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Deadline For Filing Taxes

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Deadline for filing taxes 34. Deadline for filing taxes   Crédito Tributario por Hijos Table of Contents Introduction Useful Items - You may want to see: Hijo Calificado Cantidad de CréditoLímites del Crédito Cómo Reclamar el Crédito Crédito Tributario Adicional por Hijos Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040)Parte I Partes II a IV Introduction El crédito tributario por hijos es un crédito que puede reducir su impuesto hasta $1,000 por cada uno de sus hijos calificados. Deadline for filing taxes El crédito tributario adicional por hijos es un crédito que podría tomar en el caso de que no pueda reclamar la cantidad completa del crédito tributario por hijos. Deadline for filing taxes Este capítulo le explica lo siguiente: Quién es un hijo calificado. Deadline for filing taxes La cantidad del crédito. Deadline for filing taxes Cómo se puede reclamar el crédito. Deadline for filing taxes El crédito tributario por hijos y el crédito tributario adicional por hijos no deben confundirse con el crédito por gastos del cuidado de menores y dependientes, el cual se explica en el capítulo 32. Deadline for filing taxes Si no está sujeto al pago de impuestos. Deadline for filing taxes   Algunos créditos, tales como el crédito tributario por hijos o el crédito por gastos del cuidado de menores y dependientes, se usan para reducir el impuesto. Deadline for filing taxes Si la cantidad del impuesto en la línea 46 del Formulario 1040 o en la línea 28 del Formulario 1040A es cero, no calcule el crédito tributario por hijos ya que no hay impuesto que se pueda reducir. Deadline for filing taxes Sin embargo, podría reunir los requisitos para el crédito tributario adicional por hijos en la línea 65 (Formulario 1040) o en la línea 39 (Formulario 1040A). Deadline for filing taxes Useful Items - You may want to see: Publicación 972 Child Tax Credit (Crédito tributario por hijos), en inglés Formulario (e Instrucciones) Anexo 8812   (Formulario 1040A o 1040) Child Tax Credit (Crédito tributario por hijos), en inglés W-4(SP) Certificado de Exención de Retenciones del Empleado W-4 Employee's Withholding Allowance Certificate (Certificado de exención de retenciones del empleado), en inglés Hijo Calificado Un hijo calificado, para propósitos del crédito tributario por hijos, es aquél que: Es su hijo o hija, hijastro o hijastra, hijo de crianza, hermano o hermana, hermanastro o hermanastra o descendiente de cualquiera de ellos (por ejemplo, su nieto, nieta, sobrina o sobrino), Tenía menos de 17 años de edad al finalizar el año 2013, No proveyó más de la mitad de su propia manutención durante el año 2013, Vivió con usted durante más de la mitad del año 2013 (vea Excepciones al tiempo vivido con usted , más adelante), Fue reclamado como dependiente en la declaración de usted, No presenta una declaración conjunta para el año (o la presenta solamente para reclamar un reembolso), y Era ciudadano, nacional o residente de los Estados Unidos. Deadline for filing taxes Si el hijo fue adoptado, vea Hijo adoptivo , más adelante. Deadline for filing taxes Para cada hijo calificado, tiene que marcar el recuadro que aparece en la línea 6c del Formulario 1040 o del Formulario 1040A. Deadline for filing taxes Ejemplo 1. Deadline for filing taxes Su hijo cumplió 17 años de edad el día 30 de diciembre del año 2013. Deadline for filing taxes Él es ciudadano de los Estados Unidos y usted lo declara como dependiente en la declaración de impuestos. Deadline for filing taxes Su hijo no es hijo calificado para el crédito tributario por hijos porque no tenía menos de 17 años de edad al finalizar el año 2013. Deadline for filing taxes Ejemplo 2. Deadline for filing taxes Su hija cumplió 8 años en el año 2013. Deadline for filing taxes Ella no es ciudadana de los Estados Unidos, tiene un ITIN y vivió en México durante todo el año 2013. Deadline for filing taxes Ella no es un hijo calificado para el crédito tributario por hijos debido a que no fue residente de los Estados Unidos en 2013. Deadline for filing taxes Contribuyentes que tienen determinados hijos dependientes con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés). Deadline for filing taxes   Si está reclamando un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un hijo que identificó en su declaración de impuestos con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés), en lugar de un número de Seguro Social (SSN, por sus siglas en inglés), tiene que completar la Parte I del Anexo 8812 (Formulario 1040A o 1040). Deadline for filing taxes   Aun si su hijo es dependiente suyo, sólo puede reclamar un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un dependiente que sea ciudadano, nacional o residente de los Estados Unidos. Deadline for filing taxes Para ser tratado como residente de los Estados Unidos, un hijo normalmente tiene que cumplir el requisito de presencia sustancial. Deadline for filing taxes Para más información sobre el requisito de presencia sustancial, vea la Publicación 519, U. Deadline for filing taxes S. Deadline for filing taxes Tax Guide for Aliens (Guía sobre los impuestos federales estadounidenses para extranjeros), en inglés. Deadline for filing taxes Hijo adoptivo. Deadline for filing taxes   A un hijo adoptivo siempre se le trata como si fuera su hijo. Deadline for filing taxes Un hijo adoptivo incluye un niño colocado en su hogar por una agencia autorizada, con la intención de que sea legalmente adoptado. Deadline for filing taxes   Si usted es ciudadano o nacional de los EE. Deadline for filing taxes UU. Deadline for filing taxes y su hijo adoptivo vivió con usted como integrante de su unidad familiar durante todo el año en 2013, dicho hijo cumple el requisito (7), anteriormente, para ser un hijo calificado para propósitos del crédito tributario por hijos. Deadline for filing taxes Excepciones al tiempo vivido con usted. Deadline for filing taxes   Se considera que un hijo vivió con usted más de la mitad del año 2013 si nació o murió en el año 2013, y su hogar (el de usted) fue el hogar del hijo más de la mitad del tiempo en el cual estuvo vivo. Deadline for filing taxes Las ausencias temporales por usted o su hijo debidas a circunstancias especiales, tales como las ausencias por educación, vacaciones, negocios, atención médica, servicio militar o estancia en un centro de detención para delincuentes juveniles cuentan como tiempo que el hijo vivió con usted. Deadline for filing taxes   También hay excepciones para hijos secuestrados e hijos de padres divorciados o separados. Deadline for filing taxes Para detalles, vea Requisito de Residencia , en el capítulo 3. Deadline for filing taxes Hijo calificado de más de una persona. Deadline for filing taxes   Se aplica una regla especial si su hijo calificado es el hijo calificado de más de una persona. Deadline for filing taxes Para detalles, vea Requisito Especial para el Hijo Calificado de Más de una Persona , en el capítulo 3. Deadline for filing taxes Cantidad de Crédito La cantidad máxima de crédito que puede reclamar es $1,000 por cada hijo calificado. Deadline for filing taxes Límites del Crédito Usted tiene que reducir su crédito tributario por hijos si la condición (1) o la condición (2) le corresponde: La cantidad de la línea 46 (Formulario 1040) o de la línea 28 (Formulario 1040A) es menor que el crédito. Deadline for filing taxes Si esta cantidad es cero, no puede reclamar este crédito porque no hay impuesto que se pueda reducir. Deadline for filing taxes Sin embargo, es posible que pueda tomar el crédito tributario adicional por hijos. Deadline for filing taxes Vea Crédito Tributario Adicional por Hijos , más adelante. Deadline for filing taxes Su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es mayor que la cantidad que se indica a continuación para su estado civil para efectos de la declaración. Deadline for filing taxes Casados que presentan una declaración conjunta: $110,000. Deadline for filing taxes Soltero, cabeza de familia o viudo que reúne los requisitos: $75,000. Deadline for filing taxes Casados que presentan la declaración por separado: $55,000. Deadline for filing taxes Ingresos brutos ajustados modificados. Deadline for filing taxes   Para propósitos del crédito tributario por hijos, su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es su ingreso bruto ajustado más las cantidades siguientes que puedan ser aplicables en su caso: Toda cantidad excluida del ingreso debido a la exclusión de ingresos de fuentes de  Puerto Rico. Deadline for filing taxes En la línea de puntos directamente al lado de la línea 38 del Formulario 1040, anote la cantidad excluida e indentifíquela como “ EPRI. Deadline for filing taxes ” Además, adjunte una copia de todo Formulario 499R-2/W-2PR a su declaración. Deadline for filing taxes Toda cantidad de las líneas 45 ó 50 del Formulario 2555, Foreign Earned Income (Ingreso devengado en el extranjero), en inglés. Deadline for filing taxes Toda cantidad de la línea 18 del Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingreso devengado en el extranjero), en inglés. Deadline for filing taxes Toda cantidad de la línea 15 del Formulario 4563, Exclusion of Income for Bona Fide Residents of American Samoa (Exclusión del ingreso para residentes bona fide de la Samoa Estadounidense), en inglés. Deadline for filing taxes   Si no tiene ninguna de las cantidades mencionadas anteriormente, su ingreso bruto ajustado modificado es igual a su ingreso bruto ajustado. Deadline for filing taxes Ingreso bruto ajustado. Deadline for filing taxes   El ingreso bruto ajustado (AGI, por sus siglas en inglés) es la cantidad de la línea 38 del Formulario 1040 o de la línea 22 del Formulario 1040A. Deadline for filing taxes Cómo Reclamar el Crédito Para reclamar el crédito tributario por hijos, tiene que presentar el Formulario 1040 o el Formulario 1040A. Deadline for filing taxes No puede reclamar el crédito tributario por hijos en el Formulario 1040EZ. Deadline for filing taxes Tiene que proveer el nombre y número de identificación (normalmente el número de Seguro Social) de cada hijo calificado en su declaración de impuestos. Deadline for filing taxes Si reclama el crédito tributario por hijos con un hijo identificado por un ITIN, usted también tiene que presentar el Anexo 8812. Deadline for filing taxes Para calcular el crédito, primero revise la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos), en las Instrucciones para el Formulario 1040 o el Formulario 1040A. Deadline for filing taxes Si se le indica que consulte la Publicación 972, Child Tax Credit (Crédito tributario por hijos), en inglés, no puede utilizar la Hoja de trabajo de las instrucciones en la declaración de impuestos; en su lugar, usted tiene que utilizar la Publicación 972, en inglés, para calcular el crédito. Deadline for filing taxes