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H And R Block Active Duty

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H And R Block Active Duty

H and r block active duty Index Symbols 10% additional tax, Early Distributions Tax, Age 59½ Rule, Additional 10% tax 2-year rule SIMPLE IRAs, Two-year rule. H and r block active duty 20% withholding, Other withholding rules. H and r block active duty 5-year rule, 5-year rule. H and r block active duty , Death before required beginning date. H and r block active duty 6% excise tax on excess contributions to Roth IRAs, What if You Contribute Too Much? 60-day period for rollovers, Time Limit for Making a Rollover Contribution A Account balance, IRA account balance. H and r block active duty Additional taxes, What Acts Result in Penalties or Additional Taxes?, Additional 10% tax (see also Penalties) Reporting, Reporting Additional Taxes Adjusted gross income (AGI), Modified adjusted gross income (AGI). H and r block active duty , Modified AGI. H and r block active duty (see also Modified adjusted gross income (AGI)) Retirement savings contributions credit, Adjusted gross income. H and r block active duty Age 50 Contributions, General Limit Age 59 1/2 rule, Age 59½ Rule Age 70 1/2 rule, Age 70½ rule. H and r block active duty Required minimum distributions, Distributions after the required beginning date. H and r block active duty Age limit Traditional IRA, When Can Contributions Be Made? Airline payments, Rollover of Airline Payments Alimony, Alimony and separate maintenance. H and r block active duty Annuity contracts, Annuity or endowment contracts. H and r block active duty Borrowing on, Borrowing on an annuity contract. H and r block active duty Distribution from insurance company, Annuity distributions from an insurance company. H and r block active duty Distribution from IRA account, Distribution of an annuity contract from your IRA account. H and r block active duty Early distributions, Annuity. H and r block active duty Assistance (see Tax help) B Basis Inherited IRAs, IRA with basis. H and r block active duty Roth IRAs, Basis of distributed property. H and r block active duty Traditional IRAs, Cost basis. H and r block active duty Beginning date, required, Distributions after the required beginning date. H and r block active duty Beneficiaries, IRA Beneficiaries, Death before required beginning date. H and r block active duty Change of, Change of beneficiary. H and r block active duty Death of beneficiary, Death of a beneficiary. H and r block active duty Early distributions to, Beneficiary. H and r block active duty Individual as, Beneficiary an individual. H and r block active duty More than one, More than one beneficiary. H and r block active duty , Multiple individual beneficiaries. H and r block active duty Not an individual, Beneficiary not an individual. H and r block active duty Roth IRAs, Distributions to beneficiaries. H and r block active duty Sole beneficiary spouse more than 10 years younger, Sole beneficiary spouse who is more than 10 years younger. H and r block active duty Bond purchase plans Rollovers from, Rollover from bond purchase plan. H and r block active duty Bonds, retirement (see Individual retirement bonds) Broker's commissions, Brokers' commissions. H and r block active duty , Brokers' commissions. H and r block active duty C Change in marital status, Change in marital status. H and r block active duty Change of beneficiary, Change of beneficiary. H and r block active duty Charitable distributions, qualified, Qualified charitable distributions. H and r block active duty Collectibles, Investment in Collectibles, Collectibles. H and r block active duty Community property, Community property laws. H and r block active duty Compensation Alimony, Alimony and separate maintenance. H and r block active duty Defined, What Is Compensation? Nontaxable combat pay, Nontaxable combat pay. H and r block active duty Self-employment, Self-employment loss. H and r block active duty Wages, salaries, etc. H and r block active duty , Wages, salaries, etc. H and r block active duty Conduit IRAs, IRA as a holding account (conduit IRA) for rollovers to other eligible plans. H and r block active duty Contribution limits More than one IRA, More than one IRA. H and r block active duty Contributions Designating the year, Designating year for which contribution is made. H and r block active duty Distributions in same year as, Both contributions for 2013 and distributions in 2013. H and r block active duty Excess (see Excess contributions) Less than maximum, Less Than Maximum Contributions Matching (SIMPLE), Matching contributions. H and r block active duty Nondeductible (see Nondeductible contributions) Not required, Contributions not required. H and r block active duty Qualified reservist repayments, Qualified reservist repayments. H and r block active duty Recharacterizing (see Recharacterization) Retirement savings contributions credit, Eligible contributions. H and r block active duty Roth IRAs, Can You Contribute to a Roth IRA?, Applying excess contributions. H and r block active duty SIMPLE plans, How Are Contributions Made?, How Much Can Be Contributed on Your Behalf? Traditional IRAs, How Much Can Be Contributed?, More Than Maximum Contributions When to contribute, When Can Contributions Be Made? Withdrawing before due date of return, Contributions Returned Before Due Date of Return Conversions From SIMPLE IRAs, Converting from a SIMPLE IRA. H and r block active duty To Roth IRAs, Conversions Credits Retirement savings contributions credit, Retirement Savings Contributions Credit (Saver's Credit), How to figure and report the credit. H and r block active duty D Death of beneficiary, Death of a beneficiary. H and r block active duty Deductions Figuring reduced IRA deduction, How To Figure Your Reduced IRA Deduction Phaseout, Deduction Phaseout Traditional IRAs, How Much Can You Deduct?, Examples — Worksheet for Reduced IRA Deduction for 2013 Deemed IRAs, Reminders, Reminders Defined benefit plans, Defined benefit plan. H and r block active duty Defined contribution plans, Defined contribution plan. H and r block active duty Disabilities, persons with Early distributions to, Disabled. H and r block active duty Distributions After required beginning date, Distributions after the required beginning date. H and r block active duty Age 59 1/2 rule, Age 59½ Rule Beneficiaries (see Beneficiaries) Contributions in same year as, Both contributions for 2013 and distributions in 2013. H and r block active duty Delivered outside U. H and r block active duty S. H and r block active duty , IRA distributions delivered outside the United States. H and r block active duty Figuring nontaxable and taxable amounts, Figuring the Nontaxable and Taxable Amounts From individual retirement accounts, Distributions from individual retirement account. H and r block active duty From individual retirement annuities, Distributions from individual retirement annuities. H and r block active duty Fully or partly taxable, Distributions Fully or Partly Taxable Income from, Income from IRA distributions. H and r block active duty Inherited IRAs (see Inherited IRAs) Insufficient, Excess Accumulations (Insufficient Distributions) Qualified charitable, Qualified charitable distributions. H and r block active duty Qualified HSA funding, One-time qualified HSA funding distribution. H and r block active duty Qualified reservist, Qualified reservist distributions. H and r block active duty Roth IRAs, Are Distributions Taxable?, How Do You Figure the Taxable Part? Ordering rules for, Ordering Rules for Distributions Recapture amount, Figuring your recapture amount. H and r block active duty SIMPLE IRAs, Are Distributions Taxable? Taxable status of, Are Distributions Taxable? Divorce Rollovers by former spouse, Distributions under divorce or similar proceedings (alternate payees). H and r block active duty Transfers incident to, Transfers Incident To Divorce E Early distributions, What Acts Result in Penalties or Additional Taxes?, Early Distributions, Nondeductible contributions. H and r block active duty (see also Penalties) Age 59 1/2 rule, Age 59½ Rule Defined, Early distributions defined. H and r block active duty Disability exception, Disabled. H and r block active duty First-time homebuyers, exception, First home. H and r block active duty Higher education expenses, exception, Higher education expenses. H and r block active duty Medical insurance, exception, Medical insurance. H and r block active duty Roth IRAs, Additional Tax on Early Distributions SIMPLE IRAs, Additional Tax on Early Distributions Tax, Early Distributions Tax Unreimbursed medical expenses, exception, Unreimbursed medical expenses. H and r block active duty Education expenses, Higher education expenses. H and r block active duty Employer and employee association trust accounts, Employer and Employee Association Trust Accounts Employer plans Covered by, Covered by an employer retirement plan. H and r block active duty Year(s) covered, For Which Year(s) Are You Covered? Employer retirement plans, Are You Covered by an Employer Plan? Defined benefit plans, Defined benefit plan. H and r block active duty Defined contribution plans, Defined contribution plan. H and r block active duty Effect of modified AGI on deduction (Table 1-2), Table 1-2. H and r block active duty Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work Limit if covered by, Limit if Covered by Employer Plan Prohibited transactions, Trust account set up by an employer or an employee association. H and r block active duty Endowment contracts (see Annuity contracts) Estate tax, Estate tax. H and r block active duty Deduction for inherited IRAs, Federal estate tax deduction. H and r block active duty Excess accumulations, Excess Accumulations (Insufficient Distributions), Make up of shortfall in distribution. H and r block active duty Roth IRAs, Distributions After Owner's Death Excess contributions, Excess Contributions Closed tax year, Closed tax year. H and r block active duty Deducted in earlier year, Excess contribution deducted in an earlier year. H and r block active duty Deducting in a later year, Deducting an Excess Contribution in a Later Year Due to incorrect rollover information, Excess due to incorrect rollover information. H and r block active duty Recharacterizing, Recharacterizing excess contributions. H and r block active duty Roth IRAs, What if You Contribute Too Much? Tax, Excess Contributions Tax Withdrawn after due date of return, Excess Contributions Withdrawn After Due Date of Return Withdrawn by due date of return, Excess Contributions Withdrawn by Due Date of Return Exempt transactions, Exempt Transactions Exxon Valdez settlement income, Rollover of Exxon Valdez Settlement Income , Rollover of Exxon Valdez Settlement Income F Failed financial institutions, Failed financial institutions. H and r block active duty Federal judges, Federal judges. H and r block active duty Fiduciaries Prohibited transactions, Fiduciary. H and r block active duty Filing before IRA contribution is made, Filing before a contribution is made. H and r block active duty Filing status, Filing Status Deduction phaseout and, Filing status. H and r block active duty Firefighters, volunteer, Volunteer firefighters. H and r block active duty First-time homebuyers, First home. H and r block active duty Five-year rule (see 5-year rule) Form 1040 Modified AGI calculation from, Form 1040. H and r block active duty , Form 1040NR. H and r block active duty Form 1040A Modified AGI calculation from, Form 1040A. H and r block active duty Form 1099-R, Reporting and Withholding Requirements for Taxable Amounts Distribution code 1 used on, Form 5329 not required. H and r block active duty Letter codes used on, Letter codes. H and r block active duty Number codes used on, Number codes. H and r block active duty Withdrawal of excess contribution, Form 1099-R. H and r block active duty Form 5329, Additional 10% tax, Reporting the tax. H and r block active duty , Reporting Additional Taxes Recapture tax, Recapture tax for changes in distribution method under equal payment exception. H and r block active duty Form 8606, Form 8606. H and r block active duty , Form 8606. H and r block active duty , Reporting your nontaxable distribution on Form 8606. H and r block active duty , Figuring the Nontaxable and Taxable Amounts Failure to file, penalty, Penalty for failure to file Form 8606. H and r block active duty Form 8880, How to figure and report the credit. H and r block active duty Form W-2 Employer retirement plans, Are You Covered by an Employer Plan? Free tax services, Free help with your tax return. H and r block active duty Frozen deposits, Frozen deposit. H and r block active duty Full-time student Retirement savings contributions credit, Full-time student. H and r block active duty H Help (see Tax help) Higher education expenses, Higher education expenses. H and r block active duty How to Set up an IRA, How Can a Traditional IRA Be Opened? Treat withdrawn contributions, How to treat withdrawn contributions. H and r block active duty HSA funding distributions, qualified, One-time qualified HSA funding distribution. H and r block active duty I Individual retirement accounts, Individual Retirement Account Distributions from, Distributions from individual retirement account. H and r block active duty Individual retirement annuities, Individual Retirement Annuity Distributions from, Distributions from individual retirement annuities. H and r block active duty Individual retirement arrangements (IRAs) How to set up, How Can a Traditional IRA Be Opened? When to set up, When Can a Traditional IRA Be Opened? Individual retirement bonds, Individual Retirement Bonds Cashing in, Cashing in retirement bonds. H and r block active duty Inherited IRAs, What if You Inherit an IRA?, More information. H and r block active duty Rollovers, Inherited IRAs. H and r block active duty Insufficient distributions, Excess Accumulations (Insufficient Distributions) Interest on IRA, Reminders Investment in collectibles Collectibles defined, Collectibles. H and r block active duty Exception, Exception. H and r block active duty K Kay Bailey Hutchison Spousal IRAs Contribution limits, Kay Bailey Hutchison Spousal IRA Limit Deductions, Kay Bailey Hutchison Spousal IRA. H and r block active duty Roth IRA contribution limits, Can you contribute to a Roth IRA for your spouse? Keogh plans Rollovers from, Keogh plans and rollovers. H and r block active duty L Last-in first-out rule, Last-in first-out rule. H and r block active duty Life expectancy, Life expectancy. H and r block active duty Life insurance, Life insurance contract. H and r block active duty Losses Roth IRAs, Recognizing Losses on Investments Traditional IRAs, Recognizing Losses on Traditional IRA Investments M Marital status, change in, Change in marital status. H and r block active duty Matching contributions (SIMPLE), Matching contributions. H and r block active duty Medical expenses, unreimbursed, Unreimbursed medical expenses. H and r block active duty Medical insurance, Medical insurance. H and r block active duty Military death gratuities, Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments Minimum distribution (see Required minimum distribution) Missing children, photographs of, Reminders Modified adjusted gross income (AGI) Employer retirement plan coverage and deduction (Table 1-2), Table 1-2. H and r block active duty Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work Figuring (Worksheet 1-1), Worksheet 1-1. H and r block active duty Figuring Your Modified AGI No employer retirement plan coverage and deduction (Table 1-3), Table 1-3. H and r block active duty Effect of Modified AGI1 on Deduction if You Are NOT Covered by a Retirement Plan at Work Roth IRAs, Modified AGI. H and r block active duty Effect on contribution amount (Table 2-1), Table 2-1. H and r block active duty Effect of Modified AGI on Roth IRA Contribution More than one beneficiary, More than one beneficiary. H and r block active duty More than one IRA, More than one IRA. H and r block active duty Recharacterization, More than one IRA. H and r block active duty Required minimum distribution, More than one IRA. H and