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Taxes 2012 1. Taxes 2012 Rental Income and Expenses (If No Personal Use of Dwelling) Table of Contents Rental IncomeWhen To Report Types of Income Rental ExpensesWhen To Deduct Types of Expenses This chapter discusses the various types of rental income and expenses for a residential rental activity with no personal use of the dwelling. Taxes 2012 Generally, each year you will report all income and deduct all out-of-pocket expenses in full. Taxes 2012 The deduction to recover the cost of your rental property—depreciation—is taken over a prescribed number of years, and is discussed in chapter 2, Depreciation of Rental Property. Taxes 2012 If your rental income is from property you also use personally or rent to someone at less than a fair rental price, first read the information in chapter 5 , Personal Use of Dwelling Unit (Including Vacation Home). Taxes 2012 Rental Income In most cases, you must include in your gross income all amounts you receive as rent. Taxes 2012 Rental income is any payment you receive for the use or occupation of property. Taxes 2012 In addition to amounts you receive as normal rental payments, there are other amounts that may be rental income. Taxes 2012 When To Report When you report rental income on your tax return generally depends on whether you are a cash basis taxpayer or use an accrual method. Taxes 2012 Most individual taxpayers use the cash method. Taxes 2012 Cash method. Taxes 2012 You are a cash basis taxpayer if you report income on your return in the year you actually or constructively receive it, regardless of when it was earned. Taxes 2012 You constructively receive income when it is made available to you, for example, by being credited to your bank account. Taxes 2012 Accrual method. Taxes 2012 If you are an accrual basis taxpayer, you generally report income when you earn it, rather than when you receive it. Taxes 2012 You generally deduct your expenses when you incur them, rather than when you pay them. Taxes 2012 More information. Taxes 2012 See Publication 538, Accounting Periods and Methods, for more information about when you constructively receive income and accrual methods of accounting. Taxes 2012 Types of Income The following are common types of rental income. Taxes 2012 Advance rent. Taxes 2012 Advance rent is any amount you receive before the period that it covers. Taxes 2012 Include advance rent in your rental income in the year you receive it regardless of the period covered or the method of accounting you use. Taxes 2012 Example. Taxes 2012 On March 18, 2013, you signed a 10-year lease to rent your property. Taxes 2012 During 2013, you received $9,600 for the first year's rent and $9,600 as rent for the last year of the lease. Taxes 2012 You must include $19,200 in your rental income in the first year. Taxes 2012 Canceling a lease. Taxes 2012 If your tenant pays you to cancel a lease, the amount you receive is rent. Taxes 2012 Include the payment in your income in the year you receive it regardless of your method of accounting. Taxes 2012 Expenses paid by tenant. Taxes 2012 If your tenant pays any of your expenses, those payments are rental income. Taxes 2012 Because you must include this amount in income, you can also deduct the expenses if they are deductible rental expenses. Taxes 2012 For more information, see Rental Expenses , later. Taxes 2012 Example 1. Taxes 2012 Your tenant pays the water and sewage bill for your rental property and deducts the amount from the normal rent payment. Taxes 2012 Under the terms of the lease, your tenant does not have to pay this bill. Taxes 2012 Include the utility bill paid by the tenant and any amount received as a rent payment in your rental income. Taxes 2012 You can deduct the utility payment made by your tenant as a rental expense. Taxes 2012 Example 2. Taxes 2012 While you are out of town, the furnace in your rental property stops working. Taxes 2012 Your tenant pays for the necessary repairs and deducts the repair bill from the rent payment. Taxes 2012 Include the repair bill paid by the tenant and any amount received as a rent payment in your rental income. Taxes 2012 You can deduct the repair payment made by your tenant as a rental expense. Taxes 2012 Property or services. Taxes 2012 If you receive property or services as rent, instead of money, include the fair market value of the property or services in your rental income. Taxes 2012 If the services are provided at an agreed upon or specified price, that price is the fair market value unless there is evidence to the contrary. Taxes 2012 Example. Taxes 2012 Your tenant is a house painter. Taxes 2012 He offers to paint your rental property instead of paying 2 