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1040z Tax Form

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1040z Tax Form

1040z tax form Publication 584-B - Main Content Table of Contents How To Use This Workbook Comments and SuggestionsOrdering forms and publications. 1040z tax form Tax questions. 1040z tax form How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 1040z tax form How To Use This Workbook You can use this workbook by following these five steps. 1040z tax form Read Publication 547 to learn about the tax rules for casualties, disasters, and thefts. 1040z tax form Know the definitions of adjusted basis and fair market value, discussed below. 1040z tax form Fill out Schedules 1 through 6. 1040z tax form Read the Instructions for Form 4684. 1040z tax form Fill out Form 4684 using the information you entered in Schedules 1 through 6. 1040z tax form Use the chart below to find out how to use Schedules 1 through 6 to fill out Form 4684. 1040z tax form Take what's in each row of. 1040z tax form . 1040z tax form . 1040z tax form And enter it on Form 4684. 1040z tax form . 1040z tax form . 1040z tax form Column 1 Line 19 Column 2 Line 20 Column 3 Line 21 Column 4 Line 22 Column 5 Line 23 Column 6 Line 24 Column 7 Line 25 Column 8 Line 26 Column 9 Line 27 Adjusted basis. 1040z tax form   Adjusted basis usually means original cost plus improvements, minus depreciation allowed or allowable (including any section 179 expense deduction), amortization, depletion, etc. 1040z tax form If you did not acquire the property by purchasing it, your basis is determined as discussed in Publication 551, Basis of Assets. 1040z tax form If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, Allocation of Increase in Basis for Property Received From a Decedent, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. 1040z tax form Fair market value. 1040z tax form   Fair market value is the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts. 1040z tax form When filling out Schedules 1 through 6, you need to know the fair market value of the property immediately before and immediately after the disaster or casualty. 1040z tax form Deduction limits. 1040z tax form   If your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. 1040z tax form See the Instructions for Form 4684, Section B. 1040z tax form If the casualty or theft loss involved property used in a passive activity, see Form 8582, Passive Activity Loss Limitations, and its instructions. 1040z tax form   The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule A (Form 1040), must be reduced by 2% of your adjusted gross income. 1040z tax form Employee property is property used in performing services as an employee. 1040z tax form Comments and Suggestions We welcome your comments about this publication and your suggestions for future editions. 1040z tax form You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. 1040z tax form NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. 1040z tax form Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040z tax form You can email us at taxforms@irs. 1040z tax form gov. 1040z tax form Please put “Publications Comment” on the subject line. 1040z tax form You can also send us comments from www. 1040z tax form irs. 1040z tax form gov/formspubs/. 1040z tax form Select “Comment on Tax Forms and Publications” under “Information about. 1040z tax form ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040z tax form Ordering forms and publications. 1040z tax form   Visit www. 1040z tax form irs. 1040z tax form gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. 1040z tax form Internal Revenue Service 1201 N. 1040z tax form Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040z tax form   If you have a tax question, check the information available on IRS. 1040z tax form gov or call 1-800-829-1040. 1040z tax form We cannot answer tax questions sent to either of the above addresses. 1040z tax form 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. 1040z tax form By selecting the method that is best for you, you will have quick and easy access to tax help. 1040z tax form Free help with your return. 1040z tax form   Free help in preparing your return is available nationwide from IRS-certified volunteers. 1040z tax form 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. 1040z tax form 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. 1040z tax form To find the nearest VITA or TCE site, visit IRS. 1040z tax form gov or call 1-800-906-9887 or 1-800-829-1040. 1040z tax form   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040z tax form To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. 1040z tax form aarp. 1040z tax form org/money/taxaide. 1040z tax form   For more information on these programs, go to IRS. 1040z tax form gov and enter keyword “VITA” in the upper right-hand corner. 1040z tax form Internet. 1040z tax form You can access the IRS website at IRS. 1040z tax form gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. 1040z tax form Go to IRS. 1040z tax form gov and click on Where's My Refund. 1040z tax form 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. 1040z tax form If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 1040z tax form 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. 1040z tax form E-file your return. 1040z tax form Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 1040z tax form Download forms, including talking tax forms, instructions, and publications. 1040z tax form Order IRS products online. 1040z tax form Research your tax questions online. 1040z tax form Search publications online by topic or keyword. 1040z tax form Use the online Internal Revenue Code, regulations, or other official guidance. 1040z tax form View Internal Revenue Bulletins (IRBs) published in the last few years. 1040z tax form Figure your withholding allowances using the withholding calculator online at www. 1040z tax form irs. 1040z tax form gov/individuals. 1040z tax form Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. 1040z tax form irs. 1040z tax form gov/individuals. 1040z tax form Sign up to receive local and national tax news by email. 1040z tax form Get information on starting and operating a small business. 1040z tax form Phone. 1040z tax form Many services are available by phone. 1040z tax form   Ordering forms, instructions, and publications. 1040z tax form Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. 1040z tax form You should receive your order within 10 days. 1040z tax form Asking tax questions. 1040z tax form Call the IRS with your tax questions at 1-800-829-1040. 1040z tax form Solving problems. 1040z tax form You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. 