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Nm Taxation And Revenue

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Nm Taxation And Revenue

Nm taxation and revenue Index Symbols (ITIN), Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). Nm taxation and revenue 10% tax for early withdrawal from IRA or retirement plan (see Early withdrawal from deferred interest account, subheading: Tax on) 10-year tax option, 10-Year Tax Option 401(k) plans Tax treatment of contributions, Elective deferrals. Nm taxation and revenue 403(b) plans Rollovers, Rollovers, Rollover From Employer's Plan Into an IRA, Rollover from a qualified retirement plan into a Roth IRA. Nm taxation and revenue 457 plans (see Section 457 deferred compensation plans) 529 plans (see Qualified tuition programs) 59 rule, Age 59½ rule. Nm taxation and revenue 60 day rule, Time limit for making a rollover contribution. Nm taxation and revenue 70 rule, Age 70½ rule. Nm taxation and revenue , Nonresident alien spouse. Nm taxation and revenue A Abandonment of home, Abandonment. Nm taxation and revenue Abortion Deductibility as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Abroad, citizens traveling or working, Employees of foreign governments or international organizations. Nm taxation and revenue , Foreign Employer, Travel Outside the United States, Travel Primarily for Business (see also Citizens outside U. Nm taxation and revenue S. Nm taxation and revenue ) (see also Foreign employment) Absence, temporary, Temporary absences. Nm taxation and revenue , Temporary absences. Nm taxation and revenue Accelerated death benefits, Accelerated Death Benefits, Exclusion for terminal illness. Nm taxation and revenue Accident insurance, Accident or Health Plan Cafeteria plans, Cafeteria plans. Nm taxation and revenue Long-term care, Long-term care coverage. Nm taxation and revenue , Long-Term Care Insurance Contracts Accidental death benefits, Accidental death benefits. Nm taxation and revenue Accidents, car, Deductible losses. Nm taxation and revenue Value determination, Car value. Nm taxation and revenue Willful negligence or intentional act as cause, Nondeductible losses. Nm taxation and revenue Accountable plans for employee reimbursements, Accountable Plans, Related to employer. Nm taxation and revenue Accountants Basis to include fees of, Cost Basis CPA review courses, Bar or CPA Review Course Accounting methods, Accounting Methods Accrual method (see Accrual method taxpayers) Cash method (see Cash method taxpayers) Change of Depreciation, to deduct unclaimed amount, Changing your accounting method to deduct unclaimed depreciation. Nm taxation and revenue Accounting periods, Accounting Periods Calendar year, When Do I Have To File?, Accounting Periods, Accounting period. Nm taxation and revenue Change in, standard deduction not allowed, Persons not eligible for the standard deduction. Nm taxation and revenue Fiscal year, Accounting Periods, Fiscal year taxpayers. Nm taxation and revenue , Fiscal Years Fringe benefits, Accounting period. Nm taxation and revenue Accrual method taxpayers, Accrual method. Nm taxation and revenue Taxes paid during tax year, deduction of, You must pay the tax during your tax year. Nm taxation and revenue Accumulation distribution of trusts Tax on, Other taxes. Nm taxation and revenue Accuracy-related penalties, Accuracy-related penalty. Nm taxation and revenue Acknowledgment, Acknowledgment. Nm taxation and revenue Activities not for profit, Activity not for profit. Nm taxation and revenue Address, Name and Address Change of, Change of Address Foreign, Foreign address. Nm taxation and revenue P. Nm taxation and revenue O. Nm taxation and revenue box, P. Nm taxation and revenue O. Nm taxation and revenue box. Nm taxation and revenue Address, filing, Where To File Adjusted basis, Adjusted Basis, Postponed gain from sale of home. Nm taxation and revenue Decreases to basis, Decreases to Basis Depreciation, Depreciation and section 179 deduction. Nm taxation and revenue Easements, Easements. Nm taxation and revenue Energy conservation subsidies exclusion, Exclusion of subsidies for energy conservation measures. Nm taxation and revenue Gifts, Property Received as a Gift Home sale (see Sale of home) Improvements, Improvements. Nm taxation and revenue Increases to basis, Increases to Basis Local assessments, Assessments for local improvements. Nm taxation and revenue Sales of property, Adjusted basis. Nm taxation and revenue Section 179 deduction, Depreciation and section 179 deduction. Nm taxation and revenue Adjusted gross income (AGI) Medical and dental expenses and limit of deduction, How Much of the Expenses Can You Deduct?, What Tax Form Do You Use? Retirement savings contribution credit, Special Rules Adjustments, Adjustments and tax preference items. Nm taxation and revenue Administrators, estate (see Executors and administrators) Adopted child, Exception for adopted child. Nm taxation and revenue , Adopted child. Nm taxation and revenue , Adopted child. Nm taxation and revenue , Taxpayer identification numbers for adoptees. Nm taxation and revenue Earned income credit, Adopted child. Nm taxation and revenue Adoption, Adoption Credit, Child with special needs. Nm taxation and revenue ATIN, Adoption taxpayer identification number (ATIN). Nm taxation and revenue , Adoption taxpayer identification number (ATIN). Nm taxation and revenue Child tax credit, Adopted child. Nm taxation and revenue (see also Child tax credit) Credits, Personal Expenses Married filing separately, Special Rules Taking, When to take the credit. Nm taxation and revenue Employer assistance, Adoption Assistance Exception for adopted child, Exception for adopted child. Nm taxation and revenue Exemption for child, Personal Expenses Expenses not deductible Foster care prior to, no charitable deduction, Foster parents. Nm taxation and revenue No charitable deduction for, Personal Expenses Foreign child, Foreign child. Nm taxation and revenue Medical and dental expenses of adopted child, Qualifying Child Taxpayer identification number, Adoption taxpayer identification number (ATIN). Nm taxation and revenue , Taxpayer identification numbers for aliens. Nm taxation and revenue Taxpayer identification numbers (TINs), Adoption taxpayer identification number (ATIN). Nm taxation and revenue Age Children's investments (see Children, subheading: Investment income of child under age 18) Form 1040EZ, taxpayer under 65 may use, You can use Form 1040EZ if all of the following apply. Nm taxation and revenue Gross income and filing requirements (Table 1-1), Introduction IRAs Contribution cutoff at age 70, Age 70½ rule. Nm taxation and revenue Distribution prior to age 59, Age 59½ rule. Nm taxation and revenue Distribution required at age 70, IRA owners. Nm taxation and revenue , Excess Accumulations (Insufficient Distributions) Pension distributions required at age 70, Age 70½. Nm taxation and revenue Retirement plan recipients over age 75, Who must use the General Rule. Nm taxation and revenue Roth IRAs, Is there an age limit for contributions?, Must you withdraw or use Roth IRA assets? Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Age test, Age Test (see Qualifying child) Agents, Losses on sales or trades of property. Nm taxation and revenue (see also Fiduciaries) Income paid to, Payment to an agent. Nm taxation and revenue Signing return, When someone can sign for you. Nm taxation and revenue AGI (see Adjusted gross income (AGI)) Agricultural workers (see Farmers) (see Farmworkers) Agriculture (see Farming) Aircraft Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. Nm taxation and revenue Airline club dues Not entertainment expenses, Club dues and membership fees. Nm taxation and revenue Airplanes, donations of, Cars, boats, and airplanes. Nm taxation and revenue Airport transportation Business-related travel expense, Table 26-1. Nm taxation and revenue Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Nm taxation and revenue Alaska Standard meal allowance, Standard meal allowance for areas outside the continental United States. Nm taxation and revenue Alaska Permanent Fund dividends, Alaska Permanent Fund dividend. Nm taxation and revenue Child's dividends, Child's Alaska Permanent Fund dividends. Nm taxation and revenue Income from, You can use Form 1040EZ if all of the following apply. Nm taxation and revenue , You can use Form 1040A if all of the following apply. Nm taxation and revenue , Alaska Permanent Fund dividends. Nm taxation and revenue Investment income not to include, Investment income. Nm taxation and revenue Alaska Unemployment Compensation Fund, Contributions to state benefit funds. Nm taxation and revenue Alcohol rehabilitation centers Deductibility of medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Alcoholic beverages IRA prohibited transactions in, Collectibles. Nm taxation and revenue Aliens, Individual taxpayer identification number (ITIN) for aliens. Nm taxation and revenue , Not earned income. Nm taxation and revenue Dual-status (see Dual-status taxpayers) Filing required, Aliens Nonresident (see Nonresident aliens) Resident (see Resident aliens) Alimony, Alimony, Introduction, Spouse or former spouse. Nm taxation and revenue , Payments not alimony. Nm taxation and revenue , Payments to a third party. Nm taxation and revenue , Life insurance premiums. Nm taxation and revenue , Payments for jointly-owned home. Nm taxation and revenue , Mortgage payments. Nm taxation and revenue , Taxes and insurance. Nm taxation and revenue , Other payments to a third party. Nm taxation and revenue , Instruments Executed After 1984, Exception for instruments executed before 1985. Nm taxation and revenue , Alimony requirements. Nm taxation and revenue , Cash payment requirement. Nm taxation and revenue , Payments to a third party. Nm taxation and revenue , Payments designated as not alimony. Nm taxation and revenue , Spouses cannot be members of the same household. Nm taxation and revenue , Liability for payments after death of recipient spouse. Nm taxation and revenue , Substitute payments. Nm taxation and revenue , How To Deduct Alimony Paid, How To Report Alimony Received, Recapture Rule, Including the recapture in income. Nm taxation and revenue , Deducting the recapture. Nm taxation and revenue Definition of, Introduction Mortgage payments Interest deduction, Divorced or separated individuals. Nm taxation and revenue Reporting of income, Alimony. Nm taxation and revenue Alternative filing methods Electronic (see E-file ) Alternative minimum tax (AMT), Alternative Minimum Tax (AMT) Child's tax, figuring of, Alternative minimum tax. Nm taxation and revenue Exempt-interest dividends, Alternative minimum tax treatment. Nm taxation and revenue Filing requirements (Table 1-3), Figuring tax. Nm taxation and revenue Incentive stock option, You can use Form 1040A if all of the following apply. Nm taxation and revenue Nonrefundable credit for prior year tax, Nonrefundable Credit for Prior Year Minimum Tax Alternative motor vehicle credit, Alternative Motor Vehicle Credit, Amount of credit. Nm taxation and revenue Ambulance service personnel Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty Amended returns, Amended Returns and Claims for Refund, Form 1040X. Nm taxation and revenue , Filing Form 1040X. Nm taxation and revenue (see also Form 1040X) Itemized deduction, change to standard deduction, Changing your mind. Nm taxation and revenue Standard deduction, change to itemized deductions, Changing your mind. Nm taxation and revenue American citizens abroad, U. Nm taxation and revenue S. Nm taxation and revenue Citizens and Resident Aliens Living Abroad (see also Citizens outside U. Nm taxation and revenue S. Nm taxation and revenue ) Employment (see Foreign employment) American Indians (see Indians) American opportunity credit Tuition deduction and, Who Cannot Claim the Deduction American Samoa Income from, Individuals With Income From U. Nm taxation and revenue S. Nm taxation and revenue Possessions Amortization Bond premiums, treatment of, Amortization of bond premium. Nm taxation and revenue AMT (see Alternative minimum tax (AMT)) Annuities, Rollovers (see also Rollovers) Cost computation, Cost (Investment in the Contract) Decedent's unrecovered investment in, Form W-2. Nm taxation and revenue Early distributions from, Tax on Early Distributions Deferred annuity contracts, 5% rate on certain early distributions from deferred annuity contracts. Nm taxation and revenue , Additional exceptions for nonqualified annuity contracts. Nm taxation and revenue Estimated tax, Withholding and estimated tax. Nm taxation and revenue Exclusion limit, Exclusion limit. Nm taxation and revenue General Rule Annuity starting before November 19, 1996, Annuity starting before November 19, 1996. Nm taxation and revenue Nonqualified plans and qualified plans for recipients over 75 years, Who must use the General Rule. Nm taxation and revenue Purchased annuities, Purchased annuities. Nm taxation and revenue Survivor's annuity, Survivors of retirees. Nm taxation and revenue Guaranteed payments, Guaranteed payments. Nm taxation and revenue IRAs as, Kinds of traditional IRAs. Nm taxation and revenue Joint return, Joint return. Nm taxation and revenue Loans from plan, Loans. Nm taxation and revenue Lump-sum distributions, Lump-Sum Distributions Multiple plan benefits, More than one program. Nm taxation and revenue , More than one annuity. Nm taxation and revenue Partly taxable payments, Partly taxable payments. Nm taxation and revenue Purchased annuities, Purchased annuities. Nm taxation and revenue Reporting of, How To Report Retirement annuities, Retirement Plans, Pensions, and Annuities (see also Retirement plans) Rollovers, Rollovers Sale of, Sale of Annuity Gain as ordinary income, Tax-free exchange. Nm taxation and revenue Simplified method to calculate tax-free part of annuity payment, Simplified Method Survivor's annuity, Survivors of retirees. Nm taxation and revenue Worksheet for computation, How to use the Simplified Method. Nm taxation and revenue Survivor annuities, Survivors and Beneficiaries Trade of insurance policies and annuities, Insurance policies and annuities. Nm taxation and revenue Unrecovered investment, Unrecovered Investment in Annuity Withholding, Form W-2. Nm taxation and revenue , Pensions and Annuities, Withholding and estimated tax. Nm taxation and revenue Annulled marriages Filing status, Annulled marriages. Nm taxation and revenue Anthrax incidents (see Terrorist attacks) Antiques (see Collectibles) Appliances Deterioration and damage, not casualty loss, Progressive deterioration. Nm taxation and revenue Appraisal fees, Appraisal Fees Donated property, Appraisal Fees Not deductible as interest, Amounts charged for services. Nm taxation and revenue Real estate transactions, when required by lender, Settlement costs. Nm taxation and revenue Appraisals Casualty or theft losses, Appraisal. Nm taxation and revenue , Costs of photographs and appraisals. Nm taxation and revenue Archer MSAs, Medical savings accounts (MSAs). Nm taxation and revenue Contributions, Archer MSA contributions. Nm taxation and revenue Medical expenses paid for decedent from, Decedent Not deductible as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Armed forces, Types of Qualified Organizations, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Armed Forces reservists. Nm taxation and revenue (see also Reservists) (see also Veterans' organizations) Combat zone Extension to file return, Individuals Serving in Combat Zone Signing return for spouse, Spouse in combat zone. Nm taxation and revenue Dependency allotments, Armed Forces dependency allotments. Nm taxation and revenue Disability pay, Disability. Nm taxation and revenue Disability pensions, Military and Government Disability Pensions GI Bill benefits, Tuition payments and allowances under the GI Bill. Nm taxation and revenue Military, Military uniforms. Nm taxation and revenue Military quarters allotments, Tax-exempt military quarters allowances. Nm taxation and revenue Naval officers on permanent duty aboard ship, Members of the Armed Forces. Nm taxation and revenue Permanent duty overseas, Members of the Armed Forces. Nm taxation and revenue Real estate taxes when receiving housing allowance, Ministers' and military housing allowances. Nm taxation and revenue , Ministers' and military housing allowance. Nm taxation and revenue Rehabilitative program payments, Veterans' benefits. Nm taxation and revenue Reserves, Armed Forces reservists traveling more than 100 miles from home. Nm taxation and revenue Retirees' pay Taxable income, Military retirement pay. Nm taxation and revenue Uniforms, Military uniforms. Nm taxation and revenue Wages, Military Armed Forces Retiree's pay withholding, Military retirees. Nm taxation and revenue Art works As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc. Nm taxation and revenue Capital gains or losses from sale or trade of, Investment interest deducted. Nm taxation and revenue Artists, performing (see Performing artists) Assessments, local (see Local assessments) Assistance (see Tax help) Assistance, tax (see Tax help) Assumption of mortgage, Assumption of mortgage. Nm taxation and revenue Fees not included in basis, Settlement costs. Nm taxation and revenue At-risk rules Rental property, At-Risk Rules Athletic events Charitable contributions, amount deductible, Athletic events. Nm taxation and revenue ATIN (Adoption taxpayer identification number), Adoption taxpayer identification number (ATIN). Nm taxation and revenue Attachment of wages, Garnisheed wages. Nm taxation and revenue Attachments to return, Attachments Attorneys Bar review courses, Bar or CPA Review Course Attorneys' fees, Legal Expenses, Personal Legal Expenses Basis to include, Cost Basis Social security and railroad retirement benefits, deductions for, Legal expenses. Nm taxation and revenue Title to property, for preparation, filing, etc. Nm taxation and revenue , Settlement costs. Nm taxation and revenue Audits Travel expense records, If your return is examined. Nm taxation and revenue Auto insurance Medical expenses covered by, not deductible, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Automatic extension of time to file, Automatic Extension, When to file. Nm taxation and revenue Form 4868, E-file options. Nm taxation and revenue Automatic investment services Holding period, determination of, Automatic investment service. Nm taxation and revenue Awards (see Prizes and awards) Away-from-home travel (see Travel and transportation expenses) B Babysitting, Babysitting. Nm taxation and revenue Back pay, award for, Back pay awards. Nm taxation and revenue Emotional distress damages under title VII of Civil Rights Act of 1964, Court awards and damages. Nm taxation and revenue Backup withholding, Backup Withholding, Backup withholding. Nm taxation and revenue , Backup withholding. Nm