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State 1040ez Tax Form

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State 1040ez Tax Form

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

State 1040ez tax form Index A Abandonment of home, Abandonment. State 1040ez tax form Absence, temporary, Temporary absence. State 1040ez tax form Abstract fees, Settlement fees or closing costs. State 1040ez tax form Address, change of, Reminders Adjusted basis, Adjusted Basis, Adjusted Basis Definition of, Determining Basis Worksheet 1 to figure, Determining Basis, Worksheet 1. State 1040ez tax form Adjusted Basis of Home Sold—Illustrated Example 1 for Peter and Betty Clark, Worksheet 1. State 1040ez tax form Adjusted Basis of Home Sold—Illustrated Example 3 for Emily White, Worksheet 1 Instructions. State 1040ez tax form Adjusted Basis of Home Sold Adoption Adjusted basis of home for credit claimed, Decreases to Basis Advertising fees, Selling expenses. State 1040ez tax form Amount realized, Amount Realized Appraisal fees, Settlement fees or closing costs. State 1040ez tax form Architect's fees, Construction. State 1040ez tax form Armed forces Ownership and use tests, Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. State 1040ez tax form Assistance (see Tax help) B Back interest, Settlement fees or closing costs. State 1040ez tax form Basis Adjusted basis (see Adjusted basis) Determination of, Determining Basis, Adjusted Basis Other than cost, Basis Other Than Cost Building permit fees, Construction. State 1040ez tax form Business use of home, Business Use or Rental of Home, Use test met for business part (with no business use in year of sale). State 1040ez tax form C Casualties Amounts spent after to restore damaged property, Increases to Basis Deductible casualty losses, Decreases to Basis Disaster as cause of, Specific event safe harbors. State 1040ez tax form Insurance payments for casualty losses, Decreases to Basis Change of address, Reminders Closing costs, Settlement fees or closing costs. State 1040ez tax form Commissions, Selling expenses. State 1040ez tax form , Settlement fees or closing costs. State 1040ez tax form Community property Basis determination, Community property. State 1040ez tax form Condemnation Gain exclusion, Home destroyed or condemned. State 1040ez tax form Ownership and use test when previous home condemned, Previous home destroyed or condemned. State 1040ez tax form Condominiums As main home, Main Home Basis determination, Condominium. State 1040ez tax form Construction costs, Construction. State 1040ez tax form Built by you, Built by you. State 1040ez tax form Cooperative apartments As main home, Main Home Basis determination, Cooperative apartment. State 1040ez tax form Ownership and use tests, Cooperative apartment. State 1040ez tax form Cost as basis, Cost As Basis Credit reports Cost of obtaining, Settlement fees or closing costs. State 1040ez tax form D Date of sale, Date of sale. State 1040ez tax form Death Sale due to, Specific event safe harbors. State 1040ez tax form Spouse's death before sale, ownership and use tests, Sale of main home by surviving spouse. State 1040ez tax form Decreases to basis, Decreases to Basis Depreciation After May 6, 1997, Depreciation after May 6, 1997. State 1040ez tax form Home used for business or rental purposes, Decreases to Basis Destroyed homes Gain exclusion, Home destroyed or condemned. State 1040ez tax form Ownership and use test when previous home destroyed, Previous home destroyed or condemned. State 1040ez tax form Disabilities, individuals with Ownership and use test, Exception for individuals with a disability. State 1040ez tax form Disasters, Specific event safe harbors. State 1040ez tax form Discharge of qualified principal residence indebtedness, Adjusted Basis Divorce Home received from spouse, Home received from spouse. State 1040ez tax form Home transferred to spouse, Transfer to spouse. State 1040ez tax form Ownership and use tests, Home transferred from spouse. State 1040ez tax form Sale due to, Specific