check having a face amount of $7,000. Website efile past year tax returns The cashier's check is treated as cash. Website efile past year tax returns You have received more than $10,000 cash and must file Form 8300 for this transaction. Website efile past year tax returns Example 2. Website efile past year tax returns You are a retail jeweler. Website efile past year tax returns Mary North buys an item of jewelry from you for $12,000. Website efile past year tax returns She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Website efile past year tax returns Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. Website efile past year tax returns You do not have to file Form 8300. Website efile past year tax returns Example 3. Website efile past year tax returns You are a boat dealer. Website efile past year tax returns Emily Jones buys a boat from you for $16,500. Website efile past year tax returns She pays for it with a cashier's check payable to you in the amount of $16,500. Website efile past year tax returns The cashier's check is not treated as cash because its face amount is more than $10,000. Website efile past year tax returns You do not have to file Form 8300 for this transaction. Website efile past year tax returns Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: A consumer durable, such as an automobile or boat. Website efile past year tax returns A consumer durable is property, other than land or buildings, that: Is suitable for personal use, Can reasonably be expected to last at least 1 year under ordinary use, Has a sales price of more than $10,000, and Can be seen or touched (tangible property). Website efile past year tax returns For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. Website efile past year tax returns The car is a consumer durable even if you sell it to a buyer who will use it in a business. Website efile past year tax returns A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). Website efile past year tax returns Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. Website efile past year tax returns To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Website efile past year tax returns Example. Website efile past year tax returns You are a travel agent. Website efile past year tax returns Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. Website efile past year tax returns He also asks you to book hotel rooms and admission tickets for the group. Website efile past year tax returns In payment, he gives you two money orders, each for $6,000. Website efile past year tax returns You have received more than $10,000 cash in this designated reporting transaction. Website efile past year tax returns You must file Form 8300. Website efile past year tax returns Retail sale. Website efile past year tax returns   The term “retail sale” means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Website efile past year tax returns   Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. Website efile past year tax returns This includes any sales of items that will be resold. Website efile past year tax returns Broker or intermediary. Website efile past year tax returns   A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Website efile past year tax returns Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Website efile past year tax returns Exception for certain bank loans. Website efile past year tax returns   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. Website efile past year tax returns As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Website efile past year tax returns Example. Website efile past year tax returns You are a car dealer. Website efile past year tax returns Mandy White buys a new car from you for $11,500. Website efile past year tax returns She pays you with $2,000 of U. Website efile past year tax returns S. Website efile past year tax returns currency and a cashier's check for $9,500 payable to you and her. Website efile past year tax returns You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. Website efile past year tax returns For this reason, the cashier's check is not treated as cash. Website efile past year tax returns You do not have to file Form 8300 for the transaction. Website efile past year tax returns Exception for certain installment sales. Website efile past year tax returns   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). Website efile past year tax returns However, this exception applies only if: You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Website efile past year tax returns Exception for certain down payment plans. Website efile past year tax returns   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. Website efile past year tax returns You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the date of sale. Website efile past year tax returns You receive it more than 60 days before the date of sale. Website efile past year tax returns You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Website efile past year tax returns Exception for travel and entertainment. Website efile past year tax returns   A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. Website efile past year tax returns You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. Website efile past year tax returns You receive it more than 60 days before the date on which the final payment is due. Website efile past year tax returns You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Website efile past year tax returns Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. Website efile past year tax returns If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. Website efile past year tax returns If you do not know a person's TIN, you have to ask for it. Website efile past year tax returns You may be subject to penalties for an incorrect or missing TIN. Website efile past year tax returns There are three types of TINs. Website efile past year tax returns The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). Website efile past year tax returns The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). Website efile past year tax returns An ITIN has nine digits, similar to an SSN. Website efile past year tax returns The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Website efile past year tax returns Exception. Website efile past year tax returns   You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: Does not have income effectively connected with the conduct of a U. Website efile past year tax returns S. Website efile past year tax returns trade or business; Does not have an office or place of business, or a fiscal or paying agent in the United States; Does not file a federal tax return; Does not furnish a withholding certificate described in §1. Website efile past year tax returns 1441-1(e)(2) or (3) or 1. Website efile past year tax returns 1441-5(c)(2)(iv) or (3)(iii) to the extent required under 1. Website efile past year tax returns 1441-1(e)(4)(vii); Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U. Website efile past year tax returns S. Website efile past year tax returns citizen or resident. Website efile past year tax returns What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. Website efile past year tax returns If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form 8300. Website efile past year tax returns For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Website efile past year tax returns Because they total $12,000 (more than $10,000), you must file Form 8300. Website efile past year tax returns More than 24 hours between transactions. Website efile past year tax returns   Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. Website efile past year tax returns   For example, you are a travel agent. Website efile past year tax returns A client pays you $8,000 in cash for a trip. Website efile past year tax returns Two days later, the same client pays you $3,000 more in cash to include another person on the trip. Website efile past year tax returns These are related transactions, and you must file Form 8300 to report them. Website efile past year tax returns What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. Website efile past year tax returns A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. Website efile past year tax returns If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Website efile past year tax returns Or, you can call the FinCEN Financial Institution Hotline toll free at 1-866-556-3974. Website efile past year tax returns When, Where, and What To File The amount you receive and when you receive it determine when you must file. Website efile past year tax returns Generally, you must file Form 8300 within 15 days after receiving a payment. Website efile past year tax returns If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Website efile past year tax returns More than one payment. Website efile past year tax returns   In some transactions, the buyer may arrange to pay you in cash installment payments. Website efile past year tax returns If the first payment is more than $10,000, you must file Form 8300 within 15 days. Website efile past year tax returns If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. Website efile past year tax returns When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. Website efile past year tax returns   After you file Form 8300, you must start a new count of cash payments received from that buyer. Website efile past year tax returns If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form 8300. Website efile past year tax returns You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. Website efile past year tax returns   If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Website efile past year tax returns Example. Website efile past year tax returns On January 10, you receive a cash payment of $11,000. Website efile past year tax returns You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. Website efile past year tax returns By January 25, you must file a Form 8300 for the $11,000 payment. Website efile past year tax returns By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Website efile past year tax returns Amending a Report?   If you are amending a report, check box 1a at the top of Form 8300. Website efile past year tax returns Complete the form in its entirety (Parts I-IV) and include the amended information. Website efile past year tax returns Do not attach a copy of the original report. Website efile past year tax returns Where to file. Website efile past year tax returns   Mail the form to the address given in the Form 8300 instructions. Website efile past year tax returns Required statement to buyer. Website efile past year tax returns   You must give a written or electronic statement to each person named on any Form 8300 you must file. Website efile past year tax returns You can give the statement electronically only if the recipient agrees to receive it in that format. Website efile past year tax returns The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. Website efile past year tax returns It must state that you are also reporting this information to the IRS. Website efile past year tax returns   You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. Website efile past year tax returns    You must keep a copy of every Form 8300 you file for 5 years. Website efile past year tax returns Examples Example 1. Website efile past year tax returns Pat Brown is the sales manager for Small Town Cars. Website efile past year tax returns On January 6, 2009, Jane Smith buys a new car from Pat and pays $18,000 in cash. Website efile past year tax returns Pat asks for identification from Jane to get the necessary information to complete Form 8300. Website efile past year tax returns A filled-in form is shown in this publication. Website efile past year tax returns Pat must mail the form to the address shown in the form's instructions by January 21, 2009. Website efile past year tax returns He must also send a statement to Jane by January 31, 2010. Website efile past year tax returns Example 2. Website efile past year tax returns Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Website efile past year tax returns Pat would have to file a Form 8300 by February 26 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2009, is a Saturday). Website efile past year tax returns Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. Website efile past year tax returns However, he could report it if he felt it was a suspicious transaction. Website efile past year tax returns Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form 8300. Website efile past year tax returns If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: $25,000, or The amount of cash you received and were required to report (up to $100,000). Website efile past year tax returns There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form 8300. Website efile past year tax returns If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. Website efile past year tax returns These dollar amounts are based on Section 3571 of Title 18 of the U. Website efile past year tax returns S. Website efile past year tax returns Code. Website efile past year tax returns