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2009 Tax Returns Online

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2009 Tax Returns Online

2009 tax returns online Publication 547(SP) - Introductory Material Table of Contents Qué Hay de Nuevo Recordatorios IntroductionCómo pedir formularios y publicaciones. 2009 tax returns online Preguntas sobre los impuestos. 2009 tax returns online Useful Items - You may want to see: Qué Hay de Nuevo Nueva Sección C en el Formulario 4684 para esquemas de inversión de tipo Ponzi (Ponzi-type schemes). 2009 tax returns online  La Sección C del Formulario 4684 (disponible en inglés) es nueva para el año 2013. 2009 tax returns online Usted debe completar la Seción C si está reclamando una deducción de pérdida por robo debido a un esquema de inversión de tipo Ponzi (Ponzi-type scheme) y estará usando el Procedimiento Tributario (Revenue Procedure) 2009-20, según modificado por el Procedimiento Tributario (Revenue Procedure) 2011-58. 2009 tax returns online La Sección C del Formulario 4864 reemplaza el Anexo A del Procedimiento Tributario (Revenue Procedure) 2009-20. 2009 tax returns online No necesita completar el Anexo A. 2009 tax returns online Para más información, vea Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes) , más adelante. 2009 tax returns online Recordatorios Acontecimientos futuros. 2009 tax returns online  Si desea obtener la información más reciente sobre los acontecimientos relacionados con la Publicación 547(SP), tal como legislación promulgada después que ésta fue impresa, acceda a www. 2009 tax returns online irs. 2009 tax returns online gov/Spanish/About-Publication-547(SP). 2009 tax returns online Fotografías de niños desaparecidos. 2009 tax returns online  El Servicio de Impuestos Internos (IRS, por sus siglas en inglés) se enorgullece en colaborar con el Centro Nacional de Niños Desaparecidos y Explotados (National Center for Missing and Exploited Children). 2009 tax returns online En esta publicación, pueden aparecer fotografías de niños desaparecidos que han sido seleccionadas por el Centro. 2009 tax returns online Estas fotografías aparecen en páginas que de otra manera estarían en blanco. 2009 tax returns online Usted puede ayudar a que estos niños regresen a sus hogares si identifica alguno de ellos y llama gratis al 1-800-THE-LOST (1-800-843-5678). 2009 tax returns online Introduction Esta publicación explica el trato tributario de casos de hechos fortuitos, robos y pérdidas de depósitos monetarios. 2009 tax returns online Un hecho fortuito ocurre cuando su propiedad resulta dañada por causa de algún desastre, como por ejemplo, una tormenta, un incendio, un accidente automovilístico u otro suceso de esta índole. 2009 tax returns online Un robo ocurre cuando alguien hurta sus bienes. 2009 tax returns online La pérdida de depósitos monetarios ocurre cuando su institución bancaria se declara insolvente o en quiebra (bancarrota). 2009 tax returns online Esta publicación aborda los siguientes temas: Definiciones de hecho fortuito, robo y pérdida de depósitos monetarios. 2009 tax returns online Cómo calcular el monto de su pérdida o ganancia. 2009 tax returns online Cómo se tratan tributariamente seguros y otros reembolsos que reciba. 2009 tax returns online Límites de la deducción. 2009 tax returns online Cómo y cuándo declarar un caso de hecho fortuito o robo. 2009 tax returns online Reglas especiales para pérdidas en zonas de desastre. 2009 tax returns online Formularios que tiene que presentar. 2009 tax returns online   Normalmente, si es víctima de un hecho fortuito o robo, tiene que presentar el Formulario 4684 (disponible sólo en inglés). 2009 tax returns online Asimismo, es posible que tenga que presentar uno o más de los siguientes formularios (todos en inglés): Anexo A (Formulario 1040). 2009 tax returns online Formulario 1040NR, Anexo A (para extranjeros no residentes). 2009 tax returns online Anexo D. 2009 tax returns online Formulario 4797. 2009 tax returns online Para información adicional sobre qué formulario utilizar, vea más adelante la sección sobre Cómo Declarar Pérdidas y Ganancias . 2009 tax returns online Expropiaciones forzosas. 2009 tax returns online   Para obtener información sobre expropiaciones forzosas de propiedades, vea el tema Involuntary Conversions (Conversiones involuntarias) en el capítulo 1 de la Publicación 544, Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés. 2009 tax returns online Registros para el cálculo de pérdidas por hecho fortuito y robo. 2009 tax returns online   La Publicación 584SP, Registro de Pérdidas por Hechos Fortuitos (Imprevistos), Desastres y Robos (Propiedad de uso Personal) está a su disposición para ayudarle a hacer una lista de artículos de sus bienes de uso personal que hayan sido robados o dañados y calcular su pérdida. 2009 tax returns online En dicha publicación se incluyen tablas para ayudarle a calcular el monto de las pérdidas de su vivienda, artículos de la misma y vehículos motorizados. 2009 tax returns online   La Publicación 584-B, Business Casualty, Disaster, and Theft Loss Workbook (Registro de pérdidas por hechos fortuitos, desastres y robos de propiedad de uso comercial), en inglés puede ayudarle a hacer una lista de artículos que hayan sido robados o dañados en su empresa o bienes de generación de ingresos, y calcular su pérdida. 2009 tax returns online Comentarios y sugerencias. 2009 tax returns online   Agradecemos sus comentarios y sugerencias sobre esta publicación para ediciones futuras. 2009 tax returns online   Puede escribirnos a la siguiente dirección: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2009 tax returns online NW, IR-6526 Washington, DC 20224   Contestamos gran parte de correspondencia por teléfono. 2009 tax returns online Por lo tanto, nos sería útil si en su correspondencia incluye el número telefónico con su código de área donde podemos ubicarlo durante el día. 2009 tax returns online   Puede enviarnos comentarios a través de www. 2009 tax returns online irs. 2009 tax returns online gov/formspubs, pulsando sobre “ Comment on Tax Forms and Publications ” (Comentarios sobre formularios y publicaciones tributarios) bajo el título “ Information about ” (Información sobre), en inglés. 2009 tax returns online   Aunque no podemos contestar cada uno de los comentarios, agradecemos su opinión y tendremos en cuenta sus comentarios cuando revisemos nuestros productos. 2009 tax returns online Cómo pedir formularios y publicaciones. 2009 tax returns online   Visite el sitio web del IRS www. 2009 tax returns online irs. 2009 tax returns online gov/espanol y pulse sobre el enlace “Formularios y Publicaciones” para descargar formularios y publicaciones. 2009 tax returns online Llame al 1-800-829-3676 o escriba a la dirección que aparece a continuación y recibirá respuesta a los 10 días de que el IRS reciba su solicitud: Internal Revenue Service 1201 N. 2009 tax returns online Mitsubishi Motorway Bloomington, IL 61705-6613 Preguntas sobre los impuestos. 2009 tax returns online   Si tiene alguna pregunta acerca de sus impuestos, consulte la información disponible en IRS. 2009 tax returns online gov/espanol o llame al número 1-800-829-1040. 2009 tax returns online No podemos contestar preguntas sobre impuestos enviadas a las direcciones anteriores. 2009 tax returns online Useful Items - You may want to see: Publicación 523 Selling Your Home (Venta de su vivienda), en inglés 525 Taxable and Nontaxable Income (Ingresos tributables y no tributables), en inglés 550 Investment Income and Expenses (Ingresos y gastos de inversiones), en inglés 551 Basis of Assets (Base de activos), en inglés 584SP Registro de Pérdidas por Hechos Fortuitos (Imprevistos), Desastres y Robos (Propiedad de Uso Personal) 584-B Business Casualty, Disaster, and Theft Loss Workbook (Registro de pérdidas por hechos fortuitos, desastres y robos comerciales), en inglés  Formulario (e Instrucciones) Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés Anexo A (Formulario 1040NR) Itemized Deductions (for nonresident aliens) (Deducciones detalladas (para extranjeros no residentes)), en inglés Anexo D (Formulario 1040) Capital Gains and Losses (Pérdidas y ganancias de capital), en inglés 4684 Casualties and Thefts (Hechos fortuitos y robos), en inglés 4797 Sales of Business Property (Ventas de bienes comerciales), en inglés  Para más información sobre cómo obtener publicaciones y formularios, vea la sección Cómo Obtener Ayuda con los Impuestos al final de esta publicación. 2009 tax returns online Prev  Up  Next   Home   More Online Publications
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Sample Consumer Complaint Letter