1040z tax form An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 1040z tax form Call your local Taxpayer Assistance Center for an appointment. 1040z tax form To find the number, go to www. 1040z tax form irs. 1040z tax form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040z tax form TTY/TDD equipment. 1040z tax form If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 1040z tax form TeleTax topics. 1040z tax form Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 1040z tax form Refund information. 1040z tax form You can check the status of your refund on the new IRS phone app. 1040z tax form Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. 1040z tax form IRS2Go is a new way to provide you with information and tools. 1040z tax form 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). 1040z tax form 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. 1040z tax form If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 1040z tax form 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. 1040z tax form 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. 1040z tax form Other refund information. 1040z tax form To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. 1040z tax form Evaluating the quality of our telephone services. 1040z tax form To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 1040z tax form One method is for a second IRS representative to listen in on or record random telephone calls. 1040z tax form Another is to ask some callers to complete a short survey at the end of the call. 1040z tax form Walk-in. 1040z tax form Many products and services are available on a walk-in basis. 1040z tax form   Products. 1040z tax form You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040z tax form 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. 1040z tax form Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 1040z tax form Services. 1040z tax form You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. 1040z tax form An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 1040z tax form 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. 1040z tax form No appointment is necessary—just walk in. 1040z tax form If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. 1040z tax form A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. 1040z tax form If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. 1040z tax form All other issues will be handled without an appointment. 1040z tax form To find the number of your local office, go to  www. 1040z tax form irs. 1040z tax form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040z tax form Mail. 1040z tax form You can send your order for forms, instructions, and publications to the address below. 1040z tax form You should receive a response within 10 days after your request is received. 1040z tax form  Internal Revenue Service 1201 N. 1040z tax form Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. 1040z tax form   The Taxpayer Advocate Service (TAS) is your voice at the IRS. 1040z tax form Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. 1040z tax form 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. 1040z tax form Remember, the worst thing you can do is nothing at all. 1040z tax form   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. 1040z tax form You face (or your business is facing) an immediate threat of adverse action. 1040z tax form 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. 1040z tax form   If you qualify for our help, we’ll do everything we can to get your problem resolved. 1040z tax form You will be assigned to one advocate who will be with you at every turn. 1040z tax form We have offices in every state, the District of Columbia, and Puerto Rico. 1040z tax form Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. 1040z tax form And our services are always free. 1040z tax form   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. 1040z tax form Our tax toolkit at www. 1040z tax form TaxpayerAdvocate. 1040z tax form irs. 1040z tax form gov can help you understand these rights. 1040z tax form   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. 1040z tax form irs. 1040z tax form gov/advocate. 1040z tax form You can also call our toll-free number at 1-877-777-4778. 1040z tax form   TAS also handles large-scale or systemic problems that affect many taxpayers. 1040z tax form If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. 1040z tax form irs. 1040z tax form gov/advocate. 1040z tax form Low Income Taxpayer Clinics (LITCs). 1040z tax form   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. 1040z tax form Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. 1040z tax form 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. 1040z tax form Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. 1040z tax form For more information and to find a clinic near you, see the LITC page at www. 1040z tax form irs. 1040z tax form gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. 1040z tax form This publication is also available by calling 1-800-829-3676 or at your local IRS office. 1040z tax form Free tax services. 1040z tax form   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. 1040z tax form Learn about free tax information from the IRS, including publications, services, and education and assistance programs. 1040z tax form The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. 1040z tax form The majority of the information and services listed in this publication are available to you free of charge. 1040z tax form If there is a fee associated with a resource or service, it is listed in the publication. 1040z tax form   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 1040z tax form DVD for tax products. 1040z tax form You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. 1040z tax form Prior-year forms, instructions, and publications. 1040z tax form Tax Map: an electronic research tool and finding aid. 1040z tax form Tax law frequently asked questions. 1040z tax form Tax Topics from the IRS telephone response system. 1040z tax form Internal Revenue Code—Title 26 of the U. 1040z tax form S. 1040z tax form Code. 1040z tax form Links to other Internet based Tax Research Materials. 1040z tax form Fill-in, print, and save features for most tax forms. 1040z tax form Internal Revenue Bulletins. 1040z tax form Toll-free and email technical support. 1040z tax form Two releases during the year. 1040z tax form  – The first release will ship the beginning of January 2012. 1040z tax form  – The final release will ship the beginning of March 2012. 1040z tax form Purchase the DVD from National Technical Information Service (NTIS) at www. 1040z tax form irs. 1040z tax form 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). 1040z tax form Prev  Up  Next   Home   More Online Publications
 

