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Tax Form For Students

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Tax Form For Students

Tax form for students Index Symbols 1231 property sale, Sale of property interest. Tax form for students 401(k) plans, Elective Deferrals Excess contributions, Excess Contributions 403(b) plans, Elective Deferrals Limit for, Limit for tax-sheltered annuities. Tax form for students 457 plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under section 457 plans. Tax form for students 501(c)(18)(D) plans, Elective Deferrals Contributions, Section 501(c)(18)(D) contributions. Tax form for students 501(c)(3) organizations, Student loans. Tax form for students 529 program, Qualified tuition program (QTP). Tax form for students 83(b) election, How to make the choice. Tax form for students A Academic health centers Meals and lodging when teaching and research organization, Academic health center. Tax form for students Accelerated death benefits, Accelerated Death Benefits Accident insurance, Accident or Health Plan Accidental death benefits, Accidental death benefits. Tax form for students Accrual method taxpayers, Prepaid income. Tax form for students Accrued leave payment At time of retirement or resignation, Accrued leave payment. Tax form for students Disability retirement, Accrued leave payment. Tax form for students Activity not for profit, Activity not for profit. Tax form for students Adoption Employer assistance, Adoption Assistance Advance commissions, Miscellaneous Compensation Aircraft, Flights on employer-provided aircraft. Tax form for students Airlines No-additional-cost services, No-Additional-Cost Services Valuation of flights on employer-provided aircraft, Flights on employer-provided aircraft. Tax form for students Alaska Permanent Fund dividend, Alaska Permanent Fund dividend. Tax form for students Alien status, waiver of, Waiver of alien status. Tax form for students Aliens Nonresident, Nonresident aliens. Tax form for students Alimony, Alimony. Tax form for students Alternative minimum tax (AMT) Recoveries, refiguring of, Subject to alternative minimum tax. Tax form for students Stock options, Alternative minimum tax (AMT). Tax form for students Annuities Charitable gift, Charitable gift annuities. Tax form for students Railroad retirement, Railroad retirement annuities. Tax form for students Tax-sheltered, Limit for tax-sheltered annuities. Tax form for students Archer MSAs, Archer MSA contributions. Tax form for students , Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Tax form for students Armed forces, Military Combat zone bonus, Veterans' benefits. Tax form for students Disability, Disability. Tax form for students Disability pensions, Military and Government Disability Pensions Health professions scholarship, Tuition Reduction Military action as cause of disability injuries, Terrorist attack or military action. Tax form for students Qualified reservist distribution, Qualified reservist distribution (QRD). Tax form for students Rehabilitative program payments, Veterans' benefits. Tax form for students Retirement pay, Military retirement pay. Tax form for students Veterans benefits, Veterans' benefits. Tax form for students Assistance (see Tax help) Athletic facilities, employer-provided, Athletic Facilities Automobile (see Vehicle, employer-provided) Awards (see Damages from lawsuits) B Babysitting, Babysitting. Tax form for students Back pay, award for, Back pay awards. Tax form for students Backup withholding Barter exchange transactions, Backup withholding. Tax form for students Bankruptcy Canceled debt not deemed to be income, Excluded debt. Tax form for students Barter income, Bartering Below-market loans, Below-market loans. Tax form for students Bequest for services, Bequest for services. Tax form for students Bicycle, Transportation Fringe benefit, Qualified bicycle commuting. Tax form for students Black lung benefit payments, Black lung benefit payments. Tax form for students Bonuses, Bonuses and awards. Tax form for students , Employee awards or bonuses. Tax form for students Breach of contract Damages as income, Court awards and damages. Tax form for students Bribes, Bribes. Tax form for students Business expenses Reimbursements, Allowances and reimbursements. Tax form for students Business income, Business and Investment Income, More information. Tax form for students C Cafeteria plans, Cafeteria plans. Tax form for students Campaign contributions, Campaign contributions. Tax form for students Campus lodging, Qualified campus lodging. Tax form for students , Moving Expense Reimbursements Cancellation of debt, Canceled Debts Cancellation of sales contracts, Canceled sales contract. Tax form for students Capital gains Recoveries, Capital gains. Tax form for students , Capital gains. Tax form for students Capital gains or losses Employee stock option plans (ESOPs), Option granted at a discount. Tax form for students Incentive stock options (ISOs), Incentive stock options (ISOs). Tax form for students Sale of personal property, Sale of personal items. Tax form for students Car (see Vehicle, employer-provided) Car pools, Car pools. Tax form for students Cash or deferred arrangements (CODAs), Elective Deferrals Cash rebates, Cash rebates. Tax form for students Casualty insurance Reimbursements from, Casualty insurance and other reimbursements. Tax form for students Catch-up contributions, Catch-up contributions. Tax form for students , Catch-up contributions. Tax form for students Charitable gift annuities, Charitable gift annuities. Tax form for students Child and Adult Care Food Program Payments to daycare providers, Food program payments to daycare providers. Tax form for students Child support payments, Child support payments. Tax form for students Childcare providers, Childcare providers. Tax form for students , Food program payments to daycare providers. Tax form for students Chronic illness, Chronically ill individual. Tax form for students Accelerated death benefits paid to, Exclusion for chronic illness. Tax form for students Citizens outside U. Tax form for students S. Tax form for students Exclusion of foreign income, Reminders Civil Rights Act of 1964, Title VII Back pay and damages for emotional distress under, Court awards and damages. Tax form for students Clergy, Clergy Coal, Coal and iron ore. Tax form for students Colleges and universities Faculty lodging, Faculty lodging. Tax form for students Scholarships and fellowships, Scholarships and fellowships. Tax form for students Commissions Advance, Miscellaneous Compensation Commuter highway vehicles, Transportation Compensation Employee, Employee Compensation Miscellaneous, Miscellaneous Compensation Unemployment, Unemployment compensation. Tax form for students Workers', Workers' Compensation Compensatory damages, Other compensation. Tax form for students , Court awards and damages. Tax form for students Constructive receipt of income, Constructively received income. Tax form for students Copyrights Infringement damages, Court awards and damages. Tax form for students Royalties, Copyrights and patents. Tax form for students Corporate directors, Corporate director. Tax form for students Cost-of-living allowances, Government cost-of-living allowances. Tax form for students Court awards, Court awards and damages. Tax form for students (see also Damages from lawsuits) Credit card Insurance, Credit card insurance. Tax form for students Credits Recoveries, refiguring of unused credits, Unused tax credits. Tax form for students , Unused tax credits. Tax form for students Currency transactions, foreign, Foreign currency transactions. Tax form for students D Damages from lawsuits, Court awards and damages. Tax form for students Back pay awards, Back pay awards. Tax form for students Breach of contract, Court awards and damages. Tax form for students Compensatory damages, Other compensation. Tax form for students , Court awards and damages. Tax form for students Emotional distress under Title VII, Civil Rights Act of 1964, Court awards and damages. Tax form for students Punitive damages, Court awards and damages. Tax form for students Daycare providers, Childcare providers. Tax form for students (see also Childcare providers) Food program payments to, Food program payments to daycare providers. Tax form for students De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Death benefits, Proceeds not received in installments. Tax form for students (see also Life insurance) Accelerated, Accelerated Death Benefits Debts Canceled, Canceled Debts Excluded debt, Excluded debt. Tax form for students Nonrecourse debts, Mortgage relief upon sale or other disposition. Tax form for students Recourse, Mortgage relief upon sale or other disposition. Tax form for students Stockholder's, Stockholder debt. Tax form for students Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. Tax form for students Deferred compensation Nonqualified plans, Nonqualified deferred compensation plans. Tax form for students , Nonqualified deferred compensation plans of nonqualified entities. Tax form for students Dependent care benefits, Dependent Care Benefits Depletion allowance, Depletion. Tax form for students Differential wage payments, Differential wage payments. Tax form for students Armed forces, Differential wage payments. Tax form for students Directors' fees, Corporate director. Tax form for students Disability Military, Disability. Tax form for students Pensions, Disability Pensions Workers' compensation, Disability pension. Tax form for students Person with, Persons with disabilities. Tax form for students Unemployment compensation, paid as substitute for, Types of unemployment compensation. Tax form for students Disaster relief Disaster mitigation payments, Disaster mitigation payments. Tax form for students Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. Tax form for students Unemployment benefits, Unemployment Benefits Mitigation payments, Reminders Payments, Disaster relief payments. Tax form for students Discounts Employee discounts, Employee Discounts Employee stock purchase plans, Option granted at a discount. Tax form for students Mortgage loan for early payment, Discounted mortgage loan. Tax form for students Dividends Restricted stock, Dividends received on restricted stock. Tax form for students Divorced taxpayers Stock options exercised incident to divorce, Tax form. Tax form for students Down payment assistance, Down payment assistance. Tax form for students E Educational assistance Employer-provided, Educational Assistance Scholarships and fellowships, Scholarships and fellowships. Tax form for students Educational institutions Faculty lodging, Faculty lodging. Tax form for students Elderly persons Nutrition Program for the Elderly, Nutrition Program for the Elderly. Tax form for students Tax Counseling for the Elderly, Volunteer tax counseling. Tax form for students Election precinct officials, Election