This sample complaint letter will help you provide all of the necessary information to file a complaint.


How to Use the Sample Complaint Letter

Use the sample consumer complaint letter below to draft a complaint letter or e-mail. You can also copy and paste your complaint into a company's "Contact Us" form.

Download the complaint letter in Word format.

Sample Complaint Letter and E-mail

[Your Address]
[Your City, State, ZIP]
(Your e-mail address, if sending via e-mail)

Date

[Name of Contact Person] (if available)
[Title] (if available)
[Company Name]
[Consumer Complaint Division] (if you have no specific contact)
[Street Address]
[City, State, ZIP Code]

Dear [Contact Person]:

Re: (account number, if applicable)

On [date], I [bought, leased, rented, or had repaired] a [name of the product, with serial or model number, or service performed] at [location, date, and other important details of the transaction].

Unfortunately, your product [or service] has not performed well [or the service was inadequate] because [state the problem]. I am disappointed because [explain the problem: for example, the product does not work properly; the service was not performed correctly; I was billed the wrong amount; something was not disclosed clearly or was misrepresented; etc.].

To resolve the problem, I would appreciate your [state the specific action you want: money refunded, charge card credit, repair, exchange, etc.]. Enclosed are copies (do not send originals) of my records [include receipts, guarantees, warranties, canceled checks, contracts, model and serial numbers, and any other documents].

I look forward to your reply and a resolution to my problem and will wait until [set a time limit] before seeking help from a consumer protection agency or the Better Business Bureau. Please contact me at the above address or by phone at [home and/or office numbers with area code].

Sincerely,

Your name

Enclosure(s)

Keys to an Effective Complaint Letter

  • Describe your purchase.
  • Include the name of the product and serial number.
  • Include the date and place of purchase.
  • State your problem.
  • Give the history of your purchase.
  • Ask for specific action.
  • Allow time for action.
  • State how you can be reached.
  • Enclose copies of your documents and receipts (but never send originals).
  • Keep copies of all your letters, faxes, e-mails, and related documents.

Tips for Filing a Complaint

When filing a complaint, remember these tips:

  • Remain calm. The person who can help probably didn't cause the problem.
  • Don't use an angry, threatening, or sarcastic tone.
  • State exactly what you want done about the problem.
  • Document each step, and keep copies.
  • Start with the seller first. You can resolve many problems by calling a company's toll-free number. Even on the phone, you should know the details of the complaint. You can use the sample letter below to jot down a few notes before you call. If necessary, ask to speak to a manager.
  • If that doesn't work, send a letter or e-mail to the manufacturer's national headquarters or consumer affairs office. Some experts suggest that a letter is the most effective method for contacting a company, so if e-mails and phone calls don't work, try mailing a letter.

Learn more about the steps to file a consumer complaint.

