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Taxes help 32. Taxes help   Crédito por Gastos del Cuidado de Menores y Dependientes Table of Contents Recordatorios Introduction Useful Items - You may want to see: Requisitos Para Reclamar el CréditoRequisitos de la Persona Calificada Requisito del Ingreso del Trabajo Requisito de Gastos Relacionados con el Trabajo Requisito de la Declaración Conjunta Requisito de Identificación del Proveedor de Cuidados Cómo Calcular el CréditoCómo Calcular el Total de los Gastos Relacionados con el Trabajo Límite del Ingreso del Trabajo Límite de Dinero Cantidad de Crédito Cómo Reclamar el CréditoCrédito tributario no reembolsable. Taxes help Impuestos sobre la Nómina para Empleadores de Empleados Domésticos Recordatorios Se necesita un Número de Identificación del Contribuyente (TIN, por sus siglas en inglés) para cada persona calificada. Taxes help  Tiene que incluir el nombre y el número de identificación del contribuyente (el cual suele ser el número de Seguro Social) de cada persona calificada en la línea 2 del Formulario 2441. Taxes help Vea Número de identificación del contribuyente , bajo Requisitos de la Persona Calificada , más adelante. Taxes help Podría verse obligado a pagar los impuestos sobre la nómina. Taxes help  Si le paga a alguien para que venga a cuidar de su dependiente o de su cónyuge en su casa, puede que a usted se le considere un empleador de empleados domésticos, que deba pagar impuestos sobre la nómina. Taxes help Por lo general, no se le considera un empleador de empleados domésticos si la persona que cuida de su dependiente o de su cónyuge lleva a cabo este servicio en su propio domicilio (él de dicha persona) o en su lugar de negocios. Taxes help Vea Impuestos sobre la Nómina para Empleadores de Empleados Domésticos , más adelante. Taxes help Introduction Este capítulo trata del crédito por gastos de cuidado de menores y dependientes y trata los siguientes temas: Los requisitos que uno tiene que reunir para reclamar el crédito. Taxes help Cómo calcular el crédito. Taxes help Cómo reclamar el crédito. Taxes help Impuestos sobre la nómina que usted podría verse obligado a pagar como empleador de empleados domésticos. Taxes help Quizás pueda reclamar el crédito por gastos del cuidado de menores y dependientes si le paga a alguien para que cuide a un dependiente menor de 13 años de edad, o a su cónyuge o dependiente incapacitado que no pueda cuidar de sí mismo. Taxes help El crédito puede ser hasta el 35% de sus gastos. Taxes help Para tener derecho al crédito, usted debe encontrarse obligado a pagar estos gastos para poder trabajar o buscar trabajo. Taxes help Este crédito no se debe confundir con el crédito tributario por hijos, el cual se describe en el capítulo 34. Taxes help Beneficios para el cuidado de dependientes. Taxes help   Si usted recibió de su empleador algún beneficio durante el año que era para el cuidado de dependientes, usted quizás pueda excluir de sus ingresos una parte o el total de dicho beneficio. Taxes help Tiene que completar la Parte III del Formulario 2441, antes de poder calcular la cantidad de su crédito. Taxes help Vea Beneficios para el Cuidado de Dependientes bajo Cómo Calcular el Crédito , más adelante. Taxes help Useful Items - You may want to see: Publicación 501 Exemptions, Standard Deduction, and Filing Information (Exenciones, deducción estándar e información para la presentación de la declaración), en inglés 503 Child and Dependent Care Expenses (Gastos del cuidado de menores y dependientes), en inglés 926 Household Employer's Tax Guide (Guía de impuestos para empleadores de empleados domésticos), en inglés Formulario (e Instrucciones) 2441 Child and Dependent Care Expenses (Gastos del cuidado de menores y dependientes), en inglés Anexo H (Formulario 1040) Household Employment Taxes (Impuestos sobre la nómina correspondiente a empleados domésticos), en inglés W-7(SP) Solicitud del Número de Identificación Personal del Contribuyente del Servicio de Impuestos Internos W-10 Dependent Care Provider's Identification and Certification (Identificación y certificación del proveedor del cuidado de dependientes), en inglés Requisitos Para Reclamar el Crédito Para poder reclamar el crédito por gastos del cuidado de menores y dependientes, usted tiene que presentar el Formulario 1040 o el Formulario 1040A, pero no el Formulario 1040EZ y, además, cumplir todos los requisitos siguientes: El cuidado tiene que ser provisto a una, o más de una, persona calificada; la cual debe estar identificada en el Formulario 2441, Child and Dependent Care Expenses (Gastos del Cuidado de Menores y Dependientes), en inglés. Taxes help Vea más adelante Requisitos de la Persona Calificada . Taxes help Usted (y su cónyuge si presentan una declaración conjunta) tiene que haber recibido ingresos del trabajo durante el año. Taxes help Sin embargo, vea más adelante el tema Regla para cónyuge estudiante o cónyuge incapacitado para cuidar de sí mismo bajo Requisito del Ingreso del Trabajo. Taxes help Tiene que pagar gastos del cuidado de menores y dependientes para que usted (y su cónyuge, si presentan una declaración conjunta) pueda trabajar o buscar trabajo. Taxes help Vea más adelante Requisito de Gastos Relacionados con el Trabajo . Taxes help Tiene que hacer los pagos por gastos del cuidado de menores y dependientes a alguien que ni usted ni su cónyuge puedan declarar como dependiente. Taxes help Si le hace pagos a su hijo, dicho hijo no puede ser su dependiente y éste tiene que tener 19 años de edad o más al final del año. Taxes help Los pagos no se le pueden hacer: A su cónyuge ni Al padre o madre de la persona calificada, si éste es su hijo y tiene menos de 13 años de edad. Taxes help Vea más adelante Pagos a Parientes o Dependientes bajo Requisito de Gastos Relacionados con el Trabajo . Taxes help Su estado civil para la declaración puede ser soltero, cabeza de familia, o viudo que reúne los requisitos con hijo dependiente. Taxes help Si está casado, debe presentar una declaración conjunta, a menos que le corresponda alguna excepción. Taxes help Vea Requisito de la Declaración Conjunta , más adelante. Taxes help Tiene que identificar en la declaración a la persona o institución que le proporciona los cuidados. Taxes help Vea más adelante, Requisito de Identificación del Proveedor de Cuidados . Taxes help Si excluye o deduce beneficios de un plan de beneficios para el cuidado de dependientes provisto para ese propósito, la cantidad total que excluya o deduzca tiene que ser menos de la cantidad límite de dólares por gastos calificados (por lo general, $3,000 si se trata de una persona calificada que recibió el cuidado, o $6,000 si el cuidado fue para dos o más personas calificadas). Taxes help Si el cuidado fue para dos o más personas calificadas, la cantidad que excluya o deduzca siempre será menos del límite de dólares, ya que la cantidad total que puede excluir o deducir está limitada a $5,000. Taxes help Vea Reducción del Límite de Dinero bajo Cómo Calcular el Crédito , más adelante. Taxes help Estos requisitos se presentan en la Figura 32–A y también se explican en detalle en este capítulo. Taxes help Requisitos de la Persona Calificada Los gastos del cuidado de menores y dependientes tienen que haberse incurrido