The 1040z Tax Form

1040z tax form 2. 1040z tax form   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. 1040z tax form Surviving spouse. 1040z tax form Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. 1040z tax form Payments from a state fund for victims of crime. 1040z tax form Home Affordable Modification Program (HAMP). 1040z tax form Mortgage assistance payments. 1040z tax form Payments to reduce cost of winter energy use. 1040z tax form Nutrition Program for the Elderly. 1040z tax form Reemployment Trade Adjustment Assistance (RTAA). 1040z tax form Generally, income is taxable unless it is specifically exempt (not taxed) by law. 1040z tax form Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. 1040z tax form Under special provisions of the law, certain items are partially or fully exempt from tax. 1040z tax form Provisions that are of special interest to older taxpayers are discussed in this chapter. 1040z tax form Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. 1040z tax form In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. 1040z tax form You need not receive the compensation in cash for it to be taxable. 1040z tax form Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. 1040z tax form Volunteer work. 1040z tax form   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. 1040z tax form Retired Senior Volunteer Program (RSVP). 1040z tax form Foster Grandparent Program. 1040z tax form Senior Companion Program. 1040z tax form Service Corps of Retired Executives (SCORE). 1040z tax form Unemployment compensation. 1040z tax form   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. 1040z tax form More information. 1040z tax form   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. 1040z tax form Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. 1040z tax form A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. 1040z tax form A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. 1040z tax form A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. 1040z tax form More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. 1040z tax form Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. 1040z tax form Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. 1040z tax form These are discussed in Publication 590. 1040z tax form If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. 1040z tax form If you do not file Form 8606 with your return, you may have to pay a $50 penalty. 1040z tax form Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 1040z tax form Early distributions. 1040z tax form   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. 1040z tax form You must include early distributions of taxable amounts in your gross income. 1040z tax form These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. 1040z tax form For purposes of the additional 10% tax, an IRA is a qualified retirement plan. 1040z tax form For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. 1040z tax form After age 59½ and before age 70½. 1040z tax form   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. 1040z tax form Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. 1040z tax form Required distributions. 1040z tax form   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. 1040z tax form See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. 1040z tax form If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. 1040z tax form For purposes of the 50% excise tax, an IRA is a qualified retirement plan. 1040z tax form For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. 1040z tax form See also Excess Accumulations (Insufficient Distributions) in Publication 590. 1040z tax form Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. 1040z tax form However, see Insurance Premiums for Retired Public Safety Officers , later. 1040z tax form If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). 1040z tax form This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. 1040z tax form The rest of each payment is taxable. 1040z tax form However, see Insurance Premiums for Retired Public Safety Officers , later. 1040z tax form You figure the tax-free part of the payment using one of the following methods. 1040z tax form Simplified Method. 1040z tax form You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). 1040z tax form You cannot use this method if your annuity is paid under a nonqualified plan. 1040z tax form General Rule. 1040z tax form You must use this method if your annuity is paid under a nonqualified plan. 1040z tax form You generally cannot use this method if your annuity is paid under a qualified plan. 1040z tax form Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. 1040z tax form You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. 1040z tax form Exclusion limit. 1040z tax form   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. 1040z tax form Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. 1040z tax form This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. 1040z tax form   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. 1040z tax form If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. 1040z tax form The total exclusion may be more than your cost. 1040z tax form Cost. 1040z tax form   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). 1040z tax form Your total cost in the plan includes everything that you paid. 1040z tax form It also includes amounts your employer contributed that were taxable to you when paid. 1040z tax form However, see Foreign employment contributions , later. 1040z tax form   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. 1040z tax form   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. 1040z tax form    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1040z tax form , that you receive. 1040z tax form Foreign employment contributions. 1040z tax form   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. 1040z tax form For details, see Foreign employment contributions in Publication 575. 1040z tax form Withholding. 1040z tax form   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. 1040z tax form However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. 1040z tax form (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. 1040z tax form ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. 1040z tax form   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. 1040z tax form Simplified Method. 1040z tax form   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. 