| Publication 17 |
2003 Tax Year |
Index
This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
A
- Abandonment of home, Abandonment.
- Abortion:
-
- Deductibility as medical expense,
- Abroad, citizens traveling or working (see Citizens outside U.S.) (see Foreign employment)
- Academic period (see name of benefit)
- Accelerated Cost Recovery System (ACRS):
-
- Rental property, Depreciation Methods
- Rental property:
-
- Alternative minimum tax, Alternative minimum tax.
- Accelerated death benefits, Accelerated Death Benefits, Accelerated Death Benefits, Exclusion for terminal illness.
- Accident insurance:, Accident or Health Plan
-
- Cafeteria plans, Cafeteria plans.
- Long-term care, Long-term care coverage., Long-Term Care
Insurance Contracts
- Accidental death benefits, Accidental death benefits.
- Accidents, car:, Deductible losses.
-
- Value determination, Car value.
- Willful negligence or intentional act as cause, Nondeductible losses.
- Accountable plans for employee reimbursements, Related to employer., Accountable Plans
- Accountants:
-
- Basis to include fees of, Cost Basis
- CPA review courses, Bar or CPA Review Course
- Preparers of tax returns, Paid Preparer
- Accounting methods, Accounting Methods
-
- Accrual method (see Accrual method taxpayers)
- Cash method (see Cash method taxpayers)
- Accounting methods:
-
- Change of:
-
- Depreciation, to deduct unclaimed amount, Changing your accounting method to deduct unclaimed depreciation.
- Accounting periods, Accounting Periods
- Accounting periods:
-
- Calendar year, When Do I
Have To File?, Accounting Periods, Accounting period.
- Change in, standard deduction not allowed, Persons not eligible for the standard deduction.
- Fiscal year, Accounting Periods, Fiscal year taxpayers., Fiscal Years
- Fringe benefits, Accounting period.
- Accrual method taxpayers, Accrual method.
- Accrual method taxpayers:
-
- Deceased taxpayer, Accrual method.
- Taxes paid during tax year, deduction of, The tax must be paid during your tax year.
- Accumulation distribution of trusts:
-
- Tax on, Other taxes.
- Accuracy-related penalties, Accuracy-related penalty.
- ACRS (Accelerated Cost Recovery System):
-
- Rental property, Depreciation Methods
- Rental property:
-
- Alternative minimum tax, Alternative minimum tax.
- Activities not for profit, Activity not for profit.
- Address:
-
- Change of, Change of Address
- Correcting label, Correcting the label.
- Foreign, Foreign address.
- Label, Peel-Off Address Label
- No label received, No label.
- P.O. box, P.O. box.
- Service Centers, Mailing your return.
- Adjusted basis
-
- Home sale (see Sale of home)
- Adjusted basis:, Adjusted Basis, Postponed gain from sale of home.
-
- Clean-fuel vehicle and refueling property, Deduction for clean-fuel vehicle and refueling property.
- Decreases to basis, Decreases to Basis
- Depreciation, Depreciation and section 179 deduction.
- Easements, Easements.
- Electric vehicle credit, Credit for qualified electric vehicles.
- Energy conservation subsidies exclusion, Exclusion of subsidies for energy conservation measures.
- Examples (Table 14–1),
- Gifts, Property Received as a Gift
- Improvements, Improvements.
- Increases to basis, Increases to Basis
- Local assessments, Assessments for local improvements.
- Sales of property, Adjusted basis.
- Section 179 deduction, Depreciation and section 179 deduction.
- Adjusted gross income (AGI), Standard Deduction
-
- (see also Deductions)
- Modified (see Modified adjusted gross income (MAGI))
- Adjusted gross income (AGI):, Education-
Related
Adjustments
-
- (see also Deductions)
- Business expenses, limit on deduction, 3. Limit on total itemized deductions.
- Charitable contribution deduction limit, 50% Limit, 30% Limit
- Form 1040, 1040A or 1040EZ, Adjusted gross income (AGI).
- Itemized deduction limit, Important Changes
- Medical and dental expenses and limit of deduction, How Much of the Expenses Can You Deduct?, What Tax Form Do You Use?
- Retirement savings contribution credit, Special Rules, Adjusted gross income (AGI).
- Adjustments, Adjustments and tax preference items.
- Administrators, estate (see Executors and administrators)
- Adopted child
-
- Earned Income Credit, Adopted child.
- Adoption
-
- ATIN, Adoption taxpayer identification number (ATIN).
- Taxpayer identification numbers (TINs):, Adoption taxpayer identification number (ATIN).
- Adoption:
-
- Child tax credit, Adopted child.
-
- (see also Child tax credit)
- Credit, Personal Expenses
- Credits, You can use Form 1040A if all of the following apply., Important Changes for 2003, Adoption Credit
- Credits:
-
- Claiming, When to claim the credit.
- Married filing separately, Special Rules
- Employer assistance, Adoption Assistance
- Exemption for child, Personal Expenses
- Expenses not deductible:
-
- Foster care prior to, no charitable deduction, Foster parents.
- No charitable deduction for, Personal Expenses
- Foreign child, Foreign child.
- Medical and dental expenses of adopted child, Adopted child.
- Member of household test, Adoption.
- Special needs child, Important Changes for 2003, Child with special needs.
- Tax benefits as adjustment to basis, Important Changes for 2003, Decreases to Basis
- Taxpayer identification number, Adoption taxpayer identification number (ATIN)., Taxpayer identification numbers for aliens.
- Advance earned income credit, Important Reminders, You can use Form 1040EZ if all of the following apply., Advance Earned Income Credit
- Advance earned income credit:
-
- Filing requirements (Table 1–3),
- Age
-
- Children's investments (see Children, subheading: Investment income of child under age 14)
- Age 50 or older, Important Reminders
- Age:
-
- Form 1040EZ, taxpayer under 65 may use, You can use Form 1040EZ if all of the following apply.
- Gross income and filing requirements (Table 1–1),
- IRAs:
-
- Contribution cutoff at age 70½, Age 70½ rule.
- Distribution prior to age 59½, Age 59½ rule.
- Distribution required at age 70½, IRA owners., Excess Accumulations
(Insufficient Distributions)
- Pension distributions required at age 70½, Age 70½.
- Retirement plan recipients over age 75, Who must use the General Rule.
- Roth IRAs, Is there an age limit for contributions?, Must you withdraw or use Roth IRA assets?
- Standard deduction for age 65 or older, Higher Standard Deduction
for Age (65 or Older)
- Standard deduction for age 65 or older:
-
- Chart for filing status (Table 22–2),
- Agents, Losses on sales or trades of property.
-
- (see also Fiduciaries)
- Agents:
-
- Income paid to, Payment to an agent.
- Signing return, When someone can sign for you.
- AGI (see Adjusted gross income (AGI))
- Agricultural workers (see Farmworkers)
- Agriculture (see Farming)
- Aircraft:
-
- Charitable gift of, deduction for fair market value, Cars, boats, and aircraft.
- Airline club dues:
-
- Not entertainment expenses, Club dues and membership fees.
- Airport transportation:
-
- Business-related travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Alaska Permanent Fund dividends, Alaska Permanent Fund dividend.
- Alaska Permanent Fund dividends:
-
- Child's dividends, Child's Alaska Permanent Fund dividends.