Si no se le indica que utilice la Publicación 972, puede usar la Hoja de trabajo del crédito tributario por hijos, que se encuentra en las Instrucciones para el Formulario 1040 o las Instrucciones para el Formulario 1040A o la Publicación 972, todas en inglés, para calcular el crédito. Deadline for filing taxes Crédito Tributario Adicional por Hijos Este crédito es para determinadas personas que reciban menos de la cantidad total del crédito tributario por hijos. Deadline for filing taxes El crédito tributario adicional por hijos puede darle un reembolso aunque no adeude ningún impuesto. Deadline for filing taxes Cómo se reclama el crédito tributario adicional por hijos. Deadline for filing taxes   Para reclamar el crédito tributario adicional por hijos, siga los pasos que aparecen a continuación: Asegúrese de haber calculado la cantidad, si existe, de su crédito tributario por hijos. Deadline for filing taxes Vea anteriormente el tema titulado Cómo Reclamar el Crédito . Deadline for filing taxes Use las Partes II a la IV del Anexo 8812 para determinar si puede reclamar el crédito tributario adicional por hijos si usted contestó “Yes” (Sí) en la línea 9 ó 10 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en las Instrucciones para el Formulario 1040 o en las Instrucciones para el Formulario 1040A, o en la línea 13 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en la Publicación 972, todas en inglés. Deadline for filing taxes Si tiene un crédito tributario adicional por hijos en la línea 13 del Anexo 8812, anótelo en la línea 65 del Formulario 1040 o en la línea 39 del Formulario 1040A. Deadline for filing taxes Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040) El Anexo 8812 tiene cuatro partes, pero se puede considerar como que consta de dos secciones. Deadline for filing taxes La Parte I es independiente de las Partes II a la IV. Deadline for filing taxes Si todos sus hijos tienen números de Seguro Social o números de identificación del contribuyente para adopción del IRS(ATIN, por sus siglas en inglés),y usted no reclama el crédito tributario adicional por hijos, no necesita completar ni adjuntar el Anexo 8812 a su declaración de impuestos. Deadline for filing taxes Parte I Usted sólo necesitará completar la Parte I si está reclamando el crédito tributario por hijos para un hijo que aparece identificado con un número de identificación personal del contribuyente del IRS (ITIN, por sus siglas en inglés). Deadline for filing taxes Si todos los hijos por los cuales usted marcó la casilla en la columna 4 de la línea 6c de su Formulario 1040 o Formulario 1040A tienen números de Seguro Social (SSN, por sus siglas en inglés) o números de identificación del contribuyente para adopción del IRS (ATIN, por sus siglas en inglés), no tiene que completar la Parte I del Anexo 8812. Deadline for filing taxes Partes II a IV Las Partes II a la IV le ayudan a calcular el crédito adicional por hijos que le corresponde a usted. Deadline for filing taxes Por lo general, deberá completar las Partes II a la IV únicamente si se le indica luego de que completa la Hoja de trabajo del crédito tributario por hijos que aparece en las instrucciones de su declaración de impuestos o en la Publicación 972. Deadline for filing taxes Vea Cómo se reclama el crédito tributario adicional por hijos , anteriormente. Deadline for filing taxes Prev  Up  Next   Home   More Online Publications
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Deadline for filing taxes Publication 525 - Main Content Table of Contents Employee CompensationBabysitting. Deadline for filing taxes Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Business and Investment IncomeRents From Personal Property Royalties Partnership Income S Corporation Income Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Miscellaneous IncomeBartering Canceled Debts Host or Hostess Life Insurance Proceeds Recoveries Survivor Benefits Unemployment Benefits Welfare and Other Public Assistance Benefits Other Income RepaymentsMethod 1. Deadline for filing taxes Method 2. Deadline for filing taxes How To Get Tax HelpLow Income Taxpayer Clinics Employee Compensation In most cases, you must include in gross income everything you receive in payment for personal services. Deadline for filing taxes In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. Deadline for filing taxes You should receive a Form W-2 from your employer or former employer showing the pay you received for your services. Deadline for filing taxes Include all your pay on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ, even if you do not receive Form W-2, or you receive a Form W-2 that does not include all pay that should be included on the Form W-2. Deadline for filing taxes If you performed services, other than as an independent contractor, and your employer did not withhold social security and Medicare taxes from your pay, you must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, with your Form 1040. Deadline for filing taxes These wages must be included on line 7 of Form 1040. Deadline for filing taxes See Form 8919 for more information. Deadline for filing taxes Childcare providers. Deadline for filing taxes   If you provide childcare, either in the child's home or in your home or other place of business, the pay you receive must be included in your income. Deadline for filing taxes If you are not an employee, you are probably self-employed and must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Deadline for filing taxes You generally are not an employee unless you are subject to the will and control of the person who employs you as to what you are to do and how you are to do it. Deadline for filing taxes Babysitting. Deadline for filing taxes   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. Deadline for filing taxes Bankruptcy. Deadline for filing taxes   If you filed for bankruptcy under Chapter 11 of the Bankruptcy Code, you must allocate your wages and withheld income tax. Deadline for filing taxes Your W-2 will show your total wages and withheld income tax for the year. Deadline for filing taxes On your tax return, you report the wages and withheld income tax for the period before you filed for bankruptcy. Deadline for filing taxes Your bankruptcy estate reports the wages and withheld income tax for the period after you filed for bankruptcy. Deadline for filing taxes If you receive other information returns (such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income) that report gross income to you, rather than to the bankruptcy estate, you must allocate that income. Deadline for filing taxes   The only exception is for purposes of figuring your self-employment tax, if you are self-employed. Deadline for filing taxes For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case. Deadline for filing taxes   You must file a statement with your income tax return stating you filed a Chapter 11 bankruptcy case. Deadline for filing taxes The statement must show the allocation and describe the method used to make the allocation. Deadline for filing taxes For a sample of this statement and other information, see Notice 2006-83, 2006-40 I. Deadline for filing taxes R. Deadline for filing taxes B. Deadline for filing taxes 596, available at www. Deadline for filing taxes irs. Deadline for filing taxes gov/irb/2006-40_IRB/ar12. Deadline for filing taxes html. Deadline for filing taxes Miscellaneous Compensation This section discusses many types of employee compensation. Deadline for filing taxes The subjects are arranged in alphabetical order. Deadline for filing taxes Advance commissions and other earnings. Deadline for filing taxes   If you receive advance commissions or other amounts for services to be performed in the future and you are a cash-method taxpayer, you must include these amounts in your income in the year you receive them. Deadline for filing taxes    If you repay unearned commissions or other amounts in the same year you receive them, reduce the amount included in your income by the repayment. Deadline for filing taxes If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), Itemized Deductions, or you may be able to take a credit for that year. Deadline for filing taxes See Repayments , later. Deadline for filing taxes Allowances and reimbursements. Deadline for filing taxes    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Deadline for filing taxes If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. Deadline for filing taxes Back pay awards. Deadline for filing taxes   Include in income amounts you are awarded in a settlement or judgment for back pay. Deadline for filing taxes These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. Deadline for filing taxes They should be reported to you by your employer on Form W-2. Deadline for filing taxes Bonuses and awards. Deadline for filing taxes    Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. Deadline for filing taxes These include prizes such as vacation trips for meeting sales goals. Deadline for filing taxes If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. Deadline for filing taxes However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you. Deadline for filing taxes Employee achievement award. Deadline for filing taxes   If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. Deadline for filing taxes However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. Deadline for filing taxes Your employer can tell you whether your award is a qualified plan award. Deadline for filing taxes Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay. Deadline for filing taxes   However, the exclusion does not apply to the following awards. Deadline for filing taxes A length-of-service award if you received it for less than 5 years of service or if you received another length-of-service award during the year or the previous 4 years. Deadline for filing taxes A safety achievement award if you are a manager, administrator, clerical employee, or other professional employee or if more than 10% of eligible employees previously received safety achievement awards during the year. Deadline for filing taxes Example. Deadline for filing taxes Ben Green received three employee achievement awards during the year: a nonqualified plan award of a watch valued at $250, and two qualified plan awards of a stereo valued at $1,000 and a set of golf clubs valued at $500. Deadline for filing taxes Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. Deadline for filing taxes However, because the $1,750 total value of the awards is more than $1,600, Ben must include $150 ($1,750 − $1,600) in his income. Deadline for filing taxes Differential wage payments. Deadline for filing taxes   This is any payment made by an employer to an individual for any period during which the individual is, for a period of more than 30 days, an active duty member of the uniformed services and represents