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 File taxes online In general, any interest you receive or that is credited to your account and can be withdrawn is taxable income.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


Update Jan. 24, 2014 — Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, is now obsolete. After June 30, 2013, the FBAR must be filed electronically with FinCEN

The IRS began an open-ended offshore voluntary disclosure program (OVDP) in January 2012 on the heels of strong interest in the 2011 and 2009 programs. The IRS may end the 2012 program at any time in the future. The IRS is offering people with undisclosed income from offshore accounts another opportunity to get current with their tax returns. The 2012 OVDP has a higher penalty rate than the previous program but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk detection by the IRS and possible criminal prosecution.

2012 OVDP Documents and Forms

Questions and Answers

Documents

Forms

Worksheets

News Releases and Fact Sheets

  • IR-2012-64, IRS Says Offshore Effort tops $5 Billion, Announces New Details on the Voluntary Disclosure Program and Closing of Offshore Loophole
  • IR-2012-64SP, Esfuerzo Extranjero del IRS Supera $5 Mil Millones; Detalles del Programa de Divulgación Voluntaria y Cierre de Laguna Jurídica
  • IR-2012-65, IRS Announces Efforts to Help U.S. Citizens Overseas, Including Dual Citizens and Those with Foreigh Retirement Plans
  • IR-2012-65SP, IRS Anuncia Ayuda a Estadounidenses en el Extranjero, Incluyendo Aquellos con Doble Nacionalidad y Planes de Jubilación Extranjeros
  • IR-2012-5, IRS Offshore Programs Produce $4.4 Billion To Date for Nation’s Taxpayers; Offshore Voluntary Disclosure Program Reopens

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Page Last Reviewed or Updated: 24-Jan-2014