The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. Website efile past year tax returns This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. Website efile past year tax returns Structuring means breaking up a large cash transaction into small cash transactions. Website efile past year tax returns How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Website efile past year tax returns By selecting the method that is best for you, you will have quick and easy access to tax help. Website efile past year tax returns Free help with your return. Website efile past year tax returns   Free help in preparing your return is available nationwide from IRS-certified volunteers. Website efile past year tax returns The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Website efile past year tax returns Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Website efile past year tax returns To find the nearest VITA or TCE site, visit IRS. Website efile past year tax returns gov or call 1-800-906-9887 or 1-800-829-1040. Website efile past year tax returns   As part of the TCE program, AARP offers the Tax-Aide counseling program. Website efile past year tax returns To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Website efile past year tax returns aarp. Website efile past year tax returns org/money/taxaide. Website efile past year tax returns   For more information on these programs, go to IRS. Website efile past year tax returns gov and enter keyword “VITA” in the upper right-hand corner. Website efile past year tax returns Internet. Website efile past year tax returns You can access the IRS website at IRS. Website efile past year tax returns gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Website efile past year tax returns Go to IRS. Website efile past year tax returns gov and click on Where's My Refund. Website efile past year tax returns Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Website efile past year tax returns If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Website efile past year tax returns Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Website efile past year tax returns E-file your return. Website efile past year tax returns Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Website efile past year tax returns Download forms, including talking tax forms, instructions, and publications. Website efile past year tax returns Order IRS products online. Website efile past year tax returns Research your tax questions online. Website efile past year tax returns Search publications online by topic or keyword. Website efile past year tax returns Use the online Internal Revenue Code, regulations, or other official guidance. Website efile past year tax returns View Internal Revenue Bulletins (IRBs) published in the last few years. Website efile past year tax returns Figure your withholding allowances using the withholding calculator online at  www. Website efile past year tax returns irs. Website efile past year tax returns gov/individuals. Website efile past year tax returns Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at  www. Website efile past year tax returns irs. Website efile past year tax returns gov/individuals. Website efile past year tax returns Sign up to receive local and national tax news by email. Website efile past year tax returns Get information on starting and operating a small business. Website efile past year tax returns Phone. Website efile past year tax returns Many services are available by phone. Website efile past year tax returns   Ordering forms, instructions, and publications. Website efile past year tax returns Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Website efile past year tax returns You should receive your order within 10 days. Website efile past year tax returns Asking tax questions. Website efile past year tax returns Call the IRS with your tax questions at 1-800-829-1040. Website efile past year tax returns Solving problems. Website efile past year tax returns You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Website efile past year tax returns An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Website efile past year tax returns Call your local Taxpayer Assistance Center for an appointment. Website efile past year tax returns To find the number, go to www. Website efile past year tax returns irs. Website efile past year tax returns gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Website efile past year tax returns TTY/TDD equipment. Website efile past year tax returns If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Website efile past year tax returns TeleTax topics. Website efile past year tax returns Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Website efile past year tax returns Refund information. Website efile past year tax returns You can check the status of your refund on the new IRS phone app. Website efile past year tax returns Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Website efile past year tax returns IRS2Go is a new way to provide you with information and tools. Website efile past year tax returns To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Website efile past year tax returns Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Website efile past year tax returns If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Website efile past year tax returns Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Website efile past year tax returns If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Website efile past year tax returns Other refund information. Website efile past year tax returns To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Website efile past year tax returns Evaluating the quality of our telephone services. Website efile past year tax returns To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Website efile past year tax returns One method is for a second IRS representative to listen in on or record random telephone calls. Website efile past year tax returns Another is to ask some callers to complete a short survey at the end of the call. Website efile past year tax returns Walk-in. Website efile past year tax returns Many products and services are available on a walk-in basis. Website efile past year tax returns   Products. Website efile past year tax returns You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Website efile past year tax returns Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Website efile past year tax returns Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Website efile past year tax returns Services. Website efile past year tax returns You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Website efile past year tax returns An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Website efile past year tax returns If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Website efile past year tax returns No appointment is necessary—just walk in. Website efile past year tax returns If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Website efile past year tax returns A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Website efile past year tax returns If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Website efile past year tax returns All other issues will be handled without an appointment. Website efile past year tax returns To find the number of your local office, go to www. Website efile past year tax returns irs. Website efile past year tax returns gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Website efile past year tax returns Mail. Website efile past year tax returns You can send your order for forms, instructions, and publications to the address below. Website efile past year tax returns You should receive a response within 10 days after your request is received. Website efile past year tax returns  Internal Revenue Service 1201 N. Website efile past year tax returns Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Website efile past year tax returns   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Website efile past year tax returns Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Website efile past year tax returns We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Website efile past year tax returns Remember, the worst thing you can do is nothing at all. Website efile past year tax returns   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Website efile past year tax returns You face (or your business is facing) an immediate threat of adverse action. Website efile past year tax returns You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Website efile past year tax returns   If you qualify for our help, we’ll do everything we can to get your problem resolved. Website efile past year tax returns You will be assigned to one advocate who will be with you at every turn. Website efile past year tax returns We have offices in every state, the District of Columbia, and Puerto Rico. Website efile past year tax returns Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Website efile past year tax returns And our services are always free. Website efile past year tax returns   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Website efile past year tax returns Our tax toolkit at www. Website efile past year tax returns TaxpayerAdvocate. Website efile past year tax returns irs. Website efile past year tax returns gov can help you understand these rights. Website efile past year tax returns   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Website efile past year tax returns irs. Website efile past year tax returns gov/advocate. Website efile past year tax returns You can also call our toll-free number at 1-877-777-4778. Website efile past year tax returns   TAS also handles large-scale or systemic problems that affect many taxpayers. Website efile past year tax returns If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Website efile past year tax returns irs. Website efile past year tax returns gov/advocate. Website efile past year tax returns Low Income Taxpayer Clinics (LITCs). Website efile past year tax returns   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Website efile past year tax returns Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Website efile past year tax returns These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Website efile past year tax returns Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Website efile past year tax returns For more information and to find a clinic near you, see the LITC page on www. Website efile past year tax returns irs. Website efile past year tax returns gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Website efile past year tax returns This publication is also available by calling 1-800-829-3676 or at your local IRS office. Website efile past year tax returns Free tax services. Website efile past year tax returns   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Website efile past year tax returns Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Website efile past year tax returns The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Website efile past year tax returns The majority of the information and services listed in this publication are available to you free of charge. Website efile past year tax returns If there is a fee associated with a resource or service, it is listed in the publication. Website efile past year tax returns   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Website efile past year tax returns DVD for tax products. Website efile past year tax returns You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Website efile past year tax returns Prior-year forms, instructions, and publications. Website efile past year tax returns Tax Map: an electronic research tool and finding aid. Website efile past year tax returns Tax law frequently asked questions. Website efile past year tax returns Tax Topics from the IRS telephone response system. Website efile past year tax returns Internal Revenue Code—Title 26 of the U. Website efile past year tax returns S. Website efile past year tax returns Code. Website efile past year tax returns Links to other Internet based Tax Research Materials. Website efile past year tax returns Fill-in, print, and save features for most tax forms. Website efile past year tax returns Internal Revenue Bulletins. Website efile past year tax returns Toll-free and email technical support. Website efile past year tax returns Two releases during the year. Website efile past year tax returns  – The first release will ship the beginning of January. Website efile past year tax returns  – The final release will ship the beginning of March. Website efile past year tax returns Purchase the DVD from National Technical Information Service (NTIS) at www. Website efile past year tax returns irs. Website efile past year tax returns gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Website efile past year tax returns This image is too large to be displayed in the current screen. Website efile past year tax returns Please click the link to view the image. Website efile past year tax returns Fill-in Form 8300 Prev  Up  Next   Home   More Online Publications
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Understanding Your CP237 Notice