all or a portion of the wages the individual would have received from the employer for that period. Deadline for filing taxes These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. Deadline for filing taxes The payments are reported as wages on Form W-2. Deadline for filing taxes Government cost-of-living allowances. Deadline for filing taxes   Most payments received by U. Deadline for filing taxes S. Deadline for filing taxes Government civilian employees for working abroad are taxable. Deadline for filing taxes However, certain cost-of-living allowances are tax free. Deadline for filing taxes Publication 516, U. Deadline for filing taxes S. Deadline for filing taxes Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Deadline for filing taxes Nonqualified deferred compensation plans. Deadline for filing taxes   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. Deadline for filing taxes This amount is shown on Form W-2, box 12, using code Y. Deadline for filing taxes This amount is not included in your income. Deadline for filing taxes   However, if at any time during the tax year, the plan fails to meet certain requirements, or is not operated under those requirements, all amounts deferred under the plan for the tax year and all preceding tax years are included in your income for the current year. Deadline for filing taxes This amount is included in your wages shown on Form W-2, box 1. Deadline for filing taxes It is also shown on Form W-2, box 12, using code Z. Deadline for filing taxes Nonqualified deferred compensation plans of nonqualified entities. Deadline for filing taxes   In most cases, any compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity is included in gross income when there is no substantial risk of forfeiture of the rights to such compensation. Deadline for filing taxes For this purpose, a nonqualified entity is: A foreign corporation unless substantially all of its income is: Effectively connected with the conduct of a trade or business in the United States, or Subject to a comprehensive foreign income tax. Deadline for filing taxes A partnership unless substantially all of its income is allocated to persons other than: Foreign persons for whom the income is not subject to a comprehensive foreign income tax, and Tax-exempt organizations. Deadline for filing taxes Note received for services. Deadline for filing taxes   If your employer gives you a secured note as payment for your services, you must include the fair market value (usually the discount value) of the note in your income for the year you receive it. Deadline for filing taxes When you later receive payments on the note, a proportionate part of each payment is the recovery of the fair market value that you previously included in your income. Deadline for filing taxes Do not include that part again in your income. Deadline for filing taxes Include the rest of the payment in your income in the year of payment. Deadline for filing taxes   If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. Deadline for filing taxes Severance pay. Deadline for filing taxes   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. Deadline for filing taxes Accrued leave payment. Deadline for filing taxes   If you are a federal employee and receive a lump-sum payment for accrued annual leave when you retire or resign, this amount will be included as wages on your Form W-2. Deadline for filing taxes   If you resign from one agency and are reemployed by another agency, you may have to repay part of your lump-sum annual leave payment to the second agency. Deadline for filing taxes You can reduce gross wages by the amount you repaid in the same tax year in which you received it. Deadline for filing taxes Attach to your tax return a copy of the receipt or statement given to you by the agency you repaid to explain the difference between the wages on your return and the wages on your Forms W-2. Deadline for filing taxes Outplacement services. Deadline for filing taxes   If you choose to accept a reduced amount of severance pay so that you can receive outplacement services (such as training in résumé writing and interview techniques), you must include the unreduced amount of the severance pay in income. Deadline for filing taxes    However, you can deduct the value of these outplacement services (up to the difference between the severance pay included in income and the amount actually received) as a miscellaneous deduction (subject to the 2%-of-adjusted-gross-income (AGI) limit) on Schedule A (Form 1040). Deadline for filing taxes Sick pay. Deadline for filing taxes   Pay you receive from your employer while you are sick or injured is part of your salary or wages. Deadline for filing taxes In addition, you must include in your income sick pay benefits received from any of the following payers. Deadline for filing taxes A welfare fund. Deadline for filing taxes A state sickness or disability fund. Deadline for filing taxes An association of employers or employees. Deadline for filing taxes An insurance company, if your employer paid for the plan. Deadline for filing taxes However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. Deadline for filing taxes For more information, see Other Sickness and Injury Benefits under Sickness and Injury Benefits, later. Deadline for filing taxes Social security and Medicare taxes paid by employer. Deadline for filing taxes   If you and your employer have an agreement that your employer pays your social security and Medicare taxes without deducting them from your gross wages, you must report the amount of tax paid for you as taxable wages on your tax return. Deadline for filing taxes The payment is also treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. Deadline for filing taxes However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. Deadline for filing taxes Stock appreciation rights. Deadline for filing taxes   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. Deadline for filing taxes When you use the right, you are entitled to a cash payment equal to the fair market value of the corporation's stock on the date of use minus the fair market value on the date the right was granted. Deadline for filing taxes You include the cash payment in income in the year you use the right. Deadline for filing taxes Fringe Benefits Fringe benefits received in connection with the performance of your services are included in your income as compensation unless you pay fair market value for them or they are specifically excluded by law. Deadline for filing taxes Abstaining from the performance of services (for example, under a covenant not to compete) is treated as the performance of services for purposes of these rules. Deadline for filing taxes See Valuation of Fringe Benefits , later in this discussion, for information on how to determine the amount to include in income. Deadline for filing taxes Recipient of fringe benefit. Deadline for filing taxes   You are the recipient of a fringe benefit if you perform the services for which the fringe benefit is provided. Deadline for filing taxes You are considered to be the recipient even if it is given to another person, such as a member of your family. Deadline for filing taxes An example is a car your employer gives to your spouse for services you perform. Deadline for filing taxes The car is considered to have been provided to you and not to your spouse. Deadline for filing taxes   You do not have to be an employee of the provider to be a recipient of a fringe benefit. Deadline for filing taxes If you are a partner, director, or independent contractor, you also can be the recipient of a fringe benefit. Deadline for filing taxes Provider of benefit. Deadline for filing taxes   Your employer or another person for whom you perform services is the provider of a fringe benefit regardless of whether that person actually provides the fringe benefit to you. Deadline for filing taxes The provider can be a client or customer of an independent contractor. Deadline for filing taxes Accounting period. Deadline for filing taxes   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. Deadline for filing taxes Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. Deadline for filing taxes The general rule: benefits are reported for a full calendar year (January 1–December 31). Deadline for filing taxes The special accounting period rule: benefits provided during the last 2 months of the calendar year (or any shorter period) are treated as paid during the following calendar year. Deadline for filing taxes For example, each year your employer reports the value of benefits provided during the last 2 months of the prior year and the first 10 months of the current year. Deadline for filing taxes Your employer does not have to use the same accounting period for each fringe benefit, but must use the same period for all employees who receive a particular benefit. Deadline for filing taxes   You must use the same accounting period that you use to report the benefit to claim an employee business deduction (for use of a car, for example). Deadline for filing taxes Form W-2. Deadline for filing taxes   Your employer must include all taxable fringe benefits in box 1 of Form W-2 as wages, tips and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages. Deadline for filing taxes Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). Deadline for filing taxes However, if your employer provided you with a vehicle and included 100% of its annual lease value in your income, the employer must separately report this value to you in box 14 (or on a separate statement). Deadline for filing taxes Accident or Health Plan In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income. Deadline for filing taxes Benefits you receive from the plan may be taxable, as explained, later, under Sickness and Injury Benefits . Deadline for filing taxes For information on the items covered in this section, other than Long-term care coverage , see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Deadline for filing taxes Long-term care coverage. Deadline for filing taxes   Contributions by your employer to provide coverage for long-term care services generally are not included in your income. Deadline for filing taxes However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. Deadline for filing taxes This amount will be reported as wages in box 1 of your Form W-2. Deadline for filing taxes Archer MSA contributions. Deadline for filing taxes    Contributions by your employer to your Archer MSA generally are not included in your income. Deadline for filing taxes Their total will be reported in box 12 of Form W-2, with code R. Deadline for filing taxes You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Deadline for filing taxes File the form with your return. Deadline for filing taxes Health flexible spending arrangement (health FSA). Deadline for filing taxes   