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2010 Tax Forms 1040a

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2010 Tax Forms 1040a

2010 tax forms 1040a 10. 2010 tax forms 1040a   Retirement Plans, Pensions, and Annuities Table of Contents What's New Reminder IntroductionThe General Rule. 2010 tax forms 1040a Individual retirement arrangements (IRAs). 2010 tax forms 1040a Civil service retirement benefits. 2010 tax forms 1040a Useful Items - You may want to see: General InformationIn-plan rollovers to designated Roth accounts. 2010 tax forms 1040a How To Report Cost (Investment in the Contract) Taxation of Periodic PaymentsExclusion limited to cost. 2010 tax forms 1040a Exclusion not limited to cost. 2010 tax forms 1040a Simplified Method Taxation of Nonperiodic PaymentsLump-Sum Distributions RolloversIn-plan rollovers to designated Roth accounts. 2010 tax forms 1040a Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and Beneficiaries What's New For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). 2010 tax forms 1040a However, these distributions are taken into account when determining the modified adjusted gross income threshold. 2010 tax forms 1040a Distributions from a nonqualified retirement plan are included in net investment income. 2010 tax forms 1040a See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. 2010 tax forms 1040a Reminder Starting in 2013, the American Taxpayer Relief Act of 2012 expanded the rules for in-plan Roth rollovers to include more taxpayers. 2010 tax forms 1040a For more information, see Designated Roth accounts discussed later. 2010 tax forms 1040a Introduction This chapter discusses the tax treatment of distributions you receive from: An employee pension or annuity from a qualified plan, A disability retirement, and A purchased commercial annuity. 2010 tax forms 1040a What is not covered in this chapter. 2010 tax forms 1040a   The following topics are not discussed in this chapter. 2010 tax forms 1040a The General Rule. 2010 tax forms 1040a   This is the method generally used to determine the tax treatment of pension and annuity income from nonqualified plans (including commercial annuities). 2010 tax forms 1040a For a qualified plan, you generally cannot use the General Rule unless your annuity starting date is before November 19, 1996. 2010 tax forms 1040a For more information about the General Rule, see Publication 939, General Rule for Pensions and Annuities. 2010 tax forms 1040a Individual retirement arrangements (IRAs). 2010 tax forms 1040a   Information on the tax treatment of amounts you receive from an IRA is in chapter 17. 2010 tax forms 1040a Civil service retirement benefits. 2010 tax forms 1040a    If you are retired from the federal government (regular, phased, or disability retirement), see Publication 721, Tax Guide to U. 2010 tax forms 1040a S. 2010 tax forms 1040a Civil Service Retirement Benefits. 2010 tax forms 1040a Publication 721 also covers the information that you need if you are the survivor or beneficiary of a federal employee or retiree who died. 2010 tax forms 1040a Useful Items - You may want to see: Publication 575 Pension and Annuity Income 721 Tax Guide to U. 2010 tax forms 1040a S. 2010 tax forms 1040a Civil Service Retirement Benefits 939 General Rule for Pensions and Annuities Form (and Instructions) W-4P Withholding Certificate for Pension or Annuity Payments 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2010 tax forms 1040a 4972 Tax on Lump-Sum Distributions 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts General Information Designated Roth accounts. 2010 tax forms 1040a   A designated Roth account is a separate account created under a qualified Roth contribution program to which participants may elect to have part or all of their elective deferrals to a 401(k), 403(b), or 457(b) plan designated as Roth contributions. 2010 tax forms 1040a Elective deferrals that are designated as Roth contributions are included in your income. 2010 tax forms 1040a However, qualified distributions are not included in your income. 2010 tax forms 1040a See Publication 575 for more information. 2010 tax forms 1040a In-plan rollovers to designated Roth accounts. 2010 tax forms 1040a   If you are a participant in a 401(k), 403(b), or 457(b) plan, your plan may permit you to roll over amounts in those plans to a designated Roth account within the same plan. 2010 tax forms 1040a The rollover of any untaxed amounts must be included in income. 2010 tax forms 1040a See Publication 575 for more information. 2010 tax forms 1040a More than one program. 2010 tax forms 1040a   If you receive benefits from more than one program under a single trust or plan of your employer, such as a pension plan and a profit-sharing plan, you may have to figure the taxable part of each pension or annuity contract separately. 2010 tax forms 1040a Your former employer or the plan administrator should be able to tell you if you have more than one pension or annuity contract. 2010 tax forms 1040a Section 457 deferred compensation plans. 2010 tax forms 1040a    If you work for a state or local government or for a tax-exempt organization, you may be able to participate in a section 457 deferred compensation plan. 2010 tax forms 1040a If your plan is an eligible plan, you are not taxed currently on pay that is deferred under the plan or on any earnings from the plan's investment of the deferred pay. 2010 tax forms 1040a You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. 2010 tax forms 1040a You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. 2010 tax forms 1040a   Your 457(b) plan may have a designated Roth account option. 2010 tax forms 1040a If so, you may be able to roll over amounts to the designated Roth account or make contributions. 2010 tax forms 1040a Elective deferrals to a designated Roth account are included in your income. 2010 tax forms 1040a Qualified distributions from a designated Roth account are not subject to tax. 2010 tax forms 1040a   This chapter covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. 2010 tax forms 1040a For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525, Taxable and Nontaxable Income. 2010 tax forms 1040a   For general information on these deferred compensation plans, see Section 457 Deferred Compensation Plans in Publication 575. 2010 tax forms 1040a Disability pensions. 2010 tax forms 1040a   If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. 2010 tax forms 1040a You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A until you reach minimum retirement age. 2010 tax forms 1040a Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 2010 tax forms 1040a    You may be entitled to a tax credit if you were permanently and totally disabled when you retired. 2010 tax forms 1040a For information on the credit for the elderly or the disabled, see chapter 33. 2010 tax forms 1040a   Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 2010 tax forms 1040a Report the payments on Form 1040, lines 16a and 16b, or on Form 1040A, lines 12a and 12b. 2010 tax forms 1040a    Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income. 2010 tax forms 1040a For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. 2010 tax forms 1040a   For more information on how to report disability pensions, including military and certain government disability pensions, see chapter 5. 2010 tax forms 1040a Retired public safety officers. 2010 tax forms 1040a   An eligible retired public safety officer can elect to exclude from income distributions of up to $3,000 made directly from a government retirement plan to the provider of accident, health, or long-term disability insurance. 2010 tax forms 1040a See Insurance Premiums for Retired Public Safety Officers in Publication 575 for more information. 2010 tax forms 1040a Railroad retirement benefits. 2010 tax forms 1040a   Part of any railroad retirement benefits you receive is treated for tax purposes as social security benefits, and part is treated as an employee pension. 2010 tax forms 1040a For information about railroad retirement benefits treated as social security benefits, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. 2010 tax forms 1040a For information about railroad retirement benefits treated as an employee pension, see Railroad Retirement Benefits in Publication 575. 2010 tax forms 1040a Withholding and estimated tax. 2010 tax forms 1040a   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable parts of amounts paid to you. 2010 tax forms 1040a You can tell the payer how much to withhold, or not to withhold, by filing Form W-4P. 2010 tax forms 1040a If you choose not to have tax withheld, or you do not have enough tax withheld, you may have to pay estimated tax. 2010 tax forms 1040a   If you receive an eligible rollover distribution, you cannot choose not to have tax withheld. 2010 tax forms 1040a Generally, 20% will be withheld, but no tax will be withheld on a direct rollover of an eligible rollover distribution. 2010 tax forms 1040a See Direct rollover option under Rollovers, later. 2010 tax forms 1040a   For more information, see Pensions and Annuities under Tax Withholding for 2014 in chapter 4. 2010 tax forms 1040a Qualified plans for self-employed individuals. 2010 tax forms 1040a   Qualified plans set up by self-employed individuals are sometimes called Keogh or H. 2010 tax forms 1040a R. 2010 tax forms 1040a 10 plans. 2010 tax forms 1040a Qualified plans can be set up by sole proprietors, partnerships (but not a partner), and corporations. 2010 tax forms 1040a They can cover self-employed persons, such as the sole proprietor or partners, as well as regular (common-law) employees. 2010 tax forms 1040a    Distributions from a qualified plan are usually fully taxable because most recipients have no cost basis. 2010 tax forms 1040a If you have an investment (cost) in the plan, however, your pension or annuity payments from a qualified plan are taxed under the Simplified Method. 2010 tax forms 1040a For more information about qualified plans, see Publication 560, Retirement Plans for Small Business. 2010 tax forms 1040a Purchased annuities. 2010 tax forms 1040a   If you receive pension or annuity payments from a privately purchased annuity contract from a commercial organization, such as an insurance company, you generally must use the General Rule to figure the tax-free part of each annuity payment. 2010 tax forms 1040a For more information about the General Rule, get Publication 939. 2010 tax forms 1040a Also, see Variable Annuities in Publication 575 for the special provisions that apply to these annuity contracts. 2010 tax forms 1040a Loans. 2010 tax forms 1040a   If you borrow money from your retirement plan, you must treat the loan as a nonperiodic distribution from the plan unless certain exceptions apply. 2010 tax forms 1040a This treatment also applies to any loan under a contract purchased under your retirement plan, and to the value of any part of your interest in the plan or contract that you pledge or assign. 2010 tax forms 1040a This means that you must include in income all or part of the amount borrowed. 2010 tax forms 1040a Even if you do not have to treat the loan as a nonperiodic distribution, you may not be able to deduct the interest on the loan in some situations. 2010 tax forms 1040a For details, see Loans Treated as Distributions in Publication 575. 2010 tax forms 1040a For information on the deductibility of interest, see chapter 23. 2010 tax forms 1040a Tax-free exchange. 2010 tax forms 1040a   No gain or loss is recognized on an exchange of an annuity contract for another annuity contract if the insured or annuitant remains the same. 2010 tax forms 1040a However, if an annuity contract is exchanged for a life insurance or endowment contract, any gain due to interest accumulated on the contract is ordinary income. 2010 tax forms 1040a See Transfers of Annuity Contracts in Publication 575 for more information about exchanges of annuity contracts. 2010 tax forms 1040a How To Report If you file Form 1040, report your total annuity on line 16a and the taxable part on line 16b. 2010 tax forms 1040a If your pension or annuity is fully taxable, enter it on line 16b; do not make an entry on line 16a. 2010 tax forms 1040a If you file Form 1040A, report your total annuity on line 12a and the taxable part on line 12b. 2010 tax forms 1040a If your pension or annuity is fully taxable, enter it on line 12b; do not make an entry on line 12a. 2010 tax forms 1040a More than one annuity. 2010 tax forms 1040a   If you receive more than one annuity and at least one of them is not fully taxable, enter the total amount received from all annuities on Form 1040, line 16a, or Form 1040A, line 12a, and enter the taxable part on Form 1040, line 16b, or Form 1040A, line 12b. 2010 tax forms 1040a If all the annuities you receive are fully taxable, enter the total of all of them on Form 1040, line 16b, or Form 1040A, line 12b. 2010 tax forms 1040a Joint return. 2010 tax forms 1040a   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on Form 1040, line 16a, or Form 1040A, line 12a, and report the taxable part on Form 1040, line 16b, or Form 1040A, line 12b. 2010 tax forms 1040a Cost (Investment in the Contract) Before you can figure how much, if any, of a distribution from your pension or annuity plan is taxable, you must determine your cost (your investment in the contract) in the pension or annuity. 2010 tax forms 1040a Your total cost in the plan includes the total premiums, contributions, or other amounts you paid. 2010 tax forms 1040a This includes the amounts your employer contributed that were taxable to you when paid. 2010 tax forms 1040a Cost does not include any amounts you deducted or were excluded from your income. 2010 tax forms 1040a From this total cost, subtract any refunds of premiums, rebates, dividends, unrepaid loans that were not included in your income, or other tax-free amounts that you received by the later of the annuity starting date or the date on which you received your first payment. 2010 tax forms 1040a Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed. 2010 tax forms 1040a Designated Roth accounts. 2010 tax forms 1040a   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. 2010 tax forms 1040a Your cost will also include any in-plan Roth rollovers you included in income. 2010 tax forms 1040a Foreign employment contributions. 2010 tax forms 1040a   If you worked in a foreign country and contributions were made to your retirement plan, special rules apply in determining your cost. 2010 tax forms 1040a See Foreign employment contributions under Cost (Investment in the Contract) in Publication 575. 2010 tax forms 1040a Taxation of Periodic Payments Fully taxable payments. 2010 tax forms 1040a   Generally, if you did not pay any part of the cost of your employee pension or annuity and your employer did not withhold part of the cost from your pay while you worked, the amounts you receive each year are fully taxable. 2010 tax forms 1040a You must report them on your income tax return. 2010 tax forms 1040a Partly taxable payments. 2010 tax forms 1040a   If you paid part of the cost of your pension or annuity, you are not taxed on the part of the pension or annuity you receive that represents a return of your cost. 2010 tax forms 1040a The rest of the amount you receive is generally taxable. 2010 tax forms 1040a You figure the tax-free part of the payment using either the Simplified Method or the General Rule. 2010 tax forms 1040a Your annuity starting date and whether or not your plan is qualified determine which method you must or may use. 2010 tax forms 1040a   If your annuity starting date is after November 18, 1996, and your payments are from a qualified plan, you must use the Simplified Method. 2010 tax forms 1040a Generally, you must use the General Rule if your annuity is paid under a nonqualified plan, and you cannot use this method if your annuity is paid under a qualified plan. 2010 tax forms 1040a   If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. 2010 tax forms 1040a   If your annuity is paid under a qualified plan and your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. 2010 tax forms 1040a Exclusion limit. 2010 tax forms 1040a   Your annuity starting date determines the total amount of annuity payments that you can exclude from your taxable income over the years. 2010 tax forms 1040a Once your annuity starting date is determined, it does not change. 2010 tax forms 1040a If you calculate the taxable portion of your annuity payments using the simplified method worksheet, the annuity starting date determines the recovery period for your cost. 2010 tax forms 1040a That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. 2010 tax forms 1040a Exclusion limited to cost. 2010 tax forms 1040a   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost cannot exceed your total cost. 2010 tax forms 1040a Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. 2010 tax forms 1040a This deduction is not subject to the 2%-of-adjusted-gross-income limit. 2010 tax forms 1040a Exclusion not limited to cost. 2010 tax forms 1040a   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. 2010 tax forms 1040a If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. 2010 tax forms 1040a The total exclusion may be more than your cost. 2010 tax forms 1040a Simplified Method Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. 2010 tax forms 1040a For an annuity that is payable for the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. 2010 tax forms 1040a For any other annuity, this number is the number of monthly annuity payments under the contract. 2010 tax forms 1040a Who must use the Simplified Method. 2010 tax forms 1040a   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you both: Receive pension or annuity payments from a qualified employee plan, qualified employee annuity, or a tax-sheltered annuity (403(b)) plan, and On your annuity starting date, you were either under age 75, or entitled to less than 5 years of guaranteed payments. 2010 tax forms 1040a Guaranteed payments. 2010 tax forms 1040a   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. 2010 tax forms 1040a If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. 2010 tax forms 1040a How to use the Simplified Method. 2010 tax forms 1040a    Complete the Simplified Method Worksheet in Publication 575 to figure your taxable annuity for 2013. 2010 tax forms 1040a Single-life annuity. 2010 tax forms 1040a    If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010 tax forms 1040a Enter on line 3 the number shown for your age at the annuity starting date. 2010 tax forms 1040a Multiple-lives annuity. 2010 tax forms 1040a   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010 tax forms 1040a Enter on line 3 the number shown for the combined ages of you and the youngest survivor annuitant at the annuity starting date. 2010 tax forms 1040a   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. 2010 tax forms 1040a Instead you must use Table 1 and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. 2010 tax forms 1040a    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity next year. 2010 tax forms 1040a Example. 2010 tax forms 1040a Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. 2010 tax forms 1040a Bill's annuity starting date is January 1, 2013. 2010 tax forms 1040a The benefits are to be paid for the joint lives of Bill and his wife Kathy, age 65. 2010 tax forms 1040a Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. 2010 tax forms 1040a Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. 2010 tax forms 1040a Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. 2010 tax forms 1040a Because his annuity is payable over the lives of more than one annuitant, he uses his and Kathy's combined ages and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet. 2010 tax forms 1040a His completed worksheet is shown in Worksheet 10-A. 2010 tax forms 1040a Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. 2010 tax forms 1040a Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. 2010 tax forms 1040a The full amount of any annuity payments received after 310 payments are paid must be included in gross income. 2010 tax forms 1040a If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. 2010 tax forms 1040a This deduction is not subject to the 2%-of-adjusted- gross-income limit. 2010 tax forms 1040a Worksheet 10-A. 2010 tax forms 1040a Simplified Method Worksheet for Bill Smith 1. 2010 tax forms 1040a Enter the total pension or annuity payments received this year. 2010 tax forms 1040a Also, add this amount to the total for Form 1040, line 16a, or Form 1040A, line 12a 1. 2010 tax forms 1040a 14,400 2. 2010 tax forms 1040a Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion*. 2010 tax forms 1040a See Cost (Investment in the Contract) , earlier 2. 2010 tax forms 1040a 31,000       Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 2010 tax forms 1040a Otherwise, go to line 3. 2010 tax forms 1040a         3. 2010 tax forms 1040a Enter the appropriate number from Table 1 below. 2010 tax forms 1040a But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. 2010 tax forms 1040a 310     4. 2010 tax forms 1040a Divide line 2 by the number on line 3 4. 2010 tax forms 1040a 100     5. 2010 tax forms 1040a Multiply line 4 by the number of months for which this year's payments were made. 2010 tax forms 1040a If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2010 tax forms 1040a Otherwise, go to line 6 5. 2010 tax forms 1040a 1,200     6. 2010 tax forms 1040a Enter any amounts previously recovered tax free in years after 1986. 2010 tax forms 1040a This is the amount shown on line 10 of your worksheet for last year 6. 2010 tax forms 1040a -0-     7. 2010 tax forms 1040a Subtract line 6 from line 2 7. 2010 tax forms 1040a 31,000     8. 2010 tax forms 1040a Enter the smaller of line 5 or line 7 8. 2010 tax forms 1040a 1,200 9. 2010 tax forms 1040a Taxable amount for year. 2010 tax forms 1040a Subtract line 8 from line 1. 2010 tax forms 1040a Enter the result, but not less than zero. 2010 tax forms 1040a Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b 9. 2010 tax forms 1040a 13,200   Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 2010 tax forms 1040a If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers in Publication 575 before entering an amount on your tax return. 2010 tax forms 1040a     10. 2010 tax forms 1040a Was your annuity starting date before 1987? □ Yes. 2010 tax forms 1040a STOP. 2010 tax forms 1040a Do not complete the rest of this worksheet. 2010 tax forms 1040a  ☑ No. 2010 tax forms 1040a Add lines 6 and 8. 2010 tax forms 1040a This is the amount you have recovered tax free through 2013. 2010 tax forms 1040a You will need this number if you need to fill out this worksheet next year 10. 2010 tax forms 1040a 1,200 11. 2010 tax forms 1040a Balance of cost to be recovered. 2010 tax forms 1040a Subtract line 10 from line 2. 2010 tax forms 1040a If zero, you will not have to complete this worksheet next year. 2010 tax forms 1040a The payments you receive next year will generally be fully taxable 11. 2010 tax forms 1040a 29,800 TABLE 1 FOR LINE 3 ABOVE   AND your annuity starting date was— IF the age at annuity starting date was. 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a before November 19, 1996, enter on line 3. 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a after November 18, 1996, enter on line 3. 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a 55 or under 300 360 56–60 260 310 61–65 240 260 66–70 170 210 71 or older 120 160 TABLE 2 FOR LINE 3 ABOVE IF the combined ages at annuity starting date were. 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a   THEN enter on line 3. 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a 110 or under   410 111–120   360 121–130   310 131–140   260 141 or older   210 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 2010 tax forms 1040a Who must use the General Rule. 2010 tax forms 1040a   You must use the General Rule if you receive pension or annuity payments from: A nonqualified plan (such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan), or A qualified plan if you are age 75 or older on your annuity starting date and your annuity payments are guaranteed for at least 5 years. 2010 tax forms 1040a Annuity starting before November 19, 1996. 2010 tax forms 1040a   If your annuity starting date is after July 1, 1986, and before November 19, 1996, you had to use the General Rule for either circumstance just described. 2010 tax forms 1040a You also had to use it for any fixed-period annuity. 2010 tax forms 1040a If you did not have to use the General Rule, you could have chosen to use it. 2010 tax forms 1040a If your annuity starting date is before July 2, 1986, you had to use the General Rule unless you could use the Three-Year Rule. 2010 tax forms 1040a   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. 2010 tax forms 1040a Who cannot use the General Rule. 2010 tax forms 1040a   You cannot use the General Rule if you receive your pension or annuity from a qualified plan and none of the circumstances described in the preceding discussions apply to you. 2010 tax forms 1040a See Who must use the Simplified Method , earlier. 2010 tax forms 1040a More information. 2010 tax forms 1040a   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. 2010 tax forms 1040a Taxation of Nonperiodic Payments Nonperiodic distributions are also known as amounts not received as an annuity. 2010 tax forms 1040a They include all payments other than periodic payments and corrective distributions. 2010 tax forms 1040a Examples of nonperiodic payments are cash withdrawals, distributions of current earnings, certain loans, and the value of annuity contracts transferred without full and adequate consideration. 2010 tax forms 1040a Corrective distributions of excess plan contributions. 2010 tax forms 1040a   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. 2010 tax forms 1040a To correct an excess, your plan may distribute it to you (along with any income earned on the excess). 2010 tax forms 1040a For information on plan contribution limits and how to report corrective distributions of excess contributions, see Retirement Plan Contributions under Employee Compensation in Publication 525. 2010 tax forms 1040a Figuring the taxable amount of nonperiodic payments. 2010 tax forms 1040a   How you figure the taxable amount of a nonperiodic distribution depends on whether it is made before the annuity starting date, or on or after the annuity starting date. 2010 tax forms 1040a If it is made before the annuity starting date, its tax treatment also depends on whether it is made under a qualified or nonqualified plan. 2010 tax forms 1040a If it is made under a nonqualified plan, its tax treatment depends on whether it fully discharges the contract, is received under certain life insurance or endowment contracts, or is allocable to an investment you made before August 14, 1982. 2010 tax forms 1040a Annuity starting date. 2010 tax forms 1040a   The annuity starting date is either the first day of the first period for which you receive an annuity payment under the contract or the date on which the obligation under the contract becomes fixed, whichever is later. 2010 tax forms 1040a Distribution on or after annuity starting date. 2010 tax forms 1040a   If you receive a nonperiodic payment from your annuity contract on or after the annuity starting date, you generally must include all of the payment in gross income. 2010 tax forms 1040a Distribution before annuity starting date. 2010 tax forms 1040a   If you receive a nonperiodic distribution before the annuity starting date from a qualified retirement plan, you generally can allocate only part of it to the cost of the contract. 2010 tax forms 1040a You exclude from your gross income the part that you allocate to the cost. 2010 tax forms 1040a You include the remainder in your gross income. 2010 tax forms 1040a   If you receive a nonperiodic distribution before the annuity starting date from a plan other than a qualified retirement plan (nonqualified plan), it is allocated first to earnings (the taxable part) and then to the cost of the contract (the tax-free part). 2010 tax forms 1040a This allocation rule applies, for example, to a commercial annuity contract you bought directly from the issuer. 2010 tax forms 1040a    Distributions from nonqualified plans are subject to the net investment income tax. 2010 tax forms 1040a See the Instructions for Form 8960. 2010 tax forms 1040a   For more information, see Figuring the Taxable Amount under Taxation of Nonperiodic Payments in Publication 575. 2010 tax forms 1040a Lump-Sum Distributions This section on lump-sum distributions only applies if the plan participant was born before January 2, 1936. 2010 tax forms 1040a If the plan participant was born after January 1, 1936, the taxable amount of this nonperiodic payment is reported as discussed earlier. 2010 tax forms 1040a A lump-sum distribution is the distribution or payment in one tax year of a plan participant's entire balance from all of the employer's qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans). 2010 tax forms 1040a A distribution from a nonqualified plan (such as a privately purchased commercial annuity or a section 457 deferred compensation plan of a state or local government or tax-exempt organization) cannot qualify as a lump-sum distribution. 2010 tax forms 1040a The participant's entire balance from a plan does not include certain forfeited amounts. 2010 tax forms 1040a It also does not include any deductible voluntary employee contributions allowed by the plan after 1981 and before 1987. 