taxation and revenue Dividend income, Backup withholding. Nm taxation and revenue , Reporting tax withheld. Nm taxation and revenue Penalties, Penalties. Nm taxation and revenue Bad debts Bank deposit, loss due to bank's insolvency or bankruptcy, Nonbusiness bad debt. Nm taxation and revenue Reporting on Schedule D (Form 1040), How to report. Nm taxation and revenue Claim for refund, Exceptions for special types of refunds. Nm taxation and revenue , Filing a claim for refund. Nm taxation and revenue Nonbusiness, Nonbusiness Bad Debts Recovery, Recoveries Reporting of, How to report bad debts. Nm taxation and revenue Short-term capital loss, How to report bad debts. Nm taxation and revenue When deductible, When deductible. Nm taxation and revenue Baggage Business-related travel expense, Table 26-1. Nm taxation and revenue Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Nm taxation and revenue Balance due, Refund or balance due. Nm taxation and revenue Bankruptcy Canceled debt not deemed to be income, Excluded debt. Nm taxation and revenue Financial institution's bankruptcy causing deductible loss, Loss on Deposits Reporting of, Loss on deposits. Nm taxation and revenue Banks Automatic investment service, determination of holding period, Automatic investment service. Nm taxation and revenue IRAs with, When and How Can a Traditional IRA Be Opened? Losses on deposits, when casualty losses, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits Reporting of, Loss on deposits. Nm taxation and revenue Money market accounts, Money Market Funds Bar associations Charitable contributions to, Contributions to Nonqualified Organizations Bar employees Tips (see Tip income) Bar review courses, Bar or CPA Review Course Bargain sales As charitable contributions, Bargain sales. Nm taxation and revenue Basis of purchase, Bargain purchases. Nm taxation and revenue Barter income, Bartering Definition of bartering, Bartering Form 1099-B, Form 1099-B from barter exchange. Nm taxation and revenue Basis Adjusted basis, Adjusted Basis Allocation between business and personal use, Introduction Bad debts, Basis in bad debt required. Nm taxation and revenue Bargain purchases, Bargain purchases. Nm taxation and revenue Bonds, Stocks and Bonds, Bond premium. Nm taxation and revenue Cost basis, Useful Items - You may want to see: IRAs for nondeductible contributions, Cost basis. Nm taxation and revenue , Partly taxable. Nm taxation and revenue Definition of, Introduction Gifts, Property Received as a Gift Home sales (see Sale of home) Improvements to real estate, Improvements. Nm taxation and revenue Involuntary conversion, Involuntary Conversions Like-kind exchanges, Basis of property received. Nm taxation and revenue Other than cost, Basis Other Than Cost, Tax-exempt obligations. Nm taxation and revenue , No gain or loss. Nm taxation and revenue Points not to be included, Settlement costs. Nm taxation and revenue , Points. Nm taxation and revenue Property received for services, Property Received for Services Real estate, Real Property Restricted property, Restricted property. Nm taxation and revenue Stock or stock rights, Basis. Nm taxation and revenue Tax-exempt obligations Bonds, Tax-exempt obligations. Nm taxation and revenue Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses Beetles Damage or destruction to trees and plants, when casualty loss, Progressive deterioration. Nm taxation and revenue Beneficiaries, Beneficiary of an estate or trust. Nm taxation and revenue , Rollover by surviving spouse. Nm taxation and revenue , Estate and trust income. Nm taxation and revenue , Losses. Nm taxation and revenue (see also Estate beneficiaries) (see also Trust beneficiaries) Bequests, Estate and trust income. Nm taxation and revenue , Losses. Nm taxation and revenue , Gifts and inheritances. Nm taxation and revenue , Income from property received as a gift. Nm taxation and revenue (see also Estate beneficiaries) (see also Gifts) (see also Inheritance) Bicycle Fringe benefit, Qualified bicycle commuting. Nm taxation and revenue Bingo, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Contributions From Which You Benefit Birth control pills, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Birth of child, Death or birth of child. Nm taxation and revenue Head of household, qualifying person to file as, Death or birth. Nm taxation and revenue , Death or birth. Nm taxation and revenue Social security number to be obtained, Born and died in 2013. Nm taxation and revenue Birth of dependent, Death or birth. Nm taxation and revenue Blackmail Losses due to, Theft Blind persons Exemption from withholding, Age 65 or older or blind. Nm taxation and revenue Guide dogs, deductible as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Impairment-related work expenses, deduction for, Impairment-Related Work Expenses Standard deduction for, Introduction, Higher Standard Deduction for Blindness Blood banks No charitable deduction for blood donations to, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Value of Time or Services Blue books to determine fair market value, Cars, boats, and airplanes. Nm taxation and revenue Boats Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. Nm taxation and revenue Donations of, Cars, boats, and airplanes. Nm taxation and revenue Body scan, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Bona fide business purpose Travel expenses, Bona fide business purpose. Nm taxation and revenue Work-related education, Qualifying Work-Related Education Bonds Adjusted basis for, Stocks and Bonds Amortization of premium, Amortization of bond premium. Nm taxation and revenue , Amortizable Premium on Taxable Bonds As capital assets, Capital Assets and Noncapital Assets, Stocks, stock rights, and bonds. Nm taxation and revenue Convertible bonds, Convertible stocks and bonds. Nm taxation and revenue Discounted Capital gain or loss, Discounted Debt Instruments Issued at discount, Original Issue Discount (OID) Market discount bonds, Market discount bonds. Nm taxation and revenue Original issue discount, Original Issue Discount (OID) Redemption of, Redemption or retirement of bonds. Nm taxation and revenue Retirement of, Retirement bonds. Nm taxation and revenue , Redemption or retirement of bonds. Nm taxation and revenue Sale of, Bonds Sold Between Interest Dates Savings, U. Nm taxation and revenue S. Nm taxation and revenue Savings Bonds, Series HH bonds. Nm taxation and revenue , Series EE and series I bonds. Nm taxation and revenue Sold at premium, computation of adjusted basis, Bond premium. Nm taxation and revenue State or local government, tax-exempt, Tax-exempt state and local government bonds. Nm taxation and revenue Tax-exempt, State or Local Government Obligations Bonuses, Supplemental Wages, Bonuses and awards. Nm taxation and revenue , Employee awards or bonuses. Nm taxation and revenue Bookkeeping (see Recordkeeping requirements) Books to determine fair market value, Car value. Nm taxation and revenue Borrowed funds, Loans. Nm taxation and revenue , Items You Cannot Deduct (see also Loans) Used for charitable contributions, deduction for, Borrowed funds. Nm taxation and revenue Bottled water, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Boy Scouts Charitable contributions to, Examples. Nm taxation and revenue , Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check Braille books, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Breach of contract Damages as income, Court awards and damages. Nm taxation and revenue employment, Damages for Breach of Employment Contract Breast pump and supplies, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Bribes, Bribes. Nm taxation and revenue , List of Nondeductible Expenses Brokers Form 1099-B, Sales and Trades IRAs with, When and How Can a Traditional IRA Be Opened? Commissions, Brokers' commissions. Nm taxation and revenue , Brokers' commissions. Nm taxation and revenue Receiving dividends, reporting on Form 1099-MISC, Form 1099-MISC. Nm taxation and revenue Burglary Losses due to, Theft Burial expenses, List of Nondeductible Expenses (see Funerals) Business associates, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. Nm taxation and revenue Business expenses, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Job search expenses, Job interview expenses. Nm taxation and revenue Meal expenses (see Meal and lodging expenses) Reimbursements, Expense allowances. Nm taxation and revenue , Allowances and reimbursements. Nm taxation and revenue Returning excess for business expenses, Returning Excess Reimbursements Returning excess business expenses, Expense allowances. Nm taxation and revenue Travel (see Travel and transportation expenses) Work-related education, What Expenses Can Be Deducted Business organizations Charitable contributions to, Contributions to Nonqualified Organizations Business property As gift, adjusted basis for, Business property. Nm taxation and revenue Basis for depreciation, Basis for depreciation. Nm taxation and revenue Property use changed to, adjusted basis for, Property Changed From Personal to Business or Rental Use Sales or exchanges Like-kind exchanges, Like-kind exchanges. Nm taxation and revenue Business tax credits Claim for refund, Exceptions for special types of refunds. Nm taxation and revenue Business use of home, Home Office C Cafeteria plans, Cafeteria plans. Nm taxation and revenue Calendar year taxpayers Accounting periods, When Do I Have To File?, Accounting Periods, Accounting period. Nm taxation and revenue Filing due date, When Do I Have To File? California Nonoccupational Disability Benefit Fund, Contributions to state benefit funds. Nm taxation and revenue Campaign contributions, Campaign contributions. Nm taxation and revenue , Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Presidential Election Campaign Fund, Presidential Election Campaign Fund Campaign expenses, Campaign Expenses Canada Resident of, Citizen or Resident Test, Child in Canada or Mexico. Nm taxation and revenue Cancellation of debt, Canceled Debts Exceptions to treatment as income, Exceptions Candidates for public office Contributions to, no charitable deduction for, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Capital assets Coal and iron ore, Coal and iron ore. Nm taxation and revenue Definition of, Capital Assets and Noncapital Assets Capital expenses, Capital expenses. Nm taxation and revenue Capital gains or losses, Capital Gains and Losses, How to report and postpone gain. Nm taxation and revenue , Reporting Gains and Losses Bad debts as short-term capital loss, How to report bad debts. Nm taxation and revenue Carryover of, Long-term gains and losses. Nm taxation and revenue , Capital loss carryover. Nm taxation and revenue Worksheet, Figuring your carryover. Nm taxation and revenue Character of gain, Capital Gains and Losses Character of loss, Capital Gains and Losses Child's distributions and dividends, reporting of, Child's capital gain distributions. Nm taxation and revenue , Capital gain distributions and qualified dividends. Nm taxation and revenue Collectibles, Investment interest deducted. Nm taxation and revenue Deductions, Capital Losses Limit on, Limit on deduction. Nm taxation and revenue Distributions, Money Market Funds Form 1040 or 1040A to be used, You can use Form 1040A if all of the following apply. Nm taxation and revenue , How To Report Dividend Income Form 8949, Reporting Gains and Losses Hobbies, sales from collections, Hobby losses. Nm taxation and revenue Holding period, determination of, Holding Period How to report, Reporting Capital Gains and Losses Installment sales and, Installment sales. Nm taxation and revenue Lump-sum distributions from pensions and annuities, Capital Gain Treatment Mutual funds paying, Capital Gain Distributions Net capital gain, Capital Gains and Losses, Long-term gains and losses. Nm taxation and revenue , Capital Gain Tax Rates Included as investment income, Choosing to include net capital gain. Nm taxation and revenue Net long-term capital loss, Long-term gains and losses. Nm taxation and revenue Sale of personal items, Sale of personal items. Nm taxation and revenue Sale or trade of property held more than 1 year, Long-term or short-term. Nm taxation and revenue , Long-term gains and losses. Nm taxation and revenue Schedule D, Reporting Gains and Losses , Reporting Capital Gains and Losses Section 1250 gains from sale of real property, Capital Gains and Losses, Unrecaptured section 1250 gain. Nm taxation and revenue State or local government bonds, tax-exempt, Tax-exempt state and local government bonds. Nm taxation and revenue Tax rates, Capital Gain Tax Rates Total net gain, Total net gain or loss. Nm taxation and revenue Total net loss, Total net gain or loss. Nm taxation and revenue Undistributed gains, Long-term gains and losses. Nm taxation and revenue Credit for tax on, Undistributed capital gains of mutual funds and REITs. Nm taxation and revenue , Credit for Tax on Undistributed Capital Gain Car expenses, Car expenses. Nm taxation and revenue Car pools, Car pools. Nm taxation and revenue , Car pools. Nm taxation and revenue Carrybacks Business tax credit carrybacks, Exceptions for special types of refunds. Nm taxation and revenue Carryovers Capital loss, Long-term gains and losses. Nm taxation and revenue , Capital loss carryover. Nm taxation and revenue Worksheet, Figuring your carryover. Nm taxation and revenue Investment interest, Limit on Deduction Cars, Transportation, Transporting school children. Nm taxation and revenue , Car Expenses and Other Employee Business Expenses, Car Expenses (see also Standard mileage rates) (see also Travel and transportation) Accidents resulting in casualty loss, Deductible losses. Nm taxation and revenue Value determination, Car value. Nm taxation and revenue Willful negligence or intentional act as cause, Nondeductible losses. Nm taxation and revenue Actual expenses, Car Expenses, Actual Car Expenses Advertising displays on, Advertising display on car. Nm taxation and revenue Allowances from employers, Per Diem and Car Allowances As capital assets, Capital Assets and Noncapital Assets Blue book to determine fair market value, Cars, boats, and airplanes. Nm taxation and revenue Books to determine fair market value, Car value. Nm taxation and revenue Business and personal use, allocation between, Business and personal use. Nm taxation and revenue , Separating expenses. Nm taxation and revenue Business-related travel expenses, Table 26-1. Nm taxation and revenue Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Nm taxation and revenue Car pools, Car pools. Nm taxation and revenue Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. Nm taxation and revenue Charitable organization service, use for, Car expenses. Nm taxation and revenue Depreciation, Depreciation and section 179 deductions. Nm taxation and revenue Donations of, Cars, boats, and airplanes. Nm taxation and revenue Fixed and variable rate (FAVR), Fixed and variable rate (FAVR). Nm taxation and revenue Form 2106 or 2106-EZ, how to fill out, Car expenses. Nm taxation and revenue Hauling tools or instruments, Hauling tools or instruments. Nm taxation and revenue Interest on loans, not deductible, Personal Interest Leased vehicles, Leasing a car. Nm taxation and revenue Medical transportation, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue , Transportation, Car expenses. Nm taxation and revenue Parking (see Parking fees) Personal property taxes on, deduction of, Personal Property Taxes Reporting of, How To Report Table 26-3 showing forms to be used, Per diem allowance more than federal rate. Nm taxation and revenue Sale, trade-in, or other disposition, Sale, Trade-In, or Other Disposition Section 179 deductions, Depreciation and section 179 deductions. Nm taxation and revenue Work-related education, transportation for, Using your car. Nm taxation and revenue Cash Dividends paid as, Introduction Rebates, Cash rebates. Nm taxation and revenue Sales of property for, Payment of cash. Nm taxation and revenue Cash contributions, records to keep, Cash Contributions Cash method taxpayers, Cash method. Nm taxation and revenue Bad debts, Basis in bad debt required. Nm taxation and revenue Points, deduction of, Deduction Allowed in Year Paid Real estate transactions, tax allocation, Division of real estate taxes between buyers and sellers. Nm taxation and revenue Taxes paid during tax year, deduction of, You must pay the tax during your tax year. Nm taxation and revenue Worthless securities and negotiable promissory notes, Worthless securities. Nm taxation and revenue Cash rebates, Cash rebates. Nm taxation and revenue Casualties, Home destroyed or condemned. Nm taxation and revenue Casualty insurance Premiums not in property basis, Settlement costs. Nm taxation and revenue Reimbursements from, Casualty insurance and other reimbursements. Nm taxation and revenue Casualty losses, Nonbusiness Casualty and Theft Losses, Net operating loss (NOL). Nm taxation and revenue , Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Adjusted basis in property, Casualty and theft losses. Nm taxation and revenue , Involuntary Conversions, Adjusted Basis, Adjustments to basis. Nm taxation and revenue Amount of loss, Figuring a Loss Appraisals, Appraisal. Nm taxation and revenue , Costs of photographs and appraisals. Nm taxation and revenue Bank deposit, loss due to bank's insolvency or bankruptcy, Casualty loss or ordinary loss. Nm taxation and revenue Costs Cleaning up or making repairs, Cost of cleaning up or making repairs. Nm taxation and revenue Photographs and appraisals, Costs of photographs and appraisals. Nm taxation and revenue Deductible losses, Deductible losses. Nm taxation and revenue $100 rule, $100 Rule When to take (Table 25-2), Gains more than losses. Nm taxation and revenue Deduction limits, Deduction Limits For personal property (Table 25-1), Actual reimbursement same as expected. Nm taxation and revenue Definition of casualty, Casualty Disasters, Employer's emergency disaster fund. Nm taxation and revenue , Disaster relief. Nm taxation and revenue (see also Disaster relief) Employer's emergency disaster fund, Employer's emergency disaster fund. Nm taxation and revenue Fair market value of property, Decrease in Fair Market Value Form 4684 to be filed, Forms to file. Nm taxation and revenue Insurance proceeds, treatment of, Insurance and Other Reimbursements Net operating losses, Net operating loss (NOL). Nm taxation and revenue Nondeductible losses, Deductible losses. Nm taxation and revenue Proof of loss, Casualty loss proof. Nm taxation and revenue Property used partly for business and partly for personal purposes, Property used partly for business and partly for personal purposes. Nm taxation and revenue Reimbursement, Insurance and Other Reimbursements Reporting of gain or loss, When To Report Gains and Losses, Losses. Nm taxation and revenue , How To Report