- Income from, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply., Alaska Permanent Fund dividends.
- Investment income not to include, Investment income.
- Alaska:
-
- Standard meal allowance, Standard meal allowance for areas outside the continental United States.
- State benefits to certain residents, Alaska residents.
- Alcohol rehabilitation centers:
-
- Deductibility of medical expense,
- Alcoholic beverages:
-
- IRA prohibited transactions in, Collectibles.
- Aliens, Individual taxpayer identification number (ITIN) for aliens.
-
- Dual-status (see Dual-status taxpayers)
- Nonresident (see Nonresident aliens)
- Resident (see Resident aliens)
- Aliens:
-
- Filing required, Aliens
- Alimony:, Alimony, Deducting the recapture.
-
- Death of recipient spouse, Liability for payments after death of recipient spouse.
- Decrease in amount and recapture rule, Recapture Rule
- Deduction, How To Deduct Alimony Paid
- Deduction:
-
- Difference from one year to another of more than $15,000, Recapture Rule
- Definition of, Introduction
- Form 1040 to be used:
-
- Deduction for amount paid, How To Deduct Alimony Paid
- Income received, reporting of, How To Report Alimony Received
- Recapture, Including the recapture in income., Deducting the recapture.
- Instruments executed after 1984, Instruments
Executed After 1984
- Instruments executed after 1984:
-
- Alimony requirements (Table 20–1),
- Instruments executed before 1985, Exception for instruments executed before 1985.
- Joint return of spouses not allowed, Alimony requirements.
- Jointly owned home, Payments for jointly-owned home.
- Jointly owned home:
-
- Separate residences in, Spouses cannot be members of the same household.
- Taxes and insurance premiums, Taxes and insurance.
- Life insurance premiums, Life insurance premiums.
- Mortgage payments, Mortgage payments.
- Mortgage payments:
-
- Interest deduction, Divorced or separated individuals.
- Payment to be in cash, Payment must be in cash.
- Payments designated as not alimony, Payments designated as not alimony.
- Payments not included as, Payments not alimony.
- Payments to third party, Payments to a third party., Other payments to a third party., Payments to a third party.
- Penalty for failure to provide social security number of recipient, How To Deduct Alimony Paid, How To Report Alimony Received
- Recapture rule, Recapture Rule
- Recipient reporting of, How To Report Alimony Received
- Reporting of income, Introduction, Alimony., How To Report Alimony Received
- Social Security Number of recipient required for deduction, How To Deduct Alimony Paid, How To Report Alimony Received
- Spouse defined for purposes of, Spouse or former spouse.
- Spouses not to be members of same household, Spouses cannot be members of the same household.
- Substitute payments, Substitute payments.
- Taxes and insurance paid on home owned as tenants in common, Taxes and insurance.
- Termination of and recapture rule, Recapture Rule
- Alternative filing methods
-
- Electronic (see E-file)
- Alternative minimum tax (AMT):, Alternative
Minimum Tax
-
- Accelerated depreciation and, Alternative minimum tax.
- Child's tax, figuring of, Alternative minimum tax.
- Credit for prior year tax, Credit for Prior Year Minimum Tax
- Credit for prior year tax:
-
- How to claim, How to claim the credit.
- Exempt-interest dividends, Alternative minimum tax treatment.
- Filing requirements (Table 1–3),
- Payments, You can use Form 1040A if all of the following apply.
- Amateur sports organizations:
-
- Charitable contributions to, Types of Qualified Organizations
- Ambulance service personnel:
-
- Life insurance proceeds when death in line of duty, Important Reminders, Public safety officer killed in the line of duty.
- Amended returns, Amended Returns and
Claims for Refund, Form 1040X., Filing Form 1040X.
-
- (see also Form 1040X)
- Amended returns:
-
- Itemized deduction, change to standard deduction, Changing your mind.
- Standard deduction, change to itemized deductions, Changing your mind.
- American citizens abroad (see Citizens outside U.S.)
-
- Employment (see Foreign employment)
- American Indians (see Indians)
- American Samoa:
-
- Income from, Individuals With Income From
U.S. Possessions
- Amortization:
-
- Adjustment to basis for, Decreases to Basis
- Bond premiums, treatment of, Amortization of bond premium.
- AMT (see Alternative minimum tax (AMT))
- Annuities:, Rollovers
-
- (see also Rollovers)
- Cost computation, Cost (Investment in the Contract)
- Credit for elderly or disabled persons, Credit for the elderly or the disabled.
- Decedent's unrecovered investment in, Form W–2.
- Early distributions from,
- Early distributions from:
-
- Deferred annuity contracts, 5% rate on certain early distributions from deferred annuity contracts., Additional exceptions for nonqualified annuity contracts.
- Estimated tax, Withholding and estimated tax.
- Exclusion limit, Exclusion limit.
- Form 1099–R, The 1099 Series
- General Rule:
-
- Annuity starting before November 19, 1996, Annuity starting before November 19, 1996.
- Nonqualified plans and qualified plans for recipients over 75 years, Who must use the General Rule.
- Purchased annuities, Purchased Annuities
- Survivor's annuity, Survivors
- Guaranteed payments, Guaranteed payments.
- IRAs as, Kinds of traditional IRAs.
- Joint return, Joint return.
- Joint return:
-
- Worksheet,
- Loans from plan, Loans.
- Lump-sum distributions, Lump-Sum Distributions
- Multiple plan benefits, More than one program., More than one annuity.
- Partly taxable payments, Partly taxable payments.
- Purchased annuities, Purchased Annuities
- Reporting of, How To Report
- Retirement annuities, Retirement Plans, Pensions, and Annuities
-
- (see also Retirement plans)
- Rollovers, Rollovers
- Sale of, Sale of Annuity
- Sale of:
-
- Gain as ordinary income, Sale of annuity.
- Simplified method to calculate tax-free part of annuity payment, Simplified Method
- Simplified method to calculate tax-free part of annuity payment:
-
- Survivor's annuity, Survivors
- Worksheet for computation, How to use it.
- Survivor annuities, Survivors
- Trade of insurance policies and annuities, Insurance policies and annuities.
- Unrecovered investment, Unrecovered Investment
in Annuity
- Withholding, Form W–2., Pensions and Annuities, Withholding and estimated tax.
- Annulled marriages:
-
- Filing status, Annulled marriages.
- Anthrax incidents (see Terrorist attacks)
- Antiques (see Collectibles)
- Appliances:
-
- Deterioration and damage, not casualty loss, Progressive deterioration.
- Appraisal fees, Appraisal Fees
- Appraisal fees:
-
- Donated property, Appraisal Fees
- Not deductible as interest, Amounts charged for services.
- Real estate transactions, when required by lender, Settlement costs.
- Appraisals:
-
- Casualty or theft losses, Appraisal., Costs of photographs and appraisals.
- Archer MSAs, Archer MSA, Archer MSA., Medical savings accounts (MSAs).
- Archer MSAs:
-
- Contributions, Archer MSA contributions.
- Filing requirements (Table 1–3),
- Medical expenses paid for decedent from, Decedent
- Not deductible as medical expense,
- Armed forces, Types of Qualified Organizations,
-
- (see also Veterans' organizations)
- Armed forces:, Veterans' benefits., Armed Forces reservists.