months rent. Taxes 2012 You accept his offer. Taxes 2012 Include in your rental income the amount the tenant would have paid for 2 months rent. Taxes 2012 You can deduct that same amount as a rental expense for painting your property. Taxes 2012 Security deposits. Taxes 2012 Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. Taxes 2012 But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year. Taxes 2012 If an amount called a security deposit is to be used as a final payment of rent, it is advance rent. Taxes 2012 Include it in your income when you receive it. Taxes 2012 Other Sources of Rental Income Lease with option to buy. Taxes 2012 If the rental agreement gives your tenant the right to buy your rental property, the payments you receive under the agreement are generally rental income. Taxes 2012 If your tenant exercises the right to buy the property, the payments you receive for the period after the date of sale are considered part of the selling price. Taxes 2012 Part interest. Taxes 2012 If you own a part interest in rental property, you must report your part of the rental income from the property. Taxes 2012 Rental of property also used as your home. Taxes 2012 If you rent property that you also use as your home and you rent it less than 15 days during the tax year, do not include the rent you receive in your income and do not deduct rental expenses. Taxes 2012 However, you can deduct on Schedule A (Form 1040), Itemized Deductions, the interest, taxes, and casualty and theft losses that are allowed for nonrental property. Taxes 2012 See chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). Taxes 2012 Rental Expenses In most cases, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income. Taxes 2012 Personal use of rental property. Taxes 2012 If you sometimes use your rental property for personal purposes, you must divide your expenses between rental and personal use. Taxes 2012 Also, your rental expense deductions may be limited. Taxes 2012 See chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). Taxes 2012 Part interest. Taxes 2012 If you own a part interest in rental property, you can deduct expenses you paid according to your percentage of ownership. Taxes 2012 Example. Taxes 2012 Roger owns a one-half undivided interest in a rental house. Taxes 2012 Last year he paid $968 for necessary repairs on the property. Taxes 2012 Roger can deduct $484 (50% × $968) as a rental expense. Taxes 2012 He is entitled to reimbursement for the remaining half from the co-owner. Taxes 2012 When To Deduct You generally deduct your rental expenses in the year you pay them. Taxes 2012 If you use the accrual method, see Publication 538 for more information. Taxes 2012 Types of Expenses Listed below are the most common rental expenses. Taxes 2012 Advertising. Taxes 2012 Auto and travel expenses. Taxes 2012 Cleaning and maintenance. Taxes 2012 Commissions. Taxes 2012 Depreciation. Taxes 2012 Insurance. Taxes 2012 Interest (other). Taxes 2012 Legal and other professional fees. Taxes 2012 Local transportation expenses. Taxes 2012 Management fees. Taxes 2012 Mortgage interest paid to banks, etc. Taxes 2012 Points. Taxes 2012 Rental payments. Taxes 2012 Repairs. Taxes 2012 Taxes. Taxes 2012 Utilities. Taxes 2012 Some of these expenses, as well as other less common ones, are discussed below. Taxes 2012 Depreciation. Taxes 2012 Depreciation is a capital expense. Taxes 2012 It is the mechanism for recovering your cost in an income producing property and must be taken over the expected life of the property. Taxes 2012 You can begin to depreciate rental property when it is ready and available for rent. Taxes 2012 See Placed in Service under When Does Depreciation Begin and End in chapter 2. Taxes 2012 Insurance premiums paid in advance. Taxes 2012 If you pay an insurance premium for more than one year in advance, for each year of coverage you can deduct the part of the premium payment that will apply to that year. Taxes 2012 You cannot deduct the total premium in the year you pay it. Taxes 2012 See chapter 6 of Publication 535 for information on deductible premiums. Taxes 2012 Interest expense. Taxes 2012 You can deduct mortgage interest you pay on your rental property. Taxes 2012 When you refinance a rental property for more than the previous outstanding balance, the portion of the interest allocable to loan proceeds not related to rental use generally cannot be deducted as a rental expense. Taxes 2012 Chapter 4 of Publication 535 explains mortgage interest in detail. Taxes 2012 Expenses paid to obtain a mortgage. Taxes 2012 Certain expenses you pay to obtain a mortgage on your rental property cannot be deducted as interest. Taxes 2012 These expenses, which include