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Amended Return 2011

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Amended Return 2011

Amended return 2011 35. Amended return 2011   Créditos Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Gastos de Estudios CalificadosNo se Permite Beneficio Doble Ajustes a los Gastos de Estudios Calificados Introduction Para 2013, hay dos créditos tributarios para personas que paguen gastos de enseñanza superior (postsecundaria). Amended return 2011 Éstos son: El crédito tributario de oportunidad para los estadounidenses y El crédito vitalicio por aprendizaje. Amended return 2011 Este capítulo explica en términos generales estos créditos tributarios por estudios. Amended return 2011 Para obtener la información detallada que necesitará para reclamar cualquiera de los créditos, y para ver ejemplos aclaratorios, consulte los capítulos 2 y 3 de la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. Amended return 2011 ¿Puede reclamar más de un crédito por estudios este año?   Puede escoger sólo uno de los créditos por cada estudiante por cada año. Amended return 2011 Por ejemplo, si reclama el crédito tributario de oportunidad para los estadounidenses por un hijo en su declaración de impuestos de 2013, no puede tomar el crédito vitalicio por aprendizaje para 2013 si se trata del mismo hijo. Amended return 2011   Si reúne los requisitos del crédito tributario de oportunidad para los estadounidenses y también del crédito vitalicio por aprendizaje por el mismo estudiante durante el mismo año, puede reclamar sólo uno de los dos créditos, pero no ambos. Amended return 2011   Si paga gastos de estudios calificados por más de un estudiante durante el mismo año, puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje basado por cada estudiante y por año. Amended return 2011 Esto quiere decir que, por ejemplo, puede reclamar el crédito tributario de oportunidad para los estadounidenses por un estudiante y el crédito vitalicio por aprendizaje por otro estudiante en el mismo año. Amended return 2011    Tabla 35-1. Amended return 2011 Comparación de los Créditos Tributarios por Estudios Precaución: Puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje en la misma declaración —pero no por el mismo estudiante. Amended return 2011   Crédito tributario de oportunidad para los estadounidenses Crédito vitalicio por aprendizaje Crédito máximo Un crédito de hasta $2,500 por cada estudiante que reúne los requisitos Un crédito de hasta $2,000 por cada declaración Límite a los ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) $180,000 si es casado que presenta una declaración conjunta;  $90,000 si es soltero, cabeza de familia o viudo que reúne los requisitos $127,000 si es casado que presenta una declaración conjunta;  $63,000 si es soltero, cabeza de familia o viudo que reúne los requisitos Reembolsable o no reembolsable El 40% del crédito podría ser reembolsable El monto del crédito está limitado al monto de impuestos que tiene que pagar sobre sus ingresos sujetos a impuestos Número de años de enseñanza postsecundaria Disponible SÓLO si el estudiante no ha completado los 4 primeros años de enseñanza postsecundaria antes de 2013 Disponible para todo año de enseñanza postsecundaria y cursos para adquirir o mejorar aptitudes en el trabajo Número de años tributarios por los cuales se ofrece el crédito Disponible SÓLO por 4 años por cada estudiante que reúna los requisitos (incluido todo año en el que se haya reclamado el crédito Hope) Disponible por un número ilimitado de años Tipo de programa académico requerido El estudiante tiene que estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado El estudiante no necesita estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado Número de cursos El estudiante tiene que estar matriculado a medio tiempo como mínimo durante al menos un período académico que haya comenzado en el transcurso del año tributario Disponible para uno o más cursos Fallo condenatorio por delito grave de drogas Si para el fin de 2013 no consta fallo condenatorio alguno al estudiante por delito grave de poseer o distribuir drogas Fallos condenatorios por delito grave de drogas no hacen que el estudiante no reúna los requisitos Gastos que reúnen los requisitos Costos de matrícula y gastos de inscripción obligatorios y todos los materiales relacionados con un curso que necesita el estudiante, tanto si son comprados o no en la institución como condición de inscripción o asistencia Costos de matrícula y gastos de inscripción obligatorios (incluidas cantidades que tienen que pagarse a la institución por textos, materiales y equipo relacionados con un curso) Pagos por períodos académicos Pagos efectuados en 2013 para períodos académicos que se iniciaron en 2013 y en los tres primeros meses de 2014 Diferencias entre el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje. Amended return 2011   Existen varias diferencias entre estos dos créditos. Amended return 2011 Estas diferencias se resumen en la Tabla 35-1, más adelante. Amended return 2011 Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) (Créditos tributarios por estudios (crédito tributario de oportunidad para los estadounidenses y crédito vitalicio por aprendizaje)), en inglés ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Tal vez pueda reclamar un crédito tributario por estudios si usted, su cónyuge o un dependiente reclamado en su declaración de impuestos era estudiante matriculado en, o asistió a, una institución de enseñanza superior que reúne los requisitos. Amended return 2011 Los créditos se basan en la cantidad de gastos de estudios calificados que hayan sido pagados a nombre del estudiante en 2013 por períodos académicos que comenzaron en 2013 y en los primeros tres meses de 2014. Amended return 2011 Por ejemplo, si pagó $1,500 en diciembre de 2013 por una matrícula calificada por el semestre de primavera de 2014 que comience en enero de 2014, tal vez pueda usar los $1,500 en el cálculo del (de los) crédito(s) para 2013. Amended return 2011 Período académico. Amended return 2011   Un período académico abarca un semestre, trimestre, cuatrimestre u otro período de estudios (como un curso de escuela de verano) según lo determine de manera razonable una institución de enseñanza superior. Amended return 2011 En el caso de una institución de enseñanza superior que no tenga períodos académicos sino horas de crédito u horas de reloj, cada período de pago se puede considerar período académico. Amended return 2011 Institución de enseñanza superior que reúne los requisitos. Amended return 2011   Una “institución de enseñanza superior que reúne los requisitos” es todo colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante administrado por el Departamento de Educación de los Estados Unidos. Amended return 2011 Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas, sin fines de lucro y las privadas con fines de lucro. Amended return 2011 La institución de enseñanza superior debe poder indicarle si reúne los requisitos. Amended return 2011   Determinadas instituciones de enseñanza superior ubicadas en el extranjero participan también en los programas de Federal Student Aid (Asistencia Financiera al Estudiante o FSA, por sus siglas en inglés) del Departamento de Educación de los Estados Unidos. Amended return 2011 ¿Quién puede reclamar los gastos de un dependiente?   Si una persona reclama al estudiante como dependiente y se permite una deducción por aquel estudiante en la declaración de dicha persona, se considera que esa persona ha pagado todos los gastos de estudios calificados del estudiante. Amended return 2011 Por lo tanto, sólo esa persona puede reclamar un crédito por estudios en nombre del estudiante. Amended return 2011 Si un estudiante no es reclamado como dependiente en la declaración de impuestos de otra persona, sólo el estudiante puede reclamar un crédito. Amended return 2011 Gastos pagados por un tercero. Amended return 2011   Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Amended return 2011 Sin embargo, los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos, se tratan como si hubiesen sido pagados por usted. Amended return 2011 Por lo tanto, a usted se le trata como si hubiese pagado los gastos que fueron pagados por el tercero. Amended return 2011 Para más información y para ver un ejemplo, vea Who can Claim a Dependent's Expenses (¿Quién puede reclamar los gastos de un dependiente?) en el capítulo 2 ó 3 de la Publicación 970, en inglés. Amended return 2011 ¿Quién no puede reclamar el crédito?   No puede tomar un crédito tributario por estudios si alguna de las siguientes situaciones le corresponde: Usted es reclamado como dependiente en la declaración de impuestos de otra persona, como la de sus padres. Amended return 2011 Su estado civil para efectos de la declaración es casado que presenta una declaración por separado. Amended return 2011 Usted (o su cónyuge) fue extranjero no residente durante cualquier parte de 2013 y no optó por ser tratado como extranjero residente para fines tributarios. Amended return 2011 Sus ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) es uno de los siguientes: Crédito tributario de oportunidad para los estadounidenses: $180,000 o más si es casado que presenta la declaración conjunta, o $90,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Amended return 2011 Crédito vitalicio por aprendizaje: $127,000 o más si es casado que presenta la declaración conjunta, o $63,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Amended return 2011   Por lo general, su MAGI es la cantidad de la línea 38 de su Formulario 1040 o la línea 22 del Formulario 1040A. Amended return 2011 No obstante, si presenta el Formulario 2555, 2555-EZ o 4563 o si excluye ingresos de fuentes dentro de Puerto Rico, sume la cantidad excluida del ingreso a la cantidad en la línea 38 de su Formulario 1040 o de la línea 22 del Formulario 1040A. Amended return 2011 Para más detalles, vea la Publicación 970, en inglés. Amended return 2011   La Figura 35-A podría ser útil al momento de determinar si puede reclamar un crédito tributario por estudios en su declaración de impuestos. Amended return 2011    El crédito tributario de oportunidad para los estadounidenses siempre será mayor que o igual al crédito vitalicio por aprendizaje para todo estudiante que reúna los requisitos para ambos créditos. Amended return 2011 Sin embargo, si no se cumplen todos los requisitos correspondientes al crédito tributario de oportunidad para los estadounidenses enumerados anteriormente en la Tabla 35-1, usted no puede reclamar dicho crédito en base de este estudiante. Amended return 2011 En lugar de ello, quizás podría reclamar el crédito vitalicio por aprendizaje por una parte o la totalidad de los gastos de estudios calificados de dicho estudiante. Amended return 2011 Para obtener información sobre otros beneficios relacionados con los estudios, vea la Publicación 970, en inglés. Amended return 2011 Gastos de Estudios Calificados Generalmente, se considera que los gastos de estudios calificados son cantidades pagadas en 2013 por matrícula y gastos escolares obligatorios para matricularse en un curso o asistir al mismo en una institución de enseñanza superior. Amended return 2011 No importa si los gastos fueron pagados en efectivo, por cheque, con tarjeta de crédito o débito, o con préstamos. Amended return 2011 Sólo reúnen los requisitos ciertos gastos por libros, materiales y equipos relacionados con un curso: Crédito tributario de oportunidad para los estadounidenses: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos necesarios para cursos de un programa de estudios, ya sea o no que se compren estos materiales en la institución de enseñanza como condición para matricularse o asistir a tales cursos. Amended return 2011 Crédito vitalicio por aprendizaje: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos sólo si se tienen que pagar a la institución como condición para