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Fillable 1040x

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Fillable 1040x

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    The Fillable 1040x

    Fillable 1040x 7. Fillable 1040x   Interest Income Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationSSN for joint account. Fillable 1040x Custodian account for your child. Fillable 1040x Penalty for failure to supply SSN. Fillable 1040x Reporting backup withholding. Fillable 1040x Savings account with parent as trustee. Fillable 1040x Interest not reported on Form 1099-INT. Fillable 1040x Nominees. Fillable 1040x Incorrect amount. Fillable 1040x Information reporting requirement. Fillable 1040x Taxable InterestInterest subject to penalty for early withdrawal. Fillable 1040x Money borrowed to invest in certificate of deposit. Fillable 1040x U. Fillable 1040x S. Fillable 1040x Savings Bonds Education Savings Bond Program U. Fillable 1040x S. Fillable 1040x Treasury Bills, Notes, and Bonds Bonds Sold Between Interest Dates Insurance State or Local Government Obligations Original Issue Discount (OID) When To Report Interest IncomeConstructive receipt. Fillable 1040x How To Report Interest IncomeSchedule B (Form 1040A or 1040). Fillable 1040x Reporting tax-exempt interest. Fillable 1040x U. Fillable 1040x S. Fillable 1040x savings bond interest previously reported. Fillable 1040x Reminder Foreign-source income. Fillable 1040x  If you are a U. Fillable 1040x S. Fillable 1040x citizen with interest income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt by U. Fillable 1040x S. Fillable 1040x law. Fillable 1040x This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. Fillable 1040x Introduction This chapter discusses the following topics. Fillable 1040x Different types of interest income. Fillable 1040x What interest is taxable and what interest is nontaxable. Fillable 1040x When to report interest income. Fillable 1040x How to report interest income on your tax return. Fillable 1040x In general, any interest you receive or that is credited to your account and can be withdrawn is taxable income. Fillable 1040x Exceptions to this rule are discussed later in this chapter. Fillable 1040x You may be able to deduct expenses you have in earning this income on Schedule A (Form 1040) if you itemize your deductions. Fillable 1040x See Money borrowed to invest in certificate of deposit , later, and chapter 28. Fillable 1040x Useful Items - You may want to see: Publication 537 Installment Sales 550 Investment Income and Expenses 1212 Guide to Original Issue Discount (OID) Instruments Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends 8815 Exclusion of Interest From Series EE and I U. Fillable 1040x S. Fillable 1040x Savings Bonds Issued After 1989 8818 Optional Form To Record Redemption of Series EE and I U. Fillable 1040x S. Fillable 1040x Savings Bonds Issued After 1989 General Information A few items of general interest are covered here. Fillable 1040x Recordkeeping. Fillable 1040x You should keep a list showing sources and interest amounts received during the year. Fillable 1040x Also, keep the forms you receive showing your interest income (Forms 1099-INT, for example) as an important part of your records. Fillable 1040x Tax on unearned income of certain children. Fillable 1040x    Part of a child's 2013 unearned income may be taxed at the parent's tax rate. Fillable 1040x If so, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. Fillable 1040x If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Fillable 1040x   Some parents can choose to include the child's interest and dividends on the parent's return. Fillable 1040x If you can, use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. Fillable 1040x   For more information about the tax on unearned income of children and the parents' election, see chapter 31. Fillable 1040x Beneficiary of an estate or trust. Fillable 1040x   Interest you receive as a beneficiary of an estate or trust is generally taxable income. Fillable 1040x You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Fillable 1040x , from the fiduciary. Fillable 1040x Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. Fillable 1040x Social security number (SSN). Fillable 1040x   You must give your name and SSN or individual tax identification number (ITIN) to any person required by federal tax law to make a return, statement, or other document that relates to you. Fillable 1040x This includes payers of interest. Fillable 1040x If you do not give your SSN or ITIN to the payer of interest, you may have to pay a penalty. Fillable 1040x SSN for joint account. Fillable 1040x   If the funds in a joint account belong to one person, list that person's name first on the account and give that person's SSN to the payer. Fillable 1040x (For information on who owns the funds in a joint account, see Joint accounts , later. Fillable 1040x ) If the joint account contains combined funds, give the SSN of the person whose name is listed first on the account. Fillable 1040x This is because only one name and SSN can be shown on Form 1099. Fillable 1040x   These rules apply both to joint ownership by a married couple and to joint ownership by other individuals. Fillable 1040x For example, if you open a joint savings account with your child using funds belonging to the child, list the child's name first on the account and give the child's SSN. Fillable 1040x Custodian account for your child. Fillable 1040x   If your child is the actual owner of an account that is recorded in your name as custodian for the child, give the child's SSN to the payer. Fillable 1040x For example, you must give your child's SSN to the payer of interest on an account owned by your child, even though the interest is paid to you as custodian. Fillable 1040x Penalty for failure to supply SSN. Fillable 1040x   If you do not give your SSN to the payer of interest, you may have to pay a penalty. Fillable 1040x See Failure to supply SSN under Penalties in chapter 1. Fillable 1040x Backup withholding also may apply. Fillable 1040x Backup withholding. Fillable 1040x   Your interest income is generally not subject to regular withholding. Fillable 1040x However, it may be subject to backup withholding to ensure that income tax is collected on the income. Fillable 1040x Under backup withholding, the payer of interest must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. Fillable 1040x   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. Fillable 1040x For more information, see Backup Withholding in chapter 4. Fillable 1040x Reporting backup withholding. Fillable 1040x   If backup withholding is deducted from your interest income, the payer must give you a Form 1099-INT for the year indicating the amount withheld. Fillable 1040x The Form 1099-INT will show any backup withholding as “Federal income tax withheld. Fillable 1040x ” Joint accounts. Fillable 1040x   If two or more persons hold property (such as a savings account or bond) as joint tenants, tenants by the entirety, or tenants in common, each person's share of any interest from the property is determined by local law. Fillable 1040x Income from property given to a child. Fillable 1040x   Property you give as a parent to your child under the Model Gifts of Securities to Minors Act, the Uniform Gifts to Minors Act, or any similar law becomes the child's property. Fillable 1040x   Income from the property is taxable to the child, except that any part used to satisfy a legal obligation to support the child is taxable to the parent or guardian having that legal obligation. Fillable 1040x Savings account with parent as trustee. Fillable 1040x   Interest income from a savings account opened for a minor child, but placed in the name and subject to the order of the parents as trustees, is taxable to the child if, under the law of the state in which the child resides, both of the following are true. Fillable 1040x The savings account legally belongs to the child. Fillable 1040x The parents are not legally permitted to use any of the funds to support the child. Fillable 1040x Form 1099-INT. Fillable 1040x   Interest income is generally reported to you on Form 1099-INT, or a similar statement, by banks, savings and loans, and other payers of interest. Fillable 1040x This form shows you the interest you received during the year. Fillable 1040x Keep this form for your records. Fillable 1040x You do not have to attach it to your tax return. Fillable 1040x   Report on your tax return the total interest income you receive for the tax year. Fillable 1040x Interest not reported on Form 1099-INT. Fillable 1040x   Even if you do not receive Form 1099-INT, you must still report all of your interest income. Fillable 1040x For example, you may receive distributive shares of interest from partnerships or S