2010 tax forms 1040a For more information about distributions that do not qualify as lump-sum distributions, see Distributions that do not qualify under Lump-Sum Distributions in Publication 575. 2010 tax forms 1040a If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. 2010 tax forms 1040a The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. 2010 tax forms 1040a The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. 2010 tax forms 1040a You may be able to use the 10-year tax option, discussed later, to figure tax on the ordinary income part. 2010 tax forms 1040a Use Form 4972 to figure the separate tax on a lump-sum distribution using the optional methods. 2010 tax forms 1040a The tax figured on Form 4972 is added to the regular tax figured on your other income. 2010 tax forms 1040a This may result in a smaller tax than you would pay by including the taxable amount of the distribution as ordinary income in figuring your regular tax. 2010 tax forms 1040a How to treat the distribution. 2010 tax forms 1040a   If you receive a lump-sum distribution, you may have the following options for how you treat the taxable part. 2010 tax forms 1040a Report the part of the distribution from participation before 1974 as a capital gain (if you qualify) and the part from participation after 1973 as ordinary income. 2010 tax forms 1040a Report the part of the distribution from participation before 1974 as a capital gain (if you qualify) and use the 10-year tax option to figure the tax on the part from participation after 1973 (if you qualify). 2010 tax forms 1040a Use the 10-year tax option to figure the tax on the total taxable amount (if you qualify). 2010 tax forms 1040a Roll over all or part of the distribution. 2010 tax forms 1040a See Rollovers , later. 2010 tax forms 1040a No tax is currently due on the part rolled over. 2010 tax forms 1040a Report any part not rolled over as ordinary income. 2010 tax forms 1040a Report the entire taxable part of the distribution as ordinary income on your tax return. 2010 tax forms 1040a   The first three options are explained in the following discussions. 2010 tax forms 1040a Electing optional lump-sum treatment. 2010 tax forms 1040a   You can choose to use the 10-year tax option or capital gain treatment only once after 1986 for any plan participant. 2010 tax forms 1040a If you make this choice, you cannot use either of these optional treatments for any future distributions for the participant. 2010 tax forms 1040a Taxable and tax-free parts of the distribution. 2010 tax forms 1040a    The taxable part of a lump-sum distribution is the employer's contributions and income earned on your account. 2010 tax forms 1040a You may recover your cost in the lump sum and any net unrealized appreciation (NUA) in employer securities tax free. 2010 tax forms 1040a Cost. 2010 tax forms 1040a   In general, your cost is the total of: The plan participant's nondeductible contributions to the plan, The plan participant's taxable costs of any life insurance contract distributed, Any employer contributions that were taxable to the plan participant, and Repayments of any loans that were taxable to the plan participant. 2010 tax forms 1040a You must reduce this cost by amounts previously distributed tax free. 2010 tax forms 1040a Net unrealized appreciation (NUA). 2010 tax forms 1040a   The NUA in employer securities (box 6 of Form 1099-R) received as part of a lump-sum distribution is generally tax free until you sell or exchange the securities. 2010 tax forms 1040a (For more information, see Distributions of employer securities under Taxation of Nonperiodic Payments in Publication 575. 2010 tax forms 1040a ) Capital Gain Treatment Capital gain treatment applies only to the taxable part of a lump-sum distribution resulting from participation in the plan before 1974. 2010 tax forms 1040a The amount treated as capital gain is taxed at a 20% rate. 2010 tax forms 1040a You can elect this treatment only once for any plan participant, and only if the plan participant was born before January 2, 1936. 2010 tax forms 1040a Complete Part II of Form 4972 to choose the 20% capital gain election. 2010 tax forms 1040a For more information, see Capital Gain Treatment under Lump-Sum Distributions in Publication 575. 2010 tax forms 1040a 10-Year Tax Option The 10-year tax option is a special formula used to figure a separate tax on the ordinary income part of a lump-sum distribution. 2010 tax forms 1040a You pay the tax only once, for the year in which you receive the distribution, not over the next 10 years. 2010 tax forms 1040a You can elect this treatment only once for any plan participant, and only if the plan participant was born before January 2, 1936. 2010 tax forms 1040a The ordinary income part of the distribution is the amount shown in box 2a of the Form 1099-R given to you by the payer, minus the amount, if any, shown in box 3. 2010 tax forms 1040a You also can treat the capital gain part of the distribution (box 3 of Form 1099-R) as ordinary income for the 10-year tax option if you do not choose capital gain treatment for that part. 2010 tax forms 1040a Complete Part III of Form 4972 to choose the 10-year tax option. 2010 tax forms 1040a You must use the special Tax Rate Schedule shown in the instructions for Part III to figure the tax. 2010 tax forms 1040a Publication 575 illustrates how to complete Form 4972 to figure the separate tax. 2010 tax forms 1040a Rollovers If you withdraw cash or other assets from a qualified retirement plan in an eligible rollover distribution, you can defer tax on the distribution by rolling it over to another qualified retirement plan or a traditional IRA. 2010 tax forms 1040a For this purpose, the following plans are qualified retirement plans. 2010 tax forms 1040a A qualified employee plan. 2010 tax forms 1040a A qualified employee annuity. 2010 tax forms 1040a A tax-sheltered annuity plan (403(b) plan). 2010 tax forms 1040a An eligible state or local government section 457 deferred compensation plan. 2010 tax forms 1040a Eligible rollover distributions. 2010 tax forms 1040a   Generally, an eligible rollover distribution is any distribution of all or any part of the balance to your credit in a qualified retirement plan. 2010 tax forms 1040a For information about exceptions to eligible rollover distributions, see Publication 575. 2010 tax forms 1040a Rollover of nontaxable amounts. 2010 tax forms 1040a   You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) made to another qualified retirement plan that is a qualified employee plan or a 403(b) plan, or to a traditional or Roth IRA. 2010 tax forms 1040a The transfer must be made either through a direct rollover to a qualified plan or 403(b) plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to a traditional or Roth IRA. 2010 tax forms 1040a   If you roll over only part of a distribution that includes both taxable and nontaxable amounts, the amount you roll over is treated as coming first from the taxable part of the distribution. 2010 tax forms 1040a   Any after-tax contributions that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. 2010 tax forms 1040a To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. 2010 tax forms 1040a For more information, see the Form 8606 instructions. 2010 tax forms 1040a Direct rollover option. 2010 tax forms 1040a   You can choose to have any part or all of an eligible rollover distribution paid directly to another qualified retirement plan that accepts rollover distributions or to a traditional or Roth IRA. 2010 tax forms 1040a If you choose the direct rollover option, or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. 2010 tax forms 1040a Payment to you option. 2010 tax forms 1040a   If an eligible rollover distribution is paid to you, 20% generally will be withheld for income tax. 2010 tax forms 1040a However, the full amount is treated as distributed to you even though you actually receive only 80%. 2010 tax forms 1040a You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional or Roth IRA. 2010 tax forms 1040a (See Pensions and Annuities under Tax Withholding for 2014 in chapter 4. 2010 tax forms 1040a )    If you decide to roll over an amount equal to the distribution before withholding, your contribution to the new plan or IRA must include other money (for example, from savings or amounts borrowed) to replace the amount withheld. 2010 tax forms 1040a Time for making rollover. 2010 tax forms 1040a   You generally must complete the rollover of an eligible rollover distribution paid to you by the 60th day following the day on which you receive the distribution from your employer's plan. 2010 tax forms 1040a (If an amount distributed to you becomes a frozen deposit in a financial institution during the 60-day period after you receive it, the rollover period is extended for the period during which the distribution is in a frozen deposit in a financial institution. 2010 tax forms 1040a )   The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. 2010 tax forms 1040a   The administrator of a qualified plan must give you a written explanation of your distribution options within a reasonable period of time before making an eligible rollover distribution. 2010 tax forms 1040a Qualified domestic relations order (QDRO). 2010 tax forms 1040a   You may be able to roll over tax free all or part of a distribution from a qualified retirement plan that you receive under a QDRO. 2010 tax forms 1040a If you receive the distribution as an employee's spouse or former spouse (not as a nonspousal beneficiary), the rollover rules apply to you as if you were the employee. 2010 tax forms 1040a You can roll over the distribution from the plan into a traditional IRA or to another eligible retirement plan. 2010 tax forms 1040a See Rollovers in Publication 575 for more information on benefits received under a QDRO. 2010 tax forms 1040a Rollover by surviving spouse. 2010 tax forms 1040a   You may be able to roll over tax free all or part of a distribution from a qualified retirement plan you receive as the surviving spouse of a deceased employee. 2010 tax forms 1040a The rollover rules apply to you as if you were the employee. 2010 tax forms 1040a You can roll over a distribution into a qualified retirement plan or a traditional or Roth IRA. 2010 tax forms 1040a For a rollover to a Roth IRA, see Rollovers to Roth IRAs , later. 2010 tax forms 1040a    A distribution paid to a beneficiary other than the employee's surviving spouse is generally not an eligible rollover distribution. 2010 tax forms 1040a However, see Rollovers by nonspouse beneficiary next. 2010 tax forms 1040a Rollovers by nonspouse beneficiary. 2010 tax forms 1040a   If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you may be able to roll over tax free all or a portion of a distribution you receive from an eligible retirement plan of the employee. 2010 tax forms 1040a The distribution must be a direct trustee-to-trustee transfer to your traditional or Roth IRA that was set up to receive the distribution. 2010 tax forms 1040a The transfer will be treated as an eligible rollover distribution and the receiving plan will be treated as an inherited IRA. 2010 tax forms 1040a For information on inherited IRAs, see What if You Inherit an IRA? in chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs). 2010 tax forms 1040a Retirement bonds. 2010 tax forms 1040a   If you redeem retirement bonds purchased under a qualified bond purchase plan, you can roll over the proceeds that exceed your basis tax free into an IRA (as discussed in Publication 590) or a qualified employer plan. 2010 tax forms 1040a Designated Roth accounts. 2010 tax forms 1040a   You can roll over an eligible rollover distribution from a designated Roth account into another designated Roth account or a Roth IRA. 2010 tax forms 1040a If you want to roll over the part of the distribution that is not included in income, you must make a direct rollover of the entire distribution or you can roll over the entire amount (or any portion) to a Roth IRA. 2010 tax forms 1040a For more information on rollovers from designated Roth accounts, see Rollovers in Publication 575. 2010 tax forms 1040a In-plan rollovers to designated Roth accounts. 2010 tax forms 1040a   If you are a plan participant in a 401(k), 403(b), or 457(b) plan, your plan may permit you to roll over amounts in those plans to a designated Roth account within the same plan. 2010 tax forms 1040a The rollover of any untaxed amounts must be included in income. 2010 tax forms 1040a See Designated Roth accounts under Rollovers in Publication 575 for more information. 2010 tax forms 1040a Rollovers to Roth IRAs. 2010 tax forms 1040a   You can roll over distributions directly from a qualified retirement plan (other than a designated Roth account) to a Roth IRA. 2010 tax forms 1040a   You must include in your gross income distributions from a qualified retirement plan (other than a designated Roth account) that you would have had to include in income if you had not rolled them over into a Roth IRA. 2010 tax forms 1040a You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of contributions to the plan that were taxable to you when paid. 2010 tax forms 1040a In addition, the 10% tax on early distributions does not apply. 2010 tax forms 1040a More information. 2010 tax forms 1040a   For more information on the rules for rolling over distributions, see Rollovers in Publication 575. 2010 tax forms 1040a Special Additional Taxes To discourage the use of pension funds for purposes other than normal retirement, the law imposes additional taxes on early distributions of those funds and on failures to withdraw the funds timely. 2010 tax forms 1040a Ordinarily, you will not be subject to these taxes if you roll over all early distributions you receive, as explained earlier, and begin drawing out the funds at a normal retirement age, in reasonable amounts over your life expectancy. 2010 tax forms 1040a These special additional taxes are the taxes on: Early distributions, and Excess accumulation (not receiving minimum distributions). 2010 tax forms 1040a These taxes are discussed in the following sections. 2010 tax forms 1040a If you must pay either of these taxes, report them on Form 5329. 2010 tax forms 1040a However, you do not have to file Form 5329 if you owe only the tax on early distributions and your Form 1099-R correctly shows a “1” in box 7. 2010 tax forms 1040a Instead, enter 10% of the taxable part of the distribution on Form 1040, line 58 and write “No” under the heading “Other Taxes” to the left of line 58. 2010 tax forms 1040a Even if you do not owe any of these taxes, you may have to complete Form 5329 and attach it to your Form 1040. 2010 tax forms 1040a This applies if you meet an exception to the tax on early distributions but box 7 of your Form 1099-R does not indicate an exception. 2010 tax forms 1040a Tax on Early Distributions Most distributions (both periodic and nonperiodic) from qualified retirement plans and nonqualified annuity contracts made to you before you reach age 59½ are subject to an additional tax of 10%. 2010 tax forms 1040a This tax applies to the part of the distribution that you must include in gross income. 2010 tax forms 1040a For this purpose, a qualified retirement plan is: A qualified employee plan, A qualified employee annuity plan, A tax-sheltered annuity plan, or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). 2010 tax forms 1040a 5% rate on certain early distributions from deferred annuity contracts. 2010 tax forms 1040a   If an early withdrawal from a deferred annuity is otherwise subject to the 10% additional tax, a 5% rate may apply instead. 2010 tax forms 1040a A 5% rate applies to distributions under a written election providing a specific schedule for the distribution of your interest in the contract if, as of March 1, 1986, you had begun receiving payments under the election. 2010 tax forms 1040a On line 4 of Form 5329, multiply the line 3 amount by 5% instead of 10%. 2010 tax forms 1040a Attach an explanation to your return. 2010 tax forms 1040a Distributions from Roth IRAs allocable to a rollover from an eligible retirement plan within the 5-year period. 2010 tax forms 1040a   If, within the 5-year period starting with the first day of your tax year in which you rolled over an amount from an eligible retirement plan to a Roth IRA, you take a distribution from the Roth IRA, you may have to pay the additional 10% tax on early distributions. 2010 tax forms 1040a You generally must pay the 10% additional tax on any amount attributable to the part of the rollover that you had to include in income. 2010 tax forms 1040a The additional tax is figured on Form 5329. 2010 tax forms 1040a For more information, see Form 5329 and its instructions. 2010 tax forms 1040a For information on qualified distributions from Roth IRAs, see Additional Tax on Early Distributions in chapter 2 of Publication 590. 2010 tax forms 1040a Distributions from designated Roth accounts allocable to in-plan Roth rollovers within the 5-year period. 2010 tax forms 1040a   If, within the 5-year period starting with the first day of your tax year in which you rolled over an amount from a 401(k), 403(b), or 457(b) plan to a designated Roth account, you take a distribution from the designated Roth account, you may have to pay the additional 10% tax on early distributions. 2010 tax forms 1040a You generally must pay the 10% additional tax on any amount attributable to the part of the in-plan rollover that you had to include in income. 2010 tax forms 1040a The additional tax is figured on Form 5329. 2010 tax forms 1040a For more information, see Form 5329 and its instructions. 2010 tax forms 1040a For information on qualified distributions from designated Roth accounts, see Designated Roth accounts under Taxation of Periodic Payments in Publication 575. 2010 tax forms 1040a Exceptions to tax. 2010 tax forms 1040a    Certain early distributions are excepted from the early distribution tax. 2010 tax forms 1040a If the payer knows that an exception applies to your early distribution, distribution code “2,” “3,” or “4” should be shown in box 7 of your Form 1099-R and you do not have to report the distribution on Form 5329. 2010 tax forms 1040a If an exception applies but distribution code “1” (early distribution, no known exception) is shown in box 7, you must file Form 5329. 2010 tax forms 1040a Enter the taxable amount of the distribution shown in box 2a of your Form 1099-R on line 1 of Form 5329. 2010 tax forms 1040a On line 2, enter the amount that can be excluded and the exception number shown in the Form 5329 instructions. 2010 tax forms 1040a    If distribution code “1” is incorrectly shown on your Form 1099-R for a distribution received when you were age 59½ or older, include that distribution on Form 5329. 2010 tax forms 1040a Enter exception number “12” on line 2. 2010 tax forms 1040a General exceptions. 2010 tax forms 1040a   The tax does not apply to distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after your separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. 2010 tax forms 1040a Additional exceptions for qualified retirement plans. 2010 tax forms 1040a   The tax does not apply to distributions that are: From a qualified retirement plan (other than an IRA) after your separation from service in or after the year you reached age 55 (age 50 for qualified public safety employees), From a qualified retirement plan (other than an IRA) to an alternate payee under a qualified domestic relations order, From a qualified retirement plan to the extent you have deductible medical expenses that exceed 10% (or 7. 2010 tax forms 1040a 5% if you or your spouse are age 65 or older) of your adjusted gross income, whether or not you itemize your deductions for the year, From an employer plan under a written election that provides a specific schedule for distribution of your entire interest if, as of March 1, 1986, you had separated from service and had begun receiving payments under the election, From an employee stock ownership plan for dividends on employer securities held by the plan, From a qualified retirement plan due to an IRS levy of the plan, From elective deferral accounts under 401(k) or 403(b) plans or similar arrangements that are qualified reservist distributions, or Phased retirement annuity payments made to federal employees. 2010 tax forms 1040a See Pub. 2010 tax forms 1040a 721 for more information on the phased retirement program. 2010 tax forms 1040a Qualified public safety employees. 2010 tax forms 1040a   If you are a qualified public safety employee, distributions made from a governmental defined benefit pension plan are not subject to the additional tax on early distributions. 2010 tax forms 1040a You are a qualified public safety employee if you provide police protection, firefighting services, or emergency medical services for a state or municipality, and you separated from service in or after the year you attained age 50. 2010 tax forms 1040a Qualified reservist distributions. 2010 tax forms 1040a   A qualified reservist distribution is not subject to the additional tax on early distributions. 2010 tax forms 1040a A qualified reservist distribution is a distribution (a) from elective deferrals under a section 401(k) or 403(b) plan, or a similar arrangement, (b) to an individual ordered or called to active duty (because he or she is a member of a reserve component) for a period of more than 179 days or for an indefinite period, and (c) made during the period beginning on the date of the order or call and ending at the close of the active duty period. 2010 tax forms 1040a You must have been ordered or called to active duty after September 11, 2001. 2010 tax forms 1040a For more information, see Qualified reservist distributions under Special Additional Taxes in Publication 575. 2010 tax forms 1040a Additional exceptions for nonqualified annuity contracts. 2010 tax forms 1040a   The tax does not apply to distributions from: A deferred annuity contract to the extent allocable to investment in the contract before August 14, 1982, A deferred annuity contract under a qualified personal injury settlement, A deferred annuity contract purchased by your employer upon termination of a qualified employee plan or qualified employee annuity plan and held by your employer until your separation from service, or An immediate annuity contract (a single premium contract providing substantially equal annuity payments that start within 1 year from the date of purchase and are paid at least annually). 2010 tax forms 1040a Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date (defined later). 2010 tax forms 1040a The payments each year cannot be less than the required minimum distribution. 2010 tax forms 1040a Required distributions not made. 2010 tax forms 1040a   If the actual distributions to you in any year are less than the minimum required distribution for that year, you are subject to an additional tax. 2010 tax forms 1040a The tax equals 50% of the part of the required minimum distribution that was not distributed. 2010 tax forms 1040a   For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan)(for benefits accruing after 1986). 2010 tax forms 1040a Waiver. 2010 tax forms 1040a   The tax may be waived if you establish that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. 2010 tax forms 1040a See the Instructions for Form 5329 for the procedure to follow if you believe you qualify for a waiver of this tax. 2010 tax forms 1040a State insurer delinquency proceedings. 2010 tax forms 1040a   You might not receive the minimum distribution because assets are invested in a contract issued by an insurance company in state insurer delinquency proceedings. 2010 tax forms 1040a If your payments are reduced below the minimum due to these proceedings, you should contact your plan administrator. 2010 tax forms 1040a Under certain conditions, you will not have to pay the 50% excise tax. 2010 tax forms 1040a Required beginning date. 2010 tax forms 1040a   Unless the rule for 5% owners applies, you generally must begin to receive distributions from your qualified retirement plan by April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. 2010 tax forms 1040a However, your plan may require you to begin to receive distributions by April 1 of the year that follows the year in which you reach age 70½, even if you have not retired. 2010 tax forms 1040a   If you reached age 70½ in 2013, you may be required to receive your first distribution by April 1, 2014. 2010 tax forms 1040a Your required distribution then must be made for 2014 by December 31, 2014. 2010 tax forms 1040a 5% owners. 2010 tax forms 1040a   If you are a 5% owner, you must begin to receive distributions by April 1 of the year that follows the calendar year in which you reach age 70½. 2010 tax forms 1040a   You are a 5% owner if, for the plan year ending in the calendar year in which you reach age 70½, you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the outstanding stock (or more than 5% of the total voting power of all stock) of the employer, or more than 5% of the capital or profits interest in the employer. 2010 tax forms 1040a Age 70½. 2010 tax forms 1040a   You reach age 70½ on the date that is 6 calendar months after the date of your 70th birthday. 2010 tax forms 1040a   For example, if you are retired and your 70th birthday was on June 30, 2013, you were age 70½ on December 30, 2013. 2010 tax forms 1040a If your 70th birthday was on July 1, 2013, you reached age 70½ on January 1, 2014. 2010 tax forms 1040a Required distributions. 2010 tax forms 1040a   By the required beginning date, as explained earlier, you must either: Receive your entire interest in the plan (for a tax-sheltered annuity, your entire benefit accruing after 1986), or Begin receiving periodic distributions in annual amounts calculated to distribute your entire interest (for a tax-sheltered annuity, your entire benefit accruing after 1986) over your life or life expectancy or over the joint lives or joint life expectancies of you and a designated beneficiary (or over a shorter period). 2010 tax forms 1040a Additional information. 2010 tax forms 1040a   For more information on this rule, see Tax on Excess Accumulation in Publication 575. 2010 tax forms 1040a Form 5329. 2010 tax forms 1040a   You must file Form 5329 if you owe tax because you did not receive a minimum required distribution from your qualified retirement plan. 2010 tax forms 1040a Survivors and Beneficiaries Generally, a survivor or beneficiary reports pension or annuity income in the same way the plan participant would have. 2010 tax forms 1040a However, some special rules apply. 2010 tax forms 1040a See Publication 575 for more information. 2010 tax forms 1040a Survivors of employees. 2010 tax forms 1040a   If you are entitled to receive a survivor annuity on the death of an employee who died, you can exclude part of each annuity payment as a tax-free recovery of the employee's investment in the contract. 2010 tax forms 1040a You must figure the taxable and tax-free parts of your annuity payments using the method that applies as if you were the employee. 2010 tax forms 1040a Survivors of retirees. 2010 tax forms 1040a   If you receive benefits as a survivor under a joint and survivor annuity, include those benefits in income in the same way the retiree would have included them in income. 2010 tax forms 1040a If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule and recovered all of the cost tax free, your survivor payments are fully taxable. 2010 tax forms 1040a    If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage to your initial survivor annuity payment called for in the contract. 2010 tax forms 1040a The resulting tax-free amount will then remain fixed. 2010 tax forms 1040a Any increases in the survivor annuity are fully taxable. 2010 tax forms 1040a    If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. 2010 tax forms 1040a This amount remains fixed even if the annuity payments are increased or decreased. 2010 tax forms 1040a See Simplified Method , earlier. 2010 tax forms 1040a   In any case, if the annuity starting date is after 1986, the total exclusion over the years cannot be more than the cost. 2010 tax forms 1040a Estate tax deduction. 2010 tax forms 1040a   If your annuity was a joint and survivor annuity that was included in the decedent's estate, an estate tax may have been paid on it. 2010 tax forms 1040a You can deduct the part of the total estate tax that was based on the annuity. 2010 tax forms 1040a The deceased annuitant must have died after the annuity starting date. 2010 tax forms 1040a (For details, see section 1. 2010 tax forms 1040a 691(d)-1 of the regulations. 2010 tax forms 1040a ) Deduct it in equal amounts over your remaining life expectancy. 2010 tax forms 1040a   If the decedent died before the annuity starting date of a deferred annuity contract and you receive a death benefit under that contract, the amount you receive (either in a lump sum or as periodic payments) in excess of the decedent's cost is included in your gross income as income in respect of a decedent for which you may be able to claim an estate tax deduction. 2010 tax forms 1040a   You can take the estate tax deduction as an itemized deduction on Schedule A, Form 1040. 2010 tax forms 1040a This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. 2010 tax forms 1040a See Publication 559, Survivors, Executors, and Administrators, for more information on the estate tax deduction. 2010 tax forms 1040a Prev  Up  Next   Home   More Online Publications
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On December 28, 2012, we launched version 2.0 of the API and made the following changes:

  • Launched new methods to return directory records in a hierarchical fashion.
  • Results can now be returned using XML and JSONP, as well as straight JSON.
  • The Interface method was removed.

About the Data

The data in the Federal Agency Directory API is based on the English and Spanish federal agency directories. We gather this data from the agency information listed in the U.S. Government Manual, and independent research by our staff.

There is no schedule for data updates; we update data continually, and as needed. Early versions of the API may have incomplete and inconsistent data. We are working to continually develop the data in our directory records.

If you have suggestions about what types of data you would like to see in the Federal Agency Directory API, please e-mail us.

About the Spanish Data

GobiernoUSA.gov and the North American Academy of the Spanish Language (ANLE, per its Spanish acronym) worked together to review federal agencies Spanish translations to ensure language accuracy and consistency throughout the government. ANLE, the highest authority on Spanish language in the United States, and GobiernoUSA.gov have the joined mission of improving and standardizing the use of Spanish language in government communications.

This collaboration, possible through a signed agreement between the two institutions, resulted in a list of official Spanish language translations of federal agencies, available through this API.

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Accessing the API

Our Federal Agency Directory API is accessible via HTTP GET requests and does not require a login or API key to use.

The base URL for the API is http://www.usa.gov/api/USAGovAPI/contacts.{format}/. Append the API call you’d like to make to this URL.