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The 2009 Tax Returns Online

2009 tax returns online 5. 2009 tax returns online   Wages, Salaries, and Other Earnings Table of Contents Reminder Introduction Useful Items - You may want to see: Employee CompensationBabysitting. 2009 tax returns online Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Reminder Foreign income. 2009 tax returns online   If you are a U. 2009 tax returns online S. 2009 tax returns online citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U. 2009 tax returns online S. 2009 tax returns online law. 2009 tax returns online This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. 2009 tax returns online This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). 2009 tax returns online If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. 2009 tax returns online For details, see Publication 54, Tax Guide for U. 2009 tax returns online S. 2009 tax returns online Citizens and Resident Aliens Abroad. 2009 tax returns online Introduction This chapter discusses compensation received for services as an employee, such as wages, salaries, and fringe benefits. 2009 tax returns online The following topics are included. 2009 tax returns online Bonuses and awards. 2009 tax returns online Special rules for certain employees. 2009 tax returns online Sickness and injury benefits. 2009 tax returns online The chapter explains what income is included in the employee's gross income and what is not included. 2009 tax returns online Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income Employee Compensation This section discusses various types of employee compensation including fringe benefits, retirement plan contributions, stock options, and restricted property. 2009 tax returns online Form W-2. 2009 tax returns online    If you are an employee, you should receive Form W-2 from your employer showing the pay you received for your services. 2009 tax returns online Include your pay on line 7 of Form 1040 or Form 1040A, or on line 1 of Form 1040EZ, even if you do not receive a Form W-2. 2009 tax returns online   If you performed services, other than as an independent contractor, and your employer did not withhold social security and Medicare taxes from your pay, you must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, with your Form 1040. 2009 tax returns online These wages must be included on line 7 of Form 1040. 2009 tax returns online See Form 8919 for more information. 2009 tax returns online Childcare providers. 2009 tax returns online    If you provide childcare, either in the child's home or in your home or other place of business, the pay you receive must be included in your income. 2009 tax returns online If you are not an employee, you are probably self-employed and must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. 2009 tax returns online You generally are not an employee unless you are subject to the will and control of the person who employs you as to what you are to do and how you are to do it. 2009 tax returns online Babysitting. 2009 tax returns online   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. 2009 tax returns online Miscellaneous Compensation This section discusses different types of employee compensation. 2009 tax returns online Advance commissions and other earnings. 2009 tax returns online   If you receive advance commissions or other amounts for services to be performed in the future and you are a cash-method taxpayer, you must include these amounts in your income in the year you receive them. 2009 tax returns online    If you repay unearned commissions or other amounts in the same year you receive them, reduce the amount included in your income by the repayment. 2009 tax returns online If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), or you may be able to take a credit for that year. 2009 tax returns online See Repayments in chapter 12. 2009 tax returns online Allowances and reimbursements. 2009 tax returns online    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463. 2009 tax returns online If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. 2009 tax returns online Back pay awards. 2009 tax returns online    Include in income amounts you are awarded in a settlement or judgment for back pay. 2009 tax returns online These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. 2009 tax returns online They should be reported to you by your employer on Form W-2. 2009 tax returns online Bonuses and awards. 2009 tax returns online   Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. 2009 tax returns online These include prizes such as vacation trips for meeting sales goals. 2009 tax returns online If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. 2009 tax returns online However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you. 2009 tax returns online Employee achievement award. 2009 tax returns online   If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. 2009 tax returns online However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. 2009 tax returns online Your employer can tell you whether your award is a qualified plan award. 2009 tax returns online Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay. 2009 tax returns online   However, the exclusion does not apply to the following awards: A length-of-service award if you received it for less than 5 years of service or if you received another length-of-service award during the year or the previous 4 years. 2009 tax returns online A safety achievement award if you are a manager, administrator, clerical employee, or other professional employee or if more than 10% of eligible employees previously received safety achievement awards during the year. 2009 tax returns online Example. 2009 tax returns online Ben Green received three employee achievement awards during the year: a nonqualified plan award of a watch valued at $250, and two qualified plan awards of a stereo valued at $1,000 and a set of golf clubs valued at $500. 2009 tax returns online Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. 2009 tax returns online However, because the $1,750 total value of the awards is more than $1,600, Ben must include $150 ($1,750 – $1,600) in his income. 2009 tax returns online Differential wage payments. 2009 tax returns online   This is any payment made to you by an employer for any period during which you are, for a period of more than 30 days, an active duty member of the uniformed services and represents all or a portion of the wages you would have received from the employer during that period. 2009 tax returns online These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. 2009 tax returns online The payments are reported as wages on Form W-2. 2009 tax returns online Government cost-of-living allowances. 2009 tax returns online   Most payments received by U. 2009 tax returns online S. 2009 tax returns online Government civilian employees for working abroad are taxable. 2009 tax returns online However, certain cost-of-living allowances are tax free. 2009 tax returns online Publication 516, U. 2009 tax returns online S. 2009 tax returns online Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. 2009 tax returns online Nonqualified deferred compensation plans. 2009 tax returns online   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. 2009 tax returns online This amount is shown on Form W-2, box 12, using code Y. 2009 tax returns online This amount is not included in your income. 2009 tax returns online   However, if at any time during the tax year, the plan fails to meet certain requirements, or is not operated under those requirements, all amounts deferred under the plan for the tax year and all preceding tax years are included in your income for the current year. 2009 tax returns online This amount is included in your wages shown on Form W-2, box 1. 2009 tax returns online It is also shown on Form W-2, box 12, using code Z. 2009 tax returns online Note received for services. 2009 tax returns online    If your employer gives you a secured note as payment for your services, you must include the fair market value (usually the discount value) of the note in your income for the year you receive it. 2009 tax returns online When you later receive payments on the note, a proportionate part of each payment is the recovery of the fair market value that you previously included in your income. 2009 tax returns online Do not include that part again in your income. 2009 tax returns online Include the rest of the payment in your income in the year of payment. 2009 tax returns online   If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. 2009 tax returns online Severance pay. 2009 tax returns online   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. 2009 tax returns online Accrued leave payment. 2009 tax returns online    If you are a federal employee and receive a lump-sum payment for accrued annual leave when you retire or resign, this amount will be included as wages on your Form W-2. 2009 tax returns online   If you resign from one agency and are reemployed by another agency, you may have to repay part of your lump-sum annual leave payment to the second agency. 2009 tax returns online You can reduce gross wages by the amount you repaid in the same tax year in which you received it. 2009 tax returns online Attach to your tax return a copy of the receipt or statement given to you by the agency you repaid to explain the difference between the wages on the return and the wages on your Forms W-2. 2009 tax returns online Outplacement services. 2009 tax returns online   If you choose to accept a reduced amount of severance pay so that you can receive outplacement services (such as training in résumé writing and interview techniques), you must include the unreduced amount of the severance pay in income. 2009 tax returns online    However, you can deduct the value of these outplacement services (up to the difference between the severance pay included in income and the amount actually received) as a miscellaneous deduction (subject to the 2%-of-adjusted-gross-income (AGI) limit) on Schedule A (Form 1040). 2009 tax returns online Sick pay. 2009 tax returns online   Pay you receive from your employer while you are sick or injured is part of your salary or wages. 2009 tax returns online In addition, you must include in your income sick pay benefits received from any of the following payers: A welfare fund. 2009 tax returns online A state sickness or disability fund. 2009 tax returns online An association of employers or employees. 