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Turbotax 2008 Free Edition

E File 2012 Taxes LateHow Can I Efile My 2010 TaxesTax Filing1040 X Tax FormIrs 1040ez 2010Irs Amended Tax ReturnForm 1040 EzMilitary Tax Service2011 Form 1040xHow To File Taxes As A College Student1040ez Fillable FormEfile Taxes FreeTax Return For College StudentsAmend 2010 ReturnFree Tax Filing For Low IncomeEz 1040 E-fileMyfreetaxesFree File 2011 Tax ReturnIrs Where Mail 1040ezFillable 1040x FormHow To File State Taxes Only For FreeFederal And State Taxes FreeDo State Taxes For FreeFiling 2010 Taxes Online FreeFill Out 1040ez Online2011 1040 EzFederal Income Tax Form 1040ezH And R Block File FreeFile State Income TaxesHr Block Tax Software2010 Federal Tax ReturnTaxes On UnemploymentFree Tax Filing Hr Block2012 Tax Return FormIncome Tax Form 1040ezUnited Way Free Tax PreparationFull Time StudentAmendment FormsFederal Tax TableAmend 2011 Tax Return Free

Turbotax 2008 Free Edition

Turbotax 2008 free edition Index A Abandonment, Abandonment Accounting method Accrual, Accrual Method Cash, Cash Method Change in, Changes in Methods of Accounting Crop, Crop method. Turbotax 2008 free edition Farm inventory, Farm Inventory Accounting periods, Introduction Accrual method of accounting, Accrual Method Additional Medicare Tax withholding, What's New for 2013, Additional Medicare Tax. Turbotax 2008 free edition Adjusted basis for installment sale, Adjusted basis for installment sale purposes. Turbotax 2008 free edition Adjusted basis of assets, Adjusted Basis Agricultural activity codes, Schedule F, Reminders Agricultural program payments, Agricultural Program Payments Agricultural structure, defined, Agricultural structure. Turbotax 2008 free edition Alternative Depreciation System (ADS), Required use of ADS. Turbotax 2008 free edition , ADS election. Turbotax 2008 free edition Amortization Going into business, Business Start-Up Costs Reforestation expenses, Reforestation Costs Section 197 intangibles, Section 197 Intangibles Assessments By conservation district, Assessment by Conservation District Depreciable property, Assessment for Depreciable Property Assistance (see Tax help) Automobiles, depreciation, Limits for passenger automobiles. Turbotax 2008 free edition B Bankruptcy, Bankruptcy. Turbotax 2008 free edition Barter income, Barter income. Turbotax 2008 free edition Basis Adjusted, Adjusted basis. Turbotax 2008 free edition Installment sale, Adjusted basis for installment sale purposes. Turbotax 2008 free edition Involuntary conversion, Basis for depreciation. Turbotax 2008 free edition Like-kind exchange, Basis for depreciation. Turbotax 2008 free edition Partner's basis, Property Distributed From a Partnership or Corporation Replacement property, Basis of replacement property. Turbotax 2008 free edition Shareholder's basis, Property Distributed From a Partnership or Corporation Basis of assets Adjusted basis, Adjusted Basis Allocating to several assets, Allocating the Basis Changed to business use, Property changed from personal to business or rental use. Turbotax 2008 free edition Constructing assets, Constructing assets. Turbotax 2008 free edition Cost, Cost Basis Decreases, Decreases to Basis Depreciation, What Is the Basis for Depreciation? Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Gifts, Property Received as a Gift Increases, Increases to Basis Real property, Real Property Received for services, Property received for services. Turbotax 2008 free edition Uniform capitalization rules, Uniform Capitalization Rules Below-market loans, Below-market loans. Turbotax 2008 free edition Books and records, Importance of Records Breeding fees, Breeding Fees Business income limit, section 179 expense deduction, Business Income Limit Business use of home, Business Use of Your Home C Canceled debt, Cancellation of Debt Capital assets, Capital Assets Capital expenses, Capital Expenses Car expenses, Truck and Car Expenses Cash method of accounting, Cash Method Casualties and thefts Adjustments to basis, Adjustments to basis. Turbotax 2008 free edition Casualty, defined, Casualty. Turbotax 2008 free edition Disaster area losses, Disaster Area Losses Leased property, Leased property. Turbotax 2008 free edition Livestock, Livestock or produce bought for resale. Turbotax 2008 free edition , Raised draft, breeding, dairy, or sporting animals. Turbotax 2008 free edition Reimbursement, Insurance and other reimbursements. Turbotax 2008 free edition Reporting gains and losses, Reporting Gains and Losses Theft, defined, Theft. Turbotax 2008 free edition Change in accounting method, Changes in Methods of Accounting Chickens, purchased, Chickens, seeds, and young plants. Turbotax 2008 free edition Christmas trees, Christmas tree cultivation. Turbotax 2008 free edition , Christmas trees. Turbotax 2008 free edition Club dues, Club dues and membership fees. Turbotax 2008 free edition Comments on publication, Comments and suggestions. Turbotax 2008 free edition Commodity Futures, Hedging (Commodity Futures) Wages, Noncash wages. Turbotax 2008 free edition Commodity Credit Corporation (CCC) Loans, Commodity Credit Corporation (CCC) Loans Market gain, Market Gain Community property, Community property. Turbotax 2008 free edition , Community property. Turbotax 2008 free edition Computer, software, Computer software. Turbotax 2008 free edition Condemnation, Casualties, Thefts, and Condemnations, Condemnation Conservation Cost-sharing exclusion, Conservation Expenses District assessments, Assessment by Conservation District Expenses, Conservation Expenses Plans, Conservation plan. Turbotax 2008 free edition Conservation Reserve Program, Conservation Reserve Program (CRP) payments. Turbotax 2008 free edition Conservation Reserve Program (CRP), Conservation Reserve Program (CRP) Constructing assets, Constructing assets. Turbotax 2008 free edition Constructive receipt of income, Constructive receipt. Turbotax 2008 free edition Contamination, Soil or other environmental contamination. Turbotax 2008 free edition Contract price, Contract price. Turbotax 2008 free edition Converted wetland, Converted Wetland and Highly Erodible Cropland Cooperatives, income from, Income From Cooperatives Cost-sharing exclusion, Cost-Sharing Exclusion (Improvements) Counter-cyclical payments, Direct payments and counter-cyclical payments. Turbotax 2008 free edition , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Credits Employment, Employment Credits Fuel tax, Fuel tax credit and refund. Turbotax 2008 free edition , How To Claim a Credit or Refund, Claiming a Credit Social security and Medicare, Earning credits in 2013. Turbotax 2008 free edition Social security coverage, How to become insured under social security. Turbotax 2008 free edition State unemployment tax, Tax rate and credit. Turbotax 2008 free edition Crew leaders, Crew Leaders Crop Destroyed, Standing crop destroyed by casualty. Turbotax 2008 free edition Insurance proceeds, Crop Insurance and Crop Disaster Payments Method of accounting, Crop method. Turbotax 2008 free edition Shares, Rents (Including Crop Shares) Unharvested, Cost of raising unharvested crops. Turbotax 2008 free edition , Section 1231 transactions. Turbotax 2008 free edition , Gain or loss. Turbotax 2008 free edition Cropland, highly erodible, Converted Wetland and Highly Erodible Cropland D Damage Casualties and thefts, Casualties and Thefts Crop insurance, Crop Insurance and Crop Disaster Payments Tree seedlings, Tree Seedlings Debt Bad, Nonbusiness bad debt. Turbotax 2008 free edition Canceled, Cancellation of Debt, Canceled debt excluded from income. Turbotax 2008 free edition , Cancellation of debt. Turbotax 2008 free edition , Canceled debt. Turbotax 2008 free edition Nonrecourse, Amount realized on a nonrecourse debt. Turbotax 2008 free edition Qualified farm, Qualified Farm Debt Qualified principal residence, Qualified Principal Residence Debt Recourse, Amount realized on a recourse debt. Turbotax 2008 free edition Depletion, Depletion Depreciation, Claiming the Special Depreciation Allowance ADS election, ADS election. Turbotax 2008 free edition Conservation assets, Depreciable conservation assets. Turbotax 2008 free edition Deduction, Overview of Depreciation Incorrect amount deducted, How Do You Correct Depreciation Deductions? Limit for automobiles, Limits for passenger automobiles. Turbotax 2008 free edition Listed property, Additional Rules for Listed Property Raised livestock, Livestock. Turbotax 2008 free edition Recapture, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Section 1250 Property When to file, Do You Have To File Form 4562? Depreciation allowable, Basis adjustment for depreciation allowed or allowable. Turbotax 2008 free edition Depreciation allowed, Basis adjustment for depreciation allowed or allowable. Turbotax 2008 free edition Direct payments, Direct payments and counter-cyclical payments. Turbotax 2008 free edition , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Disaster area losses, Disaster Area Losses Disaster payments, Crop Insurance and Crop Disaster Payments Disaster relief grants, Federal disaster relief grants. Turbotax 2008 free edition Disaster relief payments, Qualified disaster relief payments. Turbotax 2008 free edition Dispositions, Sale or other disposal of land during 9-year period. Turbotax 2008 free edition , Gain on sale of farmland. Turbotax 2008 free edition , Introduction Domestic production activities deduction, Domestic Production Activities Deduction Dyed diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Dyed kerosene, Dyed Diesel Fuel and Dyed Kerosene E e-file, Reminders Easement, Easements and rights-of-way. Turbotax 2008 free edition , Easements. Turbotax 2008 free edition Election ADS depreciation, Electing ADS. Turbotax 2008 free edition , ADS election. Turbotax 2008 free edition Amortization Business start-up costs, Business Start-Up Costs Reforestation costs, Reforestation Costs Crop method, Election to use crop method. Turbotax 2008 free edition Cutting of timber, Election to treat cutting as a sale or exchange. Turbotax 2008 free edition Deducting conservation expenses, When to Deduct or Capitalize Not excluding cost-sharing payments, Electing not to exclude payments. Turbotax 2008 free edition Out of installment method, Electing out of the installment method. Turbotax 2008 free edition Postponing casualty gain, Postponing Gain Postponing reporting crop insurance proceeds, Election to postpone reporting until the following year. Turbotax 2008 free edition Section 179 expense deduction, How Do You Elect the Deduction? Electronic filing, Reminders Embryo transplants, Transplanted embryo. Turbotax 2008 free edition Employer identification