corporations. Fillable 1040x This interest is reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deduction, Credits, etc. Fillable 1040x , or Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. Fillable 1040x Nominees. Fillable 1040x   Generally, if someone receives interest as a nominee for you, that person must give you a Form 1099-INT showing the interest received on your behalf. Fillable 1040x   If you receive a Form 1099-INT that includes amounts belonging to another person, see the discussion on nominee distributions under How To Report Interest Income in chapter 1 of Publication 550, or Schedule B (Form 1040A or 1040) instructions. Fillable 1040x Incorrect amount. Fillable 1040x   If you receive a Form 1099-INT that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. Fillable 1040x The new Form 1099-INT you receive will be marked “Corrected. Fillable 1040x ” Form 1099-OID. Fillable 1040x   Reportable interest income also may be shown on Form 1099-OID, Original Issue Discount. Fillable 1040x For more information about amounts shown on this form, see Original Issue Discount (OID) , later in this chapter. Fillable 1040x Exempt-interest dividends. Fillable 1040x   Exempt-interest dividends you receive from a mutual fund or other regulated investment company, including those received from a qualified fund of funds in any tax year beginning after December 22, 2010, are not included in your taxable income. Fillable 1040x (However, see Information reporting requirement , next. Fillable 1040x ) Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. Fillable 1040x You do not reduce your basis for distributions that are exempt-interest dividends. Fillable 1040x Information reporting requirement. Fillable 1040x   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file. Fillable 1040x This is an information reporting requirement and does not change the exempt-interest dividends into taxable income. Fillable 1040x Note. Fillable 1040x Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. Fillable 1040x See Alternative Minimum Tax (AMT) in chapter 30 for more information. Fillable 1040x Chapter 1 of Publication 550 contains a discussion on private activity bonds under State or Local Government Obligations. Fillable 1040x Interest on VA dividends. Fillable 1040x   Interest on insurance dividends left on deposit with the Department of Veterans Affairs (VA) is not taxable. Fillable 1040x This includes interest paid on dividends on converted United States Government Life Insurance and on National Service Life Insurance policies. Fillable 1040x Individual retirement arrangements (IRAs). Fillable 1040x   Interest on a Roth IRA generally is not taxable. Fillable 1040x Interest on a traditional IRA is tax deferred. Fillable 1040x You generally do not include it in your income until you make withdrawals from the IRA. Fillable 1040x See chapter 17. Fillable 1040x Taxable Interest Taxable interest includes interest you receive from bank accounts, loans you make to others, and other sources. Fillable 1040x The following are some sources of taxable interest. Fillable 1040x Dividends that are actually interest. Fillable 1040x   Certain distributions commonly called dividends are actually interest. Fillable 1040x You must report as interest so-called “dividends” on deposits or on share accounts in: Cooperative banks, Credit unions, Domestic building and loan associations, Domestic savings and loan associations, Federal savings and loan associations, and Mutual savings banks. Fillable 1040x  The “dividends” will be shown as interest income on Form 1099-INT. Fillable 1040x Money market funds. Fillable 1040x   Money market funds pay dividends and are offered by nonbank financial institutions, such as mutual funds and stock brokerage houses. Fillable 1040x Generally, amounts you receive from money market funds should be reported as dividends, not as interest. Fillable 1040x Certificates of deposit and other deferred interest accounts. Fillable 1040x   If you open any of these accounts, interest may be paid at fixed intervals of 1 year or less during the term of the account. Fillable 1040x You generally must include this interest in your income when you actually receive it or are entitled to receive it without paying a substantial penalty. Fillable 1040x The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. Fillable 1040x If interest is deferred for more than 1 year, see Original Issue Discount (OID) , later. Fillable 1040x Interest subject to penalty for early withdrawal. Fillable 1040x   If you withdraw funds from a deferred interest account before maturity, you may have to pay a penalty. Fillable 1040x You must report the total amount of interest paid or credited to your account during the year, without subtracting the penalty. Fillable 1040x See Penalty on early withdrawal of savings in chapter 1 of Publication 550 for more information on how to report the interest and deduct the penalty. Fillable 1040x Money borrowed to invest in certificate of deposit. Fillable 1040x   The interest you pay on money borrowed from a bank or savings institution to meet the minimum deposit required for a certificate of deposit from the institution and the interest you earn on the certificate are two separate items. Fillable 1040x You must report the total interest you earn on the certificate in your income. Fillable 1040x If you itemize deductions, you can deduct the interest you pay as investment interest, up to the amount of your net investment income. Fillable 1040x See Interest Expenses in chapter 3 of Publication 550. Fillable 1040x Example. Fillable 1040x You deposited $5,000 with a bank and borrowed $5,000 from the bank to make up the $10,000 minimum deposit required to buy a 6-month certificate of deposit. Fillable 1040x The certificate earned $575 at maturity in 2013, but you received only $265, which represented the $575 you earned minus $310 interest charged on your $5,000 loan. Fillable 1040x The bank gives you a Form 1099-INT for 2013 showing the $575 interest you earned. Fillable 1040x The bank also gives you a statement showing that you paid $310 interest for 2013. Fillable 1040x You must include the $575 in your income. Fillable 1040x If you itemize your deductions on Schedule A (Form 1040), you can deduct $310, subject to the net investment income limit. Fillable 1040x Gift for opening account. Fillable 1040x   If you receive noncash gifts or services for making deposits or for opening an account in a savings institution, you may have to report the value as interest. Fillable 1040x   For deposits of less than $5,000, gifts or services valued at more than $10 must be reported as interest. Fillable 1040x For deposits of $5,000 or more, gifts or services valued at more than $20 must be reported as interest. Fillable 1040x The value is determined by the cost to the financial institution. Fillable 1040x Example. Fillable 1040x You open a savings account at your local bank and deposit $800. Fillable 1040x The account earns $20 interest. Fillable 1040x You also receive a $15 calculator. Fillable 1040x If no other interest is credited to your account during the year, the Form 1099-INT you receive will show $35 interest for the year. Fillable 1040x You must report $35 interest income on your tax return. Fillable 1040x Interest on insurance dividends. Fillable 1040x   Interest on insurance dividends left on deposit with an insurance company that can be withdrawn annually is taxable to you in the year it is credited to your account. Fillable 1040x However, if you can withdraw it only on the anniversary date of the policy (or other specified date), the interest is taxable in the year that date occurs. Fillable 1040x Prepaid insurance premiums. Fillable 1040x   Any increase in the value of prepaid insurance premiums, advance premiums, or premium deposit funds is interest if it is applied to the payment of premiums due on insurance policies or made available for you to withdraw. Fillable 1040x U. Fillable 1040x S. Fillable 1040x obligations. Fillable 1040x   Interest on U. Fillable 1040x S. Fillable 1040x obligations, such as U. Fillable 1040x S. Fillable 1040x Treasury bills, notes, and bonds, issued by any agency or instrumentality of the United States is taxable for federal income tax purposes. Fillable 1040x Interest on tax refunds. Fillable 1040x   Interest you receive on tax refunds is taxable income. Fillable 1040x Interest on condemnation award. Fillable 1040x   If the condemning authority pays you interest to compensate you for a delay in payment of an award, the interest is taxable. Fillable 1040x Installment sale payments. Fillable 1040x   If a contract for the sale or exchange of property provides for deferred payments, it also usually provides for interest payable with the deferred payments. Fillable 1040x That interest is taxable when you receive it. Fillable 1040x If little