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2013 Ohio 1040ez Instructions

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2013 Ohio 1040ez Instructions

2013 ohio 1040ez instructions 11. 2013 ohio 1040ez instructions   Social Security and Equivalent Railroad Retirement Benefits Table of Contents Introduction Useful Items - You may want to see: Are Any of Your Benefits Taxable? How To Report Your BenefitsHow Much Is Taxable? Examples Deductions Related to Your BenefitsRepayments More Than Gross Benefits Introduction This chapter explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. 2013 ohio 1040ez instructions It explains the following topics. 2013 ohio 1040ez instructions How to figure whether your benefits are taxable. 2013 ohio 1040ez instructions How to use the social security benefits worksheet (with examples). 2013 ohio 1040ez instructions How to report your taxable benefits. 2013 ohio 1040ez instructions How to treat repayments that are more than the benefits you received during the year. 2013 ohio 1040ez instructions Social security benefits include monthly retirement, survivor, and disability benefits. 2013 ohio 1040ez instructions They do not include supplemental security income (SSI) payments, which are not taxable. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. 2013 ohio 1040ez instructions If you received these benefits during 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, or Form RRB-1099, Payments by the Railroad Retirement Board. 2013 ohio 1040ez instructions These forms show the amounts received and repaid, and taxes withheld for the year. 2013 ohio 1040ez instructions You may receive more than one of these forms for the same year. 2013 ohio 1040ez instructions You should add the amounts shown on all the Forms SSA-1099 and Forms RRB-1099 you receive for the year to determine the total amounts received and repaid, and taxes withheld for that year. 2013 ohio 1040ez instructions See the Appendix at the end of Publication 915 for more information. 2013 ohio 1040ez instructions Note. 2013 ohio 1040ez instructions When the term “benefits” is used in this chapter, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. 2013 ohio 1040ez instructions What is not covered in this chapter. 2013 ohio 1040ez instructions   This chapter does not cover the tax rules for the following railroad retirement benefits. 2013 ohio 1040ez instructions Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits. 2013 ohio 1040ez instructions Tier 2 benefits. 2013 ohio 1040ez instructions Vested dual benefits. 2013 ohio 1040ez instructions Supplemental annuity benefits. 2013 ohio 1040ez instructions For information on these benefits, see Publication 575, Pension and Annuity Income. 2013 ohio 1040ez instructions   This chapter does not cover the tax rules for social security benefits reported on Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board. 2013 ohio 1040ez instructions For information about these benefits, see Publication 519, U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions Tax Guide for Aliens, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits. 2013 ohio 1040ez instructions   This chapter also does not cover the tax rules for foreign social security benefits. 2013 ohio 1040ez instructions These benefits are taxable as annuities, unless they are exempt from U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions tax or treated as a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions social security benefit under a tax treaty. 2013 ohio 1040ez instructions Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 915 Social Security and Equivalent Railroad Retirement Benefits Forms (and Instructions) 1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement RRB-1099 Payments by the Railroad Retirement Board W-4V Voluntary Withholding Request Are Any of Your Benefits Taxable? To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. 2013 ohio 1040ez instructions When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned by bona fide residents of American Samoa or Puerto Rico. 2013 ohio 1040ez instructions Children's benefits. 2013 ohio 1040ez instructions   The rules in this chapter apply to benefits received by children. 2013 ohio 1040ez instructions See Who is taxed , later. 2013 ohio 1040ez instructions Figuring total income. 2013 ohio 1040ez instructions   To figure the total of one-half of your benefits plus your other income, use Worksheet 11-1 later in this discussion. 2013 ohio 1040ez instructions If the total is more than your base amount, part of your benefits may be taxable. 2013 ohio 1040ez instructions    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. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions    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. 2013 ohio 1040ez instructions If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. 2013 ohio 1040ez instructions Base amount. 2013 ohio 1040ez instructions   Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er), $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. 2013 ohio 1040ez instructions Worksheet 11-1. 2013 ohio 1040ez instructions   You can use Worksheet 11-1 to figure the amount of income to compare with your base amount. 2013 ohio 1040ez instructions This is a quick way to check whether some of your benefits may be taxable. 2013 ohio 1040ez instructions Worksheet 11-1. 