event safe harbors. State 1040ez tax form Transfers after July 18, 1984, Transfers after July 18, 1984. State 1040ez tax form Transfers before July 19, 1984, Transfers before July 19, 1984. State 1040ez tax form Use of home after divorce, Use of home after divorce. State 1040ez tax form Doctor's recommendation for sale, Doctor's recommendation safe harbor. State 1040ez tax form E Easements, Decreases to Basis Employee of the intelligence community, Employee of the intelligence community. State 1040ez tax form Employment Change in place of employment, Change in Place of Employment Payment by employer, when job transfer involved, Payment by employer. State 1040ez tax form Energy Conservation subsidies, Decreases to Basis Credit, Decreases to Basis Exclusion of gain, Excluding the Gain, Nonqualified Use Reduced maximum exclusion, Reduced Maximum Exclusion Expatriates, Expatriates. State 1040ez tax form F Federal mortgage subsidies Recapture of, Recapturing (Paying Back) a Federal Mortgage Subsidy Figuring gain or loss, Figuring Gain or Loss, More information. State 1040ez tax form Fire insurance premiums, Settlement fees or closing costs. State 1040ez tax form Foreclosure, Foreclosure or repossession. State 1040ez tax form Foreign Service, Foreign Service member. State 1040ez tax form Ownership and use tests, Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. State 1040ez tax form Form 1040 Reporting sale of home, Reporting the Sale Seller-financed mortgages, Seller-financed mortgage. State 1040ez tax form Form 1040, Schedule A Real estate taxes, Real estate taxes. State 1040ez tax form Form 1040, Schedule D Reporting sale of home, Reporting the Sale Form 1099-S Proceeds from real estate transactions, Date of sale. State 1040ez tax form , Form 1099-S. State 1040ez tax form , Form 1099-S. State 1040ez tax form Form 2119 Sale of home, Adjusted Basis Form 6252 Installment sale income, Installment sale. State 1040ez tax form Form 8828 Recapture tax, How to figure and report the recapture. State 1040ez tax form Form 8960 Net Investment Income Tax, Net Investment Income Tax (NIIT). State 1040ez tax form NIIT, Net Investment Income Tax (NIIT). State 1040ez tax form Form 982 Discharge of indebtedness, Adjusted Basis Free tax services, Free help with your tax return. State 1040ez tax form Future developments, Future Developments G Gain or loss Basis determination, Determining Basis, Adjusted Basis Exclusion of gain, Excluding the Gain Exclusion of gain, nonqualified use, Nonqualified Use Gain on sale, Gain on sale. State 1040ez tax form Loss on sale, Loss on sale. State 1040ez tax form Postponed from sale of previous home before May 7, 1997, Decreases to Basis Worksheet 2 to figure, Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home—Completed Example 1 for Amy, Worksheet 1. State 1040ez tax form Adjusted Basis of Home Sold—Illustrated Example 1 for Peter and Betty Clark, Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home—Illustrated Example 2 for Peter and Betty Clark, Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home—Illustrated Example 3 for Emily White, Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home Gifts Home received as, Home received as gift. State 1040ez tax form H Health Sale of home due to, Health Help (see Tax help) Homebuyer credit Recapture, Recapture of the post-2008 first-time homebuyer credit. State 1040ez tax form Houseboats As main home, Main Home I Important reminders Change of address, Reminders Home sold with undeducted points, Reminders Improvements Adjusted basis determination, Improvements. State 1040ez tax form Charges for, Settlement fees or closing costs. State 1040ez tax form Receipts and other records, Adjusted Basis Useful life of more than 1 year, Increases to Basis Increases to basis, Increases to Basis Individual taxpayer identification numbers (ITINs), Individual taxpayer identification number (ITIN). State 1040ez tax form Inheritance Home received as, Home acquired from a decedent who died before or after 2010. State 1040ez tax form Installment