-
- (see also Reservists)
- (see also Veterans' benefits)
- Combat zone:
-
- Extension to file return, Individuals Serving in
Combat Zone
- Signing return for spouse, Spouse in combat zone.
- Dependency allotments, Armed Forces dependency allotments.
- Disability pay, Disability.
- Disability pensions, Military and Government
Disability Pensions
- Military, Military uniforms.
- Military quarters allotments, Tax-exempt military quarters allowances.
- Moving expenses deduction, Members of the Armed Forces
- Naval officers on permanent duty aboard ship, Members of the Armed Forces.
- Permanent duty overseas, Members of the Armed Forces.
- Real estate taxes when receiving housing allowance, Minister's and military personnel housing allowances., Ministers' and military housing allowance.
- Rehabilitative program payments, Rehabilitative program payments.
- Reserves, Important Changes, Armed Forces reservists traveling more than 100 miles from home.
- Retirees' pay:
-
- Taxable income, Military retirement pay.
- Withholding, Military retirees.
- Tuition payments and allowances under GI Bill, Tuition payments and allowances under the GI Bill.
- Uniforms:, Military uniforms.
- Wages, Military
- Art works:
-
- As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc.
- Capital gains or losses from sale or trade of, Collectibles gain or loss.
- Artists, performing, Performing artists. (see Performing artists)
- Assessments, local (see Local assessments)
- Assistance, tax (see Tax help)
- Assumption of mortgage:, Assumption of mortgage.
-
- Fees not included in basis, Settlement costs.
- At-risk rules:
-
- Rental property, Limits on
Rental Losses, At-Risk Rules
- ATAA workers, health coverage tax credit, ATAA workers.
- Athletic events:
-
- Charitable contributions, amount deductible, Athletic events.
- ATINs (Adoption taxpayer identification numbers), Adoption taxpayer identification number (ATIN).
- Attachment, Garnisheed wages.
- Attachments to return, Attachments
- Attorneys' fees:, Legal Expenses, Personal Legal Expenses
-
- Basis to include, Cost Basis
- Social security and railroad retirement benefits, deductions for, Legal expenses.
- Title to property, for preparation, filing, etc., Settlement costs.
- Attorneys:
-
- Bar review courses, Bar or CPA Review Course
- Audits:
-
- Travel expense records, If your return is examined.
- Auto insurance:
-
- Medical expenses covered by, not deductible,
- Automatic extension of time to file, Automatic Extension, When to file.
- Automatic extension of time to file:
-
- Form 4868, E-file options.
- Automatic investment services:
-
- Holding period, determination of, Automatic investment service.
- Automobiles (see Cars)
- Awards (see Prizes and awards)
- Away-from-home travel (see Travel and transportation expenses)
B
- Baby-sitting, Baby-sitting.
-
- (see also Domestic help)
- Baby-sitting:, Baby-sitting.
- Back pay, award for, Back pay awards.
- Back pay, award for:
-
- Emotional distress damages under Title VII of Civil Rights Act of 1964, Court awards and damages.
- Backup withholding, Backup withholding.
- Backup withholding:, Backup Withholding, Backup withholding.
-
- Dividend income, Backup withholding., Reporting tax withheld.
- Penalties, Penalties.
- Bad debts:
-
- Bank deposit, loss due to bank's insolvency or bankruptcy, Nonbusiness bad debt., Nonbusiness bad debt.
- Bank deposit, loss due to bank's insolvency or bankruptcy:
-
- Reporting on Schedule D (Form 1040), How to report.
- Claim for refund, Exceptions for special types of refunds., Filing a claim for refund.
- Nonbusiness, Nonbusiness Bad Debts
- Recovery, Recoveries
- Reporting of, How to report bad debts.
- Short-term capital loss, How to report bad debts.
- Baggage:
-
- Business-related travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Balance due, Refund or balance due.
- Bankruptcy:
-
- Canceled debt not deemed to be income, Excluded debt.
- Financial institution's bankruptcy causing deductible loss, Loss on Deposits
- Financial institution's bankruptcy causing deductible loss:
-
- Reporting of, Loss on deposits.
- Banks:
-
- Automatic investment service, determination of holding period, Automatic investment service.
- IRAs with, When and How Can a Traditional IRA Be Set Up?
- Losses on deposits, when casualty losses, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits
- Losses on deposits, when casualty losses:
-
- Reporting of, Loss on deposits.
- Money market accounts, Money Market Funds
- Bar associations:
-
- Charitable contributions to, Contributions To Nonqualified Organizations
- Bar employees
-
- Tips (see Tip income)
- Bar review courses, Bar or CPA Review Course
- Bargain sales:
-
- As charitable contributions, Bargain sales.
- Basis of purchase, Bargain purchases.
- Barter income:, Bartering
-
- Definition of bartering, Bartering
- Form 1099–B, The 1099 Series, Form 1099–B from barter exchange.
- Basis
-
- Home sales (see Sale of home)
- Basis:
-
- Adjusted basis, Adjusted Basis
- Allocation between business and personal use, Introduction
- Bad debts, Basis in bad debt required.
- Bargain purchases, Bargain purchases.
- Bonds, Stocks and Bonds, Bond premium.
- Bonds:
-
- Tax-exempt obligations, Tax-exempt bonds.
- Cost basis, Useful Items - You may want to see:
- Cost basis:
-
- IRAs for nondeductible contributions, Cost basis., Partly taxable.
- Definition of, Introduction
- Gifts, Property Received as a Gift
- Improvements to real estate, Improvements.
- Inheritance, Inherited Property
- Involuntary conversion, Involuntary Conversions
- Like-kind exchanges, Basis of property received.
- Nontaxable corporate distributions, Decreases to Basis
- Other than cost, Basis Other Than Cost, Tax-exempt bonds., No gain or loss.
- Points not to be included, Settlement costs., Points.
- Property received for services, Property Received for Services
- Real estate, Real Property
- Restricted property, Restricted property.
- Stock or stock rights, Basis.
- Transfers between spouses, Property Transferred
From a Spouse, Transfers Between Spouses
- Beetles:
-
- Damage or destruction to trees and plants, when casualty loss, Progressive deterioration.
- Beneficiaries (see Estate beneficiaries) (see Trust beneficiaries)
- Bequests (see Estate beneficiaries) (see Gifts) (see Inheritance)
- Bingo, , Contributions From
Which You Benefit
- Birth control pills,
- Birth of child:
-
- Dependent exemption for, Child born alive., Death or birth.
- Head of household, qualifying person to file as, Death or birth., Death or birth.
- Social Security Number to be obtained, Born and died in 2003.
- Blackmail:
-
- Losses due to, Theft
- Blind persons:
-
- Exemption from withholding, Age 65 or older or blind.
- Guide dogs, deductible as medical expense,
- Impairment-related work expenses, deduction for, Impairment-Related
Work Expenses
(Business or Medical)
- Standard deduction for, Introduction, Higher Standard Deduction
for Blindness
- Blood banks:
-
- No charitable deduction for blood donations to, , Value of Time or Services
- Blue books to determine fair market value, Cars, boats, and aircraft., Car value.
- Boarding houses, Dwelling unit.
- Boats:
-
- Charitable gift of, deduction for fair market value, Cars, boats, and aircraft.
- Bona fide business purpose:
-
- Travel expenses, Bona fide business purpose.