precinct official. Tax form for students Elective deferrals, Elective Deferrals Catch-up contributions, Catch-up contributions. Tax form for students , Catch-up contributions. Tax form for students Excess annual additions, Excess Annual Additions Excess contributions, Excess Contributions Excess deferrals, Excess deferrals. Tax form for students Increased limit for last 3 years prior to retirement age, Increased limit. Tax form for students Limit on, Elective Deferrals Reporting by employer, Reporting by employer. Tax form for students Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. Tax form for students Emotional distress damages, Emotional distress. Tax form for students Employee achievement awards, Employee achievement award. Tax form for students Employee awards or bonuses, Employee awards or bonuses. Tax form for students Employee compensation, Employee Compensation, Inherited property not substantially vested. Tax form for students Fringe benefits, Fringe Benefits, Special valuation rules. Tax form for students Restricted property, Restricted Property, Inherited property not substantially vested. Tax form for students Retirement plan contributions, Retirement Plan Contributions Stock options, Stock Options, Statutory Stock Options Employee discounts, Employee Discounts Employee stock purchase plans, Statutory Stock Options, Employee stock purchase plan. Tax form for students Employer, foreign, Foreign Employer Employer-owned life insurance, Employer-owned life insurance contract. Tax form for students Employer-provided Educational assistance, Educational Assistance Vehicles, Employer-provided vehicles. Tax form for students Employment Abroad, Employment abroad. Tax form for students Agency fees, Employment agency fees. Tax form for students Contracts Severance pay for cancellation of, Severance pay. Tax form for students Endowment proceeds, Endowment Contract Proceeds Energy Assistance, Payments to reduce cost of winter energy. Tax form for students Conservation Subsidies, Energy conservation subsidies. Tax form for students Utility rebates, Utility rebates. Tax form for students Estate income, Estate and trust income. Tax form for students Estimated tax Unemployment compensation, Tax withholding. Tax form for students Excess Annual additions, Excess Annual Additions Contributions, Excess Contributions Deferrals, Excess deferrals. Tax form for students Expected inheritance, Expected inheritance. Tax form for students Expenses paid by another, Expenses paid by another. Tax form for students Exxon Valdez settlement, Exxon Valdez settlement income. Tax form for students Eligible retirement plan, Contributions to eligible retirement plan. Tax form for students Income averaging, Income averaging. Tax form for students Legal expenses, Legal expenses. Tax form for students Reporting requirement-statement, Statement. Tax form for students F Faculty lodging, Faculty lodging. Tax form for students Fair market value (FMV), Fair market value. Tax form for students Stock options, Grant of option. Tax form for students Farming Qualified farm debt, cancellation of, Excluded debt. Tax form for students Federal employees Accrued leave payment, Accrued leave payment. Tax form for students Cost-of-living allowances, Government cost-of-living allowances. Tax form for students Disability pensions, Military and Government Disability Pensions Thrift Savings Plan for, Elective Deferrals Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). Tax form for students Federal income tax Refunds, Federal income tax refund. Tax form for students Fees for services, Fees for services. Tax form for students Financial counseling fees, Financial Counseling Fees Fellowships, Scholarships and fellowships. Tax form for students FICA withholding Foreign employers, U. Tax form for students S. Tax form for students citizens working for in U. Tax form for students S. Tax form for students , Social security and Medicare taxes. Tax form for students Paid by employer, Social security and Medicare taxes paid by employer. Tax form for students Fiduciaries Fees for services, Fees for services. Tax form for students , Personal representatives. Tax form for students Financial counseling fees, Financial Counseling Fees (see also Retirement planning services) Fitness programs Employer-provided, Athletic Facilities Flights Employer-provided aircraft, Flights on employer-provided aircraft. Tax form for students No-additional-cost services, No-Additional-Cost Services Food benefits Daycare providers, food program payments to, Food program payments to daycare providers. Tax form for students Nutrition Program for the Elderly, Nutrition Program for the Elderly. Tax form for students Foreign Currency transactions, Foreign currency transactions. Tax form for students Employment, Foreign Employer Governments, employees of, Employees of international organizations or foreign governments. Tax form for students Income, Reminders Service, Service-connected disability. Tax form for students Form 1040 Excess contributions to elective deferrals, Excess Contributions Recoveries, Where to report. Tax form for students Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040 or 1040A, Schedule B Restricted stock dividends, Stock you chose to include in your income. Tax form for students Form 1040, Schedule A Outplacement services, deduction for, Outplacement services. Tax form for students Repayment of commissions paid in advance, Advance commissions and other earnings. Tax