matricularse o asistir a cursos. Amended return 2011 Los gastos de estudios calificados incluyen cuotas no académicas, tales como cuotas por actividades estudiantiles, cuotas por actividades deportivas u otros gastos no relacionados con el curso de instrucción, sólo si la cuota tiene que pagarse a la institución como condición de inscripción o asistencia. Amended return 2011 Sin embargo, las cuotas por gastos personales (descritos a continuación) nunca se consideran gastos de estudios calificados. Amended return 2011 Los gastos de estudios calificados no incluyen cantidades pagadas por: Gastos personales. Amended return 2011 Éstos incluyen gastos de alojamiento y comida, seguros, gastos médicos (incluyendo las cuotas de servicios de salud para estudiantes), transporte y otros gastos personales similares o de familia. Amended return 2011 Todo curso u otros estudios que se relacionen con deportes, juegos o pasatiempos o todo curso sin crédito académico, a menos que dicho curso o dichos estudios formen parte del programa de estudios para obtener un título del estudiante o (sólo en el caso del crédito vitalicio por aprendizaje) ayude al estudiante a adquirir o mejorar aptitudes en el trabajo. Amended return 2011 Usted debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés, de la institución que informa cualesquiera de los pagos recibidos en 2013 (encasillado 1) o las cantidades facturadas en 2013 (encasillado 2). Amended return 2011 Sin embargo, la cantidad pagada (o tratada como pagada) puede ser distinta a la cantidad en el encasillado 1 ó 2 del Formulario 1098-T. Amended return 2011 Al completar el Formulario 8863, en inglés, utilice sólo las cantidades que realmente pagó (además de cualquier otra cantidad tratada como pagada) en 2013, reducida cuando sea necesario, como se describe en Ajustes a los Gastos de Estudios Calificados , más adelante. Amended return 2011 Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Amended return 2011 Los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos se tratan como si hubiesen sido pagados por usted. Amended return 2011 Al calcular los créditos tributarios por estudios, si usted o el estudiante toman una deducción por gastos de enseñanza superior, tal como en el Anexo A o C (Formulario 1040), no pueden utilizar esos gastos como gastos de estudios calificados. Amended return 2011 Los gastos de estudios calificados para cualquier período académico tienen que ser reducidos por toda ayuda económica de estudios exenta de los impuestos asignable a dicho período académico. Amended return 2011 Vea Ajustes a los Gastos de Estudios Calificados , más adelante. Amended return 2011 Gastos pagados por adelantado. Amended return 2011   Los gastos de estudios calificados pagados en 2013 para un período académico que comienza en los primeros tres meses de 2014 se pueden utilizar sólo en el cálculo del crédito por estudios de 2013. Amended return 2011 Vea Período académico , anteriormente. Amended return 2011 Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo del crédito por estudios sólo para 2013 (si reúne todos los otros requisitos). Amended return 2011 No puede utilizar cantidad alguna que haya pagado en 2012 ó 2014 para calcular su(s) crédito(s) tributario(s) por estudios de 2013. Amended return 2011 Gastos pagados con un préstamo. Amended return 2011   Puede reclamar un crédito por estudios en el caso de gastos de estudios calificados que haya pagado con un préstamo. Amended return 2011 Utilice los gastos para calcular el crédito tributario por estudios correspondiente al año en que se paguen los gastos y no al año en el que se pague el préstamo. Amended return 2011 Trate los pagos del préstamo enviados directamente a la institución de enseñanza superior como si se hubiesen pagado en la fecha en que dicha institución abone los pagos a la cuenta del estudiante. Amended return 2011 Si el estudiante se retira de uno o más cursos. Amended return 2011   Puede reclamar un crédito tributario por estudios en el caso de gastos de estudios calificados que no se le devuelvan al estudiante si el estudiante se retira de uno o más cursos. Amended return 2011 No se Permite Beneficio Doble No se permite hacer lo siguiente: Deducir gastos de enseñanza superior en su declaración de impuestos sobre los ingresos (por ejemplo, un gasto de negocio) y reclamar también un crédito por estudios basándose en dichos gastos. Amended return 2011 Reclamar más de un (1) crédito tributario por estudios basándose en los mismos gastos de estudios calificados. Amended return 2011 Reclamar un crédito por estudios basándose en los mismos gastos utilizados para calcular la parte exenta del impuesto de distribuciones de una cuenta de ahorros para estudios Coverdell (Coverdell ESA, por su abreviatura en inglés) o un programa de matrícula calificada (QTP, por sus siglas en inglés). Amended return 2011 Reclamar un crédito basándose en gastos de estudios calificados que hayan sido pagados con ayuda para estudios, tal como una beca o subvención o ayuda provista por el empleador, libres de impuestos. Amended return 2011 Vea Ajustes a los Gastos de Estudios Calificados, a continuación. Amended return 2011 Ajustes a los Gastos de Estudios Calificados Para cada estudiante, se tiene que restar los gastos de estudios calificados, pagados en 2013, por o en nombre de dicho estudiante bajo las siguientes reglas. Amended return 2011 El resultado es la cantidad ajustada en gastos de estudios calificados por cada estudiante. Amended return 2011 Ayuda económica para estudios exenta de impuestos. Amended return 2011   Si en 2013 recibió ayuda económica para estudios que está exenta de impuestos, reste la cantidad de la ayuda económica para estudios exenta de impuestos asignable para cada período académico de la cantidad de gastos de estudios calificados para cada período académico. Amended return 2011 Vea Período académico , anteriormente. Amended return 2011   La ayuda económica para estudios exenta de impuestos incluye: Partes no sujetas a impuestos de becas de estudios y becas de investigación (vea el capítulo 12 de esta publicación y el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de ayuda económica para estudios provista por el empleador (vea la Publicación 970, en inglés), Ayuda económica para estudios para veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no sujeto a impuestos (libre de impuestos) (que no sean regalos ni herencias) recibido como ayuda económica para estudios. Amended return 2011   Por lo general, toda beca de estudios o de investigación es tratada como una ayuda económica para estudios exenta de impuestos. Amended return 2011 Sin embargo, una beca de estudios o de investigación no será tratada como dicha ayuda al punto de que el estudiante la incluye como ingreso bruto (si el estudiante tiene que presentar una declaración de impuestos) para el año en que reciba la beca de estudios o de investigación y le corresponde uno de los siguientes: La beca de estudios o de investigación (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés, o La beca de estudios o de investigación (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Amended return 2011 Podría aumentar el valor combinado del crédito tributario por estudios y cierta ayuda económica para estudios si el estudiante incluye alguna o toda ayuda económica para estudios del ingreso en el año en que recibió dicha ayuda. Amended return 2011 Para detalles, vea Adjustments of Qualified Education Expenses (Ajustes a los gastos de estudios calificados) en los capítulos 2 y 3 de la Publicación 970, en inglés. Amended return 2011 Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 podría ser tratada como un reembolso de gastos de estudios calificados que se pagaron en 2013. Amended return 2011 Esta ayuda económica para estudios exenta de impuestos es toda ayuda económica para estudios exenta de impuestos que usted o cualquier otro ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matrícula de una institución de enseñanza superior que reúne los requisitos durante 2013). Amended return 2011 Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 pero antes de que presente su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Amended return 2011 Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 y después que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después que presenta su declaración de impuestos sobre los ingresos, más adelante. Amended return 2011 Reembolsos. Amended return 2011   Un reembolso de gastos de estudios calificados puede reducir gastos de estudios calificados por el año tributable o puede requerir que recupere (reintegre) el crédito tributario por estudios que reclamó en un año anterior. Amended return 2011 Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Amended return 2011 Vea Ayuda económica para estudios exenta de impuestos, anteriormente. Amended return 2011 Reembolsos recibidos en 2013. Amended return 2011   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y reste todos los reembolsos de esos gastos recibidos de la institución de enseñanza superior que reúne los requisitos durante 2013. Amended return 2011 Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Amended return 2011   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagado en nombre de un estudiante en 2013 y el reembolso es recibido antes de que presente su declaración de impuestos sobre los ingresos de 2013, reste la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Amended return 2011 Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Amended return 2011   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, podría verse obligado a reintegrar parte o todo el crédito tributario por estudios que reclamó. Amended return 2011 Vea Recuperar (reintegrar) el crédito, a continuación. Amended return 2011 Recuperar (reintegrar) el crédito. Amended return 2011   Si después de haber presentado su declaración de impuestos sobre los ingresos de 2013, recibe alguna ayuda económica para estudios exenta de impuestos o cualquier reembolso correspondiente a gastos de estudios calificados que haya pagado en 2013, tiene que recuperar (reintegrar) todo crédito en exceso. Amended return 2011 Cuando se vuelve a calcular la cantidad de gastos de estudios calificados ajustados de 2013, reste de dichos gastos la cantidad de la ayuda económica para estudios exenta de impuestos o el (los) reembolso(s) que haya recibido. Amended return 2011 Entonces se calcula nuevamente su(s) crédito(s) tributario(s) por estudios de 2013 y se calcula la cantidad por la cual su impuesto adeudado de 2013 hubiera aumentado si hubiese reclamado dicho(s) crédito(s) nuevamente calculado(s). Amended return 2011 Incluya esa cantidad como un impuesto adicional para el año en que la ayuda económica o el reembolso fueron recibidos. Amended return 2011 Ejemplo. Amended return 2011   Usted pagó $8,000 por matrícula y gastos escolares de su hijo en diciembre de 2013 por el semestre de primavera que comienza en enero de 2014. Amended return 2011 Usted presentó su declaración de impuestos de 2013 el 3 de febrero de 2014 y reclamó un crédito vitalicio por aprendizaje de $1,600 ($8,000 de gastos de estudios calificados multiplicado por 0. Amended return 2011 20). Amended return 2011 Usted no reclamó otros créditos tributarios. Amended return 2011 Después de haber presentado su declaración, su hijo se retiró de dos cursos y usted recibió un reembolso de $1,400. Amended return 2011 Tiene que volver a calcular su crédito vitalicio por aprendizaje de 2013 usando $6,600 ($1,400 del reembolso que se resta de los gastos de estudios calificados de $8,000). Amended return 2011 El crédito nuevamente calculado es $1,320 y su impuesto adeudado aumentó por $280. Amended return 2011 Tiene que incluir el resultado de $280 (lo que queda después de que haya restado $1,320 (el crédito nuevamente calculado) de $1,600 (el crédito que había reclamado originalmente)) como un impuesto adicional en su declaración de impuestos sobre los ingresos de 2014. Amended return 2011 Para determinar en dónde incluir dicho impuesto adicional, vea las instrucciones de su declaración de impuestos sobre los ingresos de 2014. Amended return 2011    Si también paga gastos de estudios calificados en 2014 para un período académico que comienza en los primeros tres meses de 2014 y recibe ayuda económica para estudios exenta de impuestos o un reembolso como se explicó anteriormente, usted puede escoger reducir sus gastos de estudios calificados para el 2014 en vez de reducir sus gastos para 2013. Amended return 2011 Cantidades que no reducen los gastos de estudios calificados. Amended return 2011   No reste de los gastos de estudios calificados las cantidades pagadas con fondos que el estudiante reciba como: Pagos por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. Amended return 2011   No reste de los gastos de estudios calificados ninguna beca de estudios o beca de investigación reclamada como ingresos en la declaración de ingresos del estudiante en las siguientes situaciones: El uso del dinero está limitado, por los términos de la beca de estudios o de investigación, a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados, como se definen en el capítulo 1 de la Publicación 970, en inglés. Amended return 2011 El uso del dinero no está limitado. Amended return 2011   Para ver ejemplos, consulte el capítulo 2 de la Publicación 970, en inglés. Amended return 2011 Please click here for the text description of the image. Amended return 2011 Figura 35-A ¿Puede usted reclamar el crédito por Estudios para 2013? Prev  Up  Next   Home   More Online Publications