or no interest is provided for in a deferred payment contract, part of each payment may be treated as interest. Fillable 1040x See Unstated Interest and Original Issue Discount in Publication 537, Installment Sales. Fillable 1040x Interest on annuity contract. Fillable 1040x   Accumulated interest on an annuity contract you sell before its maturity date is taxable. Fillable 1040x Usurious interest. Fillable 1040x   Usurious interest is interest charged at an illegal rate. Fillable 1040x This is taxable as interest unless state law automatically changes it to a payment on the principal. Fillable 1040x Interest income on frozen deposits. Fillable 1040x   Exclude from your gross income interest on frozen deposits. Fillable 1040x A deposit is frozen if, at the end of the year, you cannot withdraw any part of the deposit because: The financial institution is bankrupt or insolvent, or The state where the institution is located has placed limits on withdrawals because other financial institutions in the state are bankrupt or insolvent. Fillable 1040x   The amount of interest you must exclude is the interest that was credited on the frozen deposits minus the sum of: The net amount you withdrew from these deposits during the year, and The amount you could have withdrawn as of the end of the year (not reduced by any penalty for premature withdrawals of a time deposit). Fillable 1040x If you receive a Form 1099-INT for interest income on deposits that were frozen at the end of 2013, see Frozen deposits under How To Report Interest Income in chapter 1 of Publication 550, for information about reporting this interest income exclusion on your tax return. Fillable 1040x   The interest you exclude is treated as credited to your account in the following year. Fillable 1040x You must include it in income in the year you can withdraw it. Fillable 1040x Example. Fillable 1040x $100 of interest was credited on your frozen deposit during the year. Fillable 1040x You withdrew $80 but could not withdraw any more as of the end of the year. Fillable 1040x You must include $80 in your income and exclude $20 from your income for the year. Fillable 1040x You must include the $20 in your income for the year you can withdraw it. Fillable 1040x Bonds traded flat. Fillable 1040x   If you buy a bond at a discount when interest has been defaulted or when the interest has accrued but has not been paid, the transaction is described as trading a bond flat. Fillable 1040x The defaulted or unpaid interest is not income and is not taxable as interest if paid later. Fillable 1040x When you receive a payment of that interest, it is a return of capital that reduces the remaining cost basis of your bond. Fillable 1040x Interest that accrues after the date of purchase, however, is taxable interest income for the year it is received or accrued. Fillable 1040x See Bonds Sold Between Interest Dates , later, for more information. Fillable 1040x Below-market loans. Fillable 1040x   In general, a below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Fillable 1040x See Below-Market Loans in chapter 1 of Publication 550 for more information. Fillable 1040x U. Fillable 1040x S. Fillable 1040x Savings Bonds This section provides tax information on U. Fillable 1040x S. Fillable 1040x savings bonds. Fillable 1040x It explains how to report the interest income on these bonds and how to treat transfers of these bonds. Fillable 1040x For other information on U. Fillable 1040x S. Fillable 1040x savings bonds, write to:  For series EE and I paper savings bonds: Bureau of the Public Debt Division of Customer Assistance P. Fillable 1040x O. Fillable 1040x Box 7012 Parkersburg, WV 26106-7012  For series EE and I electronic bonds: Bureau of the Public Debt Division of Customer Assistance P. Fillable 1040x O. Fillable 1040x Box 7015 Parkersburg, WV 26106–7015  For series HH/H: Bureau of the Public Debt Division of Customer Assistance P. Fillable 1040x O. Fillable 1040x Box 2186 Parkersburg, WV 26106-2186 Or, on the Internet, visit: www. Fillable 1040x treasurydirect. Fillable 1040x gov/indiv/indiv. Fillable 1040x htm. Fillable 1040x Accrual method taxpayers. Fillable 1040x   If you use an accrual method of accounting, you must report interest on U. Fillable 1040x S. Fillable 1040x savings bonds each year as it accrues. Fillable 1040x You cannot postpone reporting interest until you receive it or until the bonds mature. Fillable 1040x Accrual methods of accounting are explained in chapter 1 under Accounting Methods . Fillable 1040x Cash method taxpayers. Fillable 1040x   If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U. Fillable 1040x S. Fillable 1040x savings bonds when you receive it. Fillable 1040x The cash method of accounting is explained in chapter 1 under Accounting Methods. Fillable 1040x But see Reporting options for cash method taxpayers , later. Fillable 1040x Series HH bonds. Fillable 1040x    These bonds were issued at face value. Fillable 1040x Interest is paid twice a year by direct deposit to your bank account. Fillable 1040x If you are a cash method taxpayer, you must report interest on these bonds as income in the year you receive it. Fillable 1040x   Series HH bonds were first offered in 1980 and last offered in August 2004. Fillable 1040x Before 1980, series H bonds were issued. Fillable 1040x Series H bonds are treated the same as series HH bonds. Fillable 1040x If you are a cash method taxpayer, you must report the interest when you receive it. Fillable 1040x   Series H bonds have a maturity period of 30 years. Fillable 1040x Series HH bonds mature in 20 years. Fillable 1040x The last series H bonds matured in 2009. Fillable 1040x Series EE and series I bonds. Fillable 1040x   Interest on these bonds is payable when you redeem the bonds. Fillable 1040x The difference between the purchase price and the redemption value is taxable interest. Fillable 1040x Series EE bonds. Fillable 1040x   Series EE bonds were first offered in January 1980 and have a maturity period of 30 years. Fillable 1040x   Before July 1980, series E bonds were issued. Fillable 1040x The original 10-year maturity period of series E bonds has been extended to 40 years for bonds issued before December 1965 and 30 years for bonds issued after November 1965. Fillable 1040x Paper series EE and series E bonds are issued at a discount. Fillable 1040x The face value is payable to you at maturity. Fillable 1040x Electronic series EE bonds are issued at their face value. Fillable 1040x The face value plus accrued interest is payable to you at maturity. Fillable 1040x As of January 1, 2012, paper savings bonds were no longer sold at financial institutions. Fillable 1040x   Owners of paper series EE bonds can convert them to electronic bonds. Fillable 1040x These converted bonds do not retain the denomination listed on the paper certificate but are posted at their purchase price (with accrued interest). Fillable 1040x Series I bonds. Fillable 1040x   Series I bonds were first offered in 1998. Fillable 1040x These are inflation-indexed bonds issued at their face amount with a maturity period of 30 years. Fillable 1040x The face value plus all accrued interest is payable to you at maturity. Fillable 1040x Reporting options for cash method taxpayers. Fillable 1040x   If you use the cash method of reporting income, you can report the interest on series EE, series E, and series I bonds in either of the following ways. Fillable 1040x Method 1. Fillable 1040x Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year they mature. Fillable 1040x (However, see Savings bonds traded , later. Fillable 1040x )  Note. Fillable 1040x Series EE bonds issued in 1983 matured in 2013. Fillable 1040x If you have used method 1, you generally must report the interest on these bonds on your 2013 return. Fillable 1040x The last series E bonds were issued in 1980 and matured in 2010. Fillable 1040x If you used method 1, you generally should have reported the interest on these bonds on your 2010 return. Fillable 1040x Method 2. Fillable 1040x Choose to report the increase in redemption value as interest each year. Fillable 1040x You must use the same method for all series EE, series E, and series I bonds you own. Fillable 1040x If you do not choose method 2 by reporting the increase in redemption value as interest each year, you must use method 1. Fillable 1040x    If you plan to cash your bonds in the same year you will pay for higher education expenses, you may want to use method 1 because you may be able to exclude the interest from your income. Fillable 1040x To learn how, see Education Savings Bond Program, later. Fillable 1040x Change from method 1. Fillable 1040x   If you want to change your method of reporting the interest from method 1 to method 2, you can do so without permission from the IRS. Fillable 1040x In the year of change you must