- Work-related education, Qualifying Work-Related Education
- Bonds:
-
- Adjusted basis for, Stocks and Bonds
- Adjusted basis for:
-
- Tax-exempt obligations, Tax-exempt bonds.
- Amortization of premium, Amortization of bond premium., Amortizable Premium
on Taxable Bonds
- As capital assets, Capital Assets and Noncapital Assets, Stocks, stock rights, and bonds.
- Convertible bonds, Convertible stocks and bonds.
- Discounted, The 1099 Series
-
- (see also Original issue discount (OID))
- Capital gain or loss, Discounted Debt Instruments
- Issued at discount, Original Issue
Discount (OID)
- Market discount bonds, Market discount bonds.
- Original issue discount, Original Issue
Discount (OID)
- Redemption of, Redemption or retirement of bonds.
- Retirement of, Retirement bonds., Redemption or retirement of bonds.
- Sale of, Bonds Sold Between
Interest Dates
- Savings, U.S. Savings Bonds, Series HH Bonds., Series EE and series I bonds.
- Sold at premium, computation of adjusted basis, Bond premium.
- State or local government, tax-exempt, Tax-exempt state and local government bonds.
- Tax-exempt, State or Local
Government Obligations
- Bonuses, Supplemental Wages, Bonuses and awards., Employee awards or bonuses.
- Bookkeeping (see Recordkeeping requirements)
- Borrowed funds, Loans., Items You
Cannot Deduct
-
- (see also Loans)
- Borrowed funds:
-
- Used for charitable contributions, deduction for, Borrowed funds.
- Bottled water,
- Boy Scouts:
-
- Charitable contributions to, Examples.,
- Breach of contract
-
- employment, Damages for Breach
of Employment Contract
- Breach of contract:
-
- Damages as income, Court awards and damages.
- Bribes and illegal payments, List of Nondeductible Expenses
- Brokers, Brokerage and other accounts.
- Brokers:
-
- Form 1099–B, The 1099 Series, Sales and Trades
- IRAs with:, When and How Can a Traditional IRA Be Set Up?
- IRAs with::
-
- Commissions, Brokers' commissions., Brokers' commissions.
- Receiving dividends, reporting on Form 1099–MISC, Form 1099–MISC.
- Burglary:
-
- Losses due to, Theft
- Burial expenses, List of Nondeductible Expenses (see Funerals)
- Business associates, Meals and Incidental Expenses, Entertainment Expenses
-
- (see also Entertainment expenses)
- Business associates:
-
- Business travel to meet, Transportation Expenses
- Travel expenses of, paying for, Business associate.
- Business expenses:, Meals and Incidental Expenses, Entertainment Expenses
-
- (see also Entertainment expenses)
- Job search expenses, Job interview expenses.
- Meal expenses (see Meal and lodging expenses)
- Reimbursements, Expense allowances., Allowances and reimbursements.
- Reimbursements:
-
- Returning excess for business expenses, Expense allowances., Returning Excess Reimbursements
- Travel (see Travel and transportation expenses)
- Work-related education, Qualified Education Expenses
- Business organizations:
-
- Charitable contributions to, Contributions To Nonqualified Organizations
- Business property:
-
- As gift, adjusted basis for, Business property.
- Basis for depreciation, Basis for depreciation.
- Property use changed to, adjusted basis for, Property Changed to Business or Rental Use
- Sales or exchanges, Sales not discussed in this chapter.
- Sales or exchanges:
-
- Like-kind exchanges, Like-kind exchanges.
- Business tax credits:
-
- Claim for refund, Exceptions for special types of refunds.
- Business use of home, Home Office
C
- Cafeteria plans, Cafeteria plans.
- Calendar year taxpayers:
-
- Accounting periods, When Do I
Have To File?, Accounting Periods, Accounting period.
- Filing due date, When Do I
Have To File?
- California Nonoccupational Disability Benefit Fund, Contributions to state benefit funds.
- Campaign contributions, Campaign contributions., , Contributions To Nonqualified Organizations
- Campaign contributions:
-
- Presidential Election Campaign Fund, Presidential Election
Campaign Fund
- Campaign expenses, Campaign Expenses
- Canada:
-
- Contributions to charitable organizations in, Certain foreign charitable organizations., Contributions To Nonqualified Organizations
- Cancellation of debt:, Canceled Debts
-
- Adjustment to basis for, Decreases to Basis
- Exceptions to treatment as income, Exceptions
- Candidates for public office:
-
- Contributions to, no charitable deduction for, , Contributions To Nonqualified Organizations
- Capital assets:
-
- Coal and iron ore, Coal and iron ore.
- Definition of, Capital Assets and Noncapital Assets
- Capital gains :
-
- Total net gain, Total net gain or loss.
- Capital gains or losses:, Capital Gains
and Losses, How to report and postpone gain., Reporting Gains and Losses, Reconciliation of Forms 1099–B.
-
- 2003 change to rates, Important Changes for 2003, Important Change for 2003
- Bad debts as short-term capital loss, How to report bad debts.
- Carryover of, Long-term gains and losses., Capital loss carryover.
- Carryover of:
-
- Worksheet, Figuring your carryover.
- Character of gain, Character of gain or loss.
- Character of loss, Character of gain or loss.
- Child's distributions and dividends, reporting of, Child's capital gain distributions., Capital gain distributions and qualified dividends.
- Collectibles, Collectibles gain or loss.
- Decedent's deduction, Deduction for Losses
- Deductions, Capital Losses
- Deductions:
-
- Limit on, Limit on deduction.
- Married filing separately, Special Rules
- Distributions, Capital Gain Distributions
- Form 1040 or 1040A to be used, You can use Form 1040A if all of the following apply., How To Report Dividend Income, Capital gain distributions only.
- Hobbies, sales from collections, Hobby losses.
- Holding period, determination of, Holding Period
- Installment sales and, Installment sales.
- Lump-sum distributions from pensions and annuities, Capital Gain Treatment
- Mutual funds paying, Capital Gain Distributions
- Net capital gain, Character of gain or loss., Long-term gains and losses.,
Capital Gain Tax Rates
- Net capital gain:
-
- Included as investment income, Choosing to include net capital gain.
- Net long-term capital loss, Long-term gains and losses.
- Sale of personal items, Sale of personal items.
- Sale or trade of property held more than 1 year, Long term or short term., Long-term gains and losses.
- Sale or trade of property held more than 5 years, Character of gain or loss., Qualified 5-year gain.
- Schedule D, Schedule D, Using Schedule D.
- Section 1250 gains from sale of real property, Character of gain or loss., Unrecaptured section 1250 gain.
- State or local government bonds, tax-exempt, Tax-exempt state and local government bonds.
- Tax rates,
Capital Gain Tax Rates
- Tax rates:
-
- 18% rate beginning in 2006, Important Change for 2003
- Dividends using, Important Changes for 2003
- Maximum capital gain rates (Table 17–1),
- Total net loss, Total net gain or loss.
- Undistributed gains, Long-term gains and losses.
- Undistributed gains:
-
- Credit for tax on, Undistributed capital gains of mutual funds and REITs., Credit for Tax on Undistributed Capital Gain
- Worksheet to figure tax, Using the Qualified Dividends and Capital Gain Tax Worksheet.
- Car pools, Car pools.