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File taxes online Publication 597 - Main Content Table of Contents Application of Treaty Personal Services Pensions, Annuities, Social Security, and AlimonyRoth IRAs. File taxes online Tax-deferred plans. File taxes online Investment Income From Canadian Sources Other Income Charitable ContributionsQualified charities. File taxes online Income Tax Credits Competent Authority Assistance How To Get Tax HelpText of Treaty U. File taxes online S. File taxes online Taxation Canadian Taxation Application of Treaty The benefits of the income tax treaty are generally provided on the basis of residence for income tax purposes. File taxes online That is, a person who is recognized as a resident of the United States who has income from Canada, will often pay less income tax to Canada on that income than if no treaty was in effect. File taxes online Article IV provides definitions of residents of Canada and the United States, and provides specific criteria for applying the treaty in cases where a taxpayer is considered by both countries to be a resident. File taxes online Saving clause. File taxes online   In most instances, a treaty does not affect the right of a country to tax its own residents (including those who are U. File taxes online S. File taxes online citizens) or of the United States to tax its residents or citizens (including U. File taxes online S. File taxes online citizens who are residents of the foreign country). File taxes online This provision is known as the “saving clause. File taxes online ”   For example, an individual who is a U. File taxes online S. File taxes online citizen and a resident of Canada may have dividend income from a U. File taxes online S. File taxes online corporation. File taxes online The treaty provides a maximum rate of 15% on dividends received by a resident of Canada from sources in the United States. File taxes online Even though a resident of Canada, the individual is a U. File taxes online S. File taxes online citizen and the saving clause overrides the treaty article that limits the U. File taxes online S. File taxes online tax to 15%. File taxes online    Exceptions to the saving clause can be found in Article XXIX, paragraph 3. File taxes online Treaty-based position. File taxes online   If you take the position that any U. File taxes online S. File taxes online tax is overruled or otherwise reduced by a U. File taxes online S. File taxes online treaty (a treaty-based position), you generally must disclose that position on Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), and attach it to your return. File taxes online Personal Services A U. File taxes online S. File taxes online citizen or resident who is temporarily present in Canada during the tax year is exempt from Canadian income taxes on pay for services performed, or remittances received from the United States, if the citizen or resident qualifies under one of the treaty exemption provisions set out below. File taxes online Income from employment (Article XV). File taxes online   Income U. File taxes online S. File taxes online residents receive for the performance of dependent personal services in Canada (except as public entertainers) is exempt from Canadian tax if it is not more than $10,000 in Canadian currency for the year. File taxes online If it is more than $10,000 for the year, it is exempt only if: The residents are present in Canada for no more than 183 days in any 12-month period beginning or ending in the year concerned, and The income is not paid by, or on behalf of, a Canadian resident and is not borne by a permanent establishment in Canada. File taxes online    Whether there is a permanent establishment in Canada is determined by the rules set forth in Article V. File taxes online Example. File taxes online You are a U. File taxes online S. File taxes online resident employed under an 8-month contract with a Canadian firm to install equipment in their Montreal plant. File taxes online During the calendar year you were physically present in Canada for 179 days and were paid $16,500 (Canadian) for your services. File taxes online Although you were in Canada for not more than 183 days during the year, your income is not exempt from Canadian income tax because it was paid by a Canadian resident and was more than $10,000 (Canadian) for the year. File taxes online Pay received by a U. File taxes online S. File taxes online resident for work regularly done in more than one country as an employee on a ship, aircraft, motor vehicle, or train operated by a U. File taxes online S. File taxes online resident is exempt from Canadian tax. File taxes online Income from self-employment (Article VII). File taxes online   Income from services performed (other than those performed as an employee) are taxed in Canada if they are attributable to a permanent establishment in Canada. File taxes online This income is treated as business profits, and deductions similar to those allowed under U. File taxes online S. File taxes online law are allowable. File taxes online   If you carry on (or have carried on) business in both Canada and the United States, the business profits are attributable to each country based on the profits that the permanent establishment might be expected to make if it were a distinct and separate person engaged in the same or similar activities. File taxes online The business profits attributable to the permanent establishment include only those profits derived from assets used, risks assumed, and activities performed by the permanent establishment. File taxes online   You may be considered to have a permanent establishment if you meet certain conditions. File taxes online For more information, see Article V (Permanent Establishment) and Article VII (Business Profits). File taxes online Public entertainers (Article XVI). File taxes online   The provisions under income from employment or income from self-employment do not apply to public entertainers (such as theater, motion picture, radio, or television artistes, musicians, or athletes) from the United States who receive more than $15,000 in gross receipts in Canadian currency, including reimbursed expenses, from their entertainment activities in Canada during the calendar year. File taxes online However, this provision for public entertainers does not apply (and the other provisions will apply) to athletes participating in team sports in leagues with regularly scheduled games in both the United States and Canada. File taxes online Compensation paid by the U. File taxes online S. File taxes online Government (Article XIX). File taxes online   Wages, salaries, and similar income (other than pensions) paid to a U. File taxes online S. File taxes online citizen by the United States or any of its agencies, instrumentalities, or political subdivisions for discharging governmental functions are exempt from Canadian income tax. File taxes online   The exemption does not apply to pay for services performed in connection with any trade or business carried on for profit by the United States, or any of its agencies, instrumentalities, or political subdivisions. File taxes online Students and apprentices (Article XX). File taxes online   A full-time student, apprentice, or business trainee who is in Canada to study or acquire business experience is exempt from Canadian income tax on remittances received from any source outside Canada for maintenance, education, or training. File taxes online The recipient must be or must have been a U. File taxes online S. File taxes online resident immediately before visiting Canada. File