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Turbotax Amended Return 2011

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Turbotax Amended Return 2011

Turbotax amended return 2011 Index Symbols (ITIN), Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). Turbotax amended return 2011 10% tax for early withdrawal from IRA or retirement plan (see Early withdrawal from deferred interest account, subheading: Tax on) 10-year tax option, 10-Year Tax Option 401(k) plans Tax treatment of contributions, Elective deferrals. Turbotax amended return 2011 403(b) plans Rollovers, Rollovers, Rollover From Employer's Plan Into an IRA, Rollover from a qualified retirement plan into a Roth IRA. Turbotax amended return 2011 457 plans (see Section 457 deferred compensation plans) 529 plans (see Qualified tuition programs) 59 rule, Age 59½ rule. Turbotax amended return 2011 60 day rule, Time limit for making a rollover contribution. Turbotax amended return 2011 70 rule, Age 70½ rule. Turbotax amended return 2011 , Nonresident alien spouse. Turbotax amended return 2011 A Abandonment of home, Abandonment. Turbotax amended return 2011 Abortion Deductibility as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Abroad, citizens traveling or working, Employees of foreign governments or international organizations. Turbotax amended return 2011 , Foreign Employer, Travel Outside the United States, Travel Primarily for Business (see also Citizens outside U. Turbotax amended return 2011 S. Turbotax amended return 2011 ) (see also Foreign employment) Absence, temporary, Temporary absences. Turbotax amended return 2011 , Temporary absences. Turbotax amended return 2011 Accelerated death benefits, Accelerated Death Benefits, Exclusion for terminal illness. Turbotax amended return 2011 Accident insurance, Accident or Health Plan Cafeteria plans, Cafeteria plans. Turbotax amended return 2011 Long-term care, Long-term care coverage. Turbotax amended return 2011 , Long-Term Care Insurance Contracts Accidental death benefits, Accidental death benefits. Turbotax amended return 2011 Accidents, car, Deductible losses. Turbotax amended return 2011 Value determination, Car value. Turbotax amended return 2011 Willful negligence or intentional act as cause, Nondeductible losses. Turbotax amended return 2011 Accountable plans for employee reimbursements, Accountable Plans, Related to employer. Turbotax amended return 2011 Accountants Basis to include fees of, Cost Basis CPA review courses, Bar or CPA Review Course Accounting methods, Accounting Methods Accrual method (see Accrual method taxpayers) Cash method (see Cash method taxpayers) Change of Depreciation, to deduct unclaimed amount, Changing your accounting method to deduct unclaimed depreciation. Turbotax amended return 2011 Accounting periods, Accounting Periods Calendar year, When Do I Have To File?, Accounting Periods, Accounting period. Turbotax amended return 2011 Change in, standard deduction not allowed, Persons not eligible for the standard deduction. Turbotax amended return 2011 Fiscal year, Accounting Periods, Fiscal year taxpayers. Turbotax amended return 2011 , Fiscal Years Fringe benefits, Accounting period. Turbotax amended return 2011 Accrual method taxpayers, Accrual method. Turbotax amended return 2011 Taxes paid during tax year, deduction of, You must pay the tax during your tax year. Turbotax amended return 2011 Accumulation distribution of trusts Tax on, Other taxes. Turbotax amended return 2011 Accuracy-related penalties, Accuracy-related penalty. Turbotax amended return 2011 Acknowledgment, Acknowledgment. Turbotax amended return 2011 Activities not for profit, Activity not for profit. Turbotax amended return 2011 Address, Name and Address Change of, Change of Address Foreign, Foreign address. Turbotax amended return 2011 P. Turbotax amended return 2011 O. Turbotax amended return 2011 box, P. Turbotax amended return 2011 O. Turbotax amended return 2011 box. Turbotax amended return 2011 Address, filing, Where To File Adjusted basis, Adjusted Basis, Postponed gain from sale of home. Turbotax amended return 2011 Decreases to basis, Decreases to Basis Depreciation, Depreciation and section 179 deduction. Turbotax amended return 2011 Easements, Easements. Turbotax amended return 2011 Energy conservation subsidies exclusion, Exclusion of subsidies for energy conservation measures. Turbotax amended return 2011 Gifts, Property Received as a Gift Home sale (see Sale of home) Improvements, Improvements. Turbotax amended return 2011 Increases to basis, Increases to Basis Local assessments, Assessments for local improvements. Turbotax amended return 2011 Sales of property, Adjusted basis. Turbotax amended return 2011 Section 179 deduction, Depreciation and section 179 deduction. Turbotax amended return 2011 Adjusted gross income (AGI) Medical and dental expenses and limit of deduction, How Much of the Expenses Can You Deduct?, What Tax Form Do You Use? Retirement savings contribution credit, Special Rules Adjustments, Adjustments and tax preference items. Turbotax amended return 2011 Administrators, estate (see Executors and administrators) Adopted child, Exception for adopted child. Turbotax amended return 2011 , Adopted child. Turbotax amended return 2011 , Adopted child. Turbotax amended return 2011 , Taxpayer identification numbers for adoptees. Turbotax amended return 2011 Earned income credit, Adopted child. Turbotax amended return 2011 Adoption, Adoption Credit, Child with special needs. Turbotax amended return 2011 ATIN, Adoption taxpayer identification number (ATIN). Turbotax amended return 2011 , Adoption taxpayer identification number (ATIN). Turbotax amended return 2011 Child tax credit, Adopted child. Turbotax amended return 2011 (see also Child tax credit) Credits, Personal Expenses Married filing separately, Special Rules Taking, When to take the credit. Turbotax amended return 2011 Employer assistance, Adoption Assistance Exception for adopted child, Exception for adopted child. Turbotax amended return 2011 Exemption for child, Personal Expenses Expenses not deductible Foster care prior to, no charitable deduction, Foster parents. Turbotax amended return 2011 No charitable deduction for, Personal Expenses Foreign child, Foreign child. Turbotax amended return 2011 Medical and dental expenses of adopted child, Qualifying Child Taxpayer identification number, Adoption taxpayer identification number (ATIN). Turbotax amended return 2011 , Taxpayer identification numbers for aliens. Turbotax amended return 2011 Taxpayer identification numbers (TINs), Adoption taxpayer identification number (ATIN). Turbotax amended return 2011 Age Children's investments (see Children, subheading: Investment income of child under age 18) Form 1040EZ, taxpayer under 65 may use, You can use Form 1040EZ if all of the following apply. Turbotax amended return 2011 Gross income and filing requirements (Table 1-1), Introduction IRAs Contribution cutoff at age 70, Age 70½ rule. Turbotax amended return 2011 Distribution prior to age 59, Age 59½ rule. Turbotax amended return 2011 Distribution required at age 70, IRA owners. Turbotax amended return 2011 , Excess Accumulations (Insufficient Distributions) Pension distributions required at age 70, Age 70½. Turbotax amended return 2011 Retirement plan recipients over age 75, Who must use the General Rule. Turbotax amended return 2011 Roth IRAs, Is there an age limit for contributions?, Must you withdraw or use Roth IRA assets? Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Age test, Age Test (see Qualifying child) Agents, Losses on sales or trades of property. Turbotax amended return 2011 (see also Fiduciaries) Income paid to, Payment to an agent. Turbotax amended return 2011 Signing return, When someone can sign for you. Turbotax amended return 2011 AGI (see Adjusted gross income (AGI)) Agricultural workers (see Farmers) (see Farmworkers) Agriculture (see Farming) Aircraft Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. Turbotax amended return 2011 Airline club dues Not entertainment expenses, Club dues and membership fees. Turbotax amended return 2011 Airplanes, donations of, Cars, boats, and airplanes. Turbotax amended return 2011 Airport transportation Business-related travel expense, Table 26-1. Turbotax amended return 2011 Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Turbotax amended return 2011 Alaska Standard meal allowance, Standard meal allowance for areas outside the continental United States. Turbotax amended return 2011 Alaska Permanent Fund dividends, Alaska Permanent Fund dividend. Turbotax amended return 2011 Child's dividends, Child's Alaska Permanent Fund dividends. Turbotax amended return 2011 Income from, You can use Form 1040EZ if all of the following apply. Turbotax amended return 2011 , You can use Form 1040A if all of the following apply. Turbotax amended return 2011 , Alaska Permanent Fund dividends. Turbotax amended return 2011 Investment income not to include, Investment income. Turbotax amended return 2011 Alaska Unemployment Compensation Fund, Contributions to state benefit funds. Turbotax amended return 2011 Alcohol rehabilitation centers Deductibility of medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Alcoholic beverages IRA prohibited transactions in, Collectibles. Turbotax amended return 2011 Aliens, Individual taxpayer identification number (ITIN) for aliens. Turbotax amended return 2011 , Not earned income. Turbotax amended return 2011 Dual-status (see Dual-status taxpayers) Filing required, Aliens Nonresident (see Nonresident aliens) Resident (see Resident aliens) Alimony, Alimony, Introduction, Spouse or former spouse. Turbotax amended return 2011 , Payments not alimony. Turbotax amended return 2011 , Payments to a third party. Turbotax amended return 2011 , Life insurance premiums. Turbotax amended return 2011 , Payments for jointly-owned home. Turbotax amended return 2011 , Mortgage payments. Turbotax amended return 2011 , Taxes and insurance. Turbotax amended return 2011 , Other payments to a third party. Turbotax amended return 2011 , Instruments Executed After 1984, Exception for instruments executed before 1985. Turbotax amended return 2011 , Alimony requirements. Turbotax amended return 2011 , Cash payment requirement. Turbotax amended return 2011 , Payments to a third party. Turbotax amended return 2011 , Payments designated as not alimony. Turbotax amended return 2011 , Spouses cannot be members of the same household. Turbotax amended return 2011 , Liability for payments after death of recipient spouse. Turbotax amended return 2011 , Substitute payments. Turbotax amended return 2011 , How To Deduct Alimony Paid, How To Report Alimony Received, Recapture Rule, Including the recapture in income. Turbotax amended return 2011 , Deducting the recapture. Turbotax amended return 2011 Definition of, Introduction Mortgage payments Interest deduction, Divorced or separated individuals. Turbotax amended return 2011 Reporting of income, Alimony. Turbotax amended return 2011 Alternative filing methods Electronic (see E-file ) Alternative minimum tax (AMT), Alternative Minimum Tax (AMT) Child's tax, figuring of, Alternative minimum tax. Turbotax amended return 2011 Exempt-interest dividends, Alternative minimum tax treatment. Turbotax amended return 2011 Filing requirements (Table 1-3), Figuring tax. Turbotax amended return 2011 Incentive stock option, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 Nonrefundable credit for prior year tax, Nonrefundable Credit for Prior Year Minimum Tax Alternative motor vehicle credit, Alternative Motor Vehicle Credit, Amount of credit. Turbotax amended return 2011 Ambulance service personnel Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty Amended returns, Amended Returns and Claims for Refund, Form 1040X. Turbotax amended return 2011 , Filing Form 1040X. Turbotax amended return 2011 (see also Form 1040X) Itemized deduction, change to standard deduction, Changing your mind. Turbotax amended return 2011 Standard deduction, change to itemized deductions, Changing your mind. Turbotax amended return 2011 American citizens abroad, U. Turbotax amended return 2011 S. Turbotax amended return 2011 Citizens and Resident Aliens Living Abroad (see also Citizens outside U. Turbotax amended return 2011 S. Turbotax amended return 2011 ) Employment (see Foreign employment) American Indians (see Indians) American opportunity credit Tuition deduction and, Who Cannot Claim the Deduction American Samoa Income from, Individuals With Income From U. Turbotax amended return 2011 S. Turbotax amended return 2011 Possessions Amortization Bond premiums, treatment of, Amortization of bond premium. Turbotax amended return 2011 AMT (see Alternative minimum tax (AMT)) Annuities, Rollovers (see also Rollovers) Cost computation, Cost (Investment in the Contract) Decedent's unrecovered investment in, Form W-2. Turbotax amended return 2011 Early distributions from, Tax on Early Distributions Deferred annuity contracts, 5% rate on certain early distributions from deferred annuity contracts. Turbotax amended return 2011 , Additional exceptions for nonqualified annuity contracts. Turbotax amended return 2011 Estimated tax, Withholding and estimated tax. Turbotax amended return 2011 Exclusion limit, Exclusion limit. Turbotax amended return 2011 General Rule Annuity starting before November 19, 1996, Annuity starting before November 19, 1996. Turbotax amended return 2011 Nonqualified plans and qualified plans for recipients over 75 years, Who must use the General Rule. Turbotax amended return 2011 Purchased annuities, Purchased annuities. Turbotax amended return 2011 Survivor's annuity, Survivors of retirees. Turbotax amended return 2011 Guaranteed payments, Guaranteed payments. Turbotax amended return 2011 IRAs as, Kinds of traditional IRAs. Turbotax amended return 2011 Joint return, Joint return. Turbotax amended return 2011 Loans from plan, Loans. Turbotax amended return 2011 Lump-sum distributions, Lump-Sum Distributions Multiple plan benefits, More than one program. Turbotax amended return 2011 , More than one annuity. Turbotax amended return 2011 Partly taxable payments, Partly taxable payments. Turbotax amended return 2011 Purchased annuities, Purchased annuities. Turbotax amended return 2011 Reporting of, How To Report Retirement annuities, Retirement Plans, Pensions, and Annuities (see also Retirement plans) Rollovers, Rollovers Sale of, Sale of Annuity Gain as ordinary income, Tax-free exchange. Turbotax amended return 2011 Simplified method to calculate tax-free part of annuity payment, Simplified Method Survivor's annuity, Survivors of retirees. Turbotax amended return 2011 Worksheet for computation, How to use the Simplified Method. Turbotax amended return 2011 Survivor annuities, Survivors and Beneficiaries Trade of insurance policies and annuities, Insurance policies and annuities. Turbotax amended return 2011 Unrecovered investment, Unrecovered Investment in Annuity Withholding, Form W-2. Turbotax amended return 2011 , Pensions and Annuities, Withholding and estimated tax. Turbotax amended return 2011 Annulled marriages Filing status, Annulled marriages. Turbotax amended return 2011 Anthrax incidents (see Terrorist attacks) Antiques (see Collectibles) Appliances Deterioration and damage, not casualty loss, Progressive deterioration. Turbotax amended return 2011 Appraisal fees, Appraisal Fees Donated property, Appraisal Fees Not deductible as interest, Amounts charged for services. Turbotax amended return 2011 Real estate transactions, when required by lender, Settlement costs. Turbotax amended return 2011 Appraisals Casualty or theft losses, Appraisal. Turbotax amended return 2011 , Costs of photographs and appraisals. Turbotax amended return 2011 Archer MSAs, Medical savings accounts (MSAs). Turbotax amended return 2011 Contributions, Archer MSA contributions. Turbotax amended return 2011 Medical expenses paid for decedent from, Decedent Not deductible as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Armed forces, Types of Qualified Organizations, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Armed Forces reservists. Turbotax amended return 2011 (see also Reservists) (see also Veterans' organizations) Combat zone Extension to file return, Individuals Serving in Combat Zone Signing return for spouse, Spouse in combat zone. Turbotax amended return 2011 Dependency allotments, Armed Forces dependency allotments. Turbotax amended return 2011 Disability pay, Disability. Turbotax amended return 2011 Disability pensions, Military and Government Disability Pensions GI Bill benefits, Tuition payments and allowances under the GI Bill. Turbotax amended return 2011 Military, Military uniforms. Turbotax amended return 2011 Military quarters allotments, Tax-exempt military quarters allowances. Turbotax amended return 2011 Naval officers on permanent duty aboard ship, Members of the Armed Forces. Turbotax amended return 2011 Permanent duty overseas, Members of the Armed Forces. Turbotax amended return 2011 Real estate taxes when receiving housing allowance, Ministers' and military housing allowances. Turbotax amended return 2011 , Ministers' and military housing allowance. Turbotax amended return 2011 Rehabilitative program payments, Veterans' benefits. Turbotax amended return 2011 Reserves, Armed Forces reservists traveling more than 100 miles from home. Turbotax amended return 2011 Retirees' pay Taxable income, Military retirement pay. Turbotax amended return 2011 Uniforms, Military uniforms. Turbotax amended return 2011 Wages, Military Armed Forces Retiree's pay withholding, Military retirees. Turbotax amended return 2011 Art works As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc. Turbotax amended return 2011 Capital gains or losses from sale or trade of, Investment interest deducted. Turbotax amended return 2011 Artists, performing (see Performing artists) Assessments, local (see Local assessments) Assistance (see Tax help) Assistance, tax (see Tax help) Assumption of mortgage, Assumption of mortgage. Turbotax amended return 2011 Fees not included in basis, Settlement costs. Turbotax amended return 2011 At-risk rules Rental property, At-Risk Rules Athletic events Charitable contributions, amount deductible, Athletic events. Turbotax amended return 2011 ATIN (Adoption taxpayer identification number), Adoption taxpayer identification number (ATIN). Turbotax amended return 2011 Attachment of wages, Garnisheed wages. Turbotax amended return 2011 Attachments to return, Attachments Attorneys Bar review courses, Bar or CPA Review Course Attorneys' fees, Legal Expenses, Personal Legal Expenses Basis to include, Cost Basis Social security and railroad retirement benefits, deductions for, Legal expenses. Turbotax amended return 2011 Title to property, for preparation, filing, etc. Turbotax amended return 2011 , Settlement costs. Turbotax amended return 2011 Audits Travel expense records, If your return is examined. Turbotax amended return 2011 Auto insurance Medical expenses covered by, not deductible, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Automatic extension of time to file, Automatic Extension, When to file. Turbotax amended return 2011 Form 4868, E-file options. Turbotax amended return 2011 Automatic investment services Holding period, determination of, Automatic investment service. Turbotax amended return 2011 Awards (see Prizes and awards) Away-from-home travel (see Travel and transportation expenses) B Babysitting, Babysitting. Turbotax amended return 2011 Back pay, award for, Back pay awards. Turbotax amended return 2011 Emotional distress damages under title VII of Civil Rights Act of 1964, Court awards and damages. Turbotax amended return 2011 Backup withholding, Backup Withholding, Backup withholding. Turbotax amended return 2011 , Backup withholding. Turbotax amended return 2011 Dividend income, Backup withholding. Turbotax amended return 2011 , Reporting tax withheld. Turbotax amended return 2011 Penalties, Penalties. Turbotax amended return 2011 Bad debts Bank deposit, loss due to bank's insolvency or bankruptcy, Nonbusiness bad debt. Turbotax amended return 2011 Reporting on Schedule D (Form 1040), How to report. Turbotax amended return 2011 Claim for refund, Exceptions for special types of refunds. Turbotax amended return 2011 , Filing a claim for refund. Turbotax amended return 2011 Nonbusiness, Nonbusiness Bad Debts Recovery, Recoveries Reporting of, How to report bad debts. Turbotax amended return 2011 Short-term capital loss, How to report