If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income. Deadline for filing taxes   Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. Deadline for filing taxes The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. Deadline for filing taxes For more information, see Notice 2012-40, 2012-26 I. Deadline for filing taxes R. Deadline for filing taxes B. Deadline for filing taxes 1046, available at www. Deadline for filing taxes irs. Deadline for filing taxes gov/irb/2012-26 IRB/ar09. Deadline for filing taxes html. Deadline for filing taxes Health reimbursement arrangement (HRA). Deadline for filing taxes   If your employer provides an HRA that qualifies as an accident or health plan, coverage and reimbursements of your medical care expenses generally are not included in your income. Deadline for filing taxes Health savings accounts (HSA). Deadline for filing taxes   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. Deadline for filing taxes Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. Deadline for filing taxes Contributions made by your employer are not included in your income. Deadline for filing taxes Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. Deadline for filing taxes Distributions not used for qualified medical expenses are included in your income. Deadline for filing taxes See Publication 969 for the requirements of an HSA. Deadline for filing taxes   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. Deadline for filing taxes The contributions are treated as a distribution of money and are not included in the partner's gross income. Deadline for filing taxes Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are includible in the partner's gross income. Deadline for filing taxes In both situations, the partner can deduct the contribution made to the partner's HSA. Deadline for filing taxes   Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are includible in the shareholder-employee's gross income. Deadline for filing taxes The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. Deadline for filing taxes Qualified HSA funding distribution. Deadline for filing taxes   You can make a one-time distribution from your individual retirement account (IRA) to an HSA and you generally will not include any of the distribution in your income. Deadline for filing taxes See Publication 590, Individual Retirement Arrangements (IRAs), for the requirements for these qualified HSA funding distributions. Deadline for filing taxes Failure to maintain eligibility. Deadline for filing taxes   If your HSA received qualified HSA distributions from a health FSA or HRA (discussed earlier) or a qualified HSA funding distribution, you must be an eligible individual for HSA purposes for the period beginning with the month in which the qualified distribution was made and ending on the last day of the 12th month following that month. Deadline for filing taxes If you fail to be an eligible individual during this period, other than because of death or disability, you must include the distribution in your income for the tax year in which you become ineligible. Deadline for filing taxes This income is also subject to an additional 10% tax. Deadline for filing taxes Adoption Assistance You may be able to exclude from your income amounts paid or expenses incurred by your employer for qualified adoption expenses in connection with your adoption of an eligible child. Deadline for filing taxes See Instructions for Form 8839, Qualified Adoption Expenses, for more information. Deadline for filing taxes Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. Deadline for filing taxes They also are included as social security and Medicare wages in boxes 3 and 5. Deadline for filing taxes However, they are not included as wages in box 1. Deadline for filing taxes To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. Deadline for filing taxes File the form with your return. Deadline for filing taxes Athletic Facilities If your employer provides you with the free or low-cost use of an employer-operated gym or other athletic club on your employer's premises, the value is not included in your compensation. Deadline for filing taxes The gym must be used primarily by employees, their spouses, and their dependent children. Deadline for filing taxes If your employer pays for a fitness program provided to you at an off-site resort hotel or athletic club, the value of the program is included in your compensation. Deadline for filing taxes De Minimis (Minimal) Benefits If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. Deadline for filing taxes In most cases, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. Deadline for filing taxes Also see Employee Discounts , later. Deadline for filing taxes Holiday gifts. Deadline for filing taxes   If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. Deadline for filing taxes However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved. Deadline for filing taxes Dependent Care Benefits If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Deadline for filing taxes Dependent care benefits include: Amounts your employer pays directly to either you or your care provider for the care of your qualifying person while you work, and The fair market value of care in a daycare facility provided or sponsored by your employer. Deadline for filing taxes The amount you can exclude is limited to the lesser of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Deadline for filing taxes Your employer must show the total amount of dependent care benefits provided to you during the year under a qualified plan in box 10 of your Form W-2. Deadline for filing taxes Your employer also will include any dependent care benefits over $5,000 in your wages shown in box 1 of your Form W-2. Deadline for filing taxes To claim the exclusion, you must complete Part III of Form 2441, Child and Dependent Care Expenses. Deadline for filing taxes See the Instructions for Form 2441 for more information. Deadline for filing taxes Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. Deadline for filing taxes For more information, see Publication 970. Deadline for filing taxes Employee Discounts If your employer sells you property or services at a discount, you may be able to exclude the amount of the discount from your income. Deadline for filing taxes The exclusion applies to discounts on property or services offered to customers in the ordinary course of the line of business in which you work. Deadline for filing taxes However, it does not apply to discounts on real property or property commonly held for investment (such as stocks or bonds). Deadline for filing taxes The exclusion is limited to the price charged nonemployee customers multiplied by the following percentage. Deadline for filing taxes For a discount on property, your employer's gross profit percentage (gross profit divided by gross sales) on all property sold during the employer's previous tax year. Deadline for filing taxes (Ask your employer for this percentage. Deadline for filing taxes ) For a discount on services, 20%. Deadline for filing taxes Financial Counseling Fees Financial counseling fees paid for you by your employer are included in your income and must be reported as part of wages. Deadline for filing taxes If the fees are for tax or investment counseling, they can be deducted on Schedule A (Form 1040) as a miscellaneous deduction (subject to the 2%-of-AGI limit). Deadline for filing taxes Qualified retirement planning services paid for you by your employer may be excluded from your income. Deadline for filing taxes For more information, see Retirement Planning Services , later. Deadline for filing taxes Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) is not included in your income. Deadline for filing taxes However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. Deadline for filing taxes For exceptions to this rule, see Entire cost excluded , and Entire cost taxed , later. Deadline for filing taxes If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of your Form W-2. Deadline for filing taxes Also, it is shown separately in box 12 with code C. Deadline for filing taxes Group-term life insurance. Deadline for filing taxes   This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. Deadline for filing taxes Permanent benefits. Deadline for filing taxes   If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. Deadline for filing taxes Your employer should be able to tell you the amount to include in your income. Deadline for filing taxes Accidental death benefits. Deadline for filing taxes   Insurance that provides accidental or other death benefits but does not provide general death benefits (travel insurance, for example) is not group-term life insurance. Deadline for filing taxes Former employer. Deadline for filing taxes   If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. Deadline for filing taxes Also, it is shown separately in box 12 with code C. Deadline for filing taxes Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. Deadline for filing taxes You must pay these taxes with your income tax return. Deadline for filing taxes Include them on line 60, Form 1040, and follow the instructions forline 60. Deadline for filing taxes For more information, see the Instructions for Form 1040. Deadline for filing taxes Two or more employers. Deadline for filing taxes   Your exclusion for employer-provided group-term life insurance coverage cannot exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. Deadline for filing taxes If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 will not be correct. Deadline for filing taxes You must figure how much to include in your income. Deadline for filing taxes Reduce the amount you figure by any amount reported with code C in box 12 of your Forms W-2, add the result to the wages reported in box 1, and report the total on your return. Deadline for filing taxes Figuring the taxable cost. Deadline for filing taxes    Use the following worksheet to figure the amount to include in your income. Deadline for filing taxes   If you pay any part of the cost of the insurance, your entire payment reduces, dollar for dollar, the amount you otherwise would include in your income. Deadline for filing taxes However, you cannot reduce the amount to include in your income by: Payments for coverage in a different tax year, Payments for coverage through a cafeteria plan, unless the payments are after-tax contributions, or Payments for coverage not taxed to you because of the exceptions discussed later under Entire cost excluded . Deadline for filing taxes Worksheet 1. Deadline for filing taxes Figuring the Cost of Group-Term Life Insurance To Include in Income 1. Deadline for filing taxes Enter the total amount of your insurance coverage from your employer(s) 1. Deadline for filing taxes   2. Deadline for filing taxes Limit on exclusion