por el cuidado de una o más personas calificadas. Taxes help Una persona calificada es: Un hijo calificado que es su dependiente y que tenía menos de 13 años de edad cuando se le prestó el cuidado (pero vea Hijo de padres divorciados o separados o que viven aparte , más adelante) Su cónyuge que no estaba física o mentalmente capaz de cuidar de sí mismo y que vivió con usted por más de la mitad del año o Una persona que no estaba física o mentalmente capaz de cuidar de sí misma, vivió con usted por más de la mitad del año y: Era su dependiente o Hubiera sido su dependiente excepto que: recibió $3,900 o más de ingresos brutos, presentó una declaración conjunta o usted, o su cónyuge si presentaron una declaración conjunta, pudo ser declarado como dependiente en la declaración de impuestos del año 2013 de otra persona. Taxes help Definición de dependiente. Taxes help   Un dependiente es una persona, que no sea usted ni su cónyuge, por la cual puede declarar una exención. Taxes help Para ser su dependiente, una persona tiene que ser su hijo calificado (o su pariente calificado). Taxes help Hijo calificado. Taxes help   Para ser su hijo calificado, un hijo tiene que vivir con usted durante más de la mitad del año y reunir otros requisitos. Taxes help Información adicional. Taxes help   Para más información sobre quién es su dependiente o hijo calificado, vea el capítulo 3. Taxes help Persona que no estaba física o mentalmente capaz de cuidar de sí misma. Taxes help   Las personas que no pueden vestirse, lavarse o alimentarse por sí solas debido a problemas físicos o mentales son consideradas incapacitadas para cuidar de sí mismas. Taxes help También se consideran incapacitadas para cuidar de sí mismas las personas que tienen que ser cuidadas en todo momento para impedir que se lastimen a sí mismas o a los demás. Taxes help Figura 32–A. Taxes help ¿Puede usted reclamar el Crédito? ¿Puede usted reclamar el crédito? Persona que reúne los requisitos por parte del año. Taxes help   Se determina si una persona reúne o no los requisitos a diario. Taxes help Por ejemplo, si la persona por la cual usted paga los gastos del cuidado de menores y dependientes deja de reunir los requisitos el 16 de septiembre, cuente sólo los gastos hasta el 15 de septiembre, inclusive. Taxes help Vea también Límite annual bajo Límite de Dinero , más adelante. Taxes help Nacimiento o fallecimiento de una persona que reúna los demás requisitos. Taxes help   Al determinar si una persona es persona calificada, se considera que una persona que nació o falleció en 2013 vivió con usted durante más de la mitad del año 2013 si su vivienda (la de usted) fue la vivienda de dicha persona más de la mitad del tiempo que estuvo viva en 2013. Taxes help Número de identificación del contribuyente. Taxes help   Tiene que incluir en su declaración el nombre y el número de identificación del contribuyente (generalmente es el número del Seguro Social) de la(s) persona(s) calificada(s). Taxes help Si no indica la información correcta en la declaración, el crédito podría ser reducido o denegado. Taxes help Número de identificación de contribuyente individual para extranjeros. Taxes help   Si la persona calificada es extranjero residente, o extranjero no residente que no tiene y no puede obtener un número del Seguro Social (SSN, por sus siglas en inglés), use el número de identificación de contribuyente (ITIN, por sus siglas en inglés) de esa persona. Taxes help El ITIN se anota en todo espacio donde se requiera que se escriba un SSN en una declaración de impuestos. Taxes help Para solicitar un ITIN, consulte el Formulario W-7(SP) (o el Formulario W-7, en inglés). Taxes help   El ITIN se utiliza solamente para propósitos tributarios. Taxes help El mismo no le da al portador el derecho de recibir beneficios del Seguro Social ni cambia el estado del portador en cuanto a empleo o estado migratorio, de acuerdo con las leyes de los Estados Unidos. Taxes help Número de identificación del contribuyente en proceso de adopción. Taxes help   Si la persona calificada es un hijo que ha sido puesto a cargo de usted para adopción y para el cual usted no tiene un SSN, tiene que obtener un número de identificación del contribuyente en proceso de adopción (ATIN, por sus siglas en inglés) para el hijo. Taxes help Presente el Formulario W-7A, Application for Taxpayer Identification Number for Pending U. Taxes help S. Taxes help Adoptions (Solicitud de número de identificación del contribuyente para adopciones pendientes en los Estados Unidos), en inglés. Taxes help Hijo de padres divorciados o separados o que viven aparte. Taxes help   Aunque no pueda declarar a su hijo como dependiente, su hijo es tratado como su persona calificada si: El hijo tenía menos de 13 años de edad o estaba física o mentalmente incapacitado para cuidar de sí mismo, El hijo recibió más de la mitad de la manutención durante el año natural de parte de uno o ambos padres que son divorciados, o legalmente separados bajo un fallo de divorcio o de manutención por separación judicial, están separados conforme a un acuerdo de separación judicial escrito, o vivieron aparte en todo momento durante los últimos 6 meses del año natural, El hijo estuvo bajo la custodia de uno o ambos padres durante más de la mitad del año y Usted era el padre o madre que tuvo custodia. Taxes help   Se considera que el padre con quien el hijo vivió la mayor cantidad de noches en 2013 es el padre con custodia. Taxes help Si el hijo estaba con cada padre una cantidad igual de noches, el padre con custodia es aquél que tiene el ingreso bruto ajustado mayor. Taxes help Para más detalles e información sobre la excepción para padres que trabajan de noche, vea la Publicación 501, en inglés. Taxes help   El padre que no tiene custodia del hijo no puede tratarle a éste como su persona calificada, a pesar de que tenga derecho para reclamarle al hijo como dependiente conforme a las reglas especiales para hijos de padres divorciados o separados. Taxes help Requisito del Ingreso del Trabajo Para reclamar el crédito, usted (y su cónyuge, si presenta una declaración conjunta) tiene que haber recibido ingreso del trabajo durante el año. Taxes help Ingreso del trabajo. Taxes help   El ingreso del trabajo incluye sueldos, salarios, propinas, cualquier otra retribución tributable recibida como empleado, y los ingresos netos del trabajo por cuenta propia. Taxes help Las pérdidas netas del empleo por cuenta propia reducen el ingreso del trabajo. Taxes help El ingreso del trabajo también incluye indemnizaciones por huelga y toda compensación por incapacidad que haya declarado como salario. Taxes help   Generalmente, sólo se incluye esa compensación que es tributable. Taxes help Sin embargo, uno puede elegir incluir paga por combate no sujeta a impuestos en el ingreso del trabajo. Taxes help Si presenta una declaración conjunta y tanto usted como su cónyuge recibieron paga no tributable por combate, cada uno de ustedes puede hacer su propia elección. Taxes help (O sea, si uno de ustedes hace la elección, el otro también la puede hacer pero no es requerido). Taxes help Debería calcular el crédito de ambas maneras y hacer la elección si le da el mayor beneficio tributario. Taxes help Miembros de ciertas religiones opuestas al Seguro Social. Taxes