bad debts. Turbotax amended return 2011 When deductible, When deductible. Turbotax amended return 2011 Baggage Business-related travel expense, Table 26-1. Turbotax amended return 2011 Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Turbotax amended return 2011 Balance due, Refund or balance due. Turbotax amended return 2011 Bankruptcy Canceled debt not deemed to be income, Excluded debt. Turbotax amended return 2011 Financial institution's bankruptcy causing deductible loss, Loss on Deposits Reporting of, Loss on deposits. Turbotax amended return 2011 Banks Automatic investment service, determination of holding period, Automatic investment service. Turbotax amended return 2011 IRAs with, When and How Can a Traditional IRA Be Opened? Losses on deposits, when casualty losses, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits Reporting of, Loss on deposits. Turbotax amended return 2011 Money market accounts, Money Market Funds Bar associations Charitable contributions to, Contributions to Nonqualified Organizations Bar employees Tips (see Tip income) Bar review courses, Bar or CPA Review Course Bargain sales As charitable contributions, Bargain sales. Turbotax amended return 2011 Basis of purchase, Bargain purchases. Turbotax amended return 2011 Barter income, Bartering Definition of bartering, Bartering Form 1099-B, Form 1099-B from barter exchange. Turbotax amended return 2011 Basis Adjusted basis, Adjusted Basis Allocation between business and personal use, Introduction Bad debts, Basis in bad debt required. Turbotax amended return 2011 Bargain purchases, Bargain purchases. Turbotax amended return 2011 Bonds, Stocks and Bonds, Bond premium. Turbotax amended return 2011 Cost basis, Useful Items - You may want to see: IRAs for nondeductible contributions, Cost basis. Turbotax amended return 2011 , Partly taxable. Turbotax amended return 2011 Definition of, Introduction Gifts, Property Received as a Gift Home sales (see Sale of home) Improvements to real estate, Improvements. Turbotax amended return 2011 Involuntary conversion, Involuntary Conversions Like-kind exchanges, Basis of property received. Turbotax amended return 2011 Other than cost, Basis Other Than Cost, Tax-exempt obligations. Turbotax amended return 2011 , No gain or loss. Turbotax amended return 2011 Points not to be included, Settlement costs. Turbotax amended return 2011 , Points. Turbotax amended return 2011 Property received for services, Property Received for Services Real estate, Real Property Restricted property, Restricted property. Turbotax amended return 2011 Stock or stock rights, Basis. Turbotax amended return 2011 Tax-exempt obligations Bonds, Tax-exempt obligations. Turbotax amended return 2011 Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses Beetles Damage or destruction to trees and plants, when casualty loss, Progressive deterioration. Turbotax amended return 2011 Beneficiaries, Beneficiary of an estate or trust. Turbotax amended return 2011 , Rollover by surviving spouse. Turbotax amended return 2011 , Estate and trust income. Turbotax amended return 2011 , Losses. Turbotax amended return 2011 (see also Estate beneficiaries) (see also Trust beneficiaries) Bequests, Estate and trust income. Turbotax amended return 2011 , Losses. Turbotax amended return 2011 , Gifts and inheritances. Turbotax amended return 2011 , Income from property received as a gift. Turbotax amended return 2011 (see also Estate beneficiaries) (see also Gifts) (see also Inheritance) Bicycle Fringe benefit, Qualified bicycle commuting. Turbotax amended return 2011 Bingo, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Contributions From Which You Benefit Birth control pills, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Birth of child, Death or birth of child. Turbotax amended return 2011 Head of household, qualifying person to file as, Death or birth. Turbotax amended return 2011 , Death or birth. Turbotax amended return 2011 Social security number to be obtained, Born and died in 2013. Turbotax amended return 2011 Birth of dependent, Death or birth. Turbotax amended return 2011 Blackmail Losses due to, Theft Blind persons Exemption from withholding, Age 65 or older or blind. Turbotax amended return 2011 Guide dogs, deductible as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Impairment-related work expenses, deduction for, Impairment-Related Work Expenses Standard deduction for, Introduction, Higher Standard Deduction for Blindness Blood banks No charitable deduction for blood donations to, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Value of Time or Services Blue books to determine fair market value, Cars, boats, and airplanes. Turbotax amended return 2011 Boats Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. Turbotax amended return 2011 Donations of, Cars, boats, and airplanes. Turbotax amended return 2011 Body scan, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Bona fide business purpose Travel expenses, Bona fide business purpose. Turbotax amended return 2011 Work-related education, Qualifying Work-Related Education Bonds Adjusted basis for, Stocks and Bonds Amortization of premium, Amortization of bond premium. Turbotax amended return 2011 , Amortizable Premium on Taxable Bonds As capital assets, Capital Assets and Noncapital Assets, Stocks, stock rights, and bonds. Turbotax amended return 2011 Convertible bonds, Convertible stocks and bonds. Turbotax amended return 2011 Discounted Capital gain or loss, Discounted Debt Instruments Issued at discount, Original Issue Discount (OID) Market discount bonds, Market discount bonds. Turbotax amended return 2011 Original issue discount, Original Issue Discount (OID) Redemption of, Redemption or retirement of bonds. Turbotax amended return 2011 Retirement of, Retirement bonds. Turbotax amended return 2011 , Redemption or retirement of bonds. Turbotax amended return 2011 Sale of, Bonds Sold Between Interest Dates Savings, U. Turbotax amended return 2011 S. Turbotax amended return 2011 Savings Bonds, Series HH bonds. Turbotax amended return 2011 , Series EE and series I bonds. Turbotax amended return 2011 Sold at premium, computation of adjusted basis, Bond premium. Turbotax amended return 2011 State or local government, tax-exempt, Tax-exempt state and local government bonds. Turbotax amended return 2011 Tax-exempt, State or Local Government Obligations Bonuses, Supplemental Wages, Bonuses and awards. Turbotax amended return 2011 , Employee awards or bonuses. Turbotax amended return 2011 Bookkeeping (see Recordkeeping requirements) Books to determine fair market value, Car value. Turbotax amended return 2011 Borrowed funds, Loans. Turbotax amended return 2011 , Items You Cannot Deduct (see also Loans) Used for charitable contributions, deduction for, Borrowed funds. Turbotax amended return 2011 Bottled water, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Boy Scouts Charitable contributions to, Examples. Turbotax amended return 2011 , Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check Braille books, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Breach of contract Damages as income, Court awards and damages. Turbotax amended return 2011 employment, Damages for Breach of Employment Contract Breast pump and supplies, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Bribes, Bribes. Turbotax amended return 2011 , List of Nondeductible Expenses Brokers Form 1099-B, Sales and Trades IRAs with, When and How Can a Traditional IRA Be Opened? Commissions, Brokers' commissions. Turbotax amended return 2011 , Brokers' commissions. Turbotax amended return 2011 Receiving dividends, reporting on Form 1099-MISC, Form 1099-MISC. Turbotax amended return 2011 Burglary Losses due to, Theft Burial expenses, List of Nondeductible Expenses (see Funerals) Business associates, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. Turbotax amended return 2011 Business expenses, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Job search expenses, Job interview expenses. Turbotax amended return 2011 Meal expenses (see Meal and lodging expenses) Reimbursements, Expense allowances. Turbotax amended return 2011 , Allowances and reimbursements. Turbotax amended return 2011 Returning excess for business expenses, Returning Excess Reimbursements Returning excess business expenses, Expense allowances. Turbotax amended return 2011 Travel (see Travel and transportation expenses) Work-related education, What Expenses Can Be Deducted Business organizations Charitable contributions to, Contributions to Nonqualified Organizations Business property As gift, adjusted basis for, Business property. Turbotax amended return 2011 Basis for depreciation, Basis for depreciation. Turbotax amended return 2011 Property use changed to, adjusted basis for, Property Changed From Personal to Business or Rental Use Sales or exchanges Like-kind exchanges, Like-kind exchanges. Turbotax amended return 2011 Business tax credits Claim for refund, Exceptions for special types of refunds. Turbotax amended return 2011 Business use of home, Home Office C Cafeteria plans, Cafeteria plans. Turbotax amended return 2011 Calendar year taxpayers Accounting periods, When Do I Have To File?, Accounting Periods, Accounting period. Turbotax amended return 2011 Filing due date, When Do I Have To File? California Nonoccupational Disability Benefit Fund, Contributions to state benefit funds. Turbotax amended return 2011 Campaign contributions, Campaign contributions. Turbotax amended return 2011 , Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Presidential Election Campaign Fund, Presidential Election Campaign Fund Campaign expenses, Campaign Expenses Canada Resident of, Citizen or Resident Test, Child in Canada or Mexico. Turbotax amended return 2011 Cancellation of debt, Canceled Debts Exceptions to treatment as income, Exceptions Candidates for public office Contributions to, no charitable deduction for, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Capital assets Coal and iron ore, Coal and iron ore. Turbotax amended return 2011 Definition of, Capital Assets and Noncapital Assets Capital expenses, Capital expenses. Turbotax amended return 2011 Capital gains or losses, Capital Gains and Losses, How to report and postpone gain. Turbotax amended return 2011 , Reporting Gains and Losses Bad debts as short-term capital loss, How to report bad debts. Turbotax amended return 2011 Carryover of, Long-term gains and losses. Turbotax amended return 2011 , Capital loss carryover. Turbotax amended return 2011 Worksheet, Figuring your carryover. Turbotax amended return 2011 Character of gain, Capital Gains and Losses Character of loss, Capital Gains and Losses Child's distributions and dividends, reporting of, Child's capital gain distributions. Turbotax amended return 2011 , Capital gain distributions and qualified dividends. Turbotax amended return 2011 Collectibles, Investment interest deducted. Turbotax amended return 2011 Deductions, Capital Losses Limit on, Limit on deduction. Turbotax amended return 2011 Distributions, Money Market Funds Form 1040 or 1040A to be used, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 , How To Report Dividend Income Form 8949, Reporting Gains and Losses Hobbies, sales from collections, Hobby losses. Turbotax amended return 2011 Holding period, determination of, Holding Period How to report, Reporting Capital Gains and Losses Installment sales and, Installment sales. Turbotax amended return 2011 Lump-sum distributions from pensions and annuities, Capital Gain Treatment Mutual funds paying, Capital Gain Distributions Net capital gain, Capital Gains and Losses, Long-term gains and losses. Turbotax amended return 2011 , Capital Gain Tax Rates Included as investment income, Choosing to include net capital gain. Turbotax amended return 2011 Net long-term capital loss, Long-term gains and losses. Turbotax amended return 2011 Sale of personal items, Sale of personal items. Turbotax amended return 2011 Sale or trade of property held more than 1 year, Long-term or short-term. Turbotax amended return 2011 , Long-term gains and losses. Turbotax amended return 2011 Schedule D, Reporting Gains and Losses , Reporting Capital Gains and Losses Section 1250 gains from sale of real property, Capital Gains and Losses, Unrecaptured section 1250 gain. Turbotax amended return 2011 State or local government bonds, tax-exempt, Tax-exempt state and local government bonds. Turbotax amended return 2011 Tax rates, Capital Gain Tax Rates Total net gain, Total net gain or loss. Turbotax amended return 2011 Total net loss, Total net gain or loss. Turbotax amended return 2011 Undistributed gains, Long-term gains and losses. Turbotax amended return 2011 Credit for tax on, Undistributed capital gains of mutual funds and REITs. Turbotax amended return 2011 , Credit for Tax on Undistributed Capital Gain Car expenses, Car expenses. Turbotax amended return 2011 Car pools, Car pools. Turbotax amended return 2011 , Car pools. Turbotax amended return 2011 Carrybacks Business tax credit carrybacks, Exceptions for special types of refunds. Turbotax amended return 2011 Carryovers Capital loss, Long-term gains and losses. Turbotax amended return 2011 , Capital loss carryover. Turbotax amended return 2011 Worksheet, Figuring your carryover. Turbotax amended return 2011 Investment interest, Limit on Deduction Cars, Transportation, Transporting school children. Turbotax amended return 2011 , Car Expenses and Other Employee Business Expenses, Car Expenses (see also Standard mileage rates) (see also Travel and transportation) Accidents resulting in casualty loss, Deductible losses. Turbotax amended return 2011 Value determination, Car value. Turbotax amended return 2011 Willful negligence or intentional act as cause, Nondeductible losses. Turbotax amended return 2011 Actual expenses, Car Expenses, Actual Car Expenses Advertising displays on, Advertising display on car. Turbotax amended return 2011 Allowances from employers, Per Diem and Car Allowances As capital assets, Capital Assets and Noncapital Assets Blue book to determine fair market value, Cars, boats, and airplanes. Turbotax amended return 2011 Books to determine fair market value, Car value. Turbotax amended return 2011 Business and personal use, allocation between, Business and personal use. Turbotax amended return 2011 , Separating expenses. Turbotax amended return 2011 Business-related travel expenses, Table 26-1. Turbotax amended return 2011 Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Turbotax amended return 2011 Car pools, Car pools. Turbotax amended return 2011 Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. Turbotax amended return 2011 Charitable organization service, use for, Car expenses. Turbotax amended return 2011 Depreciation, Depreciation and section 179 deductions. Turbotax amended return 2011 Donations of, Cars, boats, and airplanes. Turbotax amended return 2011 Fixed and variable rate (FAVR), Fixed and variable rate (FAVR). Turbotax amended return 2011 Form 2106 or 2106-EZ, how to fill out, Car expenses. Turbotax amended return 2011 Hauling tools or instruments, Hauling tools or instruments. Turbotax amended return 2011 Interest on loans, not deductible, Personal Interest Leased vehicles, Leasing a car. Turbotax amended return 2011 Medical transportation, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 , Transportation, Car expenses. Turbotax amended return 2011 Parking (see Parking fees) Personal property taxes on, deduction of, Personal Property Taxes Reporting of, How To Report Table 26-3 showing forms to be used, Per diem allowance more than federal rate. Turbotax amended return 2011 Sale, trade-in, or other disposition, Sale, Trade-In, or Other Disposition Section 179 deductions, Depreciation and section 179 deductions. Turbotax amended return 2011 Work-related education, transportation for, Using your car. Turbotax amended return 2011 Cash Dividends paid as, Introduction Rebates, Cash rebates. Turbotax amended return 2011 Sales of property for, Payment of cash. Turbotax amended return 2011 Cash contributions, records to keep, Cash Contributions Cash method taxpayers, Cash method. Turbotax amended return 2011 Bad debts, Basis in bad debt required. Turbotax amended return 2011 Points, deduction of, Deduction Allowed in Year Paid Real estate transactions, tax allocation, Division of real estate taxes between buyers and sellers. Turbotax amended return 2011 Taxes paid during tax year, deduction of, You must pay the tax during your tax year. Turbotax amended return 2011 Worthless securities and negotiable promissory notes, Worthless securities. Turbotax amended return 2011 Cash rebates, Cash rebates. Turbotax amended return 2011 Casualties, Home destroyed or condemned. Turbotax amended return 2011 Casualty insurance Premiums not in property basis, Settlement costs. Turbotax amended return 2011 Reimbursements from, Casualty insurance and other reimbursements. Turbotax amended return 2011 Casualty losses, Nonbusiness Casualty and Theft Losses, Net operating loss (NOL). Turbotax amended return 2011 , Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Adjusted basis in property, Casualty and theft losses. Turbotax amended return 2011 , Involuntary Conversions, Adjusted Basis, Adjustments to basis. Turbotax amended return 2011 Amount of loss, Figuring a Loss Appraisals, Appraisal. Turbotax amended return 2011 , Costs of photographs and appraisals. Turbotax amended return 2011 Bank deposit, loss due to bank's insolvency or bankruptcy, Casualty loss or ordinary loss. Turbotax amended return 2011 Costs Cleaning up or making repairs, Cost of cleaning up or making repairs. Turbotax amended return 2011 Photographs and appraisals, Costs of photographs and appraisals. Turbotax amended return 2011 Deductible losses, Deductible losses. Turbotax amended return 2011 $100 rule, $100 Rule When to take (Table 25-2), Gains more than losses. Turbotax amended return 2011 Deduction limits, Deduction Limits For personal property (Table 25-1), Actual reimbursement same as expected. Turbotax amended return 2011 Definition of casualty, Casualty Disasters, Employer's emergency disaster fund. Turbotax amended return 2011 , Disaster relief. Turbotax amended return 2011 (see also Disaster relief) Employer's emergency disaster fund, Employer's emergency disaster fund. Turbotax amended return 2011 Fair market value of property, Decrease in Fair Market Value Form 4684 to be filed, Forms to file. Turbotax amended return 2011 Insurance proceeds, treatment of, Insurance and Other Reimbursements Net operating losses, Net operating loss (NOL). Turbotax amended return 2011 Nondeductible losses, Deductible losses. Turbotax amended return 2011 Proof of loss, Casualty loss proof. Turbotax amended return 2011 Property used partly for business and partly for personal purposes, Property used partly for business and partly for personal purposes. Turbotax amended return 2011 Reimbursement, Insurance and Other Reimbursements Reporting of gain or loss, When To Report Gains and Losses, Losses. Turbotax amended return 2011 , How To Report Gains and Losses Single casualty on multiple properties, Single Casualty on Multiple Properties Cemeteries Charitable contributions to, Types of Qualified Organizations Certificate, mortgage credit, Who qualifies. Turbotax amended return 2011 Certificates of deposit (CDs), Certificates of deposit (CDs). Turbotax amended return 2011 , Individual Retirement Arrangements (IRAs) (see also Individual retirement arrangements (IRAs)) Chambers of commerce Charitable contributions to, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Entertainment expenses for attending meetings, Trade association meetings. Turbotax amended return 2011 Change of address, Change of Address Change of name, Name change. Turbotax amended return 2011 , Name changed. Turbotax amended return 2011 Chaplains Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty Charitable contributions, Contributions, Introduction, Organizations That Qualify To Receive Deductible Contributions, Types of Qualified Organizations, Contributions You Can Deduct, Contributions From Which You Benefit, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Token items. Turbotax amended return 2011 , Written statement. Turbotax amended return 2011 , Contributions You Cannot Deduct, Contributions to Individuals, Contributions to Nonqualified Organizations, Contributions From Which You Benefit, Contributions of Property, Determining Fair Market Value, Large quantities. Turbotax amended return 2011 , Giving