number, Reminders, Employer identification number (EIN). Turbotax 2008 free edition Endangered species recovery expenses, Endangered species recovery expenses. Turbotax 2008 free edition Environmental contamination, Soil or other environmental contamination. Turbotax 2008 free edition Estimated tax Farm gross income, Gross Income From Farming Gross income, Gross Income Penalties, Estimated Tax Penalty for 2013 Exchanges Basis Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Like-Kind Exchanges Excise taxes Credit, Claiming a Credit Diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Farming purposes, Fuels Used in Farming Home use of fuels, Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines Off-highway uses, Fuels Used in Off-Highway Business Use Refund, Claiming a Refund F Fair market value defined, Fair market value (FMV). Turbotax 2008 free edition , Fair market value (FMV). Turbotax 2008 free edition Family member Business expenses, Special rule for related persons. Turbotax 2008 free edition Installment sale, Sale to a related person. Turbotax 2008 free edition Like-kind exchange, Like-kind exchanges between related persons. Turbotax 2008 free edition Loss on sale or exchange of property, Losses from sales or exchanges between related persons. Turbotax 2008 free edition Personal-use property, Personal-use property. Turbotax 2008 free edition Social security coverage, Family Employees Farm Business expenses, Farm Business Expenses Business, defined, Business of Farming Defined, Farm defined. Turbotax 2008 free edition , Farm. Turbotax 2008 free edition Income averaging, Income Averaging for Farmers Rental, Farm rental. Turbotax 2008 free edition Sale of, Sale of a Farm Farmer, Farmer. Turbotax 2008 free edition Federal unemployment tax (FUTA), Federal Unemployment (FUTA) Tax Fertilizer, Fertilizer and Lime, Fertilizer and Lime Foreclosure, Foreclosure or Repossession Forestation costs, Forestation and reforestation costs. Turbotax 2008 free edition Form 1099-A, Form 1099-A. Turbotax 2008 free edition , Forms 1099-A and 1099-C. Turbotax 2008 free edition 1099-C, Cancellation of Debt, Form 1099-C. Turbotax 2008 free edition , Forms 1099-A and 1099-C. Turbotax 2008 free edition 1099-G, Market Gain, Payment to More Than One Person 1099-MISC, Reminders, Nonemployee compensation. Turbotax 2008 free edition 1099-PATR, Form 1099-PATR. Turbotax 2008 free edition 1128, Introduction 2210-F, Estimated Tax Penalty for 2013 3115, Changes in Methods of Accounting 4136, Claiming a Credit 4562, Do You Have To File Form 4562? 4797, Form 4797. Turbotax 2008 free edition , Recapture. Turbotax 2008 free edition , Reporting the exchange. Turbotax 2008 free edition 4835, Rents (Including Crop Shares) 5213, Using the presumption later. Turbotax 2008 free edition 6252, Form 6252. Turbotax 2008 free edition 8822, Reminders 8824, Reporting the exchange. Turbotax 2008 free edition 8849, Claiming a Refund 8886, Reminders 940, Form 940. Turbotax 2008 free edition 943, Form 943. Turbotax 2008 free edition 982, Form 982 I-9, Form I-9. Turbotax 2008 free edition SS-4, Reminders, Employer identification number (EIN). Turbotax 2008 free edition SS-5, Obtaining a social security number. Turbotax 2008 free edition T (Timber), Form T (Timber). Turbotax 2008 free edition W-2, Form W-2. Turbotax 2008 free edition W-4, Reminders, New hire reporting. Turbotax 2008 free edition , Form W-4. Turbotax 2008 free edition W-4V, Commodity Credit Corporation (CCC) Loans, Crop Insurance and Crop Disaster Payments W-7, Obtaining an individual taxpayer identification number. Turbotax 2008 free edition Free tax services, How To Get Tax Help, Free help with your tax return. Turbotax 2008 free edition Fuel tax credit or refund, Fuel tax credit and refund. Turbotax 2008 free edition , How To Claim a Credit or Refund G Gains and losses Basis of assets, Cost Basis Capital assets, defined, Capital Assets Casualty, How To Figure a Loss, Figuring a Gain Installment sales, Installment Sales Livestock, Livestock Long- or short-term, Long and Short Term Ordinary or capital, Ordinary or Capital Gain or Loss Sale of farm, Sale of a Farm Section 1231, Section 1231 Gains and Losses Theft, How To Figure a Loss, Figuring a Gain Timber, Timber General asset accounts, How Do You Use General Asset Accounts? Gifts, Crop shares you give to others (gift). Turbotax 2008 free edition , Cost related to gifts. Turbotax 2008 free edition , Property Received as a Gift, Gift. Turbotax 2008 free edition Going into business, Business Start-Up Costs Grants, disaster relief, Federal disaster relief grants. Turbotax 2008 free edition Gross profit percentage, Gross profit percentage. Turbotax 2008 free edition Gross profit, defined, Gross profit. Turbotax 2008 free edition Guarantee, Debt not payable on demand. Turbotax 2008 free edition H Health insurance deduction, Self-employed health insurance deduction. Turbotax 2008 free edition Hedging, Hedging (Commodity Futures) Help (see Tax help) Highway use tax, Highway use tax. Turbotax 2008 free edition Holding period, Holding period. Turbotax 2008 free edition Horticultural structure, Horticultural structure. Turbotax 2008 free edition I Illegal irrigation subsidy, Illegal federal irrigation subsidy. Turbotax 2008 free edition Important dates, Important Dates for 2014 Improvements, Cost-Sharing Exclusion (Improvements) Income Accounting for, Accounting Methods Accrual method of accounting, Income Canceled debt excluded, Cancellation of Debt From farming, Farm Income, Gross income from farming. Turbotax 2008 free edition , Gross Income From Farming Gross, Gross Income Not-for-profit farming, Not-for-Profit Farming Pasture, Pasture income and rental. Turbotax 2008 free edition Schedule F, Farm Income Withholding of tax, Federal Income Tax Withholding Income averaging (see Farm: Income averaging) Incorrect amount of depreciation deducted, How Do You Correct Depreciation Deductions? Individual taxpayer identification number (ITIN), Obtaining an individual taxpayer identification number. Turbotax 2008 free edition Inherited property, Inherited Property Insolvency, Insolvency. Turbotax 2008 free edition Installment sales, Form 6252. Turbotax 2008 free edition Electing out, Electing out of the installment method. Turbotax 2008 free edition Farm, sale of, Installment Sale of a Farm Figuring income, Figuring Installment Sale Income Reporting income, Form 6252. Turbotax 2008 free edition Unstated interest, Unstated interest. Turbotax 2008 free edition Insurance, Insurance, Self-employed health insurance deduction. Turbotax 2008 free edition Intangible property, Section 197 Intangibles Interest Expense, Interest Income, Interest income. Turbotax 2008 free edition Unstated, Unstated interest. Turbotax 2008 free edition Inventory Items included, Farm Inventory Methods of valuation, Inventory valuation methods. Turbotax 2008 free edition Involuntary conversions, Involuntary Conversions, Property acquired in a like-kind exchange or involuntary conversion. Turbotax 2008 free edition , Introduction Irrigation Illegal subsidy, Illegal federal irrigation subsidy. Turbotax 2008 free edition Project, Irrigation Project L Labor hired, Labor Hired Landlord participation, Landlord Participation in Farming Lease or purchase, Lease or Purchase Life tenant (see Term interests) Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Lime, Fertilizer and Lime Limits At-risk, At-Risk Limits Business use of home, Deduction limit. Turbotax 2008 free edition Capital losses, Treatment of Capital Losses Conservation expenses, Assessment for Depreciable Property, 25% Limit on Deduction Depreciation Business-use, What Is the Business-Use Requirement? Excluded farm debt, Exclusion limit. Turbotax 2008 free edition Farm losses, Losses From Operating a Farm Loss of personal-use property, Deduction Limits on Losses of Personal-Use Property Not-for-profit farming, Not-for-Profit Farming Passive activity, Passive Activity Limits Percentage depletion, Taxable income limit. Turbotax 2008 free edition Prepaid farm supplies, Deduction limit. Turbotax 2008 free edition Reforestation costs, Reforestation Costs Section 179 expense deduction Automobile, Limits for passenger automobiles. Turbotax 2008 free edition Business income, Business Income Limit Dollar, Dollar Limits Time to keep records, How Long To Keep Records Listed property Defined, What Is Listed Property? Passenger automobile, Passenger automobiles. Turbotax 2008 free edition Rules, Additional Rules for Listed Property Livestock, Section 1231 transactions. Turbotax 2008 free edition Casualty and theft losses, Livestock or produce bought for resale. Turbotax 2008 free edition Crop shares, Crop shares you use to feed livestock. Turbotax 2008 free edition Depreciation, Livestock. Turbotax 2008 free edition Diseased, Diseased livestock. Turbotax 2008 free edition Feed assistance, Feed Assistance and Payments Immature, Immature livestock. Turbotax 2008 free edition Losses, Loss of livestock. Turbotax 2008 free edition , Livestock Purchased, Purchased livestock. Turbotax 2008 free edition Raised, Raised livestock. Turbotax 2008 free edition Sale of, Sales of Farm Products, Livestock Unit-livestock-price, inventory valuation, Unit-livestock-price method. Turbotax 2008 free edition Used in a farm business, Livestock used in farm business. Turbotax 2008 free edition Weather-related sales, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. Turbotax 2008 free edition Loans, Commodity Credit Corporation (CCC) Loans, Loan expenses. Turbotax 2008 free edition Losses At-risk limits, At-Risk Limits Casualty, Casualties, Thefts, and Condemnations Disaster areas, Disaster Area Losses Farming, Farming Losses Growing crops, Loss of growing plants, produce, and crops. Turbotax 2008 free edition Hobby farming, Not-for-Profit Farming Livestock, Livestock, Diseased livestock. Turbotax 2008 free edition Nondeductible, Other Nondeductible Items Theft, Casualties, Thefts, and Condemnations Lost income payments, Lost income payments. Turbotax 2008 free edition Lost property, Mislaid or lost property. Turbotax 2008 free edition M MACRS property Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. Turbotax 2008 free edition Like-kind exchange, Property acquired in a like-kind exchange or involuntary conversion. Turbotax 2008 free edition Nontaxable transfer, Property acquired in a nontaxable transfer. Turbotax 2008 free edition Market gain, reporting, Market Gain Marketing quota penalties, Marketing Quota Penalties Material participation, Landlord Participation in Farming Meals, Meals. Turbotax 2008 free edition Membership fees, Club dues and membership fees. Turbotax 2008 free edition Methods of accounting, Accounting Methods Modified ACRS (MACRS) ADS election, ADS election. Turbotax 2008 free edition Conventions, Which Convention Applies? Depreciation methods, Which Depreciation Method Applies? Exchange, Property acquired in a like-kind exchange or involuntary conversion. Turbotax 2008 free edition Figuring the deduction, How Is the Depreciation Deduction Figured? Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. Turbotax 2008 free edition Nontaxable transfer, Property acquired in a nontaxable transfer. Turbotax 2008 free edition Percentage tables, Rules for using the tables. Turbotax 2008 free edition Property classes, Which Property Class Applies Under GDS? Recovery periods, Which Recovery Period Applies? N New hire reporting, New hire reporting. Turbotax 2008 free edition Noncapital asset, Noncapital Assets Nontaxable exchanges, Like-Kind Exchanges Nontaxable transfer of MACRS property, Property acquired in a nontaxable transfer. Turbotax 2008 free edition Not-for-profit farming, Not-for-Profit Farming O Organizational costs, Business start-up and organizational costs. Turbotax 2008 free edition P Partners, limited, Limited partner. Turbotax 2008 free edition Partners, retired, Retired partner. Turbotax 2008 free edition Partners, Spouse, Business Owned and Operated by Spouses. Turbotax 2008 free edition Partnership, Partnership income or loss. Turbotax 2008 free edition Passenger automobile, Passenger automobiles. Turbotax 2008 free edition Pasture income, Pasture income and rental. Turbotax 2008 free edition Patronage dividends, Patronage Dividends Payments considered received, Payments Received or Considered Received Payments received, Payments Received or Considered Received Penalties Estimated tax, Estimated Tax Penalty for 2013 Returns, Estimated Tax Penalty for 2013 Trust fund recovery, Trust fund recovery penalty. Turbotax 2008 free edition Per-unit retain certificates, Per-Unit Retain Certificates Personal expenses, Personal, Living, and Family Expenses Placed in service, Placed in Service, What Is the Placed-in-Service Date? Postponing casualty gain, Postponing Gain Prepaid expense Advance premiums, Advance premiums. Turbotax 2008 free edition Extends useful life, Prepayment. Turbotax 2008 free edition Farm supplies, Prepaid Farm Supplies Livestock feed, Prepaid Livestock Feed Prizes, Prizes. Turbotax 2008 free edition Produce, Sales of Farm Products Property Changed to business use, Property changed from personal to business or rental use. Turbotax 2008 free edition Received for services, Property received for services. Turbotax 2008 free edition Repairs and improvements, How Do You Treat Repairs and Improvements? Section 1231, Section 1231 transactions. Turbotax 2008 free edition Section 1245, Section 1245 Property Section 1250, Section 1250 Property Section 1252, Section 1252 property. Turbotax 2008 free edition Section 1255, Section 1255 property. Turbotax 2008 free edition Tangible personal, Tangible personal property. Turbotax 2008 free edition Publications (see Tax help) Q Qualified disaster relief payments, Qualified disaster relief payments. Turbotax 2008 free edition Qualified farm debt, Qualified Farm Debt Qualified joint venture, Qualified joint venture. Turbotax 2008 free edition Qualified principal residence debt, Qualified Principal Residence Debt R Recapture Amortization, Depreciation and amortization. Turbotax 2008 free edition Basis reductions, Recapture of basis reductions. Turbotax 2008 free edition Certain depreciation, Recapture of certain depreciation. Turbotax 2008 free edition Cost-sharing payments, Recapture. Turbotax 2008 free edition Depreciation, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Depreciation recapture. Turbotax 2008 free edition Section 1245 property, Section 1245 Property Section 1250 property, Section 1250 Property Section 179 expense deduction, When Must You Recapture the Deduction? Section 179 GO Zone property, Recapture for qualified section 179 GO Zone property. Turbotax 2008 free edition Special depreciation allowance, When Must You Recapture an Allowance Recordkeeping, Importance of Records, Meals. Turbotax 2008 free edition Records on depreciable property, Depreciation Recapture Reforestation costs, Forestation and reforestation costs. Turbotax 2008 free edition , Reforestation Costs Refund Deduction taken, Refund or reimbursement. Turbotax 2008 free edition Fuel tax, Fuel tax credit and refund. Turbotax 2008 free edition , Including the Credit or Refund in Income Reimbursements Casualties and thefts, Casualty and theft losses. Turbotax 2008 free edition , Casualties and Thefts, Insurance and other reimbursements. Turbotax 2008 free edition Deduction taken, Refund or reimbursement. Turbotax 2008 free edition Expenses, Reimbursed expenses. Turbotax 2008 free edition Feed assistance, Feed Assistance and Payments Real estate taxes, Real estate taxes. Turbotax 2008 free edition Reforestation expenses, Qualifying costs. Turbotax 2008 free edition To employees, Reimbursements to employees. Turbotax 2008 free edition Related persons, Special rule for related persons. Turbotax 2008 free edition , Losses from sales or exchanges between related persons. Turbotax 2008 free edition , Special rules for related persons. Turbotax 2008 free edition , Like-kind exchanges between related persons. Turbotax 2008 free edition , Sale to a related person. Turbotax 2008 free edition , Buying replacement property from a related person. Turbotax 2008 free edition , Related persons. Turbotax 2008 free edition Rental income, Rents (Including Crop Shares) Rented property, improvements, Improvements to rented property. Turbotax 2008 free edition Repairs, Repairs and Maintenance Repairs and improvements, How Do You Treat Repairs and Improvements? Repayment of income, Repayment of income. Turbotax 2008 free edition Replacement Period, Replacement Period Property, Replacement Property Reportable transactions. Turbotax 2008 free edition , Reminders Repossessions, Foreclosure or Repossession Right-of-way income, Easements and rights-of-way. Turbotax 2008 free edition S Sale of home, Sale of your home. Turbotax 2008 free edition Section 179 expense deduction, Section 179 Expense Deduction How to elect, How Do You Elect the Deduction? Listed property, Additional Rules for Listed Property Qualifying property, What Property Qualifies? Recapture, When Must You Recapture the Deduction? Self-employed health insurance, Self-employed health insurance deduction. Turbotax 2008 free edition Self-employed health insurance deduction, Self-employed health insurance deduction. Turbotax 2008 free edition Self-employment tax Community property, Community property. Turbotax 2008 free edition Deduction, Deduction for employer-equivalent portion of self-employment tax. Turbotax 2008 free edition How to pay, How To Pay Self-Employment Tax Landlord participation, Landlord Participation in Farming Material participation, Material participation for landlords. Turbotax 2008 free edition Maximum net earnings, What's New for 2013 Methods for figuring net earnings, Methods for Figuring Net Earnings Optional method, Farm Optional Method Regular method, Regular Method Rental income, Landlord Participation in Farming Reporting, Reporting Self-Employment Tax Self-employment tax rate, Self-employment tax rate. Turbotax 2008 free edition Share farming, Share farmer. Turbotax 2008 free edition Tax rates, What's New for 2013 Who must pay, Who Must Pay Self-Employment Tax? Selling expenses, Selling expenses. Turbotax 2008 free edition Selling price Defined, Selling price. Turbotax 2008 free edition Reduced, Selling price reduced. Turbotax 2008 free edition Settlement costs (fees), Settlement costs. Turbotax 2008 free edition Social security and Medicare Credits of coverage, Earning credits in 2013. Turbotax 2008 free edition Withholding of tax, Social Security and Medicare Taxes Social security number, Obtaining a social security number. Turbotax 2008 free edition Software, computer, Computer software. Turbotax 2008 free edition Soil Conservation, Conservation Expenses Contamination, Soil or other environmental contamination. Turbotax 2008 free edition Special depreciation allowance How to elect not to claim, How Can You Elect Not To Claim the Allowance? Recapture, When Must You Recapture an Allowance Standard mileage rate, Standard mileage rate. Turbotax 2008 free edition Start-up costs for businesses, Business start-up and organizational costs. Turbotax 2008 free edition Suggestions for publication, Comments and suggestions. Turbotax 2008 free edition T Tangible personal property, Tangible personal property. Turbotax 2008 free edition Tax help, How To Get Tax Help Tax preparation fees, Tax preparation fees. Turbotax 2008 free edition Tax shelter At-risk limits, At-Risk Limits Defined, Tax shelter. Turbotax 2008 free edition Tax-free exchanges, Like-Kind Exchanges Taxes Excise, Excise Taxes Federal use, Highway use tax. Turbotax 2008 free edition General, Taxes Self-employment, Self-Employment Tax State and federal, State and federal income taxes. Turbotax 2008 free edition State and local general sales, State and local general sales taxes. Turbotax 2008 free edition Withholding, Federal income tax withholding. Turbotax 2008 free edition , Social Security and Medicare Taxes, Federal Income Tax Withholding Telephone expense, Telephone expense. Turbotax 2008 free edition Tenant house expenses, Tenant House Expenses Term interests, Certain term interests in property. Turbotax 2008 free edition Theft losses, Casualties, Thefts, and Condemnations Timber, Timber. Turbotax 2008 free edition , Timber Depletion, Timber Tobacco quota buyout payments, Tobacco Quota Buyout Program Payments Tobacco settlement payments, National Tobacco Growers' Settlement Trust Fund Payments Trade-in, Sale and Purchase Travel expenses, Travel Expenses Truck expenses, Truck and Car Expenses Trust fund recovery penalty, Trust fund recovery penalty. Turbotax 2008 free edition TTY/TDD information, How To Get Tax Help U Uniform capitalization rules Basis of assets, Uniform Capitalization Rules Inventory, Uniform capitalization rules. Turbotax 2008 free edition Unstated interest, Unstated interest. Turbotax 2008 free edition W Wages and salaries, Wages and salaries. Turbotax 2008 free edition Water conservation, Conservation Expenses Water well, Water well. Turbotax 2008 free edition , Water wells. Turbotax 2008 free edition Weather-related sales, livestock, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. Turbotax 2008 free edition Withholding Income tax, Federal Income Tax Withholding Social security and Medicare tax, Social Security and Medicare Taxes Prev  Up     Home   More Online Publications
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Report Phishing