2013 ohio 1040ez instructions A Quick Way To Check if Your Benefits May Be Taxable A. 2013 ohio 1040ez instructions Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2013 ohio 1040ez instructions Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. 2013 ohio 1040ez instructions (If you received more than one form, combine the amounts from box 5 and enter the total. 2013 ohio 1040ez instructions ) A. 2013 ohio 1040ez instructions   Note. 2013 ohio 1040ez instructions If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. 2013 ohio 1040ez instructions B. 2013 ohio 1040ez instructions Enter one-half of the amount on line A B. 2013 ohio 1040ez instructions   C. 2013 ohio 1040ez instructions Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2013 ohio 1040ez instructions   D. 2013 ohio 1040ez instructions Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. 2013 ohio 1040ez instructions   E. 2013 ohio 1040ez instructions Add lines B, C, and D E. 2013 ohio 1040ez instructions   Note. 2013 ohio 1040ez instructions Compare the amount on line E to your base amount for your filing status. 2013 ohio 1040ez instructions If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. 2013 ohio 1040ez instructions If the amount on line E is more than your base amount, some of your benefits may be taxable. 2013 ohio 1040ez instructions You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). 2013 ohio 1040ez instructions If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits. 2013 ohio 1040ez instructions Example. 2013 ohio 1040ez instructions You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. 2013 ohio 1040ez instructions In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. 2013 ohio 1040ez instructions Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. 2013 ohio 1040ez instructions You also received a taxable pension of $22,800 and interest income of $500. 2013 ohio 1040ez instructions You did not have any tax-exempt interest income. 2013 ohio 1040ez instructions Your benefits are not taxable for 2013 because your income, as figured in Worksheet 11-1, is not more than your base amount ($32,000) for married filing jointly. 2013 ohio 1040ez instructions Even though none of your benefits are taxable, you must file a return for 2013 because your taxable gross income ($23,300) exceeds the minimum filing requirement amount for your filing status. 2013 ohio 1040ez instructions Filled-in Worksheet 11-1. 2013 ohio 1040ez instructions A Quick Way To Check if Your Benefits May Be Taxable A. 2013 ohio 1040ez instructions Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2013 ohio 1040ez instructions Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. 2013 ohio 1040ez instructions (If you received more than one form, combine the amounts from box 5 and enter the total. 2013 ohio 1040ez instructions ) A. 2013 ohio 1040ez instructions $11,000 Note. 2013 ohio 1040ez instructions If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. 2013 ohio 1040ez instructions B. 2013 ohio 1040ez instructions Enter one-half of the amount on line A B. 2013 ohio 1040ez instructions 5,500 C. 2013 ohio 1040ez instructions Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2013 ohio 1040ez instructions 23,300 D. 2013 ohio 1040ez instructions Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. 2013 ohio 1040ez instructions -0- E. 2013 ohio 1040ez instructions Add lines B, C, and D E. 2013 ohio 1040ez instructions $28,800 Note. 2013 ohio 1040ez instructions Compare the amount on line E to your base amount for your filing status. 2013 ohio 1040ez instructions If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. 2013 ohio 1040ez instructions If the amount on line E is more than your base amount, some of your benefits may be taxable. 2013 ohio 1040ez instructions You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). 2013 ohio 1040ez instructions If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits. 2013 ohio 1040ez instructions Who is taxed. 2013 ohio 1040ez instructions   Benefits are included in the taxable income (to the extent they are taxable) of the person who has the legal right to receive the benefits. 2013 ohio 1040ez instructions For example, if you and your child receive benefits, but the check for your child is made out in your name, you must use only your part of the benefits to see whether any benefits are taxable to you. 2013 ohio 1040ez instructions One-half of the part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to your child. 2013 ohio 1040ez instructions Repayment of benefits. 2013 ohio 1040ez instructions   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. 2013 ohio 1040ez instructions It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. 2013 ohio 1040ez instructions If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. 2013 ohio 1040ez instructions   Your gross benefits are shown in box 3 of Form SSA-1099 or RRB-1099. 2013 ohio 1040ez instructions Your repayments are shown in box 4. 2013 ohio 1040ez instructions The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). 2013 ohio 1040ez instructions Use the amount in box 5 to figure whether any of your benefits are taxable. 2013 ohio 1040ez instructions Tax withholding and estimated tax. 2013 ohio 1040ez instructions   You can choose to have federal income tax withheld from your social security benefits and/or the SSEB portion of your tier 1 railroad retirement benefits. 