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Irs Form 1040ez Tax Tables

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Irs Form 1040ez Tax Tables

Irs form 1040ez tax tables Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. Irs form 1040ez tax tables Computer used in a home office. Irs form 1040ez tax tables Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). Irs form 1040ez tax tables You can claim the amount of expenses that is more than 2% of your adjusted gross income. Irs form 1040ez tax tables You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Irs form 1040ez tax tables Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. Irs form 1040ez tax tables Generally, you apply the 2% limit after you apply any other deduction limit. Irs form 1040ez tax tables For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. Irs form 1040ez tax tables Deductions subject to the 2% limit are discussed in the following three categories. Irs form 1040ez tax tables Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). Irs form 1040ez tax tables Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). Irs form 1040ez tax tables Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). Irs form 1040ez tax tables Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Irs form 1040ez tax tables You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Irs form 1040ez tax tables An expense is ordinary if it is common and accepted in your trade, business, or profession. Irs form 1040ez tax tables An expense is necessary if it is appropriate and helpful to your business. Irs form 1040ez tax tables An expense does not have to be required to be considered necessary. Irs form 1040ez tax tables You may be able to deduct the following items as unreimbursed employee expenses. Irs form 1040ez tax tables Business bad debt of an employee. Irs form 1040ez tax tables Business liability insurance premiums. Irs form 1040ez tax tables Damages paid to a former employer for breach of an employment contract. Irs form 1040ez tax tables Depreciation on a computer your employer requires you to use in your work. Irs form 1040ez tax tables Dues to a chamber of commerce if membership helps you do your job. Irs form 1040ez tax tables Dues to professional societies. Irs form 1040ez tax tables Educator expenses. Irs form 1040ez tax tables Home office or part of your home used regularly and exclusively in your work. Irs form 1040ez tax tables Job search expenses in your present occupation. Irs form 1040ez tax tables Laboratory breakage fees. Irs form 1040ez tax tables Legal fees related to your job. Irs form 1040ez tax tables Licenses and regulatory fees. Irs form 1040ez tax tables Malpractice insurance premiums. Irs form 1040ez tax tables Medical examinations required by an employer. Irs form 1040ez tax tables Occupational taxes. Irs form 1040ez tax tables Passport for a business trip. Irs form 1040ez tax tables Repayment of an income aid payment received under an employer's plan. Irs form 1040ez tax tables Research expenses of a college professor. Irs form 1040ez tax tables Rural mail carriers' vehicle expenses. Irs form 1040ez tax tables Subscriptions to professional journals and trade magazines related to your work. Irs form 1040ez tax tables Tools and supplies used in your work. Irs form 1040ez tax tables Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. Irs form 1040ez tax tables Union dues and expenses. Irs form 1040ez tax tables Work clothes and uniforms if required and not suitable for everyday use. Irs form 1040ez tax tables Work-related education. Irs form 1040ez tax tables Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. Irs form 1040ez tax tables Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. Irs form 1040ez tax tables A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. Irs form 1040ez tax tables Example. Irs form 1040ez tax tables You make a bona fide loan to the corporation you work for. Irs form 1040ez tax tables It fails to pay you back. Irs form 1040ez tax tables You had to make the loan in order to keep your job. Irs form 1040ez tax tables You have a business bad debt as an employee. Irs form 1040ez tax tables More information. Irs form 1040ez tax tables   For more information on business bad debts, see chapter 10 in Publication 535. Irs form 1040ez tax tables For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. Irs form 1040ez tax tables Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Irs form 1040ez tax tables Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. Irs form 1040ez tax tables Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Irs form 1040ez tax tables For the convenience of your employer. Irs form 1040ez tax tables   This means that your use of the computer is for a substantial business reason of your employer. Irs form 1040ez tax tables You must consider all facts in making this determination. Irs form 1040ez tax tables Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. Irs form 1040ez tax tables Required as a condition of your employment. Irs form 1040ez tax tables   This means that you cannot properly perform your duties without the computer. Irs form 1040ez tax tables Whether you can properly perform your duties without it depends on all the facts and circumstances. Irs form 1040ez tax tables It is not necessary that your employer explicitly requires you to use your computer. Irs form 1040ez tax tables But neither is it enough that your employer merely states that your use of the item is a condition of your employment. Irs form 1040ez tax tables Example. Irs form 1040ez tax tables You are an engineer with an engineering firm. Irs form 1040ez tax tables You occasionally take work home at night rather than work late at the office. Irs form 1040ez tax tables You own and use a computer that is similar to the one you use at the office to complete your work at home. Irs form 1040ez tax tables Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. Irs form 1040ez tax tables Which depreciation method to use. Irs form 1040ez tax tables   The depreciation method you use depends on whether you meet the more-than-50%-use test. Irs form 1040ez tax tables More-than-50%-use test met. Irs form 1040ez tax tables   You meet this test if you use the computer more than 50% in your work. Irs form 1040ez tax tables If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). Irs