2009 tax returns online An insurance company, if your employer paid for the plan. 2009 tax returns online However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. 2009 tax returns online For more information, see Publication 525. 2009 tax returns online Social security and Medicare taxes paid by employer. 2009 tax returns online   If you and your employer have an agreement that your employer pays your social security and Medicare taxes without deducting them from your gross wages, you must report the amount of tax paid for you as taxable wages on your tax return. 2009 tax returns online The payment also is treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. 2009 tax returns online However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. 2009 tax returns online Stock appreciation rights. 2009 tax returns online   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. 2009 tax returns online When you use the right, you are entitled to a cash payment equal to the fair market value of the corporation's stock on the date of use minus the fair market value on the date the right was granted. 2009 tax returns online You include the cash payment in your income in the year you use the right. 2009 tax returns online Fringe Benefits Fringe benefits received in connection with the performance of your services are included in your income as compensation unless you pay fair market value for them or they are specifically excluded by law. 2009 tax returns online Abstaining from the performance of services (for example, under a covenant not to compete) is treated as the performance of services for purposes of these rules. 2009 tax returns online Accounting period. 2009 tax returns online   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. 2009 tax returns online Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. 2009 tax returns online The general rule: benefits are reported for a full calendar year (January 1–December 31). 2009 tax returns online The special accounting period rule: benefits provided during the last 2 months of the calendar year (or any shorter period) are treated as paid during the following calendar year. 2009 tax returns online For example, each year your employer reports the value of benefits provided during the last 2 months of the prior year and the first 10 months of the current year. 2009 tax returns online  Your employer does not have to use the same accounting period for each fringe benefit, but must use the same period for all employees who receive a particular benefit. 2009 tax returns online   You must use the same accounting period that you use to report the benefit to claim an employee business deduction (for use of a car, for example). 2009 tax returns online Form W-2. 2009 tax returns online   Your employer must include all taxable fringe benefits in box 1 of Form W-2 as wages, tips, and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages. 2009 tax returns online Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). 2009 tax returns online However, if your employer provided you with a vehicle and included 100% of its annual lease value in your income, the employer must separately report this value to you in box 14 (or on a separate statement). 2009 tax returns online Accident or Health Plan In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income. 2009 tax returns online Benefits you receive from the plan may be taxable, as explained later under Sickness and Injury Benefits . 2009 tax returns online For information on the items covered in this section, other than Long-term care coverage, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. 2009 tax returns online Long-term care coverage. 2009 tax returns online    Contributions by your employer to provide coverage for long-term care services generally are not included in your income. 2009 tax returns online However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. 2009 tax returns online This amount will be reported as wages in box 1 of your Form W-2. 2009 tax returns online   Contributions you make to the plan are discussed in Publication 502, Medical and Dental Expenses. 2009 tax returns online Archer MSA contributions. 2009 tax returns online    Contributions by your employer to your Archer MSA generally are not included in your income. 2009 tax returns online Their total will be reported in box 12 of Form W-2 with code R. 2009 tax returns online You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. 2009 tax returns online File the form with your return. 2009 tax returns online Health flexible spending arrangement (health FSA). 2009 tax returns online   If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income. 2009 tax returns online Note. 2009 tax returns online Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. 2009 tax returns online The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. 2009 tax returns online For more information, see Notice 2012-40, 2012-26 I. 2009 tax returns online R. 2009 tax returns online B. 2009 tax returns online 1046, available at www. 2009 tax returns online irs. 2009 tax returns online gov/irb/2012-26 IRB/ar09. 2009 tax returns online html. 2009 tax returns online Health reimbursement arrangement (HRA). 2009 tax returns online   If your employer provides an HRA that qualifies as an accident or health plan, coverage and reimbursements of your medical care expenses generally are not included in your income. 2009 tax returns online Health savings accounts (HSA). 2009 tax returns online   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. 2009 tax returns online Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. 2009 tax returns online Contributions made by your employer are not included in your income. 2009 tax returns online Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. 2009 tax returns online Distributions not used for qualified medical expenses are included in your income. 2009 tax returns online See Publication 969 for the requirements of an HSA. 2009 tax returns online   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. 2009 tax returns online The contributions are treated as a distribution of money and are not included in the partner's gross income. 2009 tax returns online Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are includible in the partner's gross income. 2009 tax returns online In both situations, the partner can deduct the contribution made to the partner's HSA. 2009 tax returns online   Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are includible in the shareholder-employee's gross income. 2009 tax returns online The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. 2009 tax returns online Qualified HSA funding distribution. 2009 tax returns online   You can make a one-time distribution from your individual retirement account (IRA) to an HSA and you generally will not include any of the distribution in your income. 2009 tax returns online See Publication 590 for the requirements for these qualified HSA funding distributions. 2009 tax returns online Failure to maintain eligibility. 2009 tax returns online   If your HSA received qualified HSA distributions from a health FSA or HRA (discussed earlier) or a qualified HSA funding distribution, you must be an eligible individual for HSA purposes for the period beginning with the month in which the qualified distribution was made and ending on the last day of the 12th month following that month. 2009 tax returns online If you fail to be an eligible individual during this period, other than because of death or disability, you must include the distribution in your income for the tax year in which you become ineligible. 2009 tax returns online This income is also subject to an additional 10% tax. 2009 tax returns online Adoption Assistance You may be able to exclude from your income amounts paid or expenses incurred by your employer for qualified adoption expenses in connection with your adoption of an eligible child. 2009 tax returns online See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. 2009 tax returns online Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. 2009 tax returns online They also are included as social security and Medicare wages in boxes 3 and 5. 2009 tax returns online However, they are not included as wages in box 1. 2009 tax returns online To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. 2009 tax returns online File the form with your return. 2009 tax returns online De Minimis (Minimal) Benefits If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. 2009 tax returns online In most cases, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. 2009 tax returns online Holiday gifts. 2009 tax returns online   If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. 2009 tax returns online However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved. 2009 tax returns online Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. 2009 tax returns online For more information, see Publication 970, Tax Benefits for Education. 2009 tax returns online Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) is not included in your income. 2009 tax returns online However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. 2009 tax returns online For exceptions, see Entire cost excluded , and Entire cost taxed , later. 2009 tax returns online If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of your Form W-2. 2009 tax returns online Also, it is shown separately in box 12 with code C. 2009 tax returns online Group-term life insurance. 2009 tax returns online   This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. 2009 tax returns online Permanent benefits. 2009 tax returns online   If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. 2009 tax returns online Your employer should be able to tell you the amount to include in your income. 2009 tax returns online Accidental death benefits. 2009 tax returns online   Insurance that provides accidental or other death benefits but does not provide general death benefits (travel insurance, for example) is not group-term life insurance. 2009 tax returns online Former employer. 2009 tax returns online   If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. 2009 tax returns online Also, it is shown separately in box 12 with code C. 2009 tax returns online Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. 2009 tax returns online You must pay these taxes with your income tax return. 2009 tax returns online Include them on line 60, Form 1040, and follow the instructions for line 60. 2009 tax returns online For more information, see the Instructions for Form 1040. 2009 tax returns online Two or more employers. 