We sent you a replacement refund check.


What you need to do

  • If you have the expired check, please destroy it.
  • When you receive the new check, remember to cash it.

You may want to...

  • Call 1-800-829-3676 (1-800-TAX-FORM) to order forms and publications.

Answers to Common Questions

 

When will I receive my replacement check?
You should receive the replacement check within 30 days.

Can I request that you mail my refund check to an alternate address?
Refund checks are mailed only to the address of record, which is the address provided on the tax return or the result of a permanent address change request submitted after the return is filed.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.


Understanding your notice

Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP237, Page 1

Page Last Reviewed or Updated: 07-Aug-2013

Printable samples of this notice (PDF)

 

 

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 Website Efile Past Year Tax Returns

Website efile past year tax returns 1. Website efile past year tax returns   Investment Income Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: General InformationSSN for joint account. Website efile past year tax returns Custodian account for your child. Website efile past year tax returns Penalty for failure to supply SSN. Website efile past year tax returns Certification. Website efile past year tax returns Underreported interest and dividends. Website efile past year tax returns How to stop backup withholding due to underreporting. Website efile past year tax returns How to stop backup withholding due to an incorrect identification number. Website efile past year tax returns Reporting backup withholding. Website efile past year tax returns Nonresident aliens. Website efile past year tax returns Penalties. Website efile past year tax returns Savings account with parent as trustee. Website efile past year tax returns Interest IncomeInterest not reported on Form 1099-INT. Website efile past year tax returns Nominees. Website efile past year tax returns Incorrect amount. Website efile past year tax returns Information reporting requirement. Website efile past year tax returns Taxable Interest — General Below-Market Loans U. Website efile past year tax returns S. Website efile past year tax returns Savings Bonds U. Website efile past year tax returns S. Website efile past year tax returns Treasury Bills, Notes, and Bonds Bonds Sold Between Interest Dates Insurance State or Local Government Obligations Discount on Debt InstrumentsOriginal Issue Discount (OID) Market Discount Bonds Discount on Short-Term Obligations Election To Report All Interest as OID When To Report Interest IncomeConstructive receipt. Website efile past year tax returns How To Report Interest IncomeSchedule B (Form 1040A or 1040). Website efile past year tax returns Worksheet for savings bonds distributed from a retirement or profit-sharing plan. Website efile past year tax returns File Form 1099-INT with the IRS. Website efile past year tax returns Dividends and Other DistributionsDividends not reported on Form 1099-DIV. Website efile past year tax returns Nominees. Website efile past year tax returns Ordinary Dividends Capital Gain Distributions Nondividend Distributions Liquidating Distributions Distributions of Stock and Stock Rights Other Distributions How To Report Dividend IncomeElection. Website efile past year tax returns Independent contractor. Website efile past year tax returns Investment interest deducted. Website efile past year tax returns Exception 1. Website efile past year tax returns Exception 2. Website efile past year tax returns Undistributed capital gains. Website efile past year tax returns File Form 1099-DIV with the IRS. Website efile past year tax returns Stripped Preferred Stock REMICs, FASITs, and Other CDOsREMICs Collateralized Debt Obligations (CDOs) FASITs S CorporationsLimit on losses and deductions. Website efile past year tax returns Passive activity losses. Website efile past year tax returns Form 8582. Website efile past year tax returns Investment ClubsInvestments in name of member. Website efile past year tax returns Tax Treatment of the Club Topics - This chapter discusses: Interest Income , Discount on Debt Instruments , When To Report Interest Income , How To Report Interest Income , Dividends and Other Distributions , How To Report Dividend Income , Stripped Preferred Stock , Real estate mortgage investment conduits (REMICs), financial asset securitization investment trusts (FASITs), and other collateralized debt obligations (CDOs) , S Corporations , and Investment Clubs . Website efile past year tax returns Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 537 Installment Sales 590 Individual Retirement Arrangements (IRAs) 925 Passive Activity and At-Risk Rules 1212 Guide to Original Issue Discount (OID) Instruments Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends Schedule D (Form 1040) Capital Gains and Losses 1040 U. Website efile past year tax returns S. Website efile past year tax returns Individual Income Tax Return 1040A U. Website efile past year tax returns S. Website efile past year tax returns Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1099 General Instructions for Certain Information Returns 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 3115 Application for Change in Accounting Method 6251 Alternative Minimum Tax — Individuals 8582 Passive Activity Loss Limitations 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends 8815 Exclusion of Interest From Series EE and I U. Website efile past year tax returns S. Website efile past year tax returns Savings Bonds Issued After 1989 8818 Optional Form To Record Redemption of Series EE and I U. Website efile past year tax returns S. Website efile past year tax returns Savings Bonds Issued After 1989 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets 8960 Net Investment Income Tax—Individuals, Estates, and Trusts See chapter 5, How To Get Tax Help , for information about getting these publications and forms. Website efile past year tax returns General Information A few items of general interest are covered here. Website efile past year tax returns Recordkeeping. Website efile past year tax returns You should keep a list showing sources and investment income amounts you receive during the year. Website efile past year tax returns Also keep the forms you receive showing your investment income (Forms 1099-INT, Interest Income, and 1099-DIV, Dividends and Distributions, for example) as an important part of your records. Website efile past year tax returns Net investment income tax (NIIT). Website efile past year tax returns   Beginning in 2013, you may be subject to the NIIT. Website efile past year tax returns The NIIT is a 3. Website efile past year tax returns 8% tax on the lesser of your net investment income or the amount of your modified adjusted gross income (MAGI) that is over a threshold amount based on your filing status. Website efile past year tax returns    Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household (with qualifying person) $200,000 Qualifying Widow(er) with dependent child $250,000    For more information, see Form 8960 and Instructions for Form 8960. Website efile past year tax returns Tax on unearned income of certain children. Website efile past year tax returns   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. Website efile past year tax returns This may happen if all of the following are true. Website efile past year tax returns The child had more than $2,000 of unearned income. Website efile past year tax returns The child is required to file a tax return. Website efile past year tax returns The child was: Under age 18 at the end of 2013, Age 18 at the end of 2013 and did not have earned income that was more than half of the child's support, or A full-time student over age 18 and under age 24 at the end of 2013 and did not have earned income that was more than half of the child's support. Website efile past year tax returns At least one of the child's parents was alive at the end of 2013. Website efile past year tax returns The child does not file a joint return for 2013. Website efile past year tax returns A child born on January 1, 1996, is considered to be age 18 at the end of 2013; a child born on January 1, 1995, is considered to be age 19 at the end of 2013; a child born on January 1, 1990, is considered to be age 24 at the end of 2013. Website efile past year tax returns   If all of these statements are true, Form 8615 must be completed and attached to the child's tax return. Website efile past year tax returns If any of these statements is not true, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Website efile past year tax returns    However, the parent can choose to include the child's interest and dividends on the parent's return if certain requirements are met. Website efile past year tax returns Use Form 8814 for this purpose. Website efile past year tax returns   For more information about the tax on unearned income of children and the parents' election, see Publication 929, Tax Rules for Children and Dependents. Website efile past year tax returns Beneficiary of an estate or trust. Website efile past year tax returns   Interest, dividends, and other investment income you receive as a beneficiary of an estate or trust is generally taxable income. Website efile past year tax returns You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Website efile past year tax returns , from the fiduciary. Website efile past year tax returns Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. Website efile past year tax returns Social security number (SSN). Website efile past year tax returns   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. Website efile past year tax returns This includes payers of interest and dividends. Website efile past year tax returns If you do not give your SSN or ITIN to the payer of interest, you may have to pay a penalty. Website efile past year tax returns SSN for joint account. Website efile past year tax returns   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. Website efile past year tax returns (For information on who owns the funds in a joint account, see Joint accounts , later. Website efile past year tax returns ) If the joint account contains combined funds, give the SSN of the person whose name is listed first on the account. Website efile past year tax returns This is because only one name and SSN can be shown on Form 1099. Website efile past year tax returns   These rules apply both to joint ownership by a married couple and to joint ownership by other individuals. Website efile past year tax returns 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. Website efile past year tax returns Custodian account for your child. Website efile past year tax returns   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. Website efile past year tax returns For example, you must give your child's SSN to the payer of dividends on stock owned by your child, even though the dividends are paid to you as custodian. Website efile past year tax returns Penalty for failure to supply SSN. Website efile past year tax returns   You will be subject to a penalty if, when required, you fail to: Include your SSN on any return, statement, or other document, Give your SSN to another person who must include it on any return, statement, or other document, or Include the SSN of another person on any return, statement, or other document. Website efile past year tax returns The penalty is $50 for each failure up to a maximum penalty of $100,000 for any calendar year. Website efile past year tax returns   You will not be subject to this penalty if you can show that your failure to provide the SSN was due to reasonable cause and not to willful neglect. Website efile past year tax returns   If you fail to supply an SSN, you may also be subject to backup withholding. Website efile past year tax returns Backup withholding. Website efile past year tax returns   Your investment income is generally not subject to regular withholding. Website efile past year tax returns However, it may be subject to backup withholding to ensure that income tax is collected on the income. Website efile past year tax returns Under backup withholding, the bank, broker, or other payer of interest, original issue discount (OID), dividends, cash patronage dividends, or royalties must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. Website efile past year tax returns   Backup withholding applies if: You do not give the payer your identification number (either a social security number or an employer identification number) in the required manner, The IRS notifies the payer that you gave an incorrect identification number, The IRS notifies the payer that you are subject to backup withholding on interest or dividends because you have underreported interest or dividends on your income tax return, or You are required, but fail, to certify that you are not subject to backup withholding for the reason described in (3). Website efile past year tax returns Certification. Website efile past year tax returns   For new accounts paying interest or dividends, you must certify under penalties of perjury that