help   Esas personas que son miembros de ciertas religiones que se oponen a participar en programas de la Ley del Seguro Social y que tienen un formulario aprobado por el IRS que excluya ciertos ingresos de los impuestos del Seguro Social y Medicare pueden tratar ciertos ingresos como si no fueran ingresos del trabajo, para este propósito. Taxes help Vea Earned Income Test (Requisito del ingreso del trabajo), en la Publicación 503, en inglés. Taxes help Ingreso no derivado del trabajo. Taxes help   El ingreso del trabajo no incluye: Pensiones y anualidades, Beneficios del Seguro Social ni beneficios de jubilación para empleados ferroviarios, Compensación del seguro obrero, Intereses ni dividendos, Compensación por desempleo, Becas de estudios ni becas de desarrollo profesional, salvo las que se declaren en el Formulario W-2 pagadas a usted por haber trabajado en la enseñanza o por algún otro servicio, Pagos por trabajo requerido por el bienestar social no sujetos a impuesto, Pagos de manutención para hijos menores que usted haya recibido, Ingreso de extranjeros no residentes no relacionado con una ocupación o negocio estadounidense, o Toda cantidad recibida por trabajo hecho mientras estaba recluido en una institución penal. Taxes help Regla para cónyuge estudiante o cónyuge que no es capaz de cuidar de sí mismo. Taxes help   Se considera que su cónyuge tiene ingreso del trabajo en cualquier mes en que el mismo: Sea estudiante a tiempo completo o No esté física o mentalmente capaz de cuidar de sí mismo. Taxes help Su cónyuge también tiene que vivir con usted durante más de la mitad del año. Taxes help   Si usted va a presentar una declaración conjunta, esta regla también es aplicable. Taxes help Usted puede ser tratado como si hubiera obtenido ingreso del trabajo por cualquier mes en el que es un estudiante a tiempo completo o no es capaz de cuidar de sí mismo. Taxes help   Calcule el ingreso del trabajo del cónyuge que no trabaja, descrito en los apartados (1) o (2) anteriores, tal como se indica más adelante en la sección titulada Límite del Ingreso del Trabajo . Taxes help   Esta regla es aplicable a un solo cónyuge durante cualquier mes del año. Taxes help Si, en el mismo mes, ni usted ni su cónyuge trabajan, pero son estudiantes a tiempo completo o no están física o mentalmente capaces de cuidar de sí mismos, se considera que solamente uno de ustedes ha recibido ingreso del trabajo en ese mes. Taxes help Estudiante a tiempo completo. Taxes help   Se considera que usted es estudiante a tiempo completo si se ha matriculado en una escuela por el número de horas o cursos que la misma considere asistencia a tiempo completo. Taxes help Tiene que haber sido estudiante a tiempo completo durante alguna parte de cada uno de un mínimo de 5 meses del año natural durante el año. Taxes help Dichos meses no tienen que ser consecutivos. Taxes help Escuela. Taxes help   El término “escuela” comprende escuelas secundarias, escuelas universitarias (colleges), universidades y escuelas técnicas, profesionales e industriales. Taxes help No se considera que un curso de capacitación en el empleo, escuela por correspondencia, ni escuelas por Internet sean escuelas, para este propósito. Taxes help Requisito de Gastos Relacionados con el Trabajo Los gastos de cuidado de menores y dependientes tienen que estar relacionados con el trabajo para que usted tenga derecho al crédito. Taxes help Los gastos se consideran relacionados con el trabajo solamente si se cumplen las dos condiciones siguientes: Le permiten a usted (y a su cónyuge si presentan una declaración conjunta) trabajar o buscar trabajo. Taxes help Son para el cuidado de una persona calificada. Taxes help Si Trabaja o Busca Trabajo Para ser relacionados con el trabajo, sus gastos tendrán que permitirle trabajar o buscar trabajo. Taxes help Si está casado, generalmente tanto usted como su cónyuge tienen que trabajar o estar buscando trabajo. Taxes help A un cónyuge se le considera empleado durante cualquier mes en que sea estudiante a tiempo completo o esté física o mentalmente incapaz de cuidar de sí mismo. Taxes help Puede trabajar para otra persona o por cuenta propia como dueño único o en sociedad colectiva. Taxes help Su empleo puede ser a tiempo completo o a tiempo parcial. Taxes help También se le considera empleado si está buscando trabajo activamente. Taxes help Sin embargo, si no encuentra empleo y no tiene ingreso del trabajo ese año, no puede reclamar este crédito. Taxes help Vea Requisito del Ingreso del Trabajo , anteriormente. Taxes help Un gasto no se considera relacionado con el trabajo simplemente porque incurrió en el mismo mientras estaba trabajando. Taxes help Su razón por incurrir en el gasto tiene que ser para permitirle a usted trabajar. Taxes help Son los hechos los que determinan si sus gastos son para permitirle trabajar o buscar trabajo. Taxes help Ejemplo 1. Taxes help El costo de una niñera mientras usted y su cónyuge salen a comer no suele ser un gasto relacionado con el trabajo. Taxes help Ejemplo 2. Taxes help Usted trabaja durante el día. Taxes help Su cónyuge trabaja por la noche y duerme por el día. Taxes help Usted paga por el cuidado de su hijo de 5 años de edad durante las horas en las que usted trabaja y su cónyuge duerme. Taxes help Estos gastos se consideran gastos de trabajo. Taxes help Trabajo voluntario. Taxes help    Para este propósito, a usted no se le considera empleado si hace trabajo voluntario no pagado o por un salario nominal. Taxes help Trabajo parte del año. Taxes help   Si trabaja o busca trabajo activamente durante solamente parte del período cubierto por los gastos, entonces tiene que calcular los gastos de cada día. Taxes help Por ejemplo, si trabaja todo el año y sus gastos de cuidado son de $250 al mes ($3,000 para el año), todos los gastos están relacionados con el trabajo. Taxes help Sin embargo, si trabaja o busca trabajo por sólo 2 meses y 15 días durante el año y paga gastos de $250 al mes, sus gastos relacionados con el trabajo se limitan a $625 (2 meses y medio x $250). Taxes help Ausencia temporal del trabajo. Taxes help   En caso de una ausencia temporal y breve del trabajo, como vacaciones o una enfermedad leve, no tiene que calcular los gastos por cada día, si le resulta de todos modos necesario pagar por cuidados durante ese período. Taxes help En vez de eso, puede calcular el crédito incluyendo los gastos que pagó durante el período de ausencia. Taxes help   Una ausencia de 2 semanas o menos se considera una ausencia temporal y breve. Taxes help Una ausencia de más de 2 semanas podría considerarse una ausencia temporal y breve, según las circunstancias. Taxes help Ejemplo. Taxes help Para poder trabajar, usted paga a una niñera para que cuide de su hijo de 2 años e hija de 4 años de edad. Taxes help Usted se enferma y falta al trabajo 4 meses, pero recibe compensación por enfermedad. Taxes help Sigue pagando a la niñera por cuidar de sus hijos mientras está enferma. Taxes help La ausencia no se considera temporal y breve y los gastos no se consideran gastos relacionados con el trabajo. Taxes help Trabajo a tiempo parcial. Taxes help   Si trabaja a tiempo parcial, normalmente tiene que calcular los gastos por cada día. Taxes help No obstante, si tiene que pagar por cuidados