2009 tax returns online   Your exclusion for employer-provided group-term life insurance coverage cannot exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. 2009 tax returns online If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 will not be correct. 2009 tax returns online You must figure how much to include in your income. 2009 tax returns online Reduce the amount you figure by any amount reported with code C in box 12 of your Forms W-2, add the result to the wages reported in box 1, and report the total on your return. 2009 tax returns online Figuring the taxable cost. 2009 tax returns online   Use the following worksheet to figure the amount to include in your income. 2009 tax returns online     Worksheet 5-1. 2009 tax returns online Figuring the Cost of Group-Term Life Insurance To Include in Income 1. 2009 tax returns online Enter the total amount of your insurance coverage from your employer(s) 1. 2009 tax returns online   2. 2009 tax returns online Limit on exclusion for employer-provided group-term life insurance coverage 2. 2009 tax returns online 50,000 3. 2009 tax returns online Subtract line 2 from line 1 3. 2009 tax returns online   4. 2009 tax returns online Divide line 3 by $1,000. 2009 tax returns online Figure to the nearest tenth 4. 2009 tax returns online   5. 2009 tax returns online Go to Table 5-1. 2009 tax returns online Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. 2009 tax returns online   6. 2009 tax returns online Multiply line 4 by line 5 6. 2009 tax returns online   7. 2009 tax returns online Enter the number of full months of coverage at this cost. 2009 tax returns online 7. 2009 tax returns online   8. 2009 tax returns online Multiply line 6 by line 7 8. 2009 tax returns online   9. 2009 tax returns online Enter the premiums you paid per month 9. 2009 tax returns online       10. 2009 tax returns online Enter the number of months you paid the premiums 10. 2009 tax returns online       11. 2009 tax returns online Multiply line 9 by line 10. 2009 tax returns online 11. 2009 tax returns online   12. 2009 tax returns online Subtract line 11 from line 8. 2009 tax returns online Include this amount in your income as wages 12. 2009 tax returns online      Table 5-1. 2009 tax returns online Cost of $1,000 of Group-Term Life Insurance for One Month Age Cost Under 25 $. 2009 tax returns online 05 25 through 29 . 2009 tax returns online 06 30 through 34 . 2009 tax returns online 08 35 through 39 . 2009 tax returns online 09 40 through 44 . 2009 tax returns online 10 45 through 49 . 2009 tax returns online 15 50 through 54 . 2009 tax returns online 23 55 through 59 . 2009 tax returns online 43 60 through 64 . 2009 tax returns online 66 65 through 69 1. 2009 tax returns online 27 70 and older 2. 2009 tax returns online 06 Example. 2009 tax returns online You are 51 years old and work for employers A and B. 2009 tax returns online Both employers provide group-term life insurance coverage for you for the entire year. 2009 tax returns online Your coverage is $35,000 with employer A and $45,000 with employer B. 2009 tax returns online You pay premiums of $4. 2009 tax returns online 15 a month under the employer B group plan. 2009 tax returns online You figure the amount to include in your income as shown in Worksheet 5-1. 2009 tax returns online Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated, later. 2009 tax returns online Worksheet 5-1. 2009 tax returns online Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated 1. 2009 tax returns online Enter the total amount of your insurance coverage from your employer(s) 1. 2009 tax returns online 80,000 2. 2009 tax returns online Limit on exclusion for employer-provided group-term life insurance coverage 2. 2009 tax returns online 50,000 3. 2009 tax returns online Subtract line 2 from line 1 3. 2009 tax returns online 30,000 4. 2009 tax returns online Divide line 3 by $1,000. 2009 tax returns online Figure to the nearest tenth 4. 2009 tax returns online 30. 2009 tax returns online 0 5. 2009 tax returns online Go to Table 5-1. 2009 tax returns online Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. 2009 tax returns online . 2009 tax returns online 23 6. 2009 tax returns online Multiply line 4 by line 5 6. 2009 tax returns online 6. 2009 tax returns online 90 7. 2009 tax returns online Enter the number of full months of coverage at this cost. 2009 tax returns online 7. 2009 tax returns online 12 8. 2009 tax returns online Multiply line 6 by line 7 8. 2009 tax returns online 82. 2009 tax returns online 80 9. 2009 tax returns online Enter the premiums you paid per month 9. 2009 tax returns online 4. 2009 tax returns online 15     10. 2009 tax returns online Enter the number of months you paid the premiums 10. 2009 tax returns online 12     11. 2009 tax returns online Multiply line 9 by line 10. 2009 tax returns online 11. 2009 tax returns online 49. 2009 tax returns online 80 12. 2009 tax returns online Subtract line 11 from line 8. 2009 tax returns online Include this amount in your income as wages 12. 2009 tax returns online 33. 2009 tax returns online 00 Entire cost excluded. 2009 tax returns online   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. 2009 tax returns online You are permanently and totally disabled and have ended your employment. 2009 tax returns online Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. 2009 tax returns online A charitable organization (defined in chapter 24) to which contributions are deductible is the only beneficiary of the policy for the entire period the insurance is in force during the tax year. 2009 tax returns online (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. 2009 tax returns online ) The plan existed on January 1, 1984, and You retired before January 2, 1984, and were covered by the plan when you retired, or You reached age 55 before January 2, 1984, and were employed by the employer or its predecessor in 1983. 2009 tax returns online Entire cost taxed. 2009 tax returns online   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply: The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. 2009 tax returns online You are a key employee and your employer's plan discriminates in favor of key employees. 2009 tax returns online Retirement Planning Services If your employer has a qualified retirement plan, qualified retirement planning services provided to you (and your spouse) by your employer are not included in your income. 2009 tax returns online Qualified services include retirement planning advice, information about your employer's retirement plan, and information about how the plan may fit into your overall individual retirement income plan. 2009 tax returns online You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. 2009 tax returns online Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. 2009 tax returns online A qualified transportation fringe benefit is: Transportation in a commuter highway vehicle (such as a van) between your home and work place, A transit pass, Qualified parking, or Qualified bicycle commuting reimbursement. 2009 tax returns online Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. 2009 tax returns online However, cash reimbursement for a transit pass is excludable only if a voucher or similar item that can be exchanged only for a transit pass is not readily available for direct distribution to you. 2009 tax returns online Exclusion limit. 2009 tax returns online   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. 2009 tax returns online   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. 2009 tax returns online   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. 2009 tax returns online   If the benefits have a value that is more than these limits, the excess must be included in your income. 2009 tax returns online You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. 2009 tax returns online Commuter highway vehicle. 2009 tax returns online   This is a highway vehicle that seats at least six adults (not including the driver). 2009 tax returns online At least 80% of the vehicle's mileage must reasonably be expected to be: For transporting employees between their homes and work place, and On trips during which employees occupy at least half of the vehicle's adult seating capacity (not including the driver). 2009 tax returns online Transit pass. 2009 tax returns online   This is any pass, token, farecard, voucher, or similar item entitling a person to ride mass transit (whether public or private) free or at a reduced rate or to ride in a commuter highway vehicle operated by a person in the business of transporting persons for compensation. 2009 tax returns online Qualified parking. 2009 tax returns online   This is parking provided to an employee at or near the employer's place of business. 2009 tax returns online It also includes parking provided on or near a location from which the employee commutes to work by mass transit, in a commuter highway vehicle, or by carpool. 2009 tax returns online It does not include parking at or near the employee's home. 2009 tax returns online Qualified bicycle commuting. 2009 tax returns online   This is reimbursement based on the number of qualified bicycle commuting months for the year. 2009 tax returns online A qualified bicycle commuting month is any month you use the bicycle regularly for a substantial portion of the travel between your home and place of employment and you do not receive any of the other qualified transportation fringe benefits. 2009 tax returns online The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. 2009 tax returns online Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. 2009 tax returns online (Your employer can tell you whether your retirement plan is qualified. 2009 tax returns online ) However, the cost of life insurance coverage included in the plan may have to be included. 2009 tax returns online See Group-Term Life Insurance , earlier, under Fringe Benefits. 2009 tax returns online If your employer pays into a nonqualified plan for you, you generally must include the contributions in your income as wages for the tax year in which the contributions are made. 2009 tax returns online However, if your interest in the plan is not transferable or is subject to a substantial risk of forfeiture (you have a good chance of losing it) at the time of the contribution, you do not have to include the value of your interest in your income until it is transferable or is no longer subject to a substantial risk of forfeiture. 