2013 ohio 1040ez instructions If you choose to do this, you must complete a Form W-4V. 2013 ohio 1040ez instructions   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. 2013 ohio 1040ez instructions For details, see Publication 505 or the instructions for Form 1040-ES. 2013 ohio 1040ez instructions How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. 2013 ohio 1040ez instructions You cannot use Form 1040EZ. 2013 ohio 1040ez instructions Reporting on Form 1040. 2013 ohio 1040ez instructions   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 20a and the taxable part on line 20b. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions Reporting on Form 1040A. 2013 ohio 1040ez instructions   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 14a and the taxable part on line 14b. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions Benefits not taxable. 2013 ohio 1040ez instructions   If you are filing Form 1040EZ, do not report any benefits on your tax return. 2013 ohio 1040ez instructions If you are filing Form 1040 or Form 1040A, report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. 2013 ohio 1040ez instructions Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions How Much Is Taxable? If part of your benefits are taxable, how much is taxable depends on the total amount of your benefits and other income. 2013 ohio 1040ez instructions Generally, the higher that total amount, the greater the taxable part of your benefits. 2013 ohio 1040ez instructions Maximum taxable part. 2013 ohio 1040ez instructions   Generally, up to 50% of your benefits will be taxable. 2013 ohio 1040ez instructions However, up to 85% of your benefits can be taxable if either of the following situations applies to you. 2013 ohio 1040ez instructions 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). 2013 ohio 1040ez instructions You are married filing separately and lived with your spouse at any time during 2013. 2013 ohio 1040ez instructions Which worksheet to use. 2013 ohio 1040ez instructions   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or Form 1040A. 2013 ohio 1040ez instructions You can use either that worksheet or Worksheet 1 in Publication 915, unless any of the following situations applies to you. 2013 ohio 1040ez instructions You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions Situation (1) does not apply and you take an exclusion for interest from qualified U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions savings bonds (Form 8815), for adoption benefits (Form 8839), for foreign earned income or housing (Form 2555 or Form 2555-EZ), or for income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. 2013 ohio 1040ez instructions In this situation, you must use Worksheet 1 in Publication 915 to figure your taxable benefits. 2013 ohio 1040ez instructions You received a lump-sum payment for an earlier year. 2013 ohio 1040ez instructions In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. 2013 ohio 1040ez instructions See Lump-sum election next. 2013 ohio 1040ez instructions Lump-sum election. 2013 ohio 1040ez instructions   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. 2013 ohio 1040ez instructions    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. 2013 ohio 1040ez instructions No part of the lump-sum death benefit is subject to tax. 2013 ohio 1040ez instructions   Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions You can elect this method if it lowers your taxable benefits. 2013 ohio 1040ez instructions Making the election. 2013 ohio 1040ez instructions   If you received a lump-sum benefit payment in 2013 that includes benefits for one or more earlier years, follow the instructions in Publication 915 under Lump-Sum Election to see whether making the election will lower your taxable benefits. 2013 ohio 1040ez instructions That discussion also explains how to make the election. 2013 ohio 1040ez instructions    Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. 2013 ohio 1040ez instructions Do not file an amended return for the earlier year. 2013 ohio 1040ez instructions Examples The following are a few examples you can use as a guide to figure the taxable part of your benefits. 2013 ohio 1040ez instructions Example 1. 2013 ohio 1040ez instructions George White is single and files Form 1040 for 2013. 2013 ohio 1040ez instructions He received the following income in 2013: Fully taxable pension $18,600 Wages from part-time job 9,400 Taxable interest income 990 Total $28,990 George also received social security benefits during 2013. 2013 ohio 1040ez instructions The Form SSA-1099 he received in January 2014 shows $5,980 in box 5. 2013 ohio 1040ez instructions To figure his taxable benefits, George completes the worksheet shown here. 2013 ohio 1040ez instructions Filled-in Worksheet 1. 2013 ohio 1040ez instructions Figuring Your Taxable Benefits 1. 2013 ohio 1040ez instructions Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2013 ohio 1040ez instructions Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,980 2. 2013 ohio 1040ez instructions Enter one-half of line 1 2,990 3. 2013 ohio 1040ez instructions Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. 2013 ohio 1040ez instructions     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 28,990 4. 2013 ohio 1040ez instructions Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. 