File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Amend 2011 Return

How Can I Efile My 2010 TaxesHr Block TaxFile AmendmentAmended Federal Income Tax ReturnH&r Block Tax FormHow To File 1040nr EzFile 2010 Taxes Late2011 Irs 1040ezFree Tax Forms1040nr Form 20111040ez Fillable FormTurbotax 1040x 2012State Tax Free StatesDo Unemployed People Pay TaxesStatetaxforms1040ez 2014Turbotax Deluxe Federal E File State 2011 Old Version2010 1040ez Form1040 Ez Forms 2012Georgia State Income Tax Forms 2012What Forms Do I Need To File My 2012 Taxes2011 Income Tax Brackets1040x TaxH & R Block TaxesNeed To File 2011 Taxes OnlineMypay Dfas Mil MypayFreetax ComOnline Amended Tax ReturnIrs Form 1040 Ez1040 SFile Taxes For Free 2011How To File Taxes StudentAlabama 40 Tax Forms 2012Irs Gove1040ez Booklet Online1040ez FileSoftware To File 1040nrHow Do I File Back TaxesTaxes For Self EmployedTurbo Tax Ez

Amend 2011 Return

Amend 2011 return Publication 587 - Additional Material Prev  Up  Next   Home   More Online Publications
Español

Government Sales and Auctions

Buy new, seized, and surplus merchandise and real estate from the government. Some items sold online by auction or fixed price. Others available by public auction, sealed bid, or contract with a Realtor.


The Amend 2011 Return

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