The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

What is phishing?
Phishing is a scam typically carried out by unsolicited email and/or websites that pose as legitimate sites and lure unsuspecting victims to provide personal and financial information.

All unsolicited email claiming to be from either the IRS or any other IRS-related components such as the Office of Professional Responsibility or EFTPS, should be reported to phishing@irs.gov.

However, if you have experienced monetary losses due to an IRS-related incident please file a complaint with the Federal Trade Commission through their Complaint Assistant to make that information available to investigators.

ALERT: IRS Warns of Phone Scam

What to do if you receive a suspicious IRS-related communication

If

Then

You receive an email claiming to be from the IRS that contains a request for personal information …
  1. Do not reply.
  2. Do not open any attachments. Attachments may contain malicious code that will infect your computer.
  3. Do not click on any links.
    If you clicked on links in a suspicious email or phishing website and entered confidential information, visit our identity protection page.
  4. Forward the email as-is, to us at phishing@irs.gov.
  5. After you forward the email and/or header information to us, delete the original email message you received.

Note:
Please forward the full original email to us at phishing@irs.gov. Do not forward scanned images of printed emails as that strips the email of valuable information only available in the electronic copy.

You discover a website on the Internet that claims to be the IRS but you suspect it is bogus … ... send the URL of the suspicious site to phishing@irs.gov. Please add in the subject line of the email, 'Suspicious website'.
You receive a phone call or paper letter via mail from an individual claiming to be the IRS but you suspect they are not an IRS employee …

Phone call:

  1. Ask for a call back number and employee badge number.
  2. Contact the IRS to determine if the caller is an IRS employee with a legitimate need to contact you.
  3. If you determine the person calling you is an IRS employee with a legitimate need to contact you, call them back.

Letter or notice via paper mail:

  1. Contact the IRS to determine if the mail is a legitimate IRS letter.
  2. If it is a legitimate IRS letter, reply if needed.

Report the incident to the Treasury Inspector General for Tax Administration if the caller or party that sent the paper letter is not legitimate.

You receive an unsolicited e-mail or fax, involving a stock or share purchase 

... and you are a U.S. citizen located in the United States or its territories or a U.S. citizen living abroad.

  1. Complete the appropriate complaint form with the U.S. Securities and Exchange Commission.
  2. Forward email to phishing@irs.gov.
    Please add in the subject line of the email, 'Stock'.
  3. If you are a victim of monetary or identity theft, you may submit a complaint through the FTC Complaint Assistant.  

