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2008 Amended Tax Return

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2008 Amended Tax Return

2008 amended tax return Index A Additional child tax credit, Additional child tax credit. 2008 amended tax return Additional Medicare Tax, What's New, Useful Items - You may want to see:, Additional Medicare Tax. 2008 amended tax return , Additional Medicare Tax. 2008 amended tax return , Additional Medicare Tax. 2008 amended tax return , Additional Medicare Tax. 2008 amended tax return , Additional Medicare Tax. 2008 amended tax return , Additional Medicare Tax Aliens Nonresident (see specific possession) Resident (see specific possession) American Samoa, American Samoa, Double Taxation Form 4563, Form 4563. 2008 amended tax return Armed forces, U. 2008 amended tax return S. 2008 amended tax return Bona fide residence, Special rule for members of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return Armed Forces, U. 2008 amended tax return S. 2008 amended tax return Earned income credit, Earned income credit. 2008 amended tax return , U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return Source of income, U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return Spouse, Special rule for civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return Assistance (see Tax help) Awards and prizes, Scholarships, Fellowships, Grants, Prizes, and Awards B Bankruptcy cases, Chapter 11, Chapter 11 Bankruptcy cases. 2008 amended tax return Bona fide residence, Bona Fide Residence, Worldwide gross income. 2008 amended tax return Closer connection, Closer Connection, Exception for Year of Move Year of move, Exception for Year of Move, Special Rules in the Year of a Move, Puerto Rico Presence test, Presence Test, Charitable sports event, Charitable Sports Event Child, defined, Days of presence in a possession. 2008 amended tax return Nonresident aliens, Special rule for nonresident aliens. 2008 amended tax return Possession, days in, Days of presence in a possession. 2008 amended tax return Qualifying medical treatment, Qualifying Medical Treatment Significant connection, Significant Connection, Student, Student U. 2008 amended tax return S. 2008 amended tax return , days in, Days of presence in the United States. 2008 amended tax return Reporting change in residency status, Reporting a Change in Bona Fide Residence, Worldwide gross income. 2008 amended tax return Penalty for not reporting, Penalty for Not Filing Form 8898 Tax home, Tax Home, Year of Move Exceptions, Exceptions Government officials, Students and Government Officials Seafarers, Seafarers Students, Students and Government Officials Year of move, Year of Move, Special Rules in the Year of a Move, Puerto Rico Tests to meet, Bona Fide Residence U. 2008 amended tax return S. 2008 amended tax return Armed Forces, Special rule for members of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return Year of move, Special Rules in the Year of a Move, Puerto Rico Puerto Rico, Puerto Rico C Change in residency status, reporting, Reporting a Change in Bona Fide Residence, Worldwide gross income. 2008 amended tax return Penalty for not reporting, Penalty for Not Filing Form 8898 Change of address, Reminders Charitable sports event, Charitable Sports Event Child tax credit, additional, Additional child tax credit. 2008 amended tax return Child, defined, Days of presence in a possession. 2008 amended tax return Closer connection, Closer Connection, Exception for Year of Move Year of move, Exception for Year of Move, Special Rules in the Year of a Move, Puerto Rico CNMI tax return, Nonresident Alien (Other Than a Bona Fide Resident of the CNMI) Commonwealth of Puerto Rico, The Commonwealth of Puerto Rico, Double Taxation Commonwealth of the Northern Mariana Islands (CNMI), The Commonwealth of the Northern Mariana Islands, Double Taxation Form 5074, Form 5074. 2008 amended tax return Compensation for labor or personal services, Compensation for Labor or Personal Services, Pensions. 2008 amended tax return Alternative basis, Alternative basis. 2008 amended tax return Multi-year compensation, Multi-year compensation. 2008 amended tax return Time basis, Time basis. 2008 amended tax return Competent Authority Assistance, Competent Authority Assistance How to make your request, How to make your request. 2008 amended tax return Credit or Refund File a claim for credit or refund of any overpayment sought, Credit or Refund Credits Earned income, Reminders, Earned income credit. 2008 amended tax return Foreign tax, U. 2008 amended tax return S. 2008 amended tax return Government employees. 2008 amended tax return , Moving expense deduction. 2008 amended tax return , Foreign Tax Credit if Possession Income Is Excluded D Deductions IRA contribution, Individual retirement arrangement (IRA) deduction. 2008 amended tax return Moving expenses U. 2008 amended tax return S. 2008 amended tax return return, Moving expense deduction. 2008 amended tax return Personal exemptions, Personal Exemptions Self-employment tax, one-half of, Self-employment tax deduction. 