r block active duty N Nondeductible contributions, Nondeductible Contributions, Nondeductible contributions. H and r block active duty Failure to report, Failure to report nondeductible contributions. H and r block active duty Overstatement penalty, Penalty for overstatement. H and r block active duty Notice Qualified employer plan to provide prior to rollover distribution, Written explanation to recipients. H and r block active duty Rollovers, Rollover notice. H and r block active duty P Partial rollovers, Partial rollovers. H and r block active duty , Partial rollover. H and r block active duty Penalties, What Acts Result in Penalties or Additional Taxes?, Form 5329 not required. H and r block active duty Early distributions, Early Distributions, Nondeductible contributions. H and r block active duty Excess accumulations, Excess Accumulations (Insufficient Distributions), Make up of shortfall in distribution. H and r block active duty Excess contributions, Excess Contributions Roth IRAs, What if You Contribute Too Much? Exempt transactions, Exempt Transactions, Services received at reduced or no cost. H and r block active duty Failure to file Form 8606, Penalty for failure to file Form 8606. H and r block active duty Overstatement of nondeductible contributions, Penalty for overstatement. H and r block active duty Prohibited transactions, Prohibited Transactions, Services received at reduced or no cost. H and r block active duty Reporting, Reporting Additional Taxes SIMPLE IRAs, Additional Tax on Early Distributions Phaseout of deduction, Deduction Phaseout Pledging account as security, Pledging an account as security. H and r block active duty Prohibited transactions, Prohibited Transactions, Services received at reduced or no cost. H and r block active duty Taxes on, Taxes on prohibited transactions. H and r block active duty Publications (see Tax help) Q Qualified charitable distributions, Qualified charitable distributions. H and r block active duty Qualified domestic relations orders (QDROs), Qualified domestic relations order. H and r block active duty Qualified settlement income, Rollover of Exxon Valdez Settlement Income , Rollover of Exxon Valdez Settlement Income R Recapture tax Changes in distribution method, Recapture tax for changes in distribution method under equal payment exception. H and r block active duty Receivership distributions, Receivership distributions. H and r block active duty Recharacterization, Recharacterizations, More than one IRA. H and r block active duty Determining amount of net income due to contribution and total amount to be recharacterized (Worksheet 1-3), Worksheet 1-3. H and r block active duty Determining the Amount of Net Income Due To an IRA Contribution and Total Amount To Be Recharacterized Reporting, Reporting a Recharacterization SIMPLE employer contributions, Recharacterizing employer contributions. H and r block active duty Timing of, Timing. H and r block active duty Reconversion, Reconversions Recordkeeping requirements Traditional IRAs, Nondeductible Contributions Reporting Additional taxes, Reporting Additional Taxes Deductible contributions, Reporting Deductible Contributions Nontaxable distribution on Form 8606, Reporting your nontaxable distribution on Form 8606. H and r block active duty Recharacterization, Reporting a Recharacterization Rollovers From employer plans, Reporting rollovers from employer plans. H and r block active duty From IRAs, Reporting rollovers from IRAs. H and r block active duty Taxable amounts, Reporting and Withholding Requirements for Taxable Amounts Taxable distributions, Reporting taxable distributions on your return. H and r block active duty Required beginning date, Distributions after the required beginning date. H and r block active duty Required minimum distribution, Reminders, When Must You Withdraw Assets? (Required Minimum Distributions), Annuity distributions from an insurance company. H and r block active duty Distribution period, Distribution period. H and r block active duty During lifetime, Distributions during your lifetime. H and r block active duty Figuring, Figuring the Owner's Required Minimum Distribution For beneficiary, Figuring the Beneficiary's Required Minimum Distribution Table to use, Which Table Do You Use To Determine Your Required Minimum Distribution? In year of owner's death, Distributions in the year of the owner's death. H and r block active duty Installments allowed, Installments allowed. H and r block active duty More than one IRA, More than one IRA. H and r block active duty Sole beneficiary spouse who is more than 10 years younger, Sole beneficiary spouse who is more than 10 years younger. H and r block active duty Reservists, Reservists. H and r block active duty Qualified reservist distribution, Qualified reservist distributions. H and r block active duty Qualified reservist repayments, Qualified reservist repayments. H and r block active duty Retirement bonds (see Individual retirement bonds) Retirement savings contributions credit, Retirement Savings Contributions Credit (Saver's Credit), How to figure and report the credit. H and r block active duty Rollovers, Rollovers, Reporting rollovers from employer plans. H and r block active duty Airline payments, Rollover of Airline Payments Amount, Amount. H and r block active duty Choosing an option (Table 1-5), Table 1-5. H and r block active duty Comparison of Payment to You Versus Direct Rollover Completed after 60-day period, Rollovers completed after the 60-day period. H and r block active duty Conduit IRAs, IRA as a holding account (conduit IRA) for rollovers to other eligible plans. H and r block active duty Direct rollover option, Direct rollover option. H and r block active duty Extension of period, Extension of rollover period. H and r block active duty From bond purchase plan, Rollover from bond purchase plan. H and r block active duty From employer's plan into a Roth IRA, Rollover From Employer's Plan Into a Roth IRA From employer's plan into an IRA, Rollover From Employer's Plan Into an IRA From Keogh plans, Keogh plans and rollovers. H and r block active duty From one IRA into another, Rollover From One IRA Into Another From Roth IRAs, Rollover From a Roth IRA From traditional IRA, Kinds of rollovers from a traditional IRA. H and r block active duty Inherited IRAs, Inherited IRAs. H and r block active duty Nonspouse beneficiary, Rollover by nonspouse beneficiary. H and r block active duty Notice, Rollover notice. H and r block active duty Partial, Partial rollovers. H and r block active duty , Partial rollover. H and r block active duty SIMPLE IRAs, Rollovers and Transfers Exception Tax treatment of rollover from traditional IRA to eligible retirement plan other than an IRA, Tax treatment of a rollover from a traditional IRA to an eligible retirement plan other than an IRA. H and r block active duty Time limit, Time Limit for Making a Rollover Contribution To Roth IRAs, Conversion methods. H and r block active duty To traditional IRA, Kinds of rollovers to a traditional IRA. H and r block active duty Waiting period between, Waiting period between rollovers. H and r block active duty , No waiting period between rollovers. H and r block active duty Withholding (see Withholding) Roth IRAs, Roth IRAs, Distributions After Owner's Death Age limit, Is there an age limit for contributions? Contribution limit reduced, Contribution limit reduced. H and r block active duty Contributions, Can You Contribute to a Roth IRA?, Applying excess contributions. H and r block active duty Timing of, When Can You Make Contributions? To traditional IRAs and to Roth IRAs, Roth IRAs and traditional IRAs. H and r block active duty Conversion, Converting From Any Traditional IRA Into a Roth IRA, Conversion by rollover from traditional to Roth IRA. H and r block active duty , Recharacterizing to a SEP IRA or SIMPLE IRA. H and r block active duty , Conversions Defined, What Is a Roth IRA? Distributions, Are Distributions Taxable?, How Do You Figure the Taxable Part? After death of owner, Distributions After Owner's Death Insufficient, Distributions After Owner's Death Ordering rules for, Ordering Rules for Distributions Early distributions, Additional Tax on Early Distributions Excess accumulations, Distributions After Owner's Death Excess contributions, What if You Contribute Too Much? Figuring taxable part, How Do You Figure the Taxable Part? Losses, Recognizing Losses on Investments Modified AGI Effect on contribution amount (Table 2-1), Table 2-1. H and r block active duty Effect of Modified AGI on Roth IRA Contribution Figuring (Worksheet 2-1), Worksheet 2-1. H and r block active duty Modified Adjusted Gross Income for Roth IRA Purposes Rollovers from, Rollover From a Roth IRA Setting up, When Can a Roth IRA Be Opened? Spouse, Can you contribute to a Roth IRA for your spouse? Traditional IRAs converted into, Converting From Any Traditional IRA Into a Roth IRA Withdrawing or using assets, Must You Withdraw or Use Assets? S Salary reduction arrangement, What Is a SIMPLE Plan? Savings Incentive Match Plans for Employees (see SIMPLE IRAs) Section 501(c)(18) plan, General Limit, Kay Bailey Hutchison Spousal IRA Limit Self-employed persons Deductible contributions, Self-employed. H and r block active duty Income of, Self-employment income. H and r block active duty SIMPLE plans, Self-employed individual. H and r block active duty SEP IRAs Recharacterizing to, Recharacterizing to a SEP IRA or SIMPLE IRA. H and r block active duty Separated taxpayers Filing status of, Lived apart from spouse. H and r block active duty Servicemembers group life insurance, Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments Services received at reduced or no cost, Services received at reduced or no cost. H and r block active duty SIMPLE IRAs, Savings Incentive Match Plans for Employees (SIMPLE), Two-year rule. H and r block active duty Contributions, How Are Contributions Made?, How Much Can Be Contributed on Your Behalf? Conversion from, Converting from a SIMPLE IRA. H and r block active duty Distributions, Are Distributions Taxable? Early distributions, , Additional Tax on Early Distributions Eligible employees, Eligible Employees Penalties, Additional Tax on Early Distributions Recharacterizing to, Recharacterizing to a SEP IRA or SIMPLE IRA. H and r block active duty Rollovers, Rollovers and Transfers Exception Salary reduction contribution limits, Salary reduction contributions limit. H and r block active duty Self-employed persons, Self-employed individual. H and r block active duty SIMPLE plan, defined, What Is a SIMPLE Plan? Traditional IRA, mistakenly moved to, Traditional IRA mistakenly moved to SIMPLE IRA. H and r block active duty , Traditional IRA mistakenly moved to SIMPLE IRA. H and r block active duty Two-year rule, Two-year rule. H and r block active duty Withdrawing or using assets, When Can You Withdraw or Use Assets? Simplified employee pensions (SEPs), Simplified Employee Pension (SEP) Social Security recipients, Social Security Recipients Spousal IRAs (see Kay Bailey Hutchison Spousal IRAs or Inherited IRAs) Students Education expenses, Higher education expenses. H and r block active duty Retirement savings contributions credit, Full-time student. H and r block active duty Surviving spouse, Surviving spouse. H and r block active duty , Surviving spouse. H and r block active duty Rollovers by, Distributions received by a surviving spouse. H and r block active duty T Tables Modified AGI Employer retirement plan coverage and deduction (Table 1-2), Table 1-2. H and r block active duty Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work No employer retirement plan coverage and deduction (Table 1-3), Table 1-3. H and r block active duty Effect of Modified AGI1 on Deduction if You Are NOT Covered by a Retirement Plan at Work Roth IRAs, effect on contribution (Table 2-1), Table 2-1. H and r block active duty Effect of Modified AGI on Roth IRA Contribution Rollover vs. H and r block active duty direct payment to taxpayer (Table 1-5), Table 1-5. H and r block active duty Comparison of Payment to You Versus Direct Rollover Using this publication (Table I-1), Table I-1. H and r block active duty Using This Publication Tax advantages of IRAs, What are some tax advantages of an IRA? Tax credits Retirement savings contributions credit, Retirement Savings Contributions Credit (Saver's Credit), How to figure and report the credit. H and r block active duty Tax help, How To Get Tax Help Tax year, Tax year. H and r block active duty Tax-sheltered annuities Rollovers from, Distribution from a tax-sheltered annuity. H and r block active duty Traditional IRAs, Traditional IRAs, Form 5329 not required. H and r block active duty Age 59 1/2 rule, Age 59½ Rule Contribution limits, How Much Can Be Contributed?, More Than Maximum Contributions Contributions, How Much Can Be Contributed?, More Than Maximum Contributions Due date, Contributions must be made by due date. H and r block active duty To Roth IRAs and to traditional IRAs, Roth IRAs and traditional IRAs. H and r block active duty Converting into Roth IRA, Converting From Any Traditional IRA Into a Roth IRA Cost basis, Cost basis. H and r block active duty Deductions, How Much Can You Deduct?, Examples — Worksheet for Reduced IRA Deduction for 2013 Defined, Introduction Disclosures, Required Disclosures Excess contributions, Excess Contributions Inherited IRAs, What if You Inherit an IRA?, More information. H and r block active duty Loss of IRA status, Loss of IRA status. H and r block active duty Losses, Recognizing Losses on Traditional IRA Investments Mistakenly moved to SIMPLE IRA, Traditional IRA mistakenly moved to SIMPLE IRA. H and r block active duty , Traditional IRA mistakenly moved to SIMPLE IRA. H and r block active duty Recordkeeping, Nondeductible Contributions Reduced IRA deduction for 2013, Examples — Worksheet for Reduced IRA Deduction for 2013 Rollovers (see Rollovers) Setting up, Who Can Open a Traditional IRA?, Required Disclosures Social Security recipients, Social Security Recipients Transfers, Can You Move Retirement Plan Assets? Types of, Kinds of traditional IRAs. H and r block active duty Withdrawing or using assets, When Can You Withdraw or Use Assets?, Excess Contributions Tax Transfers, Can You Move Retirement Plan Assets? Divorce, Transfers Incident To Divorce To Roth IRAs, Transfers to Roth IRAs. H and r block active duty , Can You Move Amounts Into a Roth IRA? Trustee to trustee, Trustee-to-Trustee Transfer, Conversion methods. H and r block active duty Trustee-to-trustee transfers, Trustee-to-Trustee Transfer To Roth IRAs, Conversion methods. H and r block active duty Trustees' fees, Trustees' fees. H and r block active duty , Trustees' fees. H and r block active duty Trusts As beneficiary, Trust as beneficiary. H and r block active duty TTY/TDD information, How To Get Tax Help Two-year rule SIMPLE IRAs, Two-year rule. H and r block active duty U Unreimbursed medical expenses, Unreimbursed medical expenses. H and r block active duty V Volunteer firefighters, Volunteer firefighters. H and r block active duty W Withdrawing or using assets Contribution withdrawal, before due date of return, Contributions Returned Before Due Date of Return Roth IRAs, Must You Withdraw or Use Assets? SIMPLE IRAs, When Can You Withdraw or Use Assets? Traditional IRAs, When Can You Withdraw or Use Assets?, Excess Contributions Tax Withholding, Reporting and Withholding Requirements for Taxable Amounts, Withholding. H and r block active duty Direct rollover option, Withholding. H and r block active duty Eligible rollover distribution paid to taxpayer, Withholding requirement. H and r block active duty Worksheets Figuring amount of net income due to IRA contribution and total amount to be recharacterized (Worksheet 1-3), Worksheet 1-3. H and r block active duty Determining the Amount of Net Income Due To an IRA Contribution and Total Amount To Be Recharacterized Figuring modified AGI (Worksheet 1-1), Worksheet 1-1. H and r block active duty Figuring Your Modified AGI Roth IRAs Figuring modified AGI (Worksheet 2-1), Worksheet 2-1. H and r block active duty Modified Adjusted Gross Income for Roth IRA Purposes Prev  Up     Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