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The Amended Return 2011

Amended return 2011 12. Amended return 2011   Other Income Table of Contents Introduction Useful Items - You may want to see: Bartering Canceled DebtsInterest included in canceled debt. Amended return 2011 Exceptions Host or Hostess Life Insurance ProceedsSurviving spouse. Amended return 2011 Endowment Contract Proceeds Accelerated Death Benefits Public Safety Officer Killed in the Line of Duty Partnership Income S Corporation Income RecoveriesItemized Deduction Recoveries Rents from Personal Property RepaymentsMethod 1. Amended return 2011 Method 2. Amended return 2011 RoyaltiesDepletion. Amended return 2011 Coal and iron ore. Amended return 2011 Sale of property interest. Amended return 2011 Part of future production sold. Amended return 2011 Unemployment BenefitsTypes of unemployment compensation. Amended return 2011 Governmental program. Amended return 2011 Repayment of unemployment compensation. Amended return 2011 Tax withholding. Amended return 2011 Repayment of benefits. Amended return 2011 Welfare and Other Public Assistance Benefits Other IncomeEmotional distress. Amended return 2011 Deduction for costs involved in unlawful discrimination suits. Amended return 2011 Energy conservation measure. Amended return 2011 Dwelling unit. Amended return 2011 Current income required to be distributed. Amended return 2011 Current income not required to be distributed. Amended return 2011 How to report. Amended return 2011 Losses. Amended return 2011 Grantor trust. Amended return 2011 Nonemployee compensation. Amended return 2011 Corporate director. Amended return 2011 Personal representatives. Amended return 2011 Manager of trade or business for bankruptcy estate. Amended return 2011 Notary public. Amended return 2011 Election precinct official. Amended return 2011 Difficulty-of-care payments. Amended return 2011 Maintaining space in home. Amended return 2011 Reporting taxable payments. Amended return 2011 Lotteries and raffles. Amended return 2011 Form W-2G. Amended return 2011 Reporting winnings and recordkeeping. Amended return 2011 Inherited pension or IRA. Amended return 2011 Employee awards or bonuses. Amended return 2011 Pulitzer, Nobel, and similar prizes. Amended return 2011 Payment for services. Amended return 2011 VA payments. Amended return 2011 Prizes. Amended return 2011 Strike and lockout benefits. Amended return 2011 Introduction You must include on your return all items of income you receive in the form of money, property, and services unless the tax law states that you do not include them. Amended return 2011 Some items, however, are only partly excluded from income. Amended return 2011 This chapter discusses many kinds of income and explains whether they are taxable or nontaxable. Amended return 2011 Income that is taxable must be reported on your tax return and is subject to tax. Amended return 2011 Income that is nontaxable may have to be shown on your tax return but is not taxable. Amended return 2011 This chapter begins with discussions of the following income items. Amended return 2011 Bartering. Amended return 2011 Canceled debts. Amended return 2011 Sales parties at which you are the host or hostess. Amended return 2011 Life insurance proceeds. Amended return 2011 Partnership income. Amended return 2011 S Corporation income. Amended return 2011 Recoveries (including state income tax refunds). Amended return 2011 Rents from personal property. Amended return 2011 Repayments. Amended return 2011 Royalties. Amended return 2011 Unemployment benefits. Amended return 2011 Welfare and other public assistance benefits. Amended return 2011 These discussions are followed by brief discussions of other income items. Amended return 2011 Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 544 Sales and Other Dispositions of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Bartering Bartering is an exchange of property or services. Amended return 2011 You must include in your income, at the time received, the fair market value of property or services you receive in bartering. Amended return 2011 If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise. Amended return 2011 Generally, you report this income on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Amended return 2011 However, if the barter involves an exchange of something other than services, such as in Example 3 below, you may have to use another form or schedule instead. Amended return 2011 Example 1. Amended return 2011 You are a self-employed attorney who performs legal services for a client, a small corporation. Amended return 2011 The corporation gives you shares of its stock as payment for your services. Amended return 2011 You must include the fair market value of the shares in your income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) in the year you receive them. Amended return 2011 Example 2. Amended return 2011 You are self-employed and a member of a barter club. Amended return 2011 The club uses “credit units” as a means of exchange. Amended return 2011 It adds credit units to your account for goods or services you provide to members, which you can use to purchase goods or services offered by other members of the barter club. Amended return 2011 The club subtracts credit units from your account when you receive goods or services from other members. Amended return 2011 You must include in your income the value of the credit units that are added to your account, even though you may not actually receive goods or services from other members until a later tax year. Amended return 2011 Example 3. Amended return 2011 You own a small apartment building. Amended return 2011 In return for 6 months rent-free use of an apartment, an artist gives you a work of art she created. Amended return 2011 You must report as rental income on Schedule E (Form 1040), Supplemental Income and Loss, the fair market value of the artwork, and the artist must report as income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) the fair rental value of the apartment. Amended return 2011 Form 1099-B from barter exchange. Amended return 2011   If you exchanged property or services through a barter exchange, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a similar statement from the barter exchange should be sent to you by February 18, 2014. Amended return 2011 It should show the value of cash, property, services, credits, or scrip you received from exchanges during 2013. Amended return 2011 The IRS also will receive a copy of Form 1099-B. Amended return 2011 Canceled Debts In most cases, if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. Amended return 2011 You have no income from the canceled debt if it is intended as a gift to you. Amended return 2011 A debt includes any indebtedness for which you are liable or which attaches to property you hold. Amended return 2011 If the debt is a nonbusiness debt, report the canceled amount on Form 1040, line 21. Amended return 2011 If it is a business debt, report the amount on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) (or on Schedule F (Form 1040), Profit or Loss From Farming, if the debt is farm debt and you are a farmer). Amended return 2011 Form 1099-C. Amended return 2011   If a Federal Government agency, financial institution, or credit union cancels or forgives a debt you owe of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. Amended return 2011 The amount of the canceled debt is shown in box 2. Amended return 2011 Interest included in canceled debt. Amended return 2011   If any interest is forgiven and included in the amount of canceled debt in box 2, the amount of interest also will be shown in box 3. Amended return 2011 Whether or not you must include the interest portion of the canceled debt in your income depends on whether the interest would be deductible when you paid it. Amended return 2011 See Deductible debt under Exceptions, later. Amended return 2011   If the interest would not be deductible (such as interest on a personal loan), include in your income the amount from Form 1099-C, box 2. Amended return 2011 If the interest would be deductible (such as on a business loan), include in your income the net amount of the canceled debt (the amount shown in box 2 less the interest amount shown in box 3). Amended return 2011 Discounted mortgage loan. Amended return 2011   If your financial institution offers a discount for the early payment of your mortgage loan, the amount of the discount is canceled debt. Amended return 2011 You must include the canceled amount in your income. Amended return 2011 Mortgage relief upon sale or other disposition. Amended return 2011   If you are personally liable for a mortgage (recourse debt), and you are relieved of the mortgage when you dispose of the property, you may realize gain or loss up to the fair market value of the property. Amended return 2011 To the extent the mortgage discharge exceeds the fair market value of the property, it is income from discharge of indebtedness unless it qualifies for exclusion under Excluded debt , later. Amended return 2011 Report any income from discharge of indebtedness on nonbusiness debt that does not qualify for exclusion as other income on Form 1040, line 21. Amended return 2011    You may be able to exclude part of the mortgage relief on your principal residence. Amended return 2011 See Excluded debt, later. Amended return 2011   If you are not personally liable for a mortgage (nonrecourse debt), and you are relieved of the mortgage when you dispose of the property (such as through foreclosure), that relief is included in the amount you realize. Amended return 2011 You may have a taxable gain if the amount you realize exceeds your adjusted basis in the property. Amended return 2011 Report any gain on nonbusiness property as a capital gain. Amended return 2011   See Publication 4681 for more information. Amended return 2011 Stockholder debt. Amended return 2011   If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution that is generally dividend income to you. Amended return 2011 For more information, see Publication 542, Corporations. Amended return 2011   If you are a stockholder in a corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. Amended return 2011 