Gains and Losses Single casualty on multiple properties, Single Casualty on Multiple Properties Cemeteries Charitable contributions to, Types of Qualified Organizations Certificate, mortgage credit, Who qualifies. Nm taxation and revenue Certificates of deposit (CDs), Certificates of deposit (CDs). Nm taxation and revenue , Individual Retirement Arrangements (IRAs) (see also Individual retirement arrangements (IRAs)) Chambers of commerce Charitable contributions to, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Entertainment expenses for attending meetings, Trade association meetings. Nm taxation and revenue Change of address, Change of Address Change of name, Name change. Nm taxation and revenue , Name changed. Nm taxation and revenue Chaplains Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty Charitable contributions, Contributions, Introduction, Organizations That Qualify To Receive Deductible Contributions, Types of Qualified Organizations, Contributions You Can Deduct, Contributions From Which You Benefit, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Token items. Nm taxation and revenue , Written statement. Nm taxation and revenue , Contributions You Cannot Deduct, Contributions to Individuals, Contributions to Nonqualified Organizations, Contributions From Which You Benefit, Contributions of Property, Determining Fair Market Value, Large quantities. Nm taxation and revenue , Giving Property That Has Decreased in Value, Giving Property That Has Increased in Value, Ordinary income property. Nm taxation and revenue , Capital gain property. Nm taxation and revenue , Amount of deduction — general rule. Nm taxation and revenue , Bargain sales. Nm taxation and revenue , When To Deduct, Time of making contribution. Nm taxation and revenue , Noncash Contributions, Additional records. Nm taxation and revenue , How To Report Gifts to reduce public debt, Gift To Reduce Debt Held by the Public Charitable distributions, qualified, Qualified charitable distributions (QCD). Nm taxation and revenue Charity benefit events Deduction amount for charitable contributions, Charity benefit events. Nm taxation and revenue Check-writing fees, Check-Writing Fees on Personal Account Checklists Medical and dental expense deductions (Table 21-1), Medicare A. Nm taxation and revenue Checks As charitable contributions, Checks. Nm taxation and revenue Canceled checks as evidence of travel expenses, Canceled check. Nm taxation and revenue Constructive receipt of, Check received or available. Nm taxation and revenue Child Foster child, Rule 10. Nm taxation and revenue You Cannot Be a Qualifying Child of Another Taxpayer, Rule 13. Nm taxation and revenue You Cannot Be a Qualifying Child of Another Taxpayer Married child, Married child. Nm taxation and revenue Child and dependent care credit, You can use Form 1040A if all of the following apply. Nm taxation and revenue Due diligence, Getting the information. Nm taxation and revenue Earned income, Earned income. Nm taxation and revenue Full-time student, Rule for student-spouse or spouse not able to care for self. Nm taxation and revenue Married filing separately, Special Rules Payments to relatives, Payments to Relatives or Dependents Child born alive, Child born alive. Nm taxation and revenue Child care, You can use Form 1040A if all of the following apply. Nm taxation and revenue Babysitting, Babysitting. Nm taxation and revenue Care providers, Childcare providers. Nm taxation and revenue Expenses, Child care expenses. Nm taxation and revenue Nursing care for healthy baby, not deductible as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Child custody, Custodial parent and noncustodial parent. Nm taxation and revenue Child support, Child support payments. Nm taxation and revenue Alimony, difference from, Payments not alimony. Nm taxation and revenue , Alimony requirements. Nm taxation and revenue , Child support. Nm taxation and revenue Child tax credit, Who Should File, You can use Form 1040A if all of the following apply. Nm taxation and revenue , Child tax credit. Nm taxation and revenue , Child Tax Credit Additional credit, Additional Child Tax Credit Amount of credit, Amount of Credit Claiming, procedure for, Claiming the Credit Limits, Special Rules, Limits on the Credit Modified adjusted gross income, Modified AGI. Nm taxation and revenue Married filing separately, Special Rules Qualifying child, Qualifying Child Child, qualifying, Qualifying Child Childcare Credit, Child and Dependent Care Credit Provider Taxpayer identification number, Provider Identification Test Children, Adoption Assistance, Personal Expenses (see also Adoption) Additional credit on child tax credit, Additional Child Tax Credit Adoption (see Adopted child) Babysitters, Babysitting. Nm taxation and revenue Birth of child Head of household, qualifying person to file as, Death or birth. Nm taxation and revenue , Death or birth. Nm taxation and revenue Social security number to be obtained, Born and died in 2013. Nm taxation and revenue Care providers, Childcare providers. Nm taxation and revenue (see also Child care) Child's tax, figuring of, Step 3. Nm taxation and revenue Figuring the Child's Tax (Form 8615, Part III) Alternative minimum tax, Alternative minimum tax. Nm taxation and revenue Credit for, Who Should File, You can use Form 1040A if all of the following apply. Nm taxation and revenue (see also Child and dependent care credit) (see also Child tax credit) Custody of, Custodial parent and noncustodial parent. Nm taxation and revenue Death of child Head of household, qualifying person to file as, Death or birth. Nm taxation and revenue , Death or birth. Nm taxation and revenue Deductions, Line 2 (deductions). Nm taxation and revenue Dividends of (see this heading: Investment income of child under age 18) Earnings of, Child's earnings. Nm taxation and revenue Filing requirements, Child's earnings. Nm taxation and revenue As dependents (Table 1-2), Do I Have To File a Return? Gifts to, Income from property given to a child. Nm taxation and revenue , Income from property received as a gift. Nm taxation and revenue Inclusion of child's income on parent's return (Figure 31-A), Penalty for underpayment of estimated tax. Nm taxation and revenue Income, calculation of, Figuring Child's Income Capital gains distributions, Capital gain distributions and qualified dividends. Nm taxation and revenue Investment income of, Tax on unearned income of certain children. Nm taxation and revenue Investment income of child under age 18 Dependent filing requirements (Table 1-2), Do I Have To File a Return? Interest and dividends, Certain Children Under Age 19 or Full-Time Students Parents' election to report on Form 1040, Certain Children Under Age 19 or Full-Time Students, Investment income of child reported on parent's return. Nm taxation and revenue Kidnapped, Kidnapped child. Nm taxation and revenue , Kidnapped child. Nm taxation and revenue Net unearned income, figuring of, Step 1. Nm taxation and revenue Figuring the Child's Net Unearned Income (Form 8615, Part I) Nontaxable income, Nontaxable income. Nm taxation and revenue Property received as gift, income from, Income from property received as a gift. Nm taxation and revenue Signing return, parent for child, Spouse unable to sign. Nm taxation and revenue Standard deduction for, Introduction, Standard Deduction for Dependents Stillborn, Stillborn child. Nm taxation and revenue Support of (see Child support) Tax credit (see Child tax credit) Tentative tax figured at parent's tax rate, Step 2. Nm taxation and revenue Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Transporting school children, Transporting school children. Nm taxation and revenue Unearned income of, Tax on unearned income of certain children. Nm taxation and revenue Unearned income of certain children, Introduction Form 8615, use of (Figure 31-B), Parental information, providing of, Providing Parental Information (Form 8615, lines A–C) Parents' election to report on Form 1040, Parent's Election To Report Child's Interest and Dividends Trust income, Trust income. Nm taxation and revenue Unearned income defined, Unearned income defined. Nm taxation and revenue Chronic illness Accelerated payment of life insurance proceeds (see Accelerated death benefits) Long-term care (see Long-term care insurance contracts) Church employees Filing requirements (Table 1-3), Figuring tax. Nm taxation and revenue Churches, temples, etc. Nm taxation and revenue Charitable contributions to, Examples. Nm taxation and revenue , Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check Convention delegates, deduction of unreimbursed expenses, Conventions. Nm taxation and revenue Citizen or resident test, Citizen or Resident Test Citizens outside U. Nm taxation and revenue S. Nm taxation and revenue Business travel outside U. Nm taxation and revenue S. Nm taxation and revenue , Travel Outside the United States, Travel Primarily for Business, Travel Primarily for Personal Reasons Self-employed persons, Exception 1 - No substantial control. Nm taxation and revenue Standard meal allowance, Standard meal allowance for areas outside the continental United States. Nm taxation and revenue Earned income exclusion, Reminders Employment (see Foreign employment) Extension of time to file, Individuals Outside the United States Filing requirements, U. Nm taxation and revenue S. Nm taxation and revenue Citizens and Resident Aliens Living Abroad Withholding from IRA distributions, IRA distributions delivered outside the United States. Nm taxation and revenue Civic associations Charitable contributions to, Contributions to Nonqualified Organizations Contributions to, no charitable deduction for, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check Civil defense organizations Charitable contributions to, Examples. Nm taxation and revenue Civil service retirement benefits, Civil service retirement benefits. Nm taxation and revenue Civil suits, Court awards and damages. Nm taxation and revenue (see also Damages from lawsuits) Civil tax penalties (see Penalties) Clergy, Ministers. Nm taxation and revenue Contributions that can be spent as individual wishes, not deductible charitable contribution, Contributions to Individuals Housing, Clergy Real estate taxes when receiving housing allowance, Ministers' and military housing allowances. Nm taxation and revenue , Ministers' and military housing allowance. Nm taxation and revenue Life insurance proceeds when chaplain died in line of duty, Public Safety Officer Killed in the Line of Duty Pensions, Pension. Nm taxation and revenue Special income rules, Clergy Clerical help, deductibility of, Clerical Help and Office Rent Clients, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. Nm taxation and revenue Closing costs Real property transactions, Settlement costs. Nm taxation and revenue Sale of home, Settlement fees or closing costs. Nm taxation and revenue Clothing Military, Military uniforms. Nm taxation and revenue Moth damage, not casualty loss, Progressive deterioration. Nm taxation and revenue Uniforms Charitable organization requiring, deduction for cost and upkeep of, Uniforms. Nm taxation and revenue Used clothing, charitable deduction for fair market value, Used clothing and household items. Nm taxation and revenue work, Work Clothes and Uniforms Club dues and membership fees Entertainment expenses, Club dues and membership fees. Nm taxation and revenue Co-owners Dwelling unit used as home by co-owner, rental income and expense allocation, Shared equity financing agreement. Nm taxation and revenue Coal and iron ore, Coal and iron ore. Nm taxation and revenue Coins (see Collectibles) Collectibles As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc. Nm taxation and revenue Gains or losses from sale or trade of, Investment interest deducted. Nm taxation and revenue IRA investment in, Investment in Collectibles, Exception. Nm taxation and revenue College professor Research expenses, Research Expenses of a College Professor Colleges and universities Charitable contributions to, Examples. Nm taxation and revenue , Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check Athletic events, amount deductible, Athletic events. Nm taxation and revenue Education costs, Qualified tuition programs (QTPs). Nm taxation and revenue (see also Qualified tuition programs) Employer-provided educational assistance, Qualified Education Expenses (see also Educational assistance) Combat zone Extension to file return, Individuals Serving in Combat Zone Signing return for spouse, Spouse in combat zone. Nm taxation and revenue Commission drivers Deduction of expenses, Statutory employees. Nm taxation and revenue Commissions, Supplemental Wages Advance, Advance commissions and other earnings. Nm taxation and revenue IRAs with brokers, Brokers' commissions. Nm taxation and revenue , Brokers' commissions. Nm taxation and revenue Property basis to include when buyer pays, Settlement costs. Nm taxation and revenue Sharing of (kickbacks), Kickbacks. Nm taxation and revenue Unearned, deduction for repayment of, Advance commissions and other earnings. Nm taxation and revenue Commodities Derivative financial instruments, Capital Assets and Noncapital Assets Common law marriage, Considered married. Nm taxation and revenue Communist organizations Charitable contributions to, Contributions to Nonqualified Organizations Community property, Community income. Nm taxation and revenue , Community property. Nm taxation and revenue Alimony, difference from, Payments not alimony. Nm taxation and revenue IRAs, Community property laws. Nm taxation and revenue Married filing separately, Community property states. Nm taxation and revenue Medical and dental expenses, Community property states. Nm taxation and revenue Commuting expenses, Commuting expenses. Nm taxation and revenue , Commuting Expenses Employer-provided commuter vehicle, Commuter highway vehicle. Nm taxation and revenue Compensation, Wages, Salaries, and Other Earnings (see also Wages and salaries) Defined for IRA purposes, What is compensation? Defined for Roth IRA purposes, Compensation. Nm taxation and revenue Employee, Employee Compensation Miscellaneous compensation, Miscellaneous Compensation Nonemployee, Nonemployee compensation. Nm taxation and revenue Unemployment, Unemployment compensation. Nm taxation and revenue Computation of tax, Computations Equal amounts, Equal amounts. Nm taxation and revenue Negative amounts, Negative amounts. Nm taxation and revenue Rounding off dollars, Rounding off dollars. Nm taxation and revenue Computer, Depreciation on Computers Condemnation of property, Home destroyed or condemned. Nm taxation and revenue , Condemnations. Nm taxation and revenue Basis computation, Involuntary Conversions Disaster areas, government-ordered demolition of unsafe home, Deductible losses. Nm taxation and revenue Period of ownership and use, Previous home destroyed or condemned. Nm taxation and revenue Confidential information Privacy Act and paperwork reduction information, Reminders Travel expenses and, Confidential information. Nm taxation and revenue Constructive receipt of income, Constructive receipt. Nm taxation and revenue , Payment to an agent. Nm taxation and revenue , Constructive receipt. Nm taxation and revenue Contributions, Gift To Reduce Debt Held by the Public, Campaign contributions. Nm taxation and revenue , Contributions, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations, How To Report (see also Campaign contributions) (see also Charitable contributions) Nontaxable combat pay, Nontaxable combat pay. Nm taxation and revenue Political, Political Contributions Reservist repayments, Qualified reservist repayments. Nm taxation and revenue Retirement (see specific type of plan ) Controlled corporations Nontaxable stock purchase of, Property for stock of a controlled corporation. Nm taxation and revenue Related party transactions, Losses on sales or trades of property. Nm taxation and revenue Convenience fees, Credit or Debit Card Convenience Fees Conventions Delegates Deduction of unreimbursed expenses, Conventions. Nm taxation and revenue Travel expenses, Conventions Travel expenses, Conventions Work-related education, deduction of travel expenses for overseas conventions, Cruises and conventions. Nm taxation and revenue Conversion (see specific retirement or IRA plan ) Convertible stocks and bonds, Convertible stocks and bonds. Nm taxation and revenue Cooperative housing Dwelling unit used as home, Introduction Mortgage interest statements, Form 1098, Mortgage Interest Statement Real estate taxes, deduction of, Tenant-shareholders in a cooperative housing corporation. Nm taxation and revenue Sale or trade of Form 1099-S to report, Form 1099-S transactions. Nm taxation and revenue Period of ownership and use, Cooperative apartment. Nm taxation and revenue Cooperatives Patronage dividends, Patronage dividends. Nm taxation and revenue Copyrights, Capital Assets and Noncapital Assets Infringement damages, Court awards and damages. Nm taxation and revenue Royalties, Royalties Corporations, S Corporation Income (see also S corporations) Controlled corporations, Property for stock of a controlled corporation. Nm taxation and revenue , Losses on sales or trades of property. Nm taxation and revenue Director fees as self-employment income, Corporate director. Nm taxation and revenue Reorganizations and nontaxable trade of stock, Corporate reorganizations. Nm taxation and revenue Corrections (see Errors) Cosmetic surgery Not deductible as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Cosmetics Not deductible as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Cost basis, Useful Items - You may want to see: IRAs for nondeductible contributions, Cost basis. Nm taxation and revenue , Partly taxable. Nm taxation and revenue Cost-of-living allowances, Government cost-of-living allowances. Nm taxation and revenue Country clubs Charitable contributions to, Contributions to Nonqualified Organizations Dues Charitable deduction not allowed, Table 24-1. Nm taxation and revenue Examples of Charitable Contributions—A Quick Check, Membership fees or dues. Nm taxation and revenue Entertainment expense deduction not allowed, Club dues and membership fees. Nm taxation and revenue Coupon bonds, Coupon bonds. Nm taxation and revenue Court awards and damages (see Damages from lawsuits) Cousin, Cousin. Nm taxation and revenue Coverdell ESAs Additional tax on, Other taxes. Nm taxation and revenue CPAs (see Accountants) Credit cards Annual fees, not deductible, Items You Cannot Deduct Benefits, taxability of insurance, Credit card insurance. Nm taxation and revenue Charitable contributions charged to, Credit card. Nm taxation and revenue Finance charges, not deductible, Personal Interest Payment of taxes, Reminders Credit for child and dependent care expenses, Credit for child and dependent care expenses. Nm taxation