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Irs E File 2012

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Irs E File 2012

Irs e file 2012 19. Irs e file 2012   Ajustes Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: Deducción por Intereses sobre Préstamos de EstudiosDefinición de los Intereses sobre Préstamos de Estudios ¿Puede Reclamar la Deducción? ¿Cuánto Puede Deducir? ¿Cómo Calcular la Deducción? Deducción por Matrícula y Cuotas Escolares¿Puede Reclamar la Deducción? Gastos que Califican Estudiante que Reúne los Requisitos Quién Puede Reclamar los Gastos de un Dependiente Cuánto se Puede Deducir Gastos del Educador Introduction Este capítulo trata de ajustes relacionados con la educación que puede deducir al calcular el ingreso bruto ajustado. Irs e file 2012 Este capítulo incluye información sobre la deducción por intereses sobre préstamos de estudios, la deducción de matrículas y cuotas escolares y la deducción por gastos del educador. Irs e file 2012 Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Deducción por Intereses sobre Préstamos de Estudios Por lo general, los intereses personales que pague, salvo ciertos intereses hipotecarios, no son deducibles en la declaración de impuestos. Irs e file 2012 No obstante, si su ingreso bruto ajustado modificado (MAGI, por sus siglas en inglés) es menos de $75,000 ($155,000 si presenta una declaración conjunta), se permite una deducción especial por los intereses pagados sobre préstamos de estudios (también conocidos como préstamos educativos) utilizados para enseñanza superior. Irs e file 2012 Para la mayoría de los contribuyentes, el MAGI es el ingreso bruto ajustado en la declaración de impuestos federales sobre el ingreso antes de restar deducción alguna por intereses sobre préstamos de estudios. Irs e file 2012 Esta deducción puede reducir la cantidad de su ingreso sujeto a impuestos hasta un máximo de $2,500 en el año 2013. Irs e file 2012 La Tabla 19-1 resume características de la deducción por intereses sobre préstamos de estudios. Irs e file 2012 Tabla 19-1. Irs e file 2012 Resumen de la Deducción por Intereses sobre Préstamos de Estudios No se base únicamente en esta tabla. Irs e file 2012 Consulte el texto para más detalles. Irs e file 2012 Característica Descripción Beneficio máximo Puede reducir su ingreso tributable hasta un máximo de $2,500. Irs e file 2012 Requisitos para obtener un préstamo Su préstamo de estudios: •  tiene que haber sido obtenido sólo para pagar gastos de estudios calificados y   • no puede ser de un pariente ni puede haberse hecho conforme a un plan calificado provisto por su empleador. Irs e file 2012 Requisitos para estudiantes El estudiante tiene que: • ser usted, su cónyuge o su dependiente y   • estar matriculado por lo menos a tiempo parcial en un programa que lleve a obtener un título, certificación o cualquier otra credencial educacional en una institución educativa que reúne los requisitos. Irs e file 2012 Plazo de la deducción Puede deducir intereses pagados durante el período que quede del préstamo de estudios. Irs e file 2012 Eliminación gradual por fases La cantidad a deducir depende del nivel de ingresos. Irs e file 2012 Definición de los Intereses sobre Préstamos de Estudios Los “intereses sobre préstamos de estudios” son intereses que usted pagó durante el año sobre un préstamo de estudios calificado. Irs e file 2012 Incluyen tanto pagos de intereses obligatorios como pagos de intereses voluntarios. Irs e file 2012 Préstamo de estudios calificado Éste es un préstamo que se obtuvo únicamente para pagar gastos de estudios calificados (definidos más adelante) que fueran: Para usted, su cónyuge o una persona que fue dependiente de usted (según se define en el capítulo 3) cuando obtuvo el préstamo; Pagados o incurridos dentro de un plazo razonable antes o después de que obtuviera el préstamo y Para estudios provistos durante un período académico cuando un estudiante reúne los requisitos. Irs e file 2012 Los préstamos de las siguientes fuentes no son préstamos de estudios calificados: Un pariente. Irs e file 2012 Un plan calificado proporcionado por un empleador. Irs e file 2012 Excepciones. Irs e file 2012   Para propósitos de la deducción de intereses sobre un préstamo de estudios, las siguientes excepciones corresponden a las reglas generales para dependientes: Una persona puede ser su dependiente aunque usted mismo sea el dependiente de otro contribuyente. Irs e file 2012 Una persona puede ser su dependiente aunque dicha persona presente una declaración conjunta con un cónyuge. Irs e file 2012 Una persona puede ser su dependiente aunque dicha persona tuviera un ingreso bruto ese año que fuera igual o superior a la cantidad de exención para el año ($3,900 para el año 2013). Irs e file 2012 Plazo razonable. Irs e file 2012   Los gastos de estudios calificados se consideran pagados u ocasionados dentro de un plazo razonable, antes o después de obtener el préstamo, si se pagan con fondos de préstamos de estudios que son parte de un programa federal de préstamos de estudios postsecundarios. Irs e file 2012   Aun si no se pagan con fondos de dicho tipo de préstamo, los gastos se consideran pagados u ocasionados dentro de un plazo razonable si se reúnen los dos siguientes requisitos: Los gastos se relacionan con un período académico específico. Irs e file 2012 Los