- Carrybacks:
-
- Business tax credit carrybacks, Exceptions for special types of refunds.
- Carryovers:
-
- Capital loss, Long-term gains and losses., Capital loss carryover.
- Capital loss:
-
- Worksheet, Figuring your carryover.
- Charitable contributions, when deduction exceeds adjusted-gross-income limits, Carryovers
- Investment interest, Limit on Deduction
- Cars, Transportation, Transporting school children., Moving Expenses
-
- (see also Moving expenses)
- (see also Travel and transportation)
- Electric vehicles (see Electric cars)
- Cars:, Car Expenses and Other Employee Business Expenses, Car Expenses
-
- (see also Standard mileage rates)
- Accidents resulting in casualty loss, Deductible losses.
- Accidents resulting in casualty loss:
-
- Value determination, Car value.
- Willful negligence or intentional act as cause, Nondeductible losses.
- Actual expenses, Car Expenses, Actual Car Expenses
- Advertising displays on, Advertising display on car.
- Allowances from employers, Per Diem and Car Allowances
- As capital assets, Capital Assets and Noncapital Assets
- Blue book to determine fair market value, Cars, boats, and aircraft., Car value.
- Business and personal use, allocation between, Business and personal use., Separating expenses.
- Business-related travel expenses, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Car pools, Car pools.
- Charitable gift of, deduction for fair market value, Cars, boats, and aircraft.
- Charitable organization service, use for, Car expenses., Car expenses.
- Depreciation, Important Changes, Depreciation and section 179 deductions.
- Employer-provided, Employer-Provided Vehicles
- Fixed and variable rate (FAVR), Fixed and variable rate (FAVR).
- Form 2106 or 2106–EZ, how to fill out, Car expenses.
- Hauling tools or instruments, Hauling tools or instruments.
- Interest on loans, not deductible, Personal Interest
- Leased vehicles, Leasing a car.
- Medical transportation, , Transportation, Car expenses.
- Parking (see Parking fees)
- Personal property taxes on, deduction of, Personal Property Taxes
- Reporting of, How To Report
- Reporting of:
-
- Table 29–3 showing forms to be used, Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Sale, trade-in, or other disposition, Sale, Trade-in, or Other Disposition
- Section 179 deductions, Depreciation and section 179 deductions.
- Work-related education, transportation for, Using your car.
- Cash method taxpayers, Cash method.
- Cash method taxpayers:
-
- Bad debts, Basis in bad debt required.
- Deceased taxpayer, Cash method.
- Points, deduction of, Exception.
- Real estate transactions, tax allocation, Buyers and sellers of real estate.
- Taxes paid during tax year, deduction of, The tax must be paid during your tax year.
- Worthless securities and negotiable promissory notes, Worthless securities.
- Cash rebates, Cash rebates.
- Cash:
-
- Dividends paid as, Introduction
- Rebates, Cash rebates.
- Sales of property for, Payment of cash.
- Casualties, Home destroyed or condemned.
- Casualty insurance:
-
- Reimbursements from, Casualty insurance and other reimbursements.
- Casualty losses, Certain Casualty and
Theft Losses, Certain Casualty and
Theft Losses
- Casualty losses:, Nonbusiness Casualty and Theft Losses, Net operating loss (NOL).
-
- Adjusted basis in property, Decreases to Basis, Casualties and thefts., Involuntary Conversions, Adjusted Basis, Adjustments to basis.
- Amount of loss, Amount of Loss
- Appraisals, Appraisal., Costs of photographs and appraisals.
- Bank deposit, loss due to bank's insolvency or bankruptcy, Ordinary loss or casualty loss., Casualty loss or ordinary loss.
- Costs:
-
- Cleaning up or making repairs, Cost of cleaning up or making repairs.
- Photographs and appraisals, Costs of photographs and appraisals.
- Deductible losses, Deductible losses.
- Deductible losses:
-
- $100 rule, $100 Rule
- When to take (Table 28–2),
- Deduction limits, Deduction Limits
- Deduction limits:
-
- For personal property (Table 28–1),
- Definition of casualty, Casualty
- Disasters (see Disaster relief)
- Employer's emergency disaster fund, Employer's emergency disaster fund.
- Fair market value of property, Decrease in
Fair Market Value
- Form 4684 to be filed, Forms to file.
- Insurance proceeds, treatment of, Insurance and Other
Reimbursements
- Net operating losses, Net operating loss (NOL).
- Nondeductible losses, Deductible losses.
- Proof of loss, Casualty loss proof.
- Property used partly for business and partly for personal purposes, Property used partly for business and partly for personal purposes.
- Reimbursement, Insurance and Other
Reimbursements
- Reporting of gain or loss, When To Report
Gains and Losses, Casualty loss., How To Report
Gains and Losses
- Single casualty on multiple properties, Single Casualty on Multiple Properties
- Cellular telephone, Depreciation on Computers
or Cellular Telephones
- Cemeteries:
-
- Charitable contributions to, Types of Qualified Organizations
- Certificate, mortgage credit, Who qualifies.
- Certificates of deposit (CDs), Certificates of deposit (CDs)., Individual Retirement Arrangements (IRAs)
-
- (see also Individual retirement arrangements (IRAs))
- Chambers of commerce:
-
- Charitable contributions to, , Contributions To Nonqualified Organizations
- Entertainment expenses for attending meetings, Trade association meetings.
- Change of address, Change of Address
- Change of name, Name change., Name changed.
- Chaplains:
-
- Life insurance proceeds when death in line of duty, Important Reminders, Public safety officer killed in the line of duty.
- Charitable contributions:, Contributions, How To Report
-
- $250 or more, recordkeeping requirements, Contributions of $250 or More
- $500 or more noncash contribution:
-
- Form 8283 to be used, How To Report
- Bargain sales as, Bargain sales.
- Benefit received as result of contribution, Contributions From
Which You Benefit, Contributions From
Which You Benefit
- Capital gain property as donation, Capital gain property.
- Capital gain property as donation:
-
- Limit on deduction, 50% Limit, 30% Limit, 20% Limit
- Carryover of excess deduction, Carryovers
- Cash, recordkeeping requirements, Cash Contributions
- Deductions:
-
- 30% limit of adjusted gross income, 30% Limit
- 50% limit of adjusted gross income, 50% Limit
- Examples of (Table 27–1),
- Limits on, Contributions
You Can Deduct, Limits on Deductions
- Year to claim deduction, When To Deduct
- Definition of, Introduction
- Dwelling unit used as home, Donation of use of property.
- Fair market value of property contributions, Contributions
You Can Deduct, Determining
Fair Market Value, Amount of deduction — general rule.
- Fair market value of property contributions:
-
- Recordkeeping requirements, Additional records.
- Gifts to reduce public debt, Gift To Reduce the
Public Debt
- Itemized deductions, limit on, Important Reminders
- Large quantities of items, Large quantities.
- Less than $250, recordkeeping requirements, Contributions of Less Than $250
- Noncash contributions, recordkeeping requirements, Noncash Contributions
- Nonqualified organizations, Contributions To Nonqualified Organizations
- Not deductible, Contributions
You Cannot Deduct
- Ordinary income property as donation, Ordinary income property.