form 1040ez tax tables In addition, you may be able to take the section 179 deduction for the year you place the item in service. Irs form 1040ez tax tables More-than-50%-use test not met. Irs form 1040ez tax tables   If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). Irs form 1040ez tax tables You also cannot claim the section 179 deduction. Irs form 1040ez tax tables (But if you use your computer in a home office, see the exception below. Irs form 1040ez tax tables ) Investment use. Irs form 1040ez tax tables   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. Irs form 1040ez tax tables However, you can combine your investment use with your work use in figuring your depreciation deduction. Irs form 1040ez tax tables Exception for computer used in a home office. Irs form 1040ez tax tables   The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . Irs form 1040ez tax tables You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. Irs form 1040ez tax tables You also may be able to take a section 179 deduction for the year you place the computer in service. Irs form 1040ez tax tables See Computer used in a home office under How To Report, later. Irs form 1040ez tax tables More information. Irs form 1040ez tax tables   For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. Irs form 1040ez tax tables Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. Irs form 1040ez tax tables Reporting your depreciation deduction. Irs form 1040ez tax tables    See How To Report, later, for information about reporting a deduction for depreciation. Irs form 1040ez tax tables You must keep records to prove your percentage of business and investment use. Irs form 1040ez tax tables Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Irs form 1040ez tax tables Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Irs form 1040ez tax tables Lobbying and political activities. Irs form 1040ez tax tables    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Irs form 1040ez tax tables See Lobbying Expenses under Nondeductible Expenses, later. Irs form 1040ez tax tables Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Irs form 1040ez tax tables If you file Form 1040A, you can deduct these expenses on line 16. Irs form 1040ez tax tables If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Irs form 1040ez tax tables However, neither spouse can deduct more than $250 of his or her qualified expenses. Irs form 1040ez tax tables Eligible educator. Irs form 1040ez tax tables   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. Irs form 1040ez tax tables Qualified expenses. Irs form 1040ez tax tables   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Irs form 1040ez tax tables An ordinary expense is one that is common and accepted in your educational field. Irs form 1040ez tax tables A necessary expense is one that is helpful and appropriate for your profession as an educator. Irs form 1040ez tax tables An expense does not have to be required to be considered necessary. Irs form 1040ez tax tables   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Irs form 1040ez tax tables You must reduce your qualified expenses by the following amounts. Irs form 1040ez tax tables Excludable U. Irs form 1040ez tax tables S. Irs form 1040ez tax tables series EE and I savings bond interest from Form 8815. Irs form 1040ez tax tables Nontaxable qualified state tuition program earnings. Irs form 1040ez tax tables Nontaxable earnings from Coverdell education savings accounts. Irs form 1040ez tax tables Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. Irs form 1040ez tax tables Educator expenses over limit. Irs form 1040ez tax tables   If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. Irs form 1040ez tax tables Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Irs form 1040ez tax tables You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Irs form 1040ez tax tables The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Irs form 1040ez tax tables Principal place of business. Irs form 1040ez tax tables   If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Irs form 1040ez tax tables   Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. Irs form 1040ez tax tables You should keep records that will give the information needed to figure the deduction according to these rules. Irs form 1040ez tax tables Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. Irs form 1040ez tax tables More information. Irs form 1040ez tax tables   See Publication 587 for more detailed information and a worksheet for figuring the deduction. Irs form 1040ez tax tables Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Irs form 1040ez tax tables You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Irs form 1040ez tax tables Employment and outplacement agency fees. Irs form 1040ez tax tables    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Irs form 1040ez tax tables Employer pays you back. Irs form 1040ez tax tables   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Irs form 1040ez tax tables See Recoveries in Publication 525. Irs form 1040ez tax tables Employer pays the employment agency. Irs form 1040ez tax tables   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Irs form 1040ez tax tables Résumé. Irs form 1040ez tax tables   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Irs form 1040ez tax tables Travel and transportation expenses. Irs form 1040ez tax tables   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Irs form 1040ez tax tables You can deduct the travel expenses if the trip is primarily to look for a new job. Irs form 1040ez tax tables The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Irs form 1040ez tax tables   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Irs form 1040ez tax tables    You can choose to use the standard mileage rate to figure your car expenses. Irs form 1040ez tax tables The 2013 rate for business use of a vehicle is 56½ cents per mile. Irs form 1040ez tax tables See Publication 463 for more information on travel and car expenses. Irs form 1040ez tax tables Legal Fees You can deduct legal fees related to doing or keeping your job. Irs form 1040ez tax tables Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Irs form 1040ez tax tables Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Irs form 1040ez tax tables