fondos del préstamo se desembolsan dentro de un período que comience 90 días antes del período académico y termine 90 días después del fin de dicho período. Irs e file 2012   Si ninguna de las situaciones indicadas anteriormente le corresponde, el plazo razonable se determina basándose en todos los hechos y circunstancias pertinentes. Irs e file 2012 Período académico. Irs e file 2012   Un período académico incluye un semestre, trimestre, un cuatrimestre del año escolar u otro período de estudios (tal como un curso escolar de verano) según lo determine de manera razonable una institución de enseñanza superior. Irs e file 2012 En el caso de una institución de enseñanza superior que no tenga períodos académicos, sino horas de crédito u horas de reloj, cada período de pago se puede considerar un período académico. Irs e file 2012 Estudiante que reúne los requisitos. Irs e file 2012   Es un estudiante que estaba matriculado por lo menos a medio tiempo en un programa para obtener una licenciatura, un certificado u otro título educativo reconocido. Irs e file 2012 Matriculado por lo menos a medio tiempo. Irs e file 2012   Un estudiante se considera que estaba matriculado por lo menos a medio tiempo si estaba tomando al menos la mitad de los cursos normales a tiempo completo de su programa de estudios. Irs e file 2012   Cada institución de enseñanza superior que reúna los requisitos establece lo que se considera la mitad de la carga académica habitual para ser estudiante a tiempo completo. Irs e file 2012 No obstante, este estándar establecido no puede ser inferior a cualquiera que haya establecido el Departamento de Educación de los Estados Unidos conforme a la Higher Education Act (Ley de Enseñanza Superior) de 1965. Irs e file 2012 Pariente. Irs e file 2012   No puede deducir intereses sobre un préstamo que obtenga de un pariente. Irs e file 2012 Los parientes incluyen: Su cónyuge; Sus hermanos y hermanas; Sus medios hermanos y medias hermanas; Sus antecesores (padres, abuelos, etc. Irs e file 2012 ); Sus descendientes en línea directa (hijos, nietos, etc. Irs e file 2012 ) y Ciertas sociedades anónimas, sociedades colectivas, fideicomisos y organizaciones exentas de impuestos. Irs e file 2012 Plan calificado proporcionado por un empleador. Irs e file 2012   No puede deducir intereses sobre un préstamo conforme a un plan calificado proporcionado por un empleador o bajo un contrato comprado conforme a tal plan. Irs e file 2012 Gastos de Estudios Calificados Para propósitos de la deducción por intereses sobre préstamos de estudios, estos gastos son el total del costo de asistir a una institución de enseñanza superior que reúna los requisitos, incluyendo instituciones para estudios de posgrado. Irs e file 2012 Incluyen cantidades pagadas por los siguientes conceptos: Matrícula y cuotas escolares. Irs e file 2012 Alojamiento y comida. Irs e file 2012 Libros, materiales y equipo. Irs e file 2012 Otros gastos necesarios (tales como los de transporte). Irs e file 2012 Los gastos de alojamiento y comida reúnen los requisitos sólo en la medida en que no sobrepasen las siguientes cantidades: La asignación para alojamiento y comida, según lo determine la institución de enseñanza superior correspondiente, que se incluyó en los gastos de asistencia a dicha institución (para propósitos de ayuda financiera federal) durante un período académico específico y alojamiento del estudiante, o Si es mayor, la cantidad exacta cobrada si el estudiante vive en alojamiento que sea propiedad de la institución de enseñanza superior que reúna los requisitos o sea operado por la misma. Irs e file 2012 Institución de enseñanza superior que reúne los requisitos. Irs e file 2012   Una institución de enseñanza superior que reúne los requisitos es todo colegio universitario, universidad, escuelas de enseñanza técnica u otra institución de enseñanza superior todas con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Irs e file 2012 Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Irs e file 2012   Determinadas instituciones de enseñanza superior ubicadas fuera de los Estados Unidos participan también en los programas de asistencia financiera al estudiante (Federal Student Aid (FSA, por sus siglas en inglés)) del Departamento de Educación de los Estados Unidos. Irs e file 2012   Para propósitos de la deducción por intereses sobre préstamos de estudios, una institución de enseñanza superior que reúne los requisitos incluye también una institución que administre un programa de estudiantes practicantes o de residencia para recibir un título universitario o un certificado de una institución de enseñanza superior, un hospital o un centro de atención médica que ofrezca capacitación de posgrado. Irs e file 2012   Una institución de enseñanza superior tiene que reunir los criterios establecidos en el párrafo anterior solamente durante el (los) período(s) académico(s) para el (los) cual(es) se incurrió el préstamo de estudios. Irs e file 2012 La posibilidad de deducir los intereses sobre el préstamo no se ve afectada si la institución deja de reunir los requisitos más tarde. Irs e file 2012    La institución de enseñanza superior debe poder indicarle si la misma reúne los requisitos. Irs e file 2012 Ajustes tributarios a gastos de estudios calificados. Irs e file 2012   Tiene que reducir sus gastos de estudios calificados por ciertos