your SSN is correct and that you are not subject to backup withholding. Website efile past year tax returns Your payer will give you a Form W-9, Request for Taxpayer Identification Number and Certification, or similar form, to make this certification. Website efile past year tax returns If you fail to make this certification, backup withholding may begin immediately on your new account or investment. Website efile past year tax returns Underreported interest and dividends. Website efile past year tax returns   You will be considered to have underreported your interest and dividends if the IRS has determined for a tax year that: You failed to include any part of a reportable interest or dividend payment required to be shown on your return, or You were required to file a return and to include a reportable interest or dividend payment on that return, but you failed to file the return. Website efile past year tax returns How to stop backup withholding due to underreporting. Website efile past year tax returns   If you have been notified that you underreported interest or dividends, you can request a determination from the IRS to prevent backup withholding from starting or to stop backup withholding once it has begun. Website efile past year tax returns You must show that at least one of the following situations applies. Website efile past year tax returns No underreporting occurred. Website efile past year tax returns You have a bona fide dispute with the IRS about whether underreporting occurred. Website efile past year tax returns Backup withholding will cause or is causing an undue hardship, and it is unlikely that you will underreport interest and dividends in the future. Website efile past year tax returns You have corrected the underreporting by filing a return if you did not previously file one and by paying all taxes, penalties, and interest due for any underreported interest or dividend payments. Website efile past year tax returns   If the IRS determines that backup withholding should stop, it will provide you with a certification and will notify the payers who were sent notices earlier. Website efile past year tax returns How to stop backup withholding due to an incorrect identification number. Website efile past year tax returns   If you have been notified by a payer that you are subject to backup withholding because you have provided an incorrect SSN or employer identification number, you can stop it by following the instructions the payer gives you. Website efile past year tax returns Reporting backup withholding. Website efile past year tax returns   If backup withholding is deducted from your interest or dividend income or other reportable payment, the bank or other business must give you an information return for the year (for example, a Form 1099-INT) indicating the amount withheld. Website efile past year tax returns The information return will show any backup withholding as “Federal income tax withheld. Website efile past year tax returns ” Nonresident aliens. Website efile past year tax returns    Generally, payments made to nonresident aliens are not subject to backup withholding. Website efile past year tax returns You can use Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, to certify exempt status. Website efile past year tax returns However, this does not exempt you from the 30% (or lower treaty) withholding rate that may apply to your investment income. Website efile past year tax returns For information on the 30% rate, see Publication 519, U. Website efile past year tax returns S. Website efile past year tax returns Tax Guide for Aliens. Website efile past year tax returns Penalties. Website efile past year tax returns   There are civil and criminal penalties for giving false information to avoid backup withholding. Website efile past year tax returns The civil penalty is $500. Website efile past year tax returns The criminal penalty, upon conviction, is a fine of up to $1,000, or imprisonment of up to 1 year, or both. Website efile past year tax returns Where to report investment income. Website efile past year tax returns   Table 1-1 gives an overview of the forms and schedules to use to report some common types of investment income. Website efile past year tax returns But see the rest of this publication for detailed information about reporting investment income. Website efile past year tax returns Joint accounts. Website efile past year tax returns   If two or more persons hold property (such as a savings account, bond, or stock) as joint tenants, tenants by the entirety, or tenants in common, each person's share of any interest or dividends from the property is determined by local law. Website efile past year tax returns Community property states. Website efile past year tax returns   If you are married and receive a distribution that is community income, one-half of the distribution is generally considered to be received by each spouse. Website efile past year tax returns If you file separate returns, you must each report one-half of any taxable distribution. Website efile past year tax returns See Publication 555, Community Property, for more information on community income. Website efile past year tax returns   If the distribution is not considered community property and you and your spouse file separate returns, each of you must report your separate taxable distributions. Website efile past year tax returns Example. Website efile past year tax returns You and your spouse have a joint money market account. Website efile past year tax returns Under state law, half the income from the account belongs to you, and half belongs to your spouse. Website efile past year tax returns If you file separate returns, you each report half the income. Website efile past year tax returns Income from property given to a child. Website efile past year tax returns   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. Website efile past year tax returns   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. Website efile past year tax returns Savings account with parent as trustee. Website efile past year tax returns   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. Website efile past year tax returns The savings account legally belongs to the child. Website efile past year tax returns The parents are not legally permitted to use any of the funds to support the child. Website efile past year tax returns Table 1-1. Website efile past year tax returns Where To Report Common Types of Investment Income (For detailed information about reporting investment income, see the rest of this publication, especially How To Report Interest Income and How To Report Dividend Income in chapter 1. Website efile past year tax returns ) Type of Income If you file Form 1040, report on . Website efile past year tax returns . Website efile past year tax returns . Website efile past year tax returns If you can file Form 1040A, report on . Website efile past year tax returns . Website efile past year tax returns . Website efile past year tax returns If you can file Form 1040EZ, report on . Website efile past year tax returns . Website efile past year tax returns . Website efile past year tax returns Tax-exempt interest (Form 1099-INT, box 8) Line 8b Line 8b Space to the left of line 2 (enter “TEI” and the amount) Taxable interest that totals $1,500 or less Line 8a (You may need to file Schedule B as well. Website efile past year tax returns ) Line 8a (You may need to file Schedule B as well. Website efile past year tax returns ) Line 2 Taxable interest that totals more than $1,500 Line 8a; also use Schedule B, line 1 Line 8a; also use Schedule B, line 1   Savings bond interest you will exclude because of higher education expenses Schedule B; also use Form 8815 Schedule B; also use Form 8815   Ordinary dividends that total $1,500 or less Line 9a (You may need to file Schedule B as well. Website efile past year tax returns ) Line 9a (You may need to file Schedule B as well. Website efile past year tax returns )   Ordinary dividends that total more than $1,500 Line 9a; also use Schedule B, line 5 Line 9a; also use Schedule B, line 5   Qualified dividends (if you do not have to file Schedule D) Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 2 Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 2   Qualified dividends (if you have to file Schedule D) Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet, line 2 You cannot use Form 1040A    You cannot use Form 1040EZ Capital gain distributions (if you do not have to file Schedule D) Line 13; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 3 Line 10; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 3   Capital gain distributions (if you have to file Schedule D) Schedule D, line 13; also use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet     Section 1250, 1202, or collectibles gain (Form 1099-DIV, box 2b, 2c, or 2d) Form 8949 and Schedule D     Nondividend distributions (Form 1099-DIV, box 3) Generally not reported*     Undistributed capital gains (Form 2439, boxes 1a - 1d) Schedule D     Gain or loss from sales of stocks or bonds Line 13; also use Form 8949, Schedule D, and the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet You cannot use Form 1040A   Gain or loss from exchanges of like-kind investment property Line 13; also use Schedule D, Form 8824, and the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet     *Report any amounts in excess of your basis in your mutual fund shares on Form 8949. Website efile past year tax returns Use Part II if you held the shares more than 1 year. Website efile past year tax returns Use Part I if you held your mutual fund shares 1 year or less. Website efile past year tax returns For details on Form 8949, see Reporting Capital Gains and Losses in chapter 4, and the Instructions for Form 8949. Website efile past year tax returns Accuracy-related penalty. Website efile past year tax returns   An accuracy-related penalty of 20% can be charged for underpayments of tax due to negligence or disregard of rules or regulations or substantial understatement of tax. Website efile past year tax returns For information on the penalty and any interest that applies, see Penalties in chapter 2. Website efile past year tax returns Interest Income This section discusses the tax treatment of different types of interest income. Website efile past year tax returns In general, any interest that you receive or that is credited to your account and can be withdrawn is taxable income. Website efile past year tax returns (It does not have to be entered in your passbook. Website efile past year tax returns ) Exceptions to this rule are discussed later. Website efile past year tax returns Form 1099-INT. Website efile past year tax returns   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. Website efile past year tax returns This form shows you the interest you received during the year. Website efile past year tax returns Keep this form for your records. Website efile past year tax returns You do not have to attach it to your tax return. Website efile past year tax returns   Report on your tax return the total interest income you receive for the tax year. Website efile past year tax returns Interest not reported on Form 1099-INT. Website efile past year tax returns   Even if you do not receive Form 1099-INT, you must still report all of your interest income. Website efile past year tax returns For example, you may receive distributive shares of interest from partnerships or S corporations. Website efile past year tax returns This interest is reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Website efile past year tax returns , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. Website efile past year tax returns Nominees. Website efile past year tax returns   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. Website efile past year tax returns   If you receive a Form 1099-INT that includes amounts belonging to another person, see the discussion on Nominee distributions , later, under How To Report Interest Income. Website efile past year tax returns Incorrect amount. Website efile past year tax returns   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. Website efile past year tax returns The new Form 1099-INT you receive will be marked “Corrected. Website efile past year tax returns ” Form 1099-OID. Website efile past year tax returns   Reportable interest income also may be shown on Form 1099-OID, Original Issue Discount. Website efile past year tax returns For more information about amounts shown on this form, see Original Issue Discount (OID) , later in this chapter. Website efile past year tax returns Exempt-interest dividends. Website efile past year tax returns   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. Website efile past year tax returns (However, see Information reporting requirement , next. Website efile past year tax returns ) Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. Website efile past year tax returns You do not reduce your basis for distributions that are exempt-interest dividends. Website efile past year tax returns Information reporting requirement. Website efile past year tax returns   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file. Website efile