report all interest accrued to date and not previously reported for all your bonds. Fillable 1040x   Once you choose to report the interest each year, you must continue to do so for all series EE, series E, and series I bonds you own and for any you get later, unless you request permission to change, as explained next. Fillable 1040x Change from method 2. Fillable 1040x   To change from method 2 to method 1, you must request permission from the IRS. Fillable 1040x Permission for the change is automatically granted if you send the IRS a statement that meets all the following requirements. Fillable 1040x You have typed or printed the following number at the top: “131. Fillable 1040x ” It includes your name and social security number under “131. Fillable 1040x ” It includes the year of change (both the beginning and ending dates). Fillable 1040x It identifies the savings bonds for which you are requesting this change. Fillable 1040x It includes your agreement to: Report all interest on any bonds acquired during or after the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest, and Report all interest on the bonds acquired before the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest, with the exception of the interest reported in prior tax years. Fillable 1040x   You must attach this statement to your tax return for the year of change, which you must file by the due date (including extensions). Fillable 1040x   You can have an automatic extension of 6 months from the due date of your return for the year of change (excluding extensions) to file the statement with an amended return. Fillable 1040x On the statement, type or print “Filed pursuant to section 301. Fillable 1040x 9100-2. Fillable 1040x ” To get this extension, you must have filed your original return for the year of the change by the due date (including extensions). Fillable 1040x    By the date you file the original statement with your return, you must also send a signed copy to the address below. Fillable 1040x   Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) P. Fillable 1040x O. Fillable 1040x Box 7604 Benjamin Franklin Station Washington, DC 20044   If you use a private delivery service, send the signed copy to the address below. Fillable 1040x   Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) Room 5336 1111 Constitution Avenue, NW  Washington, DC 20224   Instead of filing this statement, you can request permission to change from method 2 to method 1 by filing Form 3115, Application for Change in Accounting Method. Fillable 1040x In that case, follow the form instructions for an automatic change. Fillable 1040x No user fee is required. Fillable 1040x Co-owners. Fillable 1040x   If a U. Fillable 1040x S. Fillable 1040x savings bond is issued in the names of co-owners, such as you and your child or you and your spouse, interest on the bond is generally taxable to the co-owner who bought the bond. Fillable 1040x One co-owner's funds used. Fillable 1040x    If you used your funds to buy the bond, you must pay the tax on the interest. Fillable 1040x This is true even if you let the other co-owner redeem the bond and keep all the proceeds. Fillable 1040x Under these circumstances, the co-owner who redeemed the bond will receive a Form 1099-INT at the time of redemption and must provide you with another Form 1099-INT showing the amount of interest from the bond taxable to you. Fillable 1040x The co-owner who redeemed the bond is a “nominee. Fillable 1040x ” See Nominee distributions under How To Report Interest Income in chapter 1 of Publication 550 for more information about how a person who is a nominee reports interest income belonging to another person. Fillable 1040x Both co-owners' funds used. Fillable 1040x   If you and the other co-owner each contribute part of the bond's purchase price, the interest is generally taxable to each of you, in proportion to the amount each of you paid. Fillable 1040x Community property. Fillable 1040x   If you and your spouse live in a community property state and hold bonds as community property, one-half of the interest is considered received by each of you. Fillable 1040x If you file separate returns, each of you generally must report one-half of the bond interest. Fillable 1040x For more information about community property, see Publication 555. Fillable 1040x Table 7-1. Fillable 1040x   These rules are also shown in Table 7-1. Fillable 1040x Ownership transferred. Fillable 1040x   If you bought series E, series EE, or series I bonds entirely with your own funds and had them reissued in your co-owner's name or beneficiary's name alone, you must include in your gross income for the year of reissue all interest that you earned on these bonds and have not previously reported. Fillable 1040x But, if the bonds were reissued in your name alone, you do not have to report the interest accrued at that time. Fillable 1040x   This same rule applies when bonds (other than bonds held as community property) are transferred between spouses or incident to divorce. Fillable 1040x Purchased jointly. Fillable 1040x   If you and a co-owner each contributed funds to buy series E, series EE, or series I bonds jointly and later have the bonds reissued in the co-owner's name alone, you must include in your gross income for the year of reissue your share of all the interest earned on the bonds that you have not previously reported. Fillable 1040x The former co-owner does not have to include in gross income at the time of reissue his or her share of the interest earned that was not reported before the transfer. Fillable 1040x This interest, however, as well as all interest earned after the reissue, is income to the former co-owner. Fillable 1040x   This income-reporting rule also applies when the bonds are reissued in the name of your former co-owner and a new co-owner. Fillable 1040x But the new co-owner will report only his or her share of the interest earned after the transfer. Fillable 1040x   If bonds that you and a co-owner bought jointly are reissued to each of you separately in the same proportion as your contribution to the purchase price, neither you nor your co-owner has to report at that time the interest earned before the bonds were reissued. Fillable 1040x    Table 7-1. Fillable 1040x Who Pays the Tax on U. Fillable 1040x S. Fillable 1040x Savings Bond Interest IF . Fillable 1040x . Fillable 1040x . Fillable 1040x THEN the interest must be reported by . Fillable 1040x . Fillable 1040x . Fillable 1040x you buy a bond in your name and the name of another person as co-owners, using only your own funds you. Fillable 1040x you buy a bond in the name of another person, who is the sole owner of the bond the person for whom you bought the bond. Fillable 1040x you and another person buy a bond as co-owners, each contributing part of the purchase price both you and the other co-owner, in proportion to the amount each paid for the bond. Fillable 1040x you and your spouse, who live in a community property state, buy a bond that is community property you and your spouse. Fillable 1040x If you file separate returns, both you and your spouse generally report one-half of the interest. Fillable 1040x Example 1. Fillable 1040x You and your spouse each spent an equal amount to buy a $1,000 series EE savings bond. Fillable 1040x The bond was issued to you and your spouse as co-owners. Fillable 1040x You both postpone reporting interest on the bond. Fillable 1040x You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. Fillable 1040x At that time neither you nor your spouse has to report the interest earned to the date of reissue. Fillable 1040x Example 2. Fillable 1040x You bought a $1,000 series EE savings bond entirely with your own funds. Fillable 1040x The bond was issued to you and your spouse as co-owners. Fillable 1040x You both postpone reporting interest on the bond. Fillable 1040x You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. Fillable 1040x You must report half the interest earned to the date of reissue. Fillable 1040x Transfer to a trust. Fillable 1040x   If you own series E, series EE, or series I bonds and transfer them to a trust, giving up all rights of ownership, you must include in your income for that year the interest earned to the date of transfer if you have not already reported it. Fillable 1040x However, if you are considered the owner of the trust and if the increase in value both before and after the transfer continues to be taxable to you, you can continue to defer reporting the interest earned each year. Fillable 1040x You must include the total interest in your income in the year you cash or dispose of the bonds or the year the bonds finally mature, whichever is earlier. Fillable 1040x   The same rules apply to previously unreported interest on series EE or series E bonds if the transfer to a trust consisted of series HH