2008 amended tax return Standard deduction, Standard Deduction Deductions if Possession Income Is Excluded, Deductions if Possession Income Is Excluded Dispositions of certain property, special rules for, Special Rules for Gains From Dispositions of Certain Property Dividends, Dividends. 2008 amended tax return Double taxation, inconsistent tax treatment Mutual agreement procedure, Double Taxation E Earned income credit, Reminders, Earned income credit. 2008 amended tax return Effectively connected income, Effectively Connected Income Estimated tax payments, Estimated tax payments. 2008 amended tax return , Estimated tax payments. 2008 amended tax return , Estimated tax payments. 2008 amended tax return , Estimated tax payments. 2008 amended tax return , Estimated tax payments. 2008 amended tax return , Estimated Tax Exemptions, deduction for, Personal Exemptions Extension of time to file U. 2008 amended tax return S. 2008 amended tax return return, Extension of Time To File USVI, Extension of time to file. 2008 amended tax return F Filing requirements American Samoa, American Samoa, Double Taxation Form 4563, Form 4563. 2008 amended tax return CNMI, The Commonwealth of the Northern Mariana Islands, Double Taxation Form 5074, Form 5074. 2008 amended tax return Guam, Guam, Double Taxation Form 5074, Form 5074. 2008 amended tax return Possessions, Filing Information for Individuals in Certain U. 2008 amended tax return S. 2008 amended tax return Possessions, Double Taxation Puerto Rico, The Commonwealth of Puerto Rico, Double Taxation U. 2008 amended tax return S. 2008 amended tax return return, Filing Requirement if Possession Income Is Excluded USVI, The U. 2008 amended tax return S. 2008 amended tax return Virgin Islands, Double Taxation Form 1040INFO, Form 1040INFO. 2008 amended tax return Form 4868, Extension of time to file. 2008 amended tax return Form 8689, Form 8689. 2008 amended tax return Foreign tax credit, Foreign Tax Credit if Possession Income Is Excluded Form 1040-ES, Estimated Tax 1040-PR, Additional child tax credit. 2008 amended tax return 1040-SS, Self-employment tax. 2008 amended tax return , Additional child tax credit. 2008 amended tax return , Self-employment tax. 2008 amended tax return , Self-employment tax. 2008 amended tax return , Self-employment tax. 2008 amended tax return 1040INFO, Form 1040INFO. 2008 amended tax return 1040NR, Nonresident alien. 2008 amended tax return , Nonresident alien. 2008 amended tax return , Nonresident Alien (Other Than a Bona Fide Resident of the CNMI), Nonresident Alien (Other Than a Bona Fide Resident of Guam), Nonresident Alien (Other Than a Bona Fide Resident of the USVI) 1116, U. 2008 amended tax return S. 2008 amended tax return Government employees. 2008 amended tax return , Moving expense deduction. 2008 amended tax return , Foreign Tax Credit if Possession Income Is Excluded 3903, Moving expense deduction. 2008 amended tax return , Moving expense deduction. 2008 amended tax return , Moving expense deduction. 2008 amended tax return , Moving expense deduction. 2008 amended tax return , Moving expense deduction. 2008 amended tax return , Moving expense deduction. 2008 amended tax return 4563, Form 4563. 2008 amended tax return 4563, illustrated example, Illustrated Example of Form 4563, Line 15. 2008 amended tax return , 4868, Extension of time to file. 2008 amended tax return , Automatic 6-Month Extension 5074, Form 5074. 2008 amended tax return , Moving expense deduction. 2008 amended tax return , Form 5074. 2008 amended tax return , Moving expense deduction. 2008 amended tax return 5074, illustrated example, Illustrated Example of Form 5074, Part III. 2008 amended tax return , 8689, Form 8689. 2008 amended tax return 8689, illustrated example, Illustrated Example of Form 8689, Part IV. 2008 amended tax return , 8822, Reminders 8898, Reporting a Change in Bona Fide Residence, Penalty for Not Filing Form 8898 Schedule A (Form 1040), Itemized Deductions Schedule SE (Form 1040), Self-Employment Tax Free tax services, Free help with your tax return. 2008 amended tax return Fringe benefits, Certain fringe benefits sourced on a geographical basis. 2008 amended tax return G Government employees, U. 2008 amended tax return S. 2008 amended tax return (see specific possession) Grants, Scholarships, Fellowships, Grants, Prizes, and Awards Guam, Guam, Double Taxation Form 5074, Form 5074. 2008 amended tax return H Help (see Tax help) I Income Awards and prizes, Scholarships, Fellowships, Grants, Prizes, and Awards Effectively connected income, Effectively Connected Income Grants, Scholarships, Fellowships, Grants, Prizes, and Awards Investments, Investment Income, Royalties. 2008 amended tax return Labor or personal services, Compensation for Labor or Personal Services, Pensions. 2008 amended tax return Pensions, Pensions. 2008 amended tax return Sales or other dispositions of property, Sales or Other Dispositions of Property, Special Rules for Gains From Dispositions of Certain Property Scholarships and fellowships, Scholarships, Fellowships, Grants, Prizes, and Awards Services performed partly within a possession, Services performed partly inside and partly outside a relevant possession. 