Currently, three output formats are available:

  1. JSON (such as http://www.usa.gov/api/USAGovAPI/contacts.json/contacts)
  2. XML (such as http://www.usa.gov/api/USAGovAPI/contacts.xml/contacts)
  3. JSONP (such as http://www.usa.gov/api/USAGovAPI/contacts.jsonp/contacts?callback=callmemaybe). When requesting JSONP, you should include a callback parameter with the name of the callback function you would like called.

For the purposes of this documentation, only JSON sample calls and results will be shown.

API Result Formats

The Federal Agency Directory API returns results in json, with an optional callback parameter to enable jsonp support.

Interactive Documentation for the API

If you're interested in trying out the Federal Agency Directory API, we have an interactive test page. On this page, you can try different parameters and see the results.

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API Data Model

The following fields are associated with directory records. Please note that not every record has data in every field, and the API will only return completed fields.

  • Id - A unique identifier for each directory record
  • Name – The name of the agency.
  • Description – A brief description of the agency.
  • Language – Whether the record is in English or Spanish.
  • Subdivision – Used for mailing items to the agency.
  • Street1 – A first line of address information (such as the street address) for the agency’s main office.
  • Street2 – A second line of address information for the agency’s main office.
  • City – The city of the agency’s main office.
  • StateTer – The state of the agency’s main office.
  • Zip – The postal zip code of the agency’s main office.
  • Email – The e-mail address for the agency’s main office.
  • Phone – The phone number of the agency’s main office (may contain more than one).
  • TTY – The TTY number of the agency’s main office (may contain more than one).
  • Tollfree – The toll-free number to contact the agency (may contain more than one).
  • SMS – Any services offered via text messaging by the agency.
  • Synonym – Alternative names used commonly to refer to the agency (may contain more than one).
  • URI – The URL to access the agency’s complete directory record via the API.
  • Source_Url – The USA.gov or GobiernoUSA.gov URL that contains the record.

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URLs

The directory API returns several types of URLs that can be used to link to the agency.

  • Web_Url – Main URLs for the agency (may contain more than one).
  • Contact_Url – URLs for the public to contact the agency (may contain more than one).
  • In_Person_Url – URLs for the public to find out how to interact with the agney in person (may contain more than one).
  • Form_Url – URLs for the agency to find forms from the agency (may contain more than one).

For each of these URLs, the following sub-data elements are returned:

  • Url – The URL to the web page.
  • Description – A description of the URL.
  • Language – Whether the web page located at the URL is in English (en) or Spanish (es).

Agency Relationships

Additionally, the directory API returns information on the hierarchical relationship between federal agencies.

  • Parent – The parent of the agency. such as the Department of the Treasury for the Internal Revenue Service.
  • Child – Any children departments or agencies for the agency. such as the Census Bureau for the Department of Commerce (may contain more than one of these).
  • Alt_Language – The record for the agency in Spanish, if the record is in English, and vice versa.

For each of these relationships, the following sub-data elements are returned for the related agency:

  • Id – A unique identifier for each directory record
  • Name – The name of the agency.
  • URI – The URL to access the agency’s complete directory record via the API.
  • For Alt_Language only, Language – Whether the alternate language record is in English (en) or Spanish (es).

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API Methods

As of version 2.0, the methods of the Federal Agency Directory API are broken down into two categories. The first category simply returns a list of agency records. The second category returns a hierarchical structure of the agency records, making it easy to form a tree. The tree can show that the Food and Drug Administration is part of the Department of Health and Human Services. This is just one example.

API Methods That Return A List of Agency Records

Contacts

Contacts is a general purpose call that, by default, will return all of the agency directory records. However, you can pass parameters into contacts that allow you to filter the records returned by the API in powerful ways.

Parameters

query_filter – Return only agency directory records that meet the criteria you enter into this parameter. In general, the filter takes the form of {field_name}::{value}[|{field_name}::{value}]*. Additionally, for names, you can perform substring searches by surrounding {value} with asterixis.

For example, if you want to return all agencies that have the word “commission” in their title, you can use a query_filter of name::*commission*. Likewise, if you want to find all commissions who have their main address in Virginia, you can use a query_filter of: name::*commission*|state::VA

See the data model above for a list of field names that you can query on.

result_filter – Return only the fields listed here (separated by |) as opposed to every field in each directory record. For example, use a result_filter of name|phone to return only names and phone numbers.

See the data model above for a list of field names that you can specify be returned.

sort – Allows you to specify the sort order of the returned agency directory records. For example, use a sort of name to sort the results by the agency’s name. You can also cause the sort to go in descending order by prepending the field name with a -, such as -name.

See the data model above for a list of field names that you can sort the results on.

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/contacts/tree/independent

The independent method will return every agency record that has no parent and no child, such as the National Railroad Passenger Corporation.

/contacts/tree

The tree method returns every agency record, and, optionally, includes sub-agencies as part of their parent agency’s record.

Paramaters

include_descendants - Set to true if you want the API to return the descendents directly as part of their parent agency’s record.

/contacts/tree/dependent

The dependent method returns every agency record that has sub-agencies, and, optionally, includes sub-agencies as part of their parent agency’s record.

Parameters

include_descendants - Set to true if you want the API to return the descendents directly as part of their parent agency’s record.

/contact/{identifier}/tree/sibling

The sibling method will return all of the agency records that are siblings to the agency represented by the id specified in the REST URL. It will also return the record for the id specified as well.  

The only difference between the result format of the sibling method and the more generic contacts method is that the siblings method does not return the child and parent data elements as part of it’s results.

For example, if you request the sibling agencies for the U.S. Botanic Garden (id 49108), the API will return records for both the U.S. Botanic Garden and the U.S. Capitol Visitor Center, as both of these agencies are part of the Architect of the Capitol.

If you desired the results in JSON format, the API call for this query would look like the following:
http://www.usa.gov/api/USAGovAPI/contacts.json/contact/49108/tree/sibling

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Sample Results For These Methods

For API methods that return a list of directory records, the API will return an array of objects, such as:

The API will return an array of objects, such as:

{
   "Contact":[
      {
         "Id":"52663",
         "URI":"http://www.usa.gov/api/USAGovAPI/contacts.json/contact/52663",
         "Language":"en",
         "Name":"U.S. Access Board",
         "Source_Url":"http://www.usa.gov/directory/federal/us-access-board.shtml",
         "Street1":"1331 F Street, NW",
         "Street2":"Suite 1000",
         "City":"Washington",
         "StateTer":"DC",
         "Zip":"20004-1111",
         "Synonym":[
            "Access Board"
         ],
         "Phone":[
            "202-272-0080"
         ],
         "Tollfree":[
            "800-872-2253"
         ],
         "TTY":[
            "202-272-0082",
            "800-993-2822"
         ],
         "Email":"info@access-board.gov",
         "Contact_Url":[
            {
               "Url":"http://www.access-board.gov/contact.htm",
               "Description":"Contact the U.S. Access Board ",
               "Language":"en"
            },
            {
               "Url":"http://www.access-board.gov/contact.htm#email",
               "Description":"E-mail Directory",
               "Language":"en"
            },
            {
               "Url":"http://www.access-board.gov/contact.htm#Phone",
               "Description":"Phone Directory",
               "Language":"en"
            },
            {
               "Url":"http://www.access-board.gov/enforcement/filing.htm",
               "Description":"File an Accessibility Complaint",
               "Language":"en"
            }
         ],
         "Web_Url":[
            {
               "Url":"http://www.access-board.gov/",
               "Description":"U.S. Access Board ",
               "Language":"en"
            }
         ],
         "In_Person_Url":[
            {
               "Url":"http://www.access-board.gov/contact.htm#Location",
               "Description":"Map and Directions",
               "Language":"en"
            }
         ],
         "Description":"The Access Board is an independent federal agency devoted to accessibility for people with disabilities. The Board develops and maintains design criteria for the built environment, transit vehicles, telecommunications equipment, and for electronic and information technology. ",
         "Alt_Language":[
            {
               "Id":"50175",
               "URI":"http://www.usa.gov/api/USAGovAPI/contacts.json/contact/50175",
               "Name":"Consejo de Acceso de Estados Unidos",
               "Language":"es"
            }
         ]
      },
      {
         "Id":"61787",
         "URI":"http://www.usa.gov/api/USAGovAPI/contacts.json/contact/61787",
         "Language":"en",
         "Name":"Medicaid and CHIP Payment and Access Commission",
         "Source_Url":"http://www.usa.gov/directory/federal/medicaid-chip-payment-access-commission.shtml",
         "Street1":"1800 M Street, NW",
         "Street2":"Suite 350N",
         "City":"Washington",
         "StateTer":"DC",
         "Zip":"20036",
         "Phone":[
            "202-273-2460"
         ],
         "Email":"webmaster@macpac.gov",
         "Web_Url":[
            {
               "Url":"http://www.macpac.gov",
               "Description":"Medicaid and CHIP Payment and Access Commission ",
               "Language":"en"
            }
         ]
      }
   ]
}

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If you set include_descendents to true in the tree or descendants methods, parent agencies will include an array called "Contact" with their child agency records, such as in this snippet:

{
   "Contact":[
      {
         "Id":"49015",
         "URI":"http://www.usa.gov/api/USAGovAPI/contacts.json/contact/49015",
         "Language":"en",
         "Name":"U.S. Department of Agriculture (USDA)",
         "Source_Url":"http://www.usa.gov/directory/federal/department-of-agriculture.shtml",
         "Street1":"1400 Independence Ave., S.W.",
         "City":"Washington",
         "StateTer":"DC",
         "Zip":"20250",
         "Synonym":[
            "Agriculture Department",
            "Department of Agriculture"
         ],
         "Phone":[
            "202-720-2791"
         ],
         "Contact_Url":[
            {
               "Url":"http://usda.gov/wps/portal/usda/usdahome?navid=CONTACT_US",
               "Description":"Contact the U.S. Department of Agriculture (USDA) ",
               "Language":"en"
            },
            {
               "Url":"http://www.fns.usda.gov/cnd/Contacts/StateDirectory.htm",
               "Description":"Child Nutrition Programs",
               "Language":"en"
            },
            {
               "Url":"http://www.fns.usda.gov/snap/contact_info/default.htm",
               "Description":"Food Stamps",
               "Language":"en"
            },
            {
               "Url":"http://www.fsis.usda.gov/Food_Safety_Education/USDA_Meat_&_Poultry_Hotline/index.asp",
               "Description":"Meat and Poultry Hotline",
               "Language":"en"
            },
            {
               "Url":"http://offices.sc.egov.usda.gov/employeeDirectory/app",
               "Description":"Employee Directory",
               "Language":"en"
            }
         ],
         "Web_Url":[
            {
               "Url":"http://www.usda.gov/wps/portal/usda/usdahome",
               "Description":"U.S. Department of Agriculture (USDA) ",
               "Language":"en"
            }
         ],
         "In_Person_Url":[
            {
               "Url":"http://www.rurdev.usda.gov/recd_map.html",
               "Description":"Rural Development Office Locator",
               "Language":"en"
            },
            {
               "Url":"http://apps.ams.usda.gov/FarmersMarkets/",
               "Description":"Farmers Markets Near You",
               "Language":"en"
            },
            {
               "Url":"http://offices.sc.egov.usda.gov/locator/app",
               "Description":"Find a Service Center Near You",
               "Language":"en"
            }
         ],
         "Description":"The Department of Agriculture provides leadership on food, agriculture, natural resources, and related issues.",
         "Alt_Language":[
            {
               "Id":"50072",
               "URI":"http://www.usa.gov/api/USAGovAPI/contacts.json/contact/50072",
               "Name":"Departamento de Agricultura",
               "Language":"es"
            }
         ],
         "Contact":[
            {
               "Id":"48012",
               "URI":"http://www.usa.gov/api/USAGovAPI/contacts.json/contact/48012",
               "Language":"en",
               "Name":"Center for Nutrition Policy and Promotion (CNPP)",
               "Source_Url":"http://www.usa.gov/directory/federal/center-for-nutrition-policy-and-promotion.shtml",
               "Street1":"3101 Park Center Dr., 10th Floor",
               "City":"Alexandria",
               "StateTer":"VA",
               "Zip":"22302-1594",
               "Phone":[
                  "703-305-7600"
               ],
               "Contact_Url":[
                  {
                     "Url":"http://www.cnpp.usda.gov/contacts.htm",
                     "Description":"Contact the Center for Nutrition Policy and Promotion (CNPP) ",
                     "Language":"en"
                  }
               ],
               "Web_Url":[
                  {
                     "Url":"http://www.cnpp.usda.gov/",
                     "Description":"Center for Nutrition Policy and Promotion (CNPP) ",
                     "Language":"en"
                  },
                  {
                     "Url":"http://www.choosemyplate.gov/",
                     "Description":"",
                     "Language":"en"
                  }
               ],
               "Description":"The USDA Center for Nutrition Policy and Promotion (CNPP) works to improve the health and well-being of Americans by developing and promoting dietary guidance that links scientific research to the nutrition needs of consumers."
            }
         ]
      }
   ]
}

For a complete list of fields returned in the json, see the data model description above. Please note that any field that contains more than one item in it (such as synonyms), is returned as an array and noted in the data model description.

We encourage you to try out the interactive documentation to learn more.

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API Methods That Return Agency Records in a Tree Form

These methods return agency records in a hierarchical data structure. In this way, you do not have to manually recreate the hierarchy yourself using the contacts method.

/contact/{identifier}/tree/parent

The parent method returns the record of the parent agency specified in the REST URL and will continue up the agency hierarchy until the root agency is returned. Additionally, the record for the id specified will also be returned.

For example, if you request the parent tree for the Administration for Native Americans (agency id 49064) , the API will return a tree structure whose head is the U.S.  Department of Health and Human Services, with a child record for the Administration for Children and Families, which will then have a child record for the Administration of Native Americans.

With JSON-formatted results, this call would be made with this URL:  http://www.usa.gov/api/USAGovAPI/contacts.json/contact/49064/tree/parent

Likewise, if you request the parent tree for the Administration for Children and Families (agency id 47994), the API will return a tree structure whose head is the U.S. Department of Health and Human Services, with a child record for the Administration for Children and Families.  However, the structure will end at that point instead of continuing down the agency hierarchy.

With JSON-formatted results, this call would be made with this URL:  http://www.usa.gov/api/USAGovAPI/contacts.json/contact/47994/tree/parent

/contact/{identifier}/tree/descendant

The descendant method will return a tree with the agency specified in the REST URL at it’s head. It will include all of the agency's sub-agencies as children. The tree will then continue in this fashion until the agencies with no children are returned.

For example, if you request the descendant tree of the Administration for Children and Families (agency id 47994), the API will return a tree structure with the record for the Administration for Children and Families at it’s head. There would then be child record for the Administration of Native Americans, since that agency is a subagency of the Administration for Children and Families.

With JSON-formatted results, this call would be made with this URL: http://www.usa.gov/api/USAGovAPI/contacts.json/contact/47994/tree/descendant

Likewise, if you request the descendant tree of the U.S. Department of Health and Human Services (agency id 49021), the API will return a tree structure with the U.S. Department of Health and Human Services record at it’s head, and have 15 child records for each of the sub-agencies.  The tree will continue in this manner until the entire U.S. Department of Health and Human Services hierarchy of agencies is exposed.

With JSON-formatted results, this call would be made with this URL: http://www.usa.gov/api/USAGovAPI/contacts.json/contact/49021/tree/descendant

/contact/{identifier}/tree/branch

The branch method returns a tree that is the combination of the trees returned by the parent method and the descendant method for the id specified in the REST URL. With this one method, the API will return every parent and every descendant of a particular agency.

/contact/{identifier}

The contact/{identifier} method will return the single directory record represented by the id specified in the REST URL. There are no children records returned when using this method.