South Dakota Office of the Attorney General

Website: South Dakota Office of the Attorney General

Address: South Dakota Office of the Attorney General
Consumer Protection
1302 E. Hwy. 14, Suite 3
Pierre, SD 57501-8503

Phone Number: 605-773-4400

Toll-free: 1-800-300-1986 (SD)

TTY: 605-773-6585

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Labor and Regulation

Website: Department of Labor and Regulation

Address: Department of Labor and Regulation
Division of Banking
217 1/2 W. Missouri Ave.
Pierre, SD 57501

Phone Number: 605-773-3421

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Labor and Regulation

Website: Department of Labor and Regulation

Address: Department of Labor and Regulation
Division of Insurance
445 E. Capitol Ave.
Pierre, SD 57501

Phone Number: 605-773-3563

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Labor and Regulation

Website: Department of Labor and Regulation

Address: Department of Labor and Regulation
Division of Securities
445 E. Capitol Ave.
Pierre, SD 57501-3185

Phone Number: 605-773-4823

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Utilities Commission

Website: Public Utilities Commission

Address: Public Utilities Commission
Consumer Affairs
500 E. Capitol Ave.
Pierre, SD 57501-5070

Phone Number: 605-773-3201

Toll-free: 1-800-332-1782

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The H And R Block Active Duty