form for students Form 1040, Schedule C Bartering, Bartering Childcare providers to use, Childcare providers. Tax form for students Personal property rental, reporting income from, Reporting business income and expenses. Tax form for students Royalties, Royalties Form 1040, Schedule C-EZ Bartering, Bartering Childcare Providers to use, Childcare providers. Tax form for students Personal property rental, reporting income from, Reporting business income and expenses. Tax form for students Royalties, Royalties Form 1040, Schedule D Stock options, Sale of the stock. Tax form for students Stock options reported on, Statutory Stock Options Form 1040, Schedule E Partner's return, Partner's return. Tax form for students Royalties, Royalties Form 1040A Recoveries, Where to report. Tax form for students Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040EZ Recoveries, Where to report. Tax form for students Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1041 Estates and trusts, Estate and trust income. Tax form for students Form 1041, Schedule K-1 Beneficiary's share of income, deductions, credits, etc. Tax form for students , Estate and trust income. Tax form for students Form 1065 Partnership return, Partnership return. Tax form for students Form 1065, Schedule K-1 Partner's share of income, Schedule K-1 (Form 1065). Tax form for students , Partnership Income Form 1098 Mortgage interest statement, Mortgage interest refund. Tax form for students Form 1099-B Barter exchange transactions, Form 1099-B from barter exchange. Tax form for students , Backup withholding. Tax form for students Form 1099-C Cancellation of debt, Form 1099-C. Tax form for students Form 1099-DIV Restricted stock dividends, Stock you chose to include in your income. Tax form for students Form 1099-G State tax refunds, State tax refund. Tax form for students Unemployment compensation, Unemployment Benefits Form 1099-MISC Services totaling $600 or more, Fees for services. Tax form for students Stock options exercised incident to divorce, Tax form. Tax form for students Form 1099-R Charitable gift annuities, Charitable gift annuities. Tax form for students Excess annual additions, Excess Annual Additions Excess deferral amounts, Excess distributed to you. Tax form for students Surrender of life insurance policy for cash, Surrender of policy for cash. Tax form for students Form 1120-POL Political organizations, Campaign contributions. Tax form for students Form 1120S S corporation return, S corporation return. Tax form for students Form 1120S, Schedule K-1 Shareholder's share of income, credits, deductions, etc. Tax form for students , Schedule K-1 (Form 1120S). Tax form for students Form 2441 Child and dependent care expenses, Dependent Care Benefits Form 4255 Recapture of investment credit, Amounts Recovered for Credits Form 6251 Alternative minimum tax, Alternative minimum tax (AMT). Tax form for students Form 8839 Adoption assistance, Adoption Assistance Form 8853 Accelerated death benefits, Form 8853. Tax form for students Archer MSAs and long-term care insurance contracts, Archer MSA contributions. Tax form for students Form 8919 Uncollected social security and Medicare tax on wages, Employee Compensation Form RRB-1099 Railroad retirement board payments, Form RRB-1099. Tax form for students Form SSA-1099 Social security benefit statement, Form SSA-1099. Tax form for students Form W-2 501(c)(18)(D) contributions, Section 501(c)(18)(D) contributions. Tax form for students Accrued leave payment at time of retirement or resignation, Accrued leave payment. Tax form for students Back pay awards, Back pay awards. Tax form for students Bonuses or awards, Bonuses and awards. Tax form for students Elective deferrals, reporting by employer, Reporting by employer. Tax form for students Failure to receive from employer, Employee Compensation Fringe benefits reported on, Form W-2. Tax form for students Stock options from employers, Tax form. Tax form for students Wage and tax statement, Employee Compensation Form W-2G Gambling winnings, Form W-2G. Tax form for students Form W-4V Unemployment compensation, voluntary withholding request, Tax withholding. Tax form for students Form W-9 Request for taxpayer identification number, Backup withholding. Tax form for students Foster care, Foster care providers. Tax form for students Foster Grandparent Program, National Senior Service Corps programs. Tax form for students Found property, Found property. Tax form for students Free tax services, Free help with your tax return. Tax form for students Fringe benefits, Fringe Benefits, Special valuation rules. Tax form for students Accident and health insurance, Accident or Health Plan Adoption, employer assistance, Adoption Assistance Athletic facilities, Athletic Facilities Commuter highway vehicles, Transportation De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Dependent care benefits, Dependent Care Benefits Educational assistance, Educational Assistance Employee discounts, Employee Discounts Faculty lodging, Faculty lodging. Tax form for students Financial counseling fees, Financial Counseling Fees Holiday gifts, Holiday gifts. Tax form for students Meals and lodging, Meals and Lodging Moving expenses (see Moving expenses) No-additional-cost services, No-Additional-Cost Services Parking, Transportation Retirement planning (see Retirement planning services) Transit pass, Transportation, Transit pass. Tax form for students Tuition reduction, Tuition Reduction