mortgage commissions, abstract fees, and recording fees, are capital expenses that are part of your basis in the property. Taxes 2012 Form 1098, Mortgage Interest Statement. Taxes 2012 If you paid $600 or more of mortgage interest on your rental property to any one person, you should receive a Form 1098 or similar statement showing the interest you paid for the year. Taxes 2012 If you and at least one other person (other than your spouse if you file a joint return) were liable for, and paid interest on, the mortgage, and the other person received the Form 1098, report your share of the interest on Schedule E (Form 1040), line 13. Taxes 2012 Attach a statement to your return showing the name and address of the other person. Taxes 2012 On the dotted line next to line 13, enter “See attached. Taxes 2012 ” Legal and other professional fees. Taxes 2012 You can deduct, as a rental expense, legal and other professional expenses such as tax return preparation fees you paid to prepare Schedule E, Part I. Taxes 2012 For example, on your 2013 Schedule E you can deduct fees paid in 2013 to prepare Part I of your 2012 Schedule E. Taxes 2012 You can also deduct, as a rental expense, any expense (other than federal taxes and penalties) you paid to resolve a tax underpayment related to your rental activities. Taxes 2012 Local benefit taxes. Taxes 2012 In most cases, you cannot deduct charges for local benefits that increase the value of your property, such as charges for putting in streets, sidewalks, or water and sewer systems. Taxes 2012 These charges are nondepreciable capital expenditures and must be added to the basis of your property. Taxes 2012 However, you can deduct local benefit taxes that are for maintaining, repairing, or paying interest charges for the benefits. Taxes 2012 Local transportation expenses. Taxes 2012 You may be able to deduct your ordinary and necessary local transportation expenses if you incur them to collect rental income or to manage, conserve, or maintain your rental property. Taxes 2012 However, transportation expenses incurred to travel between your home and a rental property generally constitute nondeductible commuting costs unless you use your home as your principal place of business. Taxes 2012 See Publication 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business. Taxes 2012 Generally, if you use your personal car, pickup truck, or light van for rental activities, you can deduct the expenses using one of two methods: actual expenses or the standard mileage rate. Taxes 2012 For 2013, the standard mileage rate for business use is 56. Taxes 2012 5 cents per mile. Taxes 2012 For more information, see chapter 4 of Publication 463. Taxes 2012 To deduct car expenses under either method, you must keep records that follow the rules in chapter 5 of Publication 463. Taxes 2012 In addition, you must complete Form 4562, Part V, and attach it to your tax return. Taxes 2012 Pre-rental expenses. Taxes 2012 You can deduct your ordinary and necessary expenses for managing, conserving, or maintaining rental property from the time you make it available for rent. Taxes 2012 Rental of equipment. Taxes 2012 You can deduct the rent you pay for equipment that you use for rental purposes. Taxes 2012 However, in some cases, lease contracts are actually purchase contracts. Taxes 2012 If so, you cannot deduct these payments. Taxes 2012 You can recover the cost of purchased equipment through depreciation. Taxes 2012 Rental of property. Taxes 2012 You can deduct the rent you pay for property that you use for rental purposes. Taxes 2012 If you buy a leasehold for rental purposes, you can deduct an equal part of the cost each year over the term of the lease. Taxes 2012 Travel expenses. Taxes 2012 You can deduct the ordinary and necessary expenses of traveling away from home if the primary purpose of the trip is to collect rental income or to manage, conserve, or maintain your rental property. Taxes 2012 You must properly allocate your expenses between rental and nonrental activities. Taxes 2012 You cannot deduct the cost of traveling away from home if the primary purpose of the trip is to improve the property. Taxes 2012 The cost of improvements is recovered by taking depreciation. Taxes 2012 For information on travel expenses, see chapter 1 of Publication 463. Taxes 2012 To deduct travel expenses, you must keep records that follow the rules in chapter 5 of Publication 463. Taxes 2012 Uncollected rent. Taxes 2012 If you are a cash basis taxpayer, do not deduct uncollected rent. Taxes 2012 Because you have not included it in your income, it is not deductible. Taxes 2012 If you use an accrual method, report income when you earn it. Taxes 2012 If you are unable to collect