for employer-provided group-term life insurance coverage 2. Deadline for filing taxes 50,000 3. Deadline for filing taxes Subtract line 2 from line 1 3. Deadline for filing taxes   4. Deadline for filing taxes Divide line 3 by $1,000. Deadline for filing taxes Figure to the nearest tenth 4. Deadline for filing taxes   5. Deadline for filing taxes Go to Table 1. Deadline for filing taxes Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. Deadline for filing taxes   6. Deadline for filing taxes Multiply line 4 by line 5 6. Deadline for filing taxes     7. Deadline for filing taxes Enter the number of full months of coverage at this cost 7. Deadline for filing taxes   8. Deadline for filing taxes Multiply line 6 by line 7 8. Deadline for filing taxes   9. Deadline for filing taxes Enter the premiums you paid per month 9. Deadline for filing taxes       10. Deadline for filing taxes Enter the number of months you paid the  premiums 10. Deadline for filing taxes       11. Deadline for filing taxes Multiply line 9 by line 10. Deadline for filing taxes 11. Deadline for filing taxes   12. Deadline for filing taxes Subtract line 11 from line 8. Deadline for filing taxes Include this amount in your income as wages 12. Deadline for filing taxes   Table 1. Deadline for filing taxes Cost of $1,000 of Group-Term Life Insurance for One Month   Age Cost     Under 25 $ . Deadline for filing taxes 05     25 through 29 . Deadline for filing taxes 06     30 through 34 . Deadline for filing taxes 08     35 through 39 . Deadline for filing taxes 09     40 through 44 . Deadline for filing taxes 10     45 through 49 . Deadline for filing taxes 15     50 through 54 . Deadline for filing taxes 23     55 through 59 . Deadline for filing taxes 43     60 through 64 . Deadline for filing taxes 66     65 through 69 1. Deadline for filing taxes 27     70 and older 2. Deadline for filing taxes 06   Example. Deadline for filing taxes You are 51 years old and work for employers A and B. Deadline for filing taxes Both employers provide group-term life insurance coverage for you for the entire year. Deadline for filing taxes Your coverage is $35,000 with employer A and $45,000 with employer B. Deadline for filing taxes You pay premiums of $4. Deadline for filing taxes 15 a month under the employer B group plan. Deadline for filing taxes You figure the amount to include in your income as follows. Deadline for filing taxes   Worksheet 1. Deadline for filing taxes Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated 1. Deadline for filing taxes Enter the total amount of your insurance coverage from your employer(s) 1. Deadline for filing taxes 80,000 2. Deadline for filing taxes Limit on exclusion for employer-provided group-term life insurance coverage 2. Deadline for filing taxes 50,000 3. Deadline for filing taxes Subtract line 2 from line 1 3. Deadline for filing taxes 30,000 4. Deadline for filing taxes Divide line 3 by $1,000. Deadline for filing taxes Figure to the nearest tenth 4. Deadline for filing taxes 30. Deadline for filing taxes 0 5. Deadline for filing taxes Go to Table 1. Deadline for filing taxes Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. Deadline for filing taxes . Deadline for filing taxes 23 6. Deadline for filing taxes Multiply line 4 by line 5 6. Deadline for filing taxes 6. Deadline for filing taxes 90 7. Deadline for filing taxes Enter the number of full months of coverage at this cost. Deadline for filing taxes 7. Deadline for filing taxes 12 8. Deadline for filing taxes Multiply line 6 by line 7 8. Deadline for filing taxes 82. Deadline for filing taxes 80 9. Deadline for filing taxes Enter the premiums you paid per month 9. Deadline for filing taxes 4. Deadline for filing taxes 15     10. Deadline for filing taxes Enter the number of months you paid the premiums 10. Deadline for filing taxes 12     11. Deadline for filing taxes Multiply line 9 by line 10. Deadline for filing taxes 11. Deadline for filing taxes 49. Deadline for filing taxes 80 12. Deadline for filing taxes Subtract line 11 from line 8. Deadline for filing taxes Include this amount in your income as wages 12. Deadline for filing taxes 33. Deadline for filing taxes 00 The total amount to include in income for the cost of excess group-term life insurance is $33. Deadline for filing taxes Neither employer provided over $50,000 insurance coverage, so the wages shown on your Forms W-2 do not include any part of that $33. Deadline for filing taxes You must add it to the wages shown on your Forms W-2 and include the total on your return. Deadline for filing taxes Entire cost excluded. Deadline for filing taxes   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. Deadline for filing taxes You are permanently and totally disabled and have ended your employment. Deadline for filing taxes Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. Deadline for filing taxes A charitable organization to which contributions are deductible is the only beneficiary of the policy for the entire period the insurance is in force during the tax year. Deadline for filing taxes (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. Deadline for filing taxes ) The plan existed on January 1, 1984, and: You retired before January 2, 1984, and were covered by the plan when you retired, or You reached age 55 before January 2, 1984, and were employed by the employer or its predecessor in 1983. Deadline for filing taxes Entire cost taxed. Deadline for filing taxes   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply. Deadline for filing taxes The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. Deadline for filing taxes You are a key employee and your employer's plan discriminates in favor of key employees. Deadline for filing taxes Meals and Lodging You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met. Deadline for filing taxes The meals are: Furnished on the business premises of your employer, and Furnished for the convenience of your employer. Deadline for filing taxes The lodging is: Furnished on the business premises of your employer, Furnished for the convenience of your employer, and A condition of your employment. Deadline for filing taxes (You must accept it in order to be able to properly perform your duties. Deadline for filing taxes ) You also do not include in your income the value of meals or meal money that qualifies as a de minimis fringe benefit. Deadline for filing taxes See De Minimis (Minimal) Benefits , earlier. Deadline for filing taxes Faculty lodging. Deadline for filing taxes   If you are an employee of an educational institution or an academic health center and you are provided with lodging that does not meet the three conditions given earlier, you still may not have to include the value of the lodging in income. Deadline for filing taxes However, the lodging must be qualified campus lodging, and you must pay an adequate rent. Deadline for filing taxes Academic health center. Deadline for filing taxes   This is an organization that meets the following conditions. Deadline for filing taxes Its principal purpose or function is to provide medical or hospital care or medical education or research. Deadline for filing taxes It receives payments for graduate medical education under the Social Security Act. Deadline for filing taxes One of its principal purposes or functions is to provide and teach basic and clinical medical science and research using its own faculty. Deadline for filing taxes Qualified campus lodging. Deadline for filing taxes   Qualified campus lodging is lodging furnished to you, your spouse, or one of your dependents by, or on behalf of, the institution or center for use as a home. Deadline for filing taxes The lodging must be located on or near a campus of the educational institution or academic health center. Deadline for filing taxes Adequate rent. Deadline for filing taxes   The amount of rent you pay for the year for qualified campus lodging is considered adequate if it is at least equal to the lesser of: 5% of the appraised value of the lodging, or The average of rentals paid by individuals (other than employees or students) for comparable lodging held for rent by the educational institution. Deadline for filing taxes If the amount you pay is less than the lesser of these amounts, you must include the difference in your income. Deadline for filing taxes   The lodging must be appraised by an independent appraiser and the appraisal must be reviewed on an annual basis. Deadline for filing taxes Example. Deadline for filing taxes Carl Johnson, a sociology professor for State University, rents a home from the university that is qualified campus lodging. Deadline for filing taxes The house is appraised at $200,000. Deadline for filing taxes The average rent paid for comparable university lodging by persons other than employees or students is $14,000 a year. Deadline for filing taxes Carl pays an annual rent of $11,000. Deadline for filing taxes Carl does not include in his income any rental value because the rent he pays equals at least 5% of the appraised value of the house (5% × $200,000 = $10,000). Deadline for filing taxes If Carl paid annual rent of only $8,000, he would have to include $2,000 in his income ($10,000 − $8,000). Deadline for filing taxes Moving Expense Reimbursements In most cases, if your employer pays for your moving expenses (either directly or indirectly) and the expenses would have been deductible if you paid them yourself, the value is not included in your income. Deadline for filing taxes See Publication 521 for more information. Deadline for filing taxes No-Additional-Cost Services The value of services you receive from your employer for free, at cost, or for a reduced price is not included in your income if your employer: Offers the same service for sale to customers in the ordinary course of the line of business in which you work, and Does not have a substantial additional cost (including any sales income given up) to provide you with the service (regardless of what you paid for the service). Deadline for filing taxes In most cases, no-additional-cost services are excess capacity services, such as airline, bus, or train tickets, hotel rooms, and telephone services. Deadline for filing taxes Example. Deadline for filing taxes You are employed as a flight attendant for a company that owns both an airline and a hotel chain. Deadline for filing taxes Your employer allows you to take personal flights (if there is an unoccupied seat) and stay in any one of their hotels (if there is an unoccupied room) at no cost to you. Deadline for filing taxes The value of the personal flight is not included in your income. Deadline for filing taxes However, the value of the hotel room is included in your income because you do not work in the hotel business. Deadline for filing taxes Retirement Planning Services If your employer has a qualified retirement plan, qualified