Property That Has Decreased in Value, Giving Property That Has Increased in Value, Ordinary income property. Turbotax amended return 2011 , Capital gain property. Turbotax amended return 2011 , Amount of deduction — general rule. Turbotax amended return 2011 , Bargain sales. Turbotax amended return 2011 , When To Deduct, Time of making contribution. Turbotax amended return 2011 , Noncash Contributions, Additional records. Turbotax amended return 2011 , How To Report Gifts to reduce public debt, Gift To Reduce Debt Held by the Public Charitable distributions, qualified, Qualified charitable distributions (QCD). Turbotax amended return 2011 Charity benefit events Deduction amount for charitable contributions, Charity benefit events. Turbotax amended return 2011 Check-writing fees, Check-Writing Fees on Personal Account Checklists Medical and dental expense deductions (Table 21-1), Medicare A. Turbotax amended return 2011 Checks As charitable contributions, Checks. Turbotax amended return 2011 Canceled checks as evidence of travel expenses, Canceled check. Turbotax amended return 2011 Constructive receipt of, Check received or available. Turbotax amended return 2011 Child Foster child, Rule 10. Turbotax amended return 2011 You Cannot Be a Qualifying Child of Another Taxpayer, Rule 13. Turbotax amended return 2011 You Cannot Be a Qualifying Child of Another Taxpayer Married child, Married child. Turbotax amended return 2011 Child and dependent care credit, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 Due diligence, Getting the information. Turbotax amended return 2011 Earned income, Earned income. Turbotax amended return 2011 Full-time student, Rule for student-spouse or spouse not able to care for self. Turbotax amended return 2011 Married filing separately, Special Rules Payments to relatives, Payments to Relatives or Dependents Child born alive, Child born alive. Turbotax amended return 2011 Child care, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 Babysitting, Babysitting. Turbotax amended return 2011 Care providers, Childcare providers. Turbotax amended return 2011 Expenses, Child care expenses. Turbotax amended return 2011 Nursing care for healthy baby, not deductible as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Child custody, Custodial parent and noncustodial parent. Turbotax amended return 2011 Child support, Child support payments. Turbotax amended return 2011 Alimony, difference from, Payments not alimony. Turbotax amended return 2011 , Alimony requirements. Turbotax amended return 2011 , Child support. Turbotax amended return 2011 Child tax credit, Who Should File, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 , Child tax credit. Turbotax amended return 2011 , Child Tax Credit Additional credit, Additional Child Tax Credit Amount of credit, Amount of Credit Claiming, procedure for, Claiming the Credit Limits, Special Rules, Limits on the Credit Modified adjusted gross income, Modified AGI. Turbotax amended return 2011 Married filing separately, Special Rules Qualifying child, Qualifying Child Child, qualifying, Qualifying Child Childcare Credit, Child and Dependent Care Credit Provider Taxpayer identification number, Provider Identification Test Children, Adoption Assistance, Personal Expenses (see also Adoption) Additional credit on child tax credit, Additional Child Tax Credit Adoption (see Adopted child) Babysitters, Babysitting. Turbotax amended return 2011 Birth of child Head of household, qualifying person to file as, Death or birth. Turbotax amended return 2011 , Death or birth. Turbotax amended return 2011 Social security number to be obtained, Born and died in 2013. Turbotax amended return 2011 Care providers, Childcare providers. Turbotax amended return 2011 (see also Child care) Child's tax, figuring of, Step 3. Turbotax amended return 2011 Figuring the Child's Tax (Form 8615, Part III) Alternative minimum tax, Alternative minimum tax. Turbotax amended return 2011 Credit for, Who Should File, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 (see also Child and dependent care credit) (see also Child tax credit) Custody of, Custodial parent and noncustodial parent. Turbotax amended return 2011 Death of child Head of household, qualifying person to file as, Death or birth. Turbotax amended return 2011 , Death or birth. Turbotax amended return 2011 Deductions, Line 2 (deductions). Turbotax amended return 2011 Dividends of (see this heading: Investment income of child under age 18) Earnings of, Child's earnings. Turbotax amended return 2011 Filing requirements, Child's earnings. Turbotax amended return 2011 As dependents (Table 1-2), Do I Have To File a Return? Gifts to, Income from property given to a child. Turbotax amended return 2011 , Income from property received as a gift. Turbotax amended return 2011 Inclusion of child's income on parent's return (Figure 31-A), Penalty for underpayment of estimated tax. Turbotax amended return 2011 Income, calculation of, Figuring Child's Income Capital gains distributions, Capital gain distributions and qualified dividends. Turbotax amended return 2011 Investment income of, Tax on unearned income of certain children. Turbotax amended return 2011 Investment income of child under age 18 Dependent filing requirements (Table 1-2), Do I Have To File a Return? Interest and dividends, Certain Children Under Age 19 or Full-Time Students Parents' election to report on Form 1040, Certain Children Under Age 19 or Full-Time Students, Investment income of child reported on parent's return. Turbotax amended return 2011 Kidnapped, Kidnapped child. Turbotax amended return 2011 , Kidnapped child. Turbotax amended return 2011 Net unearned income, figuring of, Step 1. Turbotax amended return 2011 Figuring the Child's Net Unearned Income (Form 8615, Part I) Nontaxable income, Nontaxable income. Turbotax amended return 2011 Property received as gift, income from, Income from property received as a gift. Turbotax amended return 2011 Signing return, parent for child, Spouse unable to sign. Turbotax amended return 2011 Standard deduction for, Introduction, Standard Deduction for Dependents Stillborn, Stillborn child. Turbotax amended return 2011 Support of (see Child support) Tax credit (see Child tax credit) Tentative tax figured at parent's tax rate, Step 2. Turbotax amended return 2011 Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Transporting school children, Transporting school children. Turbotax amended return 2011 Unearned income of, Tax on unearned income of certain children. Turbotax amended return 2011 Unearned income of certain children, Introduction Form 8615, use of (Figure 31-B), Parental information, providing of, Providing Parental Information (Form 8615, lines A–C) Parents' election to report on Form 1040, Parent's Election To Report Child's Interest and Dividends Trust income, Trust income. Turbotax amended return 2011 Unearned income defined, Unearned income defined. Turbotax amended return 2011 Chronic illness Accelerated payment of life insurance proceeds (see Accelerated death benefits) Long-term care (see Long-term care insurance contracts) Church employees Filing requirements (Table 1-3), Figuring tax. Turbotax amended return 2011 Churches, temples, etc. Turbotax amended return 2011 Charitable contributions to, Examples. Turbotax amended return 2011 , Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check Convention delegates, deduction of unreimbursed expenses, Conventions. Turbotax amended return 2011 Citizen or resident test, Citizen or Resident Test Citizens outside U. Turbotax amended return 2011 S. Turbotax amended return 2011 Business travel outside U. Turbotax amended return 2011 S. Turbotax amended return 2011 , Travel Outside the United States, Travel Primarily for Business, Travel Primarily for Personal Reasons Self-employed persons, Exception 1 - No substantial control. Turbotax amended return 2011 Standard meal allowance, Standard meal allowance for areas outside the continental United States. Turbotax amended return 2011 Earned income exclusion, Reminders Employment (see Foreign employment) Extension of time to file, Individuals Outside the United States Filing requirements, U. Turbotax amended return 2011 S. Turbotax amended return 2011 Citizens and Resident Aliens Living Abroad Withholding from IRA distributions, IRA distributions delivered outside the United States. Turbotax amended return 2011 Civic associations Charitable contributions to, Contributions to Nonqualified Organizations Contributions to, no charitable deduction for, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check Civil defense organizations Charitable contributions to, Examples. Turbotax amended return 2011 Civil service retirement benefits, Civil service retirement benefits. Turbotax amended return 2011 Civil suits, Court awards and damages. Turbotax amended return 2011 (see also Damages from lawsuits) Civil tax penalties (see Penalties) Clergy, Ministers. Turbotax amended return 2011 Contributions that can be spent as individual wishes, not deductible charitable contribution, Contributions to Individuals Housing, Clergy Real estate taxes when receiving housing allowance, Ministers' and military housing allowances. Turbotax amended return 2011 , Ministers' and military housing allowance. Turbotax amended return 2011 Life insurance proceeds when chaplain died in line of duty, Public Safety Officer Killed in the Line of Duty Pensions, Pension. Turbotax amended return 2011 Special income rules, Clergy Clerical help, deductibility of, Clerical Help and Office Rent Clients, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. Turbotax amended return 2011 Closing costs Real property transactions, Settlement costs. Turbotax amended return 2011 Sale of home, Settlement fees or closing costs. Turbotax amended return 2011 Clothing Military, Military uniforms. Turbotax amended return 2011 Moth damage, not casualty loss, Progressive deterioration. Turbotax amended return 2011 Uniforms Charitable organization requiring, deduction for cost and upkeep of, Uniforms. Turbotax amended return 2011 Used clothing, charitable deduction for fair market value, Used clothing and household items. Turbotax amended return 2011 work, Work Clothes and Uniforms Club dues and membership fees Entertainment expenses, Club dues and membership fees. Turbotax amended return 2011 Co-owners Dwelling unit used as home by co-owner, rental income and expense allocation, Shared equity financing agreement. Turbotax amended return 2011 Coal and iron ore, Coal and iron ore. Turbotax amended return 2011 Coins (see Collectibles) Collectibles As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc. Turbotax amended return 2011 Gains or losses from sale or trade of, Investment interest deducted. Turbotax amended return 2011 IRA investment in, Investment in Collectibles, Exception. Turbotax amended return 2011 College professor Research expenses, Research Expenses of a College Professor Colleges and universities Charitable contributions to, Examples. Turbotax amended return 2011 , Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check Athletic events, amount deductible, Athletic events. Turbotax amended return 2011 Education costs, Qualified tuition programs (QTPs). Turbotax amended return 2011 (see also Qualified tuition programs) Employer-provided educational assistance, Qualified Education Expenses (see also Educational assistance) Combat zone Extension to file return, Individuals Serving in Combat Zone Signing return for spouse, Spouse in combat zone. Turbotax amended return 2011 Commission drivers Deduction of expenses, Statutory employees. Turbotax amended return 2011 Commissions, Supplemental Wages Advance, Advance commissions and other earnings. Turbotax amended return 2011 IRAs with brokers, Brokers' commissions. Turbotax amended return 2011 , Brokers' commissions. Turbotax amended return 2011 Property basis to include when buyer pays, Settlement costs. Turbotax amended return 2011 Sharing of (kickbacks), Kickbacks. Turbotax amended return 2011 Unearned, deduction for repayment of, Advance commissions and other earnings. Turbotax amended return 2011 Commodities Derivative financial instruments, Capital Assets and Noncapital Assets Common law marriage, Considered married. Turbotax amended return 2011 Communist organizations Charitable contributions to, Contributions to Nonqualified Organizations Community property, Community income. Turbotax amended return 2011 , Community property. Turbotax amended return 2011 Alimony, difference from, Payments not alimony. Turbotax amended return 2011 IRAs, Community property laws. Turbotax amended return 2011 Married filing separately, Community property states. Turbotax amended return 2011 Medical and dental expenses, Community property states. Turbotax amended return 2011 Commuting expenses, Commuting expenses. Turbotax amended return 2011 , Commuting Expenses Employer-provided commuter vehicle, Commuter highway vehicle. Turbotax amended return 2011 Compensation, Wages, Salaries, and Other Earnings (see also Wages and salaries) Defined for IRA purposes, What is compensation? Defined for Roth IRA purposes, Compensation. Turbotax amended return 2011 Employee, Employee Compensation Miscellaneous compensation, Miscellaneous Compensation Nonemployee, Nonemployee compensation. Turbotax amended return 2011 Unemployment, Unemployment compensation. Turbotax amended return 2011 Computation of tax, Computations Equal amounts, Equal amounts. Turbotax amended return 2011 Negative amounts, Negative amounts. Turbotax amended return 2011 Rounding off dollars, Rounding off dollars. Turbotax amended return 2011 Computer, Depreciation on Computers Condemnation of property, Home destroyed or condemned. Turbotax amended return 2011 , Condemnations. Turbotax amended return 2011 Basis computation, Involuntary Conversions Disaster areas, government-ordered demolition of unsafe home, Deductible losses. Turbotax amended return 2011 Period of ownership and use, Previous home destroyed or condemned. Turbotax amended return 2011 Confidential information Privacy Act and paperwork reduction information, Reminders Travel expenses and, Confidential information. Turbotax amended return 2011 Constructive receipt of income, Constructive receipt. Turbotax amended return 2011 , Payment to an agent. Turbotax amended return 2011 , Constructive receipt. Turbotax amended return 2011 Contributions, Gift To Reduce Debt Held by the Public, Campaign contributions. Turbotax amended return 2011 , Contributions, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations, How To Report (see also Campaign contributions) (see also Charitable contributions) Nontaxable combat pay, Nontaxable combat pay. Turbotax amended return 2011 Political, Political Contributions Reservist repayments, Qualified reservist repayments. Turbotax amended return 2011 Retirement (see specific type of plan ) Controlled corporations Nontaxable stock purchase of, Property for stock of a controlled corporation. Turbotax amended return 2011 Related party transactions, Losses on sales or trades of property. Turbotax amended return 2011 Convenience fees, Credit or Debit Card Convenience Fees Conventions Delegates Deduction of unreimbursed expenses, Conventions. Turbotax amended return 2011 Travel expenses, Conventions Travel expenses, Conventions Work-related education, deduction of travel expenses for overseas conventions, Cruises and conventions. Turbotax amended return 2011 Conversion (see specific retirement or IRA plan ) Convertible stocks and bonds, Convertible stocks and bonds. Turbotax amended return 2011 Cooperative housing Dwelling unit used as home, Introduction Mortgage interest statements, Form 1098, Mortgage Interest Statement Real estate taxes, deduction of, Tenant-shareholders in a cooperative housing corporation. Turbotax amended return 2011 Sale or trade of Form 1099-S to report, Form 1099-S transactions. Turbotax amended return 2011 Period of ownership and use, Cooperative apartment. Turbotax amended return 2011 Cooperatives Patronage dividends, Patronage dividends. Turbotax amended return 2011 Copyrights, Capital Assets and Noncapital Assets Infringement damages, Court awards and damages. Turbotax amended return 2011 Royalties, Royalties Corporations, S Corporation Income (see also S corporations) Controlled corporations, Property for stock of a controlled corporation. Turbotax amended return 2011 , Losses on sales or trades of property. Turbotax amended return 2011 Director fees as self-employment income, Corporate director. Turbotax amended return 2011 Reorganizations and nontaxable trade of stock, Corporate reorganizations. Turbotax amended return 2011 Corrections (see Errors) Cosmetic surgery Not deductible as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Cosmetics Not deductible as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Cost basis, Useful Items - You may want to see: IRAs for nondeductible contributions, Cost basis. Turbotax amended return 2011 , Partly taxable. Turbotax amended return 2011 Cost-of-living allowances, Government cost-of-living allowances. Turbotax amended return 2011 Country clubs Charitable contributions to, Contributions to Nonqualified Organizations Dues Charitable deduction not allowed, Table 24-1. Turbotax amended return 2011 Examples of Charitable Contributions—A Quick Check, Membership fees or dues. Turbotax amended return 2011 Entertainment expense deduction not allowed, Club dues and membership fees. Turbotax amended return 2011 Coupon bonds, Coupon bonds. Turbotax amended return 2011 Court awards and damages (see Damages from lawsuits) Cousin, Cousin. Turbotax amended return 2011 Coverdell ESAs Additional tax on, Other taxes. Turbotax amended return 2011 CPAs (see Accountants) Credit cards Annual fees, not deductible, Items You Cannot Deduct Benefits, taxability of insurance, Credit card insurance. Turbotax amended return 2011 Charitable contributions charged to, Credit card. Turbotax amended return 2011 Finance charges, not deductible, Personal Interest Payment of taxes, Reminders Credit for child and dependent care expenses, Credit for child and dependent care expenses. Turbotax amended return 2011 , Credit for child and dependent care expenses. Turbotax amended return 2011 Credit for prior year minimum tax Nonrefundable, Nonrefundable Credit for Prior Year Minimum Tax Credit for the elderly or the disabled, Credit for the elderly or the disabled. Turbotax amended return 2011 , Credit for the elderly or the disabled. Turbotax amended return 2011 Credit or debit cards Payment of taxes, E-file and pay by credit or debit card or by direct transfer from your bank account. Turbotax amended return 2011 Credit reports Costs not included in property basis, Settlement costs. Turbotax amended return 2011 Fees for, not deductible, Items You Cannot Deduct Credit to holders of tax credit bonds, Credit to Holders of Tax Credit Bonds Credits, Credits. Turbotax amended return 2011 , Earned income credit. Turbotax amended return 2011 , Credit for child and dependent care expenses. Turbotax amended return 2011 , Credit for the elderly or the disabled. Turbotax amended return 2011 , Earned income credit. Turbotax amended return 2011 , Credit for child and dependent care expenses. Turbotax amended return 2011 , Credit for the elderly or the disabled. Turbotax amended return 2011 , Earned income credit. Turbotax amended return 2011 Alternative motor vehicle, Alternative Motor Vehicle Credit American opportunity, Special Rules Build America bonds (see Credit to holders of tax credit bonds) Capital gains, undistributed, credit for tax on, Undistributed capital gains of mutual funds and REITs. Turbotax amended return 2011 , Credit for Tax on Undistributed Capital Gain Child and dependent care, Child and Dependent Care Credit (see Child and dependent care credit) Child tax (see Child tax credit) Clean renewable energy bonds (see Credit to holders of tax credit bonds) Earned income, Earned Income Credit (EIC) (see Earned income credit) Elderly or the disabled, Credit for the Elderly or the Disabled Excess withholding, Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Foreign tax, Foreign Tax Credit Health coverage, Health Coverage Tax Credit Lifetime learning (see Lifetime learning credit) Mortgage interest, Mortgage Interest Credit Nonrefundable credits, Nonrefundable Credits Plug-in electric drive motor vehicle, Plug-in Electric Drive Motor Vehicle Credit Prior year minimum tax (AMT), nonrefundable, Nonrefundable Credit for Prior Year Minimum Tax