semanal o mensualmente, o de algún otro modo que incluya días trabajados y no trabajados, puede calcular el crédito incluyendo los gastos que pagó por los días no trabajados. Taxes help Todo día en el que trabaje por lo menos 1 hora se considera día de trabajo. Taxes help Ejemplo 1. Taxes help Trabaja 3 días a la semana. Taxes help Mientras trabaja, le cuidan a su hijo de 6 años de edad en un centro de cuidados para dependientes, que cumple todos los reglamentos estatales y locales. Taxes help El centro cobra a tasas de $150 por cualesquiera 3 días de la semana o $250 por 5 días a la semana. Taxes help A su hijo le cuidan en el centro 5 días a la semana. Taxes help Los gastos relacionados con el trabajo se limitan a $150 a la semana. Taxes help Ejemplo 2. Taxes help Los hechos son los mismos del Ejemplo 1 salvo que el centro no brinda la opción de pagar por solo 3 días. Taxes help El cargo semanal completo de $250 podría ser un gasto relacionado con el trabajo. Taxes help Cuidado de una Persona Calificada Para tener gastos que se consideran relacionados con el trabajo, tiene que haber incurrido en los mismos para proveer cuidados a una persona calificada. Taxes help No se le requiere escoger la manera más barata de proveer dichos cuidados. Taxes help El costo de un proveedor de cuidados remunerado podría ser un gasto por cuidar de una persona calificada aun si se pudiera haber conseguido otro proveedor de cuidados sin costo alguno. Taxes help Se considera que los gastos son para el cuidado de una persona calificada sólo si el motivo prinicipal de dichos gastos es el bienestar y la protección de esa persona. Taxes help Los gastos para servicios domésticos reúnen los requisitos si una parte de dichos servicios es el cuidado de personas calificadas. Taxes help Vea Servicios domésticos , más adelante. Taxes help Gastos que no son por cuidados. Taxes help   Los gastos para el cuidado no incluyen cantidades que pague por concepto de comida, alojamiento, ropa, educación y entretenimiento. Taxes help Sin embargo, puede incluir cantidades pequeñas pagadas por estos artículos si las mismas están relacionadas con el costo del cuidado de la persona calificada, y no se pueden separar de dicho costo. Taxes help   Pagos de pensión para hijos menores no son de cuidado y no reúne los requisitos del crédito. Taxes help Educación. Taxes help   Los gastos incurridos por un niño que está en una guardería infantil, un parvulario o programas similares para niños que estén por debajo del nivel de kindergarten, se consideran gastos de cuidado. Taxes help Los gastos para la asistencia al kindergarten o para grados superiores no se consideran gastos de cuidado. Taxes help No use estos gastos para calcular el crédito. Taxes help   Sin embargo, los gastos de cuidado del niño antes o después de la escuela si asiste al kindergarten o a un grado superior podrían considerarse gastos por cuidado de dependientes. Taxes help   Las clases de verano y programas de clases particulares no se consideran cuidado de dependientes. Taxes help Ejemplo 1. Taxes help Usted lleva a su hijo de 3 años de edad a una guardería infantil que provee almuerzo y actividades educativas como parte de su servicio de cuidado para niños de edad preescolar. Taxes help El almuerzo y las actividades educativas están relacionados con el cuidado de su hijo y el costo de los mismos no se puede separar del costo del cuidado. Taxes help Puede incluir el costo total cuando calcule el crédito. Taxes help Ejemplo 2. Taxes help Usted inscribe a su hijo de 10 años de edad en una escuela de internado para poder trabajar a tiempo completo. Taxes help Sólo la parte del gasto de la escuela de internado que corresponde al cuidado de su hijo se considera un gasto relacionado con el trabajo. Taxes help Puede incluir esa parte del gasto al calcular su crédito, si la misma se puede separar del costo de educación. Taxes help No puede incluir parte alguna de la cantidad que usted pague a la escuela por la educación de su hijo. Taxes help Cuidado fuera de su domicilio. Taxes help   Puede incluir el costo del cuidado provisto fuera de su domicilio si dicho cuidado es para un dependiente que tenga menos de 13 años de edad o alguna otra persona calificada que habitualmente pasa por lo menos 8 horas al día en la casa de usted. Taxes help Centro de cuidado para dependientes. Taxes help   Puede incluir el costo de cuidados provistos fuera de su domicilio por un centro de cuidados para dependientes sólo si el centro cumple con todas las reglas o normas locales y estatales correspondientes a estos centros. Taxes help   Un centro de cuidados para dependientes es un lugar que provee cuidados a más de 6 personas (que no sean personas que vivan allí) y recibe una compensación, pago o subvención por proveer servicios para cualquiera de esas personas, aun cuando el centro no tenga fines de lucro. Taxes help Campamento. Taxes help   El costo de mandar a su hijo a un campamento en el que pase la noche no se considera un gasto relacionado con el trabajo. Taxes help El costo de mandar a su hijo a un campamento de día podría ser un gasto relacionado con el trabajo, aunque el campamento se especialice en una actividad específica, como computadoras o fútbol. Taxes help Transporte. Taxes help   Si un proveedor de cuidados lleva a una persona calificada desde o hasta el lugar de cuidado, se considera que dicho transporte es gasto de cuidado de la persona calificada. Taxes help Esto incluye transporte en autobús, metro, taxi o auto privado. Taxes help Sin embargo, el transporte que no sea proporcionado por un proveedor de cuidados no se considera gasto de cuidado de la persona calificada. Taxes help Además, si usted paga el costo del transporte de la persona que provee el cuidado para que venga a su casa, dicho gasto no se considera gasto de cuidado de la persona calificada. Taxes help Cargos y depósitos. Taxes help   Los cargos pagados a una agencia para obtener servicios de un proveedor de cuidados, los depósitos pagados a una agencia o parvulario, los cargos de solicitud y otros gastos indirectos se consideran gastos relacionados con el trabajo si uno tiene que pagarlos para recibir los cuidados, aun si no se pagan directamente por dichos cuidados. Taxes help Sin embargo, un depósito al que haya perdido el derecho no se considera gasto de cuidado de una persona calificada si de hecho no se provee dicho cuidado. Taxes help Ejemplo 1. Taxes help Pagó un cargo a una agencia para recibir los servicios de la niñera que cuida a su hija de 2 años de edad mientras usted trabaja. Taxes help El cargo que usted pagó se considera un gasto relacionado con el trabajo. Taxes help Ejemplo 2. Taxes help Pagó un depósito a un parvulario para reservar una plaza para su hijo de 3 años de edad. Taxes help Después, envió su hijo a otro parvulario y por lo tanto perdió el derecho al depósito. Taxes help El depósito al que ya no tiene derecho no es gasto por cuidados que de hecho se proveyeron y por lo tanto no se considera un gasto relacionado con el trabajo. Taxes help Servicios domésticos. Taxes help   Los gastos que usted paga por servicios domésticos reúnen los requisitos como gastos relacionados con el trabajo si los mismos son, por lo menos en parte, para el bienestar y la protección de la persona calificada. Taxes