past year tax returns This is an information reporting requirement and does not change the exempt-interest dividends into taxable income. Website efile past year tax returns See How To Report Interest Income , later. Website efile past year tax returns Note. Website efile past year tax returns Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. Website efile past year tax returns The exempt-interest dividends subject to the alternative minimum tax are shown in box 11 of Form 1099-DIV. Website efile past year tax returns See Form 6251 and its instructions for more information about this tax. Website efile past year tax returns Private activity bonds are discussed later under State or Local Government Obligations. Website efile past year tax returns Interest on VA dividends. Website efile past year tax returns   Interest on insurance dividends left on deposit with the Department of Veterans Affairs (VA) is not taxable. Website efile past year tax returns This includes interest paid on dividends on converted United States Government Life Insurance policies and on National Service Life Insurance policies. Website efile past year tax returns Individual retirement arrangements (IRAs). Website efile past year tax returns   Interest on a Roth IRA generally is not taxable. Website efile past year tax returns Interest on a traditional IRA is tax deferred. Website efile past year tax returns You generally do not include it in your income until you make withdrawals from the IRA. Website efile past year tax returns See Publication 590 for more information. Website efile past year tax returns Taxable Interest — General Taxable interest includes interest you receive from bank accounts, loans you make to others, and other sources. Website efile past year tax returns The following are some sources of taxable interest. Website efile past year tax returns Dividends that are actually interest. Website efile past year tax returns   Certain distributions commonly called dividends are actually interest. Website efile past year tax returns 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. Website efile past year tax returns  The “dividends” will be shown as interest income on Form 1099-INT. Website efile past year tax returns Money market funds. Website efile past year tax returns   Money market funds are offered by nonbank financial institutions such as mutual funds and stock brokerage houses, and pay dividends. Website efile past year tax returns Generally, amounts you receive from money market funds should be reported as dividends, not as interest. Website efile past year tax returns Certificates of deposit and other deferred interest accounts. Website efile past year tax returns   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. Website efile past year tax returns 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. Website efile past year tax returns The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. Website efile past year tax returns If interest is deferred for more than 1 year, see Original Issue Discount (OID) , later. Website efile past year tax returns Interest subject to penalty for early withdrawal. Website efile past year tax returns   If you withdraw funds from a deferred interest account before maturity, you may have to pay a penalty. Website efile past year tax returns You must report the total amount of interest paid or credited to your account during the year, without subtracting the penalty. Website efile past year tax returns See Penalty on early withdrawal of savings under How To Report Interest Income, later, for more information on how to report the interest and deduct the penalty. Website efile past year tax returns Money borrowed to invest in certificate of deposit. Website efile past year tax returns   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. Website efile past year tax returns You must report the total interest you earn on the certificate in your income. Website efile past year tax returns If you itemize deductions, you can deduct the interest you pay as investment interest, up to the amount of your net investment income. Website efile past year tax returns See Interest Expenses in chapter 3. Website efile past year tax returns Example. Website efile past year tax returns 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. Website efile past year tax returns 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. Website efile past year tax returns The bank gives you a Form 1099-INT for 2013 showing the $575 interest you earned. Website efile past year tax returns The bank also gives you a statement showing that you paid $310 interest for 2013. Website efile past year tax returns You must include the $575 in your income. Website efile past year tax returns If you itemize your deductions on Schedule A (Form 1040), Itemized Deductions, you can deduct $310, subject to the net investment income limit. Website efile past year tax returns Gift for opening account. Website efile past year tax returns   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. Website efile past year tax returns   For deposits of less than $5,000, gifts or services valued at more than $10 must be reported as interest. Website efile past year tax returns For deposits of $5,000 or more, gifts or services valued at more than $20 must be reported as interest. Website efile past year tax returns The value is determined by the cost to the financial institution. Website efile past year tax returns Example. Website efile past year tax returns You open a savings account at your local bank and deposit $800. Website efile past year tax returns The account earns $20 interest. Website efile past year tax returns You also receive a $15 calculator. Website efile past year tax returns 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. Website efile past year tax returns You must report $35 interest income on your tax return. Website efile past year tax returns Interest on insurance dividends. Website efile past year tax returns   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. Website efile past year tax returns 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. Website efile past year tax returns Prepaid insurance premiums. Website efile past year tax returns   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. Website efile past year tax returns U. Website efile past year tax returns S. Website efile past year tax returns obligations. Website efile past year tax returns   Interest on U. Website efile past year tax returns S. Website efile past year tax returns obligations, such as U. Website efile past year tax returns S. Website efile past year tax returns Treasury bills, notes, and bonds, issued by any agency or instrumentality of the United States is taxable for federal income tax purposes. Website efile past year tax returns Interest on tax refunds. Website efile past year tax returns   Interest you receive on tax refunds is taxable income. Website efile past year tax returns Interest on condemnation award. Website efile past year tax returns   If the condemning authority pays you interest to compensate you for a delay in payment of an award, the interest is taxable. Website efile past year tax returns Installment sale payments. Website efile past year tax returns   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. Website efile past year tax returns That interest is taxable when you receive it. Website efile past year tax returns If little or no interest is provided for in a deferred payment contract, part of each payment may be treated as interest. Website efile past year tax returns See Unstated Interest and Original Issue Discount (OID) in Publication 537. Website efile past year tax returns Interest on annuity contract. Website efile past year tax returns   Accumulated interest on an annuity contract you sell before its maturity date is taxable. Website efile past year tax returns Usurious interest. Website efile past year tax returns   Usurious interest is interest charged at an illegal rate. Website efile past year tax returns This is taxable as interest unless state law automatically changes it to a payment on the principal. Website efile past year tax returns Interest income on frozen deposits. Website efile past year tax returns   Exclude from your gross income interest on frozen deposits. Website efile past year tax returns 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 in which the institution is located has placed limits on withdrawals because other financial institutions in the state are bankrupt or insolvent. Website efile past year tax returns   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). Website efile past year tax returns 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 for information about reporting this interest income exclusion on your tax return. Website efile past year tax returns   The interest you exclude is treated as credited to your account in the following year. Website efile past year tax returns You must include it in income in the year you can withdraw it. Website efile past year tax returns Example. Website efile past year tax returns $100 of interest was credited on your frozen deposit during the year. Website efile past year tax returns You withdrew $80 but could not withdraw any more as of the end of the year. Website efile past year tax returns You must include $80 in your income and exclude $20 from your income for the year. Website efile past year tax returns You must include the $20 in your income for the year you can withdraw it. Website efile past year tax returns Bonds traded flat. Website efile past year tax returns    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. Website efile past year tax returns The defaulted or unpaid interest is not income and is not taxable as interest if paid later. Website efile past year tax returns When you receive a payment of that interest, it is a return of capital that reduces the remaining cost basis of your bond. Website efile past year tax returns Interest that accrues after the date of purchase, however, is taxable interest income for the year received or accrued. Website efile past year tax returns See Bonds Sold Between Interest Dates , later in this chapter. Website efile past year tax returns Below-Market Loans If you make a below-market gift or demand loan, you must report as interest income any forgone interest (defined later) from that loan. Website efile past year tax returns The below-market loan rules and exceptions are described in this section. Website efile past year tax returns For more information, see section 7872 of the Internal Revenue Code and its regulations. Website efile past year tax returns If you receive a below-market loan, you may be able to deduct the forgone interest as well as any interest you actually paid, but not if it is personal interest. Website efile past year tax returns Loans subject to the rules. Website efile past year tax returns   The rules for below-market loans apply to: Gift loans, Pay-related loans, Corporation-shareholder loans, Tax avoidance loans, and Certain loans made to qualified continuing care facilities under a continuing care contract. Website efile past year tax returns A pay-related loan is any below-market loan between an employer and an employee or between an independent contractor and a person for whom the contractor provides services. Website efile past year tax returns A tax avoidance loan is any below-market loan where the avoidance of federal tax is one of the main purposes of the interest arrangement. Website efile past year tax returns Forgone interest. Website efile past year tax returns   For any period, forgone interest is: The amount of interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. Website efile past year tax returns Applicable federal rate. Website efile past year tax returns   Applicable federal rates are published by the IRS each month in the Internal Revenue Bulletin. Website efile past year tax returns Some IRS offices have these bulletins available for research. Website efile past year tax returns See chapter 5, How To Get Tax Help , for other ways to get this information. Website efile past year tax returns Rules for below-market loans. Website efile past year tax returns   The rules that apply to a below-market loan depend on whether the loan is a gift loan, demand loan, or term loan. Website efile past year tax returns Gift and demand loans. Website efile past year tax returns   A gift loan is any below-market loan where the forgone interest is in the nature of a gift. Website efile past year tax returns   A demand loan is a loan payable in full at any time upon demand by the lender. Website efile past year tax returns A demand loan is a below-market loan if no interest is charged or if interest is charged at a rate below the applicable federal rate. Website efile past year tax returns   A demand loan or gift loan that is a below-market loan is generally treated as an arm's-length transaction in which the lender is treated as having made: A loan to the borrower in exchange for a note that requires the payment of interest at the applicable federal rate, and An additional payment to the borrower in an amount equal to the forgone interest. Website efile past year tax returns The borrower