or series H bonds you acquired in a trade for the series EE or series E bonds. Fillable 1040x See Savings bonds traded , later. Fillable 1040x Decedents. Fillable 1040x   The manner of reporting interest income on series E, series EE, or series I bonds, after the death of the owner (decedent), depends on the accounting and income-reporting methods previously used by the decedent. Fillable 1040x This is explained in chapter 1 of Publication 550. Fillable 1040x Savings bonds traded. Fillable 1040x   If you postponed reporting the interest on your series EE or series E bonds, you did not recognize taxable income when you traded the bonds for series HH or series H bonds, unless you received cash in the trade. Fillable 1040x (You cannot trade series I bonds for series HH bonds. Fillable 1040x After August 31, 2004, you cannot trade any other series of bonds for series HH bonds. Fillable 1040x ) Any cash you received is income up to the amount of the interest earned on the bonds traded. Fillable 1040x When your series HH or series H bonds mature, or if you dispose of them before maturity, you report as interest the difference between their redemption value and your cost. Fillable 1040x Your cost is the sum of the amount you paid for the traded series EE or series E bonds plus any amount you had to pay at the time of the trade. Fillable 1040x Example. Fillable 1040x You traded series EE bonds (on which you postponed reporting the interest) for $2,500 in series HH bonds and $223 in cash. Fillable 1040x You reported the $223 as taxable income on your tax return. Fillable 1040x At the time of the trade, the series EE bonds had accrued interest of $523 and a redemption value of $2,723. Fillable 1040x You hold the series HH bonds until maturity, when you receive $2,500. Fillable 1040x You must report $300 as interest income in the year of maturity. Fillable 1040x This is the difference between their redemption value, $2,500, and your cost, $2,200 (the amount you paid for the series EE bonds). Fillable 1040x (It is also the difference between the accrued interest of $523 on the series EE bonds and the $223 cash received on the trade. Fillable 1040x ) Choice to report interest in year of trade. Fillable 1040x   You could have chosen to treat all of the previously unreported accrued interest on the series EE or series E bonds traded for series HH bonds as income in the year of the trade. Fillable 1040x If you made this choice, it is treated as a change from method 1. Fillable 1040x See Change from method 1 under Series EE and series I bonds, earlier. Fillable 1040x Form 1099-INT for U. Fillable 1040x S. Fillable 1040x savings bonds interest. Fillable 1040x   When you cash a bond, the bank or other payer that redeems it must give you a Form 1099-INT if the interest part of the payment you receive is $10 or more. Fillable 1040x Box 3 of your Form 1099-INT should show the interest as the difference between the amount you received and the amount paid for the bond. Fillable 1040x However, your Form 1099-INT may show more interest than you have to include on your income tax return. Fillable 1040x For example, this may happen if any of the following are true. Fillable 1040x You chose to report the increase in the redemption value of the bond each year. Fillable 1040x The interest shown on your Form 1099-INT will not be reduced by amounts previously included in income. Fillable 1040x You received the bond from a decedent. Fillable 1040x The interest shown on your Form 1099-INT will not be reduced by any interest reported by the decedent before death, or on the decedent's final return, or by the estate on the estate's income tax return. Fillable 1040x Ownership of the bond was transferred. Fillable 1040x The interest shown on your Form 1099-INT will not be reduced by interest that accrued before the transfer. Fillable 1040x You were named as a co-owner, and the other co-owner contributed funds to buy the bond. Fillable 1040x The interest shown on your Form 1099-INT will not be reduced by the amount you received as nominee for the other co-owner. Fillable 1040x (See Co-owners , earlier in this chapter, for more information about the reporting requirements. Fillable 1040x ) You received the bond in a taxable distribution from a retirement or profit-sharing plan. Fillable 1040x The interest shown on your Form 1099-INT will not be reduced by the interest portion of the amount taxable as a distribution from the plan and not taxable as interest. Fillable 1040x (This amount is generally shown on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Fillable 1040x , for the year of distribution. Fillable 1040x )   For more information on including the correct amount of interest on your return, see How To Report Interest Income , later. Fillable 1040x Publication 550 includes examples showing how to report these amounts. Fillable 1040x    Interest on U. Fillable 1040x S. Fillable 1040x savings bonds is exempt from state and local taxes. Fillable 1040x The Form 1099-INT you receive will indicate the amount that is for U. Fillable 1040x S. Fillable 1040x savings bond interest in box 3. Fillable 1040x Education Savings Bond Program You may be able to exclude from income all or part of the interest you receive on the redemption of qualified U. Fillable 1040x S. Fillable 1040x savings bonds during the year if you pay qualified higher educational expenses during the same year. Fillable 1040x This exclusion is known as the Education Savings Bond Program. Fillable 1040x You do not qualify for this exclusion if your filing status is married filing separately. Fillable 1040x Form 8815. Fillable 1040x   Use Form 8815 to figure your exclusion. Fillable 1040x Attach the form to your Form 1040 or Form 1040A. Fillable 1040x Qualified U. Fillable 1040x S. Fillable 1040x savings bonds. Fillable 1040x   A qualified U. Fillable 1040x S. Fillable 1040x savings bond is a series EE bond issued after 1989 or a series I bond. Fillable 1040x The bond must be issued either in your name (sole owner) or in your and your spouse's names (co-owners). Fillable 1040x You must be at least 24 years old before the bond's issue date. Fillable 1040x For example, a bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or child. Fillable 1040x    The issue date of a bond may be earlier than the date the bond is purchased because the issue date assigned to a bond is the first day of the month in which it is purchased. Fillable 1040x Beneficiary. Fillable 1040x   You can designate any individual (including a child) as a beneficiary of the bond. Fillable 1040x Verification by IRS. Fillable 1040x   If you claim the exclusion, the IRS will check it by using bond redemption information from the Department of the Treasury. Fillable 1040x Qualified expenses. Fillable 1040x   Qualified higher educational expenses are tuition and fees required for you, your spouse, or your dependent (for whom you claim an exemption) to attend an eligible educational institution. Fillable 1040x   Qualified expenses include any contribution you make to a qualified tuition program or to a Coverdell education savings account. Fillable 1040x   Qualified expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Fillable 1040x Eligible educational institutions. Fillable 1040x   These institutions include most public, private, and nonprofit universities, colleges, and vocational schools that are accredited and eligible to participate in student aid programs run by the U. Fillable 1040x S. Fillable 1040x Department of Education. Fillable 1040x Reduction for certain benefits. Fillable 1040x   You must reduce your qualified higher educational expenses by all of the following tax-free benefits. Fillable 1040x Tax-free part of scholarships and fellowships (see Scholarships and fellowships in chapter 12). Fillable 1040x Expenses used to figure the tax-free portion of distributions from a Coverdell ESA. Fillable 1040x Expenses used to figure the tax-free portion of distributions from a qualified tuition program. Fillable 1040x Any tax-free payments (other than gifts or inheritances) received for educational expenses, such as Veterans' educational assistance benefits, Qualified tuition reductions, or Employer-provided educational assistance. Fillable 1040x Any expense used in figuring the American Opportunity and lifetime learning credits. Fillable 1040x Amount excludable. Fillable 1040x   If the total proceeds (interest and principal) from the qualified U. Fillable 1040x S. Fillable 1040x savings bonds you redeem during the year are not more than your adjusted qualified higher educational expenses for the year, you may be able to exclude all of the interest. Fillable 1040x If the proceeds are more than the expenses, you may be able to exclude only part of the interest. Fillable 1040x   To determine the excludable amount, multiply the interest part of the proceeds by