... and you are not a U.S. citizen and reside outside the United States.

  1. Complete the appropriate complaint form with the U.S. Securities and Exchange Commission.
  2. Contact your securities regulator and file a complaint.
  3. Forward email to phishing@irs.gov.
    Please add in the subject line of the e-mail, 'Stock'.
  4. If you are a victim of monetary or identity theft, you may report your complaint to econsumer.gov.
You receive an unsolicited fax (such as Form W8-BEN) claiming to be from the IRS, requesting personal information … Contact the IRS to determine if the fax is from the IRS.
  • If you learn the fax is not from the IRS, please send us the information via email at phishing@irs.gov. In the subject line of the email, please type the word ‘FAX’.
You receive a text message or Short Message Service (SMS) message claiming to be from the IRS …
  1. Do not reply.
  2. Do not open any attachments. Attachments may contain malicious code that will infect your computer or mobile phone.
  3. Do not click on any links. If you clicked on links in a suspicious SMS and entered confidential information, visit our identity protection page.
  4. Forward the text as-is, to us at 202-552-1226. Note: Standard text messaging rates apply.
  5. If possible, in a separate text, forward the originating number to us at 202-552-1226
  6. After you forward the text, please delete the original text.

You have a tax-related question ...

Note: Do not submit tax-related questions to phishing@irs.gov.

If you have a tax-related question, unrelated to phishing or identity theft, please contact the IRS.

How to identify phishing email scams claiming to be from the IRS and bogus IRS websites


The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

The IRS does not:

  • request detailed personal information through e-mail.
  • send any communication requesting your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.

What to do if you receive a suspicious email message that does not claim to be from the IRS

 If

 Then

You receive a suspicious phishing email not claiming to be from the IRS ... Forward the email as-is to reportphishing@antiphishing.org.
You receive an email you suspect contains malicious code or a malicious attachment and you HAVE clicked on the link or downloaded the attachment … Visit OnGuardOnline.gov to learn what to do if you suspect you have malware on your computer.
You receive an email you suspect contains malicious code or a malicious attachment and you HAVE NOT clicked on the link or downloaded the attachment … Forward the email to your Internet Service Provider’s abuse department and/or to spam@uce.gov.

 

 

Page Last Reviewed or Updated: 26-Mar-2014

Phishing-Malware

See YouTube for more ID theft videos.

 

