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Irs 1040x Amended Return

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Irs 1040x Amended Return

Irs 1040x amended return 12. Irs 1040x amended return   How To Get Tax Help Table of Contents Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Irs 1040x amended return Free help with your tax return. Irs 1040x amended return   You can get free help preparing your return nationwide from IRS-certified volunteers. Irs 1040x amended return The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Irs 1040x amended return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs 1040x amended return Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs 1040x amended return In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Irs 1040x amended return To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Irs 1040x amended return gov, download the IRS2Go app, or call 1-800-906-9887. Irs 1040x amended return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs 1040x amended return To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs 1040x amended return aarp. Irs 1040x amended return org/money/taxaide or call 1-888-227-7669. Irs 1040x amended return For more information on these programs, go to IRS. Irs 1040x amended return gov and enter “VITA” in the search box. Irs 1040x amended return Internet. Irs 1040x amended return    IRS. Irs 1040x amended return gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Irs 1040x amended return Download the free IRS2Go app from the iTunes app store or from Google Play. Irs 1040x amended return Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs 1040x amended return Check the status of your 2013 refund with the Where's My Refund? application on IRS. Irs 1040x amended return gov or download the IRS2Go app and select the Refund Status option. Irs 1040x amended return The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs 1040x amended return Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Irs 1040x amended return You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs 1040x amended return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs 1040x amended return Use the Interactive Tax Assistant (ITA) to research your tax questions. Irs 1040x amended return No need to wait on the phone or stand in line. Irs 1040x amended return The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Irs 1040x amended return When you reach the response screen, you can print the entire interview and the final response for your records. Irs 1040x amended return New subject areas are added on a regular basis. Irs 1040x amended return  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Irs 1040x amended return gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Irs 1040x amended return You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Irs 1040x amended return The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Irs 1040x amended return When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Irs 1040x amended return Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Irs 1040x amended return You can also ask the IRS to mail a return or an account transcript to you. Irs 1040x amended return Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Irs 1040x amended return gov or by calling 1-800-908-9946. Irs 1040x amended return Tax return and tax account transcripts are generally available for the current year and the past three years. Irs 1040x amended return Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Irs 1040x amended return Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Irs 1040x amended return If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Irs 1040x amended return Check the status of your amended return using Where's My Amended Return? Go to IRS. Irs 1040x amended return gov and enter Where's My Amended Return? in the search box. Irs 1040x amended return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs 1040x amended return It can take up to 3 weeks from the date you mailed it to show up in our system. Irs 1040x amended return Make a payment using one of several safe and convenient electronic payment options available on IRS. Irs 1040x amended return gov. Irs 1040x amended return Select the Payment tab on the front page of IRS. Irs 1040x amended return gov for more information. Irs 1040x amended return Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Irs 1040x amended return Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs 1040x amended return gov. Irs 1040x amended return Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs 1040x amended return Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs 1040x amended return gov. Irs 1040x amended return Request an Electronic Filing PIN by going to IRS. Irs 1040x amended return gov and entering Electronic Filing PIN in the search box. Irs 1040x amended return Download forms, instructions and publications, including accessible versions for people with disabilities. Irs 1040x amended return Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Irs 1040x amended return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Irs 1040x amended return An employee can answer questions about your tax account or help you set up a payment plan. Irs 1040x amended return Before you visit, check the Office Locator on IRS. Irs 1040x amended return gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Irs 1040x amended return If you have a special need, such as a disability, you can request an appointment. Irs 1040x amended return Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Irs 1040x amended return Apply for an Employer Identification Number (EIN). Irs 1040x amended return Go to IRS. Irs 1040x amended return gov and enter Apply for an EIN in the search box. Irs 1040x amended return Read the Internal Revenue Code, regulations, or other official guidance. Irs 1040x amended return Read Internal Revenue Bulletins. Irs 1040x amended return Sign up to receive local and national tax news and more by email. Irs 1040x amended return Just click on “subscriptions” above the search box on IRS. Irs 1040x amended