artículos exentos de impuestos (tales como la parte exenta de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional)). Irs e file 2012 Vea el capítulo 4 de la Publicación 970, en inglés, para más detalles. Irs e file 2012 Incluya estas Partidas como Intereses Además de los intereses simples sobre el préstamo, ciertos costos originarios del préstamo, intereses capitalizados, intereses sobre líneas de crédito rotativas e intereses sobre préstamos de estudios refinanciados pueden ser intereses sobre préstamos de estudios si se reúnen todos los demás requisitos. Irs e file 2012 Costo originario del préstamo. Irs e file 2012   Normalmente, esto es un cargo que el prestamista cobra solamente una vez, al hacer un préstamo. Irs e file 2012 Para ser deducible como intereses, dicho cargo tiene que ser por el uso de dinero en vez de bienes o servicios (como cargos por compromisos o costos de tramitación) proporcionados por el prestamista. Irs e file 2012 Un costo originario del préstamo tratado como intereses se acumula a lo largo del plazo del préstamo. Irs e file 2012 Intereses capitalizados. Irs e file 2012    Son intereses por pagar sobre un préstamo de estudios que el prestamista añade al saldo pendiente del capital del préstamo. Irs e file 2012 Intereses sobre líneas de crédito rotativas. Irs e file 2012   Estos intereses, los cuales incluyen interés sobre deudas de tarjetas de crédito, es interés sobre préstamos de estudios si el prestatario usa la línea de crédito (tarjeta de crédito) sólo para pagar gastos de estudios calificados. Irs e file 2012 Vea Gastos de Estudios Calificados , anteriormente. Irs e file 2012 Intereses sobre préstamos de estudios refinanciados. Irs e file 2012   Incluyen intereses sobre lo siguiente: Préstamos consolidados —préstamos que se usan para refinanciar más de un préstamo de estudios del mismo prestatario y Préstamos conjuntos —dos o más préstamos del mismo prestatario que son tratados como un solo préstamo tanto por el prestamista como por el prestatario. Irs e file 2012 Si refinancia un préstamo de estudios calificado por más del préstamo original y usa la cantidad adicional para algún propósito que no sea gastos de estudios calificados, no puede deducir los intereses pagados sobre el préstamo refinanciado. Irs e file 2012 Pagos de intereses voluntarios. Irs e file 2012   Son pagos hechos sobre un préstamo de estudios calificado durante un período en el que los pagos de intereses no son obligatorios, por ejemplo, si al prestatario se le ha concedido un aplazamiento o si todavía no han empezado los reintegros del préstamo. Irs e file 2012 No Incluya estas Partidas como Intereses No puede reclamar una deducción de intereses sobre préstamos de estudios por: Intereses que pagó sobre un préstamo si, según las condiciones del mismo, usted no está obligado legalmente a hacer pagos de intereses. Irs e file 2012 Costos originarios del préstamo pagados por propiedad o servicios proporcionados por el prestamista, tales como cargos por compromiso o costos de tramitación. Irs e file 2012 Intereses que pagó sobre un préstamo en la medida en que los pagos hayan sido hechos a través de su participación en el National Health Service Corps Loan Repayment Program (Programa para Reintegros de Préstamos del Cuerpo Nacional de Servicios de Salud), conocido también como el “ NHSC Loan Repayment Program ” (Programa para Reintegros de Préstamos del NHSC) o a través de otros programas de asistencia para el reintegro de préstamos. Irs e file 2012 Para más información, vea Student Loan Repayment Assistance (Asistencia para el reintegro de préstamos de estudios) en el capítulo 5 de la Publicación 970, en inglés. Irs e file 2012 ¿Puede Reclamar la Deducción? Normalmente, puede reclamar la deducción si se cumplen todos los requisitos siguientes: Su estado civil para efectos de la declaración es cualquier estado civil excepto casado que presenta su declaración por separado. Irs e file 2012 Nadie más reclama una exención por usted en su declaración de impuestos. Irs e file 2012 Está obligado por ley a pagar intereses sobre un préstamo de estudios calificado. Irs e file 2012 Usted pagó intereses sobre un préstamo de estudios calificado. Irs e file 2012 Intereses pagados por otros. Irs e file 2012   Si usted es la persona legalmente obligada a pagar intereses y otra persona los paga por usted, a usted se le trata como si hubiese recibido el pago de la otra persona y, a su vez, hubiese pagado los intereses. Irs e file 2012 Vea el capítulo 4 de la Publicación 970, en inglés, para más información. Irs e file 2012 No se Permite Beneficio Doble No puede deducir como intereses sobre un préstamo de estudios una cantidad que sea deducible conforme a alguna otra disposición de la ley tributaria (por ejemplo, intereses hipotecarios). Irs e file 2012 ¿Cuánto Puede Deducir? Su deducción por intereses sobre préstamos de estudios para el año 2013 es normalmente la cantidad que sea menor entre: $2,500 o Los intereses que usted pagó en el año 2013. Irs e file 2012 Sin embargo, la cantidad determinada anteriormente se reduce paulatinamente si su MAGI está entre $60,000 y $75,000 ($125,000 y $155,000 si presenta una declaración conjunta). Irs e file 2012 No puede tomar una deducción por intereses sobre préstamos de estudios si su MAGI es $75,000 o más ($155,000 o más si presenta una declaración