help   Se considera que esos servicios domésticos son servicios comunes y habituales, provistos en su casa y alrededor de la misma, que sean necesarios para mantener la casa. Taxes help Los mismos incluyen servicios de un ama de casa, criada, o cocinero. Taxes help Sin embargo, los servicios domésticos no incluyen un chófer, camarero o jardinero. Taxes help Vea Household Services (Servicios Domésticos), en la Publicación 503, en inglés, para más información. Taxes help   En este capítulo, el término ama de casa se refiere a cualquier empleado doméstico cuyos servicios incluyan el cuidado de una persona calificada. Taxes help Impuestos pagados sobre el salario. Taxes help   Los impuestos pagados sobre el salario por servicios del cuidado de menores y dependientes calificados son gastos relacionados con el trabajo. Taxes help Vea Impuestos sobre la nómina para Empleadores de Empleados Domésticos , más adelante. Taxes help Pagos a Parientes o Dependientes Usted puede incluir pagos relacionados con el trabajo que usted hizo a sus parientes que no son sus dependientes, aun si los mismos viven en su vivienda. Taxes help Sin embargo, no incluya ninguna cantidad que pague a: Un dependiente por quien usted (o su cónyuge, si presentan una declaración conjunta) pueda declarar una exención, Un hijo suyo que tuviera menos de 19 años de edad al final del año, aun si no es dependiente suyo, Una persona que fuera su cónyuge en cualquier momento del año ni Al padre o a la madre de la persona calificada si es hijo de usted y tiene menos de 13 años de edad. Taxes help Requisito de la Declaración Conjunta Por regla general, las parejas casadas tienen que presentar una declaración conjunta para poder reclamar el crédito. Taxes help Sin embargo, si usted está legalmente separado de su cónyuge o no vive con su cónyuge, quizás pueda presentar una declaración por separado y aún reclamar el crédito. Taxes help Si está legalmente separado. Taxes help   Si está legalmente separado de su cónyuge conforme a un fallo de divorcio o de manutención por separación judicial, no se le considera casado. Taxes help Podría tener derecho a reclamar el crédito en su declaración utilizando el estado civil de cabeza de familia. Taxes help Casados que viven aparte. Taxes help   No se le considera casado y tendrá derecho al crédito si reúne todas las condiciones siguientes: Presenta una declaración separada de su cónyuge. Taxes help Su vivienda es la vivienda de una persona calificada durante más de la mitad del año. Taxes help Usted paga más de la mitad del costo de mantener su hogar durante el año. Taxes help Su cónyuge no vive en el hogar de usted durante los últimos 6 meses del año. Taxes help Gastos de mantenimiento de la vivienda. Taxes help   Los gastos de mantenimiento de la vivienda suelen incluir impuestos sobre la propiedad, intereses hipotecarios, alquiler, cargos por servicios públicos, reparaciones en la vivienda, seguros para la vivienda, y alimentos consumidos en la vivienda. Taxes help   Los gastos de mantenimiento de la vivienda no incluyen pagos por ropa, educación, tratamiento médico, vacaciones, seguro de vida, transporte ni capital hipotecario. Taxes help   Tampoco incluyen la compra, mejoras permanentes ni reemplazo de propiedad. Taxes help Por ejemplo, usted no puede incluir los gastos de reemplazar un calentador de agua. Taxes help Sin embargo, sí puede incluir los gastos de reparar un calentador de agua. Taxes help Fallecimiento del cónyuge. Taxes help   Si su cónyuge fallece durante el año y usted no se vuelve a casar antes del final del año, por lo general, debe presentar una declaración conjunta para poder reclamar el crédito. Taxes help Si se vuelve a casar antes del final del año, puede reclamar el crédito en la declaración de su cónyuge fallecido. Taxes help Requisito de Identificación del Proveedor de Cuidados Tiene que identificar a todas las personas u organizaciones que provean cuidados para su hijo o dependiente. Taxes help Use la Parte I del Formulario 2441 para mostrar la información. Taxes help Si no tiene proveedores de cuidados y presenta el Formulario 2441 sólo para declarar ingresos tributables en la Parte III, anote “none” (ninguno) en la columna (a) de la línea 1. Taxes help Información que se necesita. Taxes help   Para identificar al proveedor del cuidado, tiene que dar la siguiente información sobre el proveedor: Nombre, Dirección y Número de identificación del contribuyente. Taxes help   Si el proveedor del cuidado es una persona física, el número de identificación del contribuyente es su número de Seguro Social o su número de identificación del contribuyente individual. Taxes help Si el proveedor del cuidado es una organización, entonces es su número de identificación del empleador (EIN, por sus siglas en inglés). Taxes help   No tiene que mostrar el número de identificación del contribuyente si el proveedor del cuidado es una organización exenta de impuestos (tal como una iglesia o escuela). Taxes help En este caso, escriba “Tax-Exempt” (Exento de impuestos) en el espacio donde el Formulario 2441 pide el número. Taxes help   Si no puede proveer toda la información o si dicha información es incorrecta, tiene que demostrar que usted actuó con debida diligencia (de la cual se habla más adelante) al tratar de facilitar la información necesaria. Taxes help Cómo obtener la información. Taxes help   Puede usar el Formulario W-10 para solicitar la información requerida del proveedor de cuidados. Taxes help Si no usa el Formulario W-10, puede obtener la información de una de las fuentes de información indicadas en las instrucciones del Formulario W-10, incluyendo: Una copia de la tarjeta del Seguro Social del proveedor, Una copia completada del Formulario W-4(SP) (o el Formulario W-4, en inglés) del proveedor de cuidados si éste es su empleado doméstico, Una copia del informe proporcionado por su empleador, si el proveedor es el plan de cuidado de dependientes de su empleador o Una carta o factura del proveedor si la información se muestra en ella. Taxes help    Debería mantener esta información como documentación de su historial tributario. Taxes help No envíe el Formulario W-10 (ni otros documentos que contengan esta información) al Servicio de Impuestos Internos (Internal Revenue Service). Taxes help Debida diligencia. Taxes help   Si la información acerca del proveedor de cuidados que usted proporcione es incorrecta o incompleta, es posible que no se le permita reclamar el crédito. Taxes help Sin embargo, si usted puede demostrar haber actuado con debida diligencia al tratar de dar la información, todavía podrá reclamar el crédito. Taxes help   Puede demostrar debida diligencia obteniendo y manteniendo un Formulario W-10 completado del proveedor o una de las fuentes de información enumeradas anteriormente. Taxes help Los proveedores de cuidados pueden ser sancionados si no le proporcionan esta información a usted, o si proporcionan información incorrecta. Taxes help Negativa del proveedor a dar información. Taxes help   Si el proveedor se niega a darle la información de identificación, usted debería declarar la información que tenga disponible (tal como el nombre y dirección) en el Formulario 2441. Taxes help Escriba “See Attached Statement” (Vea aclaración adjunta) en las columnas