and revenue , Credit for child and dependent care expenses. Nm taxation and revenue Credit for prior year minimum tax Nonrefundable, Nonrefundable Credit for Prior Year Minimum Tax Credit for the elderly or the disabled, Credit for the elderly or the disabled. Nm taxation and revenue , Credit for the elderly or the disabled. Nm taxation and revenue Credit or debit cards Payment of taxes, E-file and pay by credit or debit card or by direct transfer from your bank account. Nm taxation and revenue Credit reports Costs not included in property basis, Settlement costs. Nm taxation and revenue Fees for, not deductible, Items You Cannot Deduct Credit to holders of tax credit bonds, Credit to Holders of Tax Credit Bonds Credits, Credits. Nm taxation and revenue , Earned income credit. Nm taxation and revenue , Credit for child and dependent care expenses. Nm taxation and revenue , Credit for the elderly or the disabled. Nm taxation and revenue , Earned income credit. Nm taxation and revenue , Credit for child and dependent care expenses. Nm taxation and revenue , Credit for the elderly or the disabled. Nm taxation and revenue , Earned income credit. Nm taxation and revenue Alternative motor vehicle, Alternative Motor Vehicle Credit American opportunity, Special Rules Build America bonds (see Credit to holders of tax credit bonds) Capital gains, undistributed, credit for tax on, Undistributed capital gains of mutual funds and REITs. Nm taxation and revenue , Credit for Tax on Undistributed Capital Gain Child and dependent care, Child and Dependent Care Credit (see Child and dependent care credit) Child tax (see Child tax credit) Clean renewable energy bonds (see Credit to holders of tax credit bonds) Earned income, Earned Income Credit (EIC) (see Earned income credit) Elderly or the disabled, Credit for the Elderly or the Disabled Excess withholding, Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Foreign tax, Foreign Tax Credit Health coverage, Health Coverage Tax Credit Lifetime learning (see Lifetime learning credit) Mortgage interest, Mortgage Interest Credit Nonrefundable credits, Nonrefundable Credits Plug-in electric drive motor vehicle, Plug-in Electric Drive Motor Vehicle Credit Prior year minimum tax (AMT), nonrefundable, Nonrefundable Credit for Prior Year Minimum Tax Qualified energy conservation bonds (see Credit to holders of tax credit bonds) Qualified school construction bonds (see Credit to holders of tax credit bonds) Qualified zone academy bonds (see Credit to holders of tax credit bonds) Refundable credits, Refundable Credits Residential energy, Residential Energy Credits Retirement savings contribution, Retirement Savings Contributions Credit (Saver's Credit) Cremation Not deductible as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Criminal prosecutions Travel expenses for federal staff, Exception for federal crime investigations or prosecutions. Nm taxation and revenue Cruises Travel expenses when incidental business activities, Trip Primarily for Personal Reasons Work-related education, deduction of expenses, Cruises and conventions. Nm taxation and revenue Custodial fees, Investment Fees and Expenses Custody of child, Custodial parent and noncustodial parent. Nm taxation and revenue Customers, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. Nm taxation and revenue D Daily allowance (see Per diem) Damage to property, Nonbusiness Casualty and Theft Losses (see also Casualty losses) Disasters, Employer's emergency disaster fund. Nm taxation and revenue , Disaster relief. Nm taxation and revenue (see also Disaster relief) Damages, Damages for Breach of Employment Contract Damages from lawsuits, Court awards and damages. Nm taxation and revenue Medical expenses as part of settlement, Damages for Personal Injuries Dating your return, Signatures Daycare centers, You can use Form 1040A if all of the following apply. Nm taxation and revenue , Childcare providers. Nm taxation and revenue , Care outside your home. Nm taxation and revenue (see also Child and dependent care credit) (see also Child care) De minimis benefits, De Minimis (Minimal) Benefits Deadlines (see Due dates) Death (see Decedents) Death benefits Accelerated, Accelerated Death Benefits, Exclusion for terminal illness. Nm taxation and revenue Life insurance proceeds (see Life insurance) Public safety officers who died or were killed in line of duty, tax exclusion, Public Safety Officer Killed in the Line of Duty Death of child, Death or birth of child. Nm taxation and revenue Death of dependent, Death or birth. Nm taxation and revenue Debt instruments (see Bonds or Notes) Debts, Exceptions for special types of refunds. Nm taxation and revenue , Recoveries (see also Bad debts) Canceled (see Cancellation of debt) Nonrecourse, Mortgage relief upon sale or other disposition. Nm taxation and revenue Paid by another, Debts paid for you. Nm taxation and revenue Payoff of debt included in sales transaction, Debt paid off. Nm taxation and revenue Public, gifts to reduce, Gift To Reduce Debt Held by the Public Recourse, Mortgage relief upon sale or other disposition. Nm taxation and revenue Refund offset against, Refunds. Nm taxation and revenue , Offset against debts. Nm taxation and revenue Deceased taxpayers (see Decedents) Decedents, Surviving Spouses, Executors, Administrators, and Legal Representatives (see also Executors and administrators) Capital loss of, Decedent's capital loss. Nm taxation and revenue Deceased spouse, Surviving Spouses, Executors, Administrators, and Legal Representatives Personal exemption, Death of spouse. Nm taxation and revenue Due dates, Filing for a decedent. Nm taxation and revenue Filing requirements, Surviving Spouses, Executors, Administrators, and Legal Representatives Funeral expenses, Contributions to Individuals Medical and dental expenses, Decedent Savings bonds, Decedents. Nm taxation and revenue Spouse's death, Spouse died during the year. Nm taxation and revenue , Spouse died. Nm taxation and revenue Standard deduction, Decedent's final return. Nm taxation and revenue Transfer of property at death, Other property transactions. Nm taxation and revenue Declaration of rights of taxpayers IRS request for information, Reminders Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. Nm taxation and revenue Deductions, Special Rules, Personal Exemptions and Dependents, Your Own Exemption, Recoveries, Nonbusiness Bad Debts, How to report bad debts. Nm taxation and revenue , Capital Losses , Introduction, Standard Deduction, Points, Treatment by buyer. Nm taxation and revenue , Meals and Incidental Expenses, Entertainment Expenses (see also Bad debts) (see also Capital losses) (see also Entertainment expenses) (see also Personal exemption) (see also Points) (see also Recovery of amounts previously deducted) (see also Standard deduction) Alimony, deductible by payer, How To Deduct Alimony Paid Casualty losses, Casualty and Theft Losses of Income-Producing Property (see Capital losses) Changing claim after filing, need to amend, Amended Returns and Claims for Refund Charitable contributions, Contributions, How To Report (see also Charitable contributions) Dental expenses (see Medical and dental expenses) Depreciation, Depreciation and section 179 deduction. Nm taxation and revenue Educator expenses, Educator Expenses Estate, Excess Deductions of an Estate Fee-basis government officials, Special Rules Impairment-related work expenses, Impairment-Related Work Expenses, Impairment-related work expenses of disabled employees. Nm taxation and revenue Interest (see Interest payments) Investment expenses, Investment expenses. Nm taxation and revenue IRA contributions (see Individual retirement arrangements (IRAs)) Itemizing (see Itemized deductions) Long-term care insurance contracts, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Medical expenses (see Medical and dental expenses) Mortgage interest, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Nm taxation and revenue (see Mortgages) Not itemizing, use of Form 1040A, You can use Form 1040A if all of the following apply. Nm taxation and revenue Pass-through entities, Indirect Deductions of Pass-Through Entities Penalties, no deduction permitted, Penalties. Nm taxation and revenue Performing artists' expenses, Expenses of certain performing artists. Nm taxation and revenue Prepaid insurance premiums, Prepaid insurance premiums. Nm taxation and revenue Prescription medicines, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Rental expenses, When to deduct. Nm taxation and revenue Repayments, Repayments Section 179 deductions Adjustment to basis for, Depreciation and section 179 deduction. Nm taxation and revenue Car expenses, Depreciation and section 179 deductions. Nm taxation and revenue Self-employed persons Health insurance premiums, Health Insurance Costs for Self-Employed Persons Social security and railroad retirement benefits, Deductions Related to Your Benefits Standard deduction, Standard Deduction, Married persons who filed separate returns. Nm taxation and revenue Stop-smoking programs, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Student loan interest deduction (see Student loans) Theft loss, Casualty and Theft Losses of Income-Producing Property Transportation expenses (see Travel and transportation expenses) Union dues (see Labor unions) Work-related education, What Expenses Can Be Deducted Deeds Preparation costs for, Amounts charged for services. Nm taxation and revenue Recording fees, basis to include, Real estate taxes. Nm taxation and revenue Deferred annuity contracts (see Annuities) Deferred compensation Limit, Elective deferrals. Nm taxation and revenue Nonqualified plans, Nonqualified deferred compensation plans. Nm taxation and revenue Deferred compensation plans (see Retirement plans) Delinquent taxes Real estate transactions, tax allocation, Real estate taxes for prior years. Nm taxation and revenue Delivery services, Private delivery services. Nm taxation and revenue Business-related travel expense, Table 26-1. Nm taxation and revenue Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Nm taxation and revenue Demutualization of life insurance companies, Demutualization of life insurance companies. Nm taxation and revenue Dental expenses (see Medical and dental expenses) Dentures Deductibility as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Dependent care Benefits, Dependent care benefits. Nm taxation and revenue , Dependent Care Benefits Center, Dependent care center. Nm taxation and revenue Credit for, Child and Dependent Care Credit Dependent taxpayer test, Dependent Taxpayer Test Dependents, Who Should File, You can use Form 1040A if all of the following apply. Nm taxation and revenue , Exception for adopted child. Nm taxation and revenue , Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). Nm taxation and revenue (see also Child tax credit) Birth of, Death or birth. Nm taxation and revenue Born and died within year, Exception. Nm taxation and revenue , Born and died in 2013. Nm taxation and revenue Death of, Death or birth. Nm taxation and revenue Deceased dependent's medical and dental expenses, What if you pay medical expenses of a deceased spouse or dependent? Disabled dependent care expenses, deduction for, Disabled Dependent Care Expenses Exemption for, Exemptions for Dependents Filing requirements, Child's earnings. Nm taxation and revenue Earned income, unearned income, and gross income levels (Table 1-2), Do I Have To File a Return? Married, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Medical and dental expenses, Dependent Qualifying child, Qualifying Child, Qualifying Child Qualifying relative, Qualifying Relative, Qualifying Child Social security number, Dependent's SSN. Nm taxation and revenue Adoption taxpayer identification number, Adoption taxpayer identification number (ATIN). Nm taxation and revenue , Taxpayer identification numbers for aliens. Nm taxation and revenue Alien dependents, Born and died in 2013. Nm taxation and revenue Standard deduction for, Standard Deduction for Dependents Travel expenses for, Travel expenses for another individual. Nm taxation and revenue Tuition deduction for, Who Can Claim a Dependent's Expenses Dependents not allowed to claim dependents, Dependent Taxpayer Test Depletion allowance, Depletion. Nm taxation and revenue Deposits, Fees and deposits. Nm taxation and revenue Loss on, Loss on Deposits Losses on, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits Reporting of, Loss on deposits. Nm taxation and revenue Depreciation Adjustment to basis for, Depreciation and section 179 deduction. Nm taxation and revenue Cars, Depreciation and section 179 deductions. Nm taxation and revenue Change of use of property, Basis for depreciation. Nm taxation and revenue Computer, Depreciation on Computers Correcting amount claimed, Claiming the correct amount of depreciation. Nm taxation and revenue Form 4562 Rental property depreciation, Depreciation Home computer, Depreciation on Home Computer Property used in trade or business, as noncapital assets, Capital Assets and Noncapital Assets Real property Gain from disposition of property, Depreciation after May 6, 1997. Nm taxation and revenue Land, no depreciation of, Land. Nm taxation and revenue Rental property, Depreciation. Nm taxation and revenue , Depreciation Designated Roth Account Defined. Nm taxation and revenue , Designated Roth accounts. Nm taxation and revenue Designated Roth account, Designated Roth accounts. Nm taxation and revenue , Designated Roth accounts. Nm taxation and revenue Destroyed records, Destroyed records. Nm taxation and revenue Diaper service, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Differential wage payments, Differential wage payments. Nm taxation and revenue Differential wages Wages for reservists Military reserves, Differential wage payments. Nm taxation and revenue Direct deposit of refunds, Refunds Directors' fees, Corporate director. Nm taxation and revenue Disabilities, persons with, Qualifying Person Test, Physically or mentally not able to care for oneself. Nm taxation and revenue , Credit for the Elderly or the Disabled (see also Elderly or the disabled) Accrued leave payment, Accrued leave payment. Nm taxation and revenue Armed forces, Disability. Nm taxation and revenue Blind (see Blind persons) Cafeteria plans, Cafeteria plans. Nm taxation and revenue Credit for (see Elderly or disabled, credit for) Dependent who is disabled, deduction for care expenses, Disabled Dependent Care Expenses Guide dogs, deductible as medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Impairment-related work expenses of, Impairment-Related Work Expenses, Impairment-related work expenses of disabled employees. Nm taxation and revenue Work-related education, Impairment-Related Work Expenses Insurance costs, Cost paid by you. Nm taxation and revenue Military and government pensions, Military and Government Disability Pensions Public assistance benefits, Persons with disabilities. Nm taxation and revenue Reporting of disability pension income, Disability Pensions Retirement, pensions, and profit-sharing plans, Sickness and Injury Benefits, Retirement and profit-sharing plans. Nm taxation and revenue Signing of return by court-appointed representative, Court-appointed, conservator, or other fiduciary. Nm taxation and revenue Social security and railroad retirement benefits, deductions for, Disability payments. Nm taxation and revenue Special school or home for, deductibility of medical expense, Table 21-1. Nm taxation and revenue Medical and Dental Expenses Checklist. Nm taxation and revenue See Publication 502 for more information about these and other expenses. Nm taxation and revenue Terrorist attack as cause of injury, disability payments excluded from taxation, Disability pensions. Nm taxation and revenue Workers' compensation, Workers' Compensation Disability Income, Disability income. Nm taxation and revenue Disability benefits Earned income credit, Form 4029. Nm taxation and revenue Disability insurance payments Earned income credit, Disability insurance payments. Nm taxation and revenue Disability, permanent and total disability, Permanent and total disability. Nm taxation and revenue Disabled Child, Permanently and totally disabled. Nm taxation and revenue Dependent, Disabled dependent working at sheltered workshop. Nm taxation and revenue Disaster Assistance Act of 1988 Withholding, Federal Payments Disaster relief, Terrorist attack or military action. Nm taxation and revenue , Disaster relief payments. Nm taxation and revenue , Disaster relief. Nm taxation and revenue (see also Terrorist attacks) Cash gifts to victims, Cash gifts. Nm taxation and revenue Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. Nm taxation and revenue Unemployment assistance, Types of unemployment compensation. Nm taxation and revenue Employer's emergency disaster fund, Employer's emergency disaster fund. Nm taxation and revenue Government-ordered demolition or relocation of home that is unsafe due to, Deductible losses. Nm taxation and revenue Grants or payments, Disaster relief grants. Nm taxation and revenue Replacement of lost or destroyed property, Disaster relief. Nm taxation and revenue Discharge of qualified principal residence indebtedness, Discharges of qualified principal residence indebtedness. Nm taxation and revenue , Adjusted Basis Disclosure statement, Disclosure statement. Nm taxation and revenue Discount, bonds and notes issued at, Original Issue Discount (OID) Discounted debt instruments Capital gain or loss, Discounted Debt Instruments Discounts Employee discounts, effect on basis, Bargain purchases. Nm taxation and revenue Distributions, Eligible rollover distributions. Nm taxation and revenue (see also Rollovers) Early (see Early withdrawal from deferred interest account) Liquidating distributions, Liquidating Distributions Lump sum (see Lump-sum distributions) Nondividend distributions, Nondividend Distributions Qualified charitable, Qualified charitable distributions (QCD). Nm taxation and revenue Qualified reservist, Qualified reservist distributions. Nm taxation and revenue Required minimum distributions, Required distributions. Nm taxation and revenue , Required distributions. Nm taxation and revenue , When Must You Withdraw IRA Assets? (Required Minimum Distributions) (see also Individual retirement arrangements (IRAs)) (see also Pensions) Return of capital, Nondividend Distributions District of Columbia First-time homebuyer credit, Decreases to basis. Nm taxation and revenue Dividends, Dividends and Other Distributions, Form 1099-DIV. Nm taxation and revenue , More information. Nm taxation and revenue (see also Form 1099-DIV) Alaska Permanent Fund (see Alaska Permanent Fund dividends) As stock dividends and stock rights, Distributions of Stock and Stock Rights Backup withholding, Backup withholding. Nm taxation and revenue Beneficiary of estate or