This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. Amended return 2011 Repayment of canceled debt. Amended return 2011   If you included a canceled amount in your income and later pay the debt, you may be able to file a claim for refund for the year the amount was included in income. Amended return 2011 You can file a claim on Form 1040X if the statute of limitations for filing a claim is still open. Amended return 2011 The statute of limitations generally does not end until 3 years after the due date of your original return. Amended return 2011 Exceptions There are several exceptions to the inclusion of canceled debt in income. Amended return 2011 These are explained next. Amended return 2011 Student loans. Amended return 2011   Certain student loans contain a provision that all or part of the debt incurred to attend the qualified educational institution will be canceled if you work for a certain period of time in certain professions for any of a broad class of employers. Amended return 2011   You do not have income if your student loan is canceled after you agreed to this provision and then performed the services required. Amended return 2011 To qualify, the loan must have been made by: The Federal Government, a state or local government, or an instrumentality, agency, or subdivision thereof, A tax-exempt public benefit corporation that has assumed control of a state, county, or municipal hospital, and whose employees are considered public employees under state law, or An educational institution: Under an agreement with an entity described in (1) or (2) that provided the funds to the institution to make the loan, or As part of a program of the institution designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or a tax-exempt organization described in section 501(c)(3). Amended return 2011   A loan to refinance a qualified student loan also will qualify if it was made by an educational institution or a qualified tax-exempt organization under its program designed as described in (3)(b) above. Amended return 2011 Education loan repayment assistance. Amended return 2011   Education loan repayments made to you by the National Health Service Corps Loan Repayment Program (NHSC Loan Repayment Program), a state education loan repayment program eligible for funds under the Public Health Service Act, or any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas are not taxable. Amended return 2011    The provision relating to the “other state loan repayment or loan forgiveness program” was added to this exclusion for amounts received in tax years beginning after December 31, 2008. Amended return 2011 If you included these amounts in income in 2010, 2011, or 2012, you should file an amended tax return to exclude this income. Amended return 2011 See Form 1040X and its instructions for details on filing. Amended return 2011 Deductible debt. Amended return 2011   You do not have income from the cancellation of a debt if your payment of the debt would be deductible. Amended return 2011 This exception applies only if you use the cash method of accounting. Amended return 2011 For more information, see chapter 5 of Publication 334, Tax Guide for Small Business. Amended return 2011 Price reduced after purchase. Amended return 2011   In most cases, if the seller reduces the amount of debt you owe for property you purchased, you do not have income from the reduction. Amended return 2011 The reduction of the debt is treated as a purchase price adjustment and reduces your basis in the property. Amended return 2011 Excluded debt. Amended return 2011   Do not include a canceled debt in your gross income in the following situations. Amended return 2011 The debt is canceled in a bankruptcy case under title 11 of the U. Amended return 2011 S. Amended return 2011 Code. Amended return 2011 See Publication 908, Bankruptcy Tax Guide. Amended return 2011 The debt is canceled when you are insolvent. Amended return 2011 However, you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent. Amended return 2011 See Publication 908. Amended return 2011 The debt is qualified farm debt and is canceled by a qualified person. Amended return 2011 See chapter 3 of Publication 225, Farmer's Tax Guide. Amended return 2011 The debt is qualified real property business debt. Amended return 2011 See chapter 5 of Publication 334. Amended return 2011 The cancellation is intended as a gift. Amended return 2011 The debt is qualified principal residence indebtedness. Amended return 2011 See Publication 525 for additional information. Amended return 2011 Host or Hostess If you host a party or event at which sales are made, any gift or gratuity you receive for giving the event is a payment for helping a direct seller make sales. Amended return 2011 You must report this item as income at its fair market value. Amended return 2011 Your out-of-pocket party expenses are subject to the 50% limit for meal and entertainment expenses. Amended return 2011 These expenses are deductible as miscellaneous itemized deductions subject to the 2%-of-AGI limit on Schedule A (Form 1040), but only up to the amount of income you receive for giving the party. Amended return 2011 For more information about the 50% limit for meal and entertainment expenses, see chapter 26. Amended return 2011 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. Amended return 2011 This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. Amended return 2011 However, interest income received as a result of life insurance proceeds may be taxable. Amended return 2011 Proceeds not received in installments. Amended return 2011   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. Amended return 2011 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. Amended return 2011 Proceeds received in installments. Amended return 2011   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. Amended return 2011   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. Amended return 2011 Include anything over this excluded part in your income as interest. Amended return 2011 Surviving spouse. Amended return 2011   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude up to $1,000 a year of the interest included in the installments. Amended return 2011 If you remarry, you can continue to take the exclusion. Amended return 2011 Surrender of policy for cash. Amended return 2011   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. Amended return 2011 In most cases, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. Amended return 2011    You should receive a Form 1099-R showing the total proceeds and the taxable part. Amended return 2011 Report these amounts on lines 16a and 16b of Form 1040 or lines 12a and 12b of Form 1040A. Amended return 2011 More information. Amended return 2011   For more information, see Life Insurance Proceeds in Publication 525. Amended return 2011 Endowment Contract Proceeds An endowment contract is a policy under which you are paid a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. Amended return 2011 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. Amended return 2011 To determine your cost, subtract any amount that you previously received under the contract and excluded from your income from the total premiums (or other consideration) paid for the contract. Amended return 2011 Include the part of the lump sum payment that is more than your cost in your income. Amended return 2011 Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are excluded from income if the insured is terminally or chronically ill. Amended return 2011 Viatical settlement. Amended return 2011   This is the sale or assignment of any part of the death benefit under a life insurance contract to a viatical settlement provider. Amended return 2011 A viatical settlement provider is a person who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill and who meets the requirements of section 101(g)(2)(B) of the Internal Revenue Code. Amended return 2011 Exclusion for terminal illness. Amended return 2011    Accelerated death benefits are fully excludable if the insured is a terminally ill individual. Amended return 2011 This is a person who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. Amended return 2011 Exclusion for chronic illness. Amended return 2011    If the insured is a chronically ill individual who is not terminally ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Amended return 2011 Accelerated death benefits paid on a per diem or other periodic basis are excludable up to a limit. Amended return 2011 This limit applies to the total of the accelerated death benefits and any periodic payments received from long-term care insurance contracts. Amended return 2011 For information on the limit and the definitions of chronically ill individual, qualified long-term care services, and long-term care insurance contracts, see Long-Term Care Insurance Contracts under Sickness and Injury Benefits in Publication 525. Amended return 2011 Exception. Amended return 2011   The exclusion does not apply to any amount paid to a person (other than the insured) who has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the person, or Has a financial interest in the person's business. Amended return 2011 Form 8853. Amended return 2011   To claim an exclusion for accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. Amended return 2011 You do not have to file Form 8853 to exclude accelerated death benefits paid on the basis of actual expenses incurred. Amended return 2011 Public Safety Officer Killed in the Line of Duty If you are a survivor of a public safety officer who was killed in the line of duty, you may be able to exclude from income certain amounts you receive. Amended return 2011 For this purpose, the term public safety officer includes law enforcement officers, firefighters, chaplains, and rescue squad and ambulance crew members. Amended return 2011 For more information, see Publication 559, Survivors, Executors, and Administrators. Amended return 2011 Partnership Income A partnership generally is not a taxable entity. Amended return 2011 The income, gains, losses, deductions, and credits of a partnership are passed through to the partners based on each partner's distributive share of these items. Amended return 2011 Schedule K-1 (Form 1065). Amended return 2011    Although a partnership generally pays no tax, it must file an information return on Form 1065, U. Amended return 2011 S. Amended return 2011 Return of Partnership Income, and send Schedule K-1 (Form 1065) to each partner. Amended return 2011 In addition, the partnership will send each partner a copy of the Partner's Instructions for Schedule K-1 (Form 1065) to help each partner report his or her share of the partnership's income, deductions, credits, and tax preference items. Amended return 2011 Keep Schedule K-1 (Form 1065) for your records. Amended return 2011 Do not attach it to your Form 1040, unless you are specifically required to do so. Amended return 2011 For more information on partnerships, see Publication 541, Partnerships. Amended return 2011 Qualified joint venture. Amended return 2011   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. Amended return 2011 To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Amended return 2011 For further information on how to make the election and which schedule(s) to file, see the instructions for your individual tax return. Amended return 2011 S Corporation Income In most cases, an S corporation does not pay tax on its income. Amended return 2011 Instead, the income, losses, deductions, and credits of the corporation are passed through to the shareholders based on each shareholder's pro rata share. Amended return 2011 Schedule K-1 (Form 1120S). Amended return 2011   An S corporation must file a return on Form 1120S, U. Amended return 2011 S. Amended return 2011 Income Tax Return for an S Corporation, and send Schedule K-1 (Form 1120S) to each shareholder. Amended return 2011 In addition, the