the rent, you may be able to deduct it as a business bad debt. Taxes 2012 See chapter 10 of Publication 535 for more information about business bad debts. Taxes 2012 Vacant rental property. Taxes 2012 If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. Taxes 2012 However, you cannot deduct any loss of rental income for the period the property is vacant. Taxes 2012 Vacant while listed for sale. Taxes 2012 If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. Taxes 2012 If the property is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses. Taxes 2012 Points The term “points” is often used to describe some of the charges paid, or treated as paid, by a borrower to take out a loan or a mortgage. Taxes 2012 These charges are also called loan origination fees, maximum loan charges, or premium charges. Taxes 2012 Any of these charges (points) that are solely for the use of money are interest. Taxes 2012 Because points are prepaid interest, you generally cannot deduct the full amount in the year paid, but must deduct the interest over the term of the loan. Taxes 2012 The method used to figure the amount of points you can deduct each year follows the original issue discount (OID) rules. Taxes 2012 In this case, points are equivalent to OID, which is the difference between: The amount borrowed (redemption price at maturity, or principal) and The proceeds (issue price). Taxes 2012 The first step is to determine whether your total OID (which you may have on bonds or other investments in addition to the mortgage loan), including the OID resulting from the points, is insignificant or de minimis. Taxes 2012 If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct. Taxes 2012 De minimis OID. Taxes 2012 The OID is de minimis if it is less than one-fourth of 1% (. Taxes 2012 0025) of the stated redemption price at maturity (principal amount of the loan) multiplied by the number of full years from the date of original issue to maturity (term of the loan). Taxes 2012 If the OID is de minimis, you can choose one of the following ways to figure the amount of points you can deduct each year. Taxes 2012 On a constant-yield basis over the term of the loan. Taxes 2012 On a straight line basis over the term of the loan. Taxes 2012 In proportion to stated interest payments. Taxes 2012 In its entirety at maturity of the loan. Taxes 2012 You make this choice by deducting the OID (points) in a manner consistent with the method chosen on your timely filed tax return for the tax year in which the loan is issued. Taxes 2012 Example. Taxes 2012 Carol Madison took out a $100,000 mortgage loan on January 1, 2013, to buy a house she will use as a rental during 2013. Taxes 2012 The loan is to be repaid over 30 years. Taxes 2012 During 2013, Carol paid $10,000 of mortgage interest (stated interest) to the lender. Taxes 2012 When the loan was made, she paid $1,500 in points to the lender. Taxes 2012 The points reduced the principal amount of the loan from $100,000 to $98,500, resulting in $1,500 of OID. Taxes 2012 Carol determines that the points (OID) she paid are de minimis based on the following computation. Taxes 2012 Redemption price at maturity (principal amount of the loan) $100,000 Multiplied by: The term of the loan in complete years ×30 Multiplied by ×. Taxes 2012 0025 De minimis amount $7,500 The points (OID) she paid ($1,500) are less than the de minimis amount ($7,500). Taxes 2012 Therefore, Carol has de minimis OID and she can choose one of the four ways discussed earlier to figure the amount she can deduct each year. Taxes 2012 Under the straight line method, she can deduct $50 each year for 30 years. Taxes 2012 Constant-yield method. Taxes 2012 If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct each year. Taxes 2012 You figure your deduction for the first year in the following manner. Taxes 2012 Determine the issue price of the loan. Taxes 2012 If you paid points on the loan, the issue price generally is the difference between the principal and the points. Taxes 2012 Multiply the result in (1) by the yield to maturity (defined later). Taxes 2012 Subtract any qualified stated interest payments (defined later) from the result in (2). Taxes 2012 This is the OID you can deduct in the first year. Taxes 2012 Yield to maturity (YTM). Taxes 2012 This rate is generally shown in the literature you receive from your lender. Taxes 2012 If you do not have this information, consult your lender or tax advisor. Taxes 2012 In general, the YTM is the discount rate that, when used in computing the present value of all principal and interest payments, produces an amount equal to the principal amount of the loan. Taxes 2012 Qualified stated interest (QSI). Taxes 2012 In general, this is the