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Sample Results For These Methods

For API methods that return a tree of directory records, the API will return an array of objects, such as:

{
  "Id": "49021",
  "URI": "http://www.usa.gov/api/USAGovAPI/contacts.json/contact/49021",
  "Language": "en",
  "Name": "U.S. Department of Health and Human Services (HHS)",
  "Source_Url": "http://www.usa.gov/directory/federal/department-of-health-and-human-services.shtml",
  "Street1": "200 Independence Avenue, S.W.",
  "City": "Washington",
  "StateTer": "DC",
  "Zip": "20201",
  "Synonym": [
    "Health and Human Services Department",
    "Department of Health and Human Services"
  ],
  "Contact_Url": [
    {
      "Url": "http://www.hhs.gov/contactus.html",
      "Description": "Contact the U.S. Department of Health and Human Services (HHS) ",
      "Language": "en"
    },
    {
      "Url": "http://www.acf.hhs.gov/acf_contact_us.html#state",
      "Description": "Child Support",
      "Language": "en"
    },
    {
      "Url": "http://www.acf.hhs.gov/programs/ofa/help",
      "Description": "Temporary Assistance for Needy Families (Welfare)",
      "Language": "en"
    },
    {
      "Url": "http://www.medicare.gov/ContactUs.asp",
      "Description": "Medicare",
      "Language": "en"
    },
    {
      "Url": "http://www.acf.hhs.gov/programs/ocs/liheap/about/contact_us.html",
      "Description": "Low Income Home Energy Assistance Program (LIHEAP)",
      "Language": "en"
    },
    {
      "Url": "https://cfo.gov/cfo-members/",
      "Description": "Employee Directory",
      "Language": "en"
    }
  ],
  "Web_Url": [
    {
      "Url": "http://www.hhs.gov/",
      "Description": "U.S. Department of Health and Human Services (HHS) ",
      "Language": "en"
    }
  ],
  "In_Person_Url": [
    {
      "Url": "http://eclkc.ohs.acf.hhs.gov/hslc/HeadStartOffices",
      "Description": "Head Start Program Locator",
      "Language": "en"
    }
  ],
  "Description": "The Department of Health and Human Services protects the health of all Americans and provides essential human services.",
  "Alt_Language": [
    {
      "Id": "50081",
      "URI": "http://www.usa.gov/api/USAGovAPI/contacts.json/contact/50081",
      "Name": "Departamento de Salud y Servicios Sociales – HHS",
      "Language": "es"
    }
  ],
  "Contact": [
    {
      "Id": "47994",
      "URI": "http://www.usa.gov/api/USAGovAPI/contacts.json/contact/47994",
      "Language": "en",
      "Name": "Administration for Children and Families (ACF)",
      "Source_Url": "http://www.usa.gov/directory/federal/administration-for-children--families.shtml",
      "Street1": "370 L'nfant Promenade, SW",
      "City": "Washington",
      "StateTer": "DC",
      "Zip": "20447",
      "Tollfree": [
        "1-888-289-8442 (Fraud Alert Hotline)"
      ],
      "Contact_Url": [
        {
          "Url": "http://www.acf.hhs.gov/programs/ana/about",
          "Description": "Contact the Administration for Children and Families (ACF) ",
          "Language": "en"
        },
        {
          "Url": "https://cfo.gov/cfo-members/",
          "Description": "Employee Directory",
          "Language": "en"
        },
        {
          "Url": "http://www.acf.hhs.gov/acf_contact_us.html#state",
          "Description": "Child Support",
          "Language": "en"
        },
        {
          "Url": "http://www.acf.hhs.gov/programs/ofa/help",
          "Description": "Temporary Assistance for Needy Families (Welfare)",
          "Language": "en"
        },
        {
          "Url": "http://www.childwelfare.gov/pubs/reslist/rl_dsp.cfm?rs_id=5&rate_chno=11-11172",
          "Description": "Report Child Abuse and Neglect",
          "Language": "en"
        },
        {
          "Url": "http://www.acf.hhs.gov/programs/ocs/liheap/about/contact_us.html",
          "Description": "Low Income Home Energy Assistance Program (LIHEAP)",
          "Language": "en"
        }
      ],
      "Web_Url": [
        {
          "Url": "http://www.acf.hhs.gov/",
          "Description": "Administration for Children and Families (ACF) ",
          "Language": "en"
        }
      ],
      "In_Person_Url": [
        {
          "Url": "http://eclkc.ohs.acf.hhs.gov/hslc/HeadStartOffices",
          "Description": "Head Start Program Locator",
          "Language": "en"
        },
        {
          "Url": "http://www.acf.hhs.gov/programs/cse/extinf.html",
          "Description": "Child Support Enforcement in Your State",
          "Language": "en"
        }
      ],
      "Description": "The ACF funds state, territory, local, and tribal organizations to provide family assistance (welfare), child support, child care, Head Start, child welfare, and other programs relating to children and families.",
      "Alt_Language": [
        {
          "Id": "50101",
          "URI": "http://www.usa.gov/api/USAGovAPI/contacts.json/contact/50101",
          "Name": "Administración de Asuntos de Niños y Familias",
          "Language": "es"
        }
      ],
      "Contact": [
        {
          "Id": "49064",
          "URI": "http://www.usa.gov/api/USAGovAPI/contacts.json/contact/49064",
          "Language": "en",
          "Name": "Administration for Native Americans",
          "Source_Url": "http://www.usa.gov/directory/federal/administration-for-native-americans.shtml",
          "Street1": "2nd Floor, West Aerospace Center",
          "Street2": "370 L'Enfant Promenade, SW",
          "City": "Washington",
          "StateTer": "DC",
          "Zip": "20447-0002",
          "Tollfree": [
            "877-922-9262"
          ],
          "Email": "anacomments@acf.hhs.gov",
          "Contact_Url": [
            {
              "Url": "http://www.acf.hhs.gov/programs/ana/about",
              "Description": "Contact the Administration for Native Americans ",
              "Language": "en"
            }
          ],
          "Web_Url": [
            {
              "Url": "http://www.acf.hhs.gov/programs/ana/",
              "Description": "Administration for Native Americans ",
              "Language": "en"
            }
          ],
          "Description": "The Administration for Native Americans promotes self-sufficiency and cultural preservation for Native Americans by providing social and economic development opportunities through financial assistance, training, and technical assistance.",
          "Alt_Language": [
            {
              "Id": "50125",
              "URI": "http://www.usa.gov/api/USAGovAPI/contacts.json/contact/50125",
              "Name": "Oficina de Asuntos Nativo Americanos",
              "Language": "es"
            }
          ]
        }
      ]
    }
  ]
}

Terms of Service

By using this data, you agree to the Terms of Service.