conjunta). Irs e file 2012 Para más detalles sobre cómo calcular su MAGI, vea el capítulo 4 de la Publicación 970, en inglés. Irs e file 2012 ¿Cómo Calcular la Deducción? Para calcular la deducción, se suele usar la Student Loan Interest Deduction Worksheet (Hoja de trabajo de la deducción de intereses sobre préstamos de estudios), de las instrucciones del Formulario 1040 o del Formulario 1040A. Irs e file 2012 No obstante, si presenta el Formulario 2555, 2555-EZ o 4563, o si excluye ingresos de fuentes dentro de Puerto Rico, tiene que llenar la Hoja de Trabajo 4-1 del capítulo 4 de la Publicación 970, en inglés. Irs e file 2012 Para ayudarle a calcular la deducción por intereses sobre préstamos de estudios, debe recibir el Formulario 1098-E, Student Loan Interest Statement (Declaración de intereses sobre préstamos de estudios), en inglés. Irs e file 2012 Generalmente, una institución (como un banco o una agencia gubernamental) que recibió pagos de intereses de $600 o más durante el año 2013 sobre uno o más préstamos de estudios calificados tiene que enviarle el Formulario 1098-E (o documento sustitutivo aceptable) a cada prestatario a más tardar el 31 de enero del año 2014. Irs e file 2012 Para los préstamos de estudios calificados que se obtuvieron antes del 1 de septiembre de 2004, la institución está obligada a anotar en el Formulario 1098-E solamente los pagos de intereses establecidos. Irs e file 2012 Puede ser que otros pagos de intereses, tales como ciertos costos originarios del préstamo e intereses capitalizados, no aparezcan en el formulario que usted reciba. Irs e file 2012 No obstante, si paga intereses calificados que no se incluyen en el Formulario 1098-E, también puede deducir esas cantidades. Irs e file 2012 Para información sobre cómo dividir pagos de intereses y pagos de capital, vea el capítulo 4 de la Publicación 970, en inglés. Irs e file 2012 Para reclamar la deducción, anote la cantidad permisible en la línea 33 del Formulario 1040 o la línea 18 del Formulario 1040A. Irs e file 2012 Deducción por Matrícula y Cuotas Escolares Quizás pueda deducir los gastos de estudios calificados que haya pagado durante el año para usted, su cónyuge o dependiente(s). Irs e file 2012 No puede reclamar esta deducción si su estado civil para efectos de la declaración es casado que presenta la declaración por separado o si otra persona puede reclamar una exención por usted como dependiente en la declaración de impuestos de él o ella. Irs e file 2012 Los gastos calificados tienen que ser por educación superior, tal como se explica más adelante en Gastos que Califican . Irs e file 2012 La deducción por matrícula y cuotas escolares puede reducir la cantidad de sus ingresos sujetos a impuesto por hasta $4,000. Irs e file 2012 La Tabla 19-2 resume las características de la deducción por matrícula y cuotas escolares. Irs e file 2012 Quizás pueda tomar un crédito por sus gastos de estudios en lugar de una deducción. Irs e file 2012 Puede escoger la opción que le proporcione una cantidad de impuesto menor. Irs e file 2012 Vea el capítulo 35, Créditos Tributarios por Estudios , para saber detalles sobre los créditos. Irs e file 2012 ¿Puede Reclamar la Deducción? Las siguientes reglas le pueden ayudar a determinar si puede reclamar la deducción por matrícula y cuotas escolares. Irs e file 2012 Quién Puede Reclamar la Deducción La deducción por matrícula y gastos de estudios normalmente se puede reclamar si usted cumple los tres siguientes requisitos: Pagó gastos de educación superior calificados en 2013 para los períodos académicos que comienzan en 2013 y los que comienzan en los primeros tres meses de 2014. Irs e file 2012 Pagó los gastos de estudios de un estudiante que reúne los requisitos. Irs e file 2012 El estudiante que cumple los requisitos es usted mismo, su cónyuge o dependiente por el cual reclama una exención (que se define en el capítulo 3) en su declaración de impuestos. Irs e file 2012 Los gastos de estudios calificados se definen bajo Gastos que Califican . Irs e file 2012 La definición de “estudiantes que reúnen los requisitos” se puede ver más adelante bajo Estudiante que Reúne los Requisitos . Irs e file 2012 Quién No Puede Reclamar la Deducción No puede reclamar la deducción por matrícula y cuotas escolares si le corresponde cualquiera de las siguientes situaciones: Su estado civil para efectos de la declaración de impuestos es casado que presenta por separado. Irs e file 2012 Otra persona puede reclamar una exención por usted en la declaración de impuestos de él o ella. Irs e file 2012 Usted no puede tomar la deducción aun si la otra persona de hecho no reclama la exención. Irs e file 2012 Su MAGI es mayor que $80,000 ($160,000 si presenta una declaración conjunta). Irs e file 2012 Usted (o su cónyuge) era un extranjero no residente en cualquier momento durante el año 2013 y dicho extranjero no residente no optó por ser tratado como extranjero residente para propósitos tributarios. Irs e file 2012 Puede leer más información sobre extranjeros no residentes en la Publicación 519, U. Irs e file 2012 S. Irs e file 2012 Tax Guide for Aliens (Guía tributaria para extranjeros), en inglés. Irs e file 2012 Usted o cualquier otra persona puede reclamar un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje en el año 2013 en lo que concierne a los gastos del estudiante por el cual se