If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Irs form 1040ez tax tables Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Irs form 1040ez tax tables If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Irs form 1040ez tax tables Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Irs form 1040ez tax tables You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Irs form 1040ez tax tables However, you cannot deduct the cost of travel as a form of education. Irs form 1040ez tax tables Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. Irs form 1040ez tax tables See chapter 4 of Publication 463 for more information. Irs form 1040ez tax tables Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Irs form 1040ez tax tables You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Irs form 1040ez tax tables For more information about depreciation, see Publication 946. Irs form 1040ez tax tables Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. Irs form 1040ez tax tables Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. Irs form 1040ez tax tables Travel expenses. Irs form 1040ez tax tables   Travel expenses are those incurred while traveling away from home for your employer. Irs form 1040ez tax tables You can deduct travel expenses paid or incurred in connection with a temporary work assignment. Irs form 1040ez tax tables Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. Irs form 1040ez tax tables   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. Irs form 1040ez tax tables ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. Irs form 1040ez tax tables   Travel expenses are discussed more fully in chapter 1 of Publication 463. Irs form 1040ez tax tables Temporary work assignment. Irs form 1040ez tax tables    If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. Irs form 1040ez tax tables Indefinite work assignment. Irs form 1040ez tax tables   If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. Irs form 1040ez tax tables If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. Irs form 1040ez tax tables Federal crime investigation and prosecution. Irs form 1040ez tax tables   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. Irs form 1040ez tax tables This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. Irs form 1040ez tax tables   To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. Irs form 1040ez tax tables Armed Forces reservists traveling more than 100 miles from home. Irs form 1040ez tax tables   If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Irs form 1040ez tax tables The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Irs form 1040ez tax tables The balance, if any, is reported on Schedule A. Irs form 1040ez tax tables   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. Irs form 1040ez tax tables   For more information on travel expenses, see Publication 463. Irs form 1040ez tax tables Local transportation expenses. Irs form 1040ez tax tables   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. Irs form 1040ez tax tables They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. Irs form 1040ez tax tables   You can choose to use the standard mileage rate to figure your car expenses. Irs form 1040ez tax tables The 2013 rate for business use of a vehicle is 56½ cents per mile. Irs form 1040ez tax tables    In general, the costs of commuting between your residence and your place of business are nondeductible. Irs form 1040ez tax tables Work at two places in a day. Irs form 1040ez tax tables   If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. Irs form 1040ez tax tables Temporary work location. Irs form 1040ez tax tables   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. Irs form 1040ez tax tables The work location is outside the metropolitan area where you live and normally work. Irs form 1040ez tax tables You have at least one regular work location (other than your home) for the same trade or business. Irs form 1040ez tax tables (If this applies, the distance between your home and the temporary work location does not matter. Irs form 1040ez tax tables )   For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. Irs form 1040ez tax tables It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. Irs form 1040ez tax tables If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. Irs form 1040ez tax tables For more information, see chapter 1 of Publication 463. Irs form 1040ez tax tables Home office. Irs form 1040ez tax tables   You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. Irs form 1040ez tax tables (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. Irs form 1040ez tax tables ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. Irs form 1040ez tax tables Meals and entertainment. Irs form 1040ez tax tables   Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. Irs form 1040ez tax tables However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. Irs form 1040ez tax tables   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. Irs form 1040ez tax tables You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. Irs form 1040ez tax tables Meals when subject to “hours of service” limits. Irs form 1040ez tax tables   You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. Irs form 1040ez tax tables You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. Irs form 1040ez tax tables Gift expenses. Irs form 1040ez tax tables   You can generally deduct up to $25 of business gifts you give to any one individual during the year. Irs form 1040ez tax tables The following items do not count toward the $25 limit. Irs form 1040ez tax tables Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. Irs form 1040ez tax tables Signs, racks, and promotional materials to be displayed on the business premises of the recipient. Irs form 1040ez tax tables Local lodging. Irs form 1040ez tax tables   If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. Irs form 1040ez tax tables   If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. Irs form 1040ez tax tables Additional information. Irs form 1040ez tax tables    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. Irs form 1040ez tax tables Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Irs form 1040ez tax tables You can also deduct assessments for benefit payments to unemployed union members. Irs form 1040ez tax tables However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Irs