retirement planning services provided to you (and your spouse) by your employer are not included in your income. Deadline for filing taxes Qualified services include retirement planning advice, information about your employer's retirement plan, and information about how the plan may fit into your overall individual retirement income plan. Deadline for filing taxes You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. Deadline for filing taxes Also, see Financial Counseling Fees , earlier. Deadline for filing taxes Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. Deadline for filing taxes A qualified transportation fringe benefit is: Transportation in a commuter highway vehicle (such as a van) between your home and work place, A transit pass, Qualified parking, or Qualified bicycle commuting reimbursement. Deadline for filing taxes Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. Deadline for filing taxes However, cash reimbursement for a transit pass is excludable only if a voucher or similar item that can be exchanged only for a transit pass is not readily available for direct distribution to you. Deadline for filing taxes Exclusion limit. Deadline for filing taxes   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. Deadline for filing taxes   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. Deadline for filing taxes   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. Deadline for filing taxes   If the benefits have a value that is more than these limits, the excess must be included in your income. Deadline for filing taxes You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. Deadline for filing taxes Commuter highway vehicle. Deadline for filing taxes   This is a highway vehicle that seats at least six adults (not including the driver). Deadline for filing taxes At least 80% of the vehicle's mileage must reasonably be expected to be: For transporting employees between their homes and work place, and On trips during which employees occupy at least half of the vehicle's adult seating capacity (not including the driver). Deadline for filing taxes Transit pass. Deadline for filing taxes   This is any pass, token, farecard, voucher, or similar item entitling a person to ride mass transit (whether public or private) free or at a reduced rate or to ride in a commuter highway vehicle operated by a person in the business of transporting persons for compensation. Deadline for filing taxes Qualified parking. Deadline for filing taxes   This is parking provided to an employee at or near the employer's place of business. Deadline for filing taxes It also includes parking provided on or near a location from which the employee commutes to work by mass transit, in a commuter highway vehicle, or by carpool. Deadline for filing taxes It does not include parking at or near the employee's home. Deadline for filing taxes Qualified bicycle commuting. Deadline for filing taxes   This is reimbursement based on the number of qualified bicycle commuting months for the year. Deadline for filing taxes A qualified bicycle commuting month is any month you use the bicycle regularly for a substantial portion of the travel between your home and place of employment and you do not receive any of the other qualified transportation fringe benefits. Deadline for filing taxes The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. Deadline for filing taxes Tuition Reduction You can exclude a qualified tuition reduction from your income. Deadline for filing taxes This is the amount of a reduction in tuition: For education (below graduate level) furnished by an educational institution to an employee, former employee who retired or became disabled, or his or her spouse and dependent children. Deadline for filing taxes For education furnished to a graduate student at an educational institution if the graduate student is engaged in teaching or research activities for that institution. Deadline for filing taxes Representing payment for teaching, research, or other services if you receive the amount under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance program. Deadline for filing taxes For more information, see Publication 970. Deadline for filing taxes Working Condition Benefits If your employer provides you with a product or service and the cost of it would have been allowable as a business or depreciation deduction if you paid for it yourself, the cost is not included in your income. Deadline for filing taxes Example. Deadline for filing taxes You work as an engineer and your employer provides you with a subscription to an engineering trade magazine. Deadline for filing taxes The cost of the subscription is not included in your income because the cost would have been allowable to you as a business deduction if you had paid for the subscription yourself. Deadline for filing taxes Valuation of Fringe Benefits If a fringe benefit is included in your income, the amount included is generally its value determined under the general valuation rule or under the special valuation rules. Deadline for filing taxes For an exception, see Group-Term Life Insurance , earlier. Deadline for filing taxes General valuation rule. Deadline for filing taxes   You must include in your income the amount by which the fair market value of the fringe benefit is more than the sum of: The amount, if any, you paid for the benefit, plus The amount, if any, specifically excluded from your income by law. Deadline for filing taxes If you pay fair market value for a fringe benefit, no amount is included in your income. Deadline for filing taxes Fair market value. Deadline for filing taxes   The fair market value of a fringe benefit is determined by all the facts and circumstances. Deadline for filing taxes It is the amount you would have to pay a third party to buy or lease the benefit. Deadline for filing taxes This is determined without regard to: Your perceived value of the benefit, or The amount your employer paid for the benefit. Deadline for filing taxes Employer-provided vehicles. Deadline for filing taxes   If your employer provides a car (or other highway motor vehicle) to you, your personal use of the car is usually a taxable noncash fringe benefit. Deadline for filing taxes   Under the general valuation rules, the value of an employer-provided vehicle is the amount you would have to pay a third party to lease the same or a similar vehicle on the same or comparable terms in the same geographic area where you use the vehicle. Deadline for filing taxes An example of a comparable lease term is the amount of time the vehicle is available for your use, such as a 1-year period. Deadline for filing taxes The value cannot be determined by multiplying a cents-per-mile rate times the number of miles driven unless you prove the vehicle could have been leased on a cents-per-mile basis. Deadline for filing taxes Flights on employer-provided aircraft. Deadline for filing taxes   Under the general valuation rules, if your flight on an employer-provided piloted aircraft is primarily personal and you control the use of the aircraft for the flight, the value is the amount it would cost to charter the flight from a third party. Deadline for filing taxes   If there is more than one employee on the flight, the cost to charter the aircraft must be divided among those employees. Deadline for filing taxes The division must be based on all the facts, including which employee or employees control the use of the aircraft. Deadline for filing taxes Special valuation rules. Deadline for filing taxes   You generally can use a special valuation rule for a fringe benefit only if your employer uses the rule. Deadline for filing taxes If your employer uses a special valuation rule, you cannot use a different special rule to value that benefit. Deadline for filing taxes You always can use the general valuation rule discussed earlier, based on facts and circumstances, even if your employer uses a special rule. Deadline for filing taxes   If you and your employer use a special valuation rule, you must include in your income the amount your employer determines under the special rule minus the sum of: Any amount you repaid your employer, plus Any amount specifically excluded from income by law. Deadline for filing taxes The special valuation rules are the following. Deadline for filing taxes The automobile lease rule. Deadline for filing taxes The vehicle cents-per-mile rule. Deadline for filing taxes The commuting rule. Deadline for filing taxes The unsafe conditions commuting rule. Deadline for filing taxes The employer-operated eating-facility rule. Deadline for filing taxes   For more information on these rules, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Deadline for filing taxes    For information on the non-commercial flight and commercial flight valuation rules, see sections 1. Deadline for filing taxes 61-21(g) and 1. Deadline for filing taxes 61-21(h) of the regulations. Deadline for filing taxes Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. Deadline for filing taxes (Your employer can tell you whether your retirement plan is qualified. Deadline for filing taxes ) However, the cost of life insurance coverage included in the plan may have to be included. Deadline for filing taxes See Group-Term Life Insurance , earlier, under Fringe Benefits. Deadline for filing taxes If your employer pays into a nonqualified plan for you, you generally must include the contributions in your income as wages for the tax year in which the contributions are made. Deadline for filing taxes However, if your interest in the plan is not transferable or is subject to a substantial risk of forfeiture (you have a good chance of losing it) at the time of the contribution, you do not have to include the value of your interest in your income until it is transferable or is no longer subject to a substantial risk of forfeiture. Deadline for filing taxes For information on distributions from retirement plans, see Publication 575 (or Publication 721, Tax Guide to U. Deadline for filing taxes S. Deadline for filing taxes Civil Service Retirement Benefits, if you are a federal employee or retiree). Deadline for filing taxes Elective Deferrals If you are covered by certain kinds of retirement plans, you can choose to have part of your compensation contributed by your employer to a retirement fund, rather than have it paid to you. Deadline for filing taxes The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. Deadline for filing taxes An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. Deadline for filing taxes However, it is included in wages subject to social security and Medicare taxes. Deadline for filing taxes Elective deferrals include elective contributions to the following retirement plans. Deadline for filing taxes Cash or deferred arrangements (section 401(k) plans). Deadline for filing taxes The Thrift Savings Plan for federal