S corporation will send each shareholder a copy of the Shareholder's Instructions for Schedule K-1 (Form 1120S) to help each shareholder report his or her share of the S corporation's income, losses, credits, and deductions. Amended return 2011 Keep Schedule K-1 (Form 1120S) for your records. Amended return 2011 Do not attach it to your Form 1040, unless you are specifically required to do so. Amended return 2011 For more information on S corporations and their shareholders, see the Instructions for Form 1120S. Amended return 2011 Recoveries A recovery is a return of an amount you deducted or took a credit for in an earlier year. Amended return 2011 The most common recoveries are refunds, reimbursements, and rebates of deductions itemized on Schedule A (Form 1040). Amended return 2011 You also may have recoveries of non-itemized deductions (such as payments on previously deducted bad debts) and recoveries of items for which you previously claimed a tax credit. Amended return 2011 Tax benefit rule. Amended return 2011   You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. Amended return 2011 For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year. Amended return 2011 For more information, see Publication 525. Amended return 2011 Federal income tax refund. Amended return 2011   Refunds of federal income taxes are not included in your income because they are never allowed as a deduction from income. Amended return 2011 State tax refund. Amended return 2011   If you received a state or local income tax refund (or credit or offset) in 2013, you generally must include it in income if you deducted the tax in an earlier year. Amended return 2011 The payer should send Form 1099-G, Certain Government Payments, to you by January 31, 2014. Amended return 2011 The IRS also will receive a copy of the Form 1099-G. Amended return 2011 If you file Form 1040, use the State and Local Income Tax Refund Worksheet in the 2013 Form 1040 instructions for line 10 to figure the amount (if any) to include in your income. Amended return 2011 See Publication 525 for when you must use another worksheet. Amended return 2011   If you could choose to deduct for a tax year either: State and local income taxes, or State and local general sales taxes, then the maximum refund that you may have to include in income is limited to the excess of the tax you chose to deduct for that year over the tax you did not choose to deduct for that year. Amended return 2011 For examples, see Publication 525. Amended return 2011 Mortgage interest refund. Amended return 2011    If you received a refund or credit in 2013 of mortgage interest paid in an earlier year, the amount should be shown in box 3 of your Form 1098, Mortgage Interest Statement. Amended return 2011 Do not subtract the refund amount from the interest you paid in 2013. Amended return 2011 You may have to include it in your income under the rules explained in the following discussions. Amended return 2011 Interest on recovery. Amended return 2011   Interest on any of the amounts you recover must be reported as interest income in the year received. Amended return 2011 For example, report any interest you received on state or local income tax refunds on Form 1040, line 8a. Amended return 2011 Recovery and expense in same year. Amended return 2011   If the refund or other recovery and the expense occur in the same year, the recovery reduces the deduction or credit and is not reported as income. Amended return 2011 Recovery for 2 or more years. Amended return 2011   If you receive a refund or other recovery that is for amounts you paid in 2 or more separate years, you must allocate, on a pro rata basis, the recovered amount between the years in which you paid it. Amended return 2011 This allocation is necessary to determine the amount of recovery from any earlier years and to determine the amount, if any, of your allowable deduction for this item for the current year. Amended return 2011 For information on how to compute the allocation, see Recoveries in Publication 525. Amended return 2011 Itemized Deduction Recoveries If you recover any amount that you deducted in an earlier year on Schedule A (Form 1040), you generally must include the full amount of the recovery in your income in the year you receive it. Amended return 2011 Where to report. Amended return 2011   Enter your state or local income tax refund on Form 1040, line 10, and the total of all other recoveries as other income on Form 1040, line 21. Amended return 2011 You cannot use Form 1040A or Form 1040EZ. Amended return 2011 Standard deduction limit. Amended return 2011   You generally are allowed to claim the standard deduction if you do not itemize your deductions. Amended return 2011 Only your itemized deductions that are more than your standard deduction are subject to the recovery rule (unless you are required to itemize your deductions). Amended return 2011 If your total deductions on the earlier year return were not more than your income for that year, include in your income this year the lesser of: Your recoveries, or The amount by which your itemized deductions exceeded the standard deduction. Amended return 2011 Example. Amended return 2011 For 2012, you filed a joint return. Amended return 2011 Your taxable income was $60,000 and you were not entitled to any tax credits. Amended return 2011 Your standard deduction was $11,900, and you had itemized deductions of $14,000. Amended return 2011 In 2013, you received the following recoveries for amounts deducted on your 2012 return: Medical expenses $200 State and local income tax refund 400 Refund of mortgage interest 325 Total recoveries $925 None of the recoveries were more than the deductions taken for 2012. Amended return 2011 The difference between the state and local income tax you deducted and your local general sales tax was more than $400. Amended return 2011 Your total recoveries are less than the amount by which your itemized deductions exceeded the standard deduction ($14,000 − 11,900 = $2,100), so you must include your total recoveries in your income for 2013. Amended return 2011 Report the state and local income tax refund of $400 on Form 1040, line 10, and the balance of your recoveries, $525, on Form 1040, line 21. Amended return 2011 Standard deduction for earlier years. Amended return 2011   To determine if amounts recovered in 2013 must be included in your income, you must know the standard deduction for your filing status for the year the deduction was claimed. Amended return 2011 Look in the instructions for your tax return from prior years to locate the standard deduction for the filing status for that prior year. Amended return 2011 Example. Amended return 2011 You filed a joint return on Form 1040 for 2012 with taxable income of $45,000. Amended return 2011 Your itemized deductions were $12,350. Amended return 2011 The standard deduction that you could have claimed was $11,900. Amended return 2011 In 2013, you recovered $2,100 of your 2012 itemized deductions. Amended return 2011 None of the recoveries were more than the actual deductions for 2012. Amended return 2011 Include $450 of the recoveries in your 2013 income. Amended return 2011 This is the smaller of your recoveries ($2,100) or the amount by which your itemized deductions were more than the standard deduction ($12,350 − $11,900 = $450). Amended return 2011 Recovery limited to deduction. Amended return 2011   You do not include in your income any amount of your recovery that is more than the amount you deducted in the earlier year. Amended return 2011 The amount you include in your income is limited to the smaller of: The amount deducted on Schedule A (Form 1040), or The amount recovered. Amended return 2011 Example. Amended return 2011 During 2012 you paid $1,700 for medical expenses. Amended return 2011 From this amount you subtracted $1,500, which was 7. Amended return 2011 5% of your adjusted gross income. Amended return 2011 Your actual medical expense deduction was $200. Amended return 2011 In 2013, you received a $500 reimbursement from your medical insurance for your 2012 expenses. Amended return 2011 The only amount of the $500 reimbursement that must be included in your income for 2013 is $200—the amount actually deducted. Amended return 2011 Other recoveries. Amended return 2011   See Recoveries in Publication 525 if: You have recoveries of items other than itemized deductions, or You received a recovery for an item for which you claimed a tax credit (other than investment credit or foreign tax credit) in a prior year. Amended return 2011 Rents from Personal Property If you rent out personal property, such as equipment or vehicles, how you report your income and expenses is in most cases determined by: Whether or not the rental activity is a business, and Whether or not the rental activity is conducted for profit. Amended return 2011 In most cases, if your primary purpose is income or profit and you are involved in the rental activity with continuity and regularity, your rental activity is a business. Amended return 2011 See Publication 535, Business Expenses, for details on deducting expenses for both business and not-for-profit activities. Amended return 2011 Reporting business income and expenses. Amended return 2011    If you are in the business of renting personal property, report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Amended return 2011 The form instructions have information on how to complete them. Amended return 2011 Reporting nonbusiness income. Amended return 2011   If you are not in the business of renting personal property, report your rental income on Form 1040, line 21. Amended return 2011 List the type and amount of the income on the dotted line next to line 21. Amended return 2011 Reporting nonbusiness expenses. Amended return 2011   If you rent personal property for profit, include your rental expenses in the total amount you enter on Form 1040, line 36. Amended return 2011 Also enter the amount and “PPR” on the dotted line next to line 36. Amended return 2011   If you do not rent personal property for profit, your deductions are limited and you cannot report a loss to offset other income. Amended return 2011 See Activity not for profit , under Other Income, later. Amended return 2011 Repayments If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Amended return 2011 Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. Amended return 2011 Generally, you can claim a deduction or credit only if the repayment qualifies as an expense or loss incurred in your trade or business or in a for-profit transaction. Amended return 2011 Type of deduction. Amended return 2011   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. Amended return 2011 You generally deduct the repayment on the same form or schedule on which you previously reported it as income. Amended return 2011 For example, if you reported it as self-employment income, deduct it as a business expense on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). Amended return 2011 If you reported it as a capital gain, deduct it as a capital loss as explained in the Instructions for Schedule D (Form 1040). Amended return 2011 If you reported it as wages, unemployment compensation, or other nonbusiness income, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040). Amended return 2011 Repaid social security benefits. Amended return 2011   If you repaid social security benefits or equivalent railroad retirement benefits, see Repayment of benefits in chapter 11. Amended return 2011 Repayment of $3,000 or less. Amended return 2011   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Amended return 2011 If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 23. Amended return 2011 Repayment over $3,000. Amended return 2011   If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). Amended return 2011 However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. Amended return 2011 This means