form 1040ez tax tables Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. Irs form 1040ez tax tables You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Irs form 1040ez tax tables See Lobbying Expenses under Nondeductible Expenses, later. Irs form 1040ez tax tables Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Irs form 1040ez tax tables You must wear them as a condition of your employment. Irs form 1040ez tax tables The clothes are not suitable for everyday wear. Irs form 1040ez tax tables It is not enough that you wear distinctive clothing. Irs form 1040ez tax tables The clothing must be specifically required by your employer. Irs form 1040ez tax tables Nor is it enough that you do not, in fact, wear your work clothes away from work. Irs form 1040ez tax tables The clothing must not be suitable for taking the place of your regular clothing. Irs form 1040ez tax tables Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Irs form 1040ez tax tables ). Irs form 1040ez tax tables Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Irs form 1040ez tax tables However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Irs form 1040ez tax tables Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Irs form 1040ez tax tables Protective clothing. Irs form 1040ez tax tables   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Irs form 1040ez tax tables   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Irs form 1040ez tax tables Military uniforms. Irs form 1040ez tax tables   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Irs form 1040ez tax tables However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Irs form 1040ez tax tables In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Irs form 1040ez tax tables   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Irs form 1040ez tax tables   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. Irs form 1040ez tax tables However, you can deduct the cost of insignia, shoulder boards, and related items. Irs form 1040ez tax tables    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Irs form 1040ez tax tables Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. Irs form 1040ez tax tables It maintains or improves skills required in your present work. Irs form 1040ez tax tables It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. Irs form 1040ez tax tables You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. Irs form 1040ez tax tables If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. Irs form 1040ez tax tables If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. Irs form 1040ez tax tables Travel as education. Irs form 1040ez tax tables   You cannot deduct the cost of travel that in itself constitutes a form of education. Irs form 1040ez tax tables For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. Irs form 1040ez tax tables More information. Irs form 1040ez tax tables    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. Irs form 1040ez tax tables Education Expenses During Unemployment If you stop working for a year or less in order to get education in order to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Irs form 1040ez tax tables Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Irs form 1040ez tax tables Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. Irs form 1040ez tax tables Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Irs form 1040ez tax tables These fees include the cost of tax preparation software programs and tax publications. Irs form 1040ez tax tables They also include any fee you paid for electronic filing of your return. Irs form 1040ez tax tables See Tax preparation fees under How To Report, later. Irs form 1040ez tax tables Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. Irs form 1040ez tax tables On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Irs form 1040ez tax tables You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. Irs form 1040ez tax tables These other expenses include the following items. Irs form 1040ez tax tables Appraisal fees for a casualty loss or charitable contribution. Irs form 1040ez tax tables Casualty and theft losses from property used in performing services as an employee. Irs form 1040ez tax tables Clerical help and office rent in caring for investments. Irs form 1040ez tax tables Depreciation on home computers used for investments. Irs form 1040ez tax tables Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. Irs form 1040ez tax tables Fees to collect interest and dividends. Irs form 1040ez tax tables Hobby expenses, but generally not more than hobby income. Irs form 1040ez tax tables Indirect miscellaneous deductions from pass-through entities. Irs form 1040ez tax tables Investment fees and expenses. Irs form 1040ez tax tables Legal fees related to producing or collecting taxable income or getting tax advice. Irs form 1040ez tax tables Loss on deposits in an insolvent or bankrupt financial institution. Irs form 1040ez tax tables Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. Irs form 1040ez tax tables Repayments of income. Irs form 1040ez tax tables Repayments of social security benefits. Irs form 1040ez tax tables Safe deposit box rental, except for storing jewelry and other personal effects. Irs form 1040ez tax tables Service charges on dividend reinvestment plans. Irs form 1040ez tax tables Tax advice fees. Irs form 1040ez tax tables Trustee's fees for your IRA, if separately billed and paid. Irs form 1040ez tax tables If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. Irs form 1040ez tax tables Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Irs form 1040ez tax tables Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Irs form 1040ez tax tables First report the loss in Section B of Form 4684, Casualties and Thefts. Irs form 1040ez tax tables You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Irs form 1040ez tax tables To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Irs form 1040ez tax tables For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. Irs form 1040ez tax tables Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Irs form 1040ez tax tables Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Irs form 1040ez tax tables The fees are deductible on the return for the year in which you paid them. Irs form 1040ez tax tables