H and r block active duty Publication 1212 - Main Content Table of Contents Definitions Debt Instruments on the OID List Debt Instruments Not on the OID List Information for Brokers and Other MiddlemenShort-Term Obligations Redeemed at Maturity Long-Term Debt Instruments Certificates of Deposit Bearer Bonds and Coupons Backup Withholding Information for Owners of OID Debt InstrumentsExceptions. H and r block active duty Adjustment for premium. H and r block active duty Adjustment for acquisition premium. H and r block active duty Adjustment for market discount. H and r block active duty Form 1099-OID How To Report OID Figuring OID on Long-Term Debt Instruments Figuring OID on Stripped Bonds and Coupons How To Get Tax HelpLow Income Taxpayer Clinics Definitions The following terms are used throughout this publication. H and r block active duty “Original issue discount” is defined first. H and r block active duty The other terms are listed alphabetically. H and r block active duty Original issue discount (OID). H and r block active duty   OID is a form of interest. H and r block active duty It is the excess of a debt instrument's stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). H and r block active duty Zero coupon bonds and debt instruments that pay no stated interest until maturity are examples of debt instruments that have OID. H and r block active duty Accrual period. H and r block active duty   An accrual period is an interval of time used to measure OID. H and r block active duty The length of an accrual period can be 6 months, a year, or some other period, depending on when the debt instrument was issued. H and r block active duty Acquisition premium. H and r block active duty   Acquisition premium is the excess of a debt instrument's adjusted basis immediately after purchase, including purchase at original issue, over the debt instrument's adjusted issue price at that time. H and r block active duty A debt instrument does not have acquisition premium, however, if the debt instrument was purchased at a premium. H and r block active duty See Premium, later. H and r block active duty Adjusted issue price. H and r block active duty   The adjusted issue price of a debt instrument at the beginning of an accrual period is used to figure the OID allocable to that period. H and r block active duty In general, the adjusted issue price at the beginning of the debt instrument's first accrual period is its issue price. H and r block active duty The adjusted issue price at the beginning of any subsequent accrual period is the sum of the issue price and all the OID includible in income before that accrual period minus any payment previously made on the debt instrument, other than a payment of qualified stated interest. H and r block active duty Debt instrument. H and r block active duty   The term “debt instrument” means any instrument or contractual arrangement that constitutes indebtedness under general principles of federal income tax law (including, for example, a bond, debenture, note, certificate, or other evidence of indebtedness). H and r block active duty It generally does not include an annuity contract. H and r block active duty Issue price. H and r block active duty   For debt instruments listed in Section I-A and Section I-B, the issue price generally is the initial offering price to the public (excluding bond houses and brokers) at which a substantial amount of these instruments was sold. H and r block active duty Market discount. H and r block active duty   Market discount arises when a debt instrument purchased in the secondary market has decreased in value since its issue date, generally because of an increase in interest rates. H and r block active duty An OID debt instrument has market discount if your adjusted basis in the debt instrument immediately after you acquired it (usually its purchase price) was less than the debt instrument's issue price plus the total OID that accrued before you acquired it. H and r block active duty The market discount is the difference between the issue price plus accrued OID and your adjusted basis. H and r block active duty Premium. H and r block active duty   A debt instrument is purchased at a premium if its adjusted basis immediately after purchase is greater than the total of all amounts payable on the debt instrument after the purchase date, other than qualified stated interest. H and r block active duty The premium is the excess of the adjusted basis over the payable amounts. H and r block active duty See Publication 550 for information on the tax treatment of bond premium. H and r block active duty Qualified stated interest. H and r block active duty   In general, qualified stated interest is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually over the term of the debt instrument at a single fixed rate. H and r block active duty Stated redemption price at maturity. H and r block active duty   A debt instrument's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on the debt instrument other than qualified stated interest. H and r block active duty Yield to maturity (YTM). H and r block active duty   In general, the YTM is the discount rate that, when used in figuring the present value of all principal and interest payments, produces an amount equal to the issue price of the debt instrument. H and r block active duty The YTM is generally shown on the face of the debt instrument or in the literature you receive from your broker. H and r block active duty If you do not have this information, consult your broker, tax advisor, or the issuer. H and r block active duty Debt Instruments on the OID List The OID list on the IRS website can be used by brokers and other middlemen to prepare information returns. H and r block active duty If you own a listed debt instrument, you generally should not rely on the information in the OID list to determine (or compare) the OID to be reported on your tax return. H and r block active duty The OID amounts listed are figured without reference to the price or date at which you acquired the debt instrument. H and r block active duty For information about determining the OID to be reported on your tax return, see the instructions for figuring OID under Information for Owners of OID Debt Instruments, later. H and r block active duty The following discussions explain what information is contained in each section of the list. H and r block active duty Section I. H and r block active duty   This section contains publicly offered, long-term debt instruments. H and r block active duty Section I-A: Corporate Debt Instruments Issued Before 1985. H and r block active duty Section I-B: Corporate Debt Instruments Issued After 1984. H and r block active duty Section I-C: Inflation-Indexed Debt Instruments. H and r block active duty For each publicly offered debt instrument in Section I, the list contains the following information. H and r block active duty The name of the issuer. H and r block active duty The Committee on Uniform Security Identification Procedures (CUSIP) number. H and r block active duty The issue date. H and r block active duty The maturity date. H and r block active duty The issue price expressed as a percent of principal or of stated redemption price at maturity. H and r block active duty The annual stated or coupon interest rate. H and r block active duty (This rate is shown as 0. H and r block active duty 00 if no annual interest payments are provided. H and r block active duty ) The yield to maturity will be added to Section I-B for bonds issued after December 31, 2006. H and r block active duty The total OID accrued up to January 1 of a calendar year. H and r block active duty (This information is not available for every instrument. H and r block active duty ) For long-term debt instruments issued after July 1, 1982, the daily OID for the accrual periods falling in a calendar year and a subsequent year. H and r block active duty The total OID per $1,000 of principal or maturity value for a calendar year and a subsequent year. H and r block active duty Section II. H and r block active duty   This section contains stripped coupons and principal components of U. H and r block active duty S. H and r block active duty Treasury and Government-Sponsored Enterprise debt instruments. H and r block active duty These stripped components are available through the Department of the Treasury's Separate Trading of Registered Interest and Principal of Securities (STRIPS) program and government-sponsored enterprises such as the Resolution Funding Corporation. H and r block active duty This section also includes debt instruments backed by U. H and r block active duty S. H and r block active duty Treasury securities that represent ownership interests in those securities. H and r block active duty   The obligations listed in Section II are arranged by maturity date. H and r block active duty The amounts listed are the total OID for a calendar year per $1,000 of redemption price. H and r block active duty Section III. H and r block active duty   This section contains short-term discount obligations. H and r block active duty Section III-A: Short-Term U. H and r block active duty S. H and r block active duty Treasury Bills. H and r block active duty Section III-B: Federal Home Loan Banks. H and r block active duty Section III-C: Federal National Mortgage Association. H and r block active duty Section III-D: Federal Farm Credit Banks. H and r block active duty Section III-E: Federal Home Loan Mortgage Corporation. H and r block active duty Section III-F: Federal Agricultural Mortgage Corporation. H and r block active duty    Information that supplements Section III-A is available on the Internet at http://www. H and r block active duty treasurydirect. H and r block active duty gov/tdhome. H and r block active duty htm. H and r block active duty   The short-term obligations listed in this section are arranged by maturity date. H and r block active duty For each obligation, the list contains the CUSIP number, maturity date, issue date, issue price (expressed as a percent of principal), and discount to be reported as interest for a calendar year per $1,000 of redemption price. H and r block active duty Brokers and other middlemen should rely on the issue price information in Section III only if they are unable to determine the price actually paid by the owner. H and r block active duty Debt Instruments Not on the OID List The list of debt instruments discussed earlier does not contain the following items. H and r block active duty U. H and r block active duty S. H and r block active duty savings bonds. H and r block active duty Certificates of deposit and other face-amount certificates issued at a discount, including syndicated certificates of deposit. H and r block active duty Obligations issued by tax-exempt organizations. H and r block active duty OID debt instruments that matured or were entirely called by the issuer before the tables were posted on the IRS website. H and r block active duty Mortgage-backed securities and mortgage participation certificates. H and r block active duty Long-term OID debt instruments issued before May 28, 1969. H and r block active duty Short-term obligations, other than the obligations listed in Section III. H and r block active duty Debt instruments issued at a discount by states or their political subdivisions. H and r block active duty REMIC regular interests and CDOs. H and r block active duty Commercial paper and banker's acceptances issued at a discount. H and r block active duty Obligations issued at a discount by individuals. H and r block active duty Foreign obligations not traded in the United States and obligations not issued in the United States. H and r block active duty Information for Brokers and Other Middlemen The following discussions contain specific instructions for brokers and middlemen who hold or redeem a debt instrument for the owner. H and r block active duty In general, you must file a Form 1099 for the debt instrument if the interest or OID to be included in the owner's income for a calendar year totals $10 or more. H and r block active duty You also must file a Form 1099 if you were required to deduct and withhold tax, even if the interest or OID is less than $10. H and r block active duty See Backup Withholding, later. H and r block active duty If you must file a Form 1099, furnish a copy to the owner of the debt instrument by January 31 in the year it is due. H and r block active duty File all your Forms 1099 with the IRS, accompanied by Form 1096, by February 28 in the year it is due (March 31 if you file electronically). H and r block active duty Electronic payee statements. H and r block active duty   You can issue Form 1099-OID electronically with the consent of the recipient. H and r block active duty More information. H and r block active duty   For more information, including penalties for failure to file (or furnish) required information returns or statements, see the General Instructions for Certain Information Returns (Forms 1098, 1099, 3921, 3922, 5498, and W-2G) for the appropriate calendar year. H and r block active duty Short-Term Obligations Redeemed at Maturity If you redeem a short-term discount obligation for the owner at maturity, you must report the discount as interest on Form 1099-INT. H and r block active duty To figure the discount, use the purchase price shown on the owner's copy of the purchase confirmation receipt or similar record, or the price shown in your transaction records. H and r block active duty If you sell the obligation for the owner before maturity, you must file Form 1099-B to reflect the gross proceeds to the seller. H and r block active duty Do not report the accrued discount to the date of sale on either Form 1099-INT or Form 1099-OID. H and r block active duty If the owner's purchase price cannot be determined, figure the discount as if the owner had purchased the obligation at its original issue price. H and r block active duty A special rule is used to determine the original issue price for information reporting on U. H and r block active duty S. H and r block active duty Treasury bills (T-bills) listed in Section III-A. H and r block active duty Under this rule, you treat as the original issue price of the T-bill the noncompetitive (weighted average of accepted auction bids) discount price for the longest-maturity T-bill maturing on the same date as the T-bill being redeemed. H and r block active duty This noncompetitive discount price is the issue price (expressed as a percent of principal) shown in Section III-A. H and r block active duty A similar rule is used to figure the discount on short-term discount obligations issued by the organizations listed in Section III-B through Section III-F. H and r block active duty Example 1. H and r block active duty There are 13-week and 26-week T-bills maturing on the same date as the T-bill being redeemed. H and r block active duty The price actually paid by the owner cannot be established by owner or middleman records. H and r block active duty You treat as the issue price of the T-bill the noncompetitive discount price (expressed as a percent of principal) shown in Section III-A for a 26-week bill maturing on the same date as the T-bill redeemed. H and r block active duty The interest you report on Form 1099-INT is the OID (per $1,000 of principal) shown in Section III-A for that obligation. H and r block active duty Long-Term Debt Instruments If you hold a long-term OID debt instrument as a nominee for the true owner, you generally must file Form 1099-OID. H and r block active duty For this purpose, you can rely on Section I of the OID list to determine the following information. H and r block active duty Whether a debt instrument has OID. H and r block active duty The OID to be reported on the Form 1099-OID. H and r block active duty In general, you must report OID on publicly offered, long-term debt instruments listed in Section I. H and r block active duty You also can report OID on other long-term debt instruments. H and r block active duty Form 1099-OID. H and r block active duty   On Form 1099-OID for a calendar year show the following information. H