employees. Deadline for filing taxes Salary reduction simplified employee pension plans (SARSEP). Deadline for filing taxes Savings incentive match plans for employees (SIMPLE plans). Deadline for filing taxes Tax-sheltered annuity plans (403(b) plans). Deadline for filing taxes Section 501(c)(18)(D) plans. Deadline for filing taxes (But see Reporting by employer , later. Deadline for filing taxes ) Section 457 plans. Deadline for filing taxes Qualified automatic contribution arrangements. Deadline for filing taxes   Under a qualified automatic contribution arrangement, your employer can treat you as having elected to have a part of your compensation contributed to a section 401(k) plan. Deadline for filing taxes You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. Deadline for filing taxes The notice must explain: Your rights to elect not to have elective contributions made, or to have contributions made at a different percentage, and How contributions made will be invested in the absence of any investment decision by you. Deadline for filing taxes   You must be given a reasonable period of time after receipt of the notice and before the first elective contribution is made to make an election with respect to the contributions. Deadline for filing taxes Overall limit on deferrals. Deadline for filing taxes   For 2013, in most cases, you should not have deferred more than a total of $17,500 of contributions to the plans listed in (1) through (3), earlier. Deadline for filing taxes The specific plan limits for the plans listed in (4) through (7), earlier, are discussed later. Deadline for filing taxes Amounts deferred under specific plan limits are part of the overall limit on deferrals. Deadline for filing taxes   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. Deadline for filing taxes However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. Deadline for filing taxes Catch-up contributions. Deadline for filing taxes   You may be allowed catch-up contributions (additional elective deferrals) if you are age 50 or older by the end of your tax year. Deadline for filing taxes For more information about catch-up contributions to 403(b) plans, see chapter 6 of Publication 571, Tax Sheltered Annuity Plans. Deadline for filing taxes   For more information about additional elective deferrals to: SEPs (SARSEPs), see Salary Reduction Simplified Employee Pension in chapter 2 of Publication 560, Retirement Plans for Small Business. Deadline for filing taxes SIMPLE plans, see How Much Can Be Contributed on Your Behalf? in chapter 3 of Publication 590. Deadline for filing taxes Section 457 plans, see Limit for deferrals under section 457 plans , later. Deadline for filing taxes Limit for deferrals under SIMPLE plans. Deadline for filing taxes   If you are a participant in a SIMPLE plan, you generally should not have deferred more than $12,000 in 2013. Deadline for filing taxes Amounts you defer under a SIMPLE plan count toward the overall limit ($17,500 for 2013) and may affect the amount you can defer under other elective deferral plans. Deadline for filing taxes Limit for tax-sheltered annuities. Deadline for filing taxes   If you are a participant in a tax-sheltered annuity plan (403(b) plan), the limit on elective deferrals for 2013 generally is $17,500. Deadline for filing taxes However, if you have at least 15 years of service with a public school system, a hospital, a home health service agency, a health and welfare service agency, a church, or a convention or association of churches (or associated organization), the limit on elective deferrals is increased by the least of the following amounts. Deadline for filing taxes $3,000, $15,000, reduced by the sum of: The additional pre-tax elective deferrals made in earlier years because of this rule, plus The aggregate amount of designated Roth contributions permitted for prior tax years because of this rule, or $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years. Deadline for filing taxes   If you qualify for the 15-year rule, your elective deferrals under this limit can be as high as $20,500 for 2013. Deadline for filing taxes   For more information, see Publication 571. Deadline for filing taxes Limit for deferral under section 501(c)(18) plans. Deadline for filing taxes   If you are a participant in a section 501(c)(18) plan (a trust created before June 25, 1959, funded only by employee contributions), you should have deferred no more than the lesser of $7,000 or 25% of your compensation. Deadline for filing taxes Amounts you defer under a section 501(c)(18) plan count toward the overall limit ($17,500 in 2013) and may affect the amount you can defer under other elective deferral plans. Deadline for filing taxes Limit for deferrals under section 457 plans. Deadline for filing taxes   If you are a participant in a section 457 plan (a deferred compensation plan for employees of state or local governments or tax-exempt organizations), you should have deferred no more than the lesser of your includible compensation or $17,500 in 2013. Deadline for filing taxes However, if you are within 3 years of normal retirement age, you may be allowed an increased limit if the plan allows it. Deadline for filing taxes See Increased limit , later. Deadline for filing taxes Includible compensation. Deadline for filing taxes   This is the pay you received for the year from the employer who maintained the section 457 plan. Deadline for filing taxes In most cases, it includes all the following payments. Deadline for filing taxes Wages and salaries. Deadline for filing taxes Fees for professional services. Deadline for filing taxes The value of any employer-provided qualified transportation fringe benefit (defined under Transportation , earlier) that is not included in your income. Deadline for filing taxes Other amounts received (cash or noncash) for personal services you performed, including, but not limited to, the following items. Deadline for filing taxes Commissions and tips. Deadline for filing taxes Fringe benefits. Deadline for filing taxes Bonuses. Deadline for filing taxes Employer contributions (elective deferrals) to: The section 457 plan. Deadline for filing taxes Qualified cash or deferred arrangements (section 401(k) plans) that are not included in your income. Deadline for filing taxes A salary reduction simplified employee pension (SARSEP). Deadline for filing taxes A tax-sheltered annuity (section 403(b) plan). Deadline for filing taxes A savings incentive match plan for employees (SIMPLE plan). Deadline for filing taxes A section 125 cafeteria plan. Deadline for filing taxes   Instead of using the amounts listed earlier to determine your includible compensation, your employer can use any of the following amounts. Deadline for filing taxes Your wages as defined for income tax withholding purposes. Deadline for filing taxes Your wages as reported in box 1 of Form W-2. Deadline for filing taxes Your wages that are subject to social security withholding (including elective deferrals). Deadline for filing taxes Increased limit. Deadline for filing taxes   During any, or all, of the last 3 years ending before you reach normal retirement age under the plan, your plan may provide that your limit is the lesser of: Twice the annual limit ($35,000 for 2013), or The basic annual limit plus the amount of the basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions). Deadline for filing taxes Catch-up contributions. Deadline for filing taxes   You generally can have additional elective deferrals made to your governmental section 457 plan if: You reached age 50 by the end of the year, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions. Deadline for filing taxes If you qualify, your limit can be the lesser of your includible compensation or $17,500, plus $5,500. Deadline for filing taxes However, if you are within 3 years of retirement age and your plan provides the increased limit, discussed earlier, that limit may be higher. Deadline for filing taxes Designated Roth contributions. Deadline for filing taxes   Employers with section 401(k) and section 403(b) plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals to the plan designated as after-tax Roth contributions. Deadline for filing taxes Designated Roth contributions are treated as elective deferrals, except that they are included in income. Deadline for filing taxes Your retirement plan must maintain separate accounts and recordkeeping for the designated Roth contributions. Deadline for filing taxes   Qualified distributions from a Roth plan are not included in income. Deadline for filing taxes In most cases, a distribution made before the end of the 5-tax-year period beginning with the first tax year for which you made a designated Roth contribution to the plan is not a qualified distribution. Deadline for filing taxes Reporting by employer. Deadline for filing taxes   Your employer generally should not include elective deferrals in your wages in box 1 of Form W-2. Deadline for filing taxes Instead, your employer should mark the Retirement plan checkbox in box 13 and show the total amount deferred in box 12. Deadline for filing taxes Section 501(c)(18)(D) contributions. Deadline for filing taxes   Wages shown in box 1 of your Form W-2 should not have been reduced for contributions you made to a section 501(c)(18)(D) retirement plan. Deadline for filing taxes The amount you contributed should be identified with code “H” in box 12. Deadline for filing taxes You may deduct the amount deferred subject to the limits that apply. Deadline for filing taxes Include your deduction in the total on Form 1040, line 36. Deadline for filing taxes Enter the amount and “501(c)(18)(D)” on the dotted line next to line 36. Deadline for filing taxes Designated Roth contributions. Deadline for filing taxes    These contributions are elective deferrals but are included in your wages in box 1 of Form W-2. Deadline for filing taxes Designated Roth contributions to a section 401(k) plan are reported using code AA in box 12, or, for section 403(b) plans, code BB in box 12. Deadline for filing taxes Excess deferrals. Deadline for filing taxes   If your deferrals exceed the limit, you must notify your plan by the date required by the plan. Deadline for filing taxes If the plan permits, the excess amount will be distributed to you. Deadline for filing taxes If you participate in more than one plan, you can have the excess paid out of any of the plans that permit these distributions. Deadline for filing taxes You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. Deadline for filing taxes The plan then must pay you the amount of the excess, along with any income earned on that amount, by April 15 of the following year. Deadline for filing taxes   You must include the excess deferral in your income for the year of the deferral unless you have an excess deferral of a designated Roth contribution. Deadline