Valuation of, Valuation of Fringe Benefits, Special valuation rules. Tax form for students Vehicle, Employer-provided vehicles. Tax form for students Working condition benefits, Working Condition Benefits Frozen deposits Interest on, Interest on frozen deposits. Tax form for students G Gambling winnings and losses, Gambling winnings. Tax form for students Gas Royalties from, Oil, gas, and minerals. Tax form for students Gifts, Gifts and inheritances. Tax form for students Holiday gifts from employer, Holiday gifts. Tax form for students Government employees (see Federal employees; State employees) Grantor trusts, Grantor trust. Tax form for students Group-term life insurance Worksheets, Figuring the taxable cost. Tax form for students , Worksheet 1. Tax form for students Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Gulf oil spill, Reminders, Gulf oil spill. Tax form for students H HAMP Home affordable modification program Pay-for-performance success payments, Home Affordable Modification Program (HAMP). Tax form for students Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. Tax form for students Health Flexible spending arrangement, Health flexible spending arrangement (health FSA). Tax form for students Insurance, Accident or Health Plan Reimbursement arrangement, Health reimbursement arrangement (HRA). Tax form for students Savings account, Health savings accounts (HSA). Tax form for students Help (see Tax help) Highly compensated employees Excess contributions to elective deferrals, Excess Contributions Historic preservation grants, Historic preservation grants. Tax form for students Hobby losses, Hobby losses. Tax form for students Holding period requirement, Holding period requirement. Tax form for students Holiday gifts, Holiday gifts. Tax form for students Holocaust victims restitution, Holocaust victims restitution. Tax form for students Home, sale of, Sale of home. Tax form for students Host or hostess, Host or Hostess Hotels No-additional-cost services, No-Additional-Cost Services Housing (see Lodging) I Illegal activities, Illegal activities. Tax form for students Incentive stock options (ISOs), Statutory Stock Options, Incentive stock options (ISOs). Tax form for students Income Assigned, Assignment of income. Tax form for students Business and investment, Business and Investment Income, More information. Tax form for students Constructive receipt of, Constructively received income. Tax form for students Estate and trust, Estate and trust income. Tax form for students Foreign employers, Foreign Employer Illegal, Illegal activities. Tax form for students Miscellaneous, Miscellaneous Income Other, Other Income Partnership, Partnership Income Prepaid, Prepaid income. Tax form for students S corporation, S Corporation Income Indian fishing rights, Indian fishing rights. Tax form for students Indian money account, Indian money account litigation settlement. Tax form for students Individual retirement arrangements (IRAs) Deduction, Benefits may affect your IRA deduction. Tax form for students Inherited IRA, Inherited pension or IRA. Tax form for students Inheritance, Gifts and inheritances. Tax form for students IRA, Inherited pension or IRA. Tax form for students Property not substantially vested, Inherited property not substantially vested. Tax form for students Injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. Tax form for students Insurance Credit card, Credit card insurance. Tax form for students Health, Accident or Health Plan Life (see Life insurance) Long-term care (see Long-term care insurance) Interest Canceled debt including, Interest included in canceled debt. Tax form for students Frozen deposits, Interest on frozen deposits. Tax form for students Mortgage refunds, Mortgage interest refund. Tax form for students Option on insurance, Interest option on insurance. Tax form for students Recovery amounts, Interest on recovery. Tax form for students Savings bond, Interest on qualified savings bonds. Tax form for students State and local government obligations, Interest on state and local government obligations. Tax form for students Interference with business operations Damages as income, Court awards and damages. Tax form for students International organizations, employees of, Foreign Employer Interview expenses, Job interview expenses. Tax form for students Investment counseling fees, Financial Counseling Fees (see also Retirement planning services) Investment income, Business and Investment Income, More information. Tax form for students IRAs (see Individual retirement arrangements (IRAs)) Iron ore, Coal and iron ore. Tax form for students Itemized deductions Limited, Itemized deductions limited. Tax form for students Recoveries, Recoveries, Itemized Deduction Recoveries J Job interview expenses, Job interview expenses. Tax form for students Joint returns Social security benefits or railroad retirement payments, Joint return. Tax form for students Joint state/local tax return Recoveries, Joint state or local income tax return. Tax form for students Jury duty pay, Jury duty. Tax form for students K Kickbacks, Kickbacks. Tax form for students L Labor unions Convention expenses, reimbursed, Reimbursed union convention expenses. Tax form for students Dues, Union benefits and dues. Tax form for students Strike and lockout benefits, Strike and lockout benefits. Tax form for students Unemployment benefits paid from, Payments by a union. Tax form for students Last day of tax year, income received