1040z tax form For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. 1040z tax form For any other annuity, this number is the number of monthly annuity payments under the contract. 1040z tax form Who must use the Simplified Method. 1040z tax form   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). 1040z tax form   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. 1040z tax form If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. 1040z tax form Guaranteed payments. 1040z tax form   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. 1040z tax form If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. 1040z tax form Who cannot use the Simplified Method. 1040z tax form   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). 1040z tax form   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. 1040z tax form If you did not have to use the General Rule, you could have chosen to use it. 1040z tax form You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. 1040z tax form   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. 1040z tax form   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. 1040z tax form Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. 1040z tax form   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. 1040z tax form How to use the Simplified Method. 1040z tax form   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. 1040z tax form Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. 1040z tax form   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. 1040z tax form How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. 1040z tax form For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. 1040z tax form    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. 1040z tax form Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. 1040z tax form Single-life annuity. 1040z tax form   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. 1040z tax form Enter on line 3 the number shown for your age on your annuity starting date. 1040z tax form This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 1040z tax form Multiple-lives annuity. 1040z tax form   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. 1040z tax form Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. 1040z tax form For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. 1040z tax form For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. 1040z tax form Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. 1040z tax form   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. 1040z tax form Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. 1040z tax form This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 1040z tax form Fixed-period annuities. 1040z tax form   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. 1040z tax form Line 6. 1040z tax form   The amount on line 6 should include all amounts that could have been recovered in prior years. 1040z tax form If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. 1040z tax form    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. 1040z tax form Example. 1040z tax form Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. 1040z tax form Bill's annuity starting date is January 1, 2013. 1040z tax form The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. 1040z tax form Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. 1040z tax form Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. 1040z tax form Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. 1040z tax form See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. 1040z tax form You can find a blank version of this worksheet in Publication 575. 1040z tax form (The references in the illustrated worksheet are to sections in Publication 575). 1040z tax form His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. 1040z tax form Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). 1040z tax form Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. 1040z tax form The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. 1040z tax form If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. 1040z tax form This deduction is not subject to the 2%-of-adjusted-gross-income limit. 1040z tax form Worksheet 2-A. 1040z tax form Simplified Method Worksheet—Illustrated 1. 1040z tax form Enter the total pension or annuity payments received this year. 1040z tax form Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 1040z tax form $ 14,400 2. 1040z tax form Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. 1040z tax form 31,000   Note. 1040z tax form If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 1040z tax form Otherwise, go to line 3. 1040z tax form     3. 1040z tax form Enter the appropriate number from Table 1 below. 1040z tax form But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. 1040z tax form 310 4. 1040z tax form Divide line 2 by the number on line 3 4. 1040z tax form 100 5. 1040z tax form Multiply line 4 by the number of months for which this year's payments were made. 1040z tax form If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 1040z tax form Otherwise, go to line 6 5. 1040z tax form 1,200 6. 1040z tax form Enter any amount previously recovered tax free in years after 1986. 1040z tax form This is the amount shown on line 10 of your worksheet for last year 6. 1040z tax form 0 7. 1040z tax form Subtract line 6 from line 2 7. 1040z tax form 31,000 8. 1040z tax form Enter the smaller of line 5 or line 7 8. 1040z tax form 1,200 9. 1040z tax form Taxable amount for year. 1040z tax form Subtract line 8 from line 1. 1040z tax form Enter the result, but not less than zero. 1040z tax form Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 1040z tax form Note. 1040z tax form If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 1040z tax form If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. 1040z tax form 9. 1040z tax form $ 13,200 10. 1040z tax form Was your annuity starting date before 1987? □ Yes. 1040z tax form STOP. 1040z tax form Do not complete the rest of this worksheet. 1040z tax form  ☑ No. 1040z tax form Add lines 6 and 8. 1040z tax form This is the amount you have recovered tax free through 2013. 1040z tax form You will need this number if you need to fill out this worksheet next year. 1040z tax form 10. 1040z tax form 1,200 11. 1040z tax form Balance of cost to be recovered. 1040z tax form Subtract line 10 from line 2. 1040z tax form If zero, you will not have to complete this worksheet next year. 1040z tax form The payments you receive next year will generally be fully taxable 11. 1040z tax form $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 1040z tax form   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . 1040z tax form . 1040z tax form . 1040z tax form   BEFORE November 19, 1996, enter on line 3 . 1040z tax form . 1040z tax form . 1040z tax form AFTER November 18, 1996, enter on line 3 . 1040z tax form . 1040z tax form . 1040z tax form   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . 1040z tax form . 1040z tax form . 1040z tax form   THEN enter on line 3 . 1040z tax form . 1040z tax form . 1040z tax form         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. 1040z tax form   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. 1040z tax form   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. 1040z tax form The retiree's cost has already been recovered tax free. 1040z tax form   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. 1040z tax form The resulting tax-free amount will then remain fixed. 1040z tax form Any increases in the survivor annuity are fully taxable. 1040z tax form   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. 1040z tax form See Simplified Method , earlier. 1040z tax form How to report. 1040z tax form   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. 1040z tax form If your pension or annuity is fully taxable, enter it on line 16b. 1040z tax form Do not make an entry on line 16a. 1040z tax form   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. 1040z tax form If your pension or annuity is fully taxable, enter it on line 12b. 1040z tax form Do not make an entry on line 12a. 1040z tax form   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. 1040z tax form If your pension or annuity is fully taxable, enter it on line 17b. 1040z tax form Do not make an entry on line 17a. 1040z tax form Example. 1040z tax form You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. 1040z tax form You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). 1040z tax form The entire $1,200 is taxable. 1040z tax form You include $1,200 only on Form 1040, line 16b. 1040z tax form Joint return. 1040z tax form   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. 1040z tax form Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. 1040z tax form Form 1099-R. 1040z tax form   You should receive a Form 1099-R for your pension or annuity. 1040z tax form Form 1099-R shows your pension or annuity for the year and any income tax withheld. 1040z tax form You should receive a Form W-2 if you receive distributions from certain nonqualified plans. 1040z tax form You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. 1040z tax form Generally, you should be sent these forms by January 31, 2014. 1040z tax form Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. 1040z tax form Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. 1040z tax form For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. 1040z tax form The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. 1040z tax form See Tax on Early Distributions, later. 1040z tax form Lump-sum distributions. 1040z tax form   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. 1040z tax form The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. 1040z tax form The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. 1040z tax form You may be able to use the 10-year tax option to figure tax on the ordinary income part. 1040z tax form Form 1099-R. 1040z tax form   If you receive a total distribution from a plan, you should receive a Form 1099-R. 1040z tax form If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. 1040z tax form The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. 1040z tax form More information. 1040z tax form   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. 1040z tax form Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. 1040z tax form The tax applies to the taxable part of the distribution. 1040z tax form For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). 1040z tax form  An IRA is also a qualified retirement plan for purposes of this tax. 1040z tax form General exceptions to tax. 1040z tax form   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. 1040z tax form Additional exceptions. 1040z tax form   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. 1040z tax form See Publication 575 for details. 1040z tax form Reporting tax. 1040z tax form   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. 1040z tax form 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. 1040z tax form See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. 1040z tax form Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. 1040z tax form Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. 1040z tax form However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. 1040z tax form For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). 1040z tax form  An IRA is also a qualified retirement plan for purposes of this tax. 1040z tax form An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. 1040z tax form 5% owners. 1040z tax form   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. 1040z tax form See Publication 575 for more information. 1040z tax form Amount of tax. 1040z tax form   If you do not receive the required minimum distribution, you are subject to an additional tax. 1040z tax form The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. 1040z tax form You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. 1040z tax form Form 5329. 1040z tax form   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. 1040z tax form Additional information. 1040z tax form   For more detailed information on the tax on excess accumulation, see Publication 575. 1040z tax form Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. 1040z tax form The premiums can be for coverage for you, your spouse, or dependent(s). 1040z tax form The distribution must be made directly from the plan to the insurance provider. 1040z tax form You can exclude from income the smaller of the amount of the insurance premiums or $3,000. 1040z tax form You can only make this election for amounts that would otherwise be included in your income. 1040z tax form The amount excluded from your income cannot be used to claim a medical expense deduction. 1040z tax form An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. 1040z tax form If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. 1040z tax form The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. 1040z tax form Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 1040z tax form Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 1040z tax form Enter “PSO” next to the appropriate line on which you report the taxable amount. 1040z tax form Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. 