that at the time you included the income, it appeared that you had an unrestricted right to it. Amended return 2011 If you qualify for this choice, figure your tax under both methods and compare the results. Amended return 2011 Use the method (deduction or credit) that results in less tax. Amended return 2011 When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. Amended return 2011 Each instance of repayment is not considered separately. Amended return 2011 Method 1. Amended return 2011   Figure your tax for 2013 claiming a deduction for the repaid amount. Amended return 2011 If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 28. Amended return 2011 Method 2. Amended return 2011   Figure your tax for 2013 claiming a credit for the repaid amount. Amended return 2011 Follow these steps. Amended return 2011 Figure your tax for 2013 without deducting the repaid amount. Amended return 2011 Refigure your tax from the earlier year without including in income the amount you repaid in 2013. Amended return 2011 Subtract the tax in (2) from the tax shown on your return for the earlier year. Amended return 2011 This is the credit. Amended return 2011 Subtract the answer in (3) from the tax for 2013 figured without the deduction (Step 1). Amended return 2011   If method 1 results in less tax, deduct the amount repaid. Amended return 2011 If method 2 results in less tax, claim the credit figured in (3) above on Form 1040, line 71, by adding the amount of the credit to any other credits on this line, and entering “I. Amended return 2011 R. Amended return 2011 C. Amended return 2011 1341” in the column to the right of line 71. Amended return 2011   An example of this computation can be found in Publication 525. Amended return 2011 Repaid wages subject to social security and Medicare taxes. Amended return 2011   If you had to repay an amount that you included in your wages or compensation in an earlier year on which social security, Medicare, or tier 1 RRTA taxes were paid, ask your employer to refund the excess amount to you. Amended return 2011 If the employer refuses to refund the taxes, ask for a statement indicating the amount of the overcollection to support your claim. Amended return 2011 File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Amended return 2011 Repaid wages subject to Additional Medicare Tax. Amended return 2011   Employers cannot make an adjustment or file a claim for refund for Additional Medicare Tax withholding when there is a repayment of wages received by an employee in a prior year because the employee determines liability for Additional Medicare Tax on the employee's income tax return for the prior year. Amended return 2011 If you had to repay an amount that you included in your wages or compensation in an earlier year, and on which Additional Medicare Tax was paid, you may be able to recover the Additional Medicare Tax paid on the amount. Amended return 2011 To recover Additional Medicare Tax on the repaid wages or compensation, you must file Form 1040X, Amended U. Amended return 2011 S. Amended return 2011 Individual Income Tax Return, for the prior year in which the wages or compensation were originally received. Amended return 2011 See the Instructions for Form 1040X. Amended return 2011 Royalties Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. Amended return 2011 In most cases you report royalties in Part I of Schedule E (Form 1040). Amended return 2011 However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc. Amended return 2011 , report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Amended return 2011 Copyrights and patents. Amended return 2011   Royalties from copyrights on literary, musical, or artistic works, and similar property, or from patents on inventions, are amounts paid to you for the right to use your work over a specified period of time. Amended return 2011 Royalties generally are based on the number of units sold, such as the number of books, tickets to a performance, or machines sold. Amended return 2011 Oil, gas, and minerals. Amended return 2011   Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property. Amended return 2011 The royalties are based on units, such as barrels, tons, etc. Amended return 2011 , and are paid to you by a person or company who leases the property from you. Amended return 2011 Depletion. Amended return 2011   If you are the owner of an economic interest in mineral deposits or oil and gas wells, you can recover your investment through the depletion allowance. Amended return 2011 For information on this subject, see chapter 9 of Publication 535. Amended return 2011 Coal and iron ore. Amended return 2011   Under certain circumstances, you can treat amounts you receive from the disposal of coal and iron ore as payments from the sale of a capital asset, rather than as royalty income. Amended return 2011 For information about gain or loss from the sale of coal and iron ore, see Publication 544. Amended return 2011 Sale of property interest. Amended return 2011   If you sell your complete interest in oil, gas, or mineral rights, the amount you receive is considered payment for the sale of property used in a trade or business under section 1231, not royalty income. Amended return 2011 Under certain circumstances, the sale is subject to capital gain or loss treatment as explained in the Instructions for Schedule D (Form 1040). Amended return 2011 For more information on selling section 1231 property, see chapter 3 of Publication 544. Amended return 2011   If you retain a royalty, an overriding royalty, or a net profit interest in a mineral property for the life of the property, you have made a lease or a sublease, and any cash you receive for the assignment of other interests in the property is ordinary income subject to a depletion allowance. Amended return 2011 Part of future production sold. Amended return 2011   If you own mineral property but sell part of the future production, in most cases you treat the money you receive from the buyer at the time of the sale as a loan from the buyer. Amended return 2011 Do not include it in your income or take depletion based on it. Amended return 2011   When production begins, you include all the proceeds in your income, deduct all the production expenses, and deduct depletion from that amount to arrive at your taxable income from the property. Amended return 2011 Unemployment Benefits The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits. Amended return 2011 Unemployment compensation. Amended return 2011   You must include in income all unemployment compensation you receive. Amended return 2011 You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you. Amended return 2011 In most cases, you enter unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Amended return 2011 Types of unemployment compensation. Amended return 2011   Unemployment compensation generally includes any amount received under an unemployment compensation law of the United States or of a state. Amended return 2011 It includes the following benefits. Amended return 2011 Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund. Amended return 2011 State unemployment insurance benefits. Amended return 2011 Railroad unemployment compensation benefits. Amended return 2011 Disability payments from a government program paid as a substitute for unemployment compensation. Amended return 2011 (Amounts received as workers' compensation for injuries or illness are not unemployment compensation. Amended return 2011 See chapter 5 for more information. Amended return 2011 ) Trade readjustment allowances under the Trade Act of 1974. Amended return 2011 Unemployment assistance under the Disaster Relief and Emergency Assistance Act. Amended return 2011 Unemployment assistance under the Airline Deregulation Act of 1974 Program. Amended return 2011 Governmental program. Amended return 2011   If you contribute to a governmental unemployment compensation program and your contributions are not deductible, amounts you receive under the program are not included as unemployment compensation until you recover your contributions. Amended return 2011 If you deducted all of your contributions to the program, the entire amount you receive under the program is included in your income. Amended return 2011 Repayment of unemployment compensation. Amended return 2011   If you repaid in 2013 unemployment compensation you received in 2013, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Amended return 2011 On the dotted line next to your entry enter “Repaid” and the amount you repaid. Amended return 2011 If you repaid unemployment compensation in 2013 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. Amended return 2011 If the amount is more than $3,000, see Repayments , earlier. Amended return 2011 Tax withholding. Amended return 2011   You can choose to have federal income tax withheld from your unemployment compensation. Amended return 2011 To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Amended return 2011 Tax will be withheld at 10% of your payment. Amended return 2011    If you do not choose to have tax withheld from your unemployment compensation, you may be liable for estimated tax. Amended return 2011 If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Amended return 2011 For more information on estimated tax, see chapter 4. Amended return 2011 Supplemental unemployment benefits. Amended return 2011   Benefits received from an employer-financed fund (to which the employees did not contribute) are not unemployment compensation. Amended return 2011 They are taxable as wages and are subject to withholding for income tax. Amended return 2011 They may be subject to social security and Medicare taxes. Amended return 2011 For more information, see Supplemental Unemployment Benefits in section 5 of Publication 15-A, Employer's Supplemental Tax Guide. Amended return 2011 Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Amended return 2011 Repayment of benefits. Amended return 2011   You may have to repay some of your supplemental unemployment benefits to qualify for trade readjustment allowances under the Trade Act of 1974. Amended return 2011 If you repay supplemental unemployment benefits in the same year you receive them, reduce the total benefits by the amount you repay. Amended return 2011 If you repay the benefits in a later year, you must include the full amount of the benefits received in your income for the year you received them. Amended return 2011   Deduct the repayment in the later year as an adjustment to gross income on Form 1040. Amended return 2011 (You cannot use Form 1040A or Form 1040EZ. Amended return 2011 ) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36. Amended return 2011 If the amount you repay in a later year is more than $3,000, you may be able to take a credit against your tax for the later year instead of deducting the amount repaid. Amended return 2011 For more information on this, see Repayments , earlier. Amended return 2011 Private unemployment fund. Amended return 2011   Unemployment benefit payments from a private (nonunion) fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. Amended return 2011 Report the taxable amount on Form 1040, line 21. Amended return 2011 Payments by a union. Amended return 2011   Benefits paid to you as an unemployed member of a union from regular union dues are included in your income on Form 1040, line 21. Amended return 2011 However, if you contribute to a special union fund and your payments to the fund are not deductible, the unemployment benefits you receive from the fund are includible in your income only to the extent they are more than your contributions. Amended return 2011 Guaranteed annual wage. Amended return 2011   Payments you receive from your employer during periods of unemployment, under a union agreement that guarantees you full pay during the year, are taxable as wages. Amended return 2011 Include them