Qualified energy conservation bonds (see Credit to holders of tax credit bonds) Qualified school construction bonds (see Credit to holders of tax credit bonds) Qualified zone academy bonds (see Credit to holders of tax credit bonds) Refundable credits, Refundable Credits Residential energy, Residential Energy Credits Retirement savings contribution, Retirement Savings Contributions Credit (Saver's Credit) Cremation Not deductible as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Criminal prosecutions Travel expenses for federal staff, Exception for federal crime investigations or prosecutions. Turbotax amended return 2011 Cruises Travel expenses when incidental business activities, Trip Primarily for Personal Reasons Work-related education, deduction of expenses, Cruises and conventions. Turbotax amended return 2011 Custodial fees, Investment Fees and Expenses Custody of child, Custodial parent and noncustodial parent. Turbotax amended return 2011 Customers, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. Turbotax amended return 2011 D Daily allowance (see Per diem) Damage to property, Nonbusiness Casualty and Theft Losses (see also Casualty losses) Disasters, Employer's emergency disaster fund. Turbotax amended return 2011 , Disaster relief. Turbotax amended return 2011 (see also Disaster relief) Damages, Damages for Breach of Employment Contract Damages from lawsuits, Court awards and damages. Turbotax amended return 2011 Medical expenses as part of settlement, Damages for Personal Injuries Dating your return, Signatures Daycare centers, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 , Childcare providers. Turbotax amended return 2011 , Care outside your home. Turbotax amended return 2011 (see also Child and dependent care credit) (see also Child care) De minimis benefits, De Minimis (Minimal) Benefits Deadlines (see Due dates) Death (see Decedents) Death benefits Accelerated, Accelerated Death Benefits, Exclusion for terminal illness. Turbotax amended return 2011 Life insurance proceeds (see Life insurance) Public safety officers who died or were killed in line of duty, tax exclusion, Public Safety Officer Killed in the Line of Duty Death of child, Death or birth of child. Turbotax amended return 2011 Death of dependent, Death or birth. Turbotax amended return 2011 Debt instruments (see Bonds or Notes) Debts, Exceptions for special types of refunds. Turbotax amended return 2011 , Recoveries (see also Bad debts) Canceled (see Cancellation of debt) Nonrecourse, Mortgage relief upon sale or other disposition. Turbotax amended return 2011 Paid by another, Debts paid for you. Turbotax amended return 2011 Payoff of debt included in sales transaction, Debt paid off. Turbotax amended return 2011 Public, gifts to reduce, Gift To Reduce Debt Held by the Public Recourse, Mortgage relief upon sale or other disposition. Turbotax amended return 2011 Refund offset against, Refunds. Turbotax amended return 2011 , Offset against debts. Turbotax amended return 2011 Deceased taxpayers (see Decedents) Decedents, Surviving Spouses, Executors, Administrators, and Legal Representatives (see also Executors and administrators) Capital loss of, Decedent's capital loss. Turbotax amended return 2011 Deceased spouse, Surviving Spouses, Executors, Administrators, and Legal Representatives Personal exemption, Death of spouse. Turbotax amended return 2011 Due dates, Filing for a decedent. Turbotax amended return 2011 Filing requirements, Surviving Spouses, Executors, Administrators, and Legal Representatives Funeral expenses, Contributions to Individuals Medical and dental expenses, Decedent Savings bonds, Decedents. Turbotax amended return 2011 Spouse's death, Spouse died during the year. Turbotax amended return 2011 , Spouse died. Turbotax amended return 2011 Standard deduction, Decedent's final return. Turbotax amended return 2011 Transfer of property at death, Other property transactions. Turbotax amended return 2011 Declaration of rights of taxpayers IRS request for information, Reminders Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. Turbotax amended return 2011 Deductions, Special Rules, Personal Exemptions and Dependents, Your Own Exemption, Recoveries, Nonbusiness Bad Debts, How to report bad debts. Turbotax amended return 2011 , Capital Losses , Introduction, Standard Deduction, Points, Treatment by buyer. Turbotax amended return 2011 , Meals and Incidental Expenses, Entertainment Expenses (see also Bad debts) (see also Capital losses) (see also Entertainment expenses) (see also Personal exemption) (see also Points) (see also Recovery of amounts previously deducted) (see also Standard deduction) Alimony, deductible by payer, How To Deduct Alimony Paid Casualty losses, Casualty and Theft Losses of Income-Producing Property (see Capital losses) Changing claim after filing, need to amend, Amended Returns and Claims for Refund Charitable contributions, Contributions, How To Report (see also Charitable contributions) Dental expenses (see Medical and dental expenses) Depreciation, Depreciation and section 179 deduction. Turbotax amended return 2011 Educator expenses, Educator Expenses Estate, Excess Deductions of an Estate Fee-basis government officials, Special Rules Impairment-related work expenses, Impairment-Related Work Expenses, Impairment-related work expenses of disabled employees. Turbotax amended return 2011 Interest (see Interest payments) Investment expenses, Investment expenses. Turbotax amended return 2011 IRA contributions (see Individual retirement arrangements (IRAs)) Itemizing (see Itemized deductions) Long-term care insurance contracts, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Medical expenses (see Medical and dental expenses) Mortgage interest, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Turbotax amended return 2011 (see Mortgages) Not itemizing, use of Form 1040A, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 Pass-through entities, Indirect Deductions of Pass-Through Entities Penalties, no deduction permitted, Penalties. Turbotax amended return 2011 Performing artists' expenses, Expenses of certain performing artists. Turbotax amended return 2011 Prepaid insurance premiums, Prepaid insurance premiums. Turbotax amended return 2011 Prescription medicines, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Rental expenses, When to deduct. Turbotax amended return 2011 Repayments, Repayments Section 179 deductions Adjustment to basis for, Depreciation and section 179 deduction. Turbotax amended return 2011 Car expenses, Depreciation and section 179 deductions. Turbotax amended return 2011 Self-employed persons Health insurance premiums, Health Insurance Costs for Self-Employed Persons Social security and railroad retirement benefits, Deductions Related to Your Benefits Standard deduction, Standard Deduction, Married persons who filed separate returns. Turbotax amended return 2011 Stop-smoking programs, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Student loan interest deduction (see Student loans) Theft loss, Casualty and Theft Losses of Income-Producing Property Transportation expenses (see Travel and transportation expenses) Union dues (see Labor unions) Work-related education, What Expenses Can Be Deducted Deeds Preparation costs for, Amounts charged for services. Turbotax amended return 2011 Recording fees, basis to include, Real estate taxes. Turbotax amended return 2011 Deferred annuity contracts (see Annuities) Deferred compensation Limit, Elective deferrals. Turbotax amended return 2011 Nonqualified plans, Nonqualified deferred compensation plans. Turbotax amended return 2011 Deferred compensation plans (see Retirement plans) Delinquent taxes Real estate transactions, tax allocation, Real estate taxes for prior years. Turbotax amended return 2011 Delivery services, Private delivery services. Turbotax amended return 2011 Business-related travel expense, Table 26-1. Turbotax amended return 2011 Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Turbotax amended return 2011 Demutualization of life insurance companies, Demutualization of life insurance companies. Turbotax amended return 2011 Dental expenses (see Medical and dental expenses) Dentures Deductibility as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Dependent care Benefits, Dependent care benefits. Turbotax amended return 2011 , Dependent Care Benefits Center, Dependent care center. Turbotax amended return 2011 Credit for, Child and Dependent Care Credit Dependent taxpayer test, Dependent Taxpayer Test Dependents, Who Should File, You can use Form 1040A if all of the following apply. Turbotax amended return 2011 , Exception for adopted child. Turbotax amended return 2011 , Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). Turbotax amended return 2011 (see also Child tax credit) Birth of, Death or birth. Turbotax amended return 2011 Born and died within year, Exception. Turbotax amended return 2011 , Born and died in 2013. Turbotax amended return 2011 Death of, Death or birth. Turbotax amended return 2011 Deceased dependent's medical and dental expenses, What if you pay medical expenses of a deceased spouse or dependent? Disabled dependent care expenses, deduction for, Disabled Dependent Care Expenses Exemption for, Exemptions for Dependents Filing requirements, Child's earnings. Turbotax amended return 2011 Earned income, unearned income, and gross income levels (Table 1-2), Do I Have To File a Return? Married, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Medical and dental expenses, Dependent Qualifying child, Qualifying Child, Qualifying Child Qualifying relative, Qualifying Relative, Qualifying Child Social security number, Dependent's SSN. Turbotax amended return 2011 Adoption taxpayer identification number, Adoption taxpayer identification number (ATIN). Turbotax amended return 2011 , Taxpayer identification numbers for aliens. Turbotax amended return 2011 Alien dependents, Born and died in 2013. Turbotax amended return 2011 Standard deduction for, Standard Deduction for Dependents Travel expenses for, Travel expenses for another individual. Turbotax amended return 2011 Tuition deduction for, Who Can Claim a Dependent's Expenses Dependents not allowed to claim dependents, Dependent Taxpayer Test Depletion allowance, Depletion. Turbotax amended return 2011 Deposits, Fees and deposits. Turbotax amended return 2011 Loss on, Loss on Deposits Losses on, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits Reporting of, Loss on deposits. Turbotax amended return 2011 Depreciation Adjustment to basis for, Depreciation and section 179 deduction. Turbotax amended return 2011 Cars, Depreciation and section 179 deductions. Turbotax amended return 2011 Change of use of property, Basis for depreciation. Turbotax amended return 2011 Computer, Depreciation on Computers Correcting amount claimed, Claiming the correct amount of depreciation. Turbotax amended return 2011 Form 4562 Rental property depreciation, Depreciation Home computer, Depreciation on Home Computer Property used in trade or business, as noncapital assets, Capital Assets and Noncapital Assets Real property Gain from disposition of property, Depreciation after May 6, 1997. Turbotax amended return 2011 Land, no depreciation of, Land. Turbotax amended return 2011 Rental property, Depreciation. Turbotax amended return 2011 , Depreciation Designated Roth Account Defined. Turbotax amended return 2011 , Designated Roth accounts. Turbotax amended return 2011 Designated Roth account, Designated Roth accounts. Turbotax amended return 2011 , Designated Roth accounts. Turbotax amended return 2011 Destroyed records, Destroyed records. Turbotax amended return 2011 Diaper service, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Differential wage payments, Differential wage payments. Turbotax amended return 2011 Differential wages Wages for reservists Military reserves, Differential wage payments. Turbotax amended return 2011 Direct deposit of refunds, Refunds Directors' fees, Corporate director. Turbotax amended return 2011 Disabilities, persons with, Qualifying Person Test, Physically or mentally not able to care for oneself. Turbotax amended return 2011 , Credit for the Elderly or the Disabled (see also Elderly or the disabled) Accrued leave payment, Accrued leave payment. Turbotax amended return 2011 Armed forces, Disability. Turbotax amended return 2011 Blind (see Blind persons) Cafeteria plans, Cafeteria plans. Turbotax amended return 2011 Credit for (see Elderly or disabled, credit for) Dependent who is disabled, deduction for care expenses, Disabled Dependent Care Expenses Guide dogs, deductible as medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Impairment-related work expenses of, Impairment-Related Work Expenses, Impairment-related work expenses of disabled employees. Turbotax amended return 2011 Work-related education, Impairment-Related Work Expenses Insurance costs, Cost paid by you. Turbotax amended return 2011 Military and government pensions, Military and Government Disability Pensions Public assistance benefits, Persons with disabilities. Turbotax amended return 2011 Reporting of disability pension income, Disability Pensions Retirement, pensions, and profit-sharing plans, Sickness and Injury Benefits, Retirement and profit-sharing plans. Turbotax amended return 2011 Signing of return by court-appointed representative, Court-appointed, conservator, or other fiduciary. Turbotax amended return 2011 Social security and railroad retirement benefits, deductions for, Disability payments. Turbotax amended return 2011 Special school or home for, deductibility of medical expense, Table 21-1. Turbotax amended return 2011 Medical and Dental Expenses Checklist. Turbotax amended return 2011 See Publication 502 for more information about these and other expenses. Turbotax amended return 2011 Terrorist attack as cause of injury, disability payments excluded from taxation, Disability pensions. Turbotax amended return 2011 Workers' compensation, Workers' Compensation Disability Income, Disability income. Turbotax amended return 2011 Disability benefits Earned income credit, Form 4029. Turbotax amended return 2011 Disability insurance payments Earned income credit, Disability insurance payments. Turbotax amended return 2011 Disability, permanent and total disability, Permanent and total disability. Turbotax amended return 2011 Disabled Child, Permanently and totally disabled. Turbotax amended return 2011 Dependent, Disabled dependent working at sheltered workshop. Turbotax amended return 2011 Disaster Assistance Act of 1988 Withholding, Federal Payments Disaster relief, Terrorist attack or military action. Turbotax amended return 2011 , Disaster relief payments. Turbotax amended return 2011 , Disaster relief. Turbotax amended return 2011 (see also Terrorist attacks) Cash gifts to victims, Cash gifts. Turbotax amended return 2011 Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. Turbotax amended return 2011 Unemployment assistance, Types of unemployment compensation. Turbotax amended return 2011 Employer's emergency disaster fund, Employer's emergency disaster fund. Turbotax amended return 2011 Government-ordered demolition or relocation of home that is unsafe due to, Deductible losses. Turbotax amended return 2011 Grants or payments, Disaster relief grants. Turbotax amended return 2011 Replacement of lost or destroyed property, Disaster relief. Turbotax amended return 2011 Discharge of qualified principal residence indebtedness, Discharges of qualified principal residence indebtedness. Turbotax amended return 2011 , Adjusted Basis Disclosure statement, Disclosure statement. Turbotax amended return 2011 Discount, bonds and notes issued at, Original Issue Discount (OID) Discounted debt instruments Capital gain or loss, Discounted Debt Instruments Discounts Employee discounts, effect on basis, Bargain purchases. Turbotax amended return 2011 Distributions, Eligible rollover distributions. Turbotax amended return 2011 (see also Rollovers) Early (see Early withdrawal from deferred interest account) Liquidating distributions, Liquidating Distributions Lump sum (see Lump-sum distributions) Nondividend distributions, Nondividend Distributions Qualified charitable, Qualified charitable distributions (QCD). Turbotax amended return 2011 Qualified reservist, Qualified reservist distributions. Turbotax amended return 2011 Required minimum distributions, Required distributions. Turbotax amended return 2011 , Required distributions. Turbotax amended return 2011 , When Must You Withdraw IRA Assets? (Required Minimum Distributions) (see also Individual retirement arrangements (IRAs)) (see also Pensions) Return of capital, Nondividend Distributions District of Columbia First-time homebuyer credit, Decreases to basis. Turbotax amended return 2011 Dividends, Dividends and Other Distributions, Form 1099-DIV. Turbotax amended return 2011 , More information. Turbotax amended return 2011 (see also Form 1099-DIV) Alaska Permanent Fund (see Alaska Permanent Fund dividends) As stock dividends and stock rights, Distributions of Stock and Stock Rights Backup withholding, Backup withholding. Turbotax amended return 2011 Beneficiary of estate or trust receiving, Beneficiary of an estate or trust. Turbotax amended return 2011 Buying more stock with, Dividends Used to Buy More Stock Defined, Introduction Exempt-interest dividends, Other Distributions Expenses related to, deduction of, Expenses related to dividend income. Turbotax amended return 2011 Fees to collect, Fees to Collect Interest and Dividends Foreign income, Reminder Holding period, determination of, Stock dividends. Turbotax amended return 2011 Insurance dividends, Dividends on insurance policies. Turbotax amended return 2011 Money market funds, Money Market Funds Nominees receiving on behalf of another, Nominees. Turbotax amended return 2011 Nondividend distributions, Nondividend Distributions Ordinary dividends, Ordinary Dividends Patronage dividends, Patronage dividends. Turbotax amended return 2011 Qualified, Qualified Dividends, Qualified dividends. Turbotax amended return 2011 Real estate investment trusts (REITs) paying, Capital Gain Distributions Redemption treated as, Dividend versus sale or trade. Turbotax amended return 2011 Reinvestment plans, Dividends Used to Buy More Stock Reporting of, How To Report Dividend Income As interest, Introduction Scrip dividends, Scrip dividends. Turbotax amended return 2011 Sold stock, Dividends on stock sold. Turbotax amended return 2011 Stockholder debts when canceled as, Stockholder debt. Turbotax amended return 2011 Veterans' insurance, Dividends on veterans' insurance. Turbotax amended return 2011 Divorced parents, Children of divorced or separated parents (or parents who live apart). Turbotax amended return 2011 , Applying this special rule to divorced or separated parents (or parents who live apart). Turbotax amended return 2011 Divorced taxpayers, Alimony. Turbotax amended return 2011 (see also Alimony) Child and dependent care credit, Child of divorced or separated parents or parents living apart. Turbotax amended return 2011 Child custody, Custodial parent and noncustodial parent. Turbotax amended return 2011 Definition of divorce instrument for purposes of alimony, Divorce or separation instrument. Turbotax amended return 2011 Estimated tax payments, Divorced Taxpayers Filing status, Divorced persons. Turbotax amended return 2011 , Divorced persons. Turbotax amended return 2011 IRAs, Kay Bailey Hutchison Spousal IRA. Turbotax amended return 2011 , Transfers Incident to Divorce Medical and dental expenses of children of, Child of divorced or separated parents. Turbotax amended return 2011 Mortgage interest, payment as alimony, Divorced or separated individuals. Turbotax amended return 2011 Personal exemption, Divorced or separated spouse. Turbotax amended return 2011 Real estate taxes, allocation of, Divorced individuals. Turbotax amended return 2011 Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses Use of home after divorce, Use of home after divorce. Turbotax amended return 2011 Doctors' bills (see Medical and dental expenses) Documentary evidence Recordkeeping requirements, Documentary evidence. Turbotax amended return 2011 Domestic help Withholding, Household workers. Turbotax amended return 2011 Domestic help, no exemption for, Housekeepers, maids, or servants. Turbotax amended return 2011

Topic 506 - Charitable Contributions

Charitable contributions are deductible only if you itemize deductions on Form 1040, Schedule A (PDF).