2009 tax returns online For information on distributions from retirement plans, see Publication 575, Pension and Annuity Income (or Publication 721, Tax Guide to U. 2009 tax returns online S. 2009 tax returns online Civil Service Retirement Benefits, if you are a federal employee or retiree). 2009 tax returns online Elective deferrals. 2009 tax returns online   If you are covered by certain kinds of retirement plans, you can choose to have part of your compensation contributed by your employer to a retirement fund, rather than have it paid to you. 2009 tax returns online The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. 2009 tax returns online An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. 2009 tax returns online However, it is included in wages subject to social security and Medicare taxes. 2009 tax returns online   Elective deferrals include elective contributions to the following retirement plans. 2009 tax returns online Cash or deferred arrangements (section 401(k) plans). 2009 tax returns online The Thrift Savings Plan for federal employees. 2009 tax returns online Salary reduction simplified employee pension plans (SARSEP). 2009 tax returns online Savings incentive match plans for employees (SIMPLE plans). 2009 tax returns online Tax-sheltered annuity plans (403(b) plans). 2009 tax returns online Section 501(c)(18)(D) plans. 2009 tax returns online Section 457 plans. 2009 tax returns online Qualified automatic contribution arrangements. 2009 tax returns online   Under a qualified automatic contribution arrangement, your employer can treat you as having elected to have a part of your compensation contributed to a section 401(k) plan. 2009 tax returns online You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. 2009 tax returns online The notice must explain: Your rights to elect not to have elective contributions made, or to have contributions made at a different percentage, and How contributions made will be invested in the absence of any investment decision by you. 2009 tax returns online   You must be given a reasonable period of time after receipt of the notice and before the first elective contribution is made to make an election with respect to the contributions. 2009 tax returns online Overall limit on deferrals. 2009 tax returns online   For 2013, in most cases, you should not have deferred more than a total of $17,500 of contributions to the plans listed in (1) through (3) and (5) above. 2009 tax returns online The limit for SIMPLE plans is $12,000. 2009 tax returns online The limit for section 501(c)(18)(D) plans is the lesser of $7,000 or 25% of your compensation. 2009 tax returns online The limit for section 457 plans is the lesser of your includible compensation or $17,500. 2009 tax returns online Amounts deferred under specific plan limits are part of the overall limit on deferrals. 2009 tax returns online Designated Roth contributions. 2009 tax returns online   Employers with section 401(k) and section 403(b) plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals to the plan designated as after-tax Roth contributions. 2009 tax returns online Designated Roth contributions are treated as elective deferrals, except that they are included in income. 2009 tax returns online Excess deferrals. 2009 tax returns online   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. 2009 tax returns online However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. 2009 tax returns online   If you set aside more than the limit, the excess generally must be included in your income for that year, unless you have an excess deferral of a designated Roth contribution. 2009 tax returns online See Publication 525 for a discussion of the tax treatment of excess deferrals. 2009 tax returns online Catch-up contributions. 2009 tax returns online   You may be allowed catch-up contributions (additional elective deferral) if you are age 50 or older by the end of your tax year. 2009 tax returns online Stock Options If you receive a nonstatutory option to buy or sell stock or other property as payment for your services, you usually will have income when you receive the option, when you exercise the option (use it to buy or sell the stock or other property), or when you sell or otherwise dispose of the option. 2009 tax returns online However, if your option is a statutory stock option, you will not have any income until you sell or exchange your stock. 2009 tax returns online Your employer can tell you which kind of option you hold. 2009 tax returns online For more information, see Publication 525. 2009 tax returns online Restricted Property In most cases, if you receive property for your services, you must include its fair market value in your income in the year you receive the property. 2009 tax returns online However, if you receive stock or other property that has certain restrictions that affect its value, you do not include the value of the property in your income until it has substantially vested. 2009 tax returns online (You can choose to include the value of the property in your income in the year it is transferred to you. 2009 tax returns online ) For more information, see Restricted Property in Publication 525. 2009 tax returns online Dividends received on restricted stock. 2009 tax returns online   Dividends you receive on restricted stock are treated as compensation and not as dividend income. 2009 tax returns online Your employer should include these payments on your Form W-2. 2009 tax returns online Stock you chose to include in income. 2009 tax returns online   Dividends you receive on restricted stock you chose to include in your income in the year transferred are treated the same as any other dividends. 2009 tax returns online Report them on your return as dividends. 2009 tax returns online For a discussion of dividends, see chapter 8. 2009 tax returns online    For information on how to treat dividends reported on both your Form W-2 and Form 1099-DIV, see Dividends received on restricted stock in Publication 525. 2009 tax returns online Special Rules for Certain Employees This section deals with special rules for people in certain types of employment: members of the clergy, members of religious orders, people working for foreign employers, military personnel, and volunteers. 2009 tax returns online Clergy Generally, if you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, masses, etc. 2009 tax returns online , in addition to your salary. 2009 tax returns online If the offering is made to the religious institution, it is not taxable to you. 2009 tax returns online If you are a member of a religious organization and you give your outside earnings to the religious organization, you still must include the earnings in your income. 2009 tax returns online However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. 2009 tax returns online See chapter 24. 2009 tax returns online Pension. 2009 tax returns online    A pension or retirement pay for a member of the clergy usually is treated as any other pension or annuity. 2009 tax returns online It must be reported on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 2009 tax returns online Housing. 2009 tax returns online    Special rules for housing apply to members of the clergy. 2009 tax returns online Under these rules, you do not include in your income the rental value of a home (including utilities) or a designated housing allowance provided to you as part of your pay. 2009 tax returns online However, the exclusion cannot be more than the reasonable pay for your service. 2009 tax returns online If you pay for the utilities, you can exclude any allowance designated for utility cost, up to your actual cost. 2009 tax returns online The home or allowance must be provided as compensation for your services as an ordained, licensed, or commissioned minister. 2009 tax returns online However, you must include the rental value of the home or the housing allowance as earnings from self-employment on Schedule SE (Form 1040) if you are subject to the self-employment tax. 2009 tax returns online For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 2009 tax returns online Members of Religious Orders If you are a member of a religious order who has taken a vow of poverty, how you treat earnings that you renounce and turn over to the order depends on whether your services are performed for the order. 2009 tax returns online Services performed for the order. 2009 tax returns online   If you are performing the services as an agent of the order in the exercise of duties required by the order, do not include in your income the amounts turned over to the order. 2009 tax returns online   If your order directs you to perform services for another agency of the supervising church or an associated institution, you are considered to be performing the services as an agent of the order. 2009 tax returns online Any wages you earn as an agent of an order that you turn over to the order are not included in your income. 2009 tax returns online Example. 2009 tax returns online You are a member of a church order and have taken a vow of poverty. 2009 tax returns online You renounce any claims to your earnings and turn over to the order any salaries or wages you earn. 2009 tax returns online You are a registered nurse, so your order assigns you to work in a hospital that is an associated institution of the church. 2009 tax returns online However, you remain under the general direction and control of the order. 2009 tax returns online You are considered to be an agent of the order and any wages you earn at the hospital that you turn over to your order are not included in your income. 2009 tax returns online Services performed outside the order. 2009 tax returns online   If you are directed to work outside the order, your services are not an exercise of duties required by the order unless they meet both of the following requirements: They are the kind of services that are ordinarily the duties of members of the order. 2009 tax returns online They are part of the duties that you must exercise for, or on behalf of, the religious order as its agent. 2009 tax returns online If you are an employee of a third party, the services you perform for the third party will not be considered directed or required of you by the order. 2009 tax returns online Amounts you receive for these services are included in your income, even if you have taken a vow of poverty. 2009 tax returns online Example. 2009 tax returns online Mark Brown is a member of a religious order and has taken a vow of poverty. 2009 tax returns online He renounces all claims to his earnings and turns over his earnings to the order. 2009 tax returns online Mark is a schoolteacher. 