trust receiving, Beneficiary of an estate or trust. Nm taxation and revenue Buying more stock with, Dividends Used to Buy More Stock Defined, Introduction Exempt-interest dividends, Other Distributions Expenses related to, deduction of, Expenses related to dividend income. Nm taxation and revenue Fees to collect, Fees to Collect Interest and Dividends Foreign income, Reminder Holding period, determination of, Stock dividends. Nm taxation and revenue Insurance dividends, Dividends on insurance policies. Nm taxation and revenue Money market funds, Money Market Funds Nominees receiving on behalf of another, Nominees. Nm taxation and revenue Nondividend distributions, Nondividend Distributions Ordinary dividends, Ordinary Dividends Patronage dividends, Patronage dividends. Nm taxation and revenue Qualified, Qualified Dividends, Qualified dividends. Nm taxation and revenue Real estate investment trusts (REITs) paying, Capital Gain Distributions Redemption treated as, Dividend versus sale or trade. Nm taxation and revenue Reinvestment plans, Dividends Used to Buy More Stock Reporting of, How To Report Dividend Income As interest, Introduction Scrip dividends, Scrip dividends. Nm taxation and revenue Sold stock, Dividends on stock sold. Nm taxation and revenue Stockholder debts when canceled as, Stockholder debt. Nm taxation and revenue Veterans' insurance, Dividends on veterans' insurance. Nm taxation and revenue Divorced parents, Children of divorced or separated parents (or parents who live apart). Nm taxation and revenue , Applying this special rule to divorced or separated parents (or parents who live apart). Nm taxation and revenue Divorced taxpayers, Alimony. Nm taxation and revenue (see also Alimony) Child and dependent care credit, Child of divorced or separated parents or parents living apart. Nm taxation and revenue Child custody, Custodial parent and noncustodial parent. Nm taxation and revenue Definition of divorce instrument for purposes of alimony, Divorce or separation instrument. Nm taxation and revenue Estimated tax payments, Divorced Taxpayers Filing status, Divorced persons. Nm taxation and revenue , Divorced persons. Nm taxation and revenue IRAs, Kay Bailey Hutchison Spousal IRA. Nm taxation and revenue , Transfers Incident to Divorce Medical and dental expenses of children of, Child of divorced or separated parents. Nm taxation and revenue Mortgage interest, payment as alimony, Divorced or separated individuals. Nm taxation and revenue Personal exemption, Divorced or separated spouse. Nm taxation and revenue Real estate taxes, allocation of, Divorced individuals. Nm taxation and revenue Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses Use of home after divorce, Use of home after divorce. Nm taxation and revenue Doctors' bills (see Medical and dental expenses) Documentary evidence Recordkeeping requirements, Documentary evidence. Nm taxation and revenue Domestic help Withholding, Household workers. Nm taxation and revenue Domestic help, no exemption for, Housekeepers, maids, or servants. Nm taxation and revenue
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Nm taxation and revenue 12. Nm taxation and revenue   Other Income Table of Contents Introduction Useful Items - You may want to see: Bartering Canceled DebtsInterest included in canceled debt. Nm taxation and revenue Exceptions Host or Hostess Life Insurance ProceedsSurviving spouse. Nm taxation and revenue Endowment Contract Proceeds Accelerated Death Benefits Public Safety Officer Killed in the Line of Duty Partnership Income S Corporation Income RecoveriesItemized Deduction Recoveries Rents from Personal Property RepaymentsMethod 1. Nm taxation and revenue Method 2. Nm taxation and revenue RoyaltiesDepletion. Nm taxation and revenue Coal and iron ore. Nm taxation and revenue Sale of property interest. Nm taxation and revenue Part of future production sold. Nm taxation and revenue Unemployment BenefitsTypes of unemployment compensation. Nm taxation and revenue Governmental program. Nm taxation and revenue Repayment of unemployment compensation. Nm taxation and revenue Tax withholding. Nm taxation and revenue Repayment of benefits. Nm taxation and revenue Welfare and Other Public Assistance Benefits Other IncomeEmotional distress. Nm taxation and revenue Deduction for costs involved in unlawful discrimination suits. Nm taxation and revenue Energy conservation measure. Nm taxation and revenue Dwelling unit. Nm taxation and revenue Current income required to be distributed. Nm taxation and revenue Current income not required to be distributed. Nm taxation and revenue How to report. Nm taxation and revenue Losses. Nm taxation and revenue Grantor trust. Nm taxation and revenue Nonemployee compensation. Nm taxation and revenue Corporate director. Nm taxation and revenue Personal representatives. Nm taxation and revenue Manager of trade or business for bankruptcy estate. Nm taxation and revenue Notary public. Nm taxation and revenue Election precinct official. Nm taxation and revenue Difficulty-of-care payments. Nm taxation and revenue Maintaining space in home. Nm taxation and revenue Reporting taxable payments. Nm taxation and revenue Lotteries and raffles. Nm taxation and revenue Form W-2G. Nm taxation and revenue Reporting winnings and recordkeeping. Nm taxation and revenue Inherited pension or IRA. Nm taxation and revenue Employee awards or bonuses. Nm taxation and revenue Pulitzer, Nobel, and similar prizes. Nm taxation and revenue Payment for services. Nm taxation and revenue VA payments. Nm taxation and revenue Prizes. Nm taxation and revenue Strike and lockout benefits. Nm taxation and revenue Introduction You must include on your return all items of income you receive in the form of money, property, and services unless the tax law states that you do not include them. Nm taxation and revenue Some items, however, are only partly excluded from income. Nm taxation and revenue This chapter discusses many kinds of income and explains whether they are taxable or nontaxable. Nm taxation and revenue Income that is taxable must be reported on your tax return and is subject to tax. Nm taxation and revenue Income that is nontaxable may have to be shown on your tax return but is not taxable. Nm taxation and revenue This chapter begins with discussions of the following income items. Nm taxation and revenue Bartering. Nm taxation and revenue Canceled debts. Nm taxation and revenue Sales parties at which you are the host or hostess. Nm taxation and revenue Life insurance proceeds. Nm taxation and revenue Partnership income. Nm taxation and revenue S Corporation income. Nm taxation and revenue Recoveries (including state income tax refunds). Nm taxation and revenue Rents from personal property. Nm taxation and revenue Repayments. Nm taxation and revenue Royalties. Nm taxation and revenue Unemployment benefits. Nm taxation and revenue Welfare and other public assistance benefits. Nm taxation and revenue These discussions are followed by brief discussions of other income items. Nm taxation and revenue Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 544 Sales and Other Dispositions of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Bartering Bartering is an exchange of property or services. Nm taxation and revenue You must include in your income, at the time received, the fair market value of property or services you receive in bartering. Nm taxation and revenue If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise. Nm taxation and revenue Generally, you report this income on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Nm taxation and revenue However, if the barter involves an exchange of something other than services, such as in Example 3 below, you may have to use another form or schedule instead. Nm taxation and revenue Example 1. Nm taxation and revenue You are a self-employed attorney who performs legal services for a client, a small corporation. Nm taxation and revenue The corporation gives you shares of its stock as payment for your services. Nm taxation and revenue You must include the fair market value of the shares in your income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) in the year you receive them. Nm taxation and revenue Example 2. Nm taxation and revenue You are self-employed and a member of a barter club. Nm taxation and revenue The club uses “credit units” as a means of exchange. Nm taxation and revenue It adds credit units to your account for goods or services you provide to members, which you can use to purchase goods or services offered by other members of the barter club. Nm taxation and revenue The club subtracts credit units from your account when you receive goods or services from other members. Nm taxation and revenue You must include in your income the value of the credit units that are added to your account, even though you may not actually receive goods or services from other members until a later tax year. Nm taxation and revenue Example 3. Nm taxation and revenue You own a small apartment building. Nm taxation and revenue In return for 6 months rent-free use of an apartment, an artist gives you a work of art she created. Nm taxation and revenue You must report as rental income on Schedule E (Form 1040), Supplemental Income and Loss, the fair market value of the artwork, and the artist must report as income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) the fair rental value of the apartment. Nm taxation and revenue Form 1099-B from barter exchange. Nm taxation and revenue   If you exchanged property or services through a barter exchange, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a similar statement from the barter exchange should be sent to you by February 18, 2014. Nm taxation and revenue It should show the value of cash, property, services, credits, or scrip you received from exchanges during 2013. Nm taxation and revenue The IRS also will receive a copy of Form 1099-B. Nm taxation and revenue Canceled Debts In most cases, if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. Nm taxation and revenue You have no income from the canceled debt if it is intended as a gift to you. Nm taxation and revenue A debt includes any indebtedness for which you are liable or which attaches to property you hold. Nm taxation and revenue If the debt is a nonbusiness debt, report the canceled amount on Form 1040, line 21. Nm taxation and revenue If it is a business debt, report the amount on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) (or on Schedule F (Form 1040), Profit or Loss From Farming, if the debt is farm debt and you are a farmer). Nm taxation and revenue Form 1099-C. Nm taxation and revenue   If a Federal Government agency, financial institution, or credit union cancels or forgives a debt you owe of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. Nm taxation and revenue The amount of the canceled debt is shown in box 2. Nm taxation and revenue Interest included in canceled debt. Nm taxation and revenue   If any interest is forgiven and included in the amount of canceled debt in box 2, the amount of interest also will be shown in box 3. Nm taxation and revenue Whether or not you must include the interest portion of the canceled debt in your income depends on whether the interest would be deductible when you paid it. Nm taxation and revenue See Deductible debt under Exceptions, later. Nm taxation and revenue   If the interest would not be deductible (such as interest on a personal loan), include in your income the amount from Form 1099-C, box 2. Nm taxation and revenue If the interest would be deductible (such as on a business loan), include in your income the net amount of the canceled debt (the amount shown in box 2 less the interest amount shown in box 3). Nm taxation and revenue Discounted mortgage loan. Nm taxation and revenue   If your financial institution offers a discount for the early payment of your mortgage loan, the amount of the discount is canceled debt. Nm taxation and revenue You must include the canceled amount in your income. Nm taxation and revenue Mortgage relief upon sale or other disposition. Nm taxation and revenue   If you are personally liable for a mortgage (recourse debt), and you are relieved of the mortgage when you dispose of the property, you may realize gain or loss up to the fair market value of the property. Nm taxation and revenue To the extent the mortgage discharge exceeds the fair market value of the property, it is income from discharge of indebtedness unless it qualifies for exclusion under Excluded debt , later. Nm taxation and revenue Report any income from discharge of indebtedness on nonbusiness debt that does not qualify for exclusion as other income on Form 1040, line 21. Nm taxation and revenue    You may be able to exclude part of the mortgage relief on your principal residence. Nm taxation and revenue See Excluded debt, later. Nm taxation and revenue   If you are not personally liable for a mortgage (nonrecourse debt), and you are relieved of the mortgage when you dispose of the property (such as through foreclosure), that relief is included in the amount you realize. Nm taxation and revenue You may have a taxable gain if the amount you realize exceeds your adjusted basis in the property. Nm taxation and revenue Report any gain on nonbusiness property as a capital gain. Nm taxation and revenue   See Publication 4681 for more information. Nm taxation and revenue Stockholder debt. Nm taxation and revenue   If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution that is generally dividend income to you. Nm taxation and revenue For more information, see Publication 542, Corporations. Nm taxation and revenue   If you are a stockholder in a corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. Nm taxation and revenue This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. Nm taxation and revenue Repayment of canceled debt. Nm taxation and revenue   If you included a canceled amount in your income and later pay the debt, you may be able to file a claim for refund for the year the amount was included in income. Nm taxation and revenue You can file a claim on Form 1040X if the statute of limitations for filing a claim is still open. Nm taxation and revenue The statute of limitations generally does not end until 3 years after the due date of your original return. Nm taxation and revenue Exceptions There are several exceptions to the inclusion of canceled debt in income. Nm taxation and revenue These are explained next. Nm taxation and revenue Student loans. Nm taxation and revenue   Certain student loans contain a provision that all or part of the debt incurred to attend the qualified educational institution will be canceled if you work for a certain period of time in certain professions for any of a broad class of employers. Nm taxation and revenue   You do not have income if your student loan is canceled after you agreed to this provision and then performed the services required. Nm taxation and revenue To qualify, the loan must have been made by: The Federal Government, a state or local government, or an instrumentality, agency, or subdivision thereof, A tax-exempt public benefit corporation that has assumed control of a state, county, or municipal hospital, and whose employees are considered public employees under state law, or An educational institution: Under an agreement with an entity described in (1) or (2) that provided the funds to the institution to make the loan, or As part of a program of the institution designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or a tax-exempt organization described in section 501(c)(3). Nm taxation and revenue   A loan to refinance a qualified student loan also will qualify if it was made by an educational institution or a qualified tax-exempt organization under its program designed as described in (3)(b) above. Nm taxation and revenue Education loan repayment assistance. Nm taxation and revenue   Education loan repayments made to you by the National Health Service Corps Loan Repayment Program (NHSC Loan Repayment Program), a state education loan repayment program eligible for funds under the Public Health Service Act, or any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas are not taxable. Nm taxation and revenue    The provision relating to the “other state loan repayment or loan forgiveness program” was added to this exclusion for amounts received in tax years beginning after December 31, 2008. Nm taxation and revenue If you included these amounts in income in 2010, 2011, or 2012, you should file an amended tax return to exclude this income. Nm taxation and revenue See Form 1040X and its instructions for details on filing. Nm taxation and revenue Deductible debt. Nm taxation and revenue   You do not have income from the cancellation of a debt if your payment of the debt would be deductible. Nm taxation and revenue This exception applies only if you use the cash method of accounting. Nm taxation and revenue For more information, see chapter 5 of Publication 334, Tax Guide for Small Business. Nm taxation and revenue Price reduced after purchase. Nm taxation and revenue   In most cases, if the seller reduces the amount of debt you owe for property you purchased, you do not have income from the reduction. Nm taxation and revenue The reduction of the debt is treated as a purchase price adjustment and reduces your basis in the property. Nm taxation and revenue Excluded debt. Nm taxation and revenue   Do not include a canceled debt in your gross income in the following situations. Nm taxation and revenue The debt is canceled in a bankruptcy case under title 11 of the U. Nm taxation and revenue S. Nm taxation and revenue Code. Nm taxation and revenue See Publication 908, Bankruptcy Tax Guide. Nm taxation and revenue The debt is canceled when you are insolvent. Nm taxation and revenue However, you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent. Nm taxation and revenue See Publication 908. Nm taxation and revenue The debt is qualified farm debt and is canceled by a qualified person. Nm taxation and revenue See chapter 3 of Publication 225, Farmer's Tax Guide. Nm taxation and revenue The debt is qualified real property business debt. Nm taxation and revenue See chapter 5 of Publication 334. Nm taxation and revenue The cancellation is intended as a gift. Nm taxation and revenue The debt is qualified principal residence indebtedness. Nm taxation and revenue See Publication 525 for additional information. Nm taxation and revenue Host or Hostess If you host a party or event at which sales are made, any gift or gratuity you receive for giving the event is a payment for helping a direct seller make sales. Nm taxation and revenue You must report this item as income at its fair market value. Nm taxation and revenue Your out-of-pocket party expenses are subject to the 50% limit for meal and entertainment expenses. Nm taxation and revenue These expenses are