2013 ohio 1040ez instructions Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. 2013 ohio 1040ez instructions Combine lines 2, 3, 4, and 5 31,980 7. 2013 ohio 1040ez instructions Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. 2013 ohio 1040ez instructions     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. 2013 ohio 1040ez instructions Is the amount on line 7 less than the amount on line 6?     No. 2013 ohio 1040ez instructions None of your social security benefits are taxable. 2013 ohio 1040ez instructions Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2013 ohio 1040ez instructions   Yes. 2013 ohio 1040ez instructions Subtract line 7 from line 6 31,980 9. 2013 ohio 1040ez instructions 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 25,000   Note. 2013 ohio 1040ez instructions If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. 2013 ohio 1040ez instructions 85) and enter the result on line 17. 2013 ohio 1040ez instructions Then go to line 18. 2013 ohio 1040ez instructions   10. 2013 ohio 1040ez instructions Is the amount on line 9 less than the amount on line 8?     No. 2013 ohio 1040ez instructions None of your benefits are taxable. 2013 ohio 1040ez instructions Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2013 ohio 1040ez instructions If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. 2013 ohio 1040ez instructions     Yes. 2013 ohio 1040ez instructions Subtract line 9 from line 8 6,980 11. 2013 ohio 1040ez instructions Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 9,000 12. 2013 ohio 1040ez instructions Subtract line 11 from line 10. 2013 ohio 1040ez instructions If zero or less, enter -0- -0- 13. 2013 ohio 1040ez instructions Enter the smaller of line 10 or line 11 6,980 14. 2013 ohio 1040ez instructions Enter one-half of line 13 3,490 15. 2013 ohio 1040ez instructions Enter the smaller of line 2 or line 14 2,990 16. 2013 ohio 1040ez instructions Multiply line 12 by 85% (. 2013 ohio 1040ez instructions 85). 2013 ohio 1040ez instructions If line 12 is zero, enter -0- -0- 17. 2013 ohio 1040ez instructions Add lines 15 and 16 2,990 18. 2013 ohio 1040ez instructions Multiply line 1 by 85% (. 2013 ohio 1040ez instructions 85) 5,083 19. 2013 ohio 1040ez instructions Taxable benefits. 2013 ohio 1040ez instructions Enter the smaller of line 17 or line 18. 2013 ohio 1040ez instructions Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $2,990 The amount on line 19 of George's worksheet shows that $2,990 of his social security benefits is taxable. 2013 ohio 1040ez instructions On line 20a of his Form 1040, George enters his net benefits of $5,980. 2013 ohio 1040ez instructions On line 20b, he enters his taxable benefits of $2,990. 2013 ohio 1040ez instructions Example 2. 2013 ohio 1040ez instructions Ray and Alice Hopkins file a joint return on Form 1040A for 2013. 2013 ohio 1040ez instructions Ray is retired and received a fully taxable pension of $15,500. 2013 ohio 1040ez instructions He also received social security benefits, and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. 2013 ohio 1040ez instructions Alice worked during the year and had wages of $14,000. 2013 ohio 1040ez instructions She made a deductible payment to her IRA account of $1,000. 2013 ohio 1040ez instructions Ray and Alice have two savings accounts with a total of $250 in taxable interest income. 2013 ohio 1040ez instructions They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. 2013 ohio 1040ez instructions They find none of Ray's social security benefits are taxable. 2013 ohio 1040ez instructions On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. 2013 ohio 1040ez instructions Filled-in Worksheet 1. 2013 ohio 1040ez instructions Figuring Your Taxable Benefits 1. 2013 ohio 1040ez instructions Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2013 ohio 1040ez instructions Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,600 2. 2013 ohio 1040ez instructions Enter one-half of line 1 2,800 3. 2013 ohio 1040ez instructions Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. 2013 ohio 1040ez instructions     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 29,750 4. 2013 ohio 1040ez instructions Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. 2013 ohio 1040ez instructions Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. 2013 ohio 1040ez instructions Combine lines 2, 3, 4, and 5 32,550 7. 2013 ohio 1040ez instructions Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. 2013 ohio 1040ez instructions     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 1,000 8. 2013 ohio 1040ez instructions Is the amount on line 7 less than the amount on line 6?     No. 2013 ohio 1040ez instructions None of your social security benefits are taxable. 2013 ohio 1040ez instructions Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2013 ohio 1040ez instructions   Yes. 2013 ohio 1040ez instructions Subtract line 7 from line 6 31,550 9. 2013 ohio 1040ez instructions 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 32,000   Note. 2013 ohio 1040ez instructions If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. 2013 ohio 1040ez instructions 85) and enter the result on line 17. 2013 ohio 1040ez instructions Then go to line 18. 2013 ohio 1040ez instructions   10. 2013 ohio 1040ez instructions Is the amount on line 9 less than the amount on line 8?     No. 2013 ohio 1040ez instructions None of your benefits are taxable. 