pagaron gastos de estudios calificados. Irs e file 2012 No obstante, el recibir un crédito por parte de su estado no lo descalifica de reclamar una deducción por matrícula y cuotas. Irs e file 2012 Tabla 19-2. Irs e file 2012 Resumen de las Características de la Deducción por Matrícula y Cuotas Escolares No se base únicamente en lo que aparece en esta tabla. Irs e file 2012 Consulte el texto de este capítulo para más detalles. Irs e file 2012 Pregunta Respuesta ¿Cuál es la cantidad máxima del beneficio? Usted puede reducir la cantidad de sus ingresos sujetos a impuestos por hasta $4,000. Irs e file 2012 ¿Dónde se toma la deducción? Se toma como ajuste a los ingresos en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A. Irs e file 2012 ¿Para quién tienen que ser pagados los gastos? Un estudiante que está matriculado en una institución de enseñanza superior que reúne los requisitos quien es: usted, su cónyuge o su dependiente por el cual reclama una exención. Irs e file 2012 ¿Qué matrícula y cuotas escolares son deducibles? La matrícula y cuotas escolares requeridas para matricularse o para asistir a una institución de enseñanza superior que reúne los requisitos, pero que no incluyen gastos personales, de manutención ni gastos de familia, tales como alojamiento y comida. Irs e file 2012 Gastos que Califican La deducción por matrícula y cuotas escolares se basa en los gastos de estudios calificados que paga por usted mismo, su cónyuge o por un dependiente por el cual usted reclama una exención en su declaración de impuestos. Irs e file 2012 La deducción normalmente se permite por gastos de estudios calificados que fueron pagados en el año 2013 relacionados con la matriculación en una institución de educación superior durante el año 2013 o por un período académico (que se definió anteriormente bajo Deducción por Intereses sobre Préstamos de Estudios ) comenzando en 2013 o en los primeros 3 meses de 2014. Irs e file 2012 Pagos hechos con fondos de un préstamo. Irs e file 2012   Puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que pagó con los fondos de un préstamo. Irs e file 2012 Utilice los gastos para calcular la deducción para el año en que se pagaron los gastos, no para el año en que se liquidó el préstamo. Irs e file 2012 Trate los pagos del préstamo que fueron enviados directamente a la institución de educación como si hubieran sido pagados en la fecha en que dicha institución abona la cuenta del estudiante. Irs e file 2012 Estudiante que se da de baja de su(s) clase(s). Irs e file 2012   Usted puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que no se reembolsan cuando un estudiante se da de baja (retira) de su(s) clase(s). Irs e file 2012 Gastos de Estudios Calificados Para propósitos de la deducción por matrícula y cuotas escolares, los gastos de estudios calificados son la matrícula y ciertos gastos relacionados que son requisitos para la matriculación o asistencia en una institución de educación superior que reúne los requisitos. Irs e file 2012 Institución de educación que reúne los requisitos. Irs e file 2012   Una “institución de educación superior que reúne los requisitos” es cualquier colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Irs e file 2012 Incluye prácticamente a casi todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Irs e file 2012 La institución de educación superior deberá poder indicarle si la misma reúne los requisitos. Irs e file 2012   Ciertas instituciones de educación ubicadas fuera de los Estados Unidos participan también en los programas de FSA del Departamento de Educación de los Estados Unidos. Irs e file 2012 Período académico. Irs e file 2012   Un período académico abarca un semestre, trimestre, un cuatrimestre o cualquier otro período de estudios según lo determine de manera razonable una institución de educación que reúne los requisitos. Irs e file 2012 Si una institución de educación que reúne los requisitos no tiene períodos académicos sino horas de crédito, cada período de pago se puede considerar como un período académico. Irs e file 2012 Gastos relacionados. Irs e file 2012   Las cuotas correspondientes a las actividades escolares y los gastos incurridos por los textos, útiles y equipo escolares se incluyen en los gastos de estudios calificados únicamente si las cuotas y gastos tienen que ser pagados a la institución como requisito de la matriculación o asistencia en dicha institución. Irs e file 2012 Gastos pagados por adelantado. Irs e file 2012   Gastos de estudios calificados pagados en el año 2013 para un período académico que comienza en los primeros tres meses de 2014, sólo se pueden utilizar para calcular la deducción por matrícula y cuotas escolares de 2013. Irs e file 2012 Vea Período académico, anteriormente. Irs e file 2012 Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo de la deducción por matrícula y cuotas escolares sólo para 2013, únicamente si reúne todos los otros requisitos. Irs e file 2012 No puede utilizar cantidad alguna que pagó en 2012 ó 2014 para calcular los gastos de estudios calificados que utiliza para el cálculo de su deducción por matrícula y cuotas escolares de 2013. Irs e file 2012 No Se Permite Beneficio Doble No se le permite deducir lo siguiente: Los gastos de estudios calificados que usted deduce conforme a cualquier otra disposición de la ley, como, por ejemplo, un gasto de