The Turbotax 2008 Free Edition

Turbotax 2008 free edition 2. Turbotax 2008 free edition   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. Turbotax 2008 free edition Surviving spouse. Turbotax 2008 free edition Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. Turbotax 2008 free edition Payments from a state fund for victims of crime. Turbotax 2008 free edition Home Affordable Modification Program (HAMP). Turbotax 2008 free edition Mortgage assistance payments. Turbotax 2008 free edition Payments to reduce cost of winter energy use. Turbotax 2008 free edition Nutrition Program for the Elderly. Turbotax 2008 free edition Reemployment Trade Adjustment Assistance (RTAA). Turbotax 2008 free edition Generally, income is taxable unless it is specifically exempt (not taxed) by law. Turbotax 2008 free edition Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. Turbotax 2008 free edition Under special provisions of the law, certain items are partially or fully exempt from tax. Turbotax 2008 free edition Provisions that are of special interest to older taxpayers are discussed in this chapter. Turbotax 2008 free edition Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. Turbotax 2008 free edition In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. Turbotax 2008 free edition You need not receive the compensation in cash for it to be taxable. Turbotax 2008 free edition Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. Turbotax 2008 free edition Volunteer work. Turbotax 2008 free edition   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. Turbotax 2008 free edition Retired Senior Volunteer Program (RSVP). Turbotax 2008 free edition Foster Grandparent Program. Turbotax 2008 free edition Senior Companion Program. Turbotax 2008 free edition Service Corps of Retired Executives (SCORE). Turbotax 2008 free edition Unemployment compensation. Turbotax 2008 free edition   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. Turbotax 2008 free edition More information. Turbotax 2008 free edition   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. Turbotax 2008 free edition Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. Turbotax 2008 free edition A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. Turbotax 2008 free edition A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. Turbotax 2008 free edition A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. Turbotax 2008 free edition More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. Turbotax 2008 free edition Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. Turbotax 2008 free edition Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. Turbotax 2008 free edition These are discussed in Publication 590. Turbotax 2008 free edition If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. Turbotax 2008 free edition If you do not file Form 8606 with your return, you may have to pay a $50 penalty. Turbotax 2008 free edition Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Turbotax 2008 free edition Early distributions. Turbotax 2008 free edition   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. Turbotax 2008 free edition You must include early distributions of taxable amounts in your gross income. Turbotax 2008 free edition These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. Turbotax 2008 free edition For purposes of the additional 10% tax, an IRA is a qualified retirement plan. Turbotax 2008 free edition For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. Turbotax 2008 free edition After age 59½ and before age 70½. Turbotax 2008 free edition   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. Turbotax 2008 free edition Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. Turbotax 2008 free edition Required distributions. Turbotax 2008 free edition   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. Turbotax 2008 free edition See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. Turbotax 2008 free edition If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. Turbotax 2008 free edition For purposes of the 50% excise tax, an IRA is a qualified retirement plan. Turbotax 2008 free edition For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. Turbotax 2008 free edition See also Excess Accumulations (Insufficient Distributions) in Publication 590. Turbotax 2008 free edition Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. Turbotax 2008 free edition However, see Insurance Premiums for Retired Public Safety Officers , later. Turbotax 2008 free edition If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). Turbotax 2008 free edition This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. Turbotax 2008 free edition The rest of each payment is taxable. Turbotax 2008 free edition However, see Insurance Premiums for Retired Public Safety Officers , later. Turbotax 2008 free edition You figure the tax-free part of the payment using one of the following methods. Turbotax 2008 free edition Simplified Method. Turbotax 2008 free edition You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). Turbotax 2008 free edition You cannot use this method if your annuity is paid under a nonqualified plan. Turbotax 2008 free edition General Rule. Turbotax 2008 free edition You must use this method if your annuity is paid under a nonqualified plan. Turbotax 2008 free edition You generally cannot use this method if your annuity is paid under a qualified plan. Turbotax 2008 free edition Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. Turbotax 2008 free edition You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. Turbotax 2008 free edition Exclusion limit. Turbotax 2008 free edition   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. Turbotax 2008 free edition Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Turbotax 2008 free edition This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. Turbotax 2008 free edition   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. Turbotax 2008 free edition If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. Turbotax 2008 free edition The total exclusion may be more than your cost. Turbotax 2008 free edition Cost. Turbotax 2008 free edition   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). Turbotax 2008 free edition Your total cost in the plan includes everything that you paid. Turbotax 2008 free edition It also includes amounts your employer contributed that were taxable to you when paid. Turbotax 2008 free edition However, see Foreign employment contributions , later. Turbotax 2008 free edition   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. Turbotax 2008 free edition   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. Turbotax 2008 free edition    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Turbotax 2008 free edition , that you receive. Turbotax 2008 free edition Foreign employment contributions. Turbotax 2008 free edition   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. Turbotax 2008 free edition For details, see Foreign employment contributions in Publication 575. Turbotax 2008 free edition Withholding. Turbotax 2008 free edition   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. Turbotax 2008 free edition However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. Turbotax 2008 free edition (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. Turbotax 2008 free edition ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. Turbotax 2008 free edition   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. Turbotax 2008 free edition Simplified Method. Turbotax 2008 free edition   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. Turbotax 2008 free edition For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. Turbotax 2008 free edition For any other annuity, this number is the number of monthly annuity payments under the contract. Turbotax 2008 free edition Who must use the Simplified Method. Turbotax 2008 free edition   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). Turbotax 2008 free edition   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. Turbotax 2008 free edition If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. Turbotax 2008 free edition Guaranteed payments. Turbotax 2008 free edition   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. Turbotax 2008 free edition If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. Turbotax 2008 free edition Who cannot use the Simplified Method. Turbotax 2008 free edition   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). Turbotax 2008 free edition   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. Turbotax 2008 free edition If you did not have to use the General Rule, you could have chosen to use it. Turbotax 2008 free edition You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. Turbotax 2008 free edition   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. Turbotax 2008 free edition   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. Turbotax 2008 free edition Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. Turbotax 2008 free edition   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. Turbotax 2008 free edition How to use the Simplified Method. Turbotax 2008 free edition   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. Turbotax 2008 free edition Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. Turbotax 2008 free edition   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. Turbotax 2008 free edition How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. Turbotax 2008 free edition For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. Turbotax 2008 free edition    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. Turbotax 2008 free edition Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. Turbotax 2008 free edition Single-life annuity. Turbotax 2008 free edition   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. Turbotax 2008 free edition Enter on line 3 the number shown for your age on your annuity starting date. Turbotax 2008 free edition This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Turbotax 2008 free edition Multiple-lives annuity. Turbotax 2008 free edition   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. Turbotax 2008 free edition Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. Turbotax 2008 free edition For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. Turbotax 2008 free edition For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. Turbotax 2008 free edition Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. Turbotax 2008 free edition   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. Turbotax 2008 free edition Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. Turbotax 2008 free edition This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Turbotax 2008 free edition Fixed-period annuities. Turbotax 2008 free edition   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. Turbotax 2008 free edition Line 6. Turbotax 2008 free edition   The amount on line 6 should include all amounts that could have been recovered in prior years. Turbotax 2008 free edition If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. Turbotax 2008 free edition    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. Turbotax 2008 free edition Example. Turbotax 2008 free edition Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. Turbotax 2008 free edition Bill's annuity starting date is January 1, 2013. Turbotax 2008 free edition The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. Turbotax 2008 free edition Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. Turbotax 2008 free edition Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. Turbotax 2008 free edition Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. Turbotax 2008 free edition See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. Turbotax 2008 free edition You can find a blank version of this worksheet in Publication 575. Turbotax 2008 free edition (The references in the illustrated worksheet are to sections in Publication 575). Turbotax 2008 free edition His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. Turbotax 2008 free edition Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). Turbotax 2008 free edition Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. Turbotax 2008 free edition The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. Turbotax 2008 free edition If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. Turbotax 2008 free edition This deduction is not subject to the 2%-of-adjusted-gross-income limit. Turbotax 2008 free edition Worksheet 2-A. Turbotax 2008 free edition Simplified Method Worksheet—Illustrated 1. Turbotax 2008 free edition Enter the total pension or annuity payments received this year. Turbotax 2008 free edition Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Turbotax 2008 free edition $ 14,400 2. Turbotax 2008 free edition Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. Turbotax 2008 free edition 31,000   Note. Turbotax 2008 free edition If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Turbotax 2008 free edition Otherwise, go to line 3. Turbotax 2008 free edition     3. Turbotax 2008 free edition Enter the appropriate number from Table 1 below. Turbotax 2008 free edition But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. Turbotax 2008 free edition 310 4. Turbotax 2008 free edition Divide line 2 by the number on line 3 4. Turbotax 2008 free edition 100 5. Turbotax 2008 free edition Multiply line 4 by the number of months for which this year's payments were made. Turbotax 2008 free edition If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Turbotax 2008 free edition Otherwise, go to line 6 5. Turbotax 2008 free edition 1,200 6. Turbotax 2008 free edition Enter any amount previously recovered tax free in years after 1986. Turbotax 2008 free edition This is the amount shown on line 10 of your worksheet for last year 6. Turbotax 2008 free edition 0 7. Turbotax 2008 free edition Subtract line 6 from line 2 7. Turbotax 2008 free edition 31,000 8. Turbotax 2008 free edition Enter the smaller of line 5 or line 7 8. Turbotax 2008 free edition 1,200 9. Turbotax 2008 free edition Taxable amount for year. Turbotax 2008 free edition Subtract line 8 from line 1. Turbotax 2008 free edition Enter the result, but not less than zero. Turbotax 2008 free edition Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Turbotax 2008 free edition Note. Turbotax 2008 free edition If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Turbotax 2008 free edition If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. Turbotax 2008 free edition 9. Turbotax 2008 free edition $ 13,200 10. Turbotax 2008 free edition Was your annuity starting date before 1987? □ Yes. Turbotax 2008 free edition STOP. Turbotax 2008 free edition Do not complete the rest of this worksheet. Turbotax 2008 free edition  ☑ No. Turbotax 2008 free edition Add lines 6 and 8. Turbotax 2008 free edition This is the amount you have recovered tax free through 2013. Turbotax 2008 free edition You will need this number if you need to fill out this worksheet next year. Turbotax 2008 free edition 10. Turbotax 2008 free edition 1,200 11. Turbotax 2008 free edition Balance of cost to be recovered. Turbotax 2008 free edition Subtract line 10 from line 2. Turbotax 2008 free edition If zero, you will not have to complete this worksheet next year. Turbotax 2008 free edition The payments you receive next year will generally be fully taxable 11. Turbotax 2008 free edition $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Turbotax 2008 free edition   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . Turbotax 2008 free edition . Turbotax 2008 free edition . Turbotax 2008 free