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The 2010 Tax Forms 1040a

2010 tax forms 1040a Publication 530 - Main Content Table of Contents What You Can and Cannot DeductHardest Hit Fund and Emergency Homeowners' Loan Programs Real Estate Taxes Sales Taxes Home Mortgage Interest Mortgage Insurance Premiums Mortgage Interest CreditFiguring the Credit BasisFiguring Your Basis Adjusted Basis Keeping Records How To Get Tax HelpLow Income Taxpayer Clinics What You Can and Cannot Deduct To deduct expenses of owning a home, you must file Form 1040, U. 2010 tax forms 1040a S. 2010 tax forms 1040a Individual Income Tax Return, and itemize your deductions on Schedule A (Form 1040). 2010 tax forms 1040a If you itemize, you cannot take the standard deduction. 2010 tax forms 1040a This section explains what expenses you can deduct as a homeowner. 2010 tax forms 1040a It also points out expenses that you cannot deduct. 2010 tax forms 1040a There are four primary discussions: real estate taxes, sales taxes, home mortgage interest, and mortgage insurance premiums. 2010 tax forms 1040a Generally, your real estate taxes, home mortgage interest, and mortgage insurance premiums are included in your house payment. 2010 tax forms 1040a Your house payment. 2010 tax forms 1040a   If you took out a mortgage (loan) to finance the purchase of your home, you probably have to make monthly house payments. 2010 tax forms 1040a Your house payment may include several costs of owning a home. 2010 tax forms 1040a The only costs you can deduct are real estate taxes actually paid to the taxing authority, interest that qualifies as home mortgage interest, and mortgage insurance premiums. 2010 tax forms 1040a These are discussed in more detail later. 2010 tax forms 1040a   Some nondeductible expenses that may be included in your house payment include: Fire or homeowner's insurance premiums, and The amount applied to reduce the principal of the mortgage. 2010 tax forms 1040a Minister's or military housing allowance. 2010 tax forms 1040a   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you still can deduct your real estate taxes and your home mortgage interest. 2010 tax forms 1040a You do not have to reduce your deductions by your nontaxable allowance. 2010 tax forms 1040a For more information see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers, and Publication 3, Armed Forces' Tax Guide. 2010 tax forms 1040a Nondeductible payments. 2010 tax forms 1040a   You cannot deduct any of the following items. 2010 tax forms 1040a Insurance (other than mortgage insurance premiums), including fire and comprehensive coverage, and title insurance. 2010 tax forms 1040a Wages you pay for domestic help. 2010 tax forms 1040a Depreciation. 2010 tax forms 1040a The cost of utilities, such as gas, electricity, or water. 2010 tax forms 1040a Most settlement costs. 2010 tax forms 1040a See Settlement or closing costs under Cost as Basis, later, for more information. 2010 tax forms 1040a Forfeited deposits, down payments, or earnest money. 2010 tax forms 1040a Hardest Hit Fund and Emergency Homeowners' Loan Programs You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. 2010 tax forms 1040a You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. 2010 tax forms 1040a You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. 2010 tax forms 1040a If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received), box 4 (mortgage insurance premiums) and box 5 (real property taxes). 2010 tax forms 1040a However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. 2010 tax forms 1040a Real Estate Taxes Most state and local governments charge an annual tax on the value of real property. 2010 tax forms 1040a This is called a real estate tax. 2010 tax forms 1040a You can deduct the tax if it is assessed uniformly at a like rate on all real property throughout the community. 2010 tax forms 1040a The proceeds must be for general community or governmental purposes and not be a payment for a special privilege granted or service rendered to you. 2010 tax forms 1040a Deductible Real Estate Taxes You can deduct real estate taxes imposed on you. 2010 tax forms 1040a You must have paid them either at settlement or closing, or to a taxing authority (either directly or through an escrow account) during the year. 2010 tax forms 1040a If you own a cooperative apartment, see Special Rules for Cooperatives , later. 2010 tax forms 1040a Where to deduct real estate taxes. 2010 tax forms 1040a   Enter the amount of your deductible real estate taxes on Schedule A (Form 1040), line 6. 2010 tax forms 1040a Real estate taxes paid at settlement or closing. 2010 tax forms 1040a   Real estate taxes are generally divided so that you and the seller each pay taxes for the part of the property tax year you owned the home. 2010 tax forms 1040a Your share of these taxes is fully deductible if you itemize your deductions. 2010 tax forms 1040a Division of real estate taxes. 2010 tax forms 1040a   For federal income tax purposes, the seller is treated as paying the property taxes up to, but not including, the date of sale. 2010 tax forms 1040a You (the buyer) are treated as paying the taxes beginning with the date of sale. 2010 tax forms 1040a This applies regardless of the lien dates under local law. 2010 tax forms 1040a Generally, this information is included on the settlement statement you get at closing. 2010 tax forms 1040a   You and the seller each are considered to have paid your own share of the taxes, even if one or the other paid the entire amount. 2010 tax forms 1040a You each can deduct your own share, if you itemize deductions, for the year the property is sold. 2010 tax forms 1040a Example. 2010 tax forms 1040a You bought your home on September 1. 2010 tax forms 1040a The property tax year (the period to which the tax relates) in your area is the calendar year. 2010 tax forms 1040a The tax for the year was $730 and was due and paid by the seller on August 15. 2010 tax forms 1040a You owned your new home during the property tax year for 122 days (September 1 to December 31, including your date of purchase). 2010 tax forms 1040a You figure your deduction for real estate taxes on your home as follows. 2010 tax forms 1040a 1. 2010 tax forms 1040a Enter the total real estate taxes for the real property tax year $730 2. 2010 tax forms 1040a Enter the number of days in the property tax year that you owned the property 122 3. 2010 tax forms 1040a Divide line 2 by 365 . 2010 tax forms 1040a 3342 4. 2010 tax forms 1040a Multiply line 1 by line 3. 2010 tax forms 1040a This is your deduction. 2010 tax forms 1040a Enter it on Schedule A (Form 1040), line 6 $244   You can deduct $244 on your return for the year if you itemize your deductions. 2010 tax forms 1040a You are considered to have paid this amount and can deduct it on your return even if, under the contract, you did not have to reimburse the seller. 2010 tax forms 1040a Delinquent taxes. 2010 tax forms 1040a   Delinquent taxes are unpaid taxes that were imposed on the seller for an earlier tax year. 2010 tax forms 1040a If you agree to pay delinquent taxes when you buy your home, you cannot deduct them. 2010 tax forms 1040a You treat them as part of the cost of your home. 2010 tax forms 1040a See Real estate taxes , later, under Basis. 2010 tax forms 1040a Escrow accounts. 2010 tax forms 1040a   Many monthly house payments include an amount placed in escrow (put in the care of a third party) for real estate taxes. 2010 tax forms 1040a You may not be able to deduct the total you pay into the escrow account. 2010 tax forms 1040a You can deduct only the real estate taxes that the lender actually paid from escrow to the taxing authority. 2010 tax forms 1040a Your real estate tax bill will show this amount. 2010 tax forms 1040a Refund or rebate of real estate taxes. 2010 tax forms 1040a   If you receive a refund or rebate of real estate taxes this year for amounts you paid this year, you must reduce your real estate tax deduction by the amount refunded to you. 2010 tax forms 1040a If the refund or rebate was for real estate taxes paid for a prior year, you may have to include some or all of the refund in your income. 2010 tax forms 1040a For more information, see Recoveries in Publication 525, Taxable and Nontaxable Income. 2010 tax forms 1040a Items You Cannot Deduct as Real Estate Taxes The following items are not deductible as real estate taxes. 2010 tax forms 1040a Charges for services. 2010 tax forms 1040a   An itemized charge for services to specific property or people is not a tax, even if the charge is paid to the taxing authority. 2010 tax forms 1040a You cannot deduct the charge as a real estate tax if it is: A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged for trash collection), or A flat fee charged for a single service provided by your local government (such as a $30 charge for mowing your lawn because it had grown higher than permitted under a local ordinance). 2010 tax forms 1040a    You must look at your real estate tax bill to decide if any nondeductible itemized charges, such as those listed above, are included in the bill. 2010 tax forms 1040a If your taxing authority (or lender) does not furnish you a copy of your real estate tax bill, ask for it. 2010 tax forms 1040a Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. 2010 tax forms 1040a Assessments for local benefits. 2010 tax forms 1040a   You cannot deduct amounts you pay for local benefits that tend to increase the value of your property. 2010 tax forms 1040a Local benefits include the construction of streets, sidewalks, or water and sewer systems. 2010 tax forms 1040a You must add these amounts to the basis of your property. 2010 tax forms 1040a   You can, however, deduct assessments (or taxes) for local benefits if they are for maintenance, repair, or interest charges related to those benefits. 2010 tax forms 1040a An example is a charge to repair an existing sidewalk and any interest included in that charge. 2010 tax forms 1040a   If only a part of the assessment is for maintenance, repair, or interest charges, you must be able to show the amount of that part to claim the deduction. 2010 tax forms 1040a If you cannot show what part of the assessment is for maintenance, repair, or interest charges, you cannot deduct any of it. 2010 tax forms 1040a   An assessment for a local benefit may be listed as an item in your real estate tax bill. 2010 tax forms 1040a If so, use the rules in this section to find how much of it, if any, you can deduct. 2010 tax forms 1040a Transfer taxes (or stamp taxes). 2010 tax forms 1040a   You cannot deduct transfer taxes and similar taxes and charges on the sale of a personal home. 2010 tax forms 1040a If you are the buyer and you pay them, include them in the cost basis of the property. 2010 tax forms 1040a If you are the seller and you pay them, they are expenses of the sale and reduce the amount realized on the sale. 2010 tax forms 1040a Homeowners association assessments. 2010 tax forms 1040a   You cannot deduct these assessments because the homeowners association, rather than a state or local government, imposes them. 2010 tax forms 1040a Special Rules for Cooperatives If you own a cooperative apartment, some special rules apply to you, though you generally receive the same tax treatment as other homeowners. 2010 tax forms 1040a As an owner of a cooperative apartment, you own shares of stock in a corporation that owns or leases housing facilities. 2010 tax forms 1040a You can deduct your share of the corporation's deductible real estate taxes if the cooperative housing corporation meets the following conditions: The corporation has only one class of stock outstanding, Each stockholder, solely because of ownership of the stock, can live in a house, apartment, or house trailer owned or leased by the corporation, No stockholder can receive any distribution out of capital, except on a partial or complete liquidation of the corporation, and At least one of the following: At least 80% of the corporation's gross income for the tax year was paid by the tenant-stockholders. 2010 tax forms 1040a For this purpose, gross income means all income received during the entire tax year, including any received before the corporation changed to cooperative ownership. 2010 tax forms 1040a At least 80% of the total square footage of the corporation's property must be available for use by the tenant-stockholders during the entire tax year. 2010 tax forms 1040a At least 90% of the expenditures paid or incurred by the corporation were used for the acquisition, construction, management, maintenance, or care of the property for the benefit of the tenant-shareholders during the entire tax year. 2010 tax forms 1040a Tenant-stockholders. 2010 tax forms 1040a   A tenant-stockholder can be any entity (such as a corporation, trust, estate, partnership, or association) as well as an individual. 2010 tax forms 1040a The tenant-stockholder does not have to live in any of the cooperative's dwelling units. 2010 tax forms 1040a The units that the tenant-stockholder has the right to occupy can be rented to others. 2010 tax forms 1040a Deductible taxes. 2010 tax forms 1040a   You figure your share of real estate taxes in the following way. 2010 tax forms 1040a Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. 2010 tax forms 1040a Multiply the corporation's deductible real estate taxes by the number you figured in (1). 2010 tax forms 1040a This is your share of the real estate taxes. 2010 tax forms 1040a   Generally, the corporation will tell you your share of its real estate tax. 2010 tax forms 1040a This is the amount you can deduct if it reasonably reflects the cost of real estate taxes for your dwelling unit. 2010 tax forms 1040a Refund of real estate taxes. 2010 tax forms 1040a   If the corporation receives a refund of real estate taxes it paid in an earlier year, it must reduce the amount of real estate taxes paid this year when it allocates the tax expense to you. 2010 tax forms 1040a Your deduction for real estate taxes the corporation paid this year is reduced by your share of the refund the corporation received. 2010 tax forms 1040a Sales Taxes Generally, you can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on Schedule A (Form 1040). 2010 tax forms 1040a Deductible sales taxes may include sales taxes paid on your home (including mobile and prefabricated), or home building materials if the tax rate was the same as the general sales tax rate. 2010 tax forms 1040a For information on figuring your deduction, see the Instructions for Schedule A (Form 1040). 2010 tax forms 1040a If you elect to deduct the sales taxes paid on your home, or home building materials, you cannot include them as part of your cost basis in the home. 2010 tax forms 1040a Home Mortgage Interest This section of the publication gives you basic information about home mortgage interest, including information on interest paid at settlement, points, and Form 1098, Mortgage Interest Statement. 2010 tax forms 1040a Most home buyers take out a mortgage (loan) to buy their home. 2010 tax forms 1040a They then make monthly payments to either the mortgage holder or someone collecting the payments for the mortgage holder. 2010 tax forms 1040a Usually, you can deduct the entire part of your payment that is for mortgage interest, if you itemize your deductions on Schedule A (Form 1040). 2010 tax forms 1040a However, your deduction may be limited if: Your total mortgage balance is more than $1 million ($500,000 if married filing separately), or You took out a mortgage for reasons other than to buy, build, or improve your home. 2010 tax forms 1040a If either of these situations applies to you, see Publication 936 for more information. 2010 tax forms 1040a Also see Publication 936 if you later refinance your mortgage or buy a second home. 2010 tax forms 1040a Refund of home mortgage interest. 2010 tax forms 1040a   If you receive a refund of home mortgage interest that you deducted in an earlier year and that reduced your tax, you generally must include the refund in income in the year you receive it. 2010 tax forms 1040a For more information, see Recoveries in Publication 525. 2010 tax forms 1040a The amount of the refund will usually be shown on the mortgage interest statement you receive from your mortgage lender. 2010 tax forms 1040a See Mortgage Interest Statement , later. 2010 tax forms 1040a Deductible Mortgage Interest To be deductible, the interest you pay must be on a loan secured by your main home or a second home. 2010 tax forms 1040a The loan can be a first or second mortgage, a home improvement loan, or a home equity loan. 2010 tax forms 1040a Prepaid interest. 2010 tax forms 1040a   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. 2010 tax forms 1040a Generally, you can deduct in each year only the interest that qualifies as home mortgage interest for that year. 2010 tax forms 1040a An exception (discussed later) applies to points. 2010 tax forms 1040a Late payment charge on mortgage payment. 2010 tax forms 1040a   You can deduct as home mortgage interest a late payment charge if it was not for a specific service in connection with your mortgage loan. 2010 tax forms 1040a Mortgage prepayment penalty. 2010 tax forms 1040a   If you pay off your home mortgage early, you may have to pay a penalty. 2010 tax forms 1040a You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. 2010 tax forms 1040a Ground rent. 2010 tax forms 1040a   In some states (such as Maryland), you may buy your home subject to a ground rent. 2010 tax forms 1040a A ground rent is an obligation you assume to pay a fixed amount per year on the property. 2010 tax forms 1040a Under this arrangement, you are leasing (rather than buying) the land on which your home is located. 2010 tax forms 1040a Redeemable ground rents. 2010 tax forms 1040a   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct the payments as mortgage interest. 2010 tax forms 1040a The ground rent is a redeemable ground rent only if all of the following are true. 2010 tax forms 1040a Your lease, including renewal periods, is for more than 15 years. 2010 tax forms 1040a You can freely assign the lease. 2010 tax forms 1040a You have a present or future right (under state or local law) to end the lease and buy the lessor's entire interest in the land by paying a specified amount. 2010 tax forms 1040a The lessor's interest in the land is primarily a security interest to protect the rental payments to which he or she is entitled. 2010 tax forms 1040a   Payments made to end the lease and buy the lessor's entire interest in the land are not redeemable ground rents. 2010 tax forms 1040a You cannot deduct them. 2010 tax forms 1040a Nonredeemable ground rents. 2010 tax forms 1040a   Payments on a nonredeemable ground rent are not mortgage interest. 2010 tax forms 1040a You can deduct them as rent only if they are a business expense or if they are for rental property. 2010 tax forms 1040a Cooperative apartment. 2010 tax forms 1040a   You can usually treat the interest on a loan you took out to buy stock in a cooperative housing corporation as home mortgage interest if you own a cooperative apartment, and the cooperative housing corporation meets the conditions described earlier under Special Rules for Cooperatives . 2010 tax forms 1040a In addition, you can treat as home mortgage interest your share of the corporation's deductible mortgage interest. 2010 tax forms 1040a Figure your share of mortgage interest the same way that is shown for figuring your share of real estate taxes in the Example under Division of real estate taxes, earlier. 2010 tax forms 1040a For more information on cooperatives, see Special Rule for Tenant-Stockholders in Cooperative Housing Corporations in Publication 936. 2010 tax forms 1040a Refund of cooperative's mortgage interest. 2010 tax forms 1040a   You must reduce your mortgage interest deduction by your share of any cash portion of a patronage dividend that the cooperative receives. 2010 tax forms 1040a The patronage dividend is a partial refund to the cooperative housing corporation of mortgage interest it paid in a prior year. 2010 tax forms 1040a   If you receive a Form 1098 from the cooperative housing corporation, the form should show only the amount you can deduct. 2010 tax forms 1040a Mortgage Interest Paid at Settlement One item that normally appears on a settlement or closing statement is home mortgage interest. 2010 tax forms 1040a You can deduct the interest that you pay at settlement if you itemize your deductions on Schedule A (Form 1040). 2010 tax forms 1040a This amount should be included in the mortgage interest statement provided by your lender. 2010 tax forms 1040a See the discussion under Mortgage Interest Statement , later. 2010 tax forms 1040a Also, if you pay interest in advance, see Prepaid interest , earlier, and Points , next. 2010 tax forms 1040a Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. 2010 tax forms 1040a Points also may be called loan origination fees, maximum loan charges, loan discount, or discount points. 2010 tax forms 1040a A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. 2010 tax forms 1040a See Points paid by the seller , later. 2010 tax forms 1040a General rule. 2010 tax forms 1040a   You cannot deduct the full amount of points in the year paid. 2010 tax forms 1040a They are prepaid interest, so you generally must deduct them over the life (term) of the mortgage. 2010 tax forms 1040a Exception. 2010 tax forms 1040a   You can deduct the full amount of points in the year paid if you meet all the following tests. 2010 tax forms 1040a Your loan is secured by your main home. 2010 tax forms 1040a (Generally, your main home is the one you live in most of the time. 2010 tax forms 1040a ) Paying points is an established business practice in the area where the loan was made. 2010 tax forms 1040a The points paid were not more than the points generally charged in that area. 2010 tax forms 1040a You use the cash method of accounting. 2010 tax forms 1040a This means you report income in the year you receive it and deduct expenses in the year you pay them. 2010 tax forms 1040a Most individuals use this method. 2010 tax forms 1040a The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. 2010 tax forms 1040a The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. 2010 tax forms 1040a The funds you provided are not required to have been applied to the points. 2010 tax forms 1040a They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. 2010 tax forms 1040a You cannot have borrowed these funds. 2010 tax forms 1040a You use your loan to buy or build your main home. 2010 tax forms 1040a The points were computed as a percentage of the principal amount of the mortgage. 2010 tax forms 1040a The amount is clearly shown on the settlement statement (such as the Uniform Settlement Statement, Form HUD-1) as points charged for the mortgage. 2010 tax forms 1040a The points may be shown as paid from either your funds or the seller's. 2010 tax forms 1040a Note. 2010 tax forms 1040a If you meet all of the tests listed above and you itemize your deductions in the year you get the loan, you can either deduct the full amount of points in the year paid or deduct them over the life of the loan, beginning in the year you get the loan. 2010 tax forms 1040a If you do not itemize your deductions in the year you get the loan, you can spread the points over the life of the loan and deduct the appropriate amount in each future year, if any, when you do itemize your deductions. 2010 tax forms 1040a Home improvement loan. 2010 tax forms 1040a   You can also fully deduct in the year paid points paid on a loan to improve your main home, if you meet the first six tests listed earlier. 2010 tax forms 1040a Refinanced loan. 2010 tax forms 1040a   If you use part of the refinanced mortgage proceeds to improve your main home and you meet the first six tests listed earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. 2010 tax forms 1040a You can deduct the rest of the points over the life of the loan. 2010 tax forms 1040a Points not fully deductible in year paid. 2010 tax forms 1040a    If you do not qualify under the exception to deduct the full amount of points in the year paid (or choose not to do so), see Points in Publication 936 for the rules on when and how much you can deduct. 