deductible as miscellaneous itemized deductions subject to the 2%-of-AGI limit on Schedule A (Form 1040), but only up to the amount of income you receive for giving the party. Nm taxation and revenue For more information about the 50% limit for meal and entertainment expenses, see chapter 26. Nm taxation and revenue Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. Nm taxation and revenue This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. Nm taxation and revenue However, interest income received as a result of life insurance proceeds may be taxable. Nm taxation and revenue Proceeds not received in installments. Nm taxation and revenue   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. Nm taxation and revenue If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. Nm taxation and revenue Proceeds received in installments. Nm taxation and revenue   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. Nm taxation and revenue   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. Nm taxation and revenue Include anything over this excluded part in your income as interest. Nm taxation and revenue Surviving spouse. Nm taxation and revenue   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude up to $1,000 a year of the interest included in the installments. Nm taxation and revenue If you remarry, you can continue to take the exclusion. Nm taxation and revenue Surrender of policy for cash. Nm taxation and revenue   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Nm taxation and revenue In most cases, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. Nm taxation and revenue    You should receive a Form 1099-R showing the total proceeds and the taxable part. Nm taxation and revenue Report these amounts on lines 16a and 16b of Form 1040 or lines 12a and 12b of Form 1040A. Nm taxation and revenue More information. Nm taxation and revenue   For more information, see Life Insurance Proceeds in Publication 525. Nm taxation and revenue Endowment Contract Proceeds An endowment contract is a policy under which you are paid a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. Nm taxation and revenue Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. Nm taxation and revenue To determine your cost, subtract any amount that you previously received under the contract and excluded from your income from the total premiums (or other consideration) paid for the contract. Nm taxation and revenue Include the part of the lump sum payment that is more than your cost in your income. Nm taxation and revenue Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are excluded from income if the insured is terminally or chronically ill. Nm taxation and revenue Viatical settlement. Nm taxation and revenue   This is the sale or assignment of any part of the death benefit under a life insurance contract to a viatical settlement provider. Nm taxation and revenue A viatical settlement provider is a person who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill and who meets the requirements of section 101(g)(2)(B) of the Internal Revenue Code. Nm taxation and revenue Exclusion for terminal illness. Nm taxation and revenue    Accelerated death benefits are fully excludable if the insured is a terminally ill individual. Nm taxation and revenue This is a person who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. Nm taxation and revenue Exclusion for chronic illness. Nm taxation and revenue    If the insured is a chronically ill individual who is not terminally ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Nm taxation and revenue Accelerated death benefits paid on a per diem or other periodic basis are excludable up to a limit. Nm taxation and revenue This limit applies to the total of the accelerated death benefits and any periodic payments received from long-term care insurance contracts. Nm taxation and revenue For information on the limit and the definitions of chronically ill individual, qualified long-term care services, and long-term care insurance contracts, see Long-Term Care Insurance Contracts under Sickness and Injury Benefits in Publication 525. Nm taxation and revenue Exception. Nm taxation and revenue   The exclusion does not apply to any amount paid to a person (other than the insured) who has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the person, or Has a financial interest in the person's business. Nm taxation and revenue Form 8853. Nm taxation and revenue   To claim an exclusion for accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. Nm taxation and revenue You do not have to file Form 8853 to exclude accelerated death benefits paid on the basis of actual expenses incurred. Nm taxation and revenue Public Safety Officer Killed in the Line of Duty If you are a survivor of a public safety officer who was killed in the line of duty, you may be able to exclude from income certain amounts you receive. Nm taxation and revenue For this purpose, the term public safety officer includes law enforcement officers, firefighters, chaplains, and rescue squad and ambulance crew members. Nm taxation and revenue For more information, see Publication 559, Survivors, Executors, and Administrators. Nm taxation and revenue Partnership Income A partnership generally is not a taxable entity. Nm taxation and revenue The income, gains, losses, deductions, and credits of a partnership are passed through to the partners based on each partner's distributive share of these items. Nm taxation and revenue Schedule K-1 (Form 1065). Nm taxation and revenue    Although a partnership generally pays no tax, it must file an information return on Form 1065, U. Nm taxation and revenue S. Nm taxation and revenue Return of Partnership Income, and send Schedule K-1 (Form 1065) to each partner. Nm taxation and revenue In addition, the partnership will send each partner a copy of the Partner's Instructions for Schedule K-1 (Form 1065) to help each partner report his or her share of the partnership's income, deductions, credits, and tax preference items. Nm taxation and revenue Keep Schedule K-1 (Form 1065) for your records. Nm taxation and revenue Do not attach it to your Form 1040, unless you are specifically required to do so. Nm taxation and revenue For more information on partnerships, see Publication 541, Partnerships. Nm taxation and revenue Qualified joint venture. Nm taxation and revenue   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. Nm taxation and revenue To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Nm taxation and revenue For further information on how to make the election and which schedule(s) to file, see the instructions for your individual tax return. Nm taxation and revenue S Corporation Income In most cases, an S corporation does not pay tax on its income. Nm taxation and revenue Instead, the income, losses, deductions, and credits of the corporation are passed through to the shareholders based on each shareholder's pro rata share. Nm taxation and revenue Schedule K-1 (Form 1120S). Nm taxation and revenue   An S corporation must file a return on Form 1120S, U. Nm taxation and revenue S. Nm taxation and revenue Income Tax Return for an S Corporation, and send Schedule K-1 (Form 1120S) to each shareholder. Nm taxation and revenue In addition, the S corporation will send each shareholder a copy of the Shareholder's Instructions for Schedule K-1 (Form 1120S) to help each shareholder report his or her share of the S corporation's income, losses, credits, and deductions. Nm taxation and revenue Keep Schedule K-1 (Form 1120S) for your records. Nm taxation and revenue Do not attach it to your Form 1040, unless you are specifically required to do so. Nm taxation and revenue For more information on S corporations and their shareholders, see the Instructions for Form 1120S. Nm taxation and revenue Recoveries A recovery is a return of an amount you deducted or took a credit for in an earlier year. Nm taxation and revenue The most common recoveries are refunds, reimbursements, and rebates of deductions itemized on Schedule A (Form 1040). Nm taxation and revenue You also may have recoveries of non-itemized deductions (such as payments on previously deducted bad debts) and recoveries of items for which you previously claimed a tax credit. Nm taxation and revenue Tax benefit rule. Nm taxation and revenue   You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. Nm taxation and revenue For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year. Nm taxation and revenue For more information, see Publication 525. Nm taxation and revenue Federal income tax refund. Nm taxation and revenue   Refunds of federal income taxes are not included in your income because they are never allowed as a deduction from income. Nm taxation and revenue State tax refund. Nm taxation and revenue   If you received a state or local income tax refund (or credit or offset) in 2013, you generally must include it in income if you deducted the tax in an earlier year. Nm taxation and revenue The payer should send Form 1099-G, Certain Government Payments, to you by January 31, 2014. Nm taxation and revenue The IRS also will receive a copy of the Form 1099-G. Nm taxation and revenue If you file Form 1040, use the State and Local Income Tax Refund Worksheet in the 2013 Form 1040 instructions for line 10 to figure the amount (if any) to include in your income. Nm taxation and revenue See Publication 525 for when you must use another worksheet. Nm taxation and revenue   If you could choose to deduct for a tax year either: State and local income taxes, or State and local general sales taxes, then the maximum refund that you may have to include in income is limited to the excess of the tax you chose to deduct for that year over the tax you did not choose to deduct for that year. Nm taxation and revenue For examples, see Publication 525. Nm taxation and revenue Mortgage interest refund. Nm taxation and revenue    If you received a refund or credit in 2013 of mortgage interest paid in an earlier year, the amount should be shown in box 3 of your Form 1098, Mortgage Interest Statement. Nm taxation and revenue Do not subtract the refund amount from the interest you paid in 2013. Nm taxation and revenue You may have to include it in your income under the rules explained in the following discussions. Nm taxation and revenue Interest on recovery. Nm taxation and revenue   Interest on any of the amounts you recover must be reported as interest income in the year received. Nm taxation and revenue For example, report any interest you received on state or local income tax refunds on Form 1040, line 8a. Nm taxation and revenue Recovery and expense in same year. Nm taxation and revenue   If the refund or other recovery and the expense occur in the same year, the recovery reduces the deduction or credit and is not reported as income. Nm taxation and revenue Recovery for 2 or more years. Nm taxation and revenue   If you receive a refund or other recovery that is for amounts you paid in 2 or more separate years, you must allocate, on a pro rata basis, the recovered amount between the years in which you paid it. Nm taxation and revenue This allocation is necessary to determine the amount of recovery from any earlier years and to determine the amount, if any, of your allowable deduction for this item for the current year. Nm taxation and revenue For information on how to compute the allocation, see Recoveries in Publication 525. Nm taxation and revenue Itemized Deduction Recoveries If you recover any amount that you deducted in an earlier year on Schedule A (Form 1040), you generally must include the full amount of the recovery in your income in the year you receive it. Nm taxation and revenue Where to report. Nm taxation and revenue   Enter your state or local income tax refund on Form 1040, line 10, and the total of all other recoveries as other income on Form 1040, line 21. Nm taxation and revenue You cannot use Form 1040A or Form 1040EZ. Nm taxation and revenue Standard deduction limit. Nm taxation and revenue   You generally are allowed to claim the standard deduction if you do not itemize your deductions. Nm taxation and revenue Only your itemized deductions that are more than your standard deduction are subject to the recovery rule (unless you are required to itemize your deductions). Nm taxation and revenue If your total deductions on the earlier year return were not more than your income for that year, include in your income this year the lesser of: Your recoveries, or The amount by which your itemized deductions exceeded the standard deduction. Nm taxation and revenue Example. Nm taxation and revenue For 2012, you filed a joint return. Nm taxation and revenue Your taxable income was $60,000 and you were not entitled to any tax credits. Nm taxation and revenue Your standard deduction was $11,900, and you had itemized deductions of $14,000. Nm taxation and revenue In 2013, you received the following recoveries for amounts deducted on your 2012 return: Medical expenses $200 State and local income tax refund 400 Refund of mortgage interest 325 Total recoveries $925 None of the recoveries were more than the deductions taken for 2012. Nm taxation and revenue The difference between the state and local income tax you deducted and your local general sales tax was more than $400. Nm taxation and revenue Your total recoveries are less than the amount by which your itemized deductions exceeded the standard deduction ($14,000 − 11,900 = $2,100), so you must include your total recoveries in your income for 2013. Nm taxation and revenue Report the state and local income tax refund of $400 on Form 1040, line 10, and the balance of your recoveries, $525, on Form 1040, line 21. Nm taxation and revenue Standard deduction for earlier years. Nm taxation and revenue   To determine if amounts recovered in 2013 must be included in your income, you must know the standard deduction for your filing status for the year the deduction was claimed. Nm taxation and revenue Look in the instructions for your tax return from prior years to locate the standard deduction for the filing status for that prior year. Nm taxation and revenue Example. Nm taxation and revenue You filed a joint return on Form 1040 for 2012 with taxable income of $45,000. Nm taxation and revenue Your itemized deductions were $12,350. Nm taxation and revenue The standard deduction that you could have claimed was $11,900. Nm taxation and revenue In 2013, you recovered $2,100 of your 2012 itemized deductions. Nm taxation and revenue None of the recoveries were more than the actual deductions for 2012. Nm taxation and revenue Include $450 of the recoveries in your 2013 income. Nm taxation and revenue This is the smaller of your recoveries ($2,100) or the amount by which your itemized deductions were more than the standard deduction ($12,350 − $11,900 = $450). Nm taxation and revenue Recovery limited to deduction. Nm taxation and revenue   You do not include in your income any amount of your recovery that is more than the amount you deducted in the earlier year. Nm taxation and revenue The amount you include in your income is limited to the smaller of: The amount deducted on Schedule A (Form 1040), or The amount recovered. Nm taxation and revenue Example. Nm taxation and revenue During 2012 you paid $1,700 for medical expenses. Nm taxation and revenue From this amount you subtracted $1,500, which was 7. Nm taxation and revenue 5% of your adjusted gross income. Nm taxation and revenue Your actual medical expense deduction was $200. Nm taxation and revenue In 2013, you received a $500 reimbursement from your medical insurance for your 2012 expenses. Nm taxation and revenue The only amount of the $500 reimbursement that must be included in your income for 2013 is $200—the amount actually deducted. Nm taxation and revenue Other recoveries. Nm taxation and revenue   See Recoveries in Publication 525 if: You have recoveries of items other than itemized deductions, or You received a recovery for an item for which you claimed a tax credit (other than investment credit or foreign tax credit) in a prior year. Nm taxation and revenue Rents from Personal Property If you rent out personal property, such as equipment or vehicles, how you report your income and expenses is in most cases determined by: Whether or not the rental activity is a business, and Whether or not the rental activity is conducted for profit. Nm taxation and revenue In most cases, if your primary purpose is income or profit and you are involved in the rental activity with continuity and regularity, your rental activity is a business. Nm taxation and revenue See Publication 535, Business Expenses, for details on deducting expenses for both business and not-for-profit activities. Nm taxation and revenue Reporting business income and expenses. Nm taxation and revenue    If you are in the business of renting personal property, report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Nm taxation and revenue The form instructions have information on how to complete them. Nm taxation and revenue Reporting nonbusiness income. Nm taxation and revenue   If you are not in the business of renting personal property, report your rental income on Form 1040, line 21. Nm taxation and revenue List the type and amount of the income on the dotted line next to line 21. Nm taxation and revenue Reporting nonbusiness expenses. Nm taxation and revenue   If you rent personal property for profit, include your rental expenses in the total amount you enter on Form 1040, line 36. Nm taxation and revenue Also enter the amount and “PPR” on the dotted line next to line 36. Nm taxation and revenue   If you do not rent personal property for profit, your deductions are limited and you cannot report a loss to offset other income. Nm taxation and revenue See Activity not for profit , under Other Income, later. Nm taxation and revenue Repayments If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Nm taxation and revenue Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. Nm taxation and revenue Generally, you can claim a deduction or credit only if the repayment qualifies as an expense or loss incurred in your trade or business or in a for-profit transaction. Nm taxation and revenue Type of deduction. Nm taxation and revenue   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. Nm taxation and revenue You generally deduct the repayment on the same form or schedule on which you previously reported it as income. Nm taxation and revenue For example, if you reported it as self-employment income, deduct it as a business expense on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). Nm taxation and revenue If you reported it as a capital gain, deduct it as a capital loss as explained in the Instructions for Schedule D (Form 1040). Nm taxation and revenue If you reported it as wages, unemployment compensation, or other nonbusiness income, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040). Nm