2013 ohio 1040ez instructions Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2013 ohio 1040ez instructions If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. 2013 ohio 1040ez instructions     Yes. 2013 ohio 1040ez instructions Subtract line 9 from line 8   11. 2013 ohio 1040ez instructions Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013   12. 2013 ohio 1040ez instructions Subtract line 11 from line 10. 2013 ohio 1040ez instructions If zero or less, enter -0-   13. 2013 ohio 1040ez instructions Enter the smaller of line 10 or line 11   14. 2013 ohio 1040ez instructions Enter one-half of line 13   15. 2013 ohio 1040ez instructions Enter the smaller of line 2 or line 14   16. 2013 ohio 1040ez instructions Multiply line 12 by 85% (. 2013 ohio 1040ez instructions 85). 2013 ohio 1040ez instructions If line 12 is zero, enter -0-   17. 2013 ohio 1040ez instructions Add lines 15 and 16   18. 2013 ohio 1040ez instructions Multiply line 1 by 85% (. 2013 ohio 1040ez instructions 85)   19. 2013 ohio 1040ez instructions Taxable benefits. 2013 ohio 1040ez instructions Enter the smaller of line 17 or line 18. 2013 ohio 1040ez instructions Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b   Example 3. 2013 ohio 1040ez instructions Joe and Betty Johnson file a joint return on Form 1040 for 2013. 2013 ohio 1040ez instructions Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. 2013 ohio 1040ez instructions Joe's Form RRB-1099 shows $10,000 in box 5. 2013 ohio 1040ez instructions Betty is a retired government worker and receives a fully taxable pension of $38,000. 2013 ohio 1040ez instructions They had $2,300 in taxable interest income plus interest of $200 on a qualified U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions savings bond. 2013 ohio 1040ez instructions The savings bond interest qualified for the exclusion. 2013 ohio 1040ez instructions They figure their taxable benefits by completing Worksheet 1. 2013 ohio 1040ez instructions Because they have qualified U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions savings bond interest, they follow the note at the beginning of the worksheet and use the amount from line 2 of their Schedule B (Form 1040A or 1040) on line 3 of the worksheet instead of the amount from line 8a of their Form 1040. 2013 ohio 1040ez instructions On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). 2013 ohio 1040ez instructions Filled-in Worksheet 1. 2013 ohio 1040ez instructions Figuring Your Taxable Benefits Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. 2013 ohio 1040ez instructions • Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). 2013 ohio 1040ez instructions None of your benefits are taxable for 2013. 2013 ohio 1040ez instructions For more information, see Repayments More Than Gross Benefits. 2013 ohio 1040ez instructions • If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. 2013 ohio 1040ez instructions Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2013 ohio 1040ez instructions 1. 2013 ohio 1040ez instructions Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2013 ohio 1040ez instructions Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $10,000 2. 2013 ohio 1040ez instructions Enter one-half of line 1 5,000 3. 2013 ohio 1040ez instructions Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. 2013 ohio 1040ez instructions     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 40,500 4. 2013 ohio 1040ez instructions Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. 2013 ohio 1040ez instructions Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. 2013 ohio 1040ez instructions Combine lines 2, 3, 4, and 5 45,500 7. 2013 ohio 1040ez instructions Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. 2013 ohio 1040ez instructions     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. 2013 ohio 1040ez instructions Is the amount on line 7 less than the amount on line 6?     No. 2013 ohio 1040ez instructions None of your social security benefits are taxable. 2013 ohio 1040ez instructions Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2013 ohio 1040ez instructions   Yes. 2013 ohio 1040ez instructions Subtract line 7 from line 6 45,500 9. 2013 ohio 1040ez instructions 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 32,000   Note. 2013 ohio 1040ez instructions If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. 2013 ohio 1040ez instructions 85) and enter the result on line 17. 2013 ohio 1040ez instructions Then go to line 18. 2013 ohio 1040ez instructions   10. 2013 ohio 1040ez instructions Is the amount on line 9 less than the amount on line 8?     No. 2013 ohio 1040ez instructions None of your benefits are taxable. 2013 ohio 1040ez instructions Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2013 ohio 1040ez instructions If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. 2013 ohio 1040ez instructions     Yes. 2013 ohio 1040ez instructions Subtract line 9 from line 8 13,500 11. 2013 ohio 1040ez instructions Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 12,000 12. 2013 ohio 1040ez instructions Subtract line 11 from line 10. 2013 ohio 1040ez instructions If zero or less, enter -0- 1,500 13. 2013 ohio 1040ez instructions Enter the smaller of line 10 or line 11 12,000 14. 2013 ohio 1040ez instructions Enter one-half of line 13 6,000 15. 2013 ohio 1040ez instructions Enter the smaller of line 2 or line 14 5,000 16. 