For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. Irs form 1040ez tax tables Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Irs form 1040ez tax tables You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Irs form 1040ez tax tables But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. Irs form 1040ez tax tables For more information on depreciation, see Publication 946. Irs form 1040ez tax tables Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Irs form 1040ez tax tables Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Irs form 1040ez tax tables The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Irs form 1040ez tax tables For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Irs form 1040ez tax tables Fees To Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Irs form 1040ez tax tables But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Irs form 1040ez tax tables You must add the fee to the cost of the property. Irs form 1040ez tax tables You cannot deduct the fee you pay to a broker to sell securities. Irs form 1040ez tax tables You can use the fee only to figure gain or loss from the sale. Irs form 1040ez tax tables See the instructions for Schedule D (Form 1040) for information on how to report the fee. Irs form 1040ez tax tables Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Irs form 1040ez tax tables A hobby is not a business because it is not carried on to make a profit. Irs form 1040ez tax tables See Not-for-Profit Activities in chapter 1 of Publication 535. Irs form 1040ez tax tables Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Irs form 1040ez tax tables Deductions of pass-through entities are passed through to the partners or shareholders. Irs form 1040ez tax tables The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Irs form 1040ez tax tables Example. Irs form 1040ez tax tables You are a member of an investment club that is formed solely to invest in securities. Irs form 1040ez tax tables The club is treated as a partnership. Irs form 1040ez tax tables The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Irs form 1040ez tax tables In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Irs form 1040ez tax tables However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Irs form 1040ez tax tables Publicly offered mutual funds. Irs form 1040ez tax tables   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Irs form 1040ez tax tables A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Irs form 1040ez tax tables   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Irs form 1040ez tax tables This net figure is the amount you report on your return as income. Irs form 1040ez tax tables You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Irs form 1040ez tax tables Information returns. Irs form 1040ez tax tables   You should receive information returns from pass-through entities. Irs form 1040ez tax tables Partnerships and S corporations. Irs form 1040ez tax tables   These entities issue Schedule K-1, which lists the items and amounts you must report, and identifies the tax return schedules and lines to use. Irs form 1040ez tax tables Nonpublicly offered mutual funds. Irs form 1040ez tax tables   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. Irs form 1040ez tax tables You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Irs form 1040ez tax tables Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Irs form 1040ez tax tables Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Irs form 1040ez tax tables You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Irs form 1040ez tax tables You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. Irs form 1040ez tax tables You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). Irs form 1040ez tax tables See Tax Preparation Fees, earlier. Irs form 1040ez tax tables Unlawful discrimination claims. Irs form 1040ez tax tables   You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. Irs form 1040ez tax tables S. Irs form 1040ez tax tables Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. Irs form 1040ez tax tables However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. Irs form 1040ez tax tables See Publication 525 for more information. Irs form 1040ez tax tables Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Irs form 1040ez tax tables If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. Irs form 1040ez tax tables If elected, the casualty loss is subject to certain deduction limitations. Irs form 1040ez tax tables The election is made on Form 4684. Irs form 1040ez tax tables Once you make this choice, you cannot change it without IRS approval. Irs form 1040ez tax tables If none of the deposit is federally insured, you can deduct the loss in either of the following ways. Irs form 1040ez tax tables As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). Irs form 1040ez tax tables Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Irs form 1040ez tax tables This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. Irs form 1040ez tax tables As a casualty loss. Irs form 1040ez tax tables Report it on Form 4684 first and then on Schedule A (Form 1040). Irs form 1040ez tax tables See Publication 547 for details. Irs form 1040ez tax tables As a nonbusiness bad debt. Irs form 1040ez tax tables Report it on Schedule D (Form 1040). Irs form 1040ez tax tables If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. Irs form 1040ez tax tables Exception. Irs form 1040ez tax tables   You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. Irs form 1040ez tax tables For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. Irs form 1040ez tax tables Actual loss different from estimated loss. Irs form 1040ez tax tables   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. Irs form 1040ez tax tables See Recoveries in Publication 525. Irs form 1040ez tax tables If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. Irs form 1040ez tax tables Choice not made. Irs form 1040ez tax tables   If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. Irs form 1040ez tax tables See Nonbusiness Bad Debts in chapter 4 of Publication 550. Irs form 1040ez tax tables Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. Irs form 1040ez tax tables For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Irs form 1040ez tax tables Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Irs