2008 amended tax return , Alternative basis. 2008 amended tax return Source of, Possession Source Income U. 2008 amended tax return S. 2008 amended tax return Armed Forces, U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return U. 2008 amended tax return S. 2008 amended tax return income rule, U. 2008 amended tax return S. 2008 amended tax return income rule. 2008 amended tax return Income from American Samoa or Puerto Rico excluded. 2008 amended tax return , Income from American Samoa or Puerto Rico excluded. 2008 amended tax return Deductions if income from American Samoa or Puerto Rico excluded, Deductions if Possession Income Is Excluded Interest income, Interest income. 2008 amended tax return Inventory Sales or other dispositions of, Inventory. 2008 amended tax return Investment income, Investment Income, Royalties. 2008 amended tax return IRA deduction, Individual retirement arrangement (IRA) deduction. 2008 amended tax return Itemized deductions, Itemized Deductions M Medical treatment, qualifying, Qualifying Medical Treatment Moving expense deduction U. 2008 amended tax return S. 2008 amended tax return return, Moving expense deduction. 2008 amended tax return N Net Investment Income Tax, What's New, Useful Items - You may want to see:, Net Investment Income Tax. 2008 amended tax return , Net Investment Income Tax. 2008 amended tax return , Net Investment Income Tax Nonresident alien (see specific possession) Northern Mariana Islands (CNMI), The Commonwealth of the Northern Mariana Islands, Double Taxation P Paying your taxes, Paying Your Taxes Penalty Failure to report change in residency status, Penalty for Not Filing Form 8898 Pension income, Pensions. 2008 amended tax return Permanent home, Permanent home. 2008 amended tax return Personal exemptions, deduction for, Personal Exemptions Personal property Sales or other dispositions of, Personal property. 2008 amended tax return Personal service income, Compensation for Labor or Personal Services, Pensions. 2008 amended tax return Possession source income, Possession Source Income, Effectively Connected Income Awards and prizes, Scholarships, Fellowships, Grants, Prizes, and Awards Effectively connected income, Effectively Connected Income Grants, Scholarships, Fellowships, Grants, Prizes, and Awards Investment income, Investment Income, Royalties. 2008 amended tax return Labor or personal services, Compensation for Labor or Personal Services, Pensions. 2008 amended tax return Pensions, Pensions. 2008 amended tax return Sales or other dispositions of property, Sales or Other Dispositions of Property, Special Rules for Gains From Dispositions of Certain Property Scholarships and fellowships, Scholarships, Fellowships, Grants, Prizes, and Awards Services performed partly within a possession, Services performed partly inside and partly outside a relevant possession. 2008 amended tax return , Alternative basis. 2008 amended tax return U. 2008 amended tax return S. 2008 amended tax return Armed Forces, U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return U. 2008 amended tax return S. 2008 amended tax return income rule, U. 2008 amended tax return S. 2008 amended tax return income rule. 2008 amended tax return Possessions, list of, Introduction Presence test, Presence Test, Charitable sports event, Charitable Sports Event Child, defined, Days of presence in a possession. 2008 amended tax return Nonresident aliens, Special rule for nonresident aliens. 2008 amended tax return Possession, days in, Days of presence in a possession. 2008 amended tax return Qualifying medical treatment, Qualifying Medical Treatment Significant connection, Significant Connection, Permanent home, Permanent home. 2008 amended tax return Student, Student U. 2008 amended tax return S. 2008 amended tax return , days in, Days of presence in the United States. 2008 amended tax return Prizes, Scholarships, Fellowships, Grants, Prizes, and Awards Publications (see Tax help) Puerto Rico, The Commonwealth of Puerto Rico, Double Taxation Additional child tax credit, Additional child tax credit. 2008 amended tax return Bona fide residence Year of move, Puerto Rico Q Qualifying medical treatment, Qualifying Medical Treatment R Real property Sales or other dispositions of, Real property. 2008 amended tax return Reminders Earned income credit (EIC). 2008 amended tax return , Reminders Electronic filing. 2008 amended tax return , Reminders Rental income, Rental income. 2008 amended tax return Resident alien (see specific possession) Royalty income, Royalties. 2008 amended tax return S Scholarships and fellowships, Scholarships, Fellowships, Grants, Prizes, and Awards Self-employment tax U. 2008 amended tax return S. 2008 amended tax return return, Self-Employment Tax Self-employment tax deduction, Self-employment tax deduction. 2008 amended tax return Services performed partly within a possession, Services performed partly inside and partly outside a relevant possession. 2008 amended tax return , Alternative basis. 