is generally treated as transferring the additional payment back to the lender as interest. Website efile past year tax returns The lender must report that amount as interest income. Website efile past year tax returns   The lender's additional payment to the borrower is treated as a gift, dividend, contribution to capital, pay for services, or other payment, depending on the substance of the transaction. Website efile past year tax returns The borrower may have to report this payment as taxable income, depending on its classification. Website efile past year tax returns These transfers are considered to occur annually, generally on December 31. Website efile past year tax returns Term loans. Website efile past year tax returns   A term loan is any loan that is not a demand loan. Website efile past year tax returns A term loan is a below-market loan if the amount of the loan is more than the present value of all payments due under the loan. Website efile past year tax returns   A lender who makes a below-market term loan other than a gift loan is treated as transferring an additional lump-sum cash payment to the borrower (as a dividend, contribution to capital, etc. Website efile past year tax returns ) on the date the loan is made. Website efile past year tax returns The amount of this payment is the amount of the loan minus the present value, at the applicable federal rate, of all payments due under the loan. Website efile past year tax returns An equal amount is treated as original issue discount (OID). Website efile past year tax returns The lender must report the annual part of the OID as interest income. Website efile past year tax returns The borrower may be able to deduct the OID as interest expense. Website efile past year tax returns See Original Issue Discount (OID) , later. Website efile past year tax returns Exceptions to the below-market loan rules. Website efile past year tax returns   Exceptions to the below-market loan rules are discussed here. Website efile past year tax returns Exception for loans of $10,000 or less. Website efile past year tax returns   The rules for below-market loans do not apply to any day on which the total outstanding amount of loans between the borrower and lender is $10,000 or less. Website efile past year tax returns This exception applies only to: Gift loans between individuals if the gift loan is not directly used to buy or carry income-producing assets, and Pay-related loans or corporation-shareholder loans if the avoidance of federal tax is not a principal purpose of the interest arrangement. Website efile past year tax returns This exception does not apply to a term loan described in (2) earlier that previously has been subject to the below-market loan rules. Website efile past year tax returns Those rules will continue to apply even if the outstanding balance is reduced to $10,000 or less. Website efile past year tax returns Exception for loans to continuing care facilities. Website efile past year tax returns   Loans to qualified continuing care facilities under continuing care contracts are not subject to the rules for below-market loans for the calendar year if the lender or the lender's spouse is age 62 or older at the end of the year. Website efile past year tax returns For the definitions of qualified continuing care facility and continuing care contract, see Internal Revenue Code section 7872(h). Website efile past year tax returns Exception for loans without significant tax effect. Website efile past year tax returns   Loans are excluded from the below-market loan rules if their interest arrangements do not have a significant effect on the federal tax liability of the borrower or the lender. Website efile past year tax returns These loans include: Loans made available by the lender to the general public on the same terms and conditions that are consistent with the lender's customary business practice; Loans subsidized by a federal, state, or municipal government that are made available under a program of general application to the public; Certain employee-relocation loans; Certain loans from a foreign person, unless the interest income would be effectively connected with the conduct of a U. Website efile past year tax returns S. Website efile past year tax returns trade or business and would not be exempt from U. Website efile past year tax returns S. Website efile past year tax returns tax under an income tax treaty; Gift loans to a charitable organization, contributions to which are deductible, if the total outstanding amount of loans between the organization and lender is $250,000 or less at all times during the tax year; and Other loans on which the interest arrangement can be shown to have no significant effect on the federal tax liability of the lender or the borrower. Website efile past year tax returns For a loan described in (6) above, all the facts and circumstances are used to determine if the interest arrangement has a significant effect on the federal tax liability of the lender or borrower. Website efile past year tax returns Some factors to be considered are: Whether items of income and deduction generated by the loan offset each other; The amount of these items; The cost to you of complying with the below-market loan rules, if they were to apply; and Any reasons other than taxes for structuring the transaction as a below-market loan. Website efile past year tax returns If you structure a transaction to meet this exception and one of the principal purposes of that structure is the avoidance of federal tax, the loan will be considered a tax-avoidance loan, and this exception will not apply. Website efile past year tax returns Limit on forgone interest for gift loans of $100,000 or less. Website efile past year tax returns   For gift loans between individuals, if the outstanding loans between the lender and borrower total $100,000 or less, the forgone interest to be included in income by the lender and deducted by the borrower is limited to the amount of the borrower's net investment income for the year. Website efile past year tax returns If the borrower's net investment income is $1,000 or less, it is treated as zero. Website efile past year tax returns This limit does not apply to a loan if the avoidance of federal tax is one of the main purposes of the interest arrangement. Website efile past year tax returns Effective dates. Website efile past year tax returns    These rules apply to term loans made after June 6, 1984, and to demand loans outstanding after that date. Website efile past year tax returns U. Website efile past year tax returns S. Website efile past year tax returns Savings Bonds This section provides tax information on U. Website efile past year tax returns S. Website efile past year tax returns savings bonds. Website efile past year tax returns It explains how to report the interest income on these bonds and how to treat transfers of these bonds. Website efile past year tax returns U. Website efile past year tax returns S. Website efile past year tax returns savings bonds currently offered to individuals include Series EE bonds and Series I bonds. Website efile past year tax returns For other information on U. Website efile past year tax returns S. Website efile past year tax returns savings bonds, write to:  For Series HH/H: Bureau of the Fiscal Service Division of Customer Assistance P. Website efile past year tax returns O. Website efile past year tax returns Box 2186 Parkersburg, WV 26106-2186  For Series EE and I paper savings bonds: Bureau of the Fiscal Service Division of Customer Assistance P. Website efile past year tax returns O. Website efile past year tax returns Box 7012 Parkersburg, WV 26106-7012  For Series EE and I electronic bonds: Bureau of the Fiscal Service  Division of Customer Assistance P. Website efile past year tax returns O. Website efile past year tax returns Box 7015 Parkersburg, WV 26106-7015 Or, on the Internet, visit: www. Website efile past year tax returns treasurydirect. Website efile past year tax returns gov/indiv/indiv. Website efile past year tax returns htm. Website efile past year tax returns Accrual method taxpayers. Website efile past year tax returns   If you use an accrual method of accounting, you must report interest on U. Website efile past year tax returns S. Website efile past year tax returns savings bonds each year as it accrues. Website efile past year tax returns You cannot postpone reporting interest until you receive it or until the bonds mature. Website efile past year tax returns Cash method taxpayers. Website efile past year tax returns   If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U. Website efile past year tax returns S. Website efile past year tax returns savings bonds when you receive it. Website efile past year tax returns But see Reporting options for cash method taxpayers , later. Website efile past year tax returns Series HH bonds. Website efile past year tax returns   These bonds were issued at face value. Website efile past year tax returns Interest is paid twice a year by direct deposit to your bank account. Website efile past year tax returns If you are a cash method taxpayer, you must report interest on these bonds as income in the year you receive it. Website efile past year tax returns   Series HH bonds were first offered in 1980 and last offered in August 2004. Website efile past year tax returns Before 1980, series H bonds were issued. Website efile past year tax returns Series H bonds are treated the same as series HH bonds. Website efile past year tax returns If you are a cash method taxpayer, you must report the interest when you receive it. Website efile past year tax returns   Series H bonds have a maturity period of 30 years. Website efile past year tax returns Series HH bonds mature in 20 years. Website efile past year tax returns The last series H bonds matured in 2009. Website efile past year tax returns The last series HH bonds will mature in 2024. Website efile past year tax returns Series EE and series I bonds. Website efile past year tax returns   Interest on these bonds is payable when you redeem the bonds. Website efile past year tax returns The difference between the purchase price and the redemption value is taxable interest. Website efile past year tax returns Series EE bonds. Website efile past year tax returns   Series EE bonds were first offered in January 1980 and have a maturity period of 30 years. Website efile past year tax returns Before July 1980, series E bonds were issued. Website efile past year tax returns 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. Website efile past year tax returns Paper series EE and series E bonds are issued at a discount. Website efile past year tax returns The face value is payable to you at maturity. Website efile past year tax returns Electronic series EE bonds are issued at their face value. Website efile past year tax returns The face value plus accrued interest is payable to you at maturity. Website efile past year tax returns As of January 1, 2012, paper savings bonds were no longer sold at financial institutions. Website efile past year tax returns    Owners of paper series EE bonds can convert them to electronic bonds. Website efile past year tax returns These converted bonds do not retain the denomination listed on the paper certificate but are posted at their purchase price (with accrued interest). Website efile past year tax returns Series I bonds. Website efile past year tax returns   Series I bonds were first offered in 1998. Website efile past year tax returns These are inflation-indexed bonds issued at their face amount with a maturity period of 30 years. Website efile past year tax returns The face value plus all accrued interest is payable to you at maturity. Website efile past year tax returns Reporting options for cash method taxpayers. Website efile past year tax returns   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. Website efile past year tax returns Method 1. Website efile past year tax returns Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year in which they mature. Website efile past year tax returns (However, see Savings bonds traded , later. Website efile past year tax returns )  Note. Website efile past year tax returns Series EE bonds issued in 1983 matured in 2013. Website efile past year tax returns If you have used method 1, you generally must report the interest on these bonds on your 2013 return. Website efile past year tax returns The last series E bonds were issued in 1980 and matured in 2010. Website efile past year tax returns If you used method 1, you generally should have reported the interest on these bonds on your 2010 return. Website efile past year tax returns Method 2. Website efile past year tax returns Choose to report the increase in redemption value as interest each year. Website efile past year tax returns  You must use the same method for all series EE, series E, and series I bonds you own. Website efile past year tax returns If you do not choose method 2 by reporting the increase in redemption value as interest each year, you must use method 1. Website efile past year tax returns If you plan to cash your bonds in the same year you will pay for higher educational expenses, you may want to use method 1 because