To be deductible, charitable contributions must be made to qualified organizations. Payments to individuals are never deductible. See Publication 526, Charitable Contributions. To determine if the organization that you have contributed to qualifies as a charitable organization for income tax deductions, review Exempt Organizations Select Check on the IRS.gov website.

If your contribution entitles you to merchandise, goods, or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received.

For a contribution of cash, check, or other monetary gift (regardless of amount), you must maintain as a record of the contribution a bank record or a written communication from the qualified organization containing the name of the organization, the date of the contribution, and the amount of the contribution. In addition to deducting your cash contributions, you generally can deduct the fair market value of any other property you donate to qualified organizations. See Publication 561, Determining the Value of Donated Property. For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property contributed. The acknowledgment must say whether the organization provided any goods or services in exchange for the gift and, if so, must provide a description and a good faith estimate of the value of those goods or services. One document from the qualified organization may satisfy both the written communication requirement for monetary gifts and the contemporaneous written acknowledgment requirement for all contributions of $250 or more.

You must fill out Form 8283 (PDF), and attach it to your return, if your deduction for a noncash contribution is more than $500. If you claim a deduction for a contribution of noncash property worth $5,000 or less, you must fill out Form 8283, Section A. If you claim a deduction for a contribution of noncash property worth more than $5,000, you will need a qualified appraisal of the noncash property and must fill out Form 8283, Section B. If you claim a deduction for a contribution of noncash property worth more than $500,000, you also will need to attach the qualified appraisal to your return.

Special rules apply to donations of certain types of property such as automobiles, inventory and investments that have appreciated in value. For more information, refer to Publication 526, Charitable Contributions. For information on determining the value of your noncash contributions, refer to Publication 561, Determining the Value of Donated Property.

Page Last Reviewed or Updated: December 12, 2013

The Turbotax Amended Return 2011

Turbotax amended return 2011 Publication 1212 - Main Content Table of Contents Definitions Debt Instruments on the OID List Debt Instruments Not on the OID List Information for Brokers and Other MiddlemenShort-Term Obligations Redeemed at Maturity Long-Term Debt Instruments Certificates of Deposit Bearer Bonds and Coupons Backup Withholding Information for Owners of OID Debt InstrumentsExceptions. Turbotax amended return 2011 Adjustment for premium. Turbotax amended return 2011 Adjustment for acquisition premium. Turbotax amended return 2011 Adjustment for market discount. Turbotax amended return 2011 Form 1099-OID How To Report OID Figuring OID on Long-Term Debt Instruments Figuring OID on Stripped Bonds and Coupons How To Get Tax HelpLow Income Taxpayer Clinics Definitions The following terms are used throughout this publication. Turbotax amended return 2011 “Original issue discount” is defined first. Turbotax amended return 2011 The other terms are listed alphabetically. Turbotax amended return 2011 Original issue discount (OID). Turbotax amended return 2011   OID is a form of interest. Turbotax amended return 2011 It is the excess of a debt instrument's stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). Turbotax amended return 2011 Zero coupon bonds and debt instruments that pay no stated interest until maturity are examples of debt instruments that have OID. Turbotax amended return 2011 Accrual period. Turbotax amended return 2011   An accrual period is an interval of time used to measure OID. Turbotax amended return 2011 The length of an accrual period can be 6 months, a year, or some other period, depending on when the debt instrument was issued. Turbotax amended return 2011 Acquisition premium. Turbotax amended return 2011   Acquisition premium is the excess of a debt instrument's adjusted basis immediately after purchase, including purchase at original issue, over the debt instrument's adjusted issue price at that time. Turbotax amended return 2011 A debt instrument does not have acquisition premium, however, if the debt instrument was purchased at a premium. Turbotax amended return 2011 See Premium, later. Turbotax amended return 2011 Adjusted issue price. Turbotax amended return 2011   The adjusted issue price of a debt instrument at the beginning of an accrual period is used to figure the OID allocable to that period. Turbotax amended return 2011 In general, the adjusted issue price at the beginning of the debt instrument's first accrual period is its issue price. Turbotax amended return 2011 The adjusted issue price at the beginning of any subsequent accrual period is the sum of the issue price and all the OID includible in income before that accrual period minus any payment previously made on the debt instrument, other than a payment of qualified stated interest. Turbotax amended return 2011 Debt instrument. Turbotax amended return 2011   The term “debt instrument” means any instrument or contractual arrangement that constitutes indebtedness under general principles of federal income tax law (including, for example, a bond, debenture, note, certificate, or other evidence of indebtedness). Turbotax amended return 2011 It generally does not include an annuity contract. Turbotax amended return 2011 Issue price. Turbotax amended return 2011   For debt instruments listed in Section I-A and Section I-B, the issue price generally is the initial offering price to the public (excluding bond houses and brokers) at which a substantial amount of these instruments was sold. Turbotax amended return 2011 Market discount. Turbotax amended return 2011   Market discount arises when a debt instrument purchased in the secondary market has decreased in value since its issue date, generally because of an increase in interest rates. Turbotax amended return 2011 An OID debt instrument has market discount if your adjusted basis in the debt instrument immediately after you acquired it (usually its purchase price) was less than the debt instrument's issue price plus the total OID that accrued before you acquired it. Turbotax amended return 2011 The market discount is the difference between the issue price plus accrued OID and your adjusted basis. Turbotax amended return 2011 Premium. Turbotax amended return 2011   A debt instrument is purchased at a premium if its adjusted basis immediately after purchase is greater than the total of all amounts payable on the debt instrument after the purchase date, other than qualified stated interest. Turbotax amended return 2011 The premium is the excess of the adjusted basis over the payable amounts. Turbotax amended return 2011 See Publication 550 for information on the tax treatment of bond premium. Turbotax amended return 2011 Qualified stated interest. Turbotax amended return 2011   In general, qualified stated interest is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually over the term of the debt instrument at a single fixed rate. Turbotax amended return 2011 Stated redemption price at maturity. Turbotax amended return 2011   A debt instrument's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on the debt instrument other than qualified stated interest. Turbotax amended return 2011 Yield to maturity (YTM). Turbotax amended return 2011   In general, the YTM is the discount rate that, when used in figuring the present value of all principal and interest payments, produces an amount equal to the issue price of the debt instrument. Turbotax amended return 2011 The YTM is generally shown on the face of the debt instrument or in the literature you receive from your broker. Turbotax amended return 2011 If you do not have this information, consult your broker, tax advisor, or the issuer. Turbotax amended return 2011 Debt Instruments on the OID List The OID list on the IRS website can be used by brokers and other middlemen to prepare information returns. Turbotax amended return 2011 If you own a listed debt instrument, you generally should not rely on the information in the OID list to determine (or compare) the OID to be reported on your tax return. Turbotax amended return 2011 The OID amounts listed are figured without reference to the price or date at which you acquired the debt instrument. Turbotax amended return 2011 For information about determining the OID to be reported on your tax return, see the instructions for figuring OID under Information for Owners of OID Debt Instruments, later. Turbotax amended return 2011 The following discussions explain what information is contained in each section of the list. Turbotax amended return 2011 Section I. Turbotax amended return 2011   This section contains publicly offered, long-term debt instruments. Turbotax amended return 2011 Section I-A: Corporate Debt Instruments Issued Before 1985. Turbotax amended return 2011 Section I-B: Corporate Debt Instruments Issued After 1984. Turbotax amended return 2011 Section I-C: Inflation-Indexed Debt Instruments. Turbotax amended return 2011 For each publicly offered debt instrument in Section I, the list contains the following information. Turbotax amended return 2011 The name of the issuer. Turbotax amended return 2011 The Committee on Uniform Security Identification Procedures (CUSIP) number. Turbotax amended return 2011 The issue date. Turbotax amended return 2011 The maturity date. Turbotax amended return 2011 The issue price expressed as a percent of principal or of stated redemption price at maturity. Turbotax amended return 2011 The annual stated or coupon interest rate. Turbotax amended return 2011 (This rate is shown as 0. Turbotax amended return 2011 00 if no annual interest payments are provided. Turbotax amended return 2011 ) The yield to maturity will be added to Section I-B for bonds issued after December 31, 2006. Turbotax amended return 2011 The total OID accrued up to January 1 of a calendar year. Turbotax amended return 2011 (This information is not available for every instrument. Turbotax amended return 2011 ) For long-term debt instruments issued after July 1, 1982, the daily OID for the accrual periods falling in a calendar year and a subsequent year. Turbotax amended return 2011 The total OID per $1,000 of principal or maturity value for a calendar year and a subsequent year. Turbotax amended return 2011 Section II. Turbotax amended return 2011   This section contains stripped coupons and principal components of U. Turbotax amended return 2011 S. Turbotax amended return 2011 Treasury and Government-Sponsored Enterprise debt instruments. Turbotax amended return 2011 These stripped components are available through the Department of the Treasury's Separate Trading of Registered Interest and Principal of Securities (STRIPS) program and government-sponsored enterprises such as the Resolution Funding Corporation. Turbotax amended return 2011 This section also includes debt instruments backed by U. Turbotax amended return 2011 S. Turbotax amended return 2011 Treasury securities that represent ownership interests in those securities. Turbotax amended return 2011   The obligations listed in Section II are arranged by maturity date. Turbotax amended return 2011 The amounts listed are the total OID for a calendar year per $1,000 of redemption price. Turbotax amended return 2011 Section III. Turbotax amended return 2011   This section contains short-term discount obligations. Turbotax amended return 2011 Section III-A: Short-Term U. Turbotax amended return 2011 S. Turbotax amended return 2011 Treasury Bills. Turbotax amended return 2011 Section III-B: Federal Home Loan Banks. Turbotax amended return 2011 Section III-C: Federal National Mortgage Association. Turbotax amended return 2011 Section III-D: Federal Farm Credit Banks. Turbotax amended return 2011 Section III-E: Federal Home Loan Mortgage Corporation. Turbotax amended return 2011 Section III-F: Federal Agricultural Mortgage Corporation. Turbotax amended return 2011    Information that supplements Section III-A is available on the Internet at http://www. Turbotax amended return 2011 treasurydirect. Turbotax amended return 2011 gov/tdhome. Turbotax amended return 2011 htm. Turbotax amended return 2011   The short-term obligations listed in this section are arranged by maturity date. Turbotax amended return 2011 For each obligation, the list contains the CUSIP number, maturity date, issue date, issue price (expressed as a percent of principal), and discount to be reported as interest for a calendar year per $1,000 of redemption price. Turbotax amended return 2011 Brokers and other middlemen should rely on the issue price information in Section III only if they are unable to determine the price actually paid by the owner. Turbotax amended return 2011 Debt Instruments Not on the OID List The list of debt instruments discussed earlier does not contain the following items. Turbotax amended return 2011 U. Turbotax amended return 2011 S. Turbotax amended return 2011 savings bonds. Turbotax amended return 2011 Certificates of deposit and other face-amount certificates issued at a discount, including syndicated certificates of deposit. Turbotax amended return 2011 Obligations issued by tax-exempt organizations. Turbotax amended return 2011 OID debt instruments that matured or were entirely called by the issuer before the tables were posted on the IRS website. Turbotax amended return 2011 Mortgage-backed securities and mortgage participation certificates. Turbotax amended return 2011 Long-term OID debt instruments issued before May 28, 1969. Turbotax amended return 2011 Short-term obligations, other than the obligations listed in Section III. Turbotax amended return 2011 Debt instruments issued at a discount by states or their political subdivisions. Turbotax amended return 2011 REMIC regular interests and CDOs. Turbotax amended return 2011 Commercial paper and banker's acceptances issued at a discount. Turbotax amended return 2011 Obligations issued at a discount by individuals. Turbotax amended return 2011 Foreign obligations not traded in the United States and obligations not issued in the United States. Turbotax amended return 2011 Information for Brokers and Other Middlemen The following discussions contain specific instructions for brokers and middlemen who hold or redeem a debt instrument for the owner. Turbotax amended return 2011 In general, you must file a Form 1099 for the debt instrument if the interest or OID to be included in the owner's income for a calendar year totals $10 or more. Turbotax amended return 2011 You also must file a Form 1099 if you were required to deduct and withhold tax, even if the interest or OID is less than $10. Turbotax amended return 2011 See Backup Withholding, later. Turbotax amended return 2011 If you must file a Form 1099, furnish a copy to the owner of the debt instrument by January 31 in the year it is due. Turbotax amended return 2011 File all your Forms 1099 with the IRS, accompanied by Form 1096, by February 28 in the year it is due (March 31 if you file electronically). Turbotax amended return 2011 Electronic payee statements. Turbotax amended return 2011   You can issue Form 1099-OID electronically with the consent of the recipient. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information, including penalties for failure to file (or furnish) required information returns or statements, see the General Instructions for Certain Information Returns (Forms 1098, 1099, 3921, 3922, 5498, and W-2G) for the appropriate calendar year. Turbotax amended return 2011 Short-Term Obligations Redeemed at Maturity If you redeem a short-term discount obligation for the owner at maturity, you must report the discount as interest on Form 1099-INT. Turbotax amended return 2011 To figure the discount, use the purchase price shown on the owner's copy of the purchase confirmation receipt or similar record, or the price shown in your transaction records. Turbotax amended return 2011 If you sell the obligation for the owner before maturity, you must file Form 1099-B to reflect the gross proceeds to the seller. Turbotax amended return 2011 Do not report the accrued discount to the date of sale on either Form 1099-INT or Form 1099-OID. Turbotax amended return 2011 If the owner's purchase price cannot be determined, figure the discount as if the owner had purchased the obligation at its original issue price. Turbotax amended return 2011 A special rule is used to determine the original issue price for information reporting on U. Turbotax amended return 2011 S. Turbotax amended return 2011 Treasury bills (T-bills) listed in Section III-A. Turbotax amended return 2011 Under this rule, you treat as the original issue price of the T-bill the noncompetitive (weighted average of accepted auction bids) discount price for the longest-maturity T-bill maturing on the same date as the T-bill being redeemed. Turbotax amended return 2011 This noncompetitive discount price is the issue price (expressed as a percent of principal) shown in Section III-A. Turbotax amended return 2011 A similar rule is used to figure the discount on short-term discount obligations issued by the organizations listed in Section III-B through Section III-F. Turbotax amended return 2011 Example 1. Turbotax amended return 2011 There are 13-week and 26-week T-bills maturing on the same date as the T-bill being redeemed. Turbotax amended return 2011 The price actually paid by the owner cannot be established by owner or middleman records. Turbotax amended return 2011 You treat as the issue price of the T-bill the noncompetitive discount price (expressed as a percent of principal) shown in Section III-A for a 26-week bill maturing on the same date as the T-bill redeemed. Turbotax amended return 2011 The interest you report on Form 1099-INT is the OID (per $1,000 of principal) shown in Section III-A for that obligation. Turbotax amended return 2011 Long-Term Debt Instruments If you hold a long-term OID debt instrument as a nominee for the true owner, you generally must file Form 1099-OID. Turbotax amended return 2011 For this purpose, you can rely on Section I of the OID list to determine the following information. Turbotax amended return 2011 Whether a debt instrument has OID. Turbotax amended return 2011 The OID to be reported on the Form 1099-OID. Turbotax amended return 2011 In general, you must report OID on publicly offered, long-term debt instruments listed in Section I. Turbotax amended return 2011 You also can report OID on other long-term debt instruments. Turbotax amended return 2011 Form 1099-OID. Turbotax amended return 2011   On Form 1099-OID for a calendar year show the following information. Turbotax amended return 2011 Box 1. Turbotax amended return 2011 The OID for the actual dates the owner held the debt instruments during a calendar year. Turbotax amended return 2011 To determine this amount, see Figuring OID, next. Turbotax amended return 2011 Box 2. Turbotax amended return 2011 The qualified stated interest paid or credited during the calendar year. Turbotax amended return 2011 Interest reported here is not reported on Form 1099-INT. Turbotax amended return 2011 The qualified stated interest on Treasury inflation-protected securities may be reported on Form 1099-INT in box 3 instead. Turbotax amended return 2011 Box 3. Turbotax amended return 2011 Any interest or principal forfeited because of an early withdrawal that the owner can deduct from gross income. Turbotax amended return 2011 Do not reduce the amounts in boxes 1 and 2 by the forfeiture. Turbotax amended return 2011 Box 4. Turbotax amended return 2011 Any backup withholding for this debt instrument. Turbotax amended return 2011 Box 7. Turbotax amended return 2011 The CUSIP number, if any. Turbotax amended return 2011 If there is no CUSIP number, give a description of the debt instrument, including the abbreviation for the stock exchange, the abbreviation used by the stock exchange for the issuer, the coupon rate, and the year of maturity (for example, NYSE XYZ 12. Turbotax amended return 2011 50 2006). Turbotax amended return 2011 If the issuer of the debt instrument is other than the payer, show the name of the issuer in this box. Turbotax amended return 2011 Box 8. Turbotax amended return 2011 The OID on a U. Turbotax amended return 2011 S. Turbotax amended return 2011 Treasury obligation for the part of the year the owner held the debt instrument. Turbotax amended return 2011 Box 9. Turbotax amended return 2011 Investment expenses passed on to holders of a single-class REMIC. Turbotax amended return 2011 Boxes 10-12. Turbotax amended return 2011 Use to report any state income tax withheld for this debt instrument. Turbotax amended return 2011 Figuring OID. Turbotax amended return 2011   You can determine the OID on a long-term debt instrument by using either of the following. Turbotax amended return 2011 Section I of the OID list. Turbotax amended return 