negocios. Irs e file 2012 Los gastos de estudios calificados de un estudiante en su declaración de impuestos si usted o cualquier otra persona reclama un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje por el mismo estudiante en el mismo año. Irs e file 2012 Los gastos de estudios calificados que se utilizaron para calcular la parte libre de impuestos de una distribución proveniente de una cuenta Coverdell de ahorros para la educación (ESA, por sus siglas en inglés) o de un programa de matrículas calificado (QTP, por sus siglas en inglés). Irs e file 2012 En el caso de un QTP, esto corresponde sólo a la cantidad de ganancias exentas de impuesto que fueron distribuidas, no a la recuperación de las contribuciones hechas al programa. Irs e file 2012 Vea los temas titulados Figuring the Taxable Portion of a Distribution (Cálculo de la parte sujeta a impuesto de una distribución) del capítulo 7 (Coverdell Education Savings Account (ESA) (Cuenta Coverdell de ahorros para la educación (ESA)) y del capítulo 8 (Qualified Tuition Progam (QTP)) (Programa de matrícula calificado (QTP)), de la Publicación 970, en inglés. Irs e file 2012 Los gastos de estudios calificados que han sido pagados con intereses exentos de impuestos provenientes de un bono de ahorros de los Estados Unidos (Formulario 8815, en inglés). Irs e file 2012 Vea Figuring the Tax-Free Amount (Cálculo de la cantidad libre de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Irs e file 2012 Los gastos de estudios calificados que han sido pagados con ayuda económica para los estudios que estén exentos de impuestos, tales como becas de estudios, subvenciones o ayuda económica para los estudios provista por el empleador. Irs e file 2012 Vea a continuación el tema titulado Ajustes a los gastos de estudios calificados. Irs e file 2012 Ajustes a los gastos de estudios calificados. Irs e file 2012   Para cada estudiante, se tienen que reducir los gastos de estudios calificados pagados por o en nombre de dicho estudiante bajo las siguientes reglas. Irs e file 2012 El resultado es el ajuste a los gastos de estudios calificados por cada estudiante. Irs e file 2012 Ayuda económica para los estudios exenta de impuestos. Irs e file 2012   Por la ayuda económica para los estudios exenta de impuestos que recibió en 2013, tiene que reducir los gastos de estudios calificados para cada período académico por la cantidad de la ayuda económica para los estudios exenta de impuestos de dicho período. Irs e file 2012 Vea Período académico, anteriormente. Irs e file 2012   Dicha asistencia incluye: La parte libre de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional), incluidas las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970); La parte libre de impuestos de toda ayuda económica para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970); Ayuda económica para estudios ofrecida a veteranos (vea el capítulo 1 de la Publicación 970) y Todo otro pago exento de impuestos (que no sean regalos o herencias) que se recibe en concepto de ayuda para estudios. Irs e file 2012   Por lo general, todas las becas de estudios o becas de investigación (becas de desarrollo profesional) son tratadas como una ayuda económica para los estudios exenta de impuestos. Irs e file 2012 Sin embargo, una beca de estudios o beca de investigación (becas de desarrollo profesional) no será tratada como asistencia exenta de impuestos al punto de que es incluida como ingreso bruto (si tiene que presentar una declaración de impuestos) para el año que reciba la beca de estudios o para investigación (becas de desarrollo profesional) si uno de estos dos puntos aplica: La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de educación calificados), de la Publicación 970, en inglés. Irs e file 2012 La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Irs e file 2012    Podría aumentar el valor combinado de la deducción por matrícula y cuotas escolares y cierta ayuda económica para los estudios si incluye alguna parte o toda la ayuda económica para los estudios en sus ingresos en el año en que recibió dicha ayuda. Irs e file 2012 Para detalles, vea Adjustments to Qualified Education Expenses (Ajustes a los gastos de estudios calificados), en el capítulo 6 de la Publicación 970, en inglés. Irs e file 2012   Cierta ayuda económica para los estudios exenta de impuestos recibida después de 2013 podría ser considerada como un reembolso de gastos de estudios calificados que se pagó en 2013. Irs e file 2012 La ayuda económica para los estudios exenta de impuestos incluye toda ayuda económica para los estudios exenta de impuestos que usted o cualquier otra persona ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matriculación en una institución educativa calificada durante 2013). Irs e file 2012   Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Irs e file 2012 Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 y después de que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos, más adelante. Irs e file 2012 Reembolsos. Irs e file 2012   Un reembolso de gastos de estudios calificados puede reducir los ajustes a los gastos de estudios calificados por el año tributable o puede requerir que reintegre parte o el total del reembolso en su ingreso bruto para el año en que recibe el reembolso. Irs e file 2012 Vea el capítulo 6 de la Publicación 970 para obtener más