1040z tax form These categories are treated differently for income tax purposes. 1040z tax form Social security equivalent benefits. 1040z tax form   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. 1040z tax form This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. 1040z tax form (See Social Security and Equivalent Railroad Retirement Benefits , later. 1040z tax form ) Non-social security equivalent benefits. 1040z tax form   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). 1040z tax form It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. 1040z tax form This category of benefits is treated as an amount received from a qualified employee plan. 1040z tax form This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. 1040z tax form Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. 1040z tax form More information. 1040z tax form   For more information about railroad retirement benefits, see Publication 575. 1040z tax form Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. 1040z tax form But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. 1040z tax form For more information, including information about veterans' benefits and insurance, see Publication 525. 1040z tax form Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. 1040z tax form Social security benefits include monthly retirement, survivor, and disability benefits. 1040z tax form They do not include supplemental security income (SSI) payments, which are not taxable. 1040z tax form Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. 1040z tax form They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. 1040z tax form If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. 1040z tax form Are Any of Your Benefits Taxable? Note. 1040z tax form When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. 1040z tax form  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. 1040z tax form When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. 1040z tax form S. 1040z tax form savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. 1040z tax form Figuring total income. 1040z tax form   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. 1040z tax form If that total amount is more than your base amount, part of your benefits may be taxable. 1040z tax form If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. 1040z tax form Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. 1040z tax form If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. 1040z tax form If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. 1040z tax form Worksheet 2-B. 1040z tax form A Quick Way To Check if Your Benefits May Be Taxable A. 1040z tax form Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 1040z tax form Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. 1040z tax form (If you received more than one form, combine the amounts from box 5  and enter the total. 1040z tax form ) A. 1040z tax form     Note. 1040z tax form If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. 1040z tax form     B. 1040z tax form Enter one-half of the amount on line A B. 1040z tax form   C. 1040z tax form Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 1040z tax form   D. 1040z tax form Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. 1040z tax form S. 1040z tax form savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. 1040z tax form   E. 1040z tax form Add lines B, C, and D and enter the total E. 1040z tax form   F. 1040z tax form If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. 1040z tax form   G. 1040z tax form Is the amount on line F less than or equal to the amount on line E? □ No. 1040z tax form None of your benefits are taxable this year. 1040z tax form  □ Yes. 1040z tax form Some of your benefits may be taxable. 1040z tax form To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. 1040z tax form     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. 1040z tax form Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. 1040z tax form It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. 1040z tax form If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. 1040z tax form Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. 1040z tax form Your repayments are shown in box 4. 1040z tax form The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). 1040z tax form Use the amount in box 5 to figure whether any of your benefits are taxable. 1040z tax form Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. 1040z tax form If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. 1040z tax form If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. 1040z tax form For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. 1040z tax form How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. 1040z tax form Generally, the higher that total amount, the greater the taxable part of your benefits. 1040z tax form Maximum taxable part. 1040z tax form   The taxable part of your benefits usually cannot be more than 50%. 1040z tax form However, up to 85% of your benefits can be taxable if either of the following situations applies to you. 1040z tax form The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). 1040z tax form You are married filing separately and lived with your spouse at any time during 2013. 1040z tax form   If you are a nonresident alien, 85% of your benefits are taxable. 1040z tax form However, this income is exempt under some tax treaties. 1040z tax form Which worksheet to use. 1040z tax form   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. 1040z tax form However, you will need to use a different worksheet(s) if any of the following situations applies to you. 1040z tax form You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. 1040z tax form In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. 1040z tax form Situation (1) does not apply and you take one or more of the following exclusions. 1040z tax form Interest from qualified U. 1040z tax form S. 1040z tax form savings bonds (Form 8815). 1040z tax form Employer-provided adoption benefits (Form 8839). 1040z tax form Foreign earned income or housing (Form 2555 or Form 2555-EZ). 1040z tax form Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. 1040z tax form In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. 1040z tax form You received a lump-sum payment for an earlier year. 1040z tax form In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. 1040z tax form See Lump-Sum Election , later. 1040z tax form How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. 1040z tax form You cannot use Form 1040EZ. 1040z tax form Reporting on Form 1040. 1040z tax form   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. 