you may be able to exclude the interest from your income. Website efile past year tax returns To learn how, see Education Savings Bond Program, later. Website efile past year tax returns Change from method 1. Website efile past year tax returns   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. Website efile past year tax returns In the year of change, you must report all interest accrued to date and not previously reported for all your bonds. Website efile past year tax returns   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. Website efile past year tax returns Change from method 2. Website efile past year tax returns   To change from method 2 to method 1, you must request permission from the IRS. Website efile past year tax returns Permission for the change is automatically granted if you send the IRS a statement that meets all the following requirements. Website efile past year tax returns You have typed or printed the following number at the top: “131. Website efile past year tax returns ” It includes your name and social security number under “131. Website efile past year tax returns ” It includes the year of change (both the beginning and ending dates). Website efile past year tax returns It identifies the savings bonds for which you are requesting this change. Website efile past year tax returns 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. Website efile past year tax returns   You must attach this statement to your tax return for the year of change, which you must file by the due date (including extensions). Website efile past year tax returns   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. Website efile past year tax returns On the statement, type or print “Filed pursuant to section 301. Website efile past year tax returns 9100-2. Website efile past year tax returns ” To get this extension, you must have filed your original return for the year of the change by the due date (including extensions). Website efile past year tax returns    By the date you file the original statement with your return, you must also send a signed copy to the address below. Website efile past year tax returns    Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) P. Website efile past year tax returns O. Website efile past year tax returns Box 7604 Benjamin Franklin Station Washington, DC 20044   If you use a private delivery service, send the signed copy to the address below. Website efile past year tax returns 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. Website efile past year tax returns In that case, follow the form instructions for an automatic change. Website efile past year tax returns No user fee is required. Website efile past year tax returns Co-owners. Website efile past year tax returns   If a U. Website efile past year tax returns S. Website efile past year tax returns 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. Website efile past year tax returns One co-owner's funds used. Website efile past year tax returns   If you used your funds to buy the bond, you must pay the tax on the interest. Website efile past year tax returns This is true even if you let the other co-owner redeem the bond and keep all the proceeds. Website efile past year tax returns 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. Website efile past year tax returns The co-owner who redeemed the bond is a “nominee. Website efile past year tax returns ” See Nominee distributions under How To Report Interest Income, later, for more information about how a person who is a nominee reports interest income belonging to another person. Website efile past year tax returns Both co-owners' funds used. Website efile past year tax returns   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. Website efile past year tax returns Community property. Website efile past year tax returns   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. Website efile past year tax returns If you file separate returns, each of you generally must report one-half of the bond interest. Website efile past year tax returns For more information about community property, see Publication 555. Website efile past year tax returns Table 1-2. Website efile past year tax returns   These rules are also shown in Table 1-2. Website efile past year tax returns Child as only owner. Website efile past year tax returns   Interest on U. Website efile past year tax returns S. Website efile past year tax returns savings bonds bought for and registered only in the name of your child is income to your child, even if you paid for the bonds and are named as beneficiary. Website efile past year tax returns If the bonds are series EE, series E, or series I bonds, the interest on the bonds is income to your child in the earlier of the year the bonds are cashed or disposed of or the year the bonds mature, unless your child chooses to report the interest income each year. Website efile past year tax returns Choice to report interest each year. Website efile past year tax returns   The choice to report the accrued interest each year can be made either by your child or by you for your child. Website efile past year tax returns This choice is made by filing an income tax return that shows all the interest earned to date, and by stating on the return that your child chooses to report the interest each year. Website efile past year tax returns Either you or your child should keep a copy of this return. Website efile past year tax returns   Unless your child is otherwise required to file a tax return for any year after making this choice, your child does not have to file a return only to report the annual accrual of U. Website efile past year tax returns S. Website efile past year tax returns savings bond interest under this choice. Website efile past year tax returns However, see Tax on unearned income of certain children , earlier, under General Information. Website efile past year tax returns Neither you nor your child can change the way you report the interest unless you request permission from the IRS, as discussed earlier under Change from method 2 . Website efile past year tax returns Ownership transferred. Website efile past year tax returns   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. Website efile past year tax returns But, if the bonds were reissued in your name alone, you do not have to report the interest accrued at that time. Website efile past year tax returns   This same rule applies when bonds (other than bonds held as community property) are transferred between spouses or incident to divorce. Website efile past year tax returns Example. Website efile past year tax returns You bought series EE bonds entirely with your own funds. Website efile past year tax returns You did not choose to report the accrued interest each year. Website efile past year tax returns Later, you transfer the bonds to your former spouse under a divorce agreement. Website efile past year tax returns You must include the deferred accrued interest, from the date of the original issue of the bonds to the date of transfer, in your income in the year of transfer. Website efile past year tax returns Your former spouse includes in income the interest on the bonds from the date of transfer to the date of redemption. Website efile past year tax returns Table 1-2. Website efile past year tax returns Who Pays the Tax on U. Website efile past year tax returns S. Website efile past year tax returns Savings Bond Interest IF . Website efile past year tax returns . Website efile past year tax returns . Website efile past year tax returns THEN the interest must be reported by . Website efile past year tax returns . Website efile past year tax returns . Website efile past year tax returns you buy a bond in your name and the name of another person as co-owners, using only your own funds you. Website efile past year tax returns 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. Website efile past year tax returns 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. Website efile past year tax returns you and your spouse, who live in a community property state, buy a bond that is community property you and your spouse. Website efile past year tax returns If you file separate returns, both you and your spouse generally report one-half of the interest. Website efile past year tax returns Purchased jointly. Website efile past year tax returns   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. Website efile past year tax returns 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. Website efile past year tax returns This interest, however, as well as all interest earned after the reissue, is income to the former co-owner. Website efile past year tax returns   This income-reporting rule also applies when the bonds are reissued in the name of your former co-owner and a new co-owner. Website efile past year tax returns But the new co-owner will report only his or her share of the interest earned after the transfer. Website efile past year tax returns   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. Website efile past year tax returns Example 1. Website efile past year tax returns You and your spouse each spent an equal amount to buy a $1,000 series EE savings bond. Website efile past year tax returns The bond was issued to you and your spouse as co-owners. Website efile past year tax returns You both postpone reporting interest on the bond. Website efile past year tax returns You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. Website efile past year tax returns At that time neither you nor your spouse has to report the interest earned to the date of reissue. Website efile past year tax returns Example 2. Website efile past year tax returns You bought a $1,000 series EE savings bond entirely with your own funds. Website efile past year tax returns The bond was issued to you and your spouse as co-owners. Website efile past year tax returns You both postponed reporting interest on the bond. Website efile past year tax returns You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. Website efile past year tax returns You must report half the interest earned to the date of reissue. Website efile past year tax returns Transfer to a trust. Website efile past year tax returns   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. Website efile past year tax returns 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. Website efile past year tax returns 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. Website efile past year tax returns   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. Website efile past year tax returns See Savings bonds traded , later. Website efile past year tax returns Decedents. Website efile past year tax returns   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. Website efile past year tax returns Decedent who reported interest each year. Website efile past year tax returns   If the bonds transferred because of death were owned by a person who used an accrual method, or who used the cash method and had chosen to report the interest each year, the interest earned in the year of death up to the date of death must be reported on that person's final return. Website efile past year tax returns The person who acquires the bonds includes in income only interest earned after the date of death. Website efile past year tax returns Decedent who postponed reporting interest. Website efile past year tax returns   If the transferred bonds were owned by a decedent who had used the cash method and had not chosen to report the interest each year, and who had bought the bonds entirely with his or her own funds, all interest earned before death must be reported in one of the following ways. Website efile past year tax returns The surviving spouse or personal representative (executor, administrator, etc. Website efile past year tax returns ) who files the final income tax return of the decedent can choose to include on that return all interest earned on the bonds before the decedent's death. Website efile past year tax returns The person who acquires the bonds then includes in income only interest earned after the date of death. Website efile past year tax returns If the choice in (1) is not made, the interest earned up to the date of death is income in respect of the decedent and should not be included in the decedent's final return. Website efile past year tax returns All interest earned both before and after the decedent's death (except any part reported by the estate on its income tax return) is income to the person who acquires the bonds. Website efile past year tax returns If that person uses the cash method and does not choose to report the interest each year, he or she can postpone reporting it until the year the bonds are cashed or disposed of or the year they mature, whichever is earlier. Website efile past year tax returns In the year that person reports the interest, he or she can claim a deduction for any federal estate tax paid on the part of the interest included in the decedent's estate. Website efile past year tax returns For more information on income in respect of a decedent, see Publication 559, Survivors, Executors, and Administrators. Website efile past year tax returns Example 1. Website efile past year tax