and r block active duty Box 1. H and r block active duty The OID for the actual dates the owner held the debt instruments during a calendar year. H and r block active duty To determine this amount, see Figuring OID, next. H and r block active duty Box 2. H and r block active duty The qualified stated interest paid or credited during the calendar year. H and r block active duty Interest reported here is not reported on Form 1099-INT. H and r block active duty The qualified stated interest on Treasury inflation-protected securities may be reported on Form 1099-INT in box 3 instead. H and r block active duty Box 3. H and r block active duty Any interest or principal forfeited because of an early withdrawal that the owner can deduct from gross income. H and r block active duty Do not reduce the amounts in boxes 1 and 2 by the forfeiture. H and r block active duty Box 4. H and r block active duty Any backup withholding for this debt instrument. H and r block active duty Box 7. H and r block active duty The CUSIP number, if any. H and r block active duty If there is no CUSIP number, give a description of the debt instrument, including the abbreviation for the stock exchange, the abbreviation used by the stock exchange for the issuer, the coupon rate, and the year of maturity (for example, NYSE XYZ 12. H and r block active duty 50 2006). H and r block active duty If the issuer of the debt instrument is other than the payer, show the name of the issuer in this box. H and r block active duty Box 8. H and r block active duty The OID on a U. H and r block active duty S. H and r block active duty Treasury obligation for the part of the year the owner held the debt instrument. H and r block active duty Box 9. H and r block active duty Investment expenses passed on to holders of a single-class REMIC. H and r block active duty Boxes 10-12. H and r block active duty Use to report any state income tax withheld for this debt instrument. H and r block active duty Figuring OID. H and r block active duty   You can determine the OID on a long-term debt instrument by using either of the following. H and r block active duty Section I of the OID list. H and r block active duty The income tax regulations. H and r block active duty Using Section I. H and r block active duty   If the owner held the debt instrument for the entire calendar year, report the OID shown in Section I for the calendar year. H and r block active duty Because OID is listed for each $1,000 of stated redemption price at maturity, you must adjust the listed amount to reflect the debt instrument's actual stated redemption price at maturity. H and r block active duty For example, if the debt instrument's stated redemption price at maturity is $500, report one-half the listed OID. H and r block active duty   If the owner held the debt instrument for less than the entire calendar year, figure the OID to report as follows. H and r block active duty Look up the daily OID for the first accrual period in the calendar year during which the owner held the debt instrument. H and r block active duty Multiply the daily OID by the number of days the owner held the debt instrument during that accrual period. H and r block active duty Repeat steps (1) and (2) for any remaining accrual periods for the year during which the owner held the debt instrument. H and r block active duty Add the results in steps (2) and (3) to determine the owner's OID per $1,000 of stated redemption price at maturity. H and r block active duty If necessary, adjust the OID in (4) to reflect the debt instrument's stated redemption price at maturity. H and r block active duty Report the result on Form 1099-OID in box 1. H and r block active duty Using the income tax regulations. H and r block active duty   Instead of using Section I to figure OID, you can use the regulations under sections 1272 through 1275 of the Internal Revenue Code. H and r block active duty For example, under the regulations, you can use monthly accrual periods in figuring OID for a debt instrument issued after April 3, 1994, that provides for monthly payments. H and r block active duty (If you use Section I-B, the OID is figured using 6-month accrual periods. H and r block active duty )   For a general explanation of the rules for figuring OID under the regulations, see Figuring OID on Long-Term Debt Instruments under Information for Owners of OID Debt Instruments, later. H and r block active duty Certificates of Deposit If you hold a bank certificate of deposit (CD) as a nominee, you must determine whether the CD has OID and any OID includible in the income of the owner. H and r block active duty You must file an information return showing the reportable interest and OID, if any, on the CD. H and r block active duty These rules apply whether or not you sold the CD to the owner. H and r block active duty Report OID on a CD in the same way as OID on other debt instruments. H and r block active duty See Short-Term Obligations Redeemed at Maturity and Long-Term Debt Instruments, earlier. H and r block active duty Bearer Bonds and Coupons If a coupon from a bearer bond is presented to you for collection before the bond matures, you generally must report the interest on Form 1099-INT. H and r block active duty However, do not report the interest if either of the following apply. H and r block active duty You hold the bond as a nominee for the true owner. H and r block active duty The payee is a foreign person. H and r block active duty See Payments to foreign person under Backup Withholding, later. H and r block active duty Because you cannot assume the presenter of the coupon also owns the bond, you should not report OID on the bond on Form 1099-OID. H and r block active duty The coupon may have been “stripped” (separated) from the bond and separately purchased. H and r block active duty However, if a long-term bearer bond on the OID list is presented to you for redemption upon call or maturity, you should prepare a Form 1099-OID showing the OID for that calendar year, as well as any coupon interest payments collected at the time of redemption. H and r block active duty Backup Withholding If you report OID on Form 1099-OID or interest on Form 1099-INT for a calendar year, you may be required to apply backup withholding to the reportable payment at a rate of 28%. H and r block active duty The backup withholding is deducted at the time a cash payment is made. H and r block active duty See Pub. H and r block active duty 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), for more information. H and r block active duty Backup withholding generally applies in the following situations. H and r block active duty The payee does not give you a taxpayer identification number (TIN). H and r block active duty The IRS notifies you that the payee gave an incorrect TIN. H and r block active duty The IRS notifies you that the payee is subject to backup withholding due to payee underreporting. H and r block active duty For debt instruments acquired after 1983: The payee does not certify, under penalties of perjury, that he or she is not subject to backup withholding under (3), or The payee does not certify, under penalties of perjury, that the TIN given is correct. H and r block active duty However, for short-term discount obligations (other than government obligations), bearer bonds and coupons, and U. H and r block active duty S. H and r block active duty savings bonds, backup withholding applies only if the payee does not give you a TIN or gives you an obviously incorrect number for a TIN. H and r block active duty Short-term obligations. H and r block active duty   Backup withholding applies to OID on a short-term obligation only when the OID is paid at maturity. H and r block active duty However, backup withholding applies to any interest payable before maturity when the interest is paid or credited. H and r block active duty   If the owner of a short-term obligation at maturity is not the original owner and can establish the purchase price of the obligation, the amount subject to backup withholding must be determined by treating the purchase price as the issue price. H and r block active duty However, you can choose to disregard that price if it would require significant manual intervention in the computer or recordkeeping system used for the obligation. H and r block active duty If the purchase price of a listed obligation is not established or is disregarded, you must use the issue price shown in Section III. H and r block active duty Long-term obligations. H and r block active duty   If no cash payments are made on a long-term obligation before maturity, backup withholding applies only at maturity. H and r block active duty The amount subject to backup withholding is the OID includible in the owner's gross income for the calendar year when the obligation matures. H and r block active duty The amount to be withheld is limited to the cash paid. H and r block active duty Registered long-term obligations with cash payments. H and r block active duty   If a registered long-term obligation has cash payments before maturity, backup withholding applies when a cash payment is made. H and r block active duty The amount subject to backup withholding is the total of the qualified stated interest (defined earlier under Definitions) and OID includible in the owner's gross income for the calendar year when the payment is made. H and r block active duty If more than one cash payment is made during the year, the OID subject to withholding for the year must be allocated among the expected cash payments in the ratio that each bears to the total of the expected cash payments. H and r block active duty For any payment, the required withholding is limited to the cash paid. H and r block active duty Payee not the original owner. H and r block active duty   If the payee is not the original owner of the obligation, the OID subject to backup withholding is the OID includible in the gross income of all owners during the calendar year (without regard to any amount paid by the new owner at the time of transfer). H and r block active duty The amount subject to backup withholding at maturity of a listed obligation must be determined using the issue price shown in Section I. H and r block active duty Bearer long-term obligations with cash payments. H and r block active duty   If a bearer long-term obligation has cash payments before maturity, backup withholding applies when the cash payments are made. H and r block active duty For payments before maturity, the amount subject to withholding is the qualified stated interest (defined earlier under Definitions) includible in the owner's gross income for the calendar year. H and r block active duty For a payment at maturity, the amount subject to withholding is only the total of any qualified stated interest paid at maturity and the OID includible in the owner's gross income for the calendar year when the obligation matures. H and r block active duty The required withholding at maturity is limited to the cash paid. H and r block active duty Sales and redemptions. H and r block active duty   If you report the gross proceeds from a sale, exchange, or redemption of a debt instrument on Form 1099-B for a calendar year, you may be required to withhold 28% of the amount reported. H and r block active duty Backup withholding applies in the following situations. H and r block active duty The payee does not give you a TIN. H and r block active duty The IRS notifies you that the payee gave an incorrect TIN. H and r block active duty For debt instruments held in an account opened after 1983, the payee does not certify, under penalties of perjury, that the TIN given is correct. H and r block active duty Payments outside the United States to U. H and r block active duty S. H and r block active duty person. H and r block active duty   The requirements for backup withholding and information reporting apply to payments of OID and interest made outside the United States to a U. H and r block active duty S. H and r block active duty person, a controlled foreign corporation, or a foreign person at least 50% of whose income for the preceding 3-year period is effectively connected with the conduct of a U. H and r block active duty S. H and r block active duty trade or business. H and r block active duty Payments to foreign person. H and r block active duty   The following discussions explain the rules for backup withholding and information reporting on payments to foreign persons. H and r block active duty U. H and r block active duty S. H and r block active duty -source amount. H and r block active duty   Backup withholding and information reporting are not required for payments of U. H and r block active duty S. H and r block active duty -source OID, interest, or proceeds from a sale or redemption of an OID instrument if the payee has given you proof (generally the appropriate Form W-8 or an acceptable substitute) that the payee is a foreign person. H and r block active duty A U. H and r block active duty S. H and r block active duty resident is not a foreign person. H and r block active duty For proof of the payee's foreign status, you can rely on the appropriate Form W-8 or on documentary evidence for payments made outside the United States to an offshore account or, in case of broker proceeds, a sale effected outside the United States. H and r block active duty Receipt of the appropriate Form W-8 does not relieve you from information reporting and backup withholding if you actually know the payee is a U. H and r block active duty S. H and r block active duty person. H and r block active duty   For information about the 28% withholding tax that may apply to payments of U. H and r block active duty S. H and r block active duty -source OID or interest to foreign persons, see Publication 515. H and r block active duty Foreign-source amount. H and r block active duty   Backup withholding and information reporting are not required for payments of foreign-source OID and interest made outside the United States. H and r block active duty However, if the payments are made inside the United States, the requirements for backup withholding and information reporting will apply unless the payee has given you the appropriate Form W-8 or acceptable substitute as proof that the payee is a foreign person. H and r block active duty More information. H and r block active duty   For more information about backup withholding and information reporting on foreign-source amounts or payments to foreign persons, see Regulations section 1. H and r block active duty 6049-5. H and r block active duty Information for Owners of OID Debt Instruments This section is for persons who prepare their own tax returns. H and r block active duty It discusses the income tax rules for figuring and reporting OID on long-term debt instruments. H and r block active duty It also includes a similar discussion for stripped bonds and coupons, such as zero coupon bonds available through the Department of the Treasury's STRIPS program and government-sponsored enterprises such as the Resolution Funding Corporation. H and r block active duty However, the information provided does not cover every situation. H and r block active duty More information can be found in the regulations under sections 1271 through 1275 of the Internal Revenue Code. H and r block active duty Including OID in income. H and r block active duty   Generally, you include OID in income as it accrues each year, whether or not you receive any payments from the debt instrument issuer. H and r block active duty Exceptions. H and r block active duty   The rules for including OID in income as it accrues generally do not apply to the following debt instruments. H and r block active duty U. H and r block active duty S. H and r block active duty savings bonds. H and r block active duty Tax-exempt obligations. H and r block active duty (However, see Tax-Exempt Bonds and Coupons, later. H and r block active duty ) Obligations issued by individuals before March 2, 1984. H and r block active duty Loans of $10,000 or less between individuals who are not in the business of lending money. H and r block active duty (The