2010 tax forms 1040a Figure A. 2010 tax forms 1040a   You can use Figure A, next, as a quick guide to see whether your points are fully deductible in the year paid. 2010 tax forms 1040a    Please click here for the text description of the image. 2010 tax forms 1040a Figure A. 2010 tax forms 1040a Are my points fully deductible this year? Amounts charged for services. 2010 tax forms 1040a   Amounts charged by the lender for specific services connected to the loan are not interest. 2010 tax forms 1040a Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. 2010 tax forms 1040a You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. 2010 tax forms 1040a For information about the tax treatment of these amounts and other settlement fees and closing costs, see Basis , later. 2010 tax forms 1040a Points paid by the seller. 2010 tax forms 1040a   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. 2010 tax forms 1040a Treatment by seller. 2010 tax forms 1040a   The seller cannot deduct these fees as interest. 2010 tax forms 1040a However, they are a selling expense that reduces the seller's amount realized. 2010 tax forms 1040a See Publication 523 for more information. 2010 tax forms 1040a Treatment by buyer. 2010 tax forms 1040a   The buyer treats seller-paid points as if he or she had paid them. 2010 tax forms 1040a If all the tests listed earlier under Exception are met, the buyer can deduct the points in the year paid. 2010 tax forms 1040a If any of those tests are not met, the buyer must deduct the points over the life of the loan. 2010 tax forms 1040a   The buyer must also reduce the basis of the home by the amount of the seller-paid points. 2010 tax forms 1040a For more information about the basis of your home, see Basis , later. 2010 tax forms 1040a Funds provided are less than points. 2010 tax forms 1040a   If you meet all the tests listed earlier under Exception except that the funds you provided were less than the points charged to you (test 6), you can deduct the points in the year paid up to the amount of funds you provided. 2010 tax forms 1040a In addition, you can deduct any points paid by the seller. 2010 tax forms 1040a Example 1. 2010 tax forms 1040a When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). 2010 tax forms 1040a You meet all the tests for deducting points in the year paid (see Exception , earlier), except the only funds you provided were a $750 down payment. 2010 tax forms 1040a Of the $1,000 you were charged for points, you can deduct $750 in the year paid. 2010 tax forms 1040a You spread the remaining $250 over the life of the mortgage. 2010 tax forms 1040a Example 2. 2010 tax forms 1040a The facts are the same as in Example 1 , except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. 2010 tax forms 1040a In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). 2010 tax forms 1040a You spread the remaining $250 over the life of the mortgage. 2010 tax forms 1040a You must reduce the basis of your home by the $1,000 paid by the seller. 2010 tax forms 1040a Excess points. 2010 tax forms 1040a   If you meet all the tests under Exception , earlier, except that the points paid were more than are generally charged in your area (test 3), you can deduct in the year paid only the points that are generally charged. 2010 tax forms 1040a You must spread any additional points over the life of the mortgage. 2010 tax forms 1040a Mortgage ending early. 2010 tax forms 1040a   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. 2010 tax forms 1040a A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. 2010 tax forms 1040a Example. 2010 tax forms 1040a Dan paid $3,000 in points in 2006 that he had to spread out over the 15-year life of the mortgage. 2010 tax forms 1040a He had deducted $1,400 of these points through 2012. 2010 tax forms 1040a Dan prepaid his mortgage in full in 2013. 2010 tax forms 1040a He can deduct the remaining $1,600 of points in 2013. 2010 tax forms 1040a Exception. 2010 tax forms 1040a   If you refinance the mortgage with the same lender, you cannot deduct any remaining points for the year. 2010 tax forms 1040a Instead, deduct them over the term of the new loan. 2010 tax forms 1040a Form 1098. 2010 tax forms 1040a   The mortgage interest statement you receive should show not only the total interest paid during the year, but also your deductible points paid during the year. 2010 tax forms 1040a See Mortgage Interest Statement , later. 2010 tax forms 1040a Where To Deduct Home Mortgage Interest Enter on Schedule A (Form 1040), line 10, the home mortgage interest and points reported to you on Form 1098 (discussed next). 2010 tax forms 1040a If you did not receive a Form 1098, enter your deductible interest on line 11, and any deductible points on line 12. 2010 tax forms 1040a See Table 1 below for a summary of where to deduct home mortgage interest and real estate taxes. 2010 tax forms 1040a If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and social security number (SSN) or employer identification number (EIN) on the dotted lines next to line 11. 2010 tax forms 1040a The seller must give you this number and you must give the seller your SSN. 2010 tax forms 1040a Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. 2010 tax forms 1040a Failure to meet either of these requirements may result in a $50 penalty for each failure. 2010 tax forms 1040a Table 1. 2010 tax forms 1040a Where To Deduct Interest and Taxes Paid on Your Home See the text for information on what expenses are eligible. 2010 tax forms 1040a IF you are eligible to deduct . 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a THEN report the amount  on Schedule A (Form 1040) . 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a real estate taxes line 6. 2010 tax forms 1040a home mortgage interest and points reported on Form 1098 line 10. 2010 tax forms 1040a home mortgage interest not reported on  Form 1098 line 11. 2010 tax forms 1040a points not reported on Form 1098 line 12. 2010 tax forms 1040a qualified mortgage insurance premiums line 13. 2010 tax forms 1040a Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage to a mortgage holder in the course of that holder's trade or business, you should receive a Form 1098 or similar statement from the mortgage holder. 2010 tax forms 1040a The statement will show the total interest paid on your mortgage during the year. 2010 tax forms 1040a If you bought a main home during the year, it also will show the deductible points you paid and any points you can deduct that were paid by the person who sold you your home. 2010 tax forms 1040a See Points , earlier. 2010 tax forms 1040a The interest you paid at settlement should be included on the statement. 2010 tax forms 1040a If it is not, add the interest from the settlement sheet that qualifies as home mortgage interest to the total shown on Form 1098 or similar statement. 2010 tax forms 1040a Put the total on Schedule A (Form 1040), line 10, and attach a statement to your return explaining the difference. 2010 tax forms 1040a Write “See attached” to the right of line 10. 2010 tax forms 1040a A mortgage holder can be a financial institution, a governmental unit, or a cooperative housing corporation. 2010 tax forms 1040a If a statement comes from a cooperative housing corporation, it generally will show your share of interest. 2010 tax forms 1040a Your mortgage interest statement for 2013 should be provided or sent to you by January 31, 2014. 2010 tax forms 1040a If it is mailed, you should allow adequate time to receive it before contacting the mortgage holder. 2010 tax forms 1040a A copy of this form will be sent to the IRS also. 2010 tax forms 1040a Example. 2010 tax forms 1040a You bought a new home on May 3. 2010 tax forms 1040a You paid no points on the purchase. 2010 tax forms 1040a During the year, you made mortgage payments which included $4,480 deductible interest on your new home. 2010 tax forms 1040a The settlement sheet for the purchase of the home included interest of $620 for 29 days in May. 2010 tax forms 1040a The mortgage statement you receive from the lender includes total interest of $5,100 ($4,480 + $620). 2010 tax forms 1040a You can deduct the $5,100 if you itemize your deductions. 2010 tax forms 1040a Refund of overpaid interest. 2010 tax forms 1040a   If you receive a refund of mortgage interest you overpaid in a prior year, you generally will receive a Form 1098 showing the refund in box 3. 2010 tax forms 1040a Generally, you must include the refund in income in the year you receive it. 2010 tax forms 1040a See Refund of home mortgage interest , earlier, under Home Mortgage Interest. 2010 tax forms 1040a More than one borrower. 2010 tax forms 1040a   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. 2010 tax forms 1040a Show how much of the interest each of you paid, and give the name and address of the person who received the form. 2010 tax forms 1040a Deduct your share of the interest on Schedule A (Form 1040), line 11, and write “See attached” to the right of that line. 2010 tax forms 1040a Mortgage Insurance Premiums You may be able to take an itemized deduction on Schedule A (Form 1040), line 13, for premiums you pay or accrue during 2013 for qualified mortgage insurance in connection with home acquisition debt on your qualified home. 2010 tax forms 1040a Mortgage insurance premiums you paid or accrued on any mortgage insurance contract issued before January 1, 2007, are not deductible as an itemized deduction. 2010 tax forms 1040a Qualified Mortgage Insurance Qualified mortgage insurance is mortgage insurance provided by the Veterans Administration, the Federal Housing Administration, or the Rural Housing Administration, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). 2010 tax forms 1040a Prepaid mortgage insurance premiums. 2010 tax forms 1040a   If you paid premiums that are allocable to periods after 2013, you must allocate them over the shorter of: The stated term of the mortgage, or 84 months, beginning with the month the insurance was obtained. 2010 tax forms 1040a The premiums are treated as paid in the year to which they were allocated. 2010 tax forms 1040a If the mortgage is satisfied before its term, no deduction is allowed for the unamortized balance. 2010 tax forms 1040a See Publication 936 for details. 2010 tax forms 1040a Exception for certain mortgage insurance. 2010 tax forms 1040a   The allocation rules, explained above, do not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or Rural Housing Service. 2010 tax forms 1040a Home Acquisition Debt Home acquisition debt is a mortgage you took out after October 13, 1987, to buy, build, or substantially improve a qualified home. 2010 tax forms 1040a It also must be secured by that home. 2010 tax forms 1040a If the amount of your mortgage is more than the cost of the home plus the cost of any substantial improvements, only the debt that is not more than the cost of the home plus improvements qualifies as home acquisition debt. 2010 tax forms 1040a Home acquisition debt limit. 2010 tax forms 1040a   The total amount you can treat as home acquisition debt at any time on your home cannot be more than $1 million ($500,000 if married filing separately). 2010 tax forms 1040a Discharges of qualified principal residence indebtedness. 2010 tax forms 1040a   You can exclude from gross income any discharges of qualified principal residence indebtedness made after 2006 and before 2014. 2010 tax forms 1040a You must reduce the basis of your principal residence (but not below zero) by the amount you exclude. 2010 tax forms 1040a Principal residence. 2010 tax forms 1040a   Your principal residence is the home where you ordinarily live most of the time. 2010 tax forms 1040a You can have only one principal residence at any one time. 2010 tax forms 1040a Qualified principal residence indebtedness. 2010 tax forms 1040a   This is a mortgage that you took out to buy, build, or substantially improve your principal residence and that is secured by that residence. 2010 tax forms 1040a If the amount of your original mortgage is more than the cost of your principal residence plus the cost of substantial improvements, qualified principal residence indebtedness cannot be more than the cost of your principal residence plus improvements. 2010 tax forms 1040a   Any debt secured by your principal residence that you use to refinance qualified principal residence indebtedness is qualified principal residence indebtedness up to the amount of your old mortgage principal just before the refinancing. 2010 tax forms 1040a Additional debt incurred to substantially improve your principal residence is also qualified principal residence indebtedness. 2010 tax forms 1040a Amount you can exclude. 2010 tax forms 1040a   You can only exclude debt discharged after 2006 and before 2014. 2010 tax forms 1040a The most you can exclude is $2 million ($1 million if married filing separately). 2010 tax forms 1040a You cannot exclude any amount that was discharged because of services performed for the lender or on account of any other factor not directly related either to a decline in the value of your residence or to your financial condition. 2010 tax forms 1040a Ordering rule. 2010 tax forms 1040a   If only a part of a loan is qualified principal residence indebtedness, you can exclude only the amount of the discharge that is more than the amount of the loan (immediately before the discharge) that is not qualified principal residence indebtedness. 2010 tax forms 1040a Qualified Home This means your main home or your second home. 2010 tax forms 1040a A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities. 2010 tax forms 1040a Main home. 2010 tax forms 1040a   You can have only one main home at any one time. 2010 tax forms 1040a This is the home where you ordinarily live most of the time. 2010 tax forms 1040a Second home and other special situations. 2010 tax forms 1040a   If you have a second home, use part of your home for other than residential living (such as a home office), rent out part of your home, or are having your home constructed, see Qualified Home in Publication 936. 2010 tax forms 1040a Limit on Deduction If your adjusted gross income (AGI) on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are deductible is reduced and may be eliminated. 2010 tax forms 1040a See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. 2010 tax forms 1040a If your AGI is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. 2010 tax forms 1040a Form 1098. 2010 tax forms 1040a   The amount of mortgage insurance premiums you paid during 2013 should be reported in box 4. 2010 tax forms 1040a See Form 1098, Mortgage Interest Statement in Publication 936. 2010 tax forms 1040a Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals afford home ownership. 2010 tax forms 1040a If you qualify, you can claim the credit on Form 8396 each year for part of the home mortgage interest you pay. 2010 tax forms 1040a Who qualifies. 2010 tax forms 1040a   You may be eligible for the credit if you were issued a qualified Mortgage Credit Certificate (MCC) from your state or local government. 2010 tax forms 1040a Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. 2010 tax forms 1040a The MCC will show the certificate credit rate you will use to figure your credit. 2010 tax forms 1040a It also will show the certified indebtedness amount. 2010 tax forms 1040a Only the interest on that amount qualifies for the credit. 2010 tax forms 1040a See Figuring the Credit , later. 2010 tax forms 1040a You must contact the appropriate government agency about getting an MCC before you get a mortgage and buy your home. 2010 tax forms 1040a Contact your state or local housing finance agency for information about the availability of MCCs in your area. 2010 tax forms 1040a How to claim the credit. 2010 tax forms 1040a   To claim the credit, complete Form 8396 and attach it to your Form 1040 or Form 1040NR, U. 2010 tax forms 1040a S. 2010 tax forms 1040a Nonresident Alien Income Tax Return. 2010 tax forms 1040a Include the credit in your total for Form 1040, line 53, or Form 1040NR, line 50; be sure to check box c and write “Form 8396” on that line. 2010 tax forms 1040a Reducing your home mortgage interest deduction. 2010 tax forms 1040a   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. 2010 tax forms 1040a You must do this even if part of that amount is to be carried forward to 2014. 2010 tax forms 1040a Selling your home. 2010 tax forms 1040a   If you purchase a home after 1990 using an MCC, and you sell that home within 9 years, you may have to recapture (repay) all or part of the benefit you received from the MCC program. 2010 tax forms 1040a For additional information, see Recapturing (Paying Back) a Federal Mortgage Subsidy, in Publication 523. 2010 tax forms 1040a Figuring the Credit Figure your credit on Form 8396. 2010 tax forms 1040a Mortgage not more than certified indebtedness. 2010 tax forms 1040a   If your mortgage loan amount is equal to (or smaller than) the certified indebtedness amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. 2010 tax forms 1040a Mortgage more than certified indebtedness. 2010 tax forms 1040a   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. 2010 tax forms 1040a To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. 2010 tax forms 1040a Certified indebtedness amount on your MCC Original amount of your mortgage   The fraction will not change as long as you are entitled to take the mortgage interest credit. 2010 tax forms 1040a Example. 2010 tax forms 1040a Emily bought a home this year. 2010 tax forms 1040a Her mortgage loan is $125,000. 2010 tax forms 1040a The certified indebtedness amount on her MCC is $100,000. 2010 tax forms 1040a She paid $7,500 interest this year. 2010 tax forms 1040a Emily figures the interest to enter on Form 8396, line 1, as follows:   $100,000 = 80% (. 2010 tax forms 1040a 80)       $125,000       $7,500 x . 2010 tax forms 1040a 80 = $6,000   Emily enters $6,000 on Form 8396, line 1. 2010 tax forms 1040a In each later year, she will figure her credit using only 80% of the interest she pays for that year. 2010 tax forms 1040a Limits Two limits may apply to your credit. 2010 tax forms 1040a A limit based on the credit rate, and A limit based on your tax. 2010 tax forms 1040a Limit based on credit rate. 2010 tax forms 1040a   If the certificate credit rate is higher than 20%, the credit you are allowed cannot be more than $2,000. 2010 tax forms 1040a Limit based on tax. 2010 tax forms 1040a   After applying the limit based on the credit rate, your credit generally cannot be more than your tax liability. 2010 tax forms 1040a See the Credit Limit Worksheet in the Form 8396 instructions to calculate the limit based on tax. 2010 tax forms 1040a Dividing the Credit If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, the credit must be divided based on the interest held by each person. 2010 tax forms 1040a Example. 2010 tax forms 1040a John and his brother, George, were issued an MCC. 2010 tax forms 1040a They used it to get a mortgage on their main home. 2010 tax forms 1040a John has a 60% ownership interest in the home, and George has a 40% ownership interest in the home. 2010 tax forms 1040a John paid $5,400 mortgage interest this year and George paid $3,600. 2010 tax forms 1040a The MCC shows a credit rate of 25% and a certified indebtedness amount of $130,000. 2010 tax forms 1040a The loan amount (mortgage) on their home is $120,000. 2010 tax forms 1040a The credit is limited to $2,000 because the credit rate is more than 20%. 2010 tax forms 1040a John figures the credit by multiplying the mortgage interest he paid this year ($5,400) by the certificate credit rate (25%) for a total of $1,350. 2010 tax forms 1040a His credit is limited to $1,200 ($2,000 × 60%). 2010 tax forms 1040a George figures the credit by multiplying the mortgage interest he paid this year ($3,600) by the certificate credit rate (25%) for a total of $900. 2010 tax forms 1040a His credit is limited to $800 ($2,000 × 40%). 2010 tax forms 1040a Carryforward If your allowable credit is reduced because of the limit based on your tax, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. 2010 tax forms 1040a Example. 2010 tax forms 1040a You receive a mortgage credit certificate from State X. 2010 tax forms 1040a This year, your regular tax liability is $1,100, you owe no alternative minimum tax, and your mortgage interest credit is $1,700. 2010 tax forms 1040a You claim no other credits. 2010 tax forms 1040a Your unused mortgage interest credit for this year is $600 ($1,700 − $1,100). 2010 tax forms 1040a You can carry forward this amount to the next 3 years or until used, whichever comes first. 2010 tax forms 1040a Credit rate more than 20%. 2010 tax forms 1040a   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). 2010 tax forms 1040a Example. 2010 tax forms 1040a In the earlier example under Dividing the Credit , John and George used the entire $2,000 credit. 2010 tax forms 1040a The excess   John $1,350 − $1,200 = $150     George $900 − $800 = $100   $150 for John ($1,350 − $1,200) and $100 for George ($900 − $800) cannot be carried forward to future years, despite the respective tax liabilities for John and George. 2010 tax forms 1040a Refinancing If you refinance your original mortgage loan on which you had been given an MCC, you must get a new MCC to be able to claim the credit on the new loan. 2010 tax forms 1040a The amount of credit you can claim on the new loan may change. 2010 tax forms 1040a Table 2 below summarizes how to figure your credit if you refinance your original mortgage loan. 2010 tax forms 1040a Table 2. 2010 tax forms 1040a Effect of Refinancing on Your Credit IF you get a new (reissued) MCC and the amount of your new mortgage is . 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a THEN the interest you claim on Form 8396, line 1, is* . 2010 tax forms 1040a . 2010 tax forms 1040a . 2010 tax forms 1040a smaller than or equal to the certified indebtedness amount on the new MCC all the interest paid during the year on your new mortgage. 2010 tax forms 1040a larger than the certified indebtedness amount on the new MCC interest paid during the year on your new mortgage multiplied by the following fraction. 2010 tax forms 1040a         certified indebtedness  amount on your new MCC       original amount of your  mortgage   *The credit using the new MCC cannot be more than the credit using the old MCC. 2010 tax forms 1040a  See New MCC cannot increase your credit above. 2010 tax forms 1040a An issuer may reissue an MCC after you refinance your mortgage. 2010 tax forms 1040a If you did not get a new MCC, you may want to contact the state or local housing finance agency that issued your original MCC for information about whether you can get a reissued MCC. 2010 tax forms 1040a Year of refinancing. 2010 tax forms 1040a   In the year of refinancing, add the applicable amount of interest paid on the old mortgage and the applicable amount of interest paid on the new mortgage, and enter the total on Form 8396, line 1. 2010 tax forms 1040a   If your new MCC has a credit rate different from the rate on the old MCC, you must attach a statement to Form 8396. 2010 tax forms 1040a The statement must show the calculation for lines 1, 2, and 3 for the part of the year when the old MCC was in effect. 2010 tax forms 1040a It must show a separate calculation for the part of the year when the new MCC was in effect. 2010 tax forms 1040a Combine the amounts from both calculations for line 3, enter the total on line 3 of the form, and write “See attached” on the dotted line next to line 2. 2010 tax forms 1040a New MCC cannot increase your credit. 2010 tax forms 1040a   The credit that you claim with your new MCC cannot be more than the credit that you could have claimed with your old MCC. 2010 tax forms 1040a   In most cases, the agency that issues your new MCC will make sure that it does not increase your credit. 