2009 tax returns online He was instructed by the superiors of the order to get a job with a private tax-exempt school. 2009 tax returns online Mark became an employee of the school, and, at his request, the school made the salary payments directly to the order. 2009 tax returns online Because Mark is an employee of the school, he is performing services for the school rather than as an agent of the order. 2009 tax returns online The wages Mark earns working for the school are included in his income. 2009 tax returns online Foreign Employer Special rules apply if you work for a foreign employer. 2009 tax returns online U. 2009 tax returns online S. 2009 tax returns online citizen. 2009 tax returns online   If you are a U. 2009 tax returns online S. 2009 tax returns online citizen who works in the United States for a foreign government, an international organization, a foreign embassy, or any foreign employer, you must include your salary in your income. 2009 tax returns online Social security and Medicare taxes. 2009 tax returns online   You are exempt from social security and Medicare employee taxes if you are employed in the United States by an international organization or a foreign government. 2009 tax returns online However, you must pay self-employment tax on your earnings from services performed in the United States, even though you are not self-employed. 2009 tax returns online This rule also applies if you are an employee of a qualifying wholly owned instrumentality of a foreign government. 2009 tax returns online Employees of international organizations or foreign governments. 2009 tax returns online   Your compensation for official services to an international organization is exempt from federal income tax if you are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). 2009 tax returns online   Your compensation for official services to a foreign government is exempt from federal income tax if all of the following are true. 2009 tax returns online You are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). 2009 tax returns online Your work is like the work done by employees of the United States in foreign countries. 2009 tax returns online The foreign government gives an equal exemption to employees of the United States in its country. 2009 tax returns online Waiver of alien status. 2009 tax returns online   If you are an alien who works for a foreign government or international organization and you file a waiver under section 247(b) of the Immigration and Nationality Act to keep your immigrant status, different rules may apply. 2009 tax returns online See Foreign Employer in Publication 525. 2009 tax returns online Employment abroad. 2009 tax returns online   For information on the tax treatment of income earned abroad, see Publication 54. 2009 tax returns online Military Payments you receive as a member of a military service generally are taxed as wages except for retirement pay, which is taxed as a pension. 2009 tax returns online Allowances generally are not taxed. 2009 tax returns online For more information on the tax treatment of military allowances and benefits, see Publication 3, Armed Forces' Tax Guide. 2009 tax returns online Differential wage payments. 2009 tax returns online   Any payments made to you by an employer during the time you are performing service in the uniformed services are treated as compensation. 2009 tax returns online These wages are subject to income tax withholding and are reported on a Form W-2. 2009 tax returns online See the discussion under Miscellaneous Compensation , earlier. 2009 tax returns online Military retirement pay. 2009 tax returns online   If your retirement pay is based on age or length of service, it is taxable and must be included in your income as a pension on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 2009 tax returns online Do not include in your income the amount of any reduction in retirement or retainer pay to provide a survivor annuity for your spouse or children under the Retired Serviceman's Family Protection Plan or the Survivor Benefit Plan. 2009 tax returns online   For more detailed discussion of survivor annuities, see chapter 10. 2009 tax returns online Disability. 2009 tax returns online   If you are retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later. 2009 tax returns online Veterans' benefits. 2009 tax returns online   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA). 2009 tax returns online The following amounts paid to veterans or their families are not taxable. 2009 tax returns online Education, training, and subsistence allowances. 2009 tax returns online Disability compensation and pension payments for disabilities paid either to veterans or their families. 2009 tax returns online Grants for homes designed for wheelchair living. 2009 tax returns online Grants for motor vehicles for veterans who lost their sight or the use of their limbs. 2009 tax returns online Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death. 2009 tax returns online Interest on insurance dividends you leave on deposit with the VA. 2009 tax returns online Benefits under a dependent-care assistance program. 2009 tax returns online The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001. 2009 tax returns online Payments made under the compensated work therapy program. 2009 tax returns online Any bonus payment by a state or political subdivision because of service in a combat zone. 2009 tax returns online Volunteers The tax treatment of amounts you receive as a volunteer worker for the Peace Corps or similar agency is covered in the following discussions. 2009 tax returns online Peace Corps. 2009 tax returns online   Living allowances you receive as a Peace Corps volunteer or volunteer leader for housing, utilities, household supplies, food, and clothing are exempt from tax. 2009 tax returns online Taxable allowances. 2009 tax returns online   The following allowances must be included in your income and reported as wages: Allowances paid to your spouse and minor children while you are a volunteer leader training in the United States. 2009 tax returns online Living allowances designated by the Director of the Peace Corps as basic compensation. 2009 tax returns online These are allowances for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. 2009 tax returns online Leave allowances. 2009 tax returns online Readjustment allowances or termination payments. 2009 tax returns online These are considered received by you when credited to your account. 2009 tax returns online Example. 2009 tax returns online Gary Carpenter, a Peace Corps volunteer, gets $175 a month as a readjustment allowance during his period of service, to be paid to him in a lump sum at the end of his tour of duty. 2009 tax returns online Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. 2009 tax returns online Volunteers in Service to America (VISTA). 2009 tax returns online   If you are a VISTA volunteer, you must include meal and lodging allowances paid to you in your income as wages. 2009 tax returns online National Senior Services Corps programs. 2009 tax returns online   Do not include in your income amounts you receive for supportive services or reimbursements for out-of-pocket expenses from the following programs. 2009 tax returns online Retired Senior Volunteer Program (RSVP). 2009 tax returns online Foster Grandparent Program. 2009 tax returns online Senior Companion Program. 2009 tax returns online Service Corps of Retired Executives (SCORE). 2009 tax returns online   If you receive amounts for supportive services or reimbursements for out-of-pocket expenses from SCORE, do not include these amounts in income. 2009 tax returns online Volunteer tax counseling. 2009 tax returns online   Do not include in your income any reimbursements you receive for transportation, meals, and other expenses you have in training for, or actually providing, volunteer federal income tax counseling for the elderly (TCE). 2009 tax returns online   You can deduct as a charitable contribution your unreimbursed out-of-pocket expenses in taking part in the volunteer income tax assistance (VITA) program. 2009 tax returns online See chapter 24. 2009 tax returns online Sickness and Injury Benefits This section discusses sickness and injury benefits including disability pensions, long-term care insurance contracts, workers' compensation, and other benefits. 2009 tax returns online In most cases, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. 2009 tax returns online If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. 2009 tax returns online However, certain payments may not be taxable to you. 2009 tax returns online Your employer should be able to give you specific details about your pension plan and tell you the amount you paid for your disability pension. 2009 tax returns online In addition to disability pensions and annuities, you may be receiving other payments for sickness and injury. 2009 tax returns online Do not report as income any amounts paid to reimburse you for medical expenses you incurred after the plan was established. 2009 tax returns online Cost paid by you. 2009 tax returns online   If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. 2009 tax returns online If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. 2009 tax returns online See Reimbursement in a later year in chapter 21. 2009 tax returns online Cafeteria plans. 2009 tax returns online   In most cases, if you are covered by an accident or health insurance plan through a cafeteria plan, and the amount of the insurance premiums was not included in your income, you are not considered to have paid the premiums and you must include any benefits you receive in your income. 2009 tax returns online If the amount of the premiums was included in your income, you are considered to have paid the premiums, and any benefits you receive are not taxable. 2009 tax returns online Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. 2009 tax returns online You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A, until you reach minimum retirement age. 2009 tax returns online Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 2009 tax returns online You may be entitled to a tax credit if you were permanently and totally disabled when you retired. 2009 tax returns online For information on this credit and the definition of permanent and total disability, see chapter 33. 2009 tax returns online Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 2009 tax returns online Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 2009 tax returns online The rules for reporting pensions are explained in How To Report in chapter 10. 