información. Irs e file 2012 Alguna ayuda económica para los estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Irs e file 2012 Vea Ayuda económica para los estudios exenta de impuestos, anteriormente. Irs e file 2012 Reembolsos recibidos en 2013. Irs e file 2012   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y restando todos los reembolsos de esos gastos recibidos de la institución educativa que reúne los requisitos durante 2013. Irs e file 2012 Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Irs e file 2012   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido antes de presentar su declaración de impuestos sobre los ingresos de 2013, reduzca la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Irs e file 2012 Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Irs e file 2012   Si recibe un reembolso después de 2013 por gastos de estudios calificados pagados en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, puede ser que tenga que incluir parte o todo el reembolso en su ingreso bruto del año en que recibió el reembolso. Irs e file 2012 Vea el capítulo 6 de la Publicación 970, en inglés, para más información. Irs e file 2012 Coordinación con cuentas Coverdell de ahorros para la educación y programas calificados de matrícula. Irs e file 2012   Debe reducir sus gastos de estudios calificados por los gastos de estudios calificados utilizados para calcular la exclusión del ingreso bruto de (a) los intereses recibidos bajo un programa de bonos de ahorro educativos o (b) cualquier distribución desde una cuenta Coverdell de ahorros para la educación o programa calificado de matrícula (QTP, por sus siglas en inglés). Irs e file 2012 Para un programa QTP, esto se aplica solamente a la cantidad exenta de impuestos que fueron distribuidos, no a la recuperación de contribuciones al programa. Irs e file 2012 Cantidades que no reducen los gastos de estudios calificados. Irs e file 2012   No reduzca los gastos de estudios calificados por las cantidades pagadas con fondos que el estudiante ha recibido por concepto de: Pagos por prestar servicios, como salarios, Un préstamo, Un regalo, Una herencia o Un retiro de fondos de una cuenta de ahorros personal del estudiante. Irs e file 2012   No reduzca los gastos de estudios calificados por cantidades de becas de estudios o becas de investigación (becas de desarrollo profesional) que se declaran como ingresos en la declaración de impuestos del estudiante en las siguientes circunstancias: El uso de dinero se restringe, por los términos de la beca de estudios o beca de investigación (becas de desarrollo profesional), a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados. Irs e file 2012 El uso de dinero no se restringe. Irs e file 2012 Gastos que no Califican Los gastos de estudios calificados no incluyen cantidades pagadas en concepto de: Seguros; Gastos médicos (incluidas las cuotas del seguro médico escolar ofrecido por la institución); Alojamiento y comida; Transporte o Gastos personales, de manutención o relacionados a la familia que sean semejantes. Irs e file 2012 Esto corresponde aun si se tienen que pagar dichas cantidades a la institución como requisito de matriculación o asistencia. Irs e file 2012 Deportes, juegos, pasatiempos y cursos que no ofrecen créditos académicos. Irs e file 2012   Normalmente, los gastos de estudios calificados no incluyen gastos que corresponden a un curso de enseñanza u otro curso educativo en que se desempeñen deportes, juegos, pasatiempos o un curso que no ofrece créditos académicos. Irs e file 2012 No obstante, si el curso de enseñanza u otro curso educativo es parte del programa de estudios del estudiante para obtener una licenciatura u otro título educativo reconocido, los gastos entonces sí pueden calificar. Irs e file 2012 Cuotas íntegras o en conjunto. Irs e file 2012   Algunas instituciones de educación superior que reúnen los requisitos combinan o consolidan todas sus cuotas para un período académico en una sola cantidad. Irs e file 2012 Si no recibe, o no tiene acceso a un estado de cuentas o asignación que muestra cuánto pagó usted en concepto de gastos de estudios calificados y cuánto pagó en concepto de gastos personales, como los que se mencionaron anteriormente, comuníquese con la institución. Irs e file 2012 La institución tiene la obligación de redactar ese estado de cuentas o asignación y de proveerle a usted información sobre la cantidad que usted pagó (o que se le facturó) por los gastos de estudios calificados en el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Irs e file 2012 Vea el tema Cómo se Calcula la Deducción , más adelante, para mayor información sobre el Formulario 1098-T. Irs e file 2012 Estudiante que Reúne los Requisitos Para propósitos de la deducción por matrícula y cuotas escolares, un “estudiante que reúne los requisitos” es aquél que está matriculado en uno o más cursos en una institución de educación superior que reúne los requisitos (que se definió anteriormente). Irs e file 2012 Quién Puede Reclamar los Gastos de un Dependiente Para poder reclamar la deducción por matrícula y cuotas escolares de un dependiente, usted tiene, normalmente, que: Haber pagado los gastos y Reclamar una exención de dependiente por el estudiante. Irs e file 2012 La Tabla 19-3 resume quién puede reclamar la deducción. Irs e file 2012 Cuánto se Puede Deducir La