a fraction. Fillable 1040x The numerator of the fraction is the qualified higher educational expenses you paid during the year. Fillable 1040x The denominator of the fraction is the total proceeds you received during the year. Fillable 1040x Example. Fillable 1040x In February 2013, Mark and Joan, a married couple, cashed a qualified series EE U. Fillable 1040x S. Fillable 1040x savings bond they bought in April 1997. Fillable 1040x They received proceeds of $8,372 representing principal of $5,000 and interest of $3,372. Fillable 1040x In 2013, they paid $4,000 of their daughter's college tuition. Fillable 1040x They are not claiming an education credit for that amount, and their daughter does not have any tax-free educational assistance. Fillable 1040x They can exclude $1,611 ($3,372 × ($4,000 ÷ $8,372)) of interest in 2013. Fillable 1040x They must pay tax on the remaining $1,761 ($3,372 − $1,611) interest. Fillable 1040x Modified adjusted gross income limit. Fillable 1040x   The interest exclusion is limited if your modified adjusted gross income (modified AGI) is: $74,700 to $89,700 for taxpayers filing single or head of household, and $112,050 to $142,050 for married taxpayers filing jointly or for a qualifying widow(er) with dependent child. Fillable 1040x You do not qualify for the interest exclusion if your modified AGI is equal to or more than the upper limit for your filing status. Fillable 1040x   Modified AGI, for purposes of this exclusion, is adjusted gross income (Form 1040, line 37, or Form 1040A, line 21) figured before the interest exclusion, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion and deduction, Exclusion of income for bona fide residents of American Samoa, Exclusion for income from Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for tuition and fees, Deduction for student loan interest, and Deduction for domestic production activities. Fillable 1040x   Use the Line 9 Worksheet in the Form 8815 instructions to figure your modified AGI. Fillable 1040x If you claim any of the exclusion or deduction items listed above (except items 6, 7, and 8), add the amount of the exclusion or deduction (except items 6, 7, and 8) to the amount on line 5 of the worksheet, and enter the total on Form 8815, line 9, as your modified AGI. Fillable 1040x   If you have investment interest expense incurred to earn royalties and other investment income, see Education Savings Bond Program in chapter 1 of Publication 550. Fillable 1040x Recordkeeping. Fillable 1040x If you claim the interest exclusion, you must keep a written record of the qualified U. Fillable 1040x S. Fillable 1040x savings bonds you redeem. Fillable 1040x Your record must include the serial number, issue date, face value, and total redemption proceeds (principal and interest) of each bond. Fillable 1040x You can use Form 8818 to record this information. Fillable 1040x You should also keep bills, receipts, canceled checks, or other documentation that shows you paid qualified higher educational expenses during the year. Fillable 1040x U. Fillable 1040x S. Fillable 1040x Treasury Bills, Notes, and Bonds Treasury bills, notes, and bonds are direct debts (obligations) of the U. Fillable 1040x S. Fillable 1040x Government. Fillable 1040x Taxation of interest. Fillable 1040x   Interest income from Treasury bills, notes, and bonds is subject to federal income tax but is exempt from all state and local income taxes. Fillable 1040x You should receive Form 1099-INT showing the interest (in box 3) paid to you for the year. Fillable 1040x   Payments of principal and interest generally will be credited to your designated checking or savings account by direct deposit through the TreasuryDirect® system. Fillable 1040x Treasury bills. Fillable 1040x   These bills generally have a 4-week, 13-week, 26-week, or 52-week maturity period. Fillable 1040x They are generally issued at a discount in the amount of $100 and multiples of $100. Fillable 1040x The difference between the discounted price you pay for the bills and the face value you receive at maturity is interest income. Fillable 1040x Generally, you report this interest income when the bill is paid at maturity. Fillable 1040x If you paid a premium for a bill (more than the face value), you generally report the premium as a section 171 deduction when the bill is paid at maturity. Fillable 1040x Treasury notes and bonds. Fillable 1040x   Treasury notes have maturity periods of more than 1 year, ranging up to 10 years. Fillable 1040x Maturity periods for Treasury bonds are longer than 10 years. Fillable 1040x Both generally are issued in denominations of $100 to $1 million and generally pay interest every 6 months. Fillable 1040x Generally, you report this interest for the year paid. Fillable 1040x For more information, see U. Fillable 1040x S. Fillable 1040x Treasury Bills, Notes, and Bonds in chapter 1 of Publication 550. Fillable 1040x For other information on Treasury notes or bonds, write to:  Bureau of the Public Debt P. Fillable 1040x O. Fillable 1040x Box 7015 Parkersburg, WV 26106-7015 Or, on the Internet, visit: www. Fillable 1040x treasurydirect. Fillable 1040x gov/indiv/indiv. Fillable 1040x htm. Fillable 1040x For information on series EE, series I, and series HH savings bonds, see U. Fillable 1040x S. Fillable 1040x Savings Bonds , earlier. Fillable 1040x Treasury inflation-protected securities (TIPS). Fillable 1040x   These securities pay interest twice a year at a fixed rate, based on a principal amount adjusted to take into account inflation and deflation. Fillable 1040x For the tax treatment of these securities, see Inflation-Indexed Debt Instruments under Original Issue Discount (OID), in Publication 550. Fillable 1040x Bonds Sold Between Interest Dates If you sell a bond between interest payment dates, part of the sales price represents interest accrued to the date of sale. Fillable 1040x You must report that part of the sales price as interest income for the year of sale. Fillable 1040x If you buy a bond between interest payment dates, part of the purchase price represents interest accrued before the date of purchase. Fillable 1040x When that interest is paid to you, treat it as a return of your capital investment, rather than interest income, by reducing your basis in the bond. Fillable 1040x See Accrued interest on bonds under How To Report Interest Income in chapter 1 of Publication 550 for information on reporting the payment. Fillable 1040x Insurance Life insurance proceeds paid to you as beneficiary of the insured person are usually not taxable. Fillable 1040x But if you receive the proceeds in installments, you must usually report a part of each installment payment as interest income. Fillable 1040x For more information about insurance proceeds received in installments, see Publication 525, Taxable and Nontaxable Income. Fillable 1040x Annuity. Fillable 1040x   If you buy an annuity with life insurance proceeds, the annuity payments you receive are taxed as pension and annuity income from a nonqualified plan, not as interest income. Fillable 1040x See chapter 10 for information on pension and annuity income from nonqualified plans. Fillable 1040x State or Local Government Obligations Interest on a bond used to finance government operations generally is not taxable if the bond is issued by a state, the District of Columbia, a possession of the United States, or any of their political subdivisions. Fillable 1040x Bonds issued after 1982 (including tribal economic development bonds issued after February 17, 2009) by an Indian tribal government are treated as issued by a state. Fillable 1040x Interest on these bonds is generally tax exempt if the bonds are part of an issue of which substantially all proceeds are to be used in the exercise of any essential government function. Fillable 1040x For information on federally guaranteed bonds, mortgage revenue bonds, arbitrage bonds, private activity bonds, qualified tax credit bonds, and Build America bonds, see State or Local Government Obligations in chapter 1 of Publication 550. Fillable 1040x Information reporting requirement. Fillable 1040x   If you must file a tax return, you are required to show any tax-exempt interest you received on your return. Fillable 1040x This is an information reporting requirement only. Fillable 1040x It does not change tax-exempt interest to taxable interest. Fillable 1040x Original Issue Discount (OID) Original issue discount (OID) is a form of interest. Fillable 1040x You generally include OID in your income as it accrues over the term of the debt instrument, whether or not you receive any payments from the issuer. Fillable 1040x A debt instrument generally has OID when the instrument is issued for a price that is less than its stated redemption price at maturity. Fillable 1040x OID is the difference between the stated redemption