2009 tax returns online For information on disability payments from a governmental program provided as a substitute for unemployment compensation, see chapter 12. 2009 tax returns online Retirement and profit-sharing plans. 2009 tax returns online   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. 2009 tax returns online The payments must be reported as a pension or annuity. 2009 tax returns online For more information on pensions, see chapter 10. 2009 tax returns online Accrued leave payment. 2009 tax returns online   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 2009 tax returns online The payment is not a disability payment. 2009 tax returns online Include it in your income in the tax year you receive it. 2009 tax returns online Military and Government Disability Pensions Certain military and government disability pensions are not taxable. 2009 tax returns online Service-connected disability. 2009 tax returns online   You may be able to exclude from income amounts you receive as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service in one of the following government services. 2009 tax returns online The armed forces of any country. 2009 tax returns online The National Oceanic and Atmospheric Administration. 2009 tax returns online The Public Health Service. 2009 tax returns online The Foreign Service. 2009 tax returns online Conditions for exclusion. 2009 tax returns online   Do not include the disability payments in your income if any of the following conditions apply. 2009 tax returns online You were entitled to receive a disability payment before September 25, 1975. 2009 tax returns online You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975. 2009 tax returns online You receive the disability payments for a combat-related injury. 2009 tax returns online This is a personal injury or sickness that Results directly from armed conflict, Takes place while you are engaged in extra-hazardous service, Takes place under conditions simulating war, including training exercises such as maneuvers, or Is caused by an instrumentality of war. 2009 tax returns online You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. 2009 tax returns online Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA. 2009 tax returns online Pension based on years of service. 2009 tax returns online   If you receive a disability pension based on years of service, in most cases you must include it in your income. 2009 tax returns online However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), do not include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. 2009 tax returns online You must include the rest of your pension in your income. 2009 tax returns online Retroactive VA determination. 2009 tax returns online   If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive. 2009 tax returns online You can claim a refund of any tax paid on the excludable amount (subject to the statute of limitations) by filing an amended return on Form 1040X for each previous year during the retroactive period. 2009 tax returns online You must include with each Form 1040X a copy of the official VA Determination letter granting the retroactive benefit. 2009 tax returns online The letter must show the amount withheld and the effective date of the benefit. 2009 tax returns online   If you receive a lump-sum disability severance payment and are later awarded VA disability benefits, exclude 100% of the severance benefit from your income. 2009 tax returns online However, you must include in your income any lump-sum readjustment or other nondisability severance payment you received on release from active duty, even if you are later given a retroactive disability rating by the VA. 2009 tax returns online Special statute of limitations. 2009 tax returns online   In most cases, under the statute of limitations a claim for credit or refund must be filed within 3 years from the time a return was filed. 2009 tax returns online However, if you receive a retroactive service-connected disability rating determination, the statute of limitations is extended by a 1-year period beginning on the date of the determination. 2009 tax returns online This 1-year extended period applies to claims for credit or refund filed after June 17, 2008, and does not apply to any tax year that began more than 5 years before the date of the determination. 2009 tax returns online Example. 2009 tax returns online You retired in 2007 and receive a pension based on your years of service. 2009 tax returns online On August 1, 2013, you receive a determination of service-connected disability retroactive to 2007. 2009 tax returns online Generally, you could claim a refund for the taxes paid on your pension for 2010, 2011, and 2012. 2009 tax returns online However, under the special limitation period, you can also file a claim for 2009 as long as you file the claim by August 1, 2014. 2009 tax returns online You cannot file a claim for 2007 and 2008 because those tax years began more than 5 years before the determination. 2009 tax returns online Terrorist attack or military action. 2009 tax returns online   Do not include in your income disability payments you receive for injuries resulting directly from a terrorist or military action. 2009 tax returns online Long-Term Care Insurance Contracts Long-term care insurance contracts in most cases are treated as accident and health insurance contracts. 2009 tax returns online Amounts you receive from them (other than policyholder dividends or premium refunds) in most cases are excludable from income as amounts received for personal injury or sickness. 2009 tax returns online To claim an exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract, you must file Form 8853 with your return. 2009 tax returns online A long-term care insurance contract is an insurance contract that only provides coverage for qualified long-term care services. 2009 tax returns online The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits, and In most cases, not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. 2009 tax returns online Qualified long-term care services. 2009 tax returns online   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance and personal care services, and Required by a chronically ill individual and provided pursuant to a plan of care as prescribed by a licensed health care practitioner. 2009 tax returns online Chronically ill individual. 2009 tax returns online   A chronically ill individual is one who has been certified by a licensed health care practitioner within the previous 12 months as one of the following: An individual who, for at least 90 days, is unable to perform at least two activities of daily living without substantial assistance due to loss of functional capacity. 2009 tax returns online Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. 2009 tax returns online An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 2009 tax returns online Limit on exclusion. 2009 tax returns online   You generally can exclude from gross income up to $320 a day for 2013. 2009 tax returns online See Limit on exclusion, under Long-Term Care Insurance Contracts, under Sickness and Injury Benefits in Publication 525 for more information. 2009 tax returns online Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. 2009 tax returns online The exemption also applies to your survivors. 2009 tax returns online The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. 2009 tax returns online If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2009 tax returns online For more information, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. 2009 tax returns online Return to work. 2009 tax returns online    If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. 2009 tax returns online Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. 2009 tax returns online Railroad sick pay. 2009 tax returns online    Payments you receive as sick pay under the Railroad Unemployment Insurance Act are taxable and you must include them in your income. 2009 tax returns online However, do not include them in your income if they are for an on-the-job injury. 2009 tax returns online   If you received income because of a disability, see Disability Pensions , earlier. 2009 tax returns online Federal Employees' Compensation Act (FECA). 2009 tax returns online   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. 2009 tax returns online However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. 2009 tax returns online Report this income on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040-EZ. 2009 tax returns online Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. 2009 tax returns online    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2009 tax returns online For a discussion of the taxability of these benefits, see Social security and equivalent railroad retirement benefits under Other Income, in Publication 525. 2009 tax returns online    You can deduct the amount you spend to buy back sick leave for an earlier year to be eligible for nontaxable FECA benefits for that period. 2009 tax returns online It is a miscellaneous deduction subject to the 2%-of-AGI limit on Schedule A (Form 1040). 2009 tax returns online If you buy back sick leave in the same year you used it, the amount reduces your taxable sick leave pay. 2009 tax returns online Do not deduct it separately. 2009 tax returns online Other compensation. 2009 tax returns online   Many other amounts you receive as compensation for sickness or injury are not taxable. 2009 tax returns online These include the following amounts. 2009 tax returns online Compensatory damages you receive for physical injury or physical sickness, whether paid in a lump sum or in periodic payments. 2009 tax returns online Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. 2009 tax returns online Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. 2009 tax returns online Compensation you receive for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. 2009 tax returns online This compensation must be based only on the injury and not on the period of your absence from work. 2009 tax returns online These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. 2009 tax returns online Reimbursement for medical care. 2009 tax returns online    A reimbursement for medical care is generally not taxable. 2009 tax returns online However, it may reduce your medical expense deduction. 2009 tax returns online For more information, see chapter 21. 2009 tax returns online Prev  Up  Next   Home   More Online Publications