dollar limit includes outstanding prior loans by the lender to the borrower. H and r block active duty ) This exception does not apply if a principal purpose of the loan is to avoid any federal tax. H and r block active duty   See chapter 1 of Publication 550 for information about the rules for these and other types of discounted debt instruments, such as short-term and market discount obligations. H and r block active duty Publication 550 also discusses rules for holders of REMIC interests and CDOs. H and r block active duty De minimis rule. H and r block active duty   You can treat OID as zero if the total OID on a debt instrument is less than one-fourth of 1% (. H and r block active duty 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. H and r block active duty Debt instruments with de minimis OID are not listed in this publication. H and r block active duty There are special rules to determine the de minimis amount in the case of debt instruments that provide for more than one payment of principal. H and r block active duty Also, the de minimis rules generally do not apply to tax-exempt obligations. H and r block active duty Example 2. H and r block active duty You bought at issuance a 10-year debt instrument with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. H and r block active duty One-fourth of 1% of $1,000 (the stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. H and r block active duty Under the de minimis rule, you can treat the OID as zero because the $20 discount is less than $25. H and r block active duty Example 3. H and r block active duty Assume the same facts as Example 2, except the debt instrument was issued at $950. H and r block active duty You must report part of the $50 OID each year because it is more than $25. H and r block active duty Choice to report all interest as OID. H and r block active duty   Generally, you can choose to treat all interest on a debt instrument acquired after April 3, 1994, as OID and include it in gross income by using the constant yield method. H and r block active duty See Constant yield method under Debt Instruments Issued After 1984, later, for more information. H and r block active duty   For this choice, interest includes stated interest, acquisition discount, OID, de minimis OID, market discount, de minimis market discount, and unstated interest, as adjusted by any amortizable bond premium or acquisition premium. H and r block active duty For more information, see Regulations section 1. H and r block active duty 1272-3. H and r block active duty Purchase after date of original issue. H and r block active duty   A debt instrument you purchased after the date of original issue may have premium, acquisition premium, or market discount. H and r block active duty If so, the OID reported to you on Form 1099-OID may have to be adjusted. H and r block active duty For more information, see Showing an OID adjustment under How To Report OID, later. H and r block active duty The following rules generally do not apply to contingent payment debt instruments. H and r block active duty Adjustment for premium. H and r block active duty   If your debt instrument (other than an inflation-indexed debt instrument) has premium, do not report any OID as ordinary income. H and r block active duty Your adjustment is the total OID shown on your Form 1099-OID. H and r block active duty Adjustment for acquisition premium. H and r block active duty   If your debt instrument has acquisition premium, reduce the OID you report. H and r block active duty Your adjustment is the difference between the OID shown on your Form 1099-OID and the reduced OID amount figured using the rules explained later under Figuring OID on Long-Term Debt Instruments. H and r block active duty Adjustment for market discount. H and r block active duty   If your debt instrument has market discount that you choose to include in income currently, increase the OID you report. H and r block active duty Your adjustment is the accrued market discount for the year. H and r block active duty See Market Discount Bonds in chapter 1 of Publication 550 for information on how to figure accrued market discount and include it in your income currently and for other information about market discount bonds. H and r block active duty If you choose to use the constant yield method to figure accrued market discount, also see Figuring OID on Long-Term Debt Instruments, later. H and r block active duty The constant yield method of figuring accrued OID, explained in those discussions under Constant yield method, is also used to figure accrued market discount. H and r block active duty For more information concerning premium or market discount on an inflation-indexed debt instrument, see Regulations section 1. H and r block active duty 1275-7. H and r block active duty Sale, exchange, or redemption. H and r block active duty   Generally, you treat your gain or loss from the sale, exchange, or redemption of a discounted debt instrument as a capital gain or loss if you held the debt instrument as a capital asset. H and r block active duty If you sold the debt instrument through a broker, you should receive Form 1099-B or an equivalent statement from the broker. H and r block active duty Use the Form 1099-B or other statement and your brokerage statements to complete Form 8949, and Schedule D (Form 1040). H and r block active duty   Your gain or loss is the difference between the amount you realized on the sale, exchange, or redemption and your basis in the debt instrument. H and r block active duty Your basis, generally, is your cost increased by the OID you have included in income each year you held it. H and r block active duty In general, to determine your gain or loss on a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. H and r block active duty   See chapter 4 of Publication 550 for more information about the tax treatment of the sale or redemption of discounted debt instruments. H and r block active duty Example 4. H and r block active duty Larry, a calendar year taxpayer, bought a corporate debt instrument at original issue for $86,235. H and r block active duty 00 on November 1 of Year 1. H and r block active duty The 15-year debt instrument matures on October 31 of Year 16 at a stated redemption price of $100,000. H and r block active duty The debt instrument provides for semiannual payments of interest at 10%. H and r block active duty Assume the debt instrument is a capital asset in Larry's hands. H and r block active duty The debt instrument has $13,765. H and r block active duty 00 of OID ($100,000 stated redemption price at maturity minus $86,235. H and r block active duty 00 issue price). H and r block active duty Larry sold the debt instrument for $90,000 on November 1 of Year 4. H and r block active duty Including the OID he will report for the period he held the debt instrument in Year 4, Larry has included $4,556. H and r block active duty 00 of OID in income and has increased his basis by that amount to $90,791. H and r block active duty 00. H and r block active duty Larry has realized a loss of $791. H and r block active duty 00. H and r block active duty All of Larry's loss is capital loss. H and r block active duty Form 1099-OID The issuer of the debt instrument (or your broker, if you purchased or held the debt instrument through a broker) should give you a copy of Form 1099-OID or a similar statement if the accrued OID for the calendar year is $10 or more and the term of the debt instrument is more than 1 year. H and r block active duty Form 1099-OID shows all OID income in box 1 except OID on a U. H and r block active duty S. H and r block active duty Treasury obligation, which is shown in box 8. H and r block active duty It also shows, in box 2, any qualified stated interest you must include in income. H and r block active duty (However, any qualified stated interest on Treasury inflation-protected securities can be reported on Form 1099-INT in box 3. H and r block active duty ) A copy of Form 1099-OID will be sent to the IRS. H and r block active duty Do not attach your copy to your tax return. H and r block active duty Keep it for your records. H and r block active duty If you are required to file a tax return and you receive Form 1099-OID showing taxable amounts, you must report these amounts on your return. H and r block active duty A 20% accuracy-related penalty may be charged for underpayment of tax due to either negligence or disregard of rules and regulations or substantial understatement of tax. H and r block active duty Form 1099-OID not received. H and r block active duty   If you held an OID debt instrument for a calendar year but did not receive a Form 1099-OID, refer to the discussions under Figuring OID on Long-Term Debt Instruments, later, for information on the OID you must report. H and r block active duty Refiguring OID. H and r block active duty   You must refigure the OID shown on Form 1099-OID, in box 1 or box 8, to determine the proper amount to include in income if one of the following applies. H and r block active duty You bought the debt instrument at a premium or at an acquisition premium. H and r block active duty The debt instrument is a stripped bond or coupon (including zero coupon bonds backed by U. H and r block active duty S. H and r block active duty Treasury securities). H and r block active duty The debt instrument is a contingent payment or inflation-indexed debt instrument. H and r block active duty See the discussions under Figuring OID on Long-Term Debt Instruments or Figuring OID on Stripped Bonds and Coupons, later, for the specific computations. H and r block active duty Refiguring interest. H and r block active duty   If you disposed of a debt instrument or acquired it from another holder between interest dates, see the discussion under Bonds Sold Between Interest Dates in chapter 1 of Publication 550 for information about refiguring the interest shown on Form 1099-OID in box 2. H and r block active duty Nominee. H and r block active duty   If you are the holder of an OID debt instrument and you receive a Form 1099-OID that shows your taxpayer identification number and includes amounts belonging to another person, you are considered a “nominee. H and r block active duty ” You must file another Form 1099-OID for each actual owner, showing the OID for the owner. H and r block active duty Show the owner of the debt instrument as the “recipient” and you as the “payer. H and r block active duty ”   Complete Form 1099-OID and Form 1096 and file the forms with the Internal Revenue Service Center for your area. H and r block active duty You must also give a copy of the Form 1099-OID to the actual owner. H and r block active duty However, you are not required to file a nominee return to show amounts belonging to your spouse. H and r block active duty See the Form 1099 instructions for more information. H and r block active duty   When preparing your tax return, follow the instructions under Showing an OID adjustment in the next discussion. H and r block active duty How To Report OID Generally, you report your taxable interest and OID income on the interest line of Form 1040EZ, Form 1040A, or Form 1040. H and r block active duty Form 1040 or Form 1040A required. H and r block active duty   You must use Form 1040 or Form 1040A (you cannot use Form 1040EZ) under either of the following conditions. H and r block active duty You received a Form 1099-OID as a nominee for the actual owner. H and r block active duty Your total interest and OID income for the year was more than $1,500. H and r block active duty Form 1040 required. H and r block active duty   You must use Form 1040 (you cannot use Form 1040A or Form 1040EZ) if you are reporting more or less OID than the amount shown on Form 1099-OID, other than because you are a nominee. H and r block active duty For example, if you paid a premium or an acquisition premium when you purchased the debt instrument, you must use Form 1040 because you will report less OID than shown on Form 1099-OID. H and r block active duty Also, you must use Form 1040 if you were charged an early withdrawal penalty. H and r block active duty Where to report. H and r block active duty   List each payer's name (if a brokerage firm gave you a Form 1099, list the brokerage firm as the payer) and the amount received from each payer on Form 1040A, Schedule B, Part I, line 1, or Form 1040, Schedule B, line 1. H and r block active duty Include all OID and periodic interest shown on any Form 1099-OID, boxes 1, 2, and 8, you received for the tax year. H and r block active duty Also include any other OID and interest income for which you did not receive a Form 1099. H and r block active duty Showing an OID adjustment. H and r block active duty   If you use Form 1040 to report more or less OID than shown on Form 1099-OID, list the full OID on Schedule B, Part I, line 1, and follow the instructions under 1 or 2, next. H and r block active duty   If you use Form 1040A to report the OID shown on a Form 1099-OID you received as a nominee for the actual owner, list the full OID on Schedule B, Part I, line 1 and follow the instructions under 1. H and r block active duty If the OID, as adjusted, is less than the amount shown on Form 1099-OID, show the adjustment as follows. H and r block active duty Under your last entry on line 1, subtotal all interest and OID income listed on line 1. H and r block active duty Below the subtotal, write “Nominee Distribution” or “OID Adjustment” and show the OID you are not required to report. H and r block active duty Subtract that OID from the subtotal and enter the result on line 2. H and r block active duty If the OID, as adjusted, is more than the amount shown on Form 1099-OID, show the adjustment as follows. H and r block active duty Under your last entry on line 1, subtotal all interest and OID income listed on line 1. H and r block active duty Below the subtotal, write “OID Adjustment” and show the additional OID. H and r block active duty Add that OID to the subtotal and enter the result on line 2. H and r block active duty Figuring OID on Long-Term Debt Instruments How you figure the OID on a long-term debt instrument depends on the date it was issued. H and r block active duty It also may depend on the type of the debt instrument. H and r block active duty There are different rules for each of the following debt instruments. H and r block active duty Corporate debt instruments issued after 1954 and before May 28, 1969, and government debt instruments issued after 1954 and before July 2, 1982. H and r block active duty Corporate debt instruments issued after May 27, 1969, and before July 2, 1982. H and r block active duty Debt instruments issued after July 1, 1982, and before 1985. H and r block active duty Debt instruments issued after 1984 (other than debt instruments described in (5) and (6)). H and r block active duty Contingent payment debt instruments issued after August 12, 1996. H and r block active duty Inflation-indexed debt instruments (including Treasury inflation-protected securities) issued after January 5, 1997. H and r block active duty Zero coupon bonds. H and r block active duty   The rules for figuring OID on zero coupon bonds backed by U. H and r block active duty S. H and r block active duty Treasury securities are discussed under Figuring OID on Stripped Bonds and Coupons, later. H and r block active duty Corporate Debt Instruments Issued After 1954 and Before May 28, 1969, and Government Debt Instruments Issued After 1954 and Before July 2, 1982 If you hold these debt instruments as capital assets, you include OID in income only in the year the debt instrument is sold, exchanged, or redeemed, and only if you have a gain. H and r block active duty The OID, which is taxed as ordinary income, generally equals the following amount. H and r block active duty   number of full months you held the debt instrument  number of full months from date of original issue to date of maturity X original issue discount The balance of the gain is capital gain. H and r block active duty If there is a loss on the sale of the debt instrument, the entire loss is a capital loss and