1040z tax form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. 1040z tax form Reporting on Form 1040A. 1040z tax form   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. 1040z tax form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. 1040z tax form Reporting on Form 1040NR. 1040z tax form   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. 1040z tax form Benefits not taxable. 1040z tax form   If you are filing Form 1040EZ, do not report any benefits on your tax return. 1040z tax form If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. 1040z tax form Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 1040z tax form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. 1040z tax form Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. 1040z tax form This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. 1040z tax form No part of the lump-sum death benefit is subject to tax. 1040z tax form For more information about the lump-sum death benefit, visit the Social Security Administration website at www. 1040z tax form SSA. 1040z tax form gov, and use keyword: death benefit. 1040z tax form Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. 1040z tax form However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. 1040z tax form You can elect this method if it lowers your taxable benefits. 1040z tax form See Publication 915 for more information. 1040z tax form Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. 1040z tax form If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. 1040z tax form If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. 1040z tax form If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. 1040z tax form S. 1040z tax form Railroad Retirement Board field office. 1040z tax form Joint return. 1040z tax form   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. 1040z tax form You do this to get your net benefits when figuring if your combined benefits are taxable. 1040z tax form Repayment of benefits received in an earlier year. 1040z tax form   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. 1040z tax form   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. 1040z tax form Claim it on Schedule A (Form 1040), line 23. 1040z tax form   If this deduction is more than $3,000, you have to follow some special instructions. 1040z tax form See Publication 915 for those instructions. 1040z tax form Sickness and Injury Benefits Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. 1040z tax form If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. 1040z tax form However, certain payments may not be taxable to you. 1040z tax form Some of these payments are discussed later in this section. 1040z tax form Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. 1040z tax form Cost paid by you. 1040z tax form   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. 1040z tax form If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. 1040z tax form Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. 1040z tax form You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. 1040z tax form Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 1040z tax form If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. 1040z tax form See Credit for the Elderly or the Disabled, later. 1040z tax form For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. 1040z tax form Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 1040z tax form Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. 1040z tax form For more information on pensions and annuities, see Publication 575. 1040z tax form Retirement and profit-sharing plans. 1040z tax form   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. 1040z tax form The payments must be reported as a pension or annuity. 1040z tax form Accrued leave payment. 1040z tax form   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 1040z tax form The payment is not a disability payment. 1040z tax form Include it in your income in the tax year you receive it. 1040z tax form Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. 1040z tax form Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. 1040z tax form However, the amount you can exclude may be limited. 1040z tax form Long-term care insurance contracts are discussed in more detail in Publication 525. 1040z tax form Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. 1040z tax form The exemption also applies to your survivors. 1040z tax form The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. 1040z tax form If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 1040z tax form For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 1040z tax form Return to work. 1040z tax form   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. 1040z tax form Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. 1040z tax form Federal Employees' Compensation Act (FECA). 1040z tax form   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. 1040z tax form However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. 1040z tax form Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. 1040z tax form Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. 1040z tax form    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 1040z tax form For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 1040z tax form Other compensation. 1040z tax form   Many other amounts you receive as compensation for sickness or injury are not taxable. 1040z tax form These include the following amounts. 1040z tax form Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. 1040z tax form Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. 1040z tax form Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). 1040z tax form This compensation must be based only on the injury and not on the period of your absence from work. 1040z tax form These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. 1040z tax form Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. 1040z tax form This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. 1040z tax form Proceeds not received in installments. 1040z tax form   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. 1040z tax form If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. 1040z tax form Proceeds received in installments. 1040z tax form   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. 1040z tax form   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. 1040z tax form Include anything over this excluded part in your income as interest. 1040z tax form Installments for life. 1040z tax form   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. 1040z tax form If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. 1040z tax form Surviving spouse. 