stated interest that is unconditionally payable in cash or property (other than another loan of the issuer) at least annually over the term of the loan at a fixed rate. Taxes 2012 Example—Year 1. Taxes 2012 The facts are the same as in the previous example. Taxes 2012 The yield to maturity on Carol's loan is 10. Taxes 2012 2467%, compounded annually. Taxes 2012 She figured the amount of points (OID) she could deduct in 2013 as follows. Taxes 2012 Principal amount of the loan $100,000 Minus: Points (OID) –1,500 Issue price of the loan $98,500 Multiplied by: YTM × . Taxes 2012 102467 Total 10,093 Minus: QSI –10,000 Points (OID) deductible in 2013 $93 To figure your deduction in any subsequent year, you start with the adjusted issue price. Taxes 2012 To get the adjusted issue price, add to the issue price figured in Year 1 any OID previously deducted. Taxes 2012 Then follow steps (2) and (3), earlier. Taxes 2012 Example—Year 2. Taxes 2012 Carol figured the deduction for 2014 as follows. Taxes 2012 Issue price $98,500 Plus: Points (OID) deducted in 2013 +93 Adjusted issue price $98,593 Multiplied by: YTM × . Taxes 2012 102467 Total 10,103 Minus: QSI –10,000 Points (OID) deductible in 2014 $103 Loan or mortgage ends. Taxes 2012 If your loan or mortgage ends, you may be able to deduct any remaining points (OID) in the tax year in which the loan or mortgage ends. Taxes 2012 A loan or mortgage may end due to a refinancing, prepayment, foreclosure, or similar event. Taxes 2012 However, if the refinancing is with the same lender, the remaining points (OID) generally are not deductible in the year in which the refinancing occurs, but may be deductible over the term of the new mortgage or loan. Taxes 2012 Points when loan refinance is more than the previous outstanding balance. Taxes 2012 When you refinance a rental property for more than the previous outstanding balance, the portion of the points allocable to loan proceeds not related to rental use generally cannot be deducted as a rental expense. Taxes 2012 For example, if an individual refinanced a loan with a balance of $100,000, the amount of the new loan was $120,000, and the taxpayer used $20,000 to purchase a car, points allocable to the $20,000 would be treated as nondeductible personal interest. Taxes 2012 Repairs and Improvements Generally, an expense for repairing or maintaining your rental property may be deducted if you are not required to capitalize the expense. Taxes 2012 Improvements. Taxes 2012 You must capitalize any expense you pay to improve your rental property. Taxes 2012 An expense is for an improvement if it results in a betterment to your property, restores your property, or adapts your property to a new or different use. Taxes 2012 Betterments. Taxes 2012 Expenses that may result in a betterment to your property include expenses for fixing a pre-existing defect or condition, enlarging or expanding your property, or increasing the capacity, strength, or quality of your property. Taxes 2012 Restoration. Taxes 2012 Expenses that may be for restoration include expenses for replacing a substantial structural part of your property, repairing damage to your property after you properly adjusted the basis of your property as a result of a casualty loss, or rebuilding your property to a like-new condition. Taxes 2012 Adaptation. Taxes 2012 Expenses that may be for adaptation include expenses for altering your property to a use that is not consistent with the intended ordinary use of your property when you began renting the property. Taxes 2012 Separate the costs of repairs and improvements, and keep accurate records. Taxes 2012 You will need to know the cost of improvements when you sell or depreciate your property. Taxes 2012 The expenses you capitalize for improving your property can generally be depreciated as if the improvement were separate property. Taxes 2012 Table 1-1. Taxes 2012 Examples of Improvements Additions Bedroom Bathroom Deck Garage Porch Patio Lawn & Grounds Landscaping Driveway Walkway Fence Retaining wall Sprinkler system Swimming pool Miscellaneous Storm windows, doors New roof Central vacuum Wiring upgrades Satellite dish Security system Heating & Air Conditioning Heating system Central air conditioning Furnace Duct work Central humidifier Filtration system Plumbing Septic system Water heater Soft water system Filtration system Interior Improvements Built-in appliances Kitchen modernization Flooring Wall-to-wall carpeting Insulation Attic Walls, floor Pipes, duct work Prev Up Next Home More Online Publications
Understanding your CP02H Notice
You owe a balance due as a result of amending your tax return to show receipt of a grant received as a result of Hurricane Katrina, Rita or Wilma.