taxes online   An apprentice or business trainee can claim this exemption only for a period of one year from the date the individual first arrived in Canada for the purpose of training. File taxes online Pensions, Annuities, Social Security, and Alimony Under Article XVIII, pensions and annuities from Canadian sources paid to U. File taxes online S. File taxes online residents are subject to tax by Canada, but the tax is limited to 15% of the gross amount (if a periodic pension payment) or of the taxable amount (if an annuity). File taxes online Canadian pensions and annuities paid to U. File taxes online S. File taxes online residents may be taxed by the United States, but the amount of any pension included in income for U. File taxes online S. File taxes online tax purposes may not be more than the amount that would be included in income in Canada if the recipient were a Canadian resident. File taxes online Pensions. File taxes online   A pension includes any payment under a pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances, and payments under a sickness, accident, or disability plan. File taxes online It includes pensions paid by private employers and the government for services rendered. File taxes online   Pensions also include payments from individual retirement arrangements (IRAs) in the United States, registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) in Canada. File taxes online   Pensions do not include social security benefits. File taxes online Roth IRAs. File taxes online   A distribution from a Roth IRA is exempt from Canadian tax to the extent it would be exempt from U. File taxes online S. File taxes online tax if paid to a U. File taxes online S. File taxes online resident. File taxes online In addition, you may elect to defer any tax in Canada on income accrued within the Roth IRA but not distributed by the Roth IRA. File taxes online However, you cannot defer tax on any accruals due to contributions made after you become a Canadian resident. File taxes online Tax-deferred plans. File taxes online   Generally, income that accrues in a Canadian RRSP or RRIF is subject to U. File taxes online S. File taxes online tax, even if it is not distributed. File taxes online However, a U. File taxes online S. File taxes online citizen or resident can elect to defer U. File taxes online S. File taxes online tax on income from the plan until the income is distributed. File taxes online Form 8891 is used to make the election. File taxes online Annuities. File taxes online    An annuity is a stated sum payable periodically at stated times, during life, or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). File taxes online Annuities do not include: Non-periodic payments, or An annuity the cost of which was deductible for tax purposes. File taxes online Special rules. File taxes online    Special rules apply to pensions and annuities with respect to: Short-term assignments, Cross-border commuters, and Individuals who participate in a Canadian qualifying plan. File taxes online Generally, distributions in such cases are deemed to be earned in the country in which the plan is established, without regard to where the services were rendered. File taxes online Social security benefits. File taxes online   U. File taxes online S. File taxes online social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. File taxes online Alimony. File taxes online   Alimony and similar amounts (including child support payments) from Canadian sources paid to U. File taxes online S. File taxes online residents are exempt from Canadian tax. File taxes online For purposes of U. File taxes online S. File taxes online tax, these amounts are excluded from income to the same extent they would be excluded from income in Canada if the recipient was a Canadian resident. File taxes online Investment Income From Canadian Sources The treaty provides beneficial treatment for certain items of Canadian source income that result from an investment of capital. File taxes online Dividends (Article X). File taxes online   For Canadian source dividends received by U. File taxes online S. File taxes online residents, the Canadian income tax generally may not be more than 15%. File taxes online   A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary's voting stock. File taxes online However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation. File taxes online   These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment. File taxes online Interest (Article XI). File taxes online   Generally, Canadian source interest received by U. File taxes online S. File taxes online residents is exempt from Canadian income tax. File taxes online   The exemption does not apply if the owner of the interest carries on, or has carried on, a business in Canada through a permanent establishment and the debt on which the income is paid is effectively connected with that permanent establishment. File taxes online Gains from the sale of property (Article XIII). File taxes online   Generally, gains from the sale of personal property by a U. File taxes online S. File taxes online resident having no permanent establishment in Canada are exempt from Canadian income tax. File taxes online However, the exemption from Canadian tax does not apply to gains realized by U. File taxes online S. File taxes online residents on Canadian real property, and on personal property belonging to a permanent establishment in Canada. File taxes online   If the property subject to Canadian tax is a capital asset and was owned by the U. File taxes online S. File taxes online resident on September 26, 1980, not as part of the business property of a permanent establishment in Canada, generally the taxable gain is limited to the appreciation after 1984. File taxes online Royalties (Article XII). File taxes online   The following are exempt from Canadian tax: Copyright royalties and other like payments for the production or reproduction of any literary, dramatic, musical, or artistic work (other than payments for motion pictures and works on film, videotape, or other means of reproduction for use in connection with television, which may be taxed at 10%), Payments for the use of, or the right to use, computer software, Payments for the use of, or the right to use, any patent or any information concerning industrial, commercial, or scientific experience (but not within a rental or franchise agreement), and Payments for broadcasting as agreed to in an exchange of notes between the countries. File taxes online   This rate or exemption does not apply if the owner of the royalties carries on, or has carried on, a business in Canada through a permanent establishment and the right or property on which the income is paid is effectively connected with that permanent establishment. File taxes online   This exemption (or lower rate) does not apply to royalties to explore for or to exploit mineral deposits, timber, and other natural resources. File taxes online Other Income Generally, Canadian source income that is not specifically mentioned in the treaty, may be taxed by Canada. File taxes online Gambling losses. File taxes online   Canadian residents may deduct gambling losses in the U. File taxes online S. File taxes online against gambling winnings in the U. File taxes online S. File taxes online in the same manner as a U. File taxes online S. File taxes online resident. File taxes online Charitable Contributions United States income tax return. File taxes online   Under Article XXI, you may deduct contributions to certain qualified Canadian charitable organizations on your United States