no OID is reported. H and r block active duty Corporate Debt Instruments Issued After May 27, 1969, and Before July 2, 1982 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments. H and r block active duty For information about showing the correct OID on your tax return, see the discussion under How To Report OID, earlier. H and r block active duty Your basis in the debt instrument is increased by the OID you include in income. H and r block active duty Form 1099-OID. H and r block active duty   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. H and r block active duty However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. H and r block active duty See Reduction for acquisition premium, later. H and r block active duty If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. H and r block active duty irs. H and r block active duty gov/pub1212 by clicking the link under Recent Developments. H and r block active duty Form 1099-OID not received. H and r block active duty    The OID listed is for each $1,000 of redemption price. H and r block active duty You must adjust the listed amount if your debt instrument has a different principal amount. H and r block active duty For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. H and r block active duty   If you held the debt instrument the entire year, use the OID shown in Section I-A for a calendar year. H and r block active duty (If your debt instrument is not listed in Section I-A, consult the issuer for information about the issue price and the OID that accrued for that year. H and r block active duty ) If you did not hold the debt instrument the entire year, figure your OID using the following method. H and r block active duty Divide the OID shown by 12. H and r block active duty Multiply the result in (1) by the number of complete and partial months (for example, 6½ months) you held the debt instrument during a calendar year. H and r block active duty This is the OID to include in income unless you paid an acquisition premium. H and r block active duty The reduction for acquisition premium is discussed next. H and r block active duty Reduction for acquisition premium. H and r block active duty   If you bought the debt instrument at an acquisition premium, figure the OID to include in income as follows. H and r block active duty Divide the total OID on the debt instrument by the number of complete months, and any part of a month, from the date of original issue to the maturity date. H and r block active duty This is the monthly OID. H and r block active duty Subtract from your cost the issue price and the accumulated OID from the date of issue to the date of purchase. H and r block active duty (If the result is zero or less, stop here. H and r block active duty You did not pay an acquisition premium. H and r block active duty ) Divide the amount figured in (2) by the number of complete months, and any part of a month, from the date of your purchase to the maturity date. H and r block active duty Subtract the amount figured in (3) from the amount figured in (1). H and r block active duty This is the OID to include in income for each month you hold the debt instrument during the year. H and r block active duty Transfers during the month. H and r block active duty   If you buy or sell a debt instrument on any day other than the same day of the month as the date of original issue, the ratable monthly portion of OID for the month of sale is divided between the seller and the buyer according to the number of days each held the debt instrument. H and r block active duty Your holding period for this purpose begins the day you acquire the debt instrument and ends the day before you dispose of it. H and r block active duty Debt Instruments Issued After July 1, 1982, and Before 1985 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments and increase your basis by the amount included. H and r block active duty For information about showing the correct OID on your tax return, see How To Report OID, earlier. H and r block active duty Form 1099-OID. H and r block active duty   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. H and r block active duty However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. H and r block active duty See Constant yield method and the discussions on acquisition premium that follow, later. H and r block active duty If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. H and r block active duty irs. H and r block active duty gov/pub1212 by clicking the link under Recent Developments. H and r block active duty Form 1099-OID not received. H and r block active duty    The OID listed is for each $1,000 of redemption price. H and r block active duty You must adjust the listed amount if your debt instrument has a different principal amount. H and r block active duty For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. H and r block active duty   If you held the debt instrument the entire year, use the OID shown in Section I-A. H and r block active duty (If your instrument is not listed in Section I-A, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. H and r block active duty ) If you did not hold the debt instrument the entire year, figure your OID using either of the following methods. H and r block active duty Method 1. H and r block active duty    Divide the total OID for a calendar year by 365 (366 for leap years). H and r block active duty Multiply the result in (1) by the number of days you held the debt instrument during that particular year. H and r block active duty  This computation is an approximation and may result in a slightly higher OID than Method 2. H and r block active duty Method 2. H and r block active duty    Look up the daily OID for the first accrual period you held the debt instrument during a calendar year. H and r block active duty (See Accrual period under Constant yield method, next. H and r block active duty ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. H and r block active duty If you held the debt instrument for part of both accrual periods, repeat (1) and (2) for the second accrual period. H and r block active duty Add the results of (2) and (3). H and r block active duty This is the OID to include in income, unless you paid an acquisition premium. H and r block active duty (The reduction for acquisition premium is discussed later. H and r block active duty ) Constant yield method. H and r block active duty   This discussion shows how to figure OID on debt instruments issued after July 1, 1982, and before 1985, using a constant yield method. H and r block active duty OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. H and r block active duty   Figure the OID allocable to any accrual period as follows. H and r block active duty Multiply the adjusted issue price at the beginning of the accrual period by the debt instrument's yield to maturity. H and r block active duty Subtract from the result in (1) any qualified stated interest allocable to the accrual period. H and r block active duty Accrual period. H and r block active duty   An accrual period for any OID debt instrument issued after July 1, 1982, and before 1985 is each 1-year period beginning on the date of the issue of the obligation and each anniversary thereafter, or the shorter period to maturity for the last accrual period. H and r block active duty Your tax year will usually include parts of two accrual periods. H and r block active duty Daily OID. H and r block active duty   The OID for any accrual period is allocated equally to each day in the accrual period. H and r block active duty You must include in income the sum of the OID amounts for each day you hold the debt instrument during the year. H and r block active duty If your tax year includes parts of two or more accrual periods, you must include the proper daily OID amounts for each accrual period. H and r block active duty Figuring daily OID. H and r block active duty   The daily OID for the initial accrual period is figured using the following formula. H and r block active duty   (ip × ytm) − qsi     p   ip = issue price ytm = yield to maturity qsi = qualified stated interest p = number of days in accrual period         The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. H and r block active duty Reduction for acquisition premium on debt instruments purchased before July 19, 1984. H and r block active duty   If you bought the debt instrument at an acquisition premium before July 19, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. H and r block active duty Figure the daily acquisition premium by dividing the total acquisition premium by the number of days in the period beginning on your purchase date and ending on the day before the date of maturity. H and r block active duty Reduction for acquisition premium on debt instruments purchased after July 18, 1984. H and r block active duty   If you bought the debt instrument at an acquisition premium after July 18, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. H and r block active duty However, the method of figuring the daily acquisition premium is different from the method described in the preceding discussion. H and r block active duty To figure the daily acquisition premium under this method, multiply the daily OID by the following fraction. H and r block active duty The numerator is the acquisition premium. H and r block active duty The denominator is the total OID remaining for the debt instrument after your purchase date. H and r block active duty Section I-A is available at www. H and r block active duty irs. H and r block active duty gov/pub1212 and clicking the link under Recent Developments. H and r block active duty Using Section I-A to figure accumulated OID. H and r block active duty   If you bought your corporate debt instrument in a calendar year or the subsequent year, you can figure the accumulated OID to the date of purchase by adding the following amounts. H and r block active duty The amount from the “Total OID to January 1, YYYY” column for your debt instrument. H and r block active duty The OID from January 1 of a calendar year to the date of purchase, figured as follows. H and r block active duty Multiply the daily OID for the first accrual period in the calendar year by the number of days from January 1 to the date of purchase, or the end of the accrual period if the debt instrument was purchased in the second or third accrual period. H and r block active duty Multiply the daily OID for each subsequent accrual period by the number of days in the period to the date of purchase or the end of the accrual period, whichever applies. H and r block active duty Add the amounts figured in (2a) and (2b). H and r block active duty Debt Instruments Issued After 1984 If you hold debt instruments issued after 1984, you must report part of the OID in gross income each year that you own the debt instruments. H and r block active duty You must include the OID in gross income whether or not you hold the debt instrument as a capital asset. H and r block active duty Your basis in the debt instrument is increased by the OID you include in income. H and r block active duty For information about showing the correct OID on your tax return, see How To Report OID, earlier. H and r block active duty Form 1099-OID. H and r block active duty   You should receive a Form 1099-OID showing OID for the part of a calendar year you held the debt instrument. H and r block active duty However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. H and r block active duty See Constant yield method and Reduction for acquisition premium, later. H and r block active duty   You may also need to refigure the OID for a contingent payment or inflation-indexed debt instrument on which the amount reported on Form 1099-OID is inaccurate. H and r block active duty See Contingent Payment Debt Instruments or Inflation-Indexed Debt Instruments, later. H and r block active duty If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-B available at www. H and r block active duty irs. H and r block active duty gov/pub1212 by clicking the link under Recent Developments. H and r block active duty Form 1099-OID not received. H and r block active duty   The OID listed is for each $1,000 of redemption price. H and r block active duty You must adjust the listed amount if your debt instrument has a different principal amount. H and r block active duty For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. H and r block active duty   Use the OID shown in Section I-B for a calendar year if you held the debt instrument the entire year. H and r block active duty (If your debt instrument is not listed in Section I-B, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. H and r block active duty ) If you did not hold the debt instrument the entire year, figure your OID as follows. H and r block active duty Look up the daily OID for the first accrual period in which you held the debt instrument during a calendar year. H and r block active duty (See Accrual period under Constant yield method, later. H and r block active duty ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. H and r block active duty Repeat (1) and (2) for any remaining accrual periods in which you held the debt instrument. H and r block active duty Add the results of (2) and (3). H and r block active duty This is the OID to include in income for that year, unless you paid an acquisition premium. H and r block active duty (The reduction for acquisition premium is discussed later. H and r block active duty ) Tax-exempt bond. H and r block active duty   If you own a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. H and r block active duty You need to make this adjustment to determine if you have a gain or loss on a later disposition of the bond. H and r block active duty In general, use the rules that follow to determine your OID. H and r block active duty Constant yield method. H and r block active duty   This discussion shows how to figure OID on debt instruments issued after 1984 using a constant yield method. H and r block active duty (The special rules that apply to contingent payment debt instruments and inflation-indexed debt instruments are explained later. H and r block active duty ) OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. H and r block active duty   Figure the OID allocable to any accrual period as follows. H and r block active duty Multiply the adjusted issue price at the beginning of the accrual period by a fraction. H and r block active duty The numerator of the fraction is the debt instrument's yield to maturity and the denominator is the number of accrual periods per year. H and r block active duty The yield must be stated appropriately taking into account the length of the particular accrual period. H and r block active duty Subtract from the result in (1) any qualified stated interest allocable to the accrual period. H and r block active duty Accrual period. H and r block active duty   For debt instruments issued after 1984 and before April 4, 1994, an accrual period is each 6-month period that ends on the day that corresponds to the stated maturity date of the debt instrument or the date 6 months before that date. H and r block active duty For example, a debt instrument maturing on March 31 has accrual periods that end on September 30 and March 31 of each calendar year. H and r block active duty Any short period is included as the first accrual period. H and r block active duty   For debt instruments issued after April 3, 1994, accrual periods may be of any length and may vary in length over the term of the debt instrument, as long as each accrual period is no longer than 1 year and all payments are made on the first or last day of an accrual period. H and r block active duty However, the OID listed for these debt instruments in Section I-B has been figured using 6-month accrual periods. H and r block active duty Daily OID. H and r block active duty   The OID for any accrual period is allocated equally to each day in the accrual period. H and r block active duty Figure the amount to include in income by adding the OID for each day you hold the debt instrument during the year. H and r block