que piden la información que no tenga. Taxes help Luego adjunte una aclaración que explique que le solicitó la información al proveedor de cuidados, pero que el mismo no le dio la información. Taxes help Asegúrese de anotar su nombre y número de Seguro Social en la aclaración. Taxes help Dicha aclaración mostrará que usted actuó con debida diligencia al tratar de dar la información necesaria. Taxes help Ciudadanos y extranjeros residentes de los Estados Unidos que viven en el extranjero. Taxes help   Si vive en el extranjero, es posible que su proveedor de cuidados no tenga, y que no esté obligado a conseguir, un número de identificación del contribuyente de los EE. Taxes help UU. Taxes help (por ejemplo, un número de Seguro Social o número de identificación del empleador). Taxes help De ser así, escriba “LAFCP” (siglas en inglés que significan Living Abroad Foreign Care Provider (Proveedor de cuidados extranjero que vive en el extranjero)) en el espacio correspondiente al número de identificación del contribuyente perteneciente al proveedor de cuidados. Taxes help Cómo Calcular el Crédito Su crédito es un porcentaje de sus gastos relacionados con el trabajo. Taxes help Sus gastos están sujetos al límite del ingreso del trabajo y al límite de dinero. Taxes help El porcentaje se basa en su ingreso bruto ajustado. Taxes help Cómo Calcular el Total de los Gastos Relacionados con el Trabajo Para calcular su crédito por gastos relacionados con el trabajo del año 2013, sume sólo aquellos gastos pagados hasta el 31 de diciembre del año 2013. Taxes help Gastos pagados por adelantado en un año anterior. Taxes help   Si paga por algún servicio antes de que se provea de hecho, podrá usar los gastos pagados por adelantado solamente en el año en que el cuidado fue recibido. Taxes help Declare los gastos en el año posterior como si de hecho fueran pagados en ese año posterior. Taxes help Gastos no pagados hasta el año siguiente. Taxes help   No cuente los gastos ocasionados en el año 2012 que usted pagó en el año 2013 como gastos relacionados con el trabajo en el año 2013. Taxes help Quizás pueda reclamar un crédito adicional por dichos gastos en su declaración de impuestos del año 2013, pero tiene que calcularlo por separado. Taxes help Vea Payments for prior year's expenses (Pagos por gastos del año anterior), bajo Amount of Credit (Cantidad del crédito) en la Publicación 503, en inglés. Taxes help    Si incurrió en gastos en el año 2013 que no pagó hasta el año 2014, no los puede incluir cuando calcule el crédito del año 2013. Taxes help Quizás pueda reclamar un crédito por esa cantidad en la declaración de impuestos del año 2014. Taxes help Gastos reembolsados. Taxes help   Si una agencia estatal de servicios sociales le paga una cantidad no tributable para reembolsarle algunos de sus gastos por el cuidado de su hijo o dependiente, no puede considerar esos gastos como gastos relacionados con el trabajo. Taxes help Ejemplo. Taxes help Usted pagó $3,000 en gastos relacionados con el trabajo. Taxes help Una agencia estatal de servicios sociales le reembolsa $2,000. Taxes help Puede usar sólamente $1,000 para calcular el crédito. Taxes help Gastos médicos. Taxes help   Algunos gastos por el cuidado de personas calificadas que no puedan cuidarse de sí mismas podrían reunir los requisitos para considerarse como gastos relacionados con el trabajo y también como gastos médicos. Taxes help Puede usarlos de la manera que prefiera, pero no puede usar los mismos gastos para reclamar un crédito y también para declarar una deducción por gastos médicos. Taxes help   Si usa estos gastos para calcular el crédito y son mayores que el límite del ingreso del trabajo o el límite de dinero, los cuales se explican más adelante, puede añadir a los gastos médicos la parte que excede del límite. Taxes help Sin embargo, si usa el total de sus gastos para calcular la deducción de sus gastos médicos, no puede usar ninguna parte de los mismos para calcular el crédito. Taxes help    Las cantidades que han sido excluidas de sus ingresos conforme al plan de cuidados de dependientes de su empleador no se pueden usar para declarar una deducción por gastos médicos. Taxes help Beneficios para el Cuidado de Dependientes Si recibe beneficios para el cuidado de dependientes, el límite de dinero para propósitos del crédito podría ser disminuido. Taxes help Vea más adelante Reducción del Límite de Dinero . Taxes help No obstante, aun si no puede reclamar el crédito, quizás pueda declarar una exclusión o deducción por los beneficios para el cuidado de dependientes. Taxes help Beneficios para el cuidado de dependientes. Taxes help   Los beneficios para el cuidado de dependientes incluyen: Cantidades que su empleador le pague directamente a usted o directamente al proveedor de cuidados por el cuidado de su persona calificada mientras usted trabaje, El valor justo de mercado del cuidado en una guardería provista o financiada por su empleador y Aportaciones hechas por usted antes de la tasación de impuestos a una cuenta de gastos flexible para el cuidado de dependientes. Taxes help Puede ser que su sueldo haya sido reducido para pagar esos beneficios. Taxes help Si recibió beneficios como empleado, éstos deberían estar anotados en el recuadro 10 de su Formulario W-2. Taxes help Vea Informe del empleado , más adelante. Taxes help Los beneficios que usted recibió como socio deberían estar anotados en el recuadro 13 de su Anexo K-1 (Formulario 1065) con el código O. Taxes help Anote la cantidad de dichos beneficios en la línea 12 de la Parte III del Formulario 2441. Taxes help Exclusión o deducción. Taxes help   Si su empleador provee beneficios para el cuidado de dependientes, conforme a un plan calificado, tal vez pueda excluir estos beneficios de sus ingresos. Taxes help Su empleador le puede decir si su plan de beneficios reúne los requisitos. Taxes help Para declarar la exclusión, tiene que llenar la Parte III del Formulario 2441. Taxes help No puede usar el Formulario 1040EZ. Taxes help   Si trabaja por cuenta propia y recibe beneficios de un plan calificado de beneficios para el cuidado de dependientes, se le considera empleador y empleado a la vez. Taxes help Por lo tanto, no se le permite una exclusión del salario, sino una deducción en la línea 14 del Anexo C (Formulario 1040), en la línea 19 ó 28 del Anexo E (Formulario 1040), o en la línea 15 del Anexo F (Formulario 1040). Taxes help Para declarar la deducción, tiene que usar el Formulario 2441. Taxes help   La cantidad que se puede excluir o deducir se limita a la que sea menor entre las siguientes: La cantidad total de beneficios para el cuidado de dependientes que usted recibió durante el año, La cantidad total de gastos calificados en los que usted incurrió durante el año, Su ingreso del trabajo, El ingreso del trabajo de su cónyuge o $5,000 ($2,500 si son casados que presentan la declaración por separado). Taxes help La definición del ingreso del trabajo para fines de la exclusión o deducción es igual a la definición que se usa para calcular el crédito, salvo que el ingreso del trabajo para fines de la exclusión o deducción no incluye los beneficios para el cuidado de dependientes recibidos por usted. Taxes help Vea Límite del Ingreso del Trabajo, más adelante. Taxes help    