- Payment partly for goods or services, Important Reminders
- Property contributions, Contributions
of Property
- Property contributions:
-
- Decreased in value, Giving Property That
Has Decreased in Value
- Increased in value, Giving Property That
Has Increased in Value
- Publication 78, list of qualified organizations, Organizations That Qualify To Receive Deductible Contributions
- Qualified organizations, Organizations That Qualify To Receive Deductible Contributions
- Qualified organizations:
-
- Types of, Types of Qualified Organizations
- Written statement from, Written statement.
- Recordkeeping requirements, Records To Keep
- Schedule A (Form 1040) to be used for deductions, How To Report
- Time of making contribution, how to determine, Time of making contribution.
- To individuals, not deductible, , Contributions To Individuals
- Token items given by recipients, Token items.
- Volunteers, deductibility of contributions (Table 27–2),
- Written acknowledgment from recipient organization, Important Reminders, Records To Keep, Acknowledgment.
- Charitable deduction for living expenses, Student living with you.
- Charity benefit events:
-
- Deduction amount for charitable contributions, Charity benefit events.
- Check-writing fees, Check-Writing Fees
on Personal Account
- Checklists:
-
- Medical and dental expense deductions (Table 23–1), What Medical Expenses Are Includible?
- Checks:
-
- As charitable contributions, Checks.
- Canceled checks as evidence of travel expenses, Canceled check.
- Constructive receipt of, Check received or available.
- Payment of tax, Check or money order.
- Penalty if not honored, Payment not honored.
- Child and dependent care credit, You can use Form 1040A if all of the following apply.
-
- Due diligence, Due diligence.
- Earned income, Earned income.
- Full-time student, Full-time student.
- Keeping up a home test, Keeping Up a Home Test
- Payments to relatives, Payments to Relatives
- Child and dependent care credit:
-
- 2003 changes, Important Changes for 2003
- Married filing separately, Special Rules
- Child care
-
- Credit (see Child and dependent care credit)
- Employment taxes (see Domestic help)
- Child care:
-
- Baby-sitting, Baby-sitting.
- Care providers, Child care providers.
- Credit, Child and Dependent Care Credit
- Employer-provided, credit as adjustment to basis, Decreases to Basis
- Nursing care for healthy baby, not deductible as medical expense,
- Provider
-
- Taxpayer identification number, Provider
Identification Test
- Child custody:
-
- Support test for dependents, Custody.
- Child support, Child support payments.
- Child support:, Child support.
-
- Alimony, difference from, Payments not alimony., Alimony requirements., Child support.
- Home jointly owned, Home jointly owned.
- Paid in later year, Paid in a later year.
- Remarried parent, Remarried parent.
- Third party support, Third-party support.
- Child tax credit, Who Should File, You can use Form 1040A if all of the following apply.
- Child tax credit:, Important Reminders, Child Tax Credit, Checking Your Withholding
-
- Additional credit, Additional Child Tax Credit
- Amount of credit, Important Reminders, Amount of Credit
- Claiming, procedure for, Claiming the Credit
- Eligibility, Child tax credit.
- Form 8812, completed, How to claim the additional child tax credit.
- Limits, Special Rules, Limits on the Credit
- Limits:
-
- Modified adjusted gross income, Modified AGI.
- Married filing separately, Special Rules
- Qualifying child, Child tax credit., Qualifying Child
- Taxable earned income, Taxable earned income.
- Withholding, checking amount, Checking Your Withholding
- Children, Personal Expenses
-
- (see also Adoption)
- Credit for (see Child and dependent care credit) (see Child tax credit)
- Dividends of (see this heading: Investment income of child under age 14)
- Tax credit (see Child tax credit)
- Children:, Adoption., Adoption Assistance
-
- (see also Adoption)
- Additional credit on child tax credit, Additional Child Tax Credit
- Baby-sitters, Baby-sitting.
- Birth of child:
-
- Dependent exemption for, Child born alive., Death or birth.
- Head of household, qualifying person to file as, Death or birth., Death or birth.
- Social Security Number to be obtained, Born and died in 2003.
- Care providers, Child care providers., Decreases to Basis
-
- (see also Child care)
- Child's tax, figuring of, Step 3. Figuring
the Child's Tax
(Form 8615, Part III)
- Child's tax, figuring of:
-
- Alternative minimum tax, Alternative minimum tax.
- Custody of:
-
- Support test for dependents, Custody.
- Death of child:
-
- Head of household, qualifying person to file as, Death or birth., Death or birth.
- Deductions, Line 2 (deductions).
- Definition of, Child defined.
- Dependency exemption (see Dependents)
- Earnings of, Child's earnings.
- Election to use parent's return, effect of making, Effect of Making the Election
- Election to use parent's return, effect of making:
-
- Inclusion of child's income on parent's return (Figure 32–A), Effect of Making the Election
- Exemption for dependents (see Dependents)
- Filing requirements, Child's earnings.
- Filing requirements:
-
- As dependents (Table 1–2),
- Gifts to, Income from property given to a child., Income from property received as a gift.
- Income, calculation of, Figuring Child's Income
- Income, calculation of:
-
- Capital gains distributions, Capital gain distributions and qualified dividends.
- Investment income of child under age 14, Tax on investment income of a child under age 14., Tax on Investment Income of Certain Minor Children, Illustrated Example
- Investment income of child under age 14:
-
- Dependent filing requirements (Table 1–2),
- Form 8615, use of (Figure 32–B),
- General rules, Introduction
- Interest and dividends, Children Under Age 14, You can use Form 1040A if all of the following apply., Tax on investment income of a child under age 14.
- Investment income defined, Investment income defined.
- Parental information, providing of, Providing Parental Information
(Form 8615, lines A–C)
- Parents' election to report on Form 1040, Children Under Age 14, Investment income of child reported on parent's return., Which Parent's
Return To Use, Parent's Election
To Report Child's
Interest and Dividends
- Trust income, Trust income.
- Net investment income, figuring of, Step 1. Figuring the Child's Net Investment Income
(Form 8615, Part I)
- Nontaxable income, Nontaxable income.
- Property received as gift, income from, Income from property received as a gift.
- Signing return, parent for child, Spouse unable to sign.
- Standard deduction for, Introduction, Standard Deduction
for Dependents
- Stillborn child, Stillborn child.
- Support of (see Child support)
- Tentative tax figured at parent's tax rate, Step 2. Figuring
Tentative Tax at
the Parent's Tax Rate
(Form 8615, Part II)
- Transporting school children, Transporting school children.
- Chronic illness
-
- Accelerated payment of life insurance proceeds (see Accelerated death benefits)
- Long-term care (see Long-term care insurance contracts)
- Church employees:
-
- Filing requirements (Table 1–3),
- Churches, temples, etc.:
-
- Charitable contributions to, Examples.,
- Charitable contributions to:
-
- 50% limit on deduction, 50% limit organizations.
- Convention delegates, deduction of unreimbursed expenses, Conventions.
- Citizens outside U.S.
-
- Employment (see Foreign employment)
- Citizens outside U.S.:
-
- Business travel outside U.S., Travel Outside
the United States, Travel Primarily for Business, Travel Primarily for Personal Reasons
- Business travel outside U.S.:
-
- Self-employed persons, Exception 1 – No substantial control.
- Standard meal allowance, Standard meal allowance for areas outside the continental United States.
- Earned income exclusion, Important Reminders
- Extension of time to file, Individuals Outside the
United States
- Filing requirements, U.S. Citizens and Residents Living Outside the United States
- Moving expenses for move outside U.S., Moves to locations outside the United States.
- Withholding from IRA distributions, IRA distributions delivered outside the United States.
- Citizenship:
-
- Dependency exemption test, Citizen or Resident Test
- Civic associations:
-
- Charitable contributions to, Contributions To Nonqualified Organizations
- Contributions to, no charitable deduction for,
- Civil defense organizations:
-
- Charitable contributions to, Examples.
- Civil service retirement benefits, What is not covered in this chapter.
- Civil suits, Court awards and damages.
-
- (see also Damages from lawsuits)
- Civil tax penalties (see Penalties)
- Clean-fuel vehicles, Deduction for clean-fuel vehicle and refueling property.
- Clergy, Ministers.
- Clergy:
-
- Contributions that can be spent as individual wishes, not deductible charitable contribution, Contributions To Individuals
- Housing, Clergy
- Housing:
-
- Real estate taxes when receiving housing allowance, Minister's and military personnel housing allowances., Ministers' and military housing allowance.
- Life insurance proceeds when chaplain died in line of duty, Important Reminders, Public safety officer killed in the line of duty.
- Pensions, Pension.
- Special income rules, Clergy
- Clerical help, deductibility of, Clerical Help and Office Rent
- Clients, Meals and Incidental Expenses, Entertainment Expenses
-
- (see also Entertainment expenses)
- Clients:
-
- Business travel to meet, Transportation Expenses
- Travel expenses of, paying for, Business associate.
- Closing costs:
-
- Real property transactions, Settlement costs.
- Sale of home, Settlement fees or closing costs.
- Clothing, work, Work Clothes and Uniforms
- Clothing:
-
- Military, Military uniforms.
- Moth damage, not casualty loss, Progressive deterioration.
- Uniforms:
-
- Charitable organization requiring, deduction for cost and upkeep of, Uniforms.
- Used clothing, charitable deduction for fair market value, Used clothing and household goods.
- Club dues and membership fees:
-
- Entertainment expenses, Club dues and membership fees.
- Co-owners:
-
- Dwelling unit used as home by co-owner, rental income and expense allocation, Shared equity financing agreement.
- Coal and iron ore, Coal and iron ore.
- Coins (see Collectibles)
- Collectibles:
-
- As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc.
- Gains or losses from sale or trade of, Collectibles gain or loss.
- IRA investment in, Investment in Collectibles, Exception.
- Collective bargaining agreements, Union agreements.
- College professor:
-
- Research expenses, Research Expenses of
a College Professor
- Colleges and universities
-
- Education costs (see Qualified tuition programs) (see Tuition)
-
- Employer-provided educational assistance (see Educational assistance)
- Colleges and universities:
-
- Charitable contributions to, Examples.,
- Charitable contributions to:
-
- 50% limit on deduction, 50% limit organizations.
- Athletic events, amount deductible, Athletic events.
- Combat zone:
-
- Extension to file return, Individuals Serving in
Combat Zone
- Signing return for spouse, Spouse in combat zone.
- Comments:
-
- To IRS about this publication, Comments and suggestions.
- Commission drivers:
-
- Deduction of expenses, Statutory employees.
- Commissions, Supplemental Wages
- Commissions:
-
- Advance, Advance commissions and other earnings.
- IRAs with brokers, Brokers' commissions., Brokers' commissions.
- Property basis to include when buyer pays, Settlement costs.
- Sharing of (kickbacks), Kickbacks.
- Unearned, deduction for repayment of, Advance commissions and other earnings.
- Commodities:
-
- Derivative financial instruments, Capital Assets and Noncapital Assets
- Common law marriage, Considered married.
- Communist organizations:
-
- Charitable contributions to, Contributions To Nonqualified Organizations
- Community property, Community income., Community property.
- Community property:
-
- Alimony, difference from, Payments not alimony.
- IRAs, Community property laws.
- Married filing separately, Community property states.
- Medical and dental expenses, Community property states.
- Commuting expenses, Commuting expenses., Commuting Expenses
- Commuting expenses:
-
- Employer-provided commuter vehicle, Commuter highway vehicle.
- Compensation, Wages, Salaries, and Other Earnings
-
- (see also Wages and salaries)
- Compensation:
-
- Defined for IRA purposes, What is compensation?
- Defined for Roth IRA purposes, Compensation.
- Employee, Employee Compensation
- Miscellaneous compensation, Miscellaneous Compensation
- Nonemployee, Nonemployee compensation.
- Computation of tax, Computations
- Computation of tax:
-
- Equal amounts, Equal amounts.
- Negative amounts, Negative amounts.
- Rounding off dollars, Rounding off dollars.
- Computer, Depreciation on Computers
or Cellular Telephones
- Condemnation of property:, Home destroyed or condemned., Condemnations.
-
- Basis computation, Involuntary Conversions
- Disaster areas, government-ordered demolition of unsafe home, Deductible losses.
- Period of ownership and use, Previous home destroyed or condemned.
- Confidential information:
-
- Privacy Act and paperwork reduction information, Important Reminders
- Travel expenses and, Confidential information.
- Conservation:
-
- Charitable contribution to promote, recordkeeping requirement, Qualified Conservation Contribution
- Constructive receipt of income, Constructive receipt., Payment to an agent., Constructive receipt.
- Contributions, Gift To Reduce the
Public Debt, Donation of use of property., Campaign contributions., Contributions, , Contributions To Nonqualified Organizations
-
- (see also Campaign contributions)
- (see also Charitable contributions)
- Retirement (see specific type of plan)
- Contributions:, Contributions, How To Report
-
- Political, Political Contributions
- Controlled corporations:
-
- Nontaxable stock purchase of, Property for stock of a controlled corporation.
- Related party transactions, Losses on sales or trades of property.
- Conventions:
-
- Delegates:
-
- Deduction of unreimbursed expenses, Conventions.
- Travel expenses, Conventions
- Travel expenses, Conventions
- Work-related education, deduction of travel expenses for overseas conventions, Cruises and conventions.
- Conversion (see specific retirement or IRA plan)
- Convertible stocks and bonds, Convertible stocks and bonds.
- Cooperative housing:
-
- Depreciation deduction for rented unit, Cooperative apartments.
- Dwelling unit used as home, Introduction
- Mortgage interest statements, Mortgage Interest Statement
- Real estate taxes, deduction of, Tenant-shareholders in a cooperative housing corporation.
- Real estate taxes, deduction of:
-
- Taxes that are deductible (Table 25–1),
- Sale or trade of:
-
- Form 1099–S to report, Form 1099–S transactions.
- Period of ownership and use, Cooperative apartment.
- Cooperatives:
-
- Patronage dividends, Patronage dividends.
- Copyrights, Capital Assets and Noncapital Assets
- Copyrights:
-
- Infringement damages, Court awards and damages.
- Royalties, Royalties
- Corporations, S Corporation Income
-
- (see also S corporations)
- Corporations:
-
- Controlled corporations, Property for stock of a controlled corporation., Losses on sales or trades of property.
- Director fees as self-employment income, Corporate director.
- Reorganizations and nontaxable trade of stock, Corporate reorganizations.
- Corrections (see Errors)
- Cosmetic surgery:
-
- Not deductible as medical expense,
- Cosmetics:
-
- Not deductible as medical expense,
- Cost basis, Useful Items - You may want to see:
- Cost basis:
-
- IRAs for nondeductible contributions, Cost basis., Partly taxable.
- Cost-of-living allowances, Government cost-of-living allowances.
- Country clubs:
-
- Charitable contributions to, Contributions To Nonqualified Organizations
- Dues:
-
- Charitable deduction not allowed, , Membership fees or dues.
- Entertainment expense deduction not allowed, Club dues and membership fees.
- Coupon bonds, Coupon bonds.
- Court awards and damages (see Damages from lawsuits)
- Coverdell ESAs, Coverdell education savings account (ESA).
- Coverdell ESAs:
-
- Additional tax on, Other taxes.
- Filing requirements (Table 1–3),
- CPAs (see Accountants)
- Credit cards:
-
- Annual fees, not deductible, Items You
Cannot Deduct
- Benefits, taxability of insurance, Credit card insurance.
- Charitable contributions charged to, Credit card.
- Finance charges, not deductible, Personal Interest
- Payment of taxes, Important Reminders, E-file and pay by credit card., Credit card.
- Payment of taxes:
-
- Convenience fee of service providers, Credit card.
- Estimated tax, How To Pay Estimated Tax, Payment by Electronic Funds Withdrawal or Credit Card
- Installment agreements, Installment Agreement
- Credit for child and dependent care expenses, Credit for child and dependent care expenses., Credit for child and dependent care expenses.
- Credit for the elderly or the disabled, Credit for the elderly or the disabled., Credit for the elderly or the disabled.
-
- Nontaxable payments, Nontaxable payments.
- Credit reports:
-
- Costs not included in property basis, Settlement costs.
- Fees for, not deductible, Items You
Cannot Deduct
- Credits, You can use Form 1040A if all of the following apply.
-
- (see also Adoption)
- Child and dependent care (see Child and dependent care credit)
- Child tax (see Child tax credit)
- Earned income (see Earned Income Credit)
- Education (see Education credits)
- Health coverage tax (see Health coverage tax credit)
- Health insurance (see Health insurance credit)
- Credits:, Credits., Earned income credit., Credit for child and dependent care expenses., Credit for the elderly or the disabled., Earned income credit., Credit for child and dependent care expenses., Credit for the elderly or the disabled., Earned income credit.
-
- Alternative minimum tax, credit for prior year tax, Credit for Prior Year Minimum Tax
- Alternative minimum tax, credit for prior year tax:
-
- How to claim, How to claim the credit.
- Capital gains, undistributed, credit for tax on, Undistributed capital gains of mutual funds and REITs., Credit for Tax on Undistributed Capital Gain
- Changing claim, Amended Returns and
Claims for Refund
- Child and dependent care, Child and Dependent Care Credit
- Child tax (see Child tax credit)
- Decedent's return, Credits
- Earned income, Earned Income Credit (see Earned Income Credit)
- Electric vehicles (see Electric cars)
- Empowerment zone and renewal community employment credit, Credits.
- Excess withholding of social security and tier 1 railroad retirement tax (see Excess withholding credit)
- For the disabled, Credit for the Elderly or the Disabled
- For the elderly, Credit for the Elderly or the Disabled
- Foreign tax (see Foreign tax credit)
- Fuel from a nonconventional source, Credits.
- Health insurance (see Health coverage tax credit)
- Hope scholarship, Special Rules
- Lifetime learning (see Lifetime learning credit)
- Mortgage interest (see Mortgage interest credit)
- Nonrefundable credits, Nonrefundable credits.
- Other than those on Form 1040A, Form 1040 to be used, You must use Form 1040 if any of the following apply.
- Refundable, Refundable credits., Refundable Credits
- Retirement savings contribution (see Retirement savings contribution credit)
- Cremation:
-
- Not deductible as medical expense,
- Criminal prosecutions:
-
- Travel expenses for federal staff, Exception for federal crime investigations or prosecutions.
- Cruises:
-
- Travel expenses when incidental business activities, Trip Primarily for
Personal Reasons
- Custodial fees, Investment Fees and Expenses
- Custodial parent:
-
- Child and dependent care credit, Custodial parent.
- Customers, Meals and Incidental Expenses, Entertainment Expenses
-
- (see also Entertainment expenses)
- Customers:
-
- Business travel to meet, Transportation Expenses
- Travel expenses of, paying for, Business associate.
D
- Daily allowance (see Per diem)
- Damage to property (see Casualty losses)
-
- Disasters (see Disaster relief)
- Damages, Damages for Breach
of Employment Contract
- Damages from lawsuits, Court awards and damages.
- Damages from lawsuits:
-
- Medical expenses as part of settlement, Damages For Personal Injuries
- Dating your return, Signatures
- Day-care centers, Care outside your home. (see Child and dependent care credit)
- Daycare centers (see Child care)
- De minimis benefits, De Minimis (Minimal) Benefits
- Deadlines (see Due dates)
- Death (see Decedents)
- Death benefits:
-
- Accelerated, Accelerated Death Benefits, Accelerated Death Benefits, Exclusion for terminal illness.
- Life insurance proceeds (see Life insurance)
- Public safety officers who died or were killed in line of duty, tax exclusion, Important Reminders, Public safety officer killed in the line of duty.
- Debt instruments (see Bonds or Notes)
- Debts, Exceptions for special types of refunds., Recoveries
-
- (see also Bad debts)
- Canceled (see Cancellation of debt)
- Debts:
-
- Paid by another, Debts paid for you.
- Payoff of debt included in sales transaction, Debt paid off.
- Public, gifts to reduce, Gift To Reduce the
Public Debt
- Refund offset against, Offset against debts., Offset against debts.
- Deceased taxpayers (see Decedents)
- Decedents, Surviving Spouses,
Executors, Administrators,
and Legal Representatives
-
- (see also Executors and administrators)
- Funeral expenses (see Funerals)
- Decedents:, Decedents, Executor., Administrator., Personal representative., Filing the return., Joint return., Personal representative may revoke joint return election., Joint return by surviving spouse., Deductions in Respect
of the Decedent
-
- (see also Executors and administrators)
- (see also Joint returns)
- Accelerated death benefits, Accelerated Death Benefits
- Capital loss of, Decedent's capital loss.
- Deceased spouse, Surviving Spouses,
Executors, Administrators,
and Legal Representatives
- Deceased spouse:
-
- Personal exemption, Death of spouse.
- Deductions in respect of, Deductions in Respect
of the Decedent
- Dependent of survivor, Decedent as your dependent.
- Due dates, Filing for a decedent.
- Effect on tax liability of survivors, Tax Effect on Others
- Estate tax (see Estates)
- Filing requirements, Surviving Spouses,
Executors, Administrators,
and Legal Representatives
- Final return (see Final return for decedent)
- Funeral expenses (see Funerals)
- Income in respect of, Income in Respect
of the Decedent
- Medical and dental expenses, Decedent
- Moving expenses deduction for survivors of decedent working abroad, Survivors of decedents who were working abroad.
- Savings bonds, Decedents.
- Spouse's death, Spouse died., Spouse died during the year.
- Standard deduction, Decedent's final return.
- Transfer of property at death, Sales not discussed in this chapter.
- Deductions, Special Rