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Free Federal Tax Return

Free federal tax return 12. Free federal tax return   How To Get More Information Table of Contents Internal Revenue ServiceLow Income Taxpayer Clinics (LITCs) Small Business Administration Other Federal Agencies This section describes the help the IRS and other federal agencies offer to taxpayers who operate their own businesses. Free federal tax return Internal Revenue Service Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Free federal tax return Free help with your return. Free federal tax return   You can get free help preparing your return nationwide from IRS-certified volunteers. Free federal tax return The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Free federal tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free federal tax return Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free federal tax return In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Free federal tax return To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Free federal tax return gov, download the IRS2Go app, or call 1-800-906-9887. Free federal tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free federal tax return To find the nearest AARP Tax-Aide site, visit AARP's website at www. Free federal tax return aarp. Free federal tax return org/money/taxaide or call 1-888-227-7669. Free federal tax return For more information on these programs, go to IRS. Free federal tax return gov and enter “VITA” in the search box. Free federal tax return Internet. Free federal tax return    IRS. Free federal tax return gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Free federal tax return Download the free IRS2Go app from the iTunes app store or from Google Play. Free federal tax return Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Free federal tax return Check the status of your 2013 refund with the Where's My Refund? application on IRS. Free federal tax return gov or download the IRS2Go app and select the Refund Status option. Free federal tax return The IRS issues more than 9 out of 10 refunds in less than 21 days. Free federal tax return Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Free federal tax return You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free federal tax return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free federal tax return Use the Interactive Tax Assistant (ITA) to research your tax questions. Free federal tax return No need to wait on the phone or stand in line. Free federal tax return The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Free federal tax return When you reach the response screen, you can print the entire interview and the final response for your records. Free federal tax return New subject areas are added on a regular basis. Free federal tax return  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Free federal tax return gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Free federal tax return You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Free federal tax return The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Free federal tax return When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Free federal tax return Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Free federal tax return You can also ask the IRS to mail a return or an account transcript to you. Free federal tax return Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Free federal tax return gov or by calling 1-800-908-9946. Free federal tax return Tax return and tax account transcripts are generally available for the current year and the past three years. Free federal tax return Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Free federal tax return Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Free federal tax return If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Free federal tax return Check the status of your amended return using Where's My Amended Return? Go to IRS. Free federal tax return gov and enter Where's My Amended Return? in the search box. Free federal tax return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free federal tax return It can take up to 3 weeks from the date you mailed it to show up in our system. Free federal tax return Make a payment using one of several safe and convenient electronic payment options available on IRS. Free federal tax return gov. Free federal tax return Select the Payment tab on the front page of IRS. Free federal tax return gov for more information. Free federal tax return Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Free federal tax return Figure your income tax withholding with the IRS Withholding Calculator on IRS. Free federal tax return gov. Free federal tax return Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Free federal tax return Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Free federal tax return gov. Free federal tax return Request an Electronic Filing PIN by going to IRS. Free federal tax return gov and entering Electronic Filing PIN in the search box. Free federal tax return Download forms, instructions and publications, including accessible versions for people with disabilities. Free federal tax return Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Free federal tax return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Free federal tax return An employee can answer questions about your tax account or help you set up a payment plan. Free federal tax return Before you visit, check the Office Locator on IRS. Free federal tax return gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Free federal tax return If you have a special need, such as a disability, you can request an appointment. Free federal tax return Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Free federal tax return Apply for an Employer Identification Number (EIN). Free federal tax return Go to IRS. Free federal tax return gov and enter Apply for an EIN in the search box. Free federal tax return Read the Internal Revenue Code, regulations, or other official guidance. Free federal tax return Read Internal Revenue Bulletins. Free federal tax return Sign up to receive local and national tax news and more by email. Free federal tax return Just click on “subscriptions” above the search box on IRS. Free federal tax return gov and choose from a variety of options. Free federal tax return    Phone. Free federal tax return You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Free federal tax return Download the free IRS2Go app from the iTunes app store or from Google Play. Free federal tax return Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Free federal tax return gov, or download the IRS2Go app. Free federal tax return Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Free federal tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free federal tax return Most VITA and TCE sites offer free electronic filing. Free federal tax return Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Free federal tax return Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Free federal tax return Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Free federal tax return If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Free federal tax return The IRS issues more than 9 out of 10 refunds in less than 21 days. Free federal tax return Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free federal tax return Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Free federal tax return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free federal tax return Note, the above information is for our automated hotline. Free federal tax return Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Free federal tax return Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Free federal tax return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free federal tax return It can take up to 3 weeks from the date you mailed it to show up in our system. Free federal tax return Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Free federal tax return You should receive your order within 10 business days. Free federal tax return Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Free federal tax return If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Free federal tax return Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Free federal tax return The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Free federal tax return These individuals can also contact the IRS through relay services such as the Federal Relay Service. Free federal tax return    Walk-in. Free federal tax return You can find a selection of forms, publications and services — in-person. Free federal tax return Products. Free federal tax return You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free federal tax return Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Free federal tax return Services. Free federal tax return You can walk in to your local TAC for face-to-face tax help. Free federal tax return An employee can answer questions about your tax account or help you set up a payment plan. Free federal tax return Before visiting, use the Office Locator tool on IRS. Free federal tax return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Free federal tax return    Mail. Free federal tax return You can send your order for forms, instructions, and publications to the address below. Free federal tax return You should receive a response within 10 business days after your request is received. Free federal tax return  Internal Revenue Service 1201 N. Free federal tax return Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Free federal tax return The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free federal tax return Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Free federal tax return   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Free federal tax return We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Free federal tax return You face (or your business is facing) an immediate threat of adverse action. Free federal tax return You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Free federal tax return   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Free federal tax return Here's why we can help: TAS is an independent organization within the IRS. Free federal tax return Our advocates know how to work with the IRS. Free federal tax return Our services are free and tailored to meet your needs. Free federal tax return We have offices in every state, the District of Columbia, and Puerto Rico. Free federal tax return   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Free federal tax return   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Free federal tax return If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Free federal tax return Low Income Taxpayer Clinics (LITCs) Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Free federal tax return Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Free federal tax return Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Free federal tax return Small Business Administration The Small Business Administration (SBA) offers training and educational programs, counseling services, financial programs, and contract assistance for small business owners. Free federal tax return The SBA also has publications and videos on a variety of business topics. Free federal tax return The following briefly describes assistance provided by the SBA. Free federal tax return Small Business Development Centers (SBDCs). Free federal tax return   SBDCs provide counseling, training, and technical services to current and prospective small business owners who cannot afford the services of a private consultant. Free federal tax return Help is available when beginning, improving, or expanding a small business. Free federal tax return Business Information Centers (BICs). Free federal tax return   BICs offer a small business reference library, management video tapes, and computer technology to help plan a business. Free federal tax return BICs also offer one-on-one assistance. Free federal tax return Individuals who are in business or are interested in starting a business can use BICs as often as they wish at no charge. Free federal tax return Service Corps of Retired Executives (SCORE). Free federal tax return   SCORE provides small business counseling and training to current and prospective small business owners. Free federal tax return SCORE is made up of current and former business people who offer their expertise and knowledge to help people start, manage, and expand a small business. Free federal tax return SCORE also offers a variety of small business workshops. Free federal tax return Internet. Free federal tax return    You can visit the SBA website at www. Free federal tax return sba. Free federal tax return gov. Free federal tax return While visiting the SBA website, you can find a variety of information of interest to small business owners. Free federal tax return Phone. Free federal tax return    Call the SBA Answer Desk at 1-800-U-ASK-SBA (1-800-827-5722) for general information about programs available to assist small business owners. Free federal tax return Walk-in. Free federal tax return   You can walk in to a Small Business Development Center or Business Information Center to request assistance with your small business. Free federal tax return To find the location nearest you, visit the SBA website or call the SBA Answer Desk. Free federal tax return Other Federal Agencies Other federal agencies also publish publications and pamphlets to assist small businesses. Free federal tax return Most of these are available from the Superintendent of Documents at the Government Printing Office. Free federal tax return You can get information and order these publications and pamphlets in several ways. Free federal tax return Internet. Free federal tax return   You can visit the GPO website at  www. Free federal tax return access. Free federal tax return gpo. Free federal tax return gov. Free federal tax return Mail. Free federal tax return   Write to the GPO at the following address. Free federal tax return  Superintendent of Documents U. Free federal tax return S. Free federal tax return Government Printing Office P. Free federal tax return O. Free federal tax return Box 979050 St. Free federal tax return Louis, MO 63917-9000 Phone. Free federal tax return   Call the GPO toll-free at 1-866-512-1800 or at 202-512-1800 from the Washington, DC, area. Free federal tax return Prev  Up  Next   Home   More Online Publications
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The Free Federal Tax Return

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