2013 ohio 1040ez instructions Multiply line 12 by 85% (. 2013 ohio 1040ez instructions 85). 2013 ohio 1040ez instructions If line 12 is zero, enter -0- 1,275 17. 2013 ohio 1040ez instructions Add lines 15 and 16 6,275 18. 2013 ohio 1040ez instructions Multiply line 1 by 85% (. 2013 ohio 1040ez instructions 85) 8,500 19. 2013 ohio 1040ez instructions Taxable benefits. 2013 ohio 1040ez instructions Enter the smaller of line 17 or line 18. 2013 ohio 1040ez instructions Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $6,275 More than 50% of Joe's net benefits are taxable because the income on line 8 of the worksheet ($45,500) is more than $44,000. 2013 ohio 1040ez instructions Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. 2013 ohio 1040ez instructions Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. 2013 ohio 1040ez instructions Disability payments. 2013 ohio 1040ez instructions   You may have received disability payments from your employer or an insurance company that you included as income on your tax return in an earlier year. 2013 ohio 1040ez instructions If you received a lump-sum payment from SSA or RRB, and you had to repay the employer or insurance company for the disability payments, you can take an itemized deduction for the part of the payments you included in gross income in the earlier year. 2013 ohio 1040ez instructions If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. 2013 ohio 1040ez instructions Claim the deduction or credit in the same way explained under Repayments More Than Gross Benefits , later. 2013 ohio 1040ez instructions Legal expenses. 2013 ohio 1040ez instructions   You can usually deduct legal expenses that you pay or incur to produce or collect taxable income or in connection with the determination, collection, or refund of any tax. 2013 ohio 1040ez instructions   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions Do not use a worksheet in this case. 2013 ohio 1040ez instructions 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. 2013 ohio 1040ez instructions If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. 2013 ohio 1040ez instructions Joint return. 2013 ohio 1040ez instructions   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 amount in box 5 of your form from the amount in box 5 of your spouse's form. 2013 ohio 1040ez instructions You do this to get your net benefits when figuring if your combined benefits are taxable. 2013 ohio 1040ez instructions Example. 2013 ohio 1040ez instructions John and Mary file a joint return for 2013. 2013 ohio 1040ez instructions John received Form SSA-1099 showing $3,000 in box 5. 2013 ohio 1040ez instructions Mary also received Form SSA-1099 and the amount in box 5 was ($500). 2013 ohio 1040ez instructions John and Mary will use $2,500 ($3,000 minus $500) as the amount of their net benefits when figuring if any of their combined benefits are taxable. 2013 ohio 1040ez instructions Repayment of benefits received in an earlier year. 2013 ohio 1040ez instructions   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. 2013 ohio 1040ez instructions Deduction $3,000 or less. 2013 ohio 1040ez instructions   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. 2013 ohio 1040ez instructions Claim it on Schedule A (Form 1040), line 23. 2013 ohio 1040ez instructions Deduction more than $3,000. 2013 ohio 1040ez instructions    If this deduction is more than $3,000, you should figure your tax two ways: Figure your tax for 2013 with the itemized deduction included on Schedule A, line 28. 2013 ohio 1040ez instructions Figure your tax for 2013 in the following steps. 2013 ohio 1040ez instructions Figure the tax without the itemized deduction included on Schedule A, line 28. 2013 ohio 1040ez instructions For each year after 1983 for which part of the negative figure represents a repayment of benefits, refigure your taxable benefits as if your total benefits for the year were reduced by that part of the negative figure. 2013 ohio 1040ez instructions Then refigure the tax for that year. 2013 ohio 1040ez instructions Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. 2013 ohio 1040ez instructions Subtract the result in (c) from the result in (a). 2013 ohio 1040ez instructions Compare the tax figured in methods (1) and (2). 2013 ohio 1040ez instructions Your tax for 2013 is the smaller of the two amounts. 2013 ohio 1040ez instructions If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. 2013 ohio 1040ez instructions If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. 2013 ohio 1040ez instructions Check box d and enter “I. 2013 ohio 1040ez instructions R. 2013 ohio 1040ez instructions C. 2013 ohio 1040ez instructions 1341” in the space next to that box. 2013 ohio 1040ez instructions If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. 2013 ohio 1040ez instructions Prev  Up  Next   Home   More Online Publications
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The 2013 Ohio 1040ez Instructions