1040z tax form   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. 1040z tax form If you remarry, you can continue to take the exclusion. 1040z tax form Surrender of policy for cash. 1040z tax form   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. 1040z tax form In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. 1040z tax form You should receive a Form 1099-R showing the total proceeds and the taxable part. 1040z tax form Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. 1040z tax form Endowment Contract Proceeds An endowment contract is a policy that pays over to you a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. 1040z tax form Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. 1040z tax form To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. 1040z tax form Include in your income the part of the lump-sum payment that is more than your cost. 1040z tax form Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. 1040z tax form The tax treatment of an annuity is explained in Publication 575. 1040z tax form For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. 1040z tax form This election must be made within 60 days after the lump-sum payment first becomes payable to you. 1040z tax form Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. 1040z tax form However, see Exception , later. 1040z tax form For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. 1040z tax form Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. 1040z tax form In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. 1040z tax form Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill. 1040z tax form To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. 1040z tax form Terminally or chronically ill defined. 1040z tax form   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. 1040z tax form A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. 1040z tax form The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. 1040z tax form The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. 1040z tax form Exception. 1040z tax form   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. 1040z tax form Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. 1040z tax form Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. 1040z tax form You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. 1040z tax form Main home. 1040z tax form   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. 1040z tax form Repaying the first-time homebuyer credit because you sold your home. 1040z tax form   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. 1040z tax form For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. 1040z tax form   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. 1040z tax form If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. 1040z tax form If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. 1040z tax form   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. 1040z tax form Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. 1040z tax form You meet the ownership test. 1040z tax form You meet the use test. 1040z tax form During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. 1040z tax form You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . 1040z tax form Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. 1040z tax form This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). 1040z tax form Exception to ownership and use tests. 1040z tax form   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. 1040z tax form Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. 1040z tax form The maximum amount you can exclude will be reduced. 1040z tax form See Publication 523, Selling Your Home, for more information. 1040z tax form Exception to use test for individuals with a disability. 1040z tax form   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. 1040z tax form Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. 1040z tax form   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. 1040z tax form Exception to ownership test for property acquired in a like-kind exchange. 1040z tax form   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. 1040z tax form This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. 1040z tax form A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. 1040z tax form See Publication 523 for more information. 1040z tax form Period of nonqualified use. 1040z tax form   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. 1040z tax form Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. 1040z tax form See Publication 523 for more information. 1040z tax form Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. 1040z tax form However, see Special rules for joint returns , next. 1040z tax form Special rules for joint returns. 1040z tax form   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. 1040z tax form You are married and file a joint return for the year. 1040z tax form Either you or your spouse meets the ownership test. 1040z tax form Both you and your spouse meet the use test. 1040z tax form During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. 1040z tax form Sale of home by surviving spouse. 1040z tax form   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. 1040z tax form   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. 1040z tax form The sale or exchange took place no more than 2 years after the date of death of your spouse. 1040z tax form You have not remarried. 1040z tax form You and your spouse met the use test at the time of your spouse's death. 1040z tax form You or your spouse met the ownership test at the time of your spouse's death. 1040z tax form Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. 1040z tax form Home transferred from spouse. 1040z tax form   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. 1040z tax form Use of home after divorce. 1040z tax form   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. 1040z tax form Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. 1040z tax form However, you must meet the ownership and use tests. 1040z tax form See Publication 523 for more information. 1040z tax form Depreciation after May 6, 1997. 1040z tax form   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. 1040z tax form See Publication 523 for more information. 1040z tax form Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. 1040z tax form If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. 1040z tax form Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. 1040z tax form If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. 1040z tax form See Publication 523 for more information. 1040z tax form Reverse Mortgages A revers