2011 The income tax regulations. Turbotax amended return 2011 Using Section I. Turbotax amended return 2011   If the owner held the debt instrument for the entire calendar year, report the OID shown in Section I for the calendar year. Turbotax amended return 2011 Because OID is listed for each $1,000 of stated redemption price at maturity, you must adjust the listed amount to reflect the debt instrument's actual stated redemption price at maturity. Turbotax amended return 2011 For example, if the debt instrument's stated redemption price at maturity is $500, report one-half the listed OID. Turbotax amended return 2011   If the owner held the debt instrument for less than the entire calendar year, figure the OID to report as follows. Turbotax amended return 2011 Look up the daily OID for the first accrual period in the calendar year during which the owner held the debt instrument. Turbotax amended return 2011 Multiply the daily OID by the number of days the owner held the debt instrument during that accrual period. Turbotax amended return 2011 Repeat steps (1) and (2) for any remaining accrual periods for the year during which the owner held the debt instrument. Turbotax amended return 2011 Add the results in steps (2) and (3) to determine the owner's OID per $1,000 of stated redemption price at maturity. Turbotax amended return 2011 If necessary, adjust the OID in (4) to reflect the debt instrument's stated redemption price at maturity. Turbotax amended return 2011 Report the result on Form 1099-OID in box 1. Turbotax amended return 2011 Using the income tax regulations. Turbotax amended return 2011   Instead of using Section I to figure OID, you can use the regulations under sections 1272 through 1275 of the Internal Revenue Code. Turbotax amended return 2011 For example, under the regulations, you can use monthly accrual periods in figuring OID for a debt instrument issued after April 3, 1994, that provides for monthly payments. Turbotax amended return 2011 (If you use Section I-B, the OID is figured using 6-month accrual periods. Turbotax amended return 2011 )   For a general explanation of the rules for figuring OID under the regulations, see Figuring OID on Long-Term Debt Instruments under Information for Owners of OID Debt Instruments, later. Turbotax amended return 2011 Certificates of Deposit If you hold a bank certificate of deposit (CD) as a nominee, you must determine whether the CD has OID and any OID includible in the income of the owner. Turbotax amended return 2011 You must file an information return showing the reportable interest and OID, if any, on the CD. Turbotax amended return 2011 These rules apply whether or not you sold the CD to the owner. Turbotax amended return 2011 Report OID on a CD in the same way as OID on other debt instruments. Turbotax amended return 2011 See Short-Term Obligations Redeemed at Maturity and Long-Term Debt Instruments, earlier. Turbotax amended return 2011 Bearer Bonds and Coupons If a coupon from a bearer bond is presented to you for collection before the bond matures, you generally must report the interest on Form 1099-INT. Turbotax amended return 2011 However, do not report the interest if either of the following apply. Turbotax amended return 2011 You hold the bond as a nominee for the true owner. Turbotax amended return 2011 The payee is a foreign person. Turbotax amended return 2011 See Payments to foreign person under Backup Withholding, later. Turbotax amended return 2011 Because you cannot assume the presenter of the coupon also owns the bond, you should not report OID on the bond on Form 1099-OID. Turbotax amended return 2011 The coupon may have been “stripped” (separated) from the bond and separately purchased. Turbotax amended return 2011 However, if a long-term bearer bond on the OID list is presented to you for redemption upon call or maturity, you should prepare a Form 1099-OID showing the OID for that calendar year, as well as any coupon interest payments collected at the time of redemption. Turbotax amended return 2011 Backup Withholding If you report OID on Form 1099-OID or interest on Form 1099-INT for a calendar year, you may be required to apply backup withholding to the reportable payment at a rate of 28%. Turbotax amended return 2011 The backup withholding is deducted at the time a cash payment is made. Turbotax amended return 2011 See Pub. Turbotax amended return 2011 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), for more information. Turbotax amended return 2011 Backup withholding generally applies in the following situations. Turbotax amended return 2011 The payee does not give you a taxpayer identification number (TIN). Turbotax amended return 2011 The IRS notifies you that the payee gave an incorrect TIN. Turbotax amended return 2011 The IRS notifies you that the payee is subject to backup withholding due to payee underreporting. Turbotax amended return 2011 For debt instruments acquired after 1983: The payee does not certify, under penalties of perjury, that he or she is not subject to backup withholding under (3), or The payee does not certify, under penalties of perjury, that the TIN given is correct. Turbotax amended return 2011 However, for short-term discount obligations (other than government obligations), bearer bonds and coupons, and U. Turbotax amended return 2011 S. Turbotax amended return 2011 savings bonds, backup withholding applies only if the payee does not give you a TIN or gives you an obviously incorrect number for a TIN. Turbotax amended return 2011 Short-term obligations. Turbotax amended return 2011   Backup withholding applies to OID on a short-term obligation only when the OID is paid at maturity. Turbotax amended return 2011 However, backup withholding applies to any interest payable before maturity when the interest is paid or credited. Turbotax amended return 2011   If the owner of a short-term obligation at maturity is not the original owner and can establish the purchase price of the obligation, the amount subject to backup withholding must be determined by treating the purchase price as the issue price. Turbotax amended return 2011 However, you can choose to disregard that price if it would require significant manual intervention in the computer or recordkeeping system used for the obligation. Turbotax amended return 2011 If the purchase price of a listed obligation is not established or is disregarded, you must use the issue price shown in Section III. Turbotax amended return 2011 Long-term obligations. Turbotax amended return 2011   If no cash payments are made on a long-term obligation before maturity, backup withholding applies only at maturity. Turbotax amended return 2011 The amount subject to backup withholding is the OID includible in the owner's gross income for the calendar year when the obligation matures. Turbotax amended return 2011 The amount to be withheld is limited to the cash paid. Turbotax amended return 2011 Registered long-term obligations with cash payments. Turbotax amended return 2011   If a registered long-term obligation has cash payments before maturity, backup withholding applies when a cash payment is made. Turbotax amended return 2011 The amount subject to backup withholding is the total of the qualified stated interest (defined earlier under Definitions) and OID includible in the owner's gross income for the calendar year when the payment is made. Turbotax amended return 2011 If more than one cash payment is made during the year, the OID subject to withholding for the year must be allocated among the expected cash payments in the ratio that each bears to the total of the expected cash payments. Turbotax amended return 2011 For any payment, the required withholding is limited to the cash paid. Turbotax amended return 2011 Payee not the original owner. Turbotax amended return 2011   If the payee is not the original owner of the obligation, the OID subject to backup withholding is the OID includible in the gross income of all owners during the calendar year (without regard to any amount paid by the new owner at the time of transfer). Turbotax amended return 2011 The amount subject to backup withholding at maturity of a listed obligation must be determined using the issue price shown in Section I. Turbotax amended return 2011 Bearer long-term obligations with cash payments. Turbotax amended return 2011   If a bearer long-term obligation has cash payments before maturity, backup withholding applies when the cash payments are made. Turbotax amended return 2011 For payments before maturity, the amount subject to withholding is the qualified stated interest (defined earlier under Definitions) includible in the owner's gross income for the calendar year. Turbotax amended return 2011 For a payment at maturity, the amount subject to withholding is only the total of any qualified stated interest paid at maturity and the OID includible in the owner's gross income for the calendar year when the obligation matures. Turbotax amended return 2011 The required withholding at maturity is limited to the cash paid. Turbotax amended return 2011 Sales and redemptions. Turbotax amended return 2011   If you report the gross proceeds from a sale, exchange, or redemption of a debt instrument on Form 1099-B for a calendar year, you may be required to withhold 28% of the amount reported. Turbotax amended return 2011 Backup withholding applies in the following situations. Turbotax amended return 2011 The payee does not give you a TIN. Turbotax amended return 2011 The IRS notifies you that the payee gave an incorrect TIN. Turbotax amended return 2011 For debt instruments held in an account opened after 1983, the payee does not certify, under penalties of perjury, that the TIN given is correct. Turbotax amended return 2011 Payments outside the United States to U. Turbotax amended return 2011 S. Turbotax amended return 2011 person. Turbotax amended return 2011   The requirements for backup withholding and information reporting apply to payments of OID and interest made outside the United States to a U. Turbotax amended return 2011 S. Turbotax amended return 2011 person, a controlled foreign corporation, or a foreign person at least 50% of whose income for the preceding 3-year period is effectively connected with the conduct of a U. Turbotax amended return 2011 S. Turbotax amended return 2011 trade or business. Turbotax amended return 2011 Payments to foreign person. Turbotax amended return 2011   The following discussions explain the rules for backup withholding and information reporting on payments to foreign persons. Turbotax amended return 2011 U. Turbotax amended return 2011 S. Turbotax amended return 2011 -source amount. Turbotax amended return 2011   Backup withholding and information reporting are not required for payments of U. Turbotax amended return 2011 S. Turbotax amended return 2011 -source OID, interest, or proceeds from a sale or redemption of an OID instrument if the payee has given you proof (generally the appropriate Form W-8 or an acceptable substitute) that the payee is a foreign person. Turbotax amended return 2011 A U. Turbotax amended return 2011 S. Turbotax amended return 2011 resident is not a foreign person. Turbotax amended return 2011 For proof of the payee's foreign status, you can rely on the appropriate Form W-8 or on documentary evidence for payments made outside the United States to an offshore account or, in case of broker proceeds, a sale effected outside the United States. Turbotax amended return 2011 Receipt of the appropriate Form W-8 does not relieve you from information reporting and backup withholding if you actually know the payee is a U. Turbotax amended return 2011 S. Turbotax amended return 2011 person. Turbotax amended return 2011   For information about the 28% withholding tax that may apply to payments of U. Turbotax amended return 2011 S. Turbotax amended return 2011 -source OID or interest to foreign persons, see Publication 515. Turbotax amended return 2011 Foreign-source amount. Turbotax amended return 2011   Backup withholding and information reporting are not required for payments of foreign-source OID and interest made outside the United States. Turbotax amended return 2011 However, if the payments are made inside the United States, the requirements for backup withholding and information reporting will apply unless the payee has given you the appropriate Form W-8 or acceptable substitute as proof that the payee is a foreign person. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information about backup withholding and information reporting on foreign-source amounts or payments to foreign persons, see Regulations section 1. Turbotax amended return 2011 6049-5. Turbotax amended return 2011 Information for Owners of OID Debt Instruments This section is for persons who prepare their own tax returns. Turbotax amended return 2011 It discusses the income tax rules for figuring and reporting OID on long-term debt instruments. Turbotax amended return 2011 It also includes a similar discussion for stripped bonds and coupons, such as zero coupon bonds available through the Department of the Treasury's STRIPS program and government-sponsored enterprises such as the Resolution Funding Corporation. Turbotax amended return 2011 However, the information provided does not cover every situation. Turbotax amended return 2011 More information can be found in the regulations under sections 1271 through 1275 of the Internal Revenue Code. Turbotax amended return 2011 Including OID in income. Turbotax amended return 2011   Generally, you include OID in income as it accrues each year, whether or not you receive any payments from the debt instrument issuer. Turbotax amended return 2011 Exceptions. Turbotax amended return 2011   The rules for including OID in income as it accrues generally do not apply to the following debt instruments. Turbotax amended return 2011 U. Turbotax amended return 2011 S. Turbotax amended return 2011 savings bonds. Turbotax amended return 2011 Tax-exempt obligations. Turbotax amended return 2011 (However, see Tax-Exempt Bonds and Coupons, later. Turbotax amended return 2011 ) Obligations issued by individuals before March 2, 1984. Turbotax amended return 2011 Loans of $10,000 or less between individuals who are not in the business of lending money. Turbotax amended return 2011 (The dollar limit includes outstanding prior loans by the lender to the borrower. Turbotax amended return 2011 ) This exception does not apply if a principal purpose of the loan is to avoid any federal tax. Turbotax amended return 2011   See chapter 1 of Publication 550 for information about the rules for these and other types of discounted debt instruments, such as short-term and market discount obligations. Turbotax amended return 2011 Publication 550 also discusses rules for holders of REMIC interests and CDOs. Turbotax amended return 2011 De minimis rule. Turbotax amended return 2011   You can treat OID as zero if the total OID on a debt instrument is less than one-fourth of 1% (. Turbotax amended return 2011 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. Turbotax amended return 2011 Debt instruments with de minimis OID are not listed in this publication. Turbotax amended return 2011 There are special rules to determine the de minimis amount in the case of debt instruments that provide for more than one payment of principal. Turbotax amended return 2011 Also, the de minimis rules generally do not apply to tax-exempt obligations. Turbotax amended return 2011 Example 2. Turbotax amended return 2011 You bought at issuance a 10-year debt instrument with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. Turbotax amended return 2011 One-fourth of 1% of $1,000 (the stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. Turbotax amended return 2011 Under the de minimis rule, you can treat the OID as zero because the $20 discount is less than $25. Turbotax amended return 2011 Example 3. Turbotax amended return 2011 Assume the same facts as Example 2, except the debt instrument was issued at $950. Turbotax amended return 2011 You must report part of the $50 OID each year because it is more than $25. Turbotax amended return 2011 Choice to report all interest as OID. Turbotax amended return 2011   Generally, you can choose to treat all interest on a debt instrument acquired after April 3, 1994, as OID and include it in gross income by using the constant yield method. Turbotax amended return 2011 See Constant yield method under Debt Instruments Issued After 1984, later, for more information. Turbotax amended return 2011   For this choice, interest includes stated interest, acquisition discount, OID, de minimis OID, market discount, de minimis market discount, and unstated interest, as adjusted by any amortizable bond premium or acquisition premium. Turbotax amended return 2011 For more information, see Regulations section 1. Turbotax amended return 2011 1272-3. Turbotax amended return 2011 Purchase after date of original issue. Turbotax amended return 2011   A debt instrument you purchased after the date of original issue may have premium, acquisition premium, or market discount. Turbotax amended return 2011 If so, the OID reported to you on Form 1099-OID may have to be adjusted. Turbotax amended return 2011 For more information, see Showing an OID adjustment under How To Report OID, later. Turbotax amended return 2011 The following rules generally do not apply to contingent payment debt instruments. Turbotax amended return 2011 Adjustment for premium. Turbotax amended return 2011   If your debt instrument (other than an inflation-indexed debt instrument) has premium, do not report any OID as ordinary income. Turbotax amended return 2011 Your adjustment is the total OID shown on your Form 1099-OID. Turbotax amended return 2011 Adjustment for acquisition premium. Turbotax amended return 2011   If your debt instrument has acquisition premium, reduce the OID you report. Turbotax amended return 2011 Your adjustment is the difference between the OID shown on your Form 1099-OID and the reduced OID amount figured using the rules explained later under Figuring OID on Long-Term Debt Instruments. Turbotax amended return 2011 Adjustment for market discount. Turbotax amended return 2011   If your debt instrument has market discount that you choose to include in income currently, increase the OID you report. Turbotax amended return 2011 Your adjustment is the accrued market discount for the year. Turbotax amended return 2011 See Market Discount Bonds in chapter 1 of Publication 550 for information on how to figure accrued market discount and include it in your income currently and for other information about market discount bonds. Turbotax amended return 2011 If you choose to use the constant yield method to figure accrued market discount, also see Figuring OID on Long-Term Debt Instruments, later. Turbotax amended return 2011 The constant yield method of figuring accrued OID, explained in those discussions under Constant yield method, is also used to figure accrued market discount. Turbotax amended return 2011 For more information concerning premium or market discount on an inflation-indexed debt instrument, see Regulations section 1. Turbotax amended return 2011 1275-7. Turbotax amended return 2011 Sale, exchange, or redemption. Turbotax amended return 2011   Generally, you treat your gain or loss from the sale, exchange, or redemption of a discounted debt instrument as a capital gain or loss if you held the debt instrument as a capital asset. Turbotax amended return 2011 If you sold the debt instrument through a broker, you should receive Form 1099-B or an equivalent statement from the broker. Turbotax amended return 2011 Use the Form 1099-B or other statement and your brokerage statements to complete Form 8949, and Schedule D (Form 1040). Turbotax amended return 2011   Your gain or loss is the difference between the amount you realized on the sale, exchange, or redemption and your basis in the debt instrument. Turbotax amended return 2011 Your basis, generally, is your cost increased by the OID you have included in income each year you held it. Turbotax amended return 2011 In general, to determine your gain or loss on a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. Turbotax amended return 2011   See chapter 4 of Publication 550 for more information about the tax treatment of the sale or redemption of discounted debt instruments. Turbotax amended return 2011 Example 4. Turbotax amended return 2011 Larry, a calendar year taxpayer, bought a corporate debt instrument at original issue for $86,235. Turbotax amended return 2011 00 on November 1 of Year 1. Turbotax amended return 2011 The 15-year debt instrument matures on October 31 of Year 16 at a stated redemption price of $100,000. Turbotax amended return 2011 The debt instrument provides for semiannual payments of interest at 10%. Turbotax amended return 2011 Assume the debt instrument is a capital asset in Larry's hands. Turbotax amended return 2011 The debt instrument has $13,765. Turbotax amended return 2011 00 of OID ($100,000 stated redemption price at maturity minus $86,235. Turbotax amended return 2011 00 issue price). Turbotax amended return 2011 Larry sold the debt instrument for $90,000 on November 1 of Year 4. Turbotax amended return 2011 Including the OID he will report for the period he held the debt instrument in Year 4, Larry has