taxation and revenue Repaid social security benefits. Nm taxation and revenue   If you repaid social security benefits or equivalent railroad retirement benefits, see Repayment of benefits in chapter 11. Nm taxation and revenue Repayment of $3,000 or less. Nm taxation and revenue   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Nm taxation and revenue If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 23. Nm taxation and revenue Repayment over $3,000. Nm taxation and revenue   If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). Nm taxation and revenue However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. Nm taxation and revenue This means that at the time you included the income, it appeared that you had an unrestricted right to it. Nm taxation and revenue If you qualify for this choice, figure your tax under both methods and compare the results. Nm taxation and revenue Use the method (deduction or credit) that results in less tax. Nm taxation and revenue When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. Nm taxation and revenue Each instance of repayment is not considered separately. Nm taxation and revenue Method 1. Nm taxation and revenue   Figure your tax for 2013 claiming a deduction for the repaid amount. Nm taxation and revenue If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 28. Nm taxation and revenue Method 2. Nm taxation and revenue   Figure your tax for 2013 claiming a credit for the repaid amount. Nm taxation and revenue Follow these steps. Nm taxation and revenue Figure your tax for 2013 without deducting the repaid amount. Nm taxation and revenue Refigure your tax from the earlier year without including in income the amount you repaid in 2013. Nm taxation and revenue Subtract the tax in (2) from the tax shown on your return for the earlier year. Nm taxation and revenue This is the credit. Nm taxation and revenue Subtract the answer in (3) from the tax for 2013 figured without the deduction (Step 1). Nm taxation and revenue   If method 1 results in less tax, deduct the amount repaid. Nm taxation and revenue If method 2 results in less tax, claim the credit figured in (3) above on Form 1040, line 71, by adding the amount of the credit to any other credits on this line, and entering “I. Nm taxation and revenue R. Nm taxation and revenue C. Nm taxation and revenue 1341” in the column to the right of line 71. Nm taxation and revenue   An example of this computation can be found in Publication 525. Nm taxation and revenue Repaid wages subject to social security and Medicare taxes. Nm taxation and revenue   If you had to repay an amount that you included in your wages or compensation in an earlier year on which social security, Medicare, or tier 1 RRTA taxes were paid, ask your employer to refund the excess amount to you. Nm taxation and revenue If the employer refuses to refund the taxes, ask for a statement indicating the amount of the overcollection to support your claim. Nm taxation and revenue File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Nm taxation and revenue Repaid wages subject to Additional Medicare Tax. Nm taxation and revenue   Employers cannot make an adjustment or file a claim for refund for Additional Medicare Tax withholding when there is a repayment of wages received by an employee in a prior year because the employee determines liability for Additional Medicare Tax on the employee's income tax return for the prior year. Nm taxation and revenue If you had to repay an amount that you included in your wages or compensation in an earlier year, and on which Additional Medicare Tax was paid, you may be able to recover the Additional Medicare Tax paid on the amount. Nm taxation and revenue To recover Additional Medicare Tax on the repaid wages or compensation, you must file Form 1040X, Amended U. Nm taxation and revenue S. Nm taxation and revenue Individual Income Tax Return, for the prior year in which the wages or compensation were originally received. Nm taxation and revenue See the Instructions for Form 1040X. Nm taxation and revenue Royalties Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. Nm taxation and revenue In most cases you report royalties in Part I of Schedule E (Form 1040). Nm taxation and revenue However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc. Nm taxation and revenue , report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Nm taxation and revenue Copyrights and patents. Nm taxation and revenue   Royalties from copyrights on literary, musical, or artistic works, and similar property, or from patents on inventions, are amounts paid to you for the right to use your work over a specified period of time. Nm taxation and revenue Royalties generally are based on the number of units sold, such as the number of books, tickets to a performance, or machines sold. Nm taxation and revenue Oil, gas, and minerals. Nm taxation and revenue   Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property. Nm taxation and revenue The royalties are based on units, such as barrels, tons, etc. Nm taxation and revenue , and are paid to you by a person or company who leases the property from you. Nm taxation and revenue Depletion. Nm taxation and revenue   If you are the owner of an economic interest in mineral deposits or oil and gas wells, you can recover your investment through the depletion allowance. Nm taxation and revenue For information on this subject, see chapter 9 of Publication 535. Nm taxation and revenue Coal and iron ore. Nm taxation and revenue   Under certain circumstances, you can treat amounts you receive from the disposal of coal and iron ore as payments from the sale of a capital asset, rather than as royalty income. Nm taxation and revenue For information about gain or loss from the sale of coal and iron ore, see Publication 544. Nm taxation and revenue Sale of property interest. Nm taxation and revenue   If you sell your complete interest in oil, gas, or mineral rights, the amount you receive is considered payment for the sale of property used in a trade or business under section 1231, not royalty income. Nm taxation and revenue Under certain circumstances, the sale is subject to capital gain or loss treatment as explained in the Instructions for Schedule D (Form 1040). Nm taxation and revenue For more information on selling section 1231 property, see chapter 3 of Publication 544. Nm taxation and revenue   If you retain a royalty, an overriding royalty, or a net profit interest in a mineral property for the life of the property, you have made a lease or a sublease, and any cash you receive for the assignment of other interests in the property is ordinary income subject to a depletion allowance. Nm taxation and revenue Part of future production sold. Nm taxation and revenue   If you own mineral property but sell part of the future production, in most cases you treat the money you receive from the buyer at the time of the sale as a loan from the buyer. Nm taxation and revenue Do not include it in your income or take depletion based on it. Nm taxation and revenue   When production begins, you include all the proceeds in your income, deduct all the production expenses, and deduct depletion from that amount to arrive at your taxable income from the property. Nm taxation and revenue Unemployment Benefits The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits. Nm taxation and revenue Unemployment compensation. Nm taxation and revenue   You must include in income all unemployment compensation you receive. Nm taxation and revenue You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you. Nm taxation and revenue In most cases, you enter unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Nm taxation and revenue Types of unemployment compensation. Nm taxation and revenue   Unemployment compensation generally includes any amount received under an unemployment compensation law of the United States or of a state. Nm taxation and revenue It includes the following benefits. Nm taxation and revenue Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund. Nm taxation and revenue State unemployment insurance benefits. Nm taxation and revenue Railroad unemployment compensation benefits. Nm taxation and revenue Disability payments from a government program paid as a substitute for unemployment compensation. Nm taxation and revenue (Amounts received as workers' compensation for injuries or illness are not unemployment compensation. Nm taxation and revenue See chapter 5 for more information. Nm taxation and revenue ) Trade readjustment allowances under the Trade Act of 1974. Nm taxation and revenue Unemployment assistance under the Disaster Relief and Emergency Assistance Act. Nm taxation and revenue Unemployment assistance under the Airline Deregulation Act of 1974 Program. Nm taxation and revenue Governmental program. Nm taxation and revenue   If you contribute to a governmental unemployment compensation program and your contributions are not deductible, amounts you receive under the program are not included as unemployment compensation until you recover your contributions. Nm taxation and revenue If you deducted all of your contributions to the program, the entire amount you receive under the program is included in your income. Nm taxation and revenue Repayment of unemployment compensation. Nm taxation and revenue   If you repaid in 2013 unemployment compensation you received in 2013, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Nm taxation and revenue On the dotted line next to your entry enter “Repaid” and the amount you repaid. Nm taxation and revenue If you repaid unemployment compensation in 2013 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. Nm taxation and revenue If the amount is more than $3,000, see Repayments , earlier. Nm taxation and revenue Tax withholding. Nm taxation and revenue   You can choose to have federal income tax withheld from your unemployment compensation. Nm taxation and revenue To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Nm taxation and revenue Tax will be withheld at 10% of your payment. Nm taxation and revenue    If you do not choose to have tax withheld from your unemployment compensation, you may be liable for estimated tax. Nm taxation and revenue If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Nm taxation and revenue For more information on estimated tax, see chapter 4. Nm taxation and revenue Supplemental unemployment benefits. Nm taxation and revenue   Benefits received from an employer-financed fund (to which the employees did not contribute) are not unemployment compensation. Nm taxation and revenue They are taxable as wages and are subject to withholding for income tax. Nm taxation and revenue They may be subject to social security and Medicare taxes. Nm taxation and revenue For more information, see Supplemental Unemployment Benefits in section 5 of Publication 15-A, Employer's Supplemental Tax Guide. Nm taxation and revenue Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Nm taxation and revenue Repayment of benefits. Nm taxation and revenue   You may have to repay some of your supplemental unemployment benefits to qualify for trade readjustment allowances under the Trade Act of 1974. Nm taxation and revenue If you repay supplemental unemployment benefits in the same year you receive them, reduce the total benefits by the amount you repay. Nm taxation and revenue If you repay the benefits in a later year, you must include the full amount of the benefits received in your income for the year you received them. Nm taxation and revenue   Deduct the repayment in the later year as an adjustment to gross income on Form 1040. Nm taxation and revenue (You cannot use Form 1040A or Form 1040EZ. Nm taxation and revenue ) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36. Nm taxation and revenue If the amount you repay in a later year is more than $3,000, you may be able to take a credit against your tax for the later year instead of deducting the amount repaid. Nm taxation and revenue For more information on this, see Repayments , earlier. Nm taxation and revenue Private unemployment fund. Nm taxation and revenue   Unemployment benefit payments from a private (nonunion) fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. Nm taxation and revenue Report the taxable amount on Form 1040, line 21. Nm taxation and revenue Payments by a union. Nm taxation and revenue   Benefits paid to you as an unemployed member of a union from regular union dues are included in your income on Form 1040, line 21. Nm taxation and revenue However, if you contribute to a special union fund and your payments to the fund are not deductible, the unemployment benefits you receive from the fund are includible in your income only to the extent they are more than your contributions. Nm taxation and revenue Guaranteed annual wage. Nm taxation and revenue   Payments you receive from your employer during periods of unemployment, under a union agreement that guarantees you full pay during the year, are taxable as wages. Nm taxation and revenue Include them on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Nm taxation and revenue State employees. Nm taxation and revenue   Payments similar to a state's unemployment compensation may be made by the state to its employees who are not covered by the state's unemployment compensation law. Nm taxation and revenue Although the payments are fully taxable, do not report them as unemployment compensation. Nm taxation and revenue Report these payments on Form 1040, line 21. Nm taxation and revenue Welfare and Other Public Assistance Benefits Do not include in your income governmental benefit payments from a public welfare fund based upon need, such as payments to blind individuals under a state public assistance law. Nm taxation and revenue Payments from a state fund for the victims of crime should not be included in the victims' incomes if they are in the nature of welfare payments. Nm taxation and revenue Do not deduct medical expenses that are reimbursed by such a fund. Nm taxation and revenue You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently. Nm taxation and revenue Reemployment Trade Adjustment Assistance (RTAA) payments. Nm taxation and revenue   RTAA payments received from a state must be included in your income. Nm taxation and revenue The state must send you Form 1099-G to advise you of the amount you should include in income. Nm taxation and revenue The amount should be reported on Form 1040, line 21. Nm taxation and revenue Persons with disabilities. Nm taxation and revenue   If you have a disability, you must include in income compensation you receive for services you perform unless the compensation is otherwise excluded. Nm taxation and revenue However, you do not include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. Nm taxation and revenue Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work. Nm taxation and revenue Disaster relief grants. Nm taxation and revenue    Do not include post-disaster grants received under the Robert T. Nm taxation and revenue Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, child care, or funeral expenses. Nm taxation and revenue Do not deduct casualty losses or medical expenses that are specifically reimbursed by these disaster relief grants. Nm taxation and revenue If you have deducted a casualty loss for the loss of your personal residence and you later receive a disaster relief grant for the loss of the same residence, you may have to include part or all of the grant in your taxable income. Nm taxation and revenue See Recoveries , earlier. Nm taxation and revenue Unemployment assistance payments under the Act are taxable unemployment compensation. Nm taxation and revenue See Unemployment compensation under Unemployment Benefits, earlier. Nm taxation and revenue Disaster relief payments. Nm taxation and revenue   You can exclude from income any amount you receive that is a qualified disaster relief payment. Nm taxation and revenue A qualified disaster relief payment is an amount paid to you: To reimburse or pay reasonable and necessary personal, family, living, or funeral expenses that result from a qualified disaster; To reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation of your home or repair or replacement of its contents to the extent it is due to a qualified disaster; By a person engaged in the furnishing or sale of transportation as a common carrier because of the death or personal physical injuries incurred as a result of a qualified disaster; or By a federal, state, or local government, or agency, or instrumentality in connection with a qualified disaster in order to promote the general welfare. Nm taxation and revenue You can exclude this amount only to the extent any expense it pays for is not paid for by insurance or otherwise. Nm taxation and revenue The exclusion does not apply if you were a participant or conspirator in a terrorist action or a representative of one. Nm taxation and revenue   A qualified disaster is: A disaster which results from a terrorist or military action; A federally declared disaster; or A disaster which results from an accident involving a common carrier, or from any other event, which is determined to be catastrophic by the Secretary of the Treasury or his or her delegate. Nm taxation and revenue   For amounts paid under item (4), a disaster is qualified if it is determined by an applicable federal, state, or local authority to warrant assistance from the federal, state, or local government, agency, or instrumentality. Nm taxation and revenue Disaster mitigation payments. Nm taxation and revenue   You also can exclude from income any amount you receive that is a qualified disaster mitigation payment. Nm taxation and revenue Qualified disaster mitigation payments are also most commonly paid to you in the period immediately following damage to property as a result of a natural disaster. Nm taxation and revenue However, disaster mitigation payments are used to mitigate (reduce the severity of) potential damage from future natural disasters. Nm taxation and revenue They are paid to you through state and local governments based on the provisions of the Robert T. Nm taxation and revenue Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act. Nm taxation and revenue   You cannot increase the basis or adjusted basis of your property for improvements made with nontaxable disaster mitigation payments. Nm taxation and revenue Home Affordable Modification Program (HAMP). Nm taxation and revenue   If you benefit from Pay-for-Performance Success Payments under HAMP, the payments are not taxable. Nm taxation and revenue Mortgage assistance payments under section 235 of the National Housing Act. Nm taxation and revenue   Payments made under section 235 of the National Housing Act for mortgage assistance are not included in the homeowner's income. Nm taxation and revenue Interest paid for the homeowner