2008 amended tax return Significant connection, Significant Connection, Source of income, Possession Source Income, Effectively Connected Income Awards and prizes, Scholarships, Fellowships, Grants, Prizes, and Awards Effectively connected income, Effectively Connected Income Grants, Scholarships, Fellowships, Grants, Prizes, and Awards Investment income, Investment Income, Royalties. 2008 amended tax return Labor or personal services, Compensation for Labor or Personal Services, Pensions. 2008 amended tax return Pensions, Pensions. 2008 amended tax return Sales or other dispositions of property, Sales or Other Dispositions of Property, Special Rules for Gains From Dispositions of Certain Property Scholarships and fellowships, Scholarships, Fellowships, Grants, Prizes, and Awards Services performed partly within a possession, Services performed partly inside and partly outside a relevant possession. 2008 amended tax return , Alternative basis. 2008 amended tax return U. 2008 amended tax return S. 2008 amended tax return Armed Forces, U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return U. 2008 amended tax return S. 2008 amended tax return income rule, U. 2008 amended tax return S. 2008 amended tax return income rule. 2008 amended tax return Special rules for filing (see specific possession) Special rules for gains from dispositions of certain property, Special Rules for Gains From Dispositions of Certain Property Sports event, charitable, Charitable Sports Event Standard deduction, Standard Deduction Statement of Specified Foreign Financial Assets, Form 8938,, Reminders Student, Student T Tables U. 2008 amended tax return S. 2008 amended tax return filing requirements for most taxpayers (Table 4-1), U. 2008 amended tax return S. 2008 amended tax return source of income (Table 2-1), Table 2-1. 2008 amended tax return General Rules for Determining U. 2008 amended tax return S. 2008 amended tax return Source of Income Tax help, How To Get Tax Help Tax home, Tax Home, Year of Move Exceptions, Exceptions Government officials, Students and Government Officials Seafarers, Seafarers Students, Students and Government Officials Year of move, Year of Move, Special Rules in the Year of a Move, Puerto Rico Taxpayer Clinics, Low Income Taxpayer Clinics, Low Income Taxpayer Clinics (LITCs). 2008 amended tax return TTY/TDD information, How To Get Tax Help U U. 2008 amended tax return S. 2008 amended tax return Armed Forces Bona fide residence, Special rule for members of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return Earned income credit, Earned income credit. 2008 amended tax return , U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return Source of income, U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return Spouse, Special rule for civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return , Civilian spouse of active duty member of the U. 2008 amended tax return S. 2008 amended tax return Armed Forces. 2008 amended tax return U. 2008 amended tax return S. 2008 amended tax return Government employees (see specific possession) U. 2008 amended tax return S. 2008 amended tax return income rule, U. 2008 amended tax return S. 2008 amended tax return income rule. 2008 amended tax return U. 2008 amended tax return S. 2008 amended tax return return with excluded income, Deductions if Possession Income Is Excluded U. 2008 amended tax return S. 2008 amended tax return return, possession income excluded on, Special Rules for Completing Your U. 2008 amended tax return S. 2008 amended tax return Tax Return, Foreign Tax Credit if Possession Income Is Excluded Credits Earned income credit, Earned income credit. 2008 amended tax return Foreign tax credit, Foreign Tax Credit if Possession Income Is Excluded Deductions IRA contribution, Individual retirement arrangement (IRA) deduction. 2008 amended tax return Itemized deductions, Itemized Deductions Moving expenses, Moving expense deduction. 2008 amended tax return Personal exemptions, Personal Exemptions Self-employment tax, one-half of, Self-employment tax deduction. 2008 amended tax return Standard deduction, Standard Deduction U. 2008 amended tax return S. 2008 amended tax return taxation of possession income, to get information on, Introduction U. 2008 amended tax return S. 2008 amended tax return Virgin Islands (USVI), The U. 2008 amended tax return S. 2008 amended tax return Virgin Islands, Double Taxation Form 1040INFO, Form 1040INFO. 2008 amended tax return Form 4868, Extension of time to file. 2008 amended tax return Form 8689, Form 8689. 2008 amended tax return V Virgin Islands, U. 2008 amended tax return S. 2008 amended tax return , The U. 2008 amended tax return S. 2008 amended tax return Virgin Islands, Double Taxation W When to file U. 2008 amended tax return S. 2008 amended tax return return, When To File, Extension beyond 2 months. 2008 amended tax return Where To File U. 2008 amended tax return S. 2008 amended tax return return, Where To File Which return to file (see specific possession) Who must file U. 2008 amended tax return S. 2008 amended tax return return, Filing Requirement if Possession Income Is Excluded Prev  Up     Home   More Online Publications
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The 2008 Amended Tax Return

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