included $4,556. Turbotax amended return 2011 00 of OID in income and has increased his basis by that amount to $90,791. Turbotax amended return 2011 00. Turbotax amended return 2011 Larry has realized a loss of $791. Turbotax amended return 2011 00. Turbotax amended return 2011 All of Larry's loss is capital loss. Turbotax amended return 2011 Form 1099-OID The issuer of the debt instrument (or your broker, if you purchased or held the debt instrument through a broker) should give you a copy of Form 1099-OID or a similar statement if the accrued OID for the calendar year is $10 or more and the term of the debt instrument is more than 1 year. Turbotax amended return 2011 Form 1099-OID shows all OID income in box 1 except OID on a U. Turbotax amended return 2011 S. Turbotax amended return 2011 Treasury obligation, which is shown in box 8. Turbotax amended return 2011 It also shows, in box 2, any qualified stated interest you must include in income. Turbotax amended return 2011 (However, any qualified stated interest on Treasury inflation-protected securities can be reported on Form 1099-INT in box 3. Turbotax amended return 2011 ) A copy of Form 1099-OID will be sent to the IRS. Turbotax amended return 2011 Do not attach your copy to your tax return. Turbotax amended return 2011 Keep it for your records. Turbotax amended return 2011 If you are required to file a tax return and you receive Form 1099-OID showing taxable amounts, you must report these amounts on your return. Turbotax amended return 2011 A 20% accuracy-related penalty may be charged for underpayment of tax due to either negligence or disregard of rules and regulations or substantial understatement of tax. Turbotax amended return 2011 Form 1099-OID not received. Turbotax amended return 2011   If you held an OID debt instrument for a calendar year but did not receive a Form 1099-OID, refer to the discussions under Figuring OID on Long-Term Debt Instruments, later, for information on the OID you must report. Turbotax amended return 2011 Refiguring OID. Turbotax amended return 2011   You must refigure the OID shown on Form 1099-OID, in box 1 or box 8, to determine the proper amount to include in income if one of the following applies. Turbotax amended return 2011 You bought the debt instrument at a premium or at an acquisition premium. Turbotax amended return 2011 The debt instrument is a stripped bond or coupon (including zero coupon bonds backed by U. Turbotax amended return 2011 S. Turbotax amended return 2011 Treasury securities). Turbotax amended return 2011 The debt instrument is a contingent payment or inflation-indexed debt instrument. Turbotax amended return 2011 See the discussions under Figuring OID on Long-Term Debt Instruments or Figuring OID on Stripped Bonds and Coupons, later, for the specific computations. Turbotax amended return 2011 Refiguring interest. Turbotax amended return 2011   If you disposed of a debt instrument or acquired it from another holder between interest dates, see the discussion under Bonds Sold Between Interest Dates in chapter 1 of Publication 550 for information about refiguring the interest shown on Form 1099-OID in box 2. Turbotax amended return 2011 Nominee. Turbotax amended return 2011   If you are the holder of an OID debt instrument and you receive a Form 1099-OID that shows your taxpayer identification number and includes amounts belonging to another person, you are considered a “nominee. Turbotax amended return 2011 ” You must file another Form 1099-OID for each actual owner, showing the OID for the owner. Turbotax amended return 2011 Show the owner of the debt instrument as the “recipient” and you as the “payer. Turbotax amended return 2011 ”   Complete Form 1099-OID and Form 1096 and file the forms with the Internal Revenue Service Center for your area. Turbotax amended return 2011 You must also give a copy of the Form 1099-OID to the actual owner. Turbotax amended return 2011 However, you are not required to file a nominee return to show amounts belonging to your spouse. Turbotax amended return 2011 See the Form 1099 instructions for more information. Turbotax amended return 2011   When preparing your tax return, follow the instructions under Showing an OID adjustment in the next discussion. Turbotax amended return 2011 How To Report OID Generally, you report your taxable interest and OID income on the interest line of Form 1040EZ, Form 1040A, or Form 1040. Turbotax amended return 2011 Form 1040 or Form 1040A required. Turbotax amended return 2011   You must use Form 1040 or Form 1040A (you cannot use Form 1040EZ) under either of the following conditions. Turbotax amended return 2011 You received a Form 1099-OID as a nominee for the actual owner. Turbotax amended return 2011 Your total interest and OID income for the year was more than $1,500. Turbotax amended return 2011 Form 1040 required. Turbotax amended return 2011   You must use Form 1040 (you cannot use Form 1040A or Form 1040EZ) if you are reporting more or less OID than the amount shown on Form 1099-OID, other than because you are a nominee. Turbotax amended return 2011 For example, if you paid a premium or an acquisition premium when you purchased the debt instrument, you must use Form 1040 because you will report less OID than shown on Form 1099-OID. Turbotax amended return 2011 Also, you must use Form 1040 if you were charged an early withdrawal penalty. Turbotax amended return 2011 Where to report. Turbotax amended return 2011   List each payer's name (if a brokerage firm gave you a Form 1099, list the brokerage firm as the payer) and the amount received from each payer on Form 1040A, Schedule B, Part I, line 1, or Form 1040, Schedule B, line 1. Turbotax amended return 2011 Include all OID and periodic interest shown on any Form 1099-OID, boxes 1, 2, and 8, you received for the tax year. Turbotax amended return 2011 Also include any other OID and interest income for which you did not receive a Form 1099. Turbotax amended return 2011 Showing an OID adjustment. Turbotax amended return 2011   If you use Form 1040 to report more or less OID than shown on Form 1099-OID, list the full OID on Schedule B, Part I, line 1, and follow the instructions under 1 or 2, next. Turbotax amended return 2011   If you use Form 1040A to report the OID shown on a Form 1099-OID you received as a nominee for the actual owner, list the full OID on Schedule B, Part I, line 1 and follow the instructions under 1. Turbotax amended return 2011 If the OID, as adjusted, is less than the amount shown on Form 1099-OID, show the adjustment as follows. Turbotax amended return 2011 Under your last entry on line 1, subtotal all interest and OID income listed on line 1. Turbotax amended return 2011 Below the subtotal, write “Nominee Distribution” or “OID Adjustment” and show the OID you are not required to report. Turbotax amended return 2011 Subtract that OID from the subtotal and enter the result on line 2. Turbotax amended return 2011 If the OID, as adjusted, is more than the amount shown on Form 1099-OID, show the adjustment as follows. Turbotax amended return 2011 Under your last entry on line 1, subtotal all interest and OID income listed on line 1. Turbotax amended return 2011 Below the subtotal, write “OID Adjustment” and show the additional OID. Turbotax amended return 2011 Add that OID to the subtotal and enter the result on line 2. Turbotax amended return 2011 Figuring OID on Long-Term Debt Instruments How you figure the OID on a long-term debt instrument depends on the date it was issued. Turbotax amended return 2011 It also may depend on the type of the debt instrument. Turbotax amended return 2011 There are different rules for each of the following debt instruments. Turbotax amended return 2011 Corporate debt instruments issued after 1954 and before May 28, 1969, and government debt instruments issued after 1954 and before July 2, 1982. Turbotax amended return 2011 Corporate debt instruments issued after May 27, 1969, and before July 2, 1982. Turbotax amended return 2011 Debt instruments issued after July 1, 1982, and before 1985. Turbotax amended return 2011 Debt instruments issued after 1984 (other than debt instruments described in (5) and (6)). Turbotax amended return 2011 Contingent payment debt instruments issued after August 12, 1996. Turbotax amended return 2011 Inflation-indexed debt instruments (including Treasury inflation-protected securities) issued after January 5, 1997. Turbotax amended return 2011 Zero coupon bonds. Turbotax amended return 2011   The rules for figuring OID on zero coupon bonds backed by U. Turbotax amended return 2011 S. Turbotax amended return 2011 Treasury securities are discussed under Figuring OID on Stripped Bonds and Coupons, later. Turbotax amended return 2011 Corporate Debt Instruments Issued After 1954 and Before May 28, 1969, and Government Debt Instruments Issued After 1954 and Before July 2, 1982 If you hold these debt instruments as capital assets, you include OID in income only in the year the debt instrument is sold, exchanged, or redeemed, and only if you have a gain. Turbotax amended return 2011 The OID, which is taxed as ordinary income, generally equals the following amount. Turbotax amended return 2011   number of full months you held the debt instrument  number of full months from date of original issue to date of maturity X original issue discount The balance of the gain is capital gain. Turbotax amended return 2011 If there is a loss on the sale of the debt instrument, the entire loss is a capital loss and no OID is reported. Turbotax amended return 2011 Corporate Debt Instruments Issued After May 27, 1969, and Before July 2, 1982 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments. Turbotax amended return 2011 For information about showing the correct OID on your tax return, see the discussion under How To Report OID, earlier. Turbotax amended return 2011 Your basis in the debt instrument is increased by the OID you include in income. Turbotax amended return 2011 Form 1099-OID. Turbotax amended return 2011   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. Turbotax amended return 2011 However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. Turbotax amended return 2011 See Reduction for acquisition premium, later. Turbotax amended return 2011 If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. Turbotax amended return 2011 irs. Turbotax amended return 2011 gov/pub1212 by clicking the link under Recent Developments. Turbotax amended return 2011 Form 1099-OID not received. Turbotax amended return 2011    The OID listed is for each $1,000 of redemption price. Turbotax amended return 2011 You must adjust the listed amount if your debt instrument has a different principal amount. Turbotax amended return 2011 For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. Turbotax amended return 2011   If you held the debt instrument the entire year, use the OID shown in Section I-A for a calendar year. Turbotax amended return 2011 (If your debt instrument is not listed in Section I-A, consult the issuer for information about the issue price and the OID that accrued for that year. Turbotax amended return 2011 ) If you did not hold the debt instrument the entire year, figure your OID using the following method. Turbotax amended return 2011 Divide the OID shown by 12. Turbotax amended return 2011 Multiply the result in (1) by the number of complete and partial months (for example, 6½ months) you held the debt instrument during a calendar year. Turbotax amended return 2011 This is the OID to include in income unless you paid an acquisition premium. Turbotax amended return 2011 The reduction for acquisition premium is discussed next. Turbotax amended return 2011 Reduction for acquisition premium. Turbotax amended return 2011   If you bought the debt instrument at an acquisition premium, figure the OID to include in income as follows. Turbotax amended return 2011 Divide the total OID on the debt instrument by the number of complete months, and any part of a month, from the date of original issue to the maturity date. Turbotax amended return 2011 This is the monthly OID. Turbotax amended return 2011 Subtract from your cost the issue price and the accumulated OID from the date of issue to the date of purchase. Turbotax amended return 2011 (If the result is zero or less, stop here. Turbotax amended return 2011 You did not pay an acquisition premium. Turbotax amended return 2011 ) Divide the amount figured in (2) by the number of complete months, and any part of a month, from the date of your purchase to the maturity date. Turbotax amended return 2011 Subtract the amount figured in (3) from the amount figured in (1). Turbotax amended return 2011 This is the OID to include in income for each month you hold the debt instrument during the year. Turbotax amended return 2011 Transfers during the month. Turbotax amended return 2011   If you buy or sell a debt instrument on any day other than the same day of the month as the date of original issue, the ratable monthly portion of OID for the month of sale is divided between the seller and the buyer according to the number of days each held the debt instrument. Turbotax amended return 2011 Your holding period for this purpose begins the day you acquire the debt instrument and ends the day before you dispose of it. Turbotax amended return 2011 Debt Instruments Issued After July 1, 1982, and Before 1985 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments and increase your basis by the amount included. Turbotax amended return 2011 For information about showing the correct OID on your tax return, see How To Report OID, earlier. Turbotax amended return 2011 Form 1099-OID. Turbotax amended return 2011   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. Turbotax amended return 2011 However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. Turbotax amended return 2011 See Constant yield method and the discussions on acquisition premium that follow, later. Turbotax amended return 2011 If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. Turbotax amended return 2011 irs. Turbotax amended return 2011 gov/pub1212 by clicking the link under Recent Developments. Turbotax amended return 2011 Form 1099-OID not received. Turbotax amended return 2011    The OID listed is for each $1,000 of redemption price. Turbotax amended return 2011 You must adjust the listed amount if your debt instrument has a different principal amount. Turbotax amended return 2011 For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. Turbotax amended return 2011   If you held the debt instrument the entire year, use the OID shown in Section I-A. Turbotax amended return 2011 (If your instrument is not listed in Section I-A, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. Turbotax amended return 2011 ) If you did not hold the debt instrument the entire year, figure your OID using either of the following methods. Turbotax amended return 2011 Method 1. Turbotax amended return 2011    Divide the total OID for a calendar year by 365 (366 for leap years). Turbotax amended return 2011 Multiply the result in (1) by the number of days you held the debt instrument during that particular year. Turbotax amended return 2011  This computation is an approximation and may result in a slightly higher OID than Method 2. Turbotax amended return 2011 Method 2. Turbotax amended return 2011    Look up the daily OID for the first accrual period you held the debt instrument during a calendar year. Turbotax amended return 2011 (See Accrual period under Constant yield method, next. Turbotax amended return 2011 ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. Turbotax amended return 2011 If you held the debt instrument for part of both accrual periods, repeat (1) and (2) for the second accrual period. Turbotax amended return 2011 Add the results of (2) and (3). Turbotax amended return 2011 This is the OID to include in income, unless you paid an acquisition premium. Turbotax amended return 2011 (The reduction for acquisition premium is discussed later. Turbotax amended return 2011 ) Constant yield method. Turbotax amended return 2011   This discussion shows how to figure OID on debt instruments issued after July 1, 1982, and before 1985, using a constant yield method. Turbotax amended return 2011 OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. Turbotax amended return 2011   Figure the OID allocable to any accrual period as follows. Turbotax amended return 2011 Multiply the adjusted issue price at the beginning of the accrual period by the debt instrument's yield to maturity. Turbotax amended return 2011 Subtract from the result in (1) any qualified stated interest allocable to the accrual period. Turbotax amended return 2011 Accrual period. Turbotax amended return 2011   An accrual period for any OID debt instrument issued after July 1, 1982, and before 1985 is each 1-year period beginning on the date of the issue of the obligation and each anniversary thereafter, or the shorter period to maturity for the last accrual period. Turbotax amended return 2011 Your tax year will usually include parts of two accrual periods. Turbotax amended return 2011 Daily OID. Turbotax amended return 2011   The OID for any accrual period is allocated equally to each day in the accrual period. Turbotax amended return 2011 You must include in income the sum of the OID amounts for each day you hold the debt instrument during the year. Turbotax amended return 2011 If your tax year includes parts of two or more accrual periods, you must include the proper daily OID amounts for each accrual period. Turbotax amended return 2011 Figuring daily OID. Turbotax amended return 2011   The daily OID for the initial accrual period is figured using the following formula. Turbotax amended return 2011   (ip × ytm) − qsi     p   ip = issue price ytm = yield to maturity qsi = qualified stated interest p = number of days in accrual period         The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. Turbotax amended return 2011 Reduction for acquisition premium on debt instruments purchased before July 19, 1984. Turbotax amended return 2011   If you bought the debt instrument at an acquisition premium before July 19, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. Turbotax amended return 2011 Figure the daily acquisition premium by dividing the total acquisition premium by the number of days in the period beginning on your purchase date and ending on the day before the date of maturity. Turbotax amended return 2011 Reduction for acquisition premium on debt instruments purchased after July 18, 1984. Turbotax amended return 2011   If you bought the debt instrument at an acquisition premium after July 18, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. Turbotax amended return 2011 However, the method of figuring the daily acquisition premium is different from the method described in the preceding discussion. Turbotax amended return 2011 To figure the daily acquisition premium under this method, multiply the daily OID by the following fraction. Turbotax amended return 2011 The numerator is the acquisition premium. Turbotax amended return 2011 The denominator is the total OID remaining for the debt instrument after your purchase date. Turbotax amended return 2011 Section I-A is available at www. Turbotax amended return 2011 irs. Turbotax amended return 2011 gov/pub1212 and clicking the link under Recent Developments. Turbotax amended return 2011 Using Section I-A to figure accumulated OID. Turbotax amended return 2011   If you bought your corporate debt instrument in a calendar year or the subsequent year, you can figure the accumulated OID to the date of purchase by adding the following amounts. Turbotax amended return 2011 The amount from the “Total OID to January 1, YYYY” column for your debt instrument. Turbotax amended return 2011 The OID from January 1 of a calendar year to the date of purchase, figured as follows. Turbotax amended return 2011 Multiply the daily OID for the first accrual period in the calendar year by the number of days from January 1 to the date of purchase, or the end of the accrual period if the debt instrument was purchased in the second or third accrual period. Turbotax amended return 2011 Multiply the daily OID for each subsequent accrual period by the number of days in the period to the date of purchase or the end of the accrual period, whichever applies. Turbotax amended return 2011 Add the amounts figured in (2a) and (2b). Turbotax amended return 2011 Debt Instruments Issued After 1984 If you hold debt instruments issued after 1984, you must report part of the OID in gross income each year that you own the debt instruments. Turbotax amended return 2011 You must include the OID in gross income whether or not you hold the debt instrument as a capital asset. Turbotax amended return 2011 Your basis in the debt instrument is increased by the OID you include in income. Turbotax amended return 2011 For information about showing the correct OID on your tax return, see How To Report OID, earlier. Turbotax amended return 2011 Form 1099-OID. Turbotax amended return 2011   You should receive a Form 1099-OID showing OID for the part of a calendar year you held the debt instrument. Turbotax amended return 2011 However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. Turbotax amended return 2011 See Constant yield method and Reduction