form 1040ez tax tables If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Irs form 1040ez tax tables If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Irs form 1040ez tax tables Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. Irs form 1040ez tax tables The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. Irs form 1040ez tax tables The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. Irs form 1040ez tax tables It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). Irs form 1040ez tax tables If the deduction is more than $3,000, you will have to use a special computation to figure your tax. Irs form 1040ez tax tables See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. Irs form 1040ez tax tables Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Irs form 1040ez tax tables You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Irs form 1040ez tax tables Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Irs form 1040ez tax tables These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Irs form 1040ez tax tables Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Irs form 1040ez tax tables Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Irs form 1040ez tax tables They are not subject to the 2% limit. Irs form 1040ez tax tables Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Irs form 1040ez tax tables List of Deductions Amortizable premium on taxable bonds. Irs form 1040ez tax tables Casualty and theft losses from income-producing property. Irs form 1040ez tax tables Federal estate tax on income in respect of a decedent. Irs form 1040ez tax tables Gambling losses up to the amount of gambling winnings. Irs form 1040ez tax tables Impairment-related work expenses of persons with disabilities. Irs form 1040ez tax tables Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Irs form 1040ez tax tables Losses from Ponzi-type investment schemes. Irs form 1040ez tax tables Repayments of more than $3,000 under a claim of right. Irs form 1040ez tax tables Unrecovered investment in an annuity. Irs form 1040ez tax tables Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Irs form 1040ez tax tables You can elect to amortize the premium on taxable bonds. Irs form 1040ez tax tables The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Irs form 1040ez tax tables Pre-1998 election to amortize bond premium. Irs form 1040ez tax tables   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Irs form 1040ez tax tables Bonds acquired after October 22, 1986, and before 1988. Irs form 1040ez tax tables   The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. Irs form 1040ez tax tables Bonds acquired before October 23, 1986. Irs form 1040ez tax tables   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. Irs form 1040ez tax tables Deduction for excess premium. Irs form 1040ez tax tables   On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. Irs form 1040ez tax tables If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. Irs form 1040ez tax tables However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. Irs form 1040ez tax tables If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. Irs form 1040ez tax tables    Pre-1998 choice to amortize bond premium. Irs form 1040ez tax tables If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. Irs form 1040ez tax tables More information. Irs form 1040ez tax tables    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. Irs form 1040ez tax tables Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Irs form 1040ez tax tables First report the loss in Section B of Form 4684. Irs form 1040ez tax tables You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Irs form 1040ez tax tables To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Irs form 1040ez tax tables For more information on casualty and theft losses, see Publication 547. Irs form 1040ez tax tables Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Irs form 1040ez tax tables Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Irs form 1040ez tax tables See Publication 559 for information about figuring the amount of this deduction. Irs form 1040ez tax tables Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Irs form 1040ez tax tables You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Irs form 1040ez tax tables You cannot deduct gambling losses that are more than your winnings. Irs form 1040ez tax tables Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). Irs form 1040ez tax tables You cannot reduce your gambling winnings by your gambling losses and report the difference. Irs form 1040ez tax tables You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Irs form 1040ez tax tables Therefore, your records should show your winnings separately from your losses. Irs form 1040ez tax tables Diary of winnings and losses. Irs form 1040ez tax tables You must keep an accurate diary or similar record of your losses and winnings. Irs form 1040ez tax tables Your diary should contain at least the following information. Irs form 1040ez tax tables The date and type of your specific wager or wagering activity. Irs form 1040ez tax tables The name and address or location of the gambling establishment. Irs form 1040ez tax tables The names of other persons present with you at the gambling establishment. Irs form 1040ez tax tables The amount(s) you won or lost. Irs form 1040ez tax tables Proof of winnings and losses. Irs form 1040ez tax tables   In addition to your diary, you should also have other documentation. Irs form 1040ez tax tables You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. Irs form 1040ez tax tables   For specific wagering transactions, you can use the following items to support your winnings and losses. Irs form 1040ez tax tables    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. Irs form 1040ez tax tables They are not all-inclusive. Irs form 1040ez tax tables Your tax liability depends on your particular facts and circumstances. Irs form 1040ez tax tables Keno. Irs form 1040ez tax tables   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. Irs form 1040ez tax tables Slot machines. Irs form 1040ez tax tables   A record of the machine number and all winnings by date and time the machine was played. Irs form 1040ez tax tables Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. Irs form 1040ez tax tables ). Irs form 1040ez tax