Cuando está calculando su exclusión o deducción, usted puede elegir incluir en su ingreso del trabajo lo que ha ganado por concepto de pago por combate no sujeto a impuestos. Taxes help Tiene esta opción aun si usted elige no incluir esos pagos en su ingreso del trabajo para propósitos del crédito por ingreso del trabajo o el crédito por gastos del cuidado de menores y dependientes. Taxes help Informe del empleado. Taxes help   Su empleador tiene que entregarle a usted un Formulario W-2 (o informe parecido) que muestre en el recuadro 10 la cantidad total de los beneficios para el cuidado de dependientes que le fueron provistos a usted durante el año conforme a un plan calificado. Taxes help Su empleador también incluirá en sus salarios, anotados en el recuadro 1 de su Formulario W-2, todos los beneficios para el cuidado de dependientes que exceden de los $5,000. Taxes help Efecto de la exclusión sobre el crédito. Taxes help   Si excluye de sus ingresos los beneficios para el cuidado de dependientes, la cantidad de los beneficios excluidos: No se incluye en sus gastos relacionados con el trabajo y Reduce el límite de dinero, explicado más adelante. Taxes help Límite del Ingreso del Trabajo La cantidad de los gastos relacionados con el trabajo que usted puede utilizar para calcular su crédito no puede exceder: Del importe de su ingreso del trabajo del año, si está soltero al final del año ni Del que sea menor entre su ingreso del trabajo y el de su cónyuge durante el año, si están casados al final del año. Taxes help El ingreso del trabajo se define bajo Requisito del Ingreso del Trabajo , anteriormente. Taxes help En el caso del punto (2) anterior, utilice el total del ingreso del trabajo de su cónyuge durante todo el año, aunque estuviera casado solamente durante una parte del año. Taxes help Cónyuge separado. Taxes help   Si está legalmente separado o casado y no vive con su cónyuge (tal como se describe anteriormente bajo Requisito de la Declaración Conjunta ), a usted no se le considera casado para propósitos del límite del ingreso del trabajo. Taxes help Use solamente su propio ingreso al calcular el límite del ingreso del trabajo. Taxes help Cónyuge sobreviviente. Taxes help   Si su cónyuge falleció durante el año y usted presenta una declaración conjunta como cónyuge sobreviviente, puede, pero no está obligado a, tomar en cuenta el ingreso del trabajo de su cónyuge fallecido durante el año. Taxes help Leyes de los bienes gananciales. Taxes help   Debe hacer caso omiso de las leyes de los bienes gananciales al calcular el ingreso del trabajo para este crédito. Taxes help Si usted o cónyuge es estudiante o no puede cuidar de sí mismo. Taxes help   Si su cónyuge es estudiante a tiempo completo o no puede cuidar de sí mismo, se considera que tiene ingreso del trabajo. Taxes help Se considera que su ingreso del trabajo mensual es de por lo menos $250 si hay una persona calificada en la vivienda de usted, o de por lo menos $500 si hay dos o más personas en su vivienda. Taxes help Si su cónyuge trabaja. Taxes help   Si su cónyuge trabaja durante ese mes, utilice $250 (o $500) o el ingreso del trabajo real de él o ella para ese mes, lo que sea mayor. Taxes help Si su cónyuge reúne los requisitos por una parte de un mes. Taxes help    Si su cónyuge es estudiante a tiempo completo o no puede cuidar de sí mismo sólo por una parte del mes, la cantidad entera de $250 (o $500) todavía corresponde para ese mes. Taxes help Usted es estudiante o no puede cuidar de sí mismo. Taxes help   También corresponden estas reglas si usted es estudiante o no puede cuidar de sí mismo y presenta una declaración conjunta. Taxes help Por cada mes o parte del mes que sea un estudiante o que no pueda cuidar de sí mismo, se considera que su ingreso del trabajo es por lo menos $250 (o $500). Taxes help Si también trabaja durante ese mes, use la cantidad mayor de $250 (o $500) o su cantidad real de ingreso del trabajo para ese mes. Taxes help Si ambos cónyuges reúnen los requisitos. Taxes help   Si, en el mismo mes, tanto usted como su cónyuge son estudiantes a tiempo completo o no pueden cuidar de sí mismos, se puede considerar que sólo un cónyuge tiene este ingreso del trabajo de $250 (o $500) para ese mes. Taxes help Límite de Dinero Existe un límite en la cantidad de gastos relacionados con el trabajo que se puede usar para calcular el crédito. Taxes help El límite es $3,000 en el caso de una persona calificada, o $6,000 en el caso de dos o más personas calificadas. Taxes help Si pagó gastos relacionados con el trabajo por el cuidado de dos o más personas calificadas, el límite aplicable es de $6,000. Taxes help No hay necesidad de dividir dicho límite de $6,000 por igual entre ellas. Taxes help Por ejemplo, si sus gastos relacionados con el trabajo por el cuidado de una persona calificada son de $3,200 y los gastos relacionados con el trabajo por otra persona calificada son de $2,800, puede utilizar el total, $6,000, al calcular el crédito. Taxes help Límite anual. Taxes help   El límite de dinero es un límite anual. Taxes help La cantidad del límite de dinero se mantiene igual, sin importar cuánto tiempo durante el año tenga en su residencia a una persona calificada. Taxes help Utilice el límite de $3,000 si pagó gastos relacionados con el trabajo para una persona calificada en algún momento del año. Taxes help Utilice el límite de $6,000 si pagó gastos relacionados con el trabajo para más de una persona calificada en algún momento del año. Taxes help Reducción del Límite de Dinero Si recibió beneficios para el cuidado de dependientes que usted excluye o deduce de sus ingresos, tiene que restar esa cantidad del límite de dinero que le corresponde. Taxes help La reducción del límite de dinero se calcula en la Parte III del Formulario 2441. Taxes help Vea la sección anterior, Beneficios para el Cuidado de Dependientes , para información sobre cómo excluir o deducir estos beneficios. Taxes help Ejemplo 1. Taxes help Jorge es viudo, tiene un hijo y gana $24,000 al año. Taxes help Paga gastos relacionados con el trabajo de $2,900 por el cuidado de su hijo de 4 años de edad. Taxes help Jorge reúne los requisitos para reclamar el crédito por gastos del cuidado de menores y dependientes. Taxes help Su empleador paga $1,000 adicionales, conforme a un plan de beneficios para el cuidado de dependientes. Taxes help Estos $1,000 se excluyen de los ingresos de Jorge. Taxes help Aunque el límite de dinero para sus gastos relacionados con el trabajo es de $3,000 (una persona calificada), Jorge calcula su crédito basándose solamente en $2,000 de los $2,900 que pagó por gastos relacionados con el trabajo. Taxes help Ésto se debe a que su límite de dinero se ha reducido como se muestra a continuación:   Reducción del Límite de Dinero de Jorge 1) Máximo de gastos permitidos para una persona calificada $3,000 2) Menos: Los beneficios para el cuidado de dependientes que Jorge excluye de sus ingresos −1,000 3) Reducción del límite de dinero sobre los gastos que Jorge puede utilizar para el crédito $2,000 Ejemplo 2. Taxes help Ronaldo está casado y tanto él como su esposa trabajan. Taxes help Cada uno tiene ingreso del trabajo superior a $6,000. Taxes help Ellos tienen dos hijos, Anita y Antonio, de 2 y 4 años. Taxes help Sus hijos