for acquisition premium, later. Turbotax amended return 2011   You may also need to refigure the OID for a contingent payment or inflation-indexed debt instrument on which the amount reported on Form 1099-OID is inaccurate. Turbotax amended return 2011 See Contingent Payment Debt Instruments or Inflation-Indexed Debt Instruments, later. Turbotax amended return 2011 If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-B available at www. Turbotax amended return 2011 irs. Turbotax amended return 2011 gov/pub1212 by clicking the link under Recent Developments. Turbotax amended return 2011 Form 1099-OID not received. Turbotax amended return 2011   The OID listed is for each $1,000 of redemption price. Turbotax amended return 2011 You must adjust the listed amount if your debt instrument has a different principal amount. Turbotax amended return 2011 For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. Turbotax amended return 2011   Use the OID shown in Section I-B for a calendar year if you held the debt instrument the entire year. Turbotax amended return 2011 (If your debt instrument is not listed in Section I-B, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. Turbotax amended return 2011 ) If you did not hold the debt instrument the entire year, figure your OID as follows. Turbotax amended return 2011 Look up the daily OID for the first accrual period in which you held the debt instrument during a calendar year. Turbotax amended return 2011 (See Accrual period under Constant yield method, later. Turbotax amended return 2011 ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. Turbotax amended return 2011 Repeat (1) and (2) for any remaining accrual periods in which you held the debt instrument. Turbotax amended return 2011 Add the results of (2) and (3). Turbotax amended return 2011 This is the OID to include in income for that year, unless you paid an acquisition premium. Turbotax amended return 2011 (The reduction for acquisition premium is discussed later. Turbotax amended return 2011 ) Tax-exempt bond. Turbotax amended return 2011   If you own a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. Turbotax amended return 2011 You need to make this adjustment to determine if you have a gain or loss on a later disposition of the bond. Turbotax amended return 2011 In general, use the rules that follow to determine your OID. Turbotax amended return 2011 Constant yield method. Turbotax amended return 2011   This discussion shows how to figure OID on debt instruments issued after 1984 using a constant yield method. Turbotax amended return 2011 (The special rules that apply to contingent payment debt instruments and inflation-indexed debt instruments are explained later. Turbotax amended return 2011 ) OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. Turbotax amended return 2011   Figure the OID allocable to any accrual period as follows. Turbotax amended return 2011 Multiply the adjusted issue price at the beginning of the accrual period by a fraction. Turbotax amended return 2011 The numerator of the fraction is the debt instrument's yield to maturity and the denominator is the number of accrual periods per year. Turbotax amended return 2011 The yield must be stated appropriately taking into account the length of the particular accrual period. Turbotax amended return 2011 Subtract from the result in (1) any qualified stated interest allocable to the accrual period. Turbotax amended return 2011 Accrual period. Turbotax amended return 2011   For debt instruments issued after 1984 and before April 4, 1994, an accrual period is each 6-month period that ends on the day that corresponds to the stated maturity date of the debt instrument or the date 6 months before that date. Turbotax amended return 2011 For example, a debt instrument maturing on March 31 has accrual periods that end on September 30 and March 31 of each calendar year. Turbotax amended return 2011 Any short period is included as the first accrual period. Turbotax amended return 2011   For debt instruments issued after April 3, 1994, accrual periods may be of any length and may vary in length over the term of the debt instrument, as long as each accrual period is no longer than 1 year and all payments are made on the first or last day of an accrual period. Turbotax amended return 2011 However, the OID listed for these debt instruments in Section I-B has been figured using 6-month accrual periods. Turbotax amended return 2011 Daily OID. Turbotax amended return 2011   The OID for any accrual period is allocated equally to each day in the accrual period. Turbotax amended return 2011 Figure the amount to include in income by adding the OID for each day you hold the debt instrument during the year. Turbotax amended return 2011 Since your tax year will usually include parts of two or more accrual periods, you must include the proper daily OID for each accrual period. Turbotax amended return 2011 If your debt instrument has 6-month accrual periods, your tax year will usually include one full 6-month accrual period and parts of two other 6-month periods. Turbotax amended return 2011 Figuring daily OID. Turbotax amended return 2011   The daily OID for the initial accrual period is figured using the following formula. Turbotax amended return 2011   (ip × ytm/n) − qsi     p   ip = issue price ytm = yield to maturity n = number of accrual periods in 1 year qsi = qualified stated interest p = number of days in accrual period       The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. Turbotax amended return 2011 Example 5. Turbotax amended return 2011 On January 1 of Year 1, you bought a 15-year, 10% debt instrument of A Corporation at original issue for $86,235. Turbotax amended return 2011 17. Turbotax amended return 2011 According to the prospectus, the debt instrument matures on December 31 of Year 15 at a stated redemption price of $100,000. Turbotax amended return 2011 The yield to maturity is 12%, compounded semiannually. Turbotax amended return 2011 The debt instrument provides for qualified stated interest payments of $5,000 on June 30 and December 31 of each calendar year. Turbotax amended return 2011 The accrual periods are the 6-month periods ending on each of these dates. Turbotax amended return 2011 The number of days for the first accrual period (January 1 through June 30) is 181 days (182 for leap years). Turbotax amended return 2011 The daily OID for the first accrual period is figured as follows. Turbotax amended return 2011   ($86,235. Turbotax amended return 2011 17 x . Turbotax amended return 2011 12/2) – $5,000     181 days     = $174. Turbotax amended return 2011 11020 = $. Turbotax amended return 2011 96193   181           The adjusted issue price at the beginning of the second accrual period is the issue price plus the OID previously includible in income ($86,235. Turbotax amended return 2011 17 + $174. Turbotax amended return 2011 11), or $86,409. Turbotax amended return 2011 28. Turbotax amended return 2011 The number of days for the second accrual period (July 1 through December 31) is 184 days. Turbotax amended return 2011 The daily OID for the second accrual period is figured as follows. Turbotax amended return 2011   ($86,409. Turbotax amended return 2011 28 x . Turbotax amended return 2011 12/2) – $5,000     184 days     = $184. Turbotax amended return 2011 55681 = $1. Turbotax amended return 2011 00303   184 Since the first and second accrual periods coincide exactly with your tax year, you include in income for Year 1 the OID allocable to the first two accrual periods, $174. Turbotax amended return 2011 11 ($. Turbotax amended return 2011 95665 × 182 days) plus $184. Turbotax amended return 2011 56 ($1. Turbotax amended return 2011 00303 × 184 days), or $358. Turbotax amended return 2011 67. Turbotax amended return 2011 Add the OID to the $10,000 interest you report on your income tax return for Year 1. Turbotax amended return 2011 Example 6. Turbotax amended return 2011 Assume the same facts as in Example 5, except that you bought the debt instrument at original issue on May 1 of Year 1, with a maturity date of April 30, Year 16. Turbotax amended return 2011 Also, the interest payment dates are October 31 and April 30 of each calendar year. Turbotax amended return 2011 The accrual periods are the 6-month periods ending on each of these dates. Turbotax amended return 2011 The number of days for the first accrual period (May 1 through October 31) is 184 days. Turbotax amended return 2011 The daily OID for the first accrual period is figured as follows. Turbotax amended return 2011   ($86,235. Turbotax amended return 2011 17 x . Turbotax amended return 2011 12/2) – $5,000     184 days     = $174. Turbotax amended return 2011 11020 = $. Turbotax amended return 2011 94625   184           The number of days for the second accrual period (November 1 through April 30) is 181 days (182 for leap years). Turbotax amended return 2011 The daily OID for the second accrual period is figured as follows. Turbotax amended return 2011   ($86,409. Turbotax amended return 2011 28 x . Turbotax amended return 2011 12/2) – $5,000     181 days     = $184. Turbotax amended return 2011 55681 = $1. Turbotax amended return 2011 01965   181 If you hold the debt instrument through the end of Year 1, you must include $236. Turbotax amended return 2011 31 of OID in income. Turbotax amended return 2011 This is $174. Turbotax amended return 2011 11 ($. Turbotax amended return 2011 94625 × 184 days) for the period May 1 through October 31 plus $62. Turbotax amended return 2011 20 ($1. Turbotax amended return 2011 01965 × 61 days) for the period November 1 through December 31. Turbotax amended return 2011 The OID is added to the $5,000 interest income paid on October 31 of Year 1. Turbotax amended return 2011 Your basis in the debt instrument is increased by the OID you include in income. Turbotax amended return 2011 On January 1 of Year 2, your basis in the A Corporation debt instrument is $86,471. Turbotax amended return 2011 48 ($86,235. Turbotax amended return 2011 17 + $236. Turbotax amended return 2011 31). Turbotax amended return 2011 Short first accrual period. Turbotax amended return 2011   You may have to make adjustments if a debt instrument has a short first accrual period. Turbotax amended return 2011 For example, a debt instrument with 6-month accrual periods that is issued on February 15 and matures on October 31 has a short first accrual period that ends April 30. Turbotax amended return 2011 (The remaining accrual periods begin on May 1 and November 1. Turbotax amended return 2011 ) For this short period, figure the daily OID as described earlier, but adjust the yield for the length of the short accrual period. Turbotax amended return 2011 You may use any reasonable compounding method in determining OID for a short period. Turbotax amended return 2011 Examples of reasonable compounding methods include continuous compounding and monthly compounding (that is, simple interest within a month). Turbotax amended return 2011 Consult your tax advisor for more information about making this computation. Turbotax amended return 2011   The OID for the final accrual period is the difference between the amount payable at maturity (other than a payment of qualified stated interest) and the adjusted issue price at the beginning of the final accrual period. Turbotax amended return 2011 Reduction for acquisition premium. Turbotax amended return 2011   If you bought the debt instrument at an acquisition premium, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. Turbotax amended return 2011 To figure the daily acquisition premium, multiply the daily OID by the following fraction. Turbotax amended return 2011 The numerator is the acquisition premium. Turbotax amended return 2011 The denominator is the total OID remaining for the debt instrument after your purchase date. Turbotax amended return 2011 Example 7. Turbotax amended return 2011 Assume the same facts as in Example 6, except that you bought the debt instrument on November 1 of Year 1 for $87,000, after its original issue on May 1 of Year 1. Turbotax amended return 2011 The adjusted issue price on November 1 of Year 1 is $86,409. Turbotax amended return 2011 28 ($86,235. Turbotax amended return 2011 17 + $174. Turbotax amended return 2011 11). Turbotax amended return 2011 In this case, you paid an acquisition premium of $590. Turbotax amended return 2011 72 ($87,000 − $86,409. Turbotax amended return 2011 28). Turbotax amended return 2011 The daily OID for the accrual period November 1 through April 30, reduced for the acquisition premium, is figured as follows. Turbotax amended return 2011 1) Daily OID on date of purchase (2nd accrual period) $1. Turbotax amended return 2011 01965*  2)  Acquisition premium $590. Turbotax amended return 2011 72    3)  Total OID remaining after purchase date ($13,764. Turbotax amended return 2011 83 − $174. Turbotax amended return 2011 11) 13,590. Turbotax amended return 2011 72   4) Line 2 ÷ line 3 . Turbotax amended return 2011 04346  5)  Line 1 × line 4 . Turbotax amended return 2011 04432  6)  Daily OID reduced for the acquisition premium. Turbotax amended return 2011 Line 1 − line 5 $0. Turbotax amended return 2011 97533  * As shown in Example 6. Turbotax amended return 2011 The total OID to include in income for Year 1 is $59. Turbotax amended return 2011 50 ($. Turbotax amended return 2011 97533 × 61 days). Turbotax amended return 2011 Contingent Payment Debt Instruments This discussion shows how to figure OID on a contingent payment debt instrument issued after August 12, 1996, that was issued for cash or publicly traded property. Turbotax amended return 2011 In general, a contingent payment debt instrument provides for one or more payments that are contingent as to timing or amount. Turbotax amended return 2011 If you hold a contingent payment bond, you must report OID as it accrues each year. Turbotax amended return 2011 Because the actual payments on a contingent payment debt instrument cannot be known in advance, issuers and holders cannot use the constant yield method (discussed earlier under Debt Instruments Issued After 1984) without making certain assumptions about the payments on the debt instrument. Turbotax amended return 2011 To figure OID accruals on contingent payment debt instruments, holders and issuers must use the noncontingent bond method. Turbotax amended return 2011 Noncontingent bond method. Turbotax amended return 2011    Under this method, the issuer must compute a comparable yield for the debt instrument and, based on this yield, construct a projected payment schedule for the instrument, which includes a projected fixed amount for each contingent payment. Turbotax amended return 2011 In general, holders and issuers accrue OID on this projected payment schedule using the constant yield method that applies to fixed payment debt instruments. Turbotax amended return 2011 When a contingent payment differs from the projected fixed amount, the holders and issuers make adjustments to their OID accruals. Turbotax amended return 2011 If the actual contingent payment is larger than expected, both the issuer and the holder increase their OID accruals. Turbotax amended return 2011 If the actual contingent payment is smaller than expected, holders and issuers generally decrease their OID accruals. Turbotax amended return 2011 Form 1099-OID. Turbotax amended return 2011   The amount shown on Form 1099-OID in box 1 you receive for a contingent payment debt instrument may not be the correct amount to include in income. Turbotax amended return 2011 For example, the amount may not be correct if the contingent payment was different from the projected amount. Turbotax amended return 2011 If the amount in box 1 is not correct, you must figure the OID to report on your return under the following rules. Turbotax amended return 2011 For information on showing an OID adjustment on your tax return, see How To Report OID, earlier. Turbotax amended return 2011 Figuring OID. Turbotax amended return 2011   To figure OID on a contingent payment debt instrument, you need to know the “comparable yield” and “projected payment schedule” of the debt instrument. Turbotax amended return 2011 The issuer must make these available to you. Turbotax amended return 2011 Comparable yield. Turbotax amended return 2011   The comparable yield generally is the yield at which the issuer would issue a fixed rate debt instrument with terms and conditions similar to those of the contingent payment debt instrument. Turbotax amended return 2011 The comparable yield is determined as of the debt instrument's issue date. Turbotax amended return 2011 Projected payment schedule. Turbotax amended return 2011   The projected payment schedule for a contingent payment debt instrument includes all fixed payments due under the instrument and a projected fixed amount for each contingent payment. Turbotax amended return 2011 The projected payment schedule is created by the issuer as of the debt instrument's issue date. Turbotax amended return 2011 It is used to determine the issuer's and holder's interest accruals and adjustments. Turbotax amended return 2011 Steps for figuring OID. Turbotax amended return 2011   Figure the OID on a contingent payment debt instrument in two steps. Turbotax amended return 2011 Figure the OID using the constant yield method (discussed earlier under Debt Instruments Issued After 1984 ) that applies to fixed payment debt instruments. Turbotax amended return 2011 Use the comparable yield as the yield to maturity. Turbotax amended return 2011 In general, use the projected payment schedule to determine the instrument's adjusted issue price at the beginning of each accrual period (other than the initial period). Turbotax amended return 2011 Do not treat any amount payable as qualified stated interest. Turbotax amended return 2011 Adjust the OID in (1) to account for actual contingent payments. Turbotax amended return 2011 If the contingent payment is greater than the projected fixed amount, you have a positive adjustment. Turbotax amended return 2011 If the contingent payment is less than the projected fixed amount, you have a negative adjustment. Turbotax amended return 2011 Net positive adjustment. Turbotax amended return 2011   A net positive adjustment exists for a tax year when the total of any positive adjustments described in (2) above for the tax year is more than the total of any negative adjustments for the tax year. Turbotax amended return 2011 Treat a net positive adjustment as additional OID for the tax year. Turbotax amended return 2011 Net negative adjustment. Turbotax amended return 2011   A net negative adjustment exists for a tax year when the total of any negative adjustments described in (2) above for the tax year is more than the total of any positive adjustments for the tax year. Turbotax amended return 2011 Use a net negative adjustment to offset OID on the debt instrument for the tax year. Turbotax amended return 2011 If the net negative adjustment is more than the OID on the debt instrument for the tax year, you can claim the difference as an ordinary loss. Turbotax amended return 2011 However, the amount you can claim as an ordinary loss is limited to the OID on the debt instrument you included in income in prior tax years. Turbotax amended return 2011 You must carry forward any net negative adjustment that is more than the total OID for the tax year and prior tax years and treat it as a negative adjustment in the next tax year. Turbotax amended return 2011 Basis adjustments. Turbotax amended return 2011   In general, increase your basis in a contingent payment debt instrument by the OID included in income. Turbotax amended return 2011 Your basis, however, is not affected by any negative or positive adjustments. Turbotax amended return 2011 Decrease your basis by any noncontingent payment received and the projected contingent payment scheduled to be received. Turbotax amended return 2011 Treatment of gain or loss on sale or exchange. Turbotax amended return 2011   If you sell a contingent payment debt instrument at a gain, your gain is ordinary income (interest income), even if you hold the debt instrument as a capital asset. Turbotax amended return 2011 If you sell a contingent payment debt instrument at a loss, your loss is an ordinary loss to the extent of your prior OID accruals on the debt instrument. Turbotax amended return 2011 If the debt instrument is a capital asset, treat any loss that is more than your prior OID accruals as a capital loss. Turbotax amended return 2011 See Regulations section 1. Turbotax amended return 2011 1275-4 for exceptions to these rules. Turbotax amended return 2011 Premium, acquisition premium, and market discount. Turbotax amended return 2011   The rules for accruing premium, acquisition premium, and market discount do not apply to a contingent payment debt instrument. Turbotax amended return 2011 See Regulations section 1. Turbotax amended return 2011 1275-4 to determine how to account for these items. Turbotax amended return 2011 Inflation-Indexed Debt Instruments This discussion shows how you figure OID on certain inflation-indexed debt instruments issued after January 5, 1997. Turbotax amended return 2011 An inflation-indexed debt instrument is generally a debt instrument on which the payments are adjusted for inflation and d