tables   The number of the table at which you were playing. Irs form 1040ez tax tables Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. Irs form 1040ez tax tables Bingo. Irs form 1040ez tax tables   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Irs form 1040ez tax tables Supplemental records include any receipts from the casino, parlor, etc. Irs form 1040ez tax tables Racing (horse, harness, dog, etc. Irs form 1040ez tax tables ). Irs form 1040ez tax tables   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Irs form 1040ez tax tables Supplemental records include unredeemed tickets and payment records from the racetrack. Irs form 1040ez tax tables Lotteries. Irs form 1040ez tax tables   A record of ticket purchases, dates, winnings, and losses. Irs form 1040ez tax tables Supplemental records include unredeemed tickets, payment slips, and winnings statements. Irs form 1040ez tax tables Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Irs form 1040ez tax tables Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. Irs form 1040ez tax tables Example. Irs form 1040ez tax tables You are blind. Irs form 1040ez tax tables You must use a reader to do your work. Irs form 1040ez tax tables You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. Irs form 1040ez tax tables The reader's services are only for your work. Irs form 1040ez tax tables You can deduct your expenses for the reader as impairment-related work expenses. Irs form 1040ez tax tables Self-employed. Irs form 1040ez tax tables   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Irs form 1040ez tax tables See Impairment-related work expenses. Irs form 1040ez tax tables , later under How To Report. Irs form 1040ez tax tables Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. Irs form 1040ez tax tables S. Irs form 1040ez tax tables trade or business). Irs form 1040ez tax tables It is not subject to the passive activity limitations. Irs form 1040ez tax tables Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. Irs form 1040ez tax tables See Publication 463 for more information. Irs form 1040ez tax tables Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. Irs form 1040ez tax tables If you are an employee, complete Form 2106 or Form 2106-EZ. Irs form 1040ez tax tables See Publication 463 for more information. Irs form 1040ez tax tables Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. Irs form 1040ez tax tables You figure the deductible loss in Section B of Form 4684. Irs form 1040ez tax tables However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. Irs form 1040ez tax tables Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Irs form 1040ez tax tables You do not need to complete Appendix A. Irs form 1040ez tax tables See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. Irs form 1040ez tax tables Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. Irs form 1040ez tax tables See Repayments in Publication 525 for more information. Irs form 1040ez tax tables Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Irs form 1040ez tax tables If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Irs form 1040ez tax tables See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. Irs form 1040ez tax tables Nondeductible Expenses You cannot deduct the following expenses. Irs form 1040ez tax tables List of Nondeductible Expenses Adoption expenses. Irs form 1040ez tax tables Broker's commissions. Irs form 1040ez tax tables Burial or funeral expenses, including the cost of a cemetery lot. Irs form 1040ez tax tables Campaign expenses. Irs form 1040ez tax tables Capital expenses. Irs form 1040ez tax tables Check-writing fees. Irs form 1040ez tax tables Club dues. Irs form 1040ez tax tables Commuting expenses. Irs form 1040ez tax tables Fees and licenses, such as car licenses, marriage licenses, and dog tags. Irs form 1040ez tax tables Fines and penalties, such as parking tickets. Irs form 1040ez tax tables Health spa expenses. Irs form 1040ez tax tables Hobby losses—but see Hobby Expenses, earlier. Irs form 1040ez tax tables Home repairs, insurance, and rent. Irs form 1040ez tax tables Home security system. Irs form 1040ez tax tables Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. Irs form 1040ez tax tables Investment-related seminars. Irs form 1040ez tax tables Life insurance premiums paid by the insured. Irs form 1040ez tax tables Lobbying expenses. Irs form 1040ez tax tables Losses from the sale of your home, furniture, personal car, etc. Irs form 1040ez tax tables Lost or misplaced cash or property. Irs form 1040ez tax tables Lunches with co-workers. Irs form 1040ez tax tables Meals while working late. Irs form 1040ez tax tables Medical expenses as business expenses other than medical examinations required by your employer. Irs form 1040ez tax tables Personal disability insurance premiums. Irs form 1040ez tax tables Personal legal expenses. Irs form 1040ez tax tables Personal, living, or family expenses. Irs form 1040ez tax tables Political contributions. Irs form 1040ez tax tables Professional accreditation fees. Irs form 1040ez tax tables Professional reputation, expenses to improve. Irs form 1040ez tax tables Relief fund contributions. Irs form 1040ez tax tables Residential telephone line. Irs form 1040ez tax tables Stockholders' meeting, expenses of attending. Irs form 1040ez tax tables Tax-exempt income, expenses of earning or collecting. Irs form 1040ez tax tables The value of wages never received or lost vacation time. Irs form 1040ez tax tables Travel expenses for another individual. Irs form 1040ez tax tables Voluntary unemployment benefit fund contributions. Irs form 1040ez tax tables Wristwatches. Irs form 1040ez tax tables Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. Irs form 1040ez tax tables For details, see Form 8839, Qualified Adoption Expenses. Irs form 1040ez tax tables Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. Irs form 1040ez tax tables Instead, these fees must be added to the taxpayer's cost of the securities. Irs form 1040ez tax tables Commissions paid on the sale are deductible as business expenses only by dealers. Irs form 1040ez tax tables Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Irs form 1040ez tax tables These include qualification and registration fees for primary elections. Irs form 1040ez tax tables Legal fees. Irs form 1040ez tax