for filing taxes File Form 1040 to add the excess deferral amount to your wages on line 7. Deadline for filing taxes Do not use Form 1040A or Form 1040EZ to report excess deferral amounts. Deadline for filing taxes Excess not distributed. Deadline for filing taxes   If you do not take out the excess amount, you cannot include it in the cost of the contract even though you included it in your income. Deadline for filing taxes Therefore, you are taxed twice on the excess deferral left in the plan—once when you contribute it, and again when you receive it as a distribution. Deadline for filing taxes Excess distributed to you. Deadline for filing taxes   If you take out the excess after the year of the deferral and you receive the corrective distribution by April 15 of the following year, do not include it in income again in the year you receive it. Deadline for filing taxes If you receive it later, you must include it in income in both the year of the deferral and the year you receive it. Deadline for filing taxes Any income on the excess deferral taken out is taxable in the tax year in which you take it out. Deadline for filing taxes If you take out part of the excess deferral and the income on it, allocate the distribution proportionately between the excess deferral and the income. Deadline for filing taxes    You should receive a Form 1099-R for the year in which the excess deferral is distributed to you. Deadline for filing taxes Use the following rules to report a corrective distribution shown on Form 1099-R for 2013. Deadline for filing taxes If the distribution was for a 2013 excess deferral, your Form 1099-R should have the code “8” in box 7. Deadline for filing taxes Add the excess deferral amount to your wages on your 2013 tax return. Deadline for filing taxes If the distribution was for a 2013 excess deferral to a designated Roth account, your Form 1099-R should have code “B” in box 7. Deadline for filing taxes Do not add this amount to your wages on your 2013 return. Deadline for filing taxes If the distribution was for a 2012 excess deferral, your Form 1099-R should have the code “P” in box 7. Deadline for filing taxes If you did not add the excess deferral amount to your wages on your 2012 tax return, you must file an amended return on Form 1040X, Amended U. Deadline for filing taxes S. Deadline for filing taxes Individual Income Tax Return. Deadline for filing taxes If you did not receive the distribution by April 15, 2013, you also must add it to your wages on your 2013 tax return. Deadline for filing taxes If the distribution was for the income earned on an excess deferral, your Form 1099-R should have the code “8” in box 7. Deadline for filing taxes Add the income amount to your wages on your 2013 income tax return, regardless of when the excess deferral was made. Deadline for filing taxes Report a loss on a corrective distribution of an excess deferral in the year the excess amount (reduced by the loss) is distributed to you. Deadline for filing taxes Include the loss as a negative amount on Form 1040, line 21 and identify it as “Loss on Excess Deferral Distribution. Deadline for filing taxes ”    Even though a corrective distribution of excess deferrals is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Deadline for filing taxes It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Deadline for filing taxes Excess Contributions If you are a highly compensated employee, the total of your elective deferrals and other contributions made for you for any year under a section 401(k) plan or SARSEP can be, as a percentage of pay, no more than 125% of the average deferral percentage (ADP) of all eligible non-highly compensated employees. Deadline for filing taxes If the total contributed to the plan is more than the amount allowed under the ADP test, the excess contributions must be either distributed to you or recharacterized as after-tax employee contributions by treating them as distributed to you and then contributed by you to the plan. Deadline for filing taxes You must include the excess contributions in your income as wages on Form 1040, line 7. Deadline for filing taxes You cannot use Form 1040A or Form 1040EZ to report excess contribution amounts. Deadline for filing taxes If you receive a corrective distribution of excess contributions (and allocable income), it is included in your income in the year of the distribution. Deadline for filing taxes The allocable income is the amount of gain or loss through the end of the plan year for which the contribution was made that is allocable to the excess contributions. Deadline for filing taxes You should receive a Form 1099-R for the year the excess contributions are distributed to you. Deadline for filing taxes Add the distribution to your wages for that year. Deadline for filing taxes Even though a corrective distribution of excess contributions is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Deadline for filing taxes It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Deadline for filing taxes Excess Annual Additions The amount contributed in 2013 to a defined contribution plan is generally limited to the lesser of 100% of your compensation or $51,000. Deadline for filing taxes Under certain circumstances, contributions that exceed these limits (excess annual additions) may be corrected by a distribution of your elective deferrals or a return of your after-tax contributions and earnings from these contributions. Deadline for filing taxes A corrective payment of excess annual additions consisting of elective deferrals or earnings from your after-tax contributions is fully taxable in the year paid. Deadline for filing taxes A corrective payment consisting of your after-tax contributions is not taxable. Deadline for filing taxes If you received a corrective payment of excess annual additions, you should receive a separate Form 1099-R for the year of the payment with the code “E” in box 7. Deadline for filing taxes Report the total payment shown in box 1 of Form 1099-R on line 16a of Form 1040 or line 12a of Form 1040A. Deadline for filing taxes Report the taxable amount shown in box 2a of Form 1099-R on line 16b of Form 1040 or line 12b of Form 1040A. Deadline for filing taxes Even though a corrective distribution of excess annual additions is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Deadline for filing taxes It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Deadline for filing taxes Stock Options If you receive an option to buy or sell stock or other property as payment for your services, you may have income when you receive the option (the grant), when you exercise the option (use it to buy or sell the stock or other property), or when you sell or otherwise dispose of the option or property acquired through exercise of the option. Deadline for filing taxes The timing, type, and amount of income inclusion depend on whether you receive a nonstatutory stock option or a statutory stock option. Deadline for filing taxes Your employer can tell you which kind of option you hold. Deadline for filing taxes Nonstatutory Stock Options Grant of option. Deadline for filing taxes   If you are granted a nonstatutory stock option, you may have income when you receive the option. Deadline for filing taxes The amount of income to include and the time to include it depend on whether the fair market value of the option can be readily determined. Deadline for filing taxes The fair market value of an option can be readily determined if it is actively traded on an established market. Deadline for filing taxes    The fair market value of an option that is not traded on an established market can be readily determined only if all of the following conditions exist. Deadline for filing taxes You can transfer the option. Deadline for filing taxes You can exercise the option immediately in full. Deadline for filing taxes The option or the property subject to the option is not subject to any condition or restriction (other than a condition to secure payment of the purchase price) that has a significant effect on the fair market value of the option. Deadline for filing taxes The fair market value of the option privilege can be readily determined. Deadline for filing taxes The option privilege for an option to buy is the opportunity to benefit during the option's exercise period from any increase in the value of property subject to the option without risking any capital. Deadline for filing taxes For example, if during the exercise period the fair market value of stock subject to an option is greater than the option's exercise price, a profit may be realized by exercising the option and immediately selling the stock at its higher value. Deadline for filing taxes The option privilege for an option to sell is the opportunity to benefit during the exercise period from a decrease in the value of the property subject to the option. Deadline for filing taxes If you or a member of your family is an officer, director, or more-than-10% owner of an expatriated corporation, you may owe an excise tax on the value of nonstatutory options and other stock-based compensation from that corporation. Deadline for filing taxes For more information on the excise tax, see Internal Revenue Code section 4985. Deadline for filing taxes Option with readily determinable value. Deadline for filing taxes   If you receive a nonstatutory stock option that has a readily determinable fair market value at the time it is granted to you, the option is treated like other property received as compensation. Deadline for filing taxes See Restricted Property , later, for rules on how much income to include and when to include it. Deadline for filing taxes However, the rule described in that discussion for choosing to include the value of property in your income for the year of the transfer does not apply to a nonstatutory option. Deadline for filing taxes Option without readily determinable value. Deadline for filing taxes   If the fair market value of the option is not readily determinable at the time it is granted to you (even if it is determined later), you do not have income until you exercise or transfer the option. Deadline for filing taxes    Exercise or transfer of option. Deadline for filing taxes   When you exercise a nonstatutory stock option, the amount to include in your income depends on whether the option had a readily determinable value. Deadline for filing taxes Option with readily determinable value. Deadline for filing taxes   When you exercise a nonstatutory stock option that had a readily determinable value at the time the option was granted, you do not have to include any amount in income. Deadline for filing taxes Option without readily determinable value. Deadline for filing taxes   When you exercise a nonstatutory stock option that did not have a readily determinable value at the time the option was granted, the restricted prope