active duty Since your tax year will usually include parts of two or more accrual periods, you must include the proper daily OID for each accrual period. H and r block active duty If your debt instrument has 6-month accrual periods, your tax year will usually include one full 6-month accrual period and parts of two other 6-month periods. H and r block active duty Figuring daily OID. H and r block active duty   The daily OID for the initial accrual period is figured using the following formula. H and r block active duty   (ip × ytm/n) − qsi     p   ip = issue price ytm = yield to maturity n = number of accrual periods in 1 year qsi = qualified stated interest p = number of days in accrual period       The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. H and r block active duty Example 5. H and r block active duty On January 1 of Year 1, you bought a 15-year, 10% debt instrument of A Corporation at original issue for $86,235. H and r block active duty 17. H and r block active duty According to the prospectus, the debt instrument matures on December 31 of Year 15 at a stated redemption price of $100,000. H and r block active duty The yield to maturity is 12%, compounded semiannually. H and r block active duty The debt instrument provides for qualified stated interest payments of $5,000 on June 30 and December 31 of each calendar year. H and r block active duty The accrual periods are the 6-month periods ending on each of these dates. H and r block active duty The number of days for the first accrual period (January 1 through June 30) is 181 days (182 for leap years). H and r block active duty The daily OID for the first accrual period is figured as follows. H and r block active duty   ($86,235. H and r block active duty 17 x . H and r block active duty 12/2) – $5,000     181 days     = $174. H and r block active duty 11020 = $. H and r block active duty 96193   181           The adjusted issue price at the beginning of the second accrual period is the issue price plus the OID previously includible in income ($86,235. H and r block active duty 17 + $174. H and r block active duty 11), or $86,409. H and r block active duty 28. H and r block active duty The number of days for the second accrual period (July 1 through December 31) is 184 days. H and r block active duty The daily OID for the second accrual period is figured as follows. H and r block active duty   ($86,409. H and r block active duty 28 x . H and r block active duty 12/2) – $5,000     184 days     = $184. H and r block active duty 55681 = $1. H and r block active duty 00303   184 Since the first and second accrual periods coincide exactly with your tax year, you include in income for Year 1 the OID allocable to the first two accrual periods, $174. H and r block active duty 11 ($. H and r block active duty 95665 × 182 days) plus $184. H and r block active duty 56 ($1. H and r block active duty 00303 × 184 days), or $358. H and r block active duty 67. H and r block active duty Add the OID to the $10,000 interest you report on your income tax return for Year 1. H and r block active duty Example 6. H and r block active duty Assume the same facts as in Example 5, except that you bought the debt instrument at original issue on May 1 of Year 1, with a maturity date of April 30, Year 16. H and r block active duty Also, the interest payment dates are October 31 and April 30 of each calendar year. H and r block active duty The accrual periods are the 6-month periods ending on each of these dates. H and r block active duty The number of days for the first accrual period (May 1 through October 31) is 184 days. H and r block active duty The daily OID for the first accrual period is figured as follows. H and r block active duty   ($86,235. H and r block active duty 17 x . H and r block active duty 12/2) – $5,000     184 days     = $174. H and r block active duty 11020 = $. H and r block active duty 94625   184           The number of days for the second accrual period (November 1 through April 30) is 181 days (182 for leap years). H and r block active duty The daily OID for the second accrual period is figured as follows. H and r block active duty   ($86,409. H and r block active duty 28 x . H and r block active duty 12/2) – $5,000     181 days     = $184. H and r block active duty 55681 = $1. H and r block active duty 01965   181 If you hold the debt instrument through the end of Year 1, you must include $236. H and r block active duty 31 of OID in income. H and r block active duty This is $174. H and r block active duty 11 ($. H and r block active duty 94625 × 184 days) for the period May 1 through October 31 plus $62. H and r block active duty 20 ($1. H and r block active duty 01965 × 61 days) for the period November 1 through December 31. H and r block active duty The OID is added to the $5,000 interest income paid on October 31 of Year 1. H and r block active duty Your basis in the debt instrument is increased by the OID you include in income. H and r block active duty On January 1 of Year 2, your basis in the A Corporation debt instrument is $86,471. H and r block active duty 48 ($86,235. H and r block active duty 17 + $236. H and r block active duty 31). H and r block active duty Short first accrual period. H and r block active duty   You may have to make adjustments if a debt instrument has a short first accrual period. H and r block active duty For example, a debt instrument with 6-month accrual periods that is issued on February 15 and matures on October 31 has a short first accrual period that ends April 30. H and r block active duty (The remaining accrual periods begin on May 1 and November 1. H and r block active duty ) For this short period, figure the daily OID as described earlier, but adjust the yield for the length of the short accrual period. H and r block active duty You may use any reasonable compounding method in determining OID for a short period. H and r block active duty Examples of reasonable compounding methods include continuous compounding and monthly compounding (that is, simple interest within a month). H and r block active duty Consult your tax advisor for more information about making this computation. H and r block active duty   The OID for the final accrual period is the difference between the amount payable at maturity (other than a payment of qualified stated interest) and the adjusted issue price at the beginning of the final accrual period. H and r block active duty Reduction for acquisition premium. H and r block active duty   If you bought the debt instrument at an acquisition premium, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. H and r block active duty To figure the daily acquisition premium, multiply the daily OID by the following fraction. H and r block active duty The numerator is the acquisition premium. H and r block active duty The denominator is the total OID remaining for the debt instrument after your purchase date. H and r block active duty Example 7. H and r block active duty Assume the same facts as in Example 6, except that you bought the debt instrument on November 1 of Year 1 for $87,000, after its original issue on May 1 of Year 1. H and r block active duty The adjusted issue price on November 1 of Year 1 is $86,409. H and r block active duty 28 ($86,235. H and r block active duty 17 + $174. H and r block active duty 11). H and r block active duty In this case, you paid an acquisition premium of $590. H and r block active duty 72 ($87,000 − $86,409. H and r block active duty 28). H and r block active duty The daily OID for the accrual period November 1 through April 30, reduced for the acquisition premium, is figured as follows. H and r block active duty 1) Daily OID on date of purchase (2nd accrual period) $1. H and r block active duty 01965*  2)  Acquisition premium $590. H and r block active duty 72    3)  Total OID remaining after purchase date ($13,764. H and r block active duty 83 − $174. H and r block active duty 11) 13,590. H and r block active duty 72   4) Line 2 ÷ line 3 . H and r block active duty 04346  5)  Line 1 × line 4 . H and r block active duty 04432  6)  Daily OID reduced for the acquisition premium. H and r block active duty Line 1 − line 5 $0. H and r block active duty 97533  * As shown in Example 6. H and r block active duty The total OID to include in income for Year 1 is $59. H and r block active duty 50 ($. H and r block active duty 97533 × 61 days). H and r block active duty Contingent Payment Debt Instruments This discussion shows how to figure OID on a contingent payment debt instrument issued after August 12, 1996, that was issued for cash or publicly traded property. H and r block active duty In general, a contingent payment debt instrument provides for one or more payments that are contingent as to timing or amount. H and r block active duty If you hold a contingent payment bond, you must report OID as it accrues each year. H and r block active duty Because the actual payments on a contingent payment debt instrument cannot be known in advance, issuers and holders cannot use the constant yield method (discussed earlier under Debt Instruments Issued After 1984) without making certain assumptions about the payments on the debt instrument. H and r block active duty To figure OID accruals on contingent payment debt instruments, holders and issuers must use the noncontingent bond method. H and r block active duty Noncontingent bond method. H and r block active duty    Under this method, the issuer must compute a comparable yield for the debt instrument and, based on this yield, construct a projected payment schedule for the instrument, which includes a projected fixed amount for each contingent payment. H and r block active duty In general, holders and issuers accrue OID on this projected payment schedule using the constant yield method that applies to fixed payment debt instruments. H and r block active duty When a contingent payment differs from the projected fixed amount, the holders and issuers make adjustments to their OID accruals. H and r block active duty If the actual contingent payment is larger than expected, both the issuer and the holder increase their OID accruals. H and r block active duty If the actual contingent payment is smaller than expected, holders and issuers generally decrease their OID accruals. H and r block active duty Form 1099-OID. H and r block active duty   The amount shown on Form 1099-OID in box 1 you receive for a contingent payment debt instrument may not be the correct amount to include in income. H and r block active duty For example, the amount may not be correct if the contingent payment was different from the projected amount. H and r block active duty If the amount in box 1 is not correct, you must figure the OID to report on your return under the following rules. H and r block active duty For information on showing an OID adjustment on your tax return, see How To Report OID, earlier. H and r block active duty Figuring OID. H and r block active duty   To figure OID on a contingent payment debt instrument, you need to know the “comparable yield” and “projected payment schedule” of the debt instrument. H and r block active duty The issuer must make these available to you. H and r block active duty Comparable yield. H and r block active duty   The comparable yield generally is the yield at which the issuer would issue a fixed rate debt instrument with terms and conditions similar to those of the contingent payment debt instrument. H and r block active duty The comparable yield is determined as of the debt instrument's issue date. H and r block active duty Projected payment schedule. H and r block active duty   The projected payment schedule for a contingent payment debt instrument includes all fixed payments due under the instrument and a projected fixed amount for each contingent payment. H and r block active duty The projected payment schedule is created by the issuer as of the debt instrument's issue date. H and r block active duty It is used to determine the issuer's and holder's interest accruals and adjustments. H and r block active duty Steps for figuring OID. H and r block active duty   Figure the OID on a contingent payment debt instrument in two steps. H and r block active duty Figure the OID using the constant yield method (discussed earlier under Debt Instruments Issued After 1984 ) that applies to fixed payment debt instruments. H and r block active duty Use the comparable yield as the yield to maturity. H and r block active duty In general, use the projected payment schedule to determine the instrument's adjusted issue price at the beginning of each accrual period (other than the initial period). H and r block active duty Do not treat any amount payable as qualified stated interest. H and r block active duty Adjust the OID in (1) to account for actual contingent payments. H and r block active duty If the contingent payment is greater than the projected fixed amount, you have a positive adjustment. H and r block active duty If the contingent payment is less than the projected fixed amount, you have a negative adjustment. H and r block active duty Net positive adjustment. H and r block active duty   A net positive adjustment exists for a tax year when the total of any positive adjustments described in (2) above for the tax year is more than the total of any negative adjustments for the tax year. H and r block active duty Treat a net positive adjustment as additional OID for the tax year. H and r block active duty Net negative adjustment. H and r block active duty   A net negative adjustment exists for a tax year when the total of any negative adjustments described in (2) above for the tax year is more than the total of any positive adjustments for the tax year. H and r block active duty Use a net negative adjustment to offset OID on the debt instrument for the tax year. H and r block active duty If the net negative adjustment is more than the OID on the debt instrument for the tax year, you can claim the difference as an ordinary loss. H and r block active duty However, the amount you can claim as an ordinary loss is limited to the OID on the debt instrument you included in income in prior tax years. H and r block active duty You must carry forward any net negative adjustment that is more than the total OID for the tax year and prior tax years and treat it as a negative adjustment in the next tax year. H and r block active duty Basis adjustments. H and r block active duty   In general, increase your basis in a contingent payment debt instrument by the OID included in income. H and r block active duty Your basis, however, is not affected by any negative or positive adjustments. H and r block active duty Decrease your basis by any noncontingent payment received and the projected contingent payment scheduled to be received. H and r block active duty Treatment of gain or loss on sale or exchange. H and r block active duty   If you sell a contingent payment debt instrument at a gain, your gain is ordinary income (interest income), even if you hold the debt instrument as a capital asset. H and r block active duty If you sell a contingent payment debt instrument at a loss, your loss is an ordinary loss to the extent of your prior OID accruals on the debt instrument. H and r block active duty If the debt instrument is a capital asset, treat any loss that is more than your prior OID accruals as a capital loss. H and r block active duty See Regulations section 1. H and r block active duty 1275-4 for exceptions to these rules. H and r block active duty Premium, acquisition premium, and market discount. H and r block active duty   The rules for accruing premium, acquisition premium, and market discount do not apply to a contingent payment debt instrument. H and r block active duty See Regulations section 1. H and r block active duty 1275-4 to determine how to account for these items. H and r block active duty Inflation-Indexed Debt Instruments This discussion shows how you figure OID on certain inflation-indexed debt instruments issued after January 5, 1997. H and r block active duty An inflation-indexed debt instrument is generally a debt instrument on which the payments are adjusted for inflation and d