on, Constructively received income. Tax form for students Leave (see Accrued leave payment) Length-of-service awards, Employee achievement award. Tax form for students Life insurance Employer-owned, Employer-owned life insurance contract. Tax form for students Proceeds, Life Insurance Proceeds Surrender of policy for cash, Surrender of policy for cash. Tax form for students Loans, Discounted mortgage loan. Tax form for students (see also Mortgage) Below-market, Below-market loans. Tax form for students Student, Student loans. Tax form for students Lockout benefits, Strike and lockout benefits. Tax form for students Lodging Campus lodging, Qualified campus lodging. Tax form for students , Moving Expense Reimbursements Clergy, Housing Employer-paid or reimbursed, Meals and Lodging Faculty lodging, Faculty lodging. Tax form for students Replacement housing payments, Replacement housing payments. Tax form for students Long-term care insurance, Long-term care coverage. Tax form for students , Long-Term Care Insurance Contracts Lotteries and raffles, Lotteries and raffles. Tax form for students Lump-sum distributions Survivor benefits, Lump-sum payments. Tax form for students M Manufacturer incentive payments, Manufacturer incentive payments. Tax form for students Meals Employer-paid or reimbursed, Meals and Lodging Nutrition Program for the Elderly, Nutrition Program for the Elderly. Tax form for students Medical Care reimbursements, Reimbursement for medical care. Tax form for students Savings accounts, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Tax form for students Medicare Advantage MSAs, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Tax form for students Benefits, Medicare. Tax form for students Tax paid by employer, Social security and Medicare taxes paid by employer. Tax form for students Medicare tax (see Social security and Medicare taxes) Military (see Armed forces) Minerals Royalties from, Oil, gas, and minerals. Tax form for students Miscellaneous Compensation, Miscellaneous Compensation Income, Miscellaneous Income Missing children, photographs of, Reminders Mortgage Assistance payment (under sec. Tax form for students 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. Tax form for students Discounted loan, Discounted mortgage loan. Tax form for students Interest refund, Mortgage interest refund. Tax form for students Qualified principal residence indebtedness, Qualified principal residence indebtedness (QPRI). Tax form for students Relief, Mortgage relief upon sale or other disposition. Tax form for students Motor vehicle, employer-provided, Employer-provided vehicles. Tax form for students Moving expenses Reimbursements, Allowances and reimbursements. Tax form for students , Moving expense reimbursements. Tax form for students MSAs (Medical savings accounts), Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Tax form for students N National Health Service Corps Scholarship Program, Tuition Reduction National Oceanic and Atmospheric Administration, Service-connected disability. Tax form for students National Senior Service Corps, National Senior Service Corps programs. Tax form for students No-additional-cost services, No-Additional-Cost Services No-fault car insurance Disability benefits under, Other compensation. Tax form for students Nobel prize, Pulitzer, Nobel, and similar prizes. Tax form for students Nonrecourse debt, Mortgage relief upon sale or other disposition. Tax form for students Nonstatutory stock options, Nonstatutory Stock Options Nontaxable income, Introduction Not-for-profit activities, Activity not for profit. Tax form for students Notary fees, Notary public. Tax form for students Notes received for services, Note received for services. Tax form for students Nutrition Program for the Elderly, Nutrition Program for the Elderly. Tax form for students O Oil Royalties from, Oil, gas, and minerals. Tax form for students Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). Tax form for students Options, stock, Stock Options, Statutory Stock Options Outplacement services, Outplacement services. Tax form for students Overseas work, Reminders P Parking fees Employer-paid or reimbursed, Transportation, Qualified parking. Tax form for students Partner and partnership income, Partnership Income Patents Infringement damages, Court awards and damages. Tax form for students Royalties, Copyrights and patents. Tax form for students Peace Corps, Peace Corps. Tax form for students Pensions Clergy, Pension. Tax form for students Disability pensions, Disability Pensions Inherited pensions, Inherited pension or IRA. Tax form for students Military, Military retirement pay. Tax form for students Personal property Rental income and expense, Rents From Personal Property Sale of, Sale of personal items. Tax form for students Personal representatives (see Fiduciaries) Prepaid income, Prepaid income. Tax form for students Price reduced after purchase, Price reduced after purchase. Tax form for students Prizes and awards, Bonuses and awards. Tax form for students , Prizes and awards. Tax form for students Achievement awards, Employee achievement award. Tax form for students Employee awards or bonuses, Employee awards or bonuses. Tax form for students Length-of-service awards, Employee achievement award. Tax form for students Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes. Tax form for students Safety achievement, Employee achievement award. Tax form for students Scholarship prizes, Prizes. Tax