under the mortgage assistance program cannot be deducted. Nm taxation and revenue Medicare. Nm taxation and revenue   Medicare benefits received under title XVIII of the Social Security Act are not includible in the gross income of the individuals for whom they are paid. Nm taxation and revenue This includes basic (part A (Hospital Insurance Benefits for the Aged)) and supplementary (part B (Supplementary Medical Insurance Benefits for the Aged)). Nm taxation and revenue Old-age, survivors, and disability insurance benefits (OASDI). Nm taxation and revenue   Generally, OASDI payments under section 202 of title II of the Social Security Act are not includible in the gross income of the individuals to whom they are paid. Nm taxation and revenue This applies to old-age insurance benefits, and insurance benefits for wives, husbands, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment. Nm taxation and revenue Nutrition Program for the Elderly. Nm taxation and revenue    Food benefits you receive under the Nutrition Program for the Elderly are not taxable. Nm taxation and revenue If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you are also eligible for food benefits. Nm taxation and revenue Payments to reduce cost of winter energy. Nm taxation and revenue   Payments made by a state to qualified people to reduce their cost of winter energy use are not taxable. Nm taxation and revenue Other Income The following brief discussions are arranged in alphabetical order. Nm taxation and revenue Other income items briefly discussed below are referenced to publications which provide more topical information. Nm taxation and revenue Activity not for profit. Nm taxation and revenue   You must include on your return income from an activity from which you do not expect to make a profit. Nm taxation and revenue An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. Nm taxation and revenue Enter this income on Form 1040, line 21. Nm taxation and revenue Deductions for expenses related to the activity are limited. Nm taxation and revenue They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040). Nm taxation and revenue See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit. Nm taxation and revenue Alaska Permanent Fund dividend. Nm taxation and revenue   If you received a payment from Alaska's mineral income fund (Alaska Permanent Fund dividend), report it as income on line 21 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Nm taxation and revenue The state of Alaska sends each recipient a document that shows the amount of the payment with the check. Nm taxation and revenue The amount also is reported to IRS. Nm taxation and revenue Alimony. Nm taxation and revenue   Include in your income on Form 1040, line 11, any alimony payments you receive. Nm taxation and revenue Amounts you receive for child support are not income to you. Nm taxation and revenue Alimony and child support payments are discussed in chapter 18. Nm taxation and revenue Bribes. Nm taxation and revenue   If you receive a bribe, include it in your income. Nm taxation and revenue Campaign contributions. Nm taxation and revenue   These contributions are not income to a candidate unless they are diverted to his or her personal use. Nm taxation and revenue To be exempt from tax, the contributions must be spent for campaign purposes or kept in a fund for use in future campaigns. Nm taxation and revenue However, interest earned on bank deposits, dividends received on contributed securities, and net gains realized on sales of contributed securities are taxable and must be reported on Form 1120-POL, U. Nm taxation and revenue S. Nm taxation and revenue Income Tax Return for Certain Political Organizations. Nm taxation and revenue Excess campaign funds transferred to an office account must be included in the officeholder's income on Form 1040, line 21, in the year transferred. Nm taxation and revenue Car pools. Nm taxation and revenue   Do not include in your income amounts you receive from the passengers for driving a car in a car pool to and from work. Nm taxation and revenue These amounts are considered reimbursement for your expenses. Nm taxation and revenue However, this rule does not apply if you have developed car pool arrangements into a profit-making business of transporting workers for hire. Nm taxation and revenue Cash rebates. Nm taxation and revenue   A cash rebate you receive from a dealer or manufacturer of an item you buy is not income, but you must reduce your basis by the amount of the rebate. Nm taxation and revenue Example. Nm taxation and revenue You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. Nm taxation and revenue The $2,000 is not income to you. Nm taxation and revenue Your basis in the car is $22,000. Nm taxation and revenue This is the basis on which you figure gain or loss if you sell the car and depreciation if you use it for business. Nm taxation and revenue Casualty insurance and other reimbursements. Nm taxation and revenue   You generally should not report these reimbursements on your return unless you are figuring gain or loss from the casualty or theft. Nm taxation and revenue See chapter 25 for more information. Nm taxation and revenue Child support payments. Nm taxation and revenue   You should not report these payments on your return. Nm taxation and revenue See chapter 18 for more information. Nm taxation and revenue Court awards and damages. Nm taxation and revenue   To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. Nm taxation and revenue The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. Nm taxation and revenue Include the following as ordinary income. Nm taxation and revenue Interest on any award. Nm taxation and revenue Compensation for lost wages or lost profits in most cases. Nm taxation and revenue Punitive damages, in most cases. Nm taxation and revenue It does not matter if they relate to a physical injury or physical sickness. Nm taxation and revenue Amounts received in settlement of pension rights (if you did not contribute to the plan). Nm taxation and revenue Damages for: Patent or copyright infringement, Breach of contract, or Interference with business operations. Nm taxation and revenue Back pay and damages for emotional distress received to satisfy a claim under title VII of the Civil Rights Act of 1964. Nm taxation and revenue Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income. Nm taxation and revenue   Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments). Nm taxation and revenue Emotional distress. Nm taxation and revenue   Emotional distress itself is not a physical injury or physical sickness, but damages you receive for emotional distress due to a physical injury or sickness are treated as received for the physical injury or sickness. Nm taxation and revenue Do not include them in your income. Nm taxation and revenue   If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, employment discrimination or injury to reputation), you must include the damages in your income, except for any damages you receive for medical care due to that emotional distress. Nm taxation and revenue Emotional distress includes physical symptoms that result from emotional distress, such as headaches, insomnia, and stomach disorders. Nm taxation and revenue Deduction for costs involved in unlawful discrimination suits. Nm taxation and revenue   You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. Nm taxation and revenue For more information, see Publication 525. Nm taxation and revenue Credit card insurance. Nm taxation and revenue   In most cases, if you receive benefits under a credit card disability or unemployment insurance plan, the benefits are taxable to you. Nm taxation and revenue These plans make the minimum monthly payment on your credit card account if you cannot make the payment due to injury, illness, disability, or unemployment. Nm taxation and revenue Report on Form 1040, line 21, the amount of benefits you received during the year that is more than the amount of the premiums you paid during the year. Nm taxation and revenue Down payment assistance. Nm taxation and revenue   If you purchase a home and receive assistance from a nonprofit corporation to make the down payment, that assistance is not included in your income. Nm taxation and revenue If the corporation qualifies as a tax-exempt charitable organization, the assistance is treated as a gift and is included in your basis of the house. Nm taxation and revenue If the corporation does not qualify, the assistance is treated as a rebate or reduction of the purchase price and is not included in your basis. Nm taxation and revenue Employment agency fees. Nm taxation and revenue   If you get a job through an employment agency, and the fee is paid by your employer, the fee is not includible in your income if you are not liable for it. Nm taxation and revenue However, if you pay it and your employer reimburses you for it, it is includible in your income. Nm taxation and revenue Energy conservation subsidies. Nm taxation and revenue   You can exclude from gross income any subsidy provided, either directly or indirectly, by public utilities for the purchase or installation of an energy conservation measure for a dwelling unit. Nm taxation and revenue Energy conservation measure. Nm taxation and revenue   This includes installations or modifications that are primarily designed to reduce consumption of electricity or natural gas, or improve the management of energy demand. Nm taxation and revenue Dwelling unit. Nm taxation and revenue   This includes a house, apartment, condominium, mobile home, boat, or similar property. Nm taxation and revenue If a building or structure contains both dwelling and other units, any subsidy must be properly allocated. Nm taxation and revenue Estate and trust income. Nm taxation and revenue    An estate or trust, unlike a partnership, may have to pay federal income tax. Nm taxation and revenue If you are a beneficiary of an estate or trust, you may be taxed on your share of its income distributed or required to be distributed to you. Nm taxation and revenue However, there is never a double tax. Nm taxation and revenue Estates and trusts file their returns on Form 1041, U. Nm taxation and revenue S. Nm taxation and revenue Income Tax Return for Estates and Trusts, and your share of the income is reported to you on Schedule K-1 (Form 1041). Nm taxation and revenue Current income required to be distributed. Nm taxation and revenue   If you are the beneficiary of an estate or trust that must distribute all of its current income, you must report your share of the distributable net income, whether or not you actually received it. Nm taxation and revenue Current income not required to be distributed. Nm taxation and revenue    If you are the beneficiary of an estate or trust and the fiduciary has the choice of whether to distribute all or part of the current income, you must report: All income that is required to be distributed to you, whether or not it is actually distributed, plus All other amounts actually paid or credited to you, up to the amount of your share of distributable net income. Nm taxation and revenue How to report. Nm taxation and revenue   Treat each item of income the same way that the estate or trust would treat it. Nm taxation and revenue For example, if a trust's dividend income is distributed to you, you report the distribution as dividend income on your return. Nm taxation and revenue The same rule applies to distributions of tax-exempt interest and capital gains. Nm taxation and revenue   The fiduciary of the estate or trust must tell you the type of items making up your share of the estate or trust income and any credits you are allowed on your individual income tax return. Nm taxation and revenue Losses. Nm taxation and revenue   Losses of estates and trusts generally are not deductible by the beneficiaries. Nm taxation and revenue Grantor trust. Nm taxation and revenue   Income earned by a grantor trust is taxable to the grantor, not the beneficiary, if the grantor keeps certain control over the trust. Nm taxation and revenue (The grantor is the one who transferred property to the trust. Nm taxation and revenue ) This rule applies if the property (or income from the property) put into the trust will or may revert (be returned) to the grantor or the grantor's spouse. Nm taxation and revenue   Generally, a trust is a grantor trust if the grantor has a reversionary interest valued (at the date of transfer) at more than 5% of the value of the transferred property. Nm taxation and revenue Expenses paid by another. Nm taxation and revenue   If your personal expenses are paid for by another person, such as a corporation, the payment may be taxable to you depending upon your relationship with that person and the nature of the payment. Nm taxation and revenue But if the payment makes up for a loss caused by that person, and only restores you to the position you were in before the loss, the payment is not includible in your income. Nm taxation and revenue Fees for services. Nm taxation and revenue   Include all fees for your services in your income. Nm taxation and revenue Examples of these fees are amounts you receive for services you perform as: A corporate director, An executor, administrator, or personal representative of an estate, A manager of a trade or business you operated before declaring Chapter 11 bankruptcy, A notary public, or An election precinct official. Nm taxation and revenue Nonemployee compensation. Nm taxation and revenue   If you are not an employee and the fees for your services from the same payer total $600 or more for the year, you may receive a Form 1099-MISC. Nm taxation and revenue You may need to report your fees as self-employment income. Nm taxation and revenue See Self-Employed Persons , in chapter 1, for a discussion of when you are considered self-employed. Nm taxation and revenue Corporate director. Nm taxation and revenue   Corporate director fees are self-employment income. Nm taxation and revenue Report these payments on Schedule C or Schedule C-EZ (Form 1040). Nm taxation and revenue Personal representatives. Nm taxation and revenue   All personal representatives must include in their gross income fees paid to them from an estate. Nm taxation and revenue If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on Form 1040, line 21. Nm taxation and revenue If you are in the trade or business of being an executor, report these fees as self-employment income on Schedule C or Schedule C-EZ (Form 1040). Nm taxation and revenue The fee is not includible in income if it is waived. Nm taxation and revenue Manager of trade or business for bankruptcy estate. Nm taxation and revenue   Include in your income all payments received from your bankruptcy estate for managing or operating a trade or business that you operated before you filed for bankruptcy. Nm taxation and revenue Report this income on Form 1040, line 21. Nm taxation and revenue Notary public. Nm taxation and revenue    Report payments for these services on Schedule C or Schedule C-EZ (Form 1040). Nm taxation and revenue These payments are not subject to self-employment tax. Nm taxation and revenue See the separate instructions for Schedule SE (Form 1040) for details. Nm taxation and revenue Election precinct official. Nm taxation and revenue    You should receive a Form W-2 showing payments for services performed as an election official or election worker. Nm taxation and revenue Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Nm taxation and revenue Foster care providers. Nm taxation and revenue   Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. Nm taxation and revenue However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments. Nm taxation and revenue   A qualified foster individual is a person who: Is living in a foster family home, and Was placed there by: An agency of a state or one of its political subdivisions, or A qualified foster care placement agency. Nm taxation and revenue Difficulty-of-care payments. Nm taxation and revenue   These are additional payments that are designated by the payer as compensation for providing the additional care that is required for physically, mentally, or emotionally handicapped qualified foster individuals. Nm taxation and revenue A state must determine that the additional compensation is needed, and the care for which the payments are made must be provided in your home. Nm taxation and revenue   You must include in your income difficulty-of-care payments received for more than: 10 qualified foster individuals under age 19, or 5 qualified foster individuals age 19 or older. Nm taxation and revenue Maintaining space in home. Nm taxation and revenue   If you are paid to maintain space in your home for emergency foster care, you must include the payment in your income. Nm taxation and revenue Reporting taxable payments. Nm taxation and revenue    If you receive payments that you must include in your income, you are in business as a foster care provider and you are self-employed. Nm taxation and revenue Report the payments on Schedule C or Schedule C-EZ (Form 1040). Nm taxation and revenue See Publication 587, Business Use of Your Home, to help you determine the amount you can deduct for the use of your home. Nm taxation and revenue Found property. Nm taxation and revenue   If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession. Nm taxation and revenue Free tour. Nm taxation and revenue   If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Nm taxation and revenue Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. Nm taxation and revenue You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. Nm taxation and revenue If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040). Nm taxation and revenue Gambling winnings. Nm taxation and revenue   You must include your gambling winnings in income on Form 1040, line 21. Nm taxation and revenue If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. Nm taxation and revenue Lotteries and raffles. Nm taxation and revenue   Winnings from lotteries and raffles are gambling winnings. Nm taxation and revenue In addition to cash winnings, you must include in your income the fair market value of bonds, cars, houses, and other noncash prizes. Nm taxation and revenue    If you win a state lottery prize payable in installments, see Publication 525 for more information. Nm taxation and revenue Form W-2G. Nm taxation and revenue   You may have received a Form W-2G, Certain Gambling Winnings, showing the amount of your gambling winnings and any tax taken out of them. Nm taxation and revenue Include the amount from box 1 on Form 1040, line 21. Nm taxation and revenue Include the amount shown in box 4 on Form 1040, line 62, as federal income tax withheld. Nm taxation and revenue Reporting winnings and recordkeeping. Nm taxation and revenue   For more information on reporting gam