sales, Installment sale. State 1040ez tax form Involuntary conversion, Specific event safe harbors. State 1040ez tax form ITINs (Individual taxpayer identification numbers), Individual taxpayer identification number (ITIN). State 1040ez tax form J Joint owners not married, Joint owners not married. State 1040ez tax form Joint returns, Jointly owned home. State 1040ez tax form Ownership and use tests, Married Persons L Land Sale of land on which home located, Land. State 1040ez tax form Sale of vacant land, Vacant land. State 1040ez tax form Legal fees, Selling expenses. State 1040ez tax form , Settlement fees or closing costs. State 1040ez tax form , Construction. State 1040ez tax form Legal separation Sale due to, Specific event safe harbors. State 1040ez tax form Like-kind exchange, Sale of home acquired in a like-kind exchange. State 1040ez tax form Living expenses, Reasonable basic living expenses. State 1040ez tax form Loan assumption fees, Settlement fees or closing costs. State 1040ez tax form Loan placement fees, Selling expenses. State 1040ez tax form Loss (see Gain or loss) M Main home Defined, Main Home Factors used to determine, Factors used to determine main home. State 1040ez tax form Property used partly as, Property used partly as your main home. State 1040ez tax form , Property Used Partly for Business or Rental Married taxpayers (see Joint returns) Maximum exclusion, Maximum Exclusion Reduced, Reduced Maximum Exclusion Military (see Armed forces) Missing children, photographs of, Reminders Mobile homes As main home, Main Home More than one home, More than one home. State 1040ez tax form Mortgage fees, Settlement fees or closing costs. State 1040ez tax form Mortgage insurance premiums, Settlement fees or closing costs. State 1040ez tax form Mortgage subsidies Recapturing (paying back) federal mortgage subsidy, Recapturing (Paying Back) a Federal Mortgage Subsidy Mortgages, seller-financed, Seller-financed mortgage. State 1040ez tax form Moving expense, Settlement fees or closing costs. State 1040ez tax form Multiple births Sale due to, Specific event safe harbors. State 1040ez tax form N Nonqualified use, Nonqualified Use Nonresident aliens Spouse as, transfer of home to, Exception. State 1040ez tax form O Option to buy home, Option to buy. State 1040ez tax form Ownership and use tests, Ownership and Use Tests, Ownership and use tests met at different times. State 1040ez tax form P Partly used for business, Property Used Partly for Business or Rental Personal property Selling price of home not to include, Personal property. State 1040ez tax form Points, Selling expenses. State 1040ez tax form Home sold with undeducted points, Reminders Seller-paid, Seller-paid points. State 1040ez tax form Publications (see Tax help) R Real estate taxes, Settlement fees or closing costs. State 1040ez tax form , Real estate taxes. State 1040ez tax form Deducting in year of sale, Deducting Taxes in the Year of Sale Recapture of federal mortgage subsidy, Recapturing (Paying Back) a Federal Mortgage Subsidy Recapture of first-time homebuyer credit, Recapture of First-Time Homebuyer Credit Recording fees, Settlement fees or closing costs. State 1040ez tax form Recordkeeping, Adjusted Basis Reduced maximum exclusion, Reduced Maximum Exclusion Worksheet 3, Worksheet 3. State 1040ez tax form Reduced Maximum Exclusion Refinancing, Settlement fees or closing costs. State 1040ez tax form Relatives Sale of home to, Exception for sales to related persons. State 1040ez tax form Remainder interest Sale of, Sale of remainder interest. State 1040ez tax form Remodeling, Improvements. State 1040ez tax form , Exception. State 1040ez tax form (see also Improvements) Rental of home, Business Use or Rental of Home, Use test met for business part (with no business use in year of sale). State 1040ez tax form Before closing, by buyer, Settlement fees or closing costs. State 1040ez tax form Partial use, Property Used Partly for Business or Rental Repairs, Settlement fees or closing costs. State 1040ez tax form , Improvements. State 