asisten a un centro de cuidados para niños durante el día, el cual es controlado por el estado, y con licencia expedida por el mismo. Taxes help Ronaldo tuvo $6,000 en gastos relacionados con su trabajo en el año. Taxes help El empleador de Ronaldo ofrece un programa de ayuda para el cuidado de dependientes como parte de su plan cafeteria, el cual permite que los empleados efectúen aportaciones a un plan de gastos flexibles para el cuidado de dependientes (Dependent care flexible spending arrangement) antes de que se tasen impuestos sobre las mismas. Taxes help Como parte de este programa, Ronaldo ha elegido tomar la exclusión máxima de $5,000 de su salario para pagar los gastos del cuidado de dependientes. Taxes help Aunque el límite de dinero para los gastos relacionados con el trabajo es de $6,000 (para dos o más personas calificadas), Ronaldo calcula su crédito usando sólo $1,000 de los $6,000 que pagó por concepto de gastos relacionados con el trabajo. Taxes help Esto se debe a la reducción de su límite de dinero, explicada a continuación. Taxes help   Reducción del Límite de Dinero de Ronaldo 1) Máximo de gastos permitidos para dos personas calificadas $6,000 2) Menos: Los beneficios para el cuidado de dependientes elegidos del plan “cafetería” ofrecido por su empleador, y excluidos del ingreso de Ronaldo −5,000 3) Reducción del límite de dinero sobre los gastos que Ronaldo puede utilizar para el crédito $1,000 Cantidad de Crédito Para determinar la cantidad de su crédito, multiplique sus gastos relacionados con el trabajo (después de aplicar el límite del ingreso del trabajo y el límite de dinero) por el porcentaje correspondiente. Taxes help Este porcentaje depende del ingreso bruto ajustado, como se refleja en la línea 38 del Formulario 1040 o la línea 22 del Formulario 1040A. Taxes help La tabla siguiente muestra el porcentaje que deberá usar basado en el ingreso bruto ajustado:   SI su ingreso bruto ajustado es: ENTONCES el       Más de   Pero no más de   porcentaje es:       $0   $15,000   35%       15,000   17,000   34%       17,000   19,000   33%       19,000   21,000   32%       21,000   23,000   31%       23,000   25,000   30%       25,000   27,000   29%       27,000   29,000   28%       29,000   31,000   27%       31,000   33,000   26%       33,000   35,000   25%       35,000   37,000   24%       37,000   39,000   23%       39,000   41,000   22%       41,000   43,000   21%       43,000   No hay límite   20%   Cómo Reclamar el Crédito Para reclamar el crédito, puede presentar el Formulario 1040 o el Formulario 1040A. Taxes help No puede reclamar el crédito en el Formulario 1040EZ. Taxes help Formulario 1040 ó 1040A. Taxes help   Tiene que completar el Formulario 2441 y adjuntar el mismo a su Formulario 1040 ó 1040A. Taxes help Anote la cantidad del crédito en la línea 48 del Formulario 1040 o la línea 29 del Formulario 1040A. Taxes help Límite de crédito. Taxes help   En la mayoría de los casos, la cantidad de crédito que puede reclamar se limita a la cantidad de su impuesto. Taxes help Para más información vea las Instrucciones del Formulario 2441. Taxes help Crédito tributario no reembolsable. Taxes help   No puede obtener un reembolso por parte alguna del crédito que supere este límite. Taxes help Mantenimiento de documentación. Taxes help Usted debería mantener datos y registros de los gastos relacionados con el trabajo. Taxes help Además, si su dependiente o cónyuge no puede cuidar de sí mismo, los datos y registros que mantiene deben indicar tanto la forma como la duración de la incapacidad. Taxes help Otros datos y documentos que debería mantener para respaldar su solicitud de crédito se describen anteriormente bajo Requisito de Identificación del Proveedor de Cuidados . Taxes help Impuestos sobre la Nómina para Empleadores de Empleados Domésticos Si le paga a alguien para que venga a su hogar y cuide a su dependiente o a su cónyuge, es posible que se le considere un empleador de empleados domésticos. Taxes help Si es empleador de empleados domésticos, necesitará obtener un número de identificación del empleador (EIN) y quizás tenga que pagar impuestos sobre la nómina. Taxes help Si las personas que trabajan en la residencia de usted son empleados autónomos, es decir, trabajan por cuenta propia, usted no es responsable de ninguno de los impuestos que se explican en esta sección. Taxes help Las personas que trabajan por cuenta propia no son empleados domésticos. Taxes help Por lo general, usted no es empleador de empleados domésticos si la persona que cuida a su dependiente o cónyuge presta el servicio de cuidados en su propia residencia o lugar de negocio. Taxes help Si usa una agencia de empleo que tiene control sobre la clase de trabajo que realiza una niñera o acompañante que trabaja en la vivienda de usted, y sobre la manera en que se realiza el mismo, aquella persona no es su empleado. Taxes help Dicho control podría incluir proveer reglas de conducta y aspecto personal y exigir la entrega de informes con regularidad. Taxes help Si ese es el caso, usted no tiene que pagar impuestos sobre la nómina. Taxes help Sin embargo, si una agencia sólo le entrega una lista de niñeros o niñeras y usted contrata a uno de los que encontró en esa lista y paga directamente al mismo por sus servicios, dicha persona podría ser su empleado. Taxes help Si tiene un empleado doméstico usted podría estar sujeto a: Los impuestos del Seguro Social y Medicare, El impuesto federal sobre el desempleo y La retención del impuesto federal sobre el ingreso. Taxes help Los impuestos del Seguro Social y Medicare, por lo general, son retenidos de la paga de los empleados, y los empleadores pagan una cantidad igual. Taxes help El impuesto federal para el desempleo (FUTA, por sus siglas en inglés) lo paga solamente el empleador y son pagos por desempleo a empleados que hayan perdido su trabajo. Taxes help El impuesto federal sobre el ingreso se retiene del sueldo total del empleado si él le pide que lo haga y usted está de acuerdo. Taxes help Para más información sobre las responsabilidades tributarias de un empleador doméstico, vea la Publicación 926 y el Anexo H (Formulario 1040), en inglés, y las instrucciones correspondientes. Taxes help Impuestos estatales sobre la nómina. Taxes help   Es posible que también tenga que pagar el impuesto estatal de desempleo. Taxes help Póngase en contacto con su oficina de impuestos estatales para el desempleo a fin de obtener más información. Taxes help También debería averiguar si necesita pagar o cobrar otros impuestos estatales sobre la nómina o tener seguro de compensación al trabajador. Taxes help Para una lista de agencias de impuestos estatales de desempleo, vísite el sitio web del U. Taxes help S. Taxes help Department of Labor (Departamento del Trabajo). Taxes help Un enlace a este sitio web está en la Publicación 926, en inglés, o lo puede buscar en línea. Taxes help Prev  Up  Next   Home   More Online Publications
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Educating Your Employees About Tax Compliance

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Helpful Publications:

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Page Last Reviewed or Updated: 07-Nov-2013

The Taxes Help

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