2013 ohio 1040ez instructions 2. 2013 ohio 1040ez instructions   Foreclosures and Repossessions Table of Contents Amount realized and ordinary income on a recourse debt. 2013 ohio 1040ez instructions Amount realized on a nonrecourse debt. 2013 ohio 1040ez instructions If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. 2013 ohio 1040ez instructions The foreclosure or repossession is treated as a sale from which you may realize gain or loss. 2013 ohio 1040ez instructions This is true even if you voluntarily return the property to the lender. 2013 ohio 1040ez instructions If the outstanding loan balance was more than the FMV of the property and the lender cancels all or part of the remaining loan balance, you also may realize ordinary income from the cancellation of debt. 2013 ohio 1040ez instructions You must report this income on your return unless certain exceptions or exclusions apply. 2013 ohio 1040ez instructions See chapter 1 for more details. 2013 ohio 1040ez instructions Borrower's gain or loss. 2013 ohio 1040ez instructions    You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale. 2013 ohio 1040ez instructions The gain is the difference between the amount realized and your adjusted basis in the transferred property (amount realized minus adjusted basis). 2013 ohio 1040ez instructions The loss is the difference between your adjusted basis in the transferred property and the amount realized (adjusted basis minus amount realized). 2013 ohio 1040ez instructions For more information on figuring gain or loss from the sale of property, see Gain or Loss From Sales and Exchanges in Publication 544. 2013 ohio 1040ez instructions You can use Table 1-1 to figure your ordinary income from the cancellation of debt and your gain or loss from a foreclosure or repossession. 2013 ohio 1040ez instructions Amount realized and ordinary income on a recourse debt. 2013 ohio 1040ez instructions    If you are personally liable for the debt, the amount realized on the foreclosure or repossession includes the smaller of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The FMV of the transferred property. 2013 ohio 1040ez instructions The amount realized also includes any proceeds you received from the foreclosure sale. 2013 ohio 1040ez instructions If the FMV of the transferred property is less than the total outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, the difference is ordinary income from the cancellation of debt. 2013 ohio 1040ez instructions You must report this income on your return unless certain exceptions or exclusions apply. 2013 ohio 1040ez instructions See chapter 1 for more details. 2013 ohio 1040ez instructions       Example 1. 2013 ohio 1040ez instructions Tara bought a new car for $15,000. 2013 ohio 1040ez instructions She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. 2013 ohio 1040ez instructions Tara is personally liable for the loan (recourse debt) and the car is pledged as security for the loan. 2013 ohio 1040ez instructions On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. 2013 ohio 1040ez instructions The balance due after taking into account the payments Tara made was $10,000. 2013 ohio 1040ez instructions The FMV of the car when it was repossessed was $9,000. 2013 ohio 1040ez instructions On November 15, 2013, the credit company forgave the remaining $1,000 balance on the loan due to insufficient assets. 2013 ohio 1040ez instructions In this case, the amount Tara realizes is $9,000. 2013 ohio 1040ez instructions This is the smaller of: The $10,000 outstanding debt immediately before the repossession reduced by the $1,000 for which she remains personally liable immediately after the repossession ($10,000 − $1,000 = $9,000), or The $9,000 FMV of the car. 2013 ohio 1040ez instructions Tara figures her gain or loss on the repossession by comparing the $9,000 amount realized with her $15,000 adjusted basis. 2013 ohio 1040ez instructions She has a $6,000 nondeductible loss. 2013 ohio 1040ez instructions After the cancellation of the remaining balance on the loan in November, Tara also has ordinary income from cancellation of debt in the amount of $1,000 (the remaining balance on the $10,000 loan after the $9,000 amount satisfied by the FMV of the repossessed car). 2013 ohio 1040ez instructions Tara must report this $1,000 on her return unless one of the exceptions or exclusions described in chapter 1 applies. 2013 ohio 1040ez instructions Example 2. 2013 ohio 1040ez instructions Lili paid $200,000 for her home. 2013 ohio 1040ez instructions She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. 2013 ohio 1040ez instructions Lili is personally liable for the mortgage loan and the house secures the loan. 2013 ohio 1040ez instructions In 2013, the bank foreclosed on the mortgage because Lili stopped making payments. 2013 ohio 1040ez instructions When the bank foreclosed the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. 2013 ohio 1040ez instructions At the time of the foreclosure, the bank forgave $2,000 of the $10,000 debt in excess of the FMV ($180,000 minus $170,000). 2013 ohio 1040ez instructions She remained personally liable for the $8,000 balance. 2013 ohio 1040ez instructions In this case, Lili has ordinary income from the cancellation of debt in the amount of $2,000. 2013 ohio 1040ez instructions The $2,000 income from the cancellation of debt is figured by subtracting the $170,000 FMV of the house from the $172,000 difference between her total outstanding debt immediately before the transfer of property and the amount for which she remains personally liable immediately after the transfer ($180,000 minus $8,000). 2013 ohio 1040ez instructions She is able to exclude the $2,000 of canceled debt from her income under the qualified principal residence indebtedness rules discussed earlier. 