1040ez tax form , Repairs. State 1040ez tax form (see also Improvements) Reporting the sale, Reporting the Sale, Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home—Illustrated Example 3 for Emily White Repossession, Foreclosure or repossession. State 1040ez tax form Right-of-ways, Decreases to Basis S Safe harbors Distance safe harbor, Distance safe harbor. State 1040ez tax form Doctor's recommendation for sale, Doctor's recommendation safe harbor. State 1040ez tax form Unforeseeable events, Specific event safe harbors. State 1040ez tax form Sales commissions, Selling expenses. State 1040ez tax form , Settlement fees or closing costs. State 1040ez tax form Sales to related persons, Exception for sales to related persons. State 1040ez tax form Self-employed persons Change in status causing inability to pay basic expenses, Specific event safe harbors. State 1040ez tax form Seller-financed mortgages, Seller-financed mortgage. State 1040ez tax form Seller-paid points, Seller-paid points. State 1040ez tax form Selling expenses, Selling expenses. State 1040ez tax form Selling price, Selling Price Separate returns, Separate returns. State 1040ez tax form Settlement fees, Settlement fees or closing costs. State 1040ez tax form Spouse Death of (see Surviving spouse) Divorce, transfers subsequent to (see Divorce) Survey fees, Settlement fees or closing costs. State 1040ez tax form Surviving spouse Basis determination, Surviving spouse. State 1040ez tax form Ownership and use tests, Sale of main home by surviving spouse. State 1040ez tax form T Tax help, How To Get Tax Help Temporary absence, Temporary absence. State 1040ez tax form Temporary housing, Temporary housing. State 1040ez tax form Title insurance, Settlement fees or closing costs. State 1040ez tax form Title search fees, Settlement fees or closing costs. State 1040ez tax form Trading homes, Trading (exchanging) homes. State 1040ez tax form , Home received as trade. State 1040ez tax form Transfer taxes, Settlement fees or closing costs. State 1040ez tax form , Transfer taxes. State 1040ez tax form Transfer to spouse, Transfer to spouse. State 1040ez tax form After July 18, 1984, Transfers after July 18, 1984. State 1040ez tax form Before July 19, 1984, Transfers before July 19, 1984. State 1040ez tax form TTY/TDD information, How To Get Tax Help U Unemployment, Specific event safe harbors. State 1040ez tax form Unforeseen circumstances, Unforeseen Circumstances Uniformed services (see Armed forces) Use tests, Ownership and Use Tests, Ownership and use tests met at different times. State 1040ez tax form Utilities Charges for installing, Settlement fees or closing costs. State 1040ez tax form Charges related to occupancy of house before closing, Settlement fees or closing costs. State 1040ez tax form Energy conservation subsidy, Decreases to Basis Meter and connection charges for construction, Construction. State 1040ez tax form V Vacant land Sale of, Vacant land. State 1040ez tax form W Worksheets, Worksheets. State 1040ez tax form Adjusted basis (Worksheet 1), Determining Basis, Worksheet 1. State 1040ez tax form Adjusted Basis of Home Sold—Illustrated Example 1 for Peter and Betty Clark, Worksheet 1. State 1040ez tax form Adjusted Basis of Home Sold—Illustrated Example 3 for Emily White, Worksheet 1 Instructions. State 1040ez tax form Adjusted Basis of Home Sold Gain (or loss), exclusion, and taxable gain (Worksheet 2), Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home—Completed Example 1 for Amy, Worksheet 1. State 1040ez tax form Adjusted Basis of Home Sold—Illustrated Example 1 for Peter and Betty Clark, Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home—Illustrated Example 2 for Peter and Betty Clark, Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home—Illustrated Example 3 for Emily White, Worksheet 2. State 1040ez tax form Taxable Gain on Sale of Home Recordkeeping and, Adjusted Basis Reduced maximum exclusion (Worksheet 3), Worksheet 3. State 1040ez tax form Reduced Maximum Exclusion Prev  Up     Home   More Online Publications