on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Amended return 2011 State employees. Amended return 2011   Payments similar to a state's unemployment compensation may be made by the state to its employees who are not covered by the state's unemployment compensation law. Amended return 2011 Although the payments are fully taxable, do not report them as unemployment compensation. Amended return 2011 Report these payments on Form 1040, line 21. Amended return 2011 Welfare and Other Public Assistance Benefits Do not include in your income governmental benefit payments from a public welfare fund based upon need, such as payments to blind individuals under a state public assistance law. Amended return 2011 Payments from a state fund for the victims of crime should not be included in the victims' incomes if they are in the nature of welfare payments. Amended return 2011 Do not deduct medical expenses that are reimbursed by such a fund. Amended return 2011 You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently. Amended return 2011 Reemployment Trade Adjustment Assistance (RTAA) payments. Amended return 2011   RTAA payments received from a state must be included in your income. Amended return 2011 The state must send you Form 1099-G to advise you of the amount you should include in income. Amended return 2011 The amount should be reported on Form 1040, line 21. Amended return 2011 Persons with disabilities. Amended return 2011   If you have a disability, you must include in income compensation you receive for services you perform unless the compensation is otherwise excluded. Amended return 2011 However, you do not include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. Amended return 2011 Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work. Amended return 2011 Disaster relief grants. Amended return 2011    Do not include post-disaster grants received under the Robert T. Amended return 2011 Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, child care, or funeral expenses. Amended return 2011 Do not deduct casualty losses or medical expenses that are specifically reimbursed by these disaster relief grants. Amended return 2011 If you have deducted a casualty loss for the loss of your personal residence and you later receive a disaster relief grant for the loss of the same residence, you may have to include part or all of the grant in your taxable income. Amended return 2011 See Recoveries , earlier. Amended return 2011 Unemployment assistance payments under the Act are taxable unemployment compensation. Amended return 2011 See Unemployment compensation under Unemployment Benefits, earlier. Amended return 2011 Disaster relief payments. Amended return 2011   You can exclude from income any amount you receive that is a qualified disaster relief payment. Amended return 2011 A qualified disaster relief payment is an amount paid to you: To reimburse or pay reasonable and necessary personal, family, living, or funeral expenses that result from a qualified disaster; To reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation of your home or repair or replacement of its contents to the extent it is due to a qualified disaster; By a person engaged in the furnishing or sale of transportation as a common carrier because of the death or personal physical injuries incurred as a result of a qualified disaster; or By a federal, state, or local government, or agency, or instrumentality in connection with a qualified disaster in order to promote the general welfare. Amended return 2011 You can exclude this amount only to the extent any expense it pays for is not paid for by insurance or otherwise. Amended return 2011 The exclusion does not apply if you were a participant or conspirator in a terrorist action or a representative of one. Amended return 2011   A qualified disaster is: A disaster which results from a terrorist or military action; A federally declared disaster; or A disaster which results from an accident involving a common carrier, or from any other event, which is determined to be catastrophic by the Secretary of the Treasury or his or her delegate. Amended return 2011   For amounts paid under item (4), a disaster is qualified if it is determined by an applicable federal, state, or local authority to warrant assistance from the federal, state, or local government, agency, or instrumentality. Amended return 2011 Disaster mitigation payments. Amended return 2011   You also can exclude from income any amount you receive that is a qualified disaster mitigation payment. Amended return 2011 Qualified disaster mitigation payments are also most commonly paid to you in the period immediately following damage to property as a result of a natural disaster. Amended return 2011 However, disaster mitigation payments are used to mitigate (reduce the severity of) potential damage from future natural disasters. Amended return 2011 They are paid to you through state and local governments based on the provisions of the Robert T. Amended return 2011 Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act. Amended return 2011   You cannot increase the basis or adjusted basis of your property for improvements made with nontaxable disaster mitigation payments. Amended return 2011 Home Affordable Modification Program (HAMP). Amended return 2011   If you benefit from Pay-for-Performance Success Payments under HAMP, the payments are not taxable. Amended return 2011 Mortgage assistance payments under section 235 of the National Housing Act. Amended return 2011   Payments made under section 235 of the National Housing Act for mortgage assistance are not included in the homeowner's income. Amended return 2011 Interest paid for the homeowner under the mortgage assistance program cannot be deducted. Amended return 2011 Medicare. Amended return 2011   Medicare benefits received under title XVIII of the Social Security Act are not includible in the gross income of the individuals for whom they are paid. Amended return 2011 This includes basic (part A (Hospital Insurance Benefits for the Aged)) and supplementary (part B (Supplementary Medical Insurance Benefits for the Aged)). Amended return 2011 Old-age, survivors, and disability insurance benefits (OASDI). Amended return 2011   Generally, OASDI payments under section 202 of title II of the Social Security Act are not includible in the gross income of the individuals to whom they are paid. Amended return 2011 This applies to old-age insurance benefits, and insurance benefits for wives, husbands, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment. Amended return 2011 Nutrition Program for the Elderly. Amended return 2011    Food benefits you receive under the Nutrition Program for the Elderly are not taxable. Amended return 2011 If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you are also eligible for food benefits. Amended return 2011 Payments to reduce cost of winter energy. Amended return 2011   Payments made by a state to qualified people to reduce their cost of winter energy use are not taxable. Amended return 2011 Other Income The following brief discussions are arranged in alphabetical order. Amended return 2011 Other income items briefly discussed below are referenced to publications which provide more topical information. Amended return 2011 Activity not for profit. Amended return 2011   You must include on your return income from an activity from which you do not expect to make a profit. Amended return 2011 An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. Amended return 2011 Enter this income on Form 1040, line 21. Amended return 2011 Deductions for expenses related to the activity are limited. Amended return 2011 They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040). Amended return 2011 See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit. Amended return 2011 Alaska Permanent Fund dividend. Amended return 2011   If you received a payment from Alaska's mineral income fund (Alaska Permanent Fund dividend), report it as income on line 21 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Amended return 2011 The state of Alaska sends each recipient a document that shows the amount of the payment with the check. Amended return 2011 The amount also is reported to IRS. Amended return 2011 Alimony. Amended return 2011   Include in your income on Form 1040, line 11, any alimony payments you receive. Amended return 2011 Amounts you receive for child support are not income to you. Amended return 2011 Alimony and child support payments are discussed in chapter 18. Amended return 2011 Bribes. Amended return 2011   If you receive a bribe, include it in your income. Amended return 2011 Campaign contributions. Amended return 2011   These contributions are not income to a candidate unless they are diverted to his or her personal use. Amended return 2011 To be exempt from tax, the contributions must be spent for campaign purposes or kept in a fund for use in future campaigns. Amended return 2011 However, interest earned on bank deposits, dividends received on contributed securities, and net gains realized on sales of contributed securities are taxable and must be reported on Form 1120-POL, U. Amended return 2011 S. Amended return 2011 Income Tax Return for Certain Political Organizations. Amended return 2011 Excess campaign funds transferred to an office account must be included in the officeholder's income on Form 1040, line 21, in the year transferred. Amended return 2011 Car pools. Amended return 2011   Do not include in your income amounts you receive from the passengers for driving a car in a car pool to and from work. Amended return 2011 These amounts are considered reimbursement for your expenses. Amended return 2011 However, this rule does not apply if you have developed car pool arrangements into a profit-making business of transporting workers for hire. Amended return 2011 Cash rebates. Amended return 2011   A cash rebate you receive from a dealer or manufacturer of an item you buy is not income, but you must reduce your basis by the amount of the rebate. Amended return 2011 Example. Amended return 2011 You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. Amended return 2011 The $2,000 is not income to you. Amended return 2011 Your basis in the car is $22,000. Amended return 2011 This is the basis on which you figure gain or loss if you sell the car and depreciation if you use it for business. Amended return 2011 Casualty insurance and other reimbursements. Amended return 2011   You generally should not report these reimbursements on your return unless you are figuring gain or loss from the casualty or theft. Amended return 2011 See chapter 25 for more information. Amended return 2011 Child support payments. Amended return 2011   You should not report these payments on your return. Amended return 2011 See chapter 18 for more information. Amended return 2011 Court awards and damages. Amended return 2011   To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. Amended return 2011 The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. Amended return 2011 Include the following as ordinary income. Amended return 2011 Interest on any award. Amended return 2011 Compensation for lost wages or lost profits in most cases. Amended return 2011 Punitive damages, in most cases. Amended return 2011 It does not matter if they relate to a physical injury or physical sickness. Amended return 2011 Amounts received in settlement of pension rights (if you did not contribute to the plan). Amended return 2011 Damages for: Patent or copyright infringement, Breach of contract, or Interference with business operations. Amended return 2011 Back pay and damages for emotional distress received to satisfy a claim under title VII of the Civil Rights Act of 1964. Amended return 2011 Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income. Amended return 2011   Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments). Amended return 2011 Emotional distress. Amended return 