2013 ohio 1040ez instructions Lili must also determine her gain or loss from the foreclosure. 2013 ohio 1040ez instructions In this case, the amount that she realizes is $170,000. 2013 ohio 1040ez instructions This is the smaller of: (a) the $180,000 outstanding debt immediately before the transfer reduced by the $8,000 for which she remains personally liable immediately after the transfer ($180,000 − $8,000 = $172,000) or (b) the $170,000 FMV of the house. 2013 ohio 1040ez instructions Lili figures her gain or loss on the foreclosure by comparing the $170,000 amount realized with her $175,000 adjusted basis. 2013 ohio 1040ez instructions She has a $5,000 nondeductible loss. 2013 ohio 1040ez instructions Table 1-1. 2013 ohio 1040ez instructions Worksheet for Foreclosures and Repossessions Part 1. 2013 ohio 1040ez instructions Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). 2013 ohio 1040ez instructions Otherwise, go to Part 2. 2013 ohio 1040ez instructions 1. 2013 ohio 1040ez instructions Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property   2. 2013 ohio 1040ez instructions Enter the fair market value of the transferred property   3. 2013 ohio 1040ez instructions Ordinary income from the cancellation of debt upon foreclosure or repossession. 2013 ohio 1040ez instructions * Subtract line 2 from line 1. 2013 ohio 1040ez instructions If less than zero, enter zero. 2013 ohio 1040ez instructions Next, go to Part 2   Part 2. 2013 ohio 1040ez instructions Gain or loss from foreclosure or repossession. 2013 ohio 1040ez instructions   4. 2013 ohio 1040ez instructions Enter the smaller of line 1 or line 2. 2013 ohio 1040ez instructions If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property   5. 2013 ohio 1040ez instructions Enter any proceeds you received from the foreclosure sale   6. 2013 ohio 1040ez instructions Add line 4 and line 5   7. 2013 ohio 1040ez instructions Enter the adjusted basis of the transferred property   8. 2013 ohio 1040ez instructions Gain or loss from foreclosure or repossession. 2013 ohio 1040ez instructions Subtract line 7 from line 6   * The income may not be taxable. 2013 ohio 1040ez instructions See chapter 1 for more details. 2013 ohio 1040ez instructions Amount realized on a nonrecourse debt. 2013 ohio 1040ez instructions    If you are not personally liable for repaying the debt secured by the transferred property, the amount you realize includes the full amount of the outstanding debt immediately before the transfer. 2013 ohio 1040ez instructions This is true even if the FMV of the property is less than the outstanding debt immediately before the transfer. 2013 ohio 1040ez instructions Example 1. 2013 ohio 1040ez instructions Tara bought a new car for $15,000. 2013 ohio 1040ez instructions She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. 2013 ohio 1040ez instructions Tara is not personally liable for the loan (nonrecourse), but pledged the new car as security for the loan. 2013 ohio 1040ez instructions On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. 2013 ohio 1040ez instructions The balance due after taking into account the payments Tara made was $10,000. 2013 ohio 1040ez instructions The FMV of the car when it was repossessed was $9,000. 2013 ohio 1040ez instructions The amount Tara realized on the repossession is $10,000. 2013 ohio 1040ez instructions That is the outstanding amount of debt immediately before the repossession, even though the FMV of the car is less than $10,000. 2013 ohio 1040ez instructions Tara figures her gain or loss on the repossession by comparing the $10,000 amount realized with her $15,000 adjusted basis. 2013 ohio 1040ez instructions Tara has a $5,000 nondeductible loss. 2013 ohio 1040ez instructions Example 2. 2013 ohio 1040ez instructions Lili paid $200,000 for her home. 2013 ohio 1040ez instructions She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. 2013 ohio 1040ez instructions She is not personally liable for the loan, but grants the bank a mortgage. 2013 ohio 1040ez instructions The bank foreclosed on the mortgage because Lili stopped making payments. 2013 ohio 1040ez instructions When the bank foreclosed on the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. 2013 ohio 1040ez instructions The amount Lili realized on the foreclosure is $180,000, the outstanding debt immediately before the foreclosure. 2013 ohio 1040ez instructions She figures her gain or loss by comparing the $180,000 amount realized with her $175,000 adjusted basis. 2013 ohio 1040ez instructions Lili has a $5,000 realized gain. 2013 ohio 1040ez instructions See Publication 523 to figure and report any taxable amount. 2013 ohio 1040ez instructions Forms 1099-A and 1099-C. 2013 ohio 1040ez instructions    A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A, Acquisition or Abandonment of Secured Property, showing information you need to figure your gain or loss. 2013 ohio 1040ez instructions However, if the lender also cancels part of your debt and must file Form 1099-C, the lender can include the information about the foreclosure or repossession on that form instead of on Form 1099-A. 2013 ohio 1040ez instructions The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. 2013 ohio 1040ez instructions For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. 2013 ohio 1040ez instructions Prev  Up  Next   Home   More Online Publications