What you need to do
- Submit the required payment by the date stated under "Billing Summary."
- If you can’t pay the amount in full, pay as much as you can now and make payment arrangements for the remainder. For more information such as installment payment plans check out this link or call us at 1-800-829-8374.
You may want to...
- Download copies of the following materials:
Answers to Common Questions
If I am unable to pay the full amount by the date shown on the notice, will I have to pay interest on the entire amount?
If you pay the balance due by the date on the notice you won’t be charged interest. If you don’t pay the full amount due by the date on the notice, interest will be charged on the unpaid portion.
If interest is charged, will it be computed from the original due date of the return?
No, interest starts from the balance due date shown under the "Billing Summary."
Will I be assessed a late payment penalty on the unpaid amount?
If you're unable to pay the amount shown in this specific notice due to circumstances beyond your control, please contact us at 1-800-829-0922. Depending on your situation, your penalty may be abated. It’s important that you contact us if you're unable to pay the full amount by the due date on the notice.
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The Taxes 2012
Taxes 2012 Publication 531 - Introductory Material Table of Contents Future Developments What's New Reminder IntroductionOrdering forms and publications. Taxes 2012 Tax questions. Taxes 2012 Future Developments For the latest information about developments related to Publication 531, such as legislation enacted after this publication was published, go to www. Taxes 2012 irs. Taxes 2012 gov/pub531. Taxes 2012 What's New Additional Medicare Tax. Taxes 2012 Beginning in 2013, a 0. Taxes 2012 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. Taxes 2012 An employer is required to withhold Additional Medicare Tax on any Medicare wages or RRTA compensation it pays to an employee in excess of $200,000 in a calendar year without regard to the employee's filing status. Taxes 2012 An employer is required to begin withholding Additional Medicare Tax in the pay period in which it pays wages or compensation in excess of $200,000 to an employee and continue to withhold it until the end of the calendar year. Taxes 2012 Additional Medicare Tax is only imposed on the employee. Taxes 2012 There is no employer share of Additional Medicare Tax. Taxes 2012 All wages and compensation that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Taxes 2012 Tips are subject to Additional Medicare Tax withholding, if, in combination with other wages paid by the employer, they exceed the $200,000 withholding threshold. Taxes 2012 Similarly, tips are subject to Additional Medicare Tax withholding, if, in combination with other RRTA compensation paid by the employer, they exceed the $200,000 withholding threshold. Taxes 2012 For more information on Additional Medicare Tax, go to www. Taxes 2012 irs. Taxes 2012 gov and enter “Additional Medicare Tax” in the search box. Taxes 2012 Reminder Photographs of missing children. Taxes 2012 The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Taxes 2012 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Taxes 2012 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Taxes 2012 Introduction This publication is for employees who receive tips. Taxes 2012 All tips you receive are income and are subject to federal income tax. Taxes 2012 You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement. Taxes 2012 The value of noncash tips, such as tickets, passes, or other items of value, is also income and subject to tax. Taxes 2012 Reporting your tip income correctly is not difficult. Taxes 2012 You must do three things. Taxes 2012 Keep a daily tip record. Taxes 2012 Report tips to your employer. Taxes 2012 Report all your tips on your income tax return. Taxes 2012 This publication will explain these three things and show you what to do on your tax return if you have not done the first two. Taxes 2012 This publication will also show you how to treat allocated tips. Taxes 2012 Comments and suggestions. Taxes 2012 We welcome your comments about this publication and your suggestions for future editions. Taxes 2012 You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Taxes 2012 NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Taxes 2012 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Taxes 2012 You can send your comments from www. Taxes 2012 irs. Taxes 2012 gov/formspubs/. Taxes 2012 Click on “More Information” and then on “Comment on Tax Forms and Publications”. Taxes 2012 Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Taxes 2012 Ordering forms and publications. Taxes 2012 Visit www. Taxes 2012 irs. Taxes 2012 gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Taxes 2012 Internal Revenue Service 1201 N. Taxes 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Taxes 2012 If you have a tax question, check the information available on IRS. Taxes 2012 gov or call 1-800-829-1040. Taxes 2012 We cannot answer tax questions sent to either of the above addresses. Taxes 2012 Prev Up Next Home More Online Publications