income tax return. File taxes online Besides being subject to the overall limits applicable to all your charitable contributions under U. File taxes online S. File taxes online tax law, your charitable contributions to Canadian organizations (other than contributions to a college or university at which you or a member of your family is or was enrolled) are subject to the U. File taxes online S. File taxes online percentage limits on charitable contributions, applied to your Canadian source income. File taxes online If your return does not include gross income from Canadian sources, charitable contributions to Canadian organizations are generally not deductible. File taxes online Example. File taxes online You are a U. File taxes online S. File taxes online citizen living in Canada. File taxes online You have both U. File taxes online S. File taxes online and Canadian source income. File taxes online During your tax year, you contribute to Canadian organizations that would qualify as charitable organizations under U. File taxes online S. File taxes online tax law if they were U. File taxes online S. File taxes online organizations. File taxes online To figure the maximum amount of the contribution to Canadian organizations that you can deduct on your U. File taxes online S. File taxes online income tax return, multiply your adjusted gross income from Canadian sources by the percentage limit that applies to contributions under U. File taxes online S. File taxes online income tax law. File taxes online Then include this amount on your return along with all your domestic charitable contributions, subject to the appropriate percentage limit required for contributions under U. File taxes online S. File taxes online income tax law. File taxes online The appropriate percentage limit for U. File taxes online S. File taxes online tax purposes is applied to your total adjusted gross income from all sources. File taxes online Qualified charities. File taxes online   These Canadian organizations must meet the qualifications that a U. File taxes online S. File taxes online charitable organization must meet under U. File taxes online S. File taxes online tax law. File taxes online Usually an organization will notify you if it qualifies. File taxes online For further information on charitable contributions and the U. File taxes online S. File taxes online percentage limits, see Publication 526, Charitable Contributions. File taxes online Canadian income tax return. File taxes online   Under certain conditions, contributions to qualified U. File taxes online S. File taxes online charitable organizations may also be claimed on your Canadian income tax return if you are a Canadian resident. File taxes online Income Tax Credits The treaty contains a credit provision (Article XXIV) for the elimination of double taxation. File taxes online In general, the United States and Canada both allow a credit against their income tax for the income tax paid to the other country on income from sources in that other country. File taxes online For detailed discussions of the U. File taxes online S. File taxes online income tax treatment of tax paid to foreign countries, see Publication 514, Foreign Tax Credit for Individuals. File taxes online See paragraphs (4) and (5) of Article XXIV for certain provisions that affect the computation of the credit allowed by the United States for Canadian income taxes paid by U. File taxes online S. File taxes online citizens residing in Canada. File taxes online Competent Authority Assistance Under Article XXVI, a U. File taxes online S. File taxes online citizen or resident may request assistance from the U. File taxes online S. File taxes online competent authority when the actions of Canada, the United States, or both, potentially result in double taxation or taxation contrary to the treaty. File taxes online The U. File taxes online S. File taxes online competent authority may then consult with the Canadian competent authority to determine if the double taxation or denial of treaty benefits in question can be avoided. File taxes online If the competent authorities are not able to reach agreement in a case, binding arbitration proceedings may apply. File taxes online It is important that your request for competent authority assistance be made as soon as you have been notified by either Canada or the United States of proposed adjustments that would result in denial of treaty benefits or in double taxation. File taxes online This is so that implementation of any agreement reached by the competent authorities is not barred by administrative, legal, or procedural barriers. File taxes online For information that you should include with your request for competent authority assistance, see Revenue Procedure 2006-54, 2006-49 IRB 1035, available at www. File taxes online irs. File taxes online gov/irb/2006-49_IRB/ar13. File taxes online html. File taxes online The request should be addressed to:  Deputy Commissioner (International) Large Business and International Division Attn: Office of Tax Treaty  Internal Revenue Service 1111 Constitution Ave. File taxes online , NW Routing: MA3-322A Washington, D. File taxes online C. File taxes online 20024 In addition to a timely request for assistance, you should take the following measures: File a timely protective claim for credit or refund of U. File taxes online S. File taxes online taxes on Form 1040X, Form 1120X, or amended Form 1041, whichever is appropriate. File taxes online This will, among other things, give you the benefit of a foreign tax credit in case you do not qualify for the treaty benefit in question. File taxes online For figuring this credit, attach either Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), or Form 1118, Foreign Tax Credit — Corporations, as appropriate. File taxes online Attach your protective claim to your request for competent authority assistance. File taxes online Take appropriate action under Canadian procedures to avoid the lapse or termination of your right of appeal under Canadian income tax law. File taxes online How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS and the Canada Revenue Agency in several ways. File taxes online Text of Treaty You can get the text of the U. File taxes online S. File taxes online —Canada income tax treaty from: Superintendent of Documents U. File taxes online S. File taxes online Government Printing Office P. File taxes online O. File taxes online Box 371954 Pittsburgh, PA 15250-7954 The treaty can also be found on the Internet at IRS. File taxes online gov. File taxes online U. File taxes online S. File taxes online Taxation During the filing season, the IRS conducts a taxpayer assistance program in Canada. File taxes online To find out if IRS personnel will be in your area, you should contact the consular office at the nearest U. File taxes online S. File taxes online Embassy or consulate. File taxes online Mail. File taxes online For answers to technical or account questions, you can write to:   Internal Revenue Service International Section Philadelphia, PA 19255-0525 Phone. File taxes online You can call the IRS for help at (267) 941-1000 (not a toll-free call). File taxes online Canadian Taxation You can get information on Canadian taxation from the Canada Revenue Agency. File taxes online The International Tax Services Office can be contacted on 1-800-267-5177 (from anywhere in Canada and the U. File taxes online S. File taxes online ) or on the Internet at www. File taxes online cra-arc. File taxes online gc. File taxes online ca. File taxes online Prev  Up  Next   Home   More Online Publications