edition   BEFORE November 19, 1996, enter on line 3 . Turbotax 2008 free edition . Turbotax 2008 free edition . Turbotax 2008 free edition AFTER November 18, 1996, enter on line 3 . Turbotax 2008 free edition . Turbotax 2008 free edition . Turbotax 2008 free edition   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . Turbotax 2008 free edition . Turbotax 2008 free edition . Turbotax 2008 free edition   THEN enter on line 3 . Turbotax 2008 free edition . Turbotax 2008 free edition . Turbotax 2008 free edition         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. Turbotax 2008 free edition   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. Turbotax 2008 free edition   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. Turbotax 2008 free edition The retiree's cost has already been recovered tax free. Turbotax 2008 free edition   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. Turbotax 2008 free edition The resulting tax-free amount will then remain fixed. Turbotax 2008 free edition Any increases in the survivor annuity are fully taxable. Turbotax 2008 free edition   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. Turbotax 2008 free edition See Simplified Method , earlier. Turbotax 2008 free edition How to report. Turbotax 2008 free edition   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. Turbotax 2008 free edition If your pension or annuity is fully taxable, enter it on line 16b. Turbotax 2008 free edition Do not make an entry on line 16a. Turbotax 2008 free edition   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. Turbotax 2008 free edition If your pension or annuity is fully taxable, enter it on line 12b. Turbotax 2008 free edition Do not make an entry on line 12a. Turbotax 2008 free edition   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. Turbotax 2008 free edition If your pension or annuity is fully taxable, enter it on line 17b. Turbotax 2008 free edition Do not make an entry on line 17a. Turbotax 2008 free edition Example. Turbotax 2008 free edition You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. Turbotax 2008 free edition You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). Turbotax 2008 free edition The entire $1,200 is taxable. Turbotax 2008 free edition You include $1,200 only on Form 1040, line 16b. Turbotax 2008 free edition Joint return. Turbotax 2008 free edition   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. Turbotax 2008 free edition Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. Turbotax 2008 free edition Form 1099-R. Turbotax 2008 free edition   You should receive a Form 1099-R for your pension or annuity. Turbotax 2008 free edition Form 1099-R shows your pension or annuity for the year and any income tax withheld. Turbotax 2008 free edition You should receive a Form W-2 if you receive distributions from certain nonqualified plans. Turbotax 2008 free edition You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. Turbotax 2008 free edition Generally, you should be sent these forms by January 31, 2014. Turbotax 2008 free edition Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. Turbotax 2008 free edition Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. Turbotax 2008 free edition For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. Turbotax 2008 free edition The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. Turbotax 2008 free edition See Tax on Early Distributions, later. Turbotax 2008 free edition Lump-sum distributions. Turbotax 2008 free edition   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. Turbotax 2008 free edition The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. Turbotax 2008 free edition The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. Turbotax 2008 free edition You may be able to use the 10-year tax option to figure tax on the ordinary income part. Turbotax 2008 free edition Form 1099-R. Turbotax 2008 free edition   If you receive a total distribution from a plan, you should receive a Form 1099-R. Turbotax 2008 free edition If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. Turbotax 2008 free edition The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. Turbotax 2008 free edition More information. Turbotax 2008 free edition   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. Turbotax 2008 free edition Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. Turbotax 2008 free edition The tax applies to the taxable part of the distribution. Turbotax 2008 free edition For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). Turbotax 2008 free edition  An IRA is also a qualified retirement plan for purposes of this tax. Turbotax 2008 free edition General exceptions to tax. Turbotax 2008 free edition   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. Turbotax 2008 free edition Additional exceptions. Turbotax 2008 free edition   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. Turbotax 2008 free edition See Publication 575 for details. Turbotax 2008 free edition Reporting tax. Turbotax 2008 free edition   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. Turbotax 2008 free edition 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. Turbotax 2008 free edition See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. Turbotax 2008 free edition Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. Turbotax 2008 free edition Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. Turbotax 2008 free edition However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. Turbotax 2008 free edition For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). Turbotax 2008 free edition  An IRA is also a qualified retirement plan for purposes of this tax. Turbotax 2008 free edition An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. Turbotax 2008 free edition 5% owners. Turbotax 2008 free edition   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. Turbotax 2008 free edition See Publication 575 for more information. Turbotax 2008 free edition Amount of tax. Turbotax 2008 free edition   If you do not receive the required minimum distribution, you are subject to an additional tax. Turbotax 2008 free edition The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. Turbotax 2008 free edition You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. Turbotax 2008 free edition Form 5329. Turbotax 2008 free edition   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. Turbotax 2008 free edition Additional information. Turbotax 2008 free edition   For more detailed information on the tax on excess accumulation, see Publication 575. Turbotax 2008 free edition Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. Turbotax 2008 free edition The premiums can be for coverage for you, your spouse, or dependent(s). Turbotax 2008 free edition The distribution must be made directly from the plan to the insurance provider. Turbotax 2008 free edition You can exclude from income the smaller of the amount of the insurance premiums or $3,000. Turbotax 2008 free edition You can only make this election for amounts that would otherwise be included in your income. Turbotax 2008 free edition The amount excluded from your income cannot be used to claim a medical expense deduction. Turbotax 2008 free edition An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. Turbotax 2008 free edition If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. Turbotax 2008 free edition The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. Turbotax 2008 free edition Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Turbotax 2008 free edition Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Turbotax 2008 free edition Enter “PSO” next to the appropriate line on which you report the taxable amount. Turbotax 2008 free edition Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. Turbotax 2008 free edition These categories are treated differently for income tax purposes. Turbotax 2008 free edition Social security equivalent benefits. Turbotax 2008 free edition   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. Turbotax 2008 free edition This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. Turbotax 2008 free edition (See Social Security and Equivalent Railroad Retirement Benefits , later. Turbotax 2008 free edition ) Non-social security equivalent benefits. Turbotax 2008 free edition   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). Turbotax 2008 free edition It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. Turbotax 2008 free edition This category of benefits is treated as an amount received from a qualified employee plan. Turbotax 2008 free edition This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. Turbotax 2008 free edition Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. Turbotax 2008 free edition More information. Turbotax 2008 free edition   For more information about railroad retirement benefits, see Publication 575. Turbotax 2008 free edition Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. Turbotax 2008 free edition But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. Turbotax 2008 free edition For more information, including information about veterans' benefits and insurance, see Publication 525. Turbotax 2008 free edition Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Turbotax 2008 free edition Social security benefits include monthly retirement, survivor, and disability benefits. Turbotax 2008 free edition They do not include supplemental security income (SSI) payments, which are not taxable. Turbotax 2008 free edition Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Turbotax 2008 free edition They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Turbotax 2008 free edition If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. Turbotax 2008 free edition Are Any of Your Benefits Taxable? Note. Turbotax 2008 free edition When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Turbotax 2008 free edition  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Turbotax 2008 free edition When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Turbotax 2008 free edition S. Turbotax 2008 free edition savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. Turbotax 2008 free edition Figuring total income. Turbotax 2008 free edition   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. Turbotax 2008 free edition If that total amount is more than your base amount, part of your benefits may be taxable. Turbotax 2008 free edition If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Turbotax 2008 free edition Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. Turbotax 2008 free edition If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. Turbotax 2008 free edition If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Turbotax 2008 free edition Worksheet 2-B. Turbotax 2008 free edition A Quick Way To Check if Your Benefits May Be Taxable A. Turbotax 2008 free edition Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Turbotax 2008 free edition Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. Turbotax 2008 free edition (If you received more than one form, combine the amounts from box 5  and enter the total. Turbotax 2008 free edition ) A. Turbotax 2008 free edition     Note. Turbotax 2008 free edition If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. Turbotax 2008 free edition     B. Turbotax 2008 free edition Enter one-half of the amount on line A B. Turbotax 2008 free edition   C. Turbotax 2008 free edition Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Turbotax 2008 free edition   D. Turbotax 2008 free edition Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. Turbotax 2008 free edition S. Turbotax 2008 free edition savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. Turbotax 2008 free edition   E. Turbotax 2008 free edition Add lines B, C, and D and enter the total E. Turbotax 2008 free edition   F. Turbotax 2008 free edition If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. Turbotax 2008 free edition   G. Turbotax 2008 free edition Is the amount on line F less than or equal to the amount on line E? □ No. Turbotax 2008 free edition None of your benefits are taxable this year. Turbotax 2008 free edition  □ Yes. Turbotax 2008 free edition Some of your benefits may be taxable. Turbotax 2008 free edition To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. Turbotax 2008 free edition     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. Turbotax 2008 free edition Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Turbotax 2008 free edition It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Turbotax 2008 free edition If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Turbotax 2008 free edition Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Turbotax 2008 free edition Your repayments are shown in box 4. Turbotax 2008 free edition The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Turbotax 2008 free edition Use the amount in box 5 to figure whether any of your benefits are taxable. Turbotax 2008 free edition Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. Turbotax 2008 free edition If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. Turbotax 2008 free edition If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. Turbotax 2008 free edition For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. Turbotax 2008 free edition How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. Turbotax 2008 free edition Generally, the higher that total amount, the greater the taxable part of your benefits. Turbotax 2008 free edition Maximum taxable part. Turbotax 2008 free edition   The taxable part of your benefits usually cannot be more than 50%. Turbotax 2008 free edition However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Turbotax 2008 free edition The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Turbotax 2008 free edition You are married filing separately and lived with your spouse at any time during 2013. Turbotax 2008 free edition   If you are a nonresident alien, 85% of your benefits are taxable. Turbotax 2008 free edition However, this income is exempt under some tax treaties. Turbotax 2008 free edition Which worksheet to use. Turbotax 2008 free edition   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. Turbotax 2008 free edition However, you will need to use a different worksheet(s) if any of the following situations applies to you. Turbotax 2008 free edition You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. Turbotax 2008 free edition In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. Turbotax 2008 free edition Situation (1) does not apply and you take one or more of the following exclusions. Turbotax 2008 free edition Interest from qualified U. Turbotax 2008 free edition S. Turbotax 2008 free edition savings bonds (Form 8815). Turbotax 2008 free edition Employer-provided adoption benefits (Form 8839). Turbotax 2008 free edition Foreign earned income or housing (Form 2555 or Form 2555-EZ). Turbotax 2008 free edition Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. Turbotax 2008 free edition In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. Turbotax 2008 free edition You received a lump-sum payment for an earlier year. Turbotax 2008 free edition In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Turbotax 2008 free edition See Lump-Sum Election , later. Turbotax 2008 free edition How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. Turbotax 2008 free edition You cannot use Form 1040EZ. Turbotax 2008 free edition Reporting on Form 1040. Turbotax 2008 free edition   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. Turbotax 2008 free edition If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. Turbotax 2008 free edition Reporting on Form 