price at maturity and the issue price. Fillable 1040x All debt instruments that pay no interest before maturity are presumed to be issued at a discount. Fillable 1040x Zero coupon bonds are one example of these instruments. Fillable 1040x The OID accrual rules generally do not apply to short-term obligations (those with a fixed maturity date of 1 year or less from date of issue). Fillable 1040x See Discount on Short-Term Obligations in chapter 1 of Publication 550. Fillable 1040x De minimis OID. Fillable 1040x   You can treat the discount as zero if it is less than one-fourth of 1% (. Fillable 1040x 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. Fillable 1040x This small discount is known as “de minimis” OID. Fillable 1040x Example 1. Fillable 1040x You bought a 10-year bond with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. Fillable 1040x One-fourth of 1% of $1,000 (stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. Fillable 1040x Because the $20 discount is less than $25, the OID is treated as zero. Fillable 1040x (If you hold the bond at maturity, you will recognize $20 ($1,000 − $980) of capital gain. Fillable 1040x ) Example 2. Fillable 1040x The facts are the same as in Example 1, except that the bond was issued at $950. Fillable 1040x The OID is $50. Fillable 1040x Because the $50 discount is more than the $25 figured in Example 1, you must include the OID in income as it accrues over the term of the bond. Fillable 1040x Debt instrument bought after original issue. Fillable 1040x   If you buy a debt instrument with de minimis OID at a premium, the discount is not includible in income. Fillable 1040x If you buy a debt instrument with de minimis OID at a discount, the discount is reported under the market discount rules. Fillable 1040x See Market Discount Bonds in chapter 1 of Publication 550. Fillable 1040x Exceptions to reporting OID. Fillable 1040x   The OID rules discussed in this chapter do not apply to the following debt instruments. Fillable 1040x Tax-exempt obligations. Fillable 1040x (However, see Stripped tax-exempt obligations under Stripped Bonds and Coupons in chapter 1 of Publication 550). Fillable 1040x U. Fillable 1040x S. Fillable 1040x savings bonds. Fillable 1040x Short-term debt instruments (those with a fixed maturity date of not more than 1 year from the date of issue). Fillable 1040x Obligations issued by an individual before March 2, 1984. Fillable 1040x Loans between individuals if all the following are true. Fillable 1040x The lender is not in the business of lending money. Fillable 1040x The amount of the loan, plus the amount of any outstanding prior loans between the same individuals, is $10,000 or less. Fillable 1040x Avoiding any federal tax is not one of the principal purposes of the loan. Fillable 1040x Form 1099-OID. Fillable 1040x   The issuer of the debt instrument (or your broker if you held the instrument through a broker) should give you Form 1099-OID, or a similar statement, if the total OID for the calendar year is $10 or more. Fillable 1040x Form 1099-OID will show, in box 1, the amount of OID for the part of the year that you held the bond. Fillable 1040x It also will show, in box 2, the stated interest you must include in your income. Fillable 1040x A copy of Form 1099-OID will be sent to the IRS. Fillable 1040x Do not file your copy with your return. Fillable 1040x Keep it for your records. Fillable 1040x   In most cases, you must report the entire amount in boxes 1 and 2 of Form 1099-OID as interest income. Fillable 1040x But see Refiguring OID shown on Form 1099-OID, later in this discussion, for more information. Fillable 1040x Form 1099-OID not received. Fillable 1040x   If you had OID for the year but did not receive a Form 1099-OID, you can find tables on IRS. Fillable 1040x gov that list total OID on certain debt instruments and have information that will help you figure OID. Fillable 1040x For the latest OID tables, go to www. Fillable 1040x irs. Fillable 1040x gov and enter “OID tables” in the Search box. Fillable 1040x If your debt instrument is not listed, consult the issuer for further information about the accrued OID for the year. Fillable 1040x Nominee. Fillable 1040x   If someone else is the holder of record (the registered owner) of an OID instrument belonging to you and receives a Form 1099-OID on your behalf, that person must give you a Form 1099-OID. Fillable 1040x Refiguring OID shown on Form 1099-OID. Fillable 1040x   You must refigure the OID shown in box 1 or box 8 of Form 1099-OID if either of the following apply. Fillable 1040x You bought the debt instrument after its original issue and paid a premium or an acquisition premium. Fillable 1040x The debt instrument is a stripped bond or a stripped coupon (including certain zero coupon instruments). Fillable 1040x For information about figuring the correct amount of OID to include in your income, see Figuring OID on Long-Term Debt Instruments in Publication 1212. Fillable 1040x Refiguring periodic interest shown on Form 1099-OID. Fillable 1040x   If you disposed of a debt instrument or acquired it from another holder during the year, see Bonds Sold Between Interest Dates , earlier, for information about the treatment of periodic interest that may be shown in box 2 of Form 1099-OID for that instrument. Fillable 1040x Certificates of deposit (CDs). Fillable 1040x   If you buy a CD with a maturity of more than 1 year, you must include in income each year a part of the total interest due and report it in the same manner as other OID. Fillable 1040x   This also applies to similar deposit arrangements with banks, building and loan associations, etc. Fillable 1040x , including: Time deposits, Bonus plans, Savings certificates, Deferred income certificates, Bonus savings certificates, and Growth savings certificates. Fillable 1040x Bearer CDs. Fillable 1040x   CDs issued after 1982 generally must be in registered form. Fillable 1040x Bearer CDs are CDs not in registered form. Fillable 1040x They are not issued in the depositor's name and are transferable from one individual to another. Fillable 1040x   Banks must provide the IRS and the person redeeming a bearer CD with a Form 1099-INT. Fillable 1040x More information. Fillable 1040x   See chapter 1 of Publication 550 for more information about OID and related topics, such as market discount bonds. Fillable 1040x When To Report Interest Income When to report your interest income depends on whether you use the cash method or an accrual method to report income. Fillable 1040x Cash method. Fillable 1040x   Most individual taxpayers use the cash method. Fillable 1040x If you use this method, you generally report your interest income in the year in which you actually or constructively receive it. Fillable 1040x However, there are special rules for reporting the discount on certain debt instruments. Fillable 1040x See U. Fillable 1040x S. Fillable 1040x Savings Bonds and Original Issue Discount (OID) , earlier. Fillable 1040x Example. Fillable 1040x On September 1, 2011, you loaned another individual $2,000 at 12%, compounded annually. Fillable 1040x You are not in the business of lending money. Fillable 1040x The note stated that principal and interest would be due on August 31, 2013. Fillable 1040x In 2013, you received $2,508. Fillable 1040x 80 ($2,000 principal and $508. Fillable 1040x 80 interest). Fillable 1040x If you use the cash method, you must include in income on your 2013 return the $508. Fillable 1040x 80 interest you received in that year. Fillable 1040x Constructive receipt. Fillable 1040x   You constructively receive income when it is credited to your account or made available to you. Fillable 1040x You do not need to have physical possession of it. Fillable 1040x For example, you are considered to receive interest, dividends, or other earnings on any deposit or account in a bank, savings and loan, or similar financial institution, or interest on life insurance policy dividends left to accumulate, when they are credited to your account and subject to your withdrawal. Fillable 1040x This is true even if they are not yet entered in your passbook. Fillable 1040x   You constructively receive income on the deposit or account even if you must: Make withdrawals in multiples of even amounts, Give a notice to withdraw before making the withdrawal, Withdraw all or part of the account to withdraw the earnings, or Pay a penalty on early withdrawals, unless the interest you are to receive on an early withdrawal or redemption is substantially less than the interest payable at maturity. Fillable 1040x Accrual method. Fillable 1040x   If you use an accrual method, you report your interest income when you earn it, whether or not you have received it. Fillable 1040x Interest is earned over the term of the debt instrument. Fillable 1040x Example. Fillable 1040x If, in the