form for students Profit-sharing plan, Retirement and profit-sharing plans. Tax form for students Public assistance benefits, Welfare and Other Public Assistance Benefits Public Health Service, Service-connected disability. Tax form for students Public safety officers killed in line of duty, Public safety officer killed in the line of duty. Tax form for students Public transportation passes, employer-provided, Transportation, Transit pass. Tax form for students Publications (see Tax help) Pulitzer prize, Pulitzer, Nobel, and similar prizes. Tax form for students Punitive damages, Court awards and damages. Tax form for students Q Qualified joint venture, Reminders Qualified tuition program (QTP), Qualified tuition program (QTP). Tax form for students R Raffles, Lotteries and raffles. Tax form for students Railroad Retirement annuities, Railroad retirement annuities. Tax form for students Retirement benefits, Social security and equivalent railroad retirement benefits. Tax form for students Sick pay, Railroad sick pay. Tax form for students Unemployment compensation benefits, Types of unemployment compensation. Tax form for students Real estate Qualified real property business debt, cancellation of, Excluded debt. Tax form for students Rebates Cash, Cash rebates. Tax form for students Utility, Utility rebates. Tax form for students Recovery of amounts previously deducted, Recoveries, Standard deduction for earlier years. Tax form for students Itemized deductions, Recoveries, Itemized Deduction Recoveries Non-itemized deductions, Non-Itemized Deduction Recoveries Unused tax credits, refiguring of, Unused tax credits. Tax form for students , Unused tax credits. Tax form for students Refunds Federal income tax, Federal income tax refund. Tax form for students Mortgage interest, Mortgage interest refund. Tax form for students State tax, State tax refund. Tax form for students Rehabilitative program payments, Veterans' benefits. Tax form for students Reimbursements Business expenses, Allowances and reimbursements. Tax form for students Casualty losses, Casualty insurance and other reimbursements. Tax form for students Meals and lodging, Meals and Lodging Medical expenses, Reimbursement for medical care. Tax form for students Moving expenses, Allowances and reimbursements. Tax form for students , Moving expense reimbursements. Tax form for students Related party transactions Stock option transfer, Transfer in non-arm's-length transaction. Tax form for students Religious order members, Members of Religious Orders Rental income and expenses Personal property rental, Rents From Personal Property Reporting of, Reporting business income and expenses. Tax form for students Repayments, Repayments, Year of deduction (or credit). Tax form for students Repossession, Canceled sales contract. Tax form for students Restricted property, Restricted Property, Inherited property not substantially vested. Tax form for students Retired Senior Volunteer Program (RSVP), National Senior Service Corps programs. Tax form for students Retirement Settlement, Reminders Retirement planning services, Financial Counseling Fees, Retirement Planning Services Retirement plans, Military retirement pay. Tax form for students (see also Pensions) Automatic contribution arrangements, Qualified automatic contribution arrangements. Tax form for students Contributions, Retirement Plan Contributions, Excess Annual Additions, Statutory Stock Options Elective deferrals (see Elective deferrals) Rewards, Rewards. Tax form for students Roth contributions, Designated Roth contributions. Tax form for students Royalties, Royalties S S corporations, S Corporation Income Safety achievement awards, Employee achievement award. Tax form for students Salary reduction simplified employee pension plans (see SARSEPs) Sale of home, Sale of home. Tax form for students Sales contracts Cancellation of, Canceled sales contract. Tax form for students SARSEPs, Elective Deferrals Excess contributions, Excess Contributions Savings bonds, Interest on qualified savings bonds. Tax form for students Savings incentive match plans for employees (see SIMPLE plans) Scholarships and fellowships, Scholarships and fellowships. Tax form for students Self-employed persons U. Tax form for students S. Tax form for students citizens working for foreign employers in U. Tax form for students S. Tax form for students treated as, Social security and Medicare taxes. Tax form for students Senior Companion Program, National Senior Service Corps programs. Tax form for students Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE). Tax form for students Severance pay, Severance pay. Tax form for students Outplacement services, Outplacement services. Tax form for students Sick pay, Sick pay. Tax form for students Sickness and injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. Tax form for students SIMPLE plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under SIMPLE plans. Tax form for students Smallpox vaccine injuries, Smallpox vaccine injuries. Tax form for students Social security and Medicare taxes Foreign employers, U. Tax form for students S. Tax form for students citizens working for in U. Tax form for students S. Tax form for students , Social security and Medicare taxes. Tax form for students Paid by employer, Social security and Medicare taxes paid by employer. Tax form for students Social security benefits, Social security and equivalent railroad retirement benefits. Tax form for students