1040A. Turbotax 2008 free edition   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. Turbotax 2008 free edition If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. Turbotax 2008 free edition Reporting on Form 1040NR. Turbotax 2008 free edition   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. Turbotax 2008 free edition Benefits not taxable. Turbotax 2008 free edition   If you are filing Form 1040EZ, do not report any benefits on your tax return. Turbotax 2008 free edition If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. Turbotax 2008 free edition Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Turbotax 2008 free edition If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Turbotax 2008 free edition Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. Turbotax 2008 free edition This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. Turbotax 2008 free edition No part of the lump-sum death benefit is subject to tax. Turbotax 2008 free edition For more information about the lump-sum death benefit, visit the Social Security Administration website at www. Turbotax 2008 free edition SSA. Turbotax 2008 free edition gov, and use keyword: death benefit. Turbotax 2008 free edition Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Turbotax 2008 free edition However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. Turbotax 2008 free edition You can elect this method if it lowers your taxable benefits. Turbotax 2008 free edition See Publication 915 for more information. Turbotax 2008 free edition Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. Turbotax 2008 free edition If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Turbotax 2008 free edition If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. Turbotax 2008 free edition If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. Turbotax 2008 free edition S. Turbotax 2008 free edition Railroad Retirement Board field office. Turbotax 2008 free edition Joint return. Turbotax 2008 free edition   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. Turbotax 2008 free edition You do this to get your net benefits when figuring if your combined benefits are taxable. Turbotax 2008 free edition Repayment of benefits received in an earlier year. Turbotax 2008 free edition   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. Turbotax 2008 free edition   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Turbotax 2008 free edition Claim it on Schedule A (Form 1040), line 23. Turbotax 2008 free edition   If this deduction is more than $3,000, you have to follow some special instructions. Turbotax 2008 free edition See Publication 915 for those instructions. Turbotax 2008 free edition Sickness and Injury Benefits Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. Turbotax 2008 free edition If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. Turbotax 2008 free edition However, certain payments may not be taxable to you. Turbotax 2008 free edition Some of these payments are discussed later in this section. Turbotax 2008 free edition Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. Turbotax 2008 free edition Cost paid by you. Turbotax 2008 free edition   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. Turbotax 2008 free edition If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. Turbotax 2008 free edition Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. Turbotax 2008 free edition You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. Turbotax 2008 free edition Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Turbotax 2008 free edition If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. Turbotax 2008 free edition See Credit for the Elderly or the Disabled, later. Turbotax 2008 free edition For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. Turbotax 2008 free edition Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Turbotax 2008 free edition Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. Turbotax 2008 free edition For more information on pensions and annuities, see Publication 575. Turbotax 2008 free edition Retirement and profit-sharing plans. Turbotax 2008 free edition   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. Turbotax 2008 free edition The payments must be reported as a pension or annuity. Turbotax 2008 free edition Accrued leave payment. Turbotax 2008 free edition   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. Turbotax 2008 free edition The payment is not a disability payment. Turbotax 2008 free edition Include it in your income in the tax year you receive it. Turbotax 2008 free edition Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. Turbotax 2008 free edition Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. Turbotax 2008 free edition However, the amount you can exclude may be limited. Turbotax 2008 free edition Long-term care insurance contracts are discussed in more detail in Publication 525. Turbotax 2008 free edition Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. Turbotax 2008 free edition The exemption also applies to your survivors. Turbotax 2008 free edition The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. Turbotax 2008 free edition If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. Turbotax 2008 free edition For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. Turbotax 2008 free edition Return to work. Turbotax 2008 free edition   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. Turbotax 2008 free edition Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. Turbotax 2008 free edition Federal Employees' Compensation Act (FECA). Turbotax 2008 free edition   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. Turbotax 2008 free edition However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. Turbotax 2008 free edition Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. Turbotax 2008 free edition Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. Turbotax 2008 free edition    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. Turbotax 2008 free edition For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. Turbotax 2008 free edition Other compensation. Turbotax 2008 free edition   Many other amounts you receive as compensation for sickness or injury are not taxable. Turbotax 2008 free edition These include the following amounts. Turbotax 2008 free edition Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. Turbotax 2008 free edition Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. Turbotax 2008 free edition Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). Turbotax 2008 free edition This compensation must be based only on the injury and not on the period of your absence from work. Turbotax 2008 free edition These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. Turbotax 2008 free edition 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. Turbotax 2008 free edition This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. Turbotax 2008 free edition Proceeds not received in installments. Turbotax 2008 free edition   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. Turbotax 2008 free edition 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. Turbotax 2008 free edition Proceeds received in installments. Turbotax 2008 free edition   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. Turbotax 2008 free edition   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. Turbotax 2008 free edition Include anything over this excluded part in your income as interest. Turbotax 2008 free edition Installments for life. Turbotax 2008 free edition   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. Turbotax 2008 free edition If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. Turbotax 2008 free edition Surviving spouse. Turbotax 2008 free edition   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, in any year, up to $1,000 of the interest included in the installments. Turbotax 2008 free edition If you remarry, you can continue to take the exclusion. Turbotax 2008 free edition Surrender of policy for cash. Turbotax 2008 free edition   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. Turbotax 2008 free edition In general, 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. Turbotax 2008 free edition You should receive a Form 1099-R showing the total proceeds and the taxable part. Turbotax 2008 free edition Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. Turbotax 2008 free edition Endowment Contract Proceeds An endowment contract is a policy that pays over to you 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. Turbotax 2008 free edition 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. Turbotax 2008 free edition To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. Turbotax 2008 free edition Include in your income the part of the lump-sum payment that is more than your cost. Turbotax 2008 free edition Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. Turbotax 2008 free edition The tax treatment of an annuity is explained in Publication 575. Turbotax 2008 free edition For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. Turbotax 2008 free edition This election must be made within 60 days after the lump-sum payment first becomes payable to you. Turbotax 2008 free edition Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. Turbotax 2008 free edition However, see Exception , later. Turbotax 2008 free edition For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Turbotax 2008 free edition Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. Turbotax 2008 free edition In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. Turbotax 2008 free edition Generally, a viatical settlement provider is one 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. Turbotax 2008 free edition To report taxable 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. Turbotax 2008 free edition Terminally or chronically ill defined. Turbotax 2008 free edition   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. Turbotax 2008 free edition A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. Turbotax 2008 free edition The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. Turbotax 2008 free edition The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. Turbotax 2008 free edition Exception. Turbotax 2008 free edition   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. Turbotax 2008 free edition Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. Turbotax 2008 free edition Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. Turbotax 2008 free edition You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. Turbotax 2008 free edition Main home. Turbotax 2008 free edition   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Turbotax 2008 free edition Repaying the first-time homebuyer credit because you sold your home. Turbotax 2008 free edition   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. Turbotax 2008 free edition For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. Turbotax 2008 free edition   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. Turbotax 2008 free edition If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. Turbotax 2008 free edition If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. Turbotax 2008 free edition   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. Turbotax 2008 free edition Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. Turbotax 2008 free edition You meet the ownership test. Turbotax 2008 free edition You meet the use test. Turbotax 2008 free edition During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. Turbotax 2008 free edition You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . Turbotax 2008 free edition Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. Turbotax 2008 free edition This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). Turbotax 2008 free edition Exception to ownership and use tests. Turbotax 2008 free edition   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. Turbotax 2008 free edition Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. Turbotax 2008 free edition The maximum amount you can exclude will be reduced. Turbotax 2008 free edition See Publication 523, Selling Your Home, for more information. Turbotax 2008 free edition Exception to use test for individuals with a disability. Turbotax 2008 free edition   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. Turbotax 2008 free edition Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. Turbotax 2008 free edition   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. Turbotax 2008 free edition Exception to ownership test for property acquired in a like-kind exchange. Turbotax 2008 free edition   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. Turbotax 2008 free edition This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. Turbotax 2008 free edition A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. Turbotax 2008 free edition See Publication 523 for more information. Turbotax 2008 free edition Period of nonqualified use. Turbotax 2008 free edition   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. Turbotax 2008 free edition Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. Turbotax 2008 free edition See Publication 523 for more information. Turbotax 2008 free edition Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. Turbotax 2008 free edition However, see Special rules for joint returns , next. Turbotax 2008 free edition Special rules for joint returns. Turbotax 2008 free edition   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. Turbotax 2008 free edition You are married and file a joint return for the year. Turbotax 2008 free edition Either you or your spouse meets the ownership test. Turbotax 2008 free edition Both you and your spouse meet the use test. Turbotax 2008 free edition During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. Turbotax 2008 free edition Sale of home by surviving spouse. Turbotax 2008 free edition   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. Turbotax 2008 free edition   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. Turbotax 2008 free edition The sale or exchange took place no more than 2 years after the date of death of your spouse. Turbotax 2008 free edition You have not remarried. Turbotax 2008 free edition You and your spouse met the use test at the time of your spouse's death. Turbotax 2008 free edition You or your spouse met the ownership test at the time of your spouse's death. Turbotax 2008 free edition Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. Turbotax 2008 free edition Home transferred from spouse. Turbotax 2008 free edition   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. Turbotax 2008 free edition Use of home after divorce. Turbotax 2008 free edition   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. Turbotax 2008 free edition Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. Turbotax 2008 free edition However, you must meet the ownership and use tests. Turbotax 2008 free edition See Publication 523 for more information. Turbotax 2008 free edition Depreciation after May 6, 1997. Turbotax 2008 free edition   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. Turbotax 2008 free edition See Publication 523 for more information. Turbotax 2008 free edition Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. Turbotax 2008 free edition If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. Turbotax 2008 free edition Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. Turbotax 2008 free edition If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. Turbotax 2008 free edition See Publication 523 for more information. Turbotax 2008 free edition Reverse Mortgages A revers