tables   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Irs form 1040ez tax tables Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. Irs form 1040ez tax tables If you use such property in your work, you may be able to take a depreciation deduction. Irs form 1040ez tax tables See Publication 946. Irs form 1040ez tax tables If the property is a car used in your work, also see Publication 463. Irs form 1040ez tax tables Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Irs form 1040ez tax tables Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Irs form 1040ez tax tables This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Irs form 1040ez tax tables You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Irs form 1040ez tax tables Dues paid to airline, hotel, and luncheon clubs are not deductible. Irs form 1040ez tax tables Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Irs form 1040ez tax tables If you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items. Irs form 1040ez tax tables Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Irs form 1040ez tax tables This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Irs form 1040ez tax tables Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Irs form 1040ez tax tables Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Irs form 1040ez tax tables Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Irs form 1040ez tax tables However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Irs form 1040ez tax tables See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. Irs form 1040ez tax tables Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Irs form 1040ez tax tables Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Irs form 1040ez tax tables You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Irs form 1040ez tax tables See Publication 504, Divorced or Separated Individuals, for information on alimony. Irs form 1040ez tax tables Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Irs form 1040ez tax tables These include expenses to: Influence legislation, Participate, or intervene, in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Irs form 1040ez tax tables Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Irs form 1040ez tax tables Covered executive branch official. Irs form 1040ez tax tables   A covered executive branch official, for the purpose of (4) above, is any of the following officials. Irs form 1040ez tax tables The President. Irs form 1040ez tax tables The Vice President. Irs form 1040ez tax tables Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. Irs form 1040ez tax tables Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. Irs form 1040ez tax tables Dues used for lobbying. Irs form 1040ez tax tables   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Irs form 1040ez tax tables Exceptions. Irs form 1040ez tax tables   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. Irs form 1040ez tax tables You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). Irs form 1040ez tax tables An Indian tribal government is considered a local council or similar governing body. Irs form 1040ez tax tables You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). Irs form 1040ez tax tables If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Irs form 1040ez tax tables Payments by the other person to you for lobbying activities cannot be deducted. Irs form 1040ez tax tables Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Irs form 1040ez tax tables However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Irs form 1040ez tax tables See Publication 547. Irs form 1040ez tax tables Example. Irs form 1040ez tax tables A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Irs form 1040ez tax tables The diamond falls from the ring and is never found. Irs form 1040ez tax tables The loss of the diamond is a casualty. Irs form 1040ez tax tables Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Irs form 1040ez tax tables See Publication 463 for information on deductible expenses while traveling away from home. Irs form 1040ez tax tables Meals While Working Late You cannot deduct the cost of meals while working late. Irs form 1040ez tax tables However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. Irs form 1040ez tax tables See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. Irs form 1040ez tax tables Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Irs form 1040ez tax tables Custody of children. Irs form 1040ez tax tables Breach of promise to marry suit. Irs form 1040ez tax tables Civil or criminal charges resulting from a personal relationship. Irs form 1040ez tax tables Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). Irs form 1040ez tax tables For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. Irs form 1040ez tax tables Preparation of a title (or defense or perfection of a title). Irs form 1040ez tax tables Preparation of a will. Irs form 1040ez tax tables Property claims or property settlement in a divorce. Irs form 1040ez tax tables You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Irs form 1040ez tax tables Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Irs form 1040ez tax tables Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Irs form 1040ez tax tables Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Irs form 1040ez tax tables Accounting certificate fees paid for the initial right to practice accounting. Irs form 1040ez tax tables Bar exam fees and incidental expenses in securing initial admission to the bar. Irs form 1040ez tax tables Medical and dental license fees paid to get initial licensing. Irs form 1040ez tax tables Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Irs form 1040ez tax tables Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Irs form 1040ez tax tables Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Irs form 1040ez tax tables Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Irs form 1040ez tax tables You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Irs form 1040ez tax tables Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Irs form 1040ez tax tables You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. Irs form 1040ez tax tables If you have expenses to p
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The Irs Form 1040ez Tax Tables

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