return gov and choose from a variety of options. Irs 1040x amended return Phone. Irs 1040x amended return    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Irs 1040x amended return Download the free IRS2Go app from the iTunes app store or from Google Play. Irs 1040x amended return Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Irs 1040x amended return gov, or download the IRS2Go app. Irs 1040x amended return Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs 1040x amended return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs 1040x amended return Most VITA and TCE sites offer free electronic filing. Irs 1040x amended return Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Irs 1040x amended return Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Irs 1040x amended return Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Irs 1040x amended return If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs 1040x amended return The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs 1040x amended return Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs 1040x amended return Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Irs 1040x amended return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs 1040x amended return Note, the above information is for our automated hotline. Irs 1040x amended return Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Irs 1040x amended return Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Irs 1040x amended return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs 1040x amended return It can take up to 3 weeks from the date you mailed it to show up in our system. Irs 1040x amended return Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Irs 1040x amended return You should receive your order within 10 business days. Irs 1040x amended return Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Irs 1040x amended return If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Irs 1040x amended return Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Irs 1040x amended return The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Irs 1040x amended return These individuals can also contact the IRS through relay services such as the Federal Relay Service. Irs 1040x amended return Walk-in. Irs 1040x amended return   You can find a selection of forms, publications and services — in-person. Irs 1040x amended return Products. Irs 1040x amended return You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs 1040x amended return Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs 1040x amended return Services. Irs 1040x amended return You can walk in to your local TAC for face-to-face tax help. Irs 1040x amended return An employee can answer questions about your tax account or help you set up a payment plan. Irs 1040x amended return Before visiting, use the Office Locator tool on IRS. Irs 1040x amended return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Irs 1040x amended return   Please contact the office for times when assistance will be available. Irs 1040x amended return Mail. Irs 1040x amended return   You can send your order for forms, instructions, and publications to the address below. Irs 1040x amended return You should receive a response within 10 business days after your request is received. Irs 1040x amended return Internal Revenue Service 1201 N. Irs 1040x amended return Mitsubishi Motorway Bloomington, IL 61705-6613   Taxpayer Advocate Service. Irs 1040x amended return   The Taxpayer Advocate Service Is here to help you. Irs 1040x amended return The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs 1040x amended return Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Irs 1040x amended return   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Irs 1040x amended return We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Irs 1040x amended return You face (or your business is facing) an immediate threat of adverse action. Irs 1040x amended return You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Irs 1040x amended return   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Irs 1040x amended return Here's why we can help: TAS is an independent organization within the IRS. Irs 1040x amended return Our advocates know how to work with the IRS. Irs 1040x amended return Our services are free and tailored to meet your needs. Irs 1040x amended return We have offices in every state, the District of Columbia, and Puerto Rico. Irs 1040x amended return   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Irs 1040x amended return  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Irs 1040x amended return If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Irs 1040x amended return Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Irs 1040x amended return Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Irs 1040x amended return Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Irs 1040x amended return Prev  Up  Next   Home   More Online Publications
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LP 64 (Letter 1731) Frequently Asked Questions (FAQs)

What is the notice telling me?

We are trying to locate a taxpayer and are requesting your assistance.

What do I have to do?

Provide us with information you have on the taxpayer's address, home and work telephone numbers, the name and address of known employer(s) or others who may know how we can locate the taxpayer, and any other information that might help us locate this person.

How much time do I have?

Please respond at your earliest convenience by mail using the enclosed envelope or by phone by calling the number shown at the top of the letter. Responses are requested within 10 days of the date on the letter. If you would like your name excluded from the list of persons we have contacted, please let us know that when you call.

Who should I contact?

Please respond by correspondence or call the number provided in the letter. The person who answers will be able to assist you.

Page Last Reviewed or Updated: 30-Jan-2014

The Irs 1040x Amended Return

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