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

For federal tax purposes, the U.S. Armed Forces includes officers and enlisted personnel in all regular and reserve units controlled by the Secretaries of Defense, the Army, Navy and Air Force. The Coast Guard is also included, but not the U.S. Merchant Marine or the American Red Cross. However, these and other support personnel may qualify for certain tax deadline extensions because of their service in a combat zone.

IRS YouTube Video
Combat Pay:
English | Spanish
Military Tax Tips: English | Spanish | ASL


Consumer Alert

June 2012

Taxpayers should be on the lookout for a new, email-based phishing scam now circulating that targets Department of Defense military members, retirees and civilian employees. The email appears to come from Defense Finance and Accounting Services and displays a .mil email address. The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income tax returns, to an address in Florida.

The information on these documents is then used by the scammers to commit identity theft. Typically, identity thieves use someone’s personal data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards or apply for new loans, credit cards, services or benefits in the victim’s name.

For more information on phishing scams, please see Suspicious e-Mails and Identity Theft.


Tax Laws Affecting the Military

These tax laws provide some special benefits for active members of the U.S. Armed Forces, including those serving in combat zones.


Combat Zones


Publications

  • Publication 3, Armed Forces' Tax Guide, addresses a wide range of issues that may affect members of the military:
    • Online — browse the publication to find specific information;
    • Portable Document Format (PDF) — download a copy to read later or print select pages;
    • Hardcopy — order a paper copy by calling 1-800-829-3676. 


News Releases (IR) and Fact Sheets (FS) 

  • IR-2010-47 — Haiti Relief Workers Qualify for Combat Zone Extension; Military Personnel and Designated Civilians Have at Least 180 Days to File and Pay
  • IR-2007-46 — Free Online Tax Filing Available to Many Military Members
  • IR-2006-152 — Active Duty Reservists Get Relief on Retirement Plan Payments; Refunds of 10-Percent Tax Available Back to 2001, New Law Says
  • IR-2006-129 — New Law Expands IRA Options for Military; Many Can Still Contribute for 2004 and 2005
  • IR-2003-132 — IRS Helps Military Personnel Get New Law's Tax Breaks
  • IR-2003-63 — New Tax Scam Targets Families of Armed Forces Members
  • IR-2003-43 — Tax Assistance for Military Families; IRS.gov Page for Armed Forces
  • FS-2003-11 — Information for Taxpayers Serving in the Armed Forces
  • IR-2002-18 — Tax Relief for Troops in the Afghanistan Combat Zone.


Legal Guidance

  • Revenue Ruling 2009-11 — Differential Wage Payments to Active Duty Members of the Uniformed Services
  • Notice 2003-21 — Tax Relief for Those Involved in Operation Iraqi Freedom.
  • Notice 2002-17 — Tax Relief for Those Involved in Operation Enduring Freedom.


Related Items:

Page Last Reviewed or Updated: 04-Sep-2013

The 1040 Ez Tax Forms

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