previous example, you use an accrual method, you must include the interest in your income as you earn it. Fillable 1040x You would report the interest as follows: 2011, $80; 2012, $249. Fillable 1040x 60; and 2013, $179. Fillable 1040x 20. Fillable 1040x Coupon bonds. Fillable 1040x   Interest on coupon bonds is taxable in the year the coupon becomes due and payable. Fillable 1040x It does not matter when you mail the coupon for payment. Fillable 1040x How To Report Interest Income Generally, you report all your taxable interest income on Form 1040, line 8a; Form 1040A, line 8a; or Form 1040EZ, line 2. Fillable 1040x You cannot use Form 1040EZ if your taxable interest income is more than $1,500. Fillable 1040x Instead, you must use Form 1040A or Form 1040. Fillable 1040x Form 1040A. Fillable 1040x   You must complete Schedule B (Form 1040A or 1040), Part I, if you file Form 1040A and any of the following are true. Fillable 1040x Your taxable interest income is more than $1,500. Fillable 1040x You are claiming the interest exclusion under the Education Savings Bond Program (discussed earlier). Fillable 1040x You received interest from a seller-financed mortgage, and the buyer used the property as a home. Fillable 1040x You received a Form 1099-INT for U. Fillable 1040x S. Fillable 1040x savings bond interest that includes amounts you reported before 2013. Fillable 1040x You received, as a nominee, interest that actually belongs to someone else. Fillable 1040x You received a Form 1099-INT for interest on frozen deposits. Fillable 1040x You are reporting OID in an amount less than the amount shown on Form 1099-OID. Fillable 1040x You received a Form 1099-INT for interest on a bond you bought between interest payment dates. Fillable 1040x You acquired taxable bonds after 1987 and choose to reduce interest income from the bonds by any amortizable bond premium (see Bond Premium Amortization in chapter 3 of Publication 550). Fillable 1040x List each payer's name and the amount of interest income received from each payer on line 1. Fillable 1040x If you received a Form 1099-INT or Form 1099-OID from a brokerage firm, list the brokerage firm as the payer. Fillable 1040x   You cannot use Form 1040A if you must use Form 1040, as described next. Fillable 1040x Form 1040. Fillable 1040x   You must use Form 1040 instead of Form 1040A or Form 1040EZ if: You forfeited interest income because of the early withdrawal of a time deposit; You acquired taxable bonds after 1987, you choose to reduce interest income from the bonds by any amortizable bond premium, and you are deducting the excess of bond premium amortization for the accrual period over the qualified stated interest for the period (see Bond Premium Amortization in chapter 3 of Publication 550); or You received tax-exempt interest from private activity bonds issued after August 7, 1986. Fillable 1040x Schedule B (Form 1040A or 1040). Fillable 1040x   You must complete Schedule B (Form 1040A or 1040), Part I, if you file Form 1040 and any of the following apply. Fillable 1040x Your taxable interest income is more than $1,500. Fillable 1040x You are claiming the interest exclusion under the Education Savings Bond Program (discussed earlier). Fillable 1040x You received interest from a seller-financed mortgage, and the buyer used the property as a home. Fillable 1040x You received a Form 1099-INT for U. Fillable 1040x S. Fillable 1040x savings bond interest that includes amounts you reported before 2013. Fillable 1040x You received, as a nominee, interest that actually belongs to someone else. Fillable 1040x You received a Form 1099-INT for interest on frozen deposits. Fillable 1040x You received a Form 1099-INT for interest on a bond you bought between interest payment dates. Fillable 1040x You are reporting OID in an amount less than the amount shown on Form 1099-OID. Fillable 1040x Statement (2) in the preceding list under Form 1040 is true. Fillable 1040x In Part I, line 1, list each payer's name and the amount received from each. Fillable 1040x If you received a Form 1099-INT or Form 1099-OID from a brokerage firm, list the brokerage firm as the payer. Fillable 1040x Reporting tax-exempt interest. Fillable 1040x   Total your tax-exempt interest (such as interest or accrued OID on certain state and municipal bonds, including tax-exempt interest on zero coupon municipal bonds) and exempt-interest dividends from a mutual fund as shown on Form 1099-INT, box 8, and on Form 1099-DIV, box 10. Fillable 1040x Add these amounts to any other tax-exempt interest you received. Fillable 1040x Report the total on line 8b of Form 1040A or 1040. Fillable 1040x   If you file Form 1040EZ, enter “TEI” and the amount in the space to the left of line 2. Fillable 1040x Do not add tax-exempt interest in the total on Form 1040EZ, line 2. Fillable 1040x   Form 1099-INT, box 9, and Form 1099-DIV, box 11, show the tax-exempt interest subject to the alternative minimum tax on Form 6251. Fillable 1040x These amounts are already included in the amounts on Form 1099-INT, box 8, and Form 1099-DIV, box 10. Fillable 1040x Do not add the amounts in Form 1099-INT, box 9 and Form 1099-DIV, box 11 to, or subtract them from, the amounts on Form 1099-INT, box 8, and Form 1099-DIV, box 10. Fillable 1040x    Do not report interest from an individual retirement account (IRA) as tax-exempt interest. Fillable 1040x Form 1099-INT. Fillable 1040x   Your taxable interest income, except for interest from U. Fillable 1040x S. Fillable 1040x savings bonds and Treasury obligations, is shown in box 1 of Form 1099-INT. Fillable 1040x Add this amount to any other taxable interest income you received. Fillable 1040x You must report all of your taxable interest income even if you do not receive a Form 1099-INT. Fillable 1040x Generally, contact your financial institution if you do not receive a Form 1099-INT by February 15. Fillable 1040x Your identifying number may be truncated on any paper Form 1099-INT you receive. Fillable 1040x   If you forfeited interest income because of the early withdrawal of a time deposit, the deductible amount will be shown on Form 1099-INT in box 2. Fillable 1040x See Penalty on early withdrawal of savings in chapter 1 of Publication 550. Fillable 1040x   Box 3 of Form 1099-INT shows the interest income you received from U. Fillable 1040x S. Fillable 1040x savings bonds, Treasury bills, Treasury notes, and Treasury bonds. Fillable 1040x Add the amount shown in box 3 to any other taxable interest income you received, unless part of the amount in box 3 was previously included in your interest income. Fillable 1040x If part of the amount shown in box 3 was previously included in your interest income, see U. Fillable 1040x S. Fillable 1040x savings bond interest previously reported , later. Fillable 1040x   Box 4 of Form 1099-INT will contain an amount if you were subject to backup withholding. Fillable 1040x Report the amount from box 4 on Form 1040EZ, line 7; on Form 1040A, line 36; or Form 1040, line 62 (federal income tax withheld). Fillable 1040x   Box 5 of Form 1099-INT shows investment expenses you may be able to deduct as an itemized deduction. Fillable 1040x See chapter 28 for more information about investment expenses. Fillable 1040x   If there are entries in boxes 6 and 7 of Form 1099-INT, you must file Form 1040. Fillable 1040x You may be able to take a credit for the amount shown in box 6 unless you deduct this amount on line 8 of Schedule A (Form 1040). Fillable 1040x To take the credit, you may have to file Form 1116, Foreign Tax Credit. Fillable 1040x For more information, see Publication 514, Foreign Tax Credit for Individuals. Fillable 1040x U. Fillable 1040x S. Fillable 1040x savings bond interest previously reported. Fillable 1040x   If you received a Form 1099-INT for U. Fillable 1040x S. Fillable 1040x savings bond interest, the form may show interest you do not have to report. Fillable 1040x See Form 1099-INT for U. Fillable 1040x S. Fillable 1040x savings bonds interest , earlier, under U. Fillable 1040x S. Fillable 1040x Savings Bonds. Fillable 1040x   On Schedule B (Form 1040A or 1040), Part I, line 1, report all the interest shown on your Form 1099-INT. Fillable 1040x Then follow these steps. Fillable 1040x Several lines above line 2, enter a subtotal of all interest listed on line 1. Fillable 1040x Below the subtotal enter “U. Fillable 1040x S. Fillable 1040x Savings Bond Interest Previously Reported” and enter amounts previously reported or interest accrued before you received the bond. Fillable 1040x Subtract these amounts from the subtotal and enter the result on line 2. Fillable 1040x More information. Fillable 1040x   For more information about how to report interest income, see chapter 1 of Publication 550 or the instructions for the form you must file. 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