2011   Emotional distress itself is not a physical injury or physical sickness, but damages you receive for emotional distress due to a physical injury or sickness are treated as received for the physical injury or sickness. Amended return 2011 Do not include them in your income. Amended return 2011   If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, employment discrimination or injury to reputation), you must include the damages in your income, except for any damages you receive for medical care due to that emotional distress. Amended return 2011 Emotional distress includes physical symptoms that result from emotional distress, such as headaches, insomnia, and stomach disorders. Amended return 2011 Deduction for costs involved in unlawful discrimination suits. Amended return 2011   You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. Amended return 2011 For more information, see Publication 525. Amended return 2011 Credit card insurance. Amended return 2011   In most cases, if you receive benefits under a credit card disability or unemployment insurance plan, the benefits are taxable to you. Amended return 2011 These plans make the minimum monthly payment on your credit card account if you cannot make the payment due to injury, illness, disability, or unemployment. Amended return 2011 Report on Form 1040, line 21, the amount of benefits you received during the year that is more than the amount of the premiums you paid during the year. Amended return 2011 Down payment assistance. Amended return 2011   If you purchase a home and receive assistance from a nonprofit corporation to make the down payment, that assistance is not included in your income. Amended return 2011 If the corporation qualifies as a tax-exempt charitable organization, the assistance is treated as a gift and is included in your basis of the house. Amended return 2011 If the corporation does not qualify, the assistance is treated as a rebate or reduction of the purchase price and is not included in your basis. Amended return 2011 Employment agency fees. Amended return 2011   If you get a job through an employment agency, and the fee is paid by your employer, the fee is not includible in your income if you are not liable for it. Amended return 2011 However, if you pay it and your employer reimburses you for it, it is includible in your income. Amended return 2011 Energy conservation subsidies. Amended return 2011   You can exclude from gross income any subsidy provided, either directly or indirectly, by public utilities for the purchase or installation of an energy conservation measure for a dwelling unit. Amended return 2011 Energy conservation measure. Amended return 2011   This includes installations or modifications that are primarily designed to reduce consumption of electricity or natural gas, or improve the management of energy demand. Amended return 2011 Dwelling unit. Amended return 2011   This includes a house, apartment, condominium, mobile home, boat, or similar property. Amended return 2011 If a building or structure contains both dwelling and other units, any subsidy must be properly allocated. Amended return 2011 Estate and trust income. Amended return 2011    An estate or trust, unlike a partnership, may have to pay federal income tax. Amended return 2011 If you are a beneficiary of an estate or trust, you may be taxed on your share of its income distributed or required to be distributed to you. Amended return 2011 However, there is never a double tax. Amended return 2011 Estates and trusts file their returns on Form 1041, U. Amended return 2011 S. Amended return 2011 Income Tax Return for Estates and Trusts, and your share of the income is reported to you on Schedule K-1 (Form 1041). Amended return 2011 Current income required to be distributed. Amended return 2011   If you are the beneficiary of an estate or trust that must distribute all of its current income, you must report your share of the distributable net income, whether or not you actually received it. Amended return 2011 Current income not required to be distributed. Amended return 2011    If you are the beneficiary of an estate or trust and the fiduciary has the choice of whether to distribute all or part of the current income, you must report: All income that is required to be distributed to you, whether or not it is actually distributed, plus All other amounts actually paid or credited to you, up to the amount of your share of distributable net income. Amended return 2011 How to report. Amended return 2011   Treat each item of income the same way that the estate or trust would treat it. Amended return 2011 For example, if a trust's dividend income is distributed to you, you report the distribution as dividend income on your return. Amended return 2011 The same rule applies to distributions of tax-exempt interest and capital gains. Amended return 2011   The fiduciary of the estate or trust must tell you the type of items making up your share of the estate or trust income and any credits you are allowed on your individual income tax return. Amended return 2011 Losses. Amended return 2011   Losses of estates and trusts generally are not deductible by the beneficiaries. Amended return 2011 Grantor trust. Amended return 2011   Income earned by a grantor trust is taxable to the grantor, not the beneficiary, if the grantor keeps certain control over the trust. Amended return 2011 (The grantor is the one who transferred property to the trust. Amended return 2011 ) This rule applies if the property (or income from the property) put into the trust will or may revert (be returned) to the grantor or the grantor's spouse. Amended return 2011   Generally, a trust is a grantor trust if the grantor has a reversionary interest valued (at the date of transfer) at more than 5% of the value of the transferred property. Amended return 2011 Expenses paid by another. Amended return 2011   If your personal expenses are paid for by another person, such as a corporation, the payment may be taxable to you depending upon your relationship with that person and the nature of the payment. Amended return 2011 But if the payment makes up for a loss caused by that person, and only restores you to the position you were in before the loss, the payment is not includible in your income. Amended return 2011 Fees for services. Amended return 2011   Include all fees for your services in your income. Amended return 2011 Examples of these fees are amounts you receive for services you perform as: A corporate director, An executor, administrator, or personal representative of an estate, A manager of a trade or business you operated before declaring Chapter 11 bankruptcy, A notary public, or An election precinct official. Amended return 2011 Nonemployee compensation. Amended return 2011   If you are not an employee and the fees for your services from the same payer total $600 or more for the year, you may receive a Form 1099-MISC. Amended return 2011 You may need to report your fees as self-employment income. Amended return 2011 See Self-Employed Persons , in chapter 1, for a discussion of when you are considered self-employed. Amended return 2011 Corporate director. Amended return 2011   Corporate director fees are self-employment income. Amended return 2011 Report these payments on Schedule C or Schedule C-EZ (Form 1040). Amended return 2011 Personal representatives. Amended return 2011   All personal representatives must include in their gross income fees paid to them from an estate. Amended return 2011 If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on Form 1040, line 21. Amended return 2011 If you are in the trade or business of being an executor, report these fees as self-employment income on Schedule C or Schedule C-EZ (Form 1040). Amended return 2011 The fee is not includible in income if it is waived. Amended return 2011 Manager of trade or business for bankruptcy estate. Amended return 2011   Include in your income all payments received from your bankruptcy estate for managing or operating a trade or business that you operated before you filed for bankruptcy. Amended return 2011 Report this income on Form 1040, line 21. Amended return 2011 Notary public. Amended return 2011    Report payments for these services on Schedule C or Schedule C-EZ (Form 1040). Amended return 2011 These payments are not subject to self-employment tax. Amended return 2011 See the separate instructions for Schedule SE (Form 1040) for details. Amended return 2011 Election precinct official. Amended return 2011    You should receive a Form W-2 showing payments for services performed as an election official or election worker. Amended return 2011 Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Amended return 2011 Foster care providers. Amended return 2011   Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. Amended return 2011 However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments. Amended return 2011   A qualified foster individual is a person who: Is living in a foster family home, and Was placed there by: An agency of a state or one of its political subdivisions, or A qualified foster care placement agency. Amended return 2011 Difficulty-of-care payments. Amended return 2011   These are additional payments that are designated by the payer as compensation for providing the additional care that is required for physically, mentally, or emotionally handicapped qualified foster individuals. Amended return 2011 A state must determine that the additional compensation is needed, and the care for which the payments are made must be provided in your home. Amended return 2011   You must include in your income difficulty-of-care payments received for more than: 10 qualified foster individuals under age 19, or 5 qualified foster individuals age 19 or older. Amended return 2011 Maintaining space in home. Amended return 2011   If you are paid to maintain space in your home for emergency foster care, you must include the payment in your income. Amended return 2011 Reporting taxable payments. Amended return 2011    If you receive payments that you must include in your income, you are in business as a foster care provider and you are self-employed. Amended return 2011 Report the payments on Schedule C or Schedule C-EZ (Form 1040). Amended return 2011 See Publication 587, Business Use of Your Home, to help you determine the amount you can deduct for the use of your home. Amended return 2011 Found property. Amended return 2011   If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession. Amended return 2011 Free tour. Amended return 2011   If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Amended return 2011 Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. Amended return 2011 You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. Amended return 2011 If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040). Amended return 2011 Gambling winnings. Amended return 2011   You must include your gambling winnings in income on Form 1040, line 21. Amended return 2011 If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. Amended return 2011 Lotteries and raffles. Amended return 2011   Winnings from lotteries and raffles are gambling winnings. Amended return 2011 In addition to cash winnings, you must include in your income the fair market value of bonds, cars, houses, and other noncash prizes. Amended return 2011    If you win a state lottery prize payable in installments, see Publication 525 for more information. Amended return 2011 Form W-2G. Amended return 2011   You may have received a Form W-2G, Certain Gambling Winnings, showing the amount of your gambling winnings and any tax taken out of them. Amended return 2011 Include the amount from box 1 on Form 1040, line 21. Amended return 2011 Include the amount shown in box 4 on Form 1040, line 62, as federal income tax withheld. Amended return 2011 Reporting winnings and recordkeeping. Amended return 2011   For more information on reporting gam