cantidad máxima por concepto de matrícula y cuotas escolares para 2013 es $4,000, $2,000 o $0, dependiendo de la cantidad de su MAGI. Irs e file 2012 Para detalles sobre el cálculo de su MAGI, vea el capítulo 6 de la Publicación 970. Irs e file 2012 Cómo se Calcula la Deducción Calcule la deducción utilizando el Formulario 8917, Tuition and Fees Deduction (Deducción por matrícula y cuotas), en inglés. Irs e file 2012 Para ayudarle a calcular su deducción por matrícula y cuotas escolares, debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Irs e file 2012 Por lo general, una institución de educación superior que reúne los requisitos (como un colegio universitario o universidad) tiene que enviarle el Formulario 1098-T (o una declaración sustitutiva similar y aceptable) a cada estudiante matriculado para el 31 de enero de 2014. Irs e file 2012 Para reclamar la deducción, anote la cantidad permitida en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A, y adjunte el Formulario 8917 que ha completado debidamente. Irs e file 2012 Tabla 19-3. Irs e file 2012 Quién Puede Reclamar los Gastos de un Dependiente No se base únicamente en lo que aparece en esta tabla. Irs e file 2012 Consulte Who can claim a Dependent's Expenses (Quién puede reclamar los gastos de un dependiente), en el capítulo 6 de la Publicación 970, en inglés. Irs e file 2012 SI su dependiente es un estudiante que reúne los requisitos y usted . Irs e file 2012 . Irs e file 2012 . Irs e file 2012 Y. Irs e file 2012 . Irs e file 2012 . Irs e file 2012 ENTONCES. Irs e file 2012 . Irs e file 2012 . Irs e file 2012 reclama una exención por su dependiente usted paga todos los gastos de estudios calificados de su dependiente sólo usted puede deducir los gastos de estudios calificados que usted pagó. Irs e file 2012 Su dependiente no puede tomar la deducción. Irs e file 2012 reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Irs e file 2012 no reclama una exención por su dependiente usted pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Irs e file 2012 no reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Irs e file 2012 Gastos del Educador Si usted fue un educador que reúne los requisitos en el año 2013, puede deducir en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A, hasta $250 por concepto de gastos calificados que usted pagó en 2013. Irs e file 2012 Si usted y su cónyuge están presentando una declaración de impuestos conjunta y si ambos de ustedes son educadores que reúnen los requisitos, la cantidad máxima que pueden deducir es $500. Irs e file 2012 No obstante eso, ningún cónyuge puede deducir más de $250 en gastos calificados que él o ella ha pagado en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A. Irs e file 2012 Usted quizás pueda deducir gastos que son mayores del límite de $250 (o $500) en la línea 21 del Anexo A (Formulario 1040). Irs e file 2012 Educador que reúne los requisitos. Irs e file 2012   Un “educador que reúne los requisitos” es un maestro de primaria, instructor, consejero, director o ayudante, de kínder (jardín de infancia) hasta doceavo grado, que ha trabajado por lo menos 900 horas durante el año escolar. Irs e file 2012 Gastos calificados. Irs e file 2012   En los gastos calificados se incluyen los gastos ordinarios (normales) y necesarios que se han pagado por libros, útiles, equipo (incluyendo equipo, programas y servicios para la computadora) y otros suministros y materiales que se utilizan en el aula. Irs e file 2012 Un “gasto ordinario” es aquél que es común y aceptado en el campo educativo. Irs e file 2012 Un “gasto necesario” es uno que es útil y apropiado en el desempeño de su profesión de educador. Irs e file 2012 Un gasto no tiene que ser obligatorio para considerarse necesario. Irs e file 2012   Los gastos calificados no incluyen los gastos por enseñanza impartida en el hogar ni por artículos para cursos de salud o de educación física que no se usan en el desempeño del deporte. Irs e file 2012   Usted tiene que restar de sus gastos calificados las siguientes cantidades: Intereses de bonos de ahorros de los Estados Unidos de la serie EE y de la serie I que pueden excluirse de los ingresos y que provienen del Formulario 8815, Exclusion of Interest From Series EE and I U. Irs e file 2012 S. Irs e file 2012 Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de bonos de ahorros estadounidenses de las series EE e I emitidos después de 1989), en inglés. Irs e file 2012 Vea el tema titulado Figuring the Tax-Free Amount (Cálculo de la cantidad exenta de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Irs e file 2012 Distribuciones o ganancias provenientes de un programa de matrícula calificado que no están sujetas a impuestos. Irs e file 2012 Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 8 de la Publicación 970. Irs e file 2012 Una distribución de ganancias no sujeta a impuestos proveniente de una cuenta Coverdell de ahorros para la educación. Irs e file 2012 Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 7 de la Publicación 970. Irs e file 2012 Todo reembolso de dichos gastos que haya recibido y del cual no se le haya informado en el recuadro 1 del Formulario W-2. Irs e file 2012 Prev  Up  Next   Home   More Online Publications
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The Irs E File 2012

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