Standard deduction Recoveries, Standard deduction limit. Tax form for students , Standard deduction for earlier years. Tax form for students State employees Unemployment benefits paid to, State employees. Tax form for students State or local governments Interest on obligations of, Interest on state and local government obligations. Tax form for students State or local taxes Refunds, State tax refund. Tax form for students Statutory stock option holding period, Sale of the stock. Tax form for students Stock appreciation rights, Stock appreciation rights. Tax form for students Stock options, Stock Options, Statutory Stock Options Stock options, nonstatutory Exercise or transfer, Exercise or transfer of option. Tax form for students Grant, Grant of option. Tax form for students Sale, Sale of the stock. Tax form for students Stock options, statutory Exercise, Exercise of option. Tax form for students Grant, Grant of option. Tax form for students Sale, Sale of the stock. Tax form for students Stockholder debts, Stockholder debt. Tax form for students Stolen property, Stolen property. Tax form for students Strike benefits, Strike and lockout benefits. Tax form for students Student loans Cancellation of debt, Student loans. Tax form for students Substantial risk of forfeiture, Substantial risk of forfeiture. Tax form for students Substantially vested property, Substantially vested. Tax form for students Supplemental security income (SSI) payments, Social security and equivalent railroad retirement benefits. Tax form for students Supplemental unemployment benefits, Supplemental unemployment benefits. Tax form for students Surviving spouse Life insurance proceeds paid to, Surviving spouse. Tax form for students Survivor benefits, Survivor Benefits T Tables and figures Group-term life insurance (Table 1), Group-Term Life Insurance Tax benefit rule, Tax benefit rule. Tax form for students Tax Counseling for the Elderly, Volunteer tax counseling. Tax form for students Tax help, How To Get Tax Help Tax-sheltered annuity plans (403(b) plans), Elective Deferrals Limit for, Limit for tax-sheltered annuities. Tax form for students Terminal illness, Exclusion for terminal illness. Tax form for students Terrorist attacks Disability payments for injuries from, Terrorist attack or military action. Tax form for students Victims of, tax relief, Reminders Thrift Savings Plan, Elective Deferrals Title VII, Civil Rights Act of 1964 Back pay and damages for emotional distress under, Court awards and damages. Tax form for students Tour guides, free tours for, Free tour. Tax form for students Trade Act of 1974 Trade readjustment allowances under, Types of unemployment compensation. Tax form for students , Repayment of benefits. Tax form for students Transferable property, Transferable property. Tax form for students Transit passes, Transportation, Transit pass. Tax form for students Travel agencies Free tour to organizer of group of tourists, Free tour. Tax form for students Travel and transportation expenses Free tours from travel agencies, Free tour. Tax form for students Fringe benefits, Transportation Reimbursements, Allowances and reimbursements. Tax form for students School children, transporting of, Transporting school children. Tax form for students Trusts Grantor trusts, Grantor trust. Tax form for students Income, Estate and trust income. Tax form for students Tuition program, qualified (QTP), Qualified tuition program (QTP). Tax form for students Tuition reduction, Tuition Reduction U Unemployment compensation, Unemployment Benefits Unions (see Labor unions) Unlawful discrimination suits Deduction for costs, Deduction for costs involved in unlawful discrimination suits. Tax form for students V VA payments, VA payments. Tax form for students Valuation Fringe benefits, Valuation of Fringe Benefits, Special valuation rules. Tax form for students Stock options, Nonstatutory Stock Options Vehicle Commuter highway, Commuter highway vehicle. Tax form for students Employer-provided, Employer-provided vehicles. Tax form for students Veterans benefits, Veterans' benefits. Tax form for students Disability compensation, Retroactive VA determination. Tax form for students Retroactive VA determination, Retroactive VA determination. Tax form for students Special statute of limitations. Tax form for students , Special statute of limitations. Tax form for students Viatical settlements, Viatical settlement. Tax form for students Volunteer work, Volunteers Tax counseling (Volunteer Income Tax Assistance Program), Volunteer tax counseling. Tax form for students Volunteers in Service to America (VISTA), Volunteers in Service to America (VISTA). Tax form for students W W-2 form (see Form W-2) Welfare benefits, Welfare and Other Public Assistance Benefits Whistleblower, Whistleblower's award. Tax form for students Winter energy payments, Payments to reduce cost of winter energy. Tax form for students Withholding Barter exchange transactions, Backup withholding. Tax form for students Unemployment compensation, Tax withholding. Tax form for students Work-training programs, Work-training program. Tax form for students Workers' compensation, Workers' Compensation Working condition benefits, Working Condition Benefits Worksheets Group-term life insurance (Worksheet 1), Figuring the taxable cost. Tax form for students , Worksheet 1. 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The Tax Form For Students

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