returns Your uncle, a cash method taxpayer, died and left you a $1,000 series EE bond. Website efile past year tax returns He had bought the bond for $500 and had not chosen to report the interest each year. Website efile past year tax returns At the date of death, interest of $200 had accrued on the bond, and its value of $700 was included in your uncle's estate. Website efile past year tax returns Your uncle's executor chose not to include the $200 accrued interest in your uncle's final income tax return. Website efile past year tax returns The $200 is income in respect of the decedent. Website efile past year tax returns You are a cash method taxpayer and do not choose to report the interest each year as it is earned. Website efile past year tax returns If you cash the bond when it reaches maturity value of $1,000, you report $500 interest income—the difference between maturity value of $1,000 and the original cost of $500. Website efile past year tax returns For that year, you can deduct (as a miscellaneous itemized deduction not subject to the 2%-of-adjusted-gross-income limit) any federal estate tax paid because the $200 interest was included in your uncle's estate. Website efile past year tax returns Example 2. Website efile past year tax returns If, in Example 1 , the executor had chosen to include the $200 accrued interest in your uncle's final return, you would report only $300 as interest when you cashed the bond at maturity. Website efile past year tax returns $300 is the interest earned after your uncle's death. Website efile past year tax returns Example 3. Website efile past year tax returns If, in Example 1 , you make or have made the choice to report the increase in redemption value as interest each year, you include in gross income for the year you acquire the bond all of the unreported increase in value of all series E, series EE, and series I bonds you hold, including the $200 on the bond you inherited from your uncle. Website efile past year tax returns Example 4. Website efile past year tax returns When your aunt died, she owned series HH bonds that she had acquired in a trade for series EE bonds. Website efile past year tax returns You were the beneficiary of these bonds. Website efile past year tax returns Your aunt used the cash method and did not choose to report the interest on the series EE bonds each year as it accrued. Website efile past year tax returns Your aunt's executor chose not to include any interest earned before your aunt's death on her final return. Website efile past year tax returns The income in respect of the decedent is the sum of the unreported interest on the series EE bonds and the interest, if any, payable on the series HH bonds but not received as of the date of your aunt's death. Website efile past year tax returns You must report any interest received during the year as income on your return. Website efile past year tax returns The part of the interest payable but not received before your aunt's death is income in respect of the decedent and may qualify for the estate tax deduction. Website efile past year tax returns For information on when to report the interest on the series EE bonds traded, see Savings bonds traded , later. Website efile past year tax returns Savings bonds distributed from a retirement or profit-sharing plan. Website efile past year tax returns   If you acquire a U. Website efile past year tax returns S. Website efile past year tax returns savings bond in a taxable distribution from a retirement or profit-sharing plan, your income for the year of distribution includes the bond's redemption value (its cost plus the interest accrued before the distribution). Website efile past year tax returns When you redeem the bond (whether in the year of distribution or later), your interest income includes only the interest accrued after the bond was distributed. Website efile past year tax returns To figure the interest reported as a taxable distribution and your interest income when you redeem the bond, see Worksheet for savings bonds distributed from a retirement or profit-sharing plan under How To Report Interest Income, later. Website efile past year tax returns Savings bonds traded. Website efile past year tax returns   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. Website efile past year tax returns (You cannot trade series I bonds for series HH bonds. Website efile past year tax returns After August 31, 2004, you cannot trade any other series of bonds for series HH bonds. Website efile past year tax returns ) Any cash you received is income up to the amount of the interest earned on the bonds traded. Website efile past year tax returns 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. Website efile past year tax returns 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. Website efile past year tax returns Example. Website efile past year tax returns You traded series EE bonds (on which you postponed reporting the interest) for $2,500 in series HH bonds and $223 in cash. Website efile past year tax returns You reported the $223 as taxable income on your tax return. Website efile past year tax returns At the time of the trade, the series EE bonds had accrued interest of $523 and a redemption value of $2,723. Website efile past year tax returns You hold the series HH bonds until maturity, when you receive $2,500. Website efile past year tax returns You must report $300 as interest income in the year of maturity. Website efile past year tax returns This is the difference between their redemption value, $2,500, and your cost, $2,200 (the amount you paid for the series EE bonds). Website efile past year tax returns (It is also the difference between the accrued interest of $523 on the series EE bonds and the $223 cash received on the trade. Website efile past year tax returns ) Choice to report interest in year of trade. Website efile past year tax returns   You could have chosen to treat all of the previously unreported accrued interest on series EE or series E bonds traded for series HH bonds as income in the year of the trade. Website efile past year tax returns If you made this choice, it is treated as a change from method 1. Website efile past year tax returns See Change from method 1 under Series EE and series I bonds, earlier. Website efile past year tax returns Form 1099-INT for U. Website efile past year tax returns S. Website efile past year tax returns savings bond interest. Website efile past year tax returns   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. Website efile past year tax returns 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. Website efile past year tax returns However, your Form 1099-INT may show more interest than you have to include on your income tax return. Website efile past year tax returns For example, this may happen if any of the following are true. Website efile past year tax returns You chose to report the increase in the redemption value of the bond each year. Website efile past year tax returns The interest shown on your Form 1099-INT will not be reduced by amounts previously included in income. Website efile past year tax returns You received the bond from a decedent. Website efile past year tax returns 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. Website efile past year tax returns Ownership of the bond was transferred. Website efile past year tax returns The interest shown on your Form 1099-INT will not be reduced by interest that accrued before the transfer. Website efile past year tax returns You were named as a co-owner, and the other co-owner contributed funds to buy the bond. Website efile past year tax returns The interest shown on your Form 1099-INT will not be reduced by the amount you received as nominee for the other co-owner. Website efile past year tax returns (See Co-owners , earlier in this section, for more information about the reporting requirements. Website efile past year tax returns ) You received the bond in a taxable distribution from a retirement or profit-sharing plan. Website efile past year tax returns 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. Website efile past year tax returns (This amount is generally shown on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Website efile past year tax returns , for the year of distribution. Website efile past year tax returns )   For more information on including the correct amount of interest on your return, see U. Website efile past year tax returns S. Website efile past year tax returns savings bond interest previously reported or Nominee distributions under How To Report Interest Income, later. Website efile past year tax returns    Interest on U. Website efile past year tax returns S. Website efile past year tax returns savings bonds is exempt from state and local taxes. Website efile past year tax returns The Form 1099-INT you receive will indicate the amount that is for U. Website efile past year tax returns S. Website efile past year tax returns savings bonds interest in box 3. Website efile past year tax returns Do not include this income on your state or local income tax return. Website efile past year tax returns 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. Website efile past year tax returns S. Website efile past year tax returns savings bonds during the year if you pay qualified higher educational expenses during the same year. Website efile past year tax returns This exclusion is known as the Education Savings Bond Program. Website efile past year tax returns You do not qualify for this exclusion if your filing status is married filing separately. Website efile past year tax returns Form 8815. Website efile past year tax returns   Use Form 8815 to figure your exclusion. Website efile past year tax returns Attach the form to your Form 1040 or Form 1040A. Website efile past year tax returns Qualified U. Website efile past year tax returns S. Website efile past year tax returns savings bonds. Website efile past year tax returns   A qualified U. Website efile past year tax returns S. Website efile past year tax returns savings bond is a series EE bond issued after 1989 or a series I bond. Website efile past year tax returns The bond must be issued either in your name (sole owner) or in your and your spouse's names (co-owners). Website efile past year tax returns You must be at least 24 years old before the bond's issue date. Website efile past year tax returns 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. Website efile past year tax returns    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. Website efile past year tax returns Beneficiary. Website efile past year tax returns   You can designate any individual (including a child) as a beneficiary of the bond. Website efile past year tax returns Verification by IRS. Website efile past year tax returns   If you claim the exclusion, the IRS will check it by using bond redemption information from the Department of Treasury. Website efile past year tax returns Qualified expenses. Website efile past year tax returns   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. Website efile past year tax returns   Qualified expenses include any contribution you make to a qualified tuition program or to a Coverdell education savings account. Website efile past year tax returns For information about these programs, see Publication 970, Tax Benefits for Education. Website efile past year tax returns   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. Website efile past year tax returns Eligible educational institutions. Website efile past year tax returns   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 Department of Education. Website efile past year tax returns Reduction for certain benefits. Website efile past year tax returns   You must reduce your qualified higher educational expenses by all of the following tax-free benefits. Website efile past year tax returns Tax-free part of scholarships and fellowships. Website efile past year tax returns Expenses used to figure the tax-free portion of distributions from a Coverdell ESA. Website efile past year tax returns Expenses used to figure the tax-free portion of distributions from a qualified tuition program. Website efile past year tax returns Any tax-free payments (other than gifts or inheritances) received as educational assistance, such as: Veterans' educational assistance benefits, Qualified tuition reductions, or Employer-provided educational assistance. Website efile past year tax returns Any expense used in figuring the American Opportunity and lifetime learning credits. Website efile past year tax returns For information about these benefits, see Publication 970. Website efile past year tax returns Amount excludable. Website efile past year tax returns   If the total proceeds (interest and principal) from the qualified U. Website efile past year tax returns S. Website efile past year tax returns 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. Website efile past year tax returns If the proceeds are more than the expenses, you may be able to exclude only part of the interest. Website efile past year tax returns   To determine the excludable amount, multiply the interest part of the proceeds by a fraction. Website efile past year tax returns The numer