2010 tax forms 1040a However, if either your old loan or your new loan has a variable (adjustable) interest rate, you will need to check this yourself. 2010 tax forms 1040a In that case, you will need to know the amount of the credit you could have claimed using the old MCC. 2010 tax forms 1040a   There are two methods for figuring the credit you could have claimed. 2010 tax forms 1040a Under one method, you figure the actual credit that would have been allowed. 2010 tax forms 1040a This means you use the credit rate on the old MCC and the interest you would have paid on the old loan. 2010 tax forms 1040a   If your old loan was a variable rate mortgage, you can use another method to determine the credit that you could have claimed. 2010 tax forms 1040a Under this method, you figure the credit using a payment schedule of a hypothetical self-amortizing mortgage with level payments projected to the final maturity date of the old mortgage. 2010 tax forms 1040a The interest rate of the hypothetical mortgage is the annual percentage rate (APR) of the new mortgage for purposes of the Federal Truth in Lending Act. 2010 tax forms 1040a The principal of the hypothetical mortgage is the remaining outstanding balance of the certified mortgage indebtedness shown on the old MCC. 2010 tax forms 1040a    You must choose one method and use it consistently beginning with the first tax year for which you claim the credit based on the new MCC. 2010 tax forms 1040a    As part of your tax records, you should keep your old MCC and the schedule of payments for your old mortgage. 2010 tax forms 1040a Basis Basis is your starting point for figuring a gain or loss if you later sell your home, or for figuring depreciation if you later use part of your home for business purposes or for rent. 2010 tax forms 1040a While you own your home, you may add certain items to your basis. 2010 tax forms 1040a You may subtract certain other items from your basis. 2010 tax forms 1040a These items are called adjustments to basis and are explained later under Adjusted Basis . 2010 tax forms 1040a It is important that you understand these terms when you first acquire your home because you must keep track of your basis and adjusted basis during the period you own your home. 2010 tax forms 1040a You also must keep records of the events that affect basis or adjusted basis. 2010 tax forms 1040a See Keeping Records , below. 2010 tax forms 1040a Figuring Your Basis How you figure your basis depends on how you acquire your home. 2010 tax forms 1040a If you buy or build your home, your cost is your basis. 2010 tax forms 1040a If you receive your home as a gift, your basis is usually the same as the adjusted basis of the person who gave you the property. 2010 tax forms 1040a If you inherit your home from a decedent, different rules apply depending on the date of the decedent's death. 2010 tax forms 1040a Each of these topics is discussed later. 2010 tax forms 1040a Property transferred from a spouse. 2010 tax forms 1040a   If your home is transferred to you from your spouse, or from your former spouse as a result of a divorce, your basis is the same as your spouse's (or former spouse's) adjusted basis just before the transfer. 2010 tax forms 1040a Publication 504, Divorced or Separated Individuals, fully discusses transfers between spouses. 2010 tax forms 1040a Cost as Basis The cost of your home, whether you purchased it or constructed it, is the amount you paid for it, including any debt you assumed. 2010 tax forms 1040a The cost of your home includes most settlement or closing costs you paid when you bought the home. 2010 tax forms 1040a If you built your home, your cost includes most closing costs paid when you bought the land or settled on your mortgage. 2010 tax forms 1040a See Settlement or closing costs , later. 2010 tax forms 1040a If you elect to deduct the sales taxes on the purchase or construction of your home as an itemized deduction on Schedule A (Form 1040), you cannot include the sales taxes as part of your cost basis in the home. 2010 tax forms 1040a Purchase. 2010 tax forms 1040a   The basis of a home you bought is the amount you paid for it. 2010 tax forms 1040a This usually includes your down payment and any debt you assumed. 2010 tax forms 1040a The basis of a cooperative apartment is the amount you paid for your shares in the corporation that owns or controls the property. 2010 tax forms 1040a This amount includes any purchase commissions or other costs of acquiring the shares. 2010 tax forms 1040a Construction. 2010 tax forms 1040a   If you contracted to have your home built on land that you own, your basis in the home is your basis in the land plus the amount you paid to have the home built. 2010 tax forms 1040a This includes the cost of labor and materials, the amount you paid the contractor, any architect's fees, building permit charges, utility meter and connection charges, and legal fees that are directly connected with building your home. 2010 tax forms 1040a If you built all or part of your home yourself, your basis is the total amount it cost you to build it. 2010 tax forms 1040a You cannot include in basis the value of your own labor or any other labor for which you did not pay. 2010 tax forms 1040a Real estate taxes. 2010 tax forms 1040a   Real estate taxes are usually divided so that you and the seller each pay taxes for the part of the property tax year that each owned the home. 2010 tax forms 1040a See the earlier discussion of Real estate taxes paid at settlement or closing , under Real Estate Taxes, earlier, to figure the real estate taxes you paid or are considered to have paid. 2010 tax forms 1040a   If you pay any part of the seller's share of the real estate taxes (the taxes up to the date of sale), and the seller did not reimburse you, add those taxes to your basis in the home. 2010 tax forms 1040a You cannot deduct them as taxes paid. 2010 tax forms 1040a   If the seller paid any of your share of the real estate taxes (the taxes beginning with the date of sale), you can still deduct those taxes. 2010 tax forms 1040a Do not include those taxes in your basis. 2010 tax forms 1040a If you did not reimburse the seller, you must reduce your basis by the amount of those taxes. 2010 tax forms 1040a Example 1. 2010 tax forms 1040a You bought your home on September 1. 2010 tax forms 1040a The property tax year in your area is the calendar year, and the tax is due on August 15. 2010 tax forms 1040a The real estate taxes on the home you bought were $1,275 for the year and had been paid by the seller on August 15. 2010 tax forms 1040a You did not reimburse the seller for your share of the real estate taxes from September 1 through December 31. 2010 tax forms 1040a You must reduce the basis of your home by the $426 [(122 ÷ 365) × $1,275] the seller paid for you. 2010 tax forms 1040a You can deduct your $426 share of real estate taxes on your return for the year you purchased your home. 2010 tax forms 1040a Example 2. 2010 tax forms 1040a You bought your home on May 3, 2013. 2010 tax forms 1040a The property tax year in your area is the calendar year. 2010 tax forms 1040a The taxes for the previous year are assessed on January 2 and are due on May 31 and November 30. 2010 tax forms 1040a Under state law, the taxes become a lien on May 31. 2010 tax forms 1040a You agreed to pay all taxes due after the date of sale. 2010 tax forms 1040a The taxes due in 2013 for 2012 were $1,375. 2010 tax forms 1040a The taxes due in 2014 for 2013 will be $1,425. 2010 tax forms 1040a You cannot deduct any of the taxes paid in 2013 because they relate to the 2012 property tax year and you did not own the home until 2013. 2010 tax forms 1040a Instead, you add the $1,375 to the cost (basis) of your home. 2010 tax forms 1040a You owned the home in 2013 for 243 days (May 3 to December 31), so you can take a tax deduction on your 2014 return of $949 [(243 ÷ 365) × $1,425] paid in 2014 for 2013. 2010 tax forms 1040a You add the remaining $476 ($1,425 − $949) of taxes paid in 2014 to the cost (basis) of your home. 2010 tax forms 1040a Settlement or closing costs. 2010 tax forms 1040a   If you bought your home, you probably paid settlement or closing costs in addition to the contract price. 2010 tax forms 1040a These costs are divided between you and the seller according to the sales contract, local custom, or understanding of the parties. 2010 tax forms 1040a If you built your home, you probably paid these costs when you bought the land or settled on your mortgage. 2010 tax forms 1040a   The only settlement or closing costs you can deduct are home mortgage interest and certain real estate taxes. 2010 tax forms 1040a You deduct them in the year you buy your home if you itemize your deductions. 2010 tax forms 1040a You can add certain other settlement or closing costs to the basis of your home. 2010 tax forms 1040a Items added to basis. 2010 tax forms 1040a   You can include in your basis the settlement fees and closing costs you paid for buying your home. 2010 tax forms 1040a A fee is for buying the home if you would have had to pay it even if you paid cash for the home. 2010 tax forms 1040a   The following are some of the settlement fees and closing costs that you can include in the original basis of your home. 2010 tax forms 1040a Abstract fees (abstract of title fees). 2010 tax forms 1040a Charges for installing utility services. 2010 tax forms 1040a Legal fees (including fees for the title search and preparation of the sales contract and deed). 2010 tax forms 1040a Recording fees. 2010 tax forms 1040a Surveys. 2010 tax forms 1040a Transfer or stamp taxes. 2010 tax forms 1040a Owner's title insurance. 2010 tax forms 1040a Any amount the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions. 2010 tax forms 1040a   If the seller actually paid for any item for which you are liable and for which you can take a deduction (such as your share of the real estate taxes for the year of sale), you must reduce your basis by that amount unless you are charged for it in the settlement. 2010 tax forms 1040a Items not added to basis and not deductible. 2010 tax forms 1040a   Here are some settlement and closing costs that you cannot deduct or add to your basis. 2010 tax forms 1040a Fire insurance premiums. 2010 tax forms 1040a Charges for using utilities or other services related to occupancy of the home before closing. 2010 tax forms 1040a Rent for occupying the home before closing. 2010 tax forms 1040a Charges connected with getting or refinancing a mortgage loan, such as: Loan assumption fees, Cost of a credit report, and Fee for an appraisal required by a lender. 2010 tax forms 1040a Points paid by seller. 2010 tax forms 1040a   If you bought your home after April 3, 1994, you must reduce your basis by any points paid for your mortgage by the person who sold you your home. 2010 tax forms 1040a   If you bought your home after 1990 but before April 4, 1994, you must reduce your basis by seller-paid points only if you deducted them. 2010 tax forms 1040a See Points , earlier, for the rules on deducting points. 2010 tax forms 1040a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined later) to the donor just before it was given to you, its fair market value (FMV) at the time it was given to you, and any gift tax paid on it. 2010 tax forms 1040a Fair market value. 2010 tax forms 1040a   Fair market value (FMV) is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and who both have a reasonable knowledge of all the necessary facts. 2010 tax forms 1040a Donor's adjusted basis is more than FMV. 2010 tax forms 1040a   If someone gave you your home and the donor's adjusted basis, when it was given to you, was more than the FMV, your basis at the time of receipt is the same as the donor's adjusted basis. 2010 tax forms 1040a Disposition basis. 2010 tax forms 1040a   If the donor's adjusted basis at the time of the gift is more than the FMV, your basis (plus or minus any required adjustments, see Adjusted Basis , later) when you dispose of the property will depend on whether you have a gain or a loss. 2010 tax forms 1040a Your basis for figuring a gain is the same as the donor's adjusted basis. 2010 tax forms 1040a Your basis for figuring a loss is the FMV when you received the gift. 2010 tax forms 1040a If you use the donor's adjusted basis to figure a gain and it results in a loss, then you must use the FMV (at the time of the gift) to refigure the loss. 2010 tax forms 1040a However, if using the FMV results in a gain, then you neither have a gain nor a loss. 2010 tax forms 1040a Example 1. 2010 tax forms 1040a Andrew received a house as a gift from Ishmael (the donor). 2010 tax forms 1040a At the time of the gift, the home had an FMV of $80,000. 2010 tax forms 1040a Ishmael's adjusted basis was $100,000. 2010 tax forms 1040a After he received the house, no events occurred to increase or decrease the basis. 2010 tax forms 1040a If Andrew sells the house for $120,000, he will have a $20,000 gain because he must use the donor's adjusted basis ($100,000) at the time of the gift as his basis to figure the gain. 2010 tax forms 1040a Example 2. 2010 tax forms 1040a Same facts as Example 1 , except this time Andrew sells the house for $70,000. 2010 tax forms 1040a He will have a loss of $10,000 because he must use the FMV ($80,000) at the time of the gift as his basis to figure the loss. 2010 tax forms 1040a Example 3. 2010 tax forms 1040a Same facts as Example 1 , except this time Andrew sells the house for $90,000. 2010 tax forms 1040a Initially, he figures the gain using Ishmael's adjusted basis ($100,000), which results in a loss of $10,000. 2010 tax forms 1040a Since it is a loss, Andrew must now recalculate the loss using the FMV ($80,000), which results in a gain of $10,000. 2010 tax forms 1040a So in this situation, Andrew will neither have a gain nor a loss. 2010 tax forms 1040a Donor's adjusted basis equal to or less than the FMV. 2010 tax forms 1040a   If someone gave you your home after 1976 and the donor's adjusted basis, when it was given to you, was equal to or less than the FMV, your basis at the time of receipt is the same as the donor's adjusted basis, plus the part of any federal gift tax paid that is due to the net increase in value of the home. 2010 tax forms 1040a Part of federal gift tax due to net increase in value. 2010 tax forms 1040a   Figure the part of the federal gift tax paid that is due to the net increase in value of the home by multiplying the total federal gift tax paid by a fraction. 2010 tax forms 1040a The numerator (top part) of the fraction is the net increase in the value of the home, and the denominator (bottom part) is the value of the home for gift tax purposes after reduction for any annual exclusion and marital or charitable deduction that applies to the gift. 2010 tax forms 1040a The net increase in the value of the home is its FMV minus the adjusted basis of the donor. 2010 tax forms 1040a Publication 551 gives more information, including examples, on figuring your basis when you receive property as a gift. 2010 tax forms 1040a Inheritance Your basis in a home you inherited is generally the fair market value of the home on the date of the decedent's death or on the alternative valuation date if the personal representative for the estate chooses to use alternative valuation. 2010 tax forms 1040a If an estate tax return was filed, your basis is generally the value of the home listed on the estate tax return. 2010 tax forms 1040a If an estate tax return was not filed, your basis is the appraised value of the home at the decedent's date of death for state inheritance or transmission taxes. 2010 tax forms 1040a Publication 551 and Publication 559, Survivors, Executors, and Administrators, have more information on the basis of inherited property. 2010 tax forms 1040a If you inherited your home from someone who died in 2010, and the executor of the decedent's estate made the election to file Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. 2010 tax forms 1040a Adjusted Basis While you own your home, various events may take place that can change the original basis of your home. 2010 tax forms 1040a These events can increase or decrease your original basis. 2010 tax forms 1040a The result is called adjusted basis. 2010 tax forms 1040a See Table 3, on this page, for a list of some of the items that can adjust your basis. 2010 tax forms 1040a Table 3. 2010 tax forms 1040a Adjusted Basis This table lists examples of some items that generally will increase or decrease your basis in your home. 2010 tax forms 1040a It is not intended to be all-inclusive. 2010 tax forms 1040a Increases to Basis Decreases to Basis Improvements: Putting an addition on your home Replacing an entire roof Paving your driveway Installing central air conditioning Rewiring your home Assessments for local improvements (see Assessments for local benefits , under What You Can and Cannot Deduct, earlier) Amounts spent to restore damaged property Insurance or other reimbursement for casualty losses Deductible casualty loss not covered by insurance Payments received for easement or right-of-way granted Depreciation allowed or allowable if home is used for business or rental purposes Value of subsidy for energy conservation measure excluded from income Improvements. 2010 tax forms 1040a   An improvement materially adds to the value of your home, considerably prolongs its useful life, or adapts it to new uses. 2010 tax forms 1040a You must add the cost of any improvements to the basis of your home. 2010 tax forms 1040a You cannot deduct these costs. 2010 tax forms 1040a   Improvements include putting a recreation room in your unfinished basement, adding another bathroom or bedroom, putting up a fence, putting in new plumbing or wiring, installing a new roof, and paving your driveway. 2010 tax forms 1040a Amount added to basis. 2010 tax forms 1040a   The amount you add to your basis for improvements is your actual cost. 2010 tax forms 1040a This includes all costs for material and labor, except your own labor, and all expenses related to the improvement. 2010 tax forms 1040a For example, if you had your lot surveyed to put up a fence, the cost of the survey is a part of the cost of the fence. 2010 tax forms 1040a   You also must add to your basis state and local assessments for improvements such as streets and sidewalks if they increase the value of the property. 2010 tax forms 1040a These assessments are discussed earlier under Real Estate Taxes . 2010 tax forms 1040a Improvements no longer part of home. 2010 tax forms 1040a    Your home's adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home. 2010 tax forms 1040a Example. 2010 tax forms 1040a You put wall-to-wall carpeting in your home 15 years ago. 2010 tax forms 1040a Later, you replaced that carpeting with new wall-to-wall carpeting. 2010 tax forms 1040a The cost of the old carpeting you replaced is no longer part of your home's adjusted basis. 2010 tax forms 1040a Repairs versus improvements. 2010 tax forms 1040a   A repair keeps your home in an ordinary, efficient operating condition. 2010 tax forms 1040a It does not add to the value of your home or prolong its life. 2010 tax forms 1040a Repairs include repainting your home inside or outside, fixing your gutters or floors, fixing leaks or plastering, and replacing broken window panes. 2010 tax forms 1040a You cannot deduct repair costs and generally cannot add them to the basis of your home. 2010 tax forms 1040a   However, repairs that are done as part of an extensive remodeling or restoration of your home are considered improvements. 2010 tax forms 1040a You add them to the basis of your home. 2010 tax forms 1040a Records to keep. 2010 tax forms 1040a   You can use Table 4 (at the end of the publication) as a guide to help you keep track of improvements to your home. 2010 tax forms 1040a Also see Keeping Records , below. 2010 tax forms 1040a Energy conservation subsidy. 2010 tax forms 1040a   If a public utility gives you (directly or indirectly) a subsidy for the purchase or installation of an energy conservation measure for your home, do not include the value of that subsidy in your income. 2010 tax forms 1040a You must reduce the basis of your home by that value. 2010 tax forms 1040a   An energy conservation measure is an installation or modification primarily designed to reduce consumption of electricity or natural gas or to improve the management of energy demand. 2010 tax forms 1040a Keeping Records Keeping full and accurate records is vital to properly report your income and expenses, to support your deductions and credits, and to know the basis or adjusted basis of your home. 2010 tax forms 1040a These records include your purchase contract and settlement papers if you bought the property, or other objective evidence if you acquired it by gift, inheritance, or similar means. 2010 tax forms 1040a You should keep any receipts, canceled checks, and similar evidence for improvements or other additions to the basis. 2010 tax forms 1040a In addition, you should keep track of any decreases to the basis such as those listed in Table 3, earlier. 2010 tax forms 1040a How to keep records. 2010 tax forms 1040a   How you keep records is up to you, but they must be clear and accurate and must be available to the IRS. 2010 tax forms 1040a How long to keep records. 2010 tax forms 1040a   You must keep your records for as long as they are important for meeting any provision of the federal tax law. 2010 tax forms 1040a   Keep records that support an item of income, a deduction, or a credit appearing on a return until the period of limitations for the return runs out. 2010 tax forms 1040a (A period of limitations is the period of time after which no legal action can be brought. 2010 tax forms 1040a ) For assessment of tax you owe, this is generally 3 years from the date you filed the return. 2010 tax forms 1040a For filing a claim for credit or refund, this is generally 3 years from the date you filed the original return, or 2 years from the date you paid the tax, whichever is later. 2010 tax forms 1040a Returns filed before the due date are treated as filed on the due date. 2010 tax forms 1040a   You may need to keep records relating to the basis of property (discussed earlier) for longer than the period of limitations. 2010 tax forms 1040a Keep those records as long as they are important in figuring the basis of the original or replacement property. 2010 tax forms 1040a Generally, this means for as long as you own the property and, after you dispose of it, for the period of limitations that applies to you. 2010 tax forms 1040a Table 4. 2010 tax forms 1040a Record of Home Improvements Keep this for your records. 2010 tax forms 1040a Also, keep receipts or other proof of improvements. 2010 tax forms 1040a Remove from this record any improvements that are no longer part of your main home. 2010 tax forms 1040a For example, if you put wall-to-wall carpeting in your home and later replace it with new wall-to-wall carpeting, remove the cost of the first carpeting. 2010 tax forms 1040a (a) Type of Improvement (b) Date (c) Amount   (a) Type of Improvement (b) Date (c) Amount Additions:       Heating & Air  Conditioning:     Bedroom       Heating system     Bathroom       Central air conditioning     Deck       Furnace     Garage       Duct work     Porch       Central humidifier     Patio       Filtration system     Storage shed       Other     Fireplace       Electrical:     Other           Lawn & Grounds:       Lighting fixtures           Wiring upgrades     Landscaping       Other     Driveway       Plumbing:     Walkway           Fences       Water heater     Retaining wall       Soft water system     Sprinkler system       Filtration system     Swimming pool       Other     Exterior lighting       Insulation:     Other           Communications:       Attic           Walls     Satellite dish       Floors     Intercom       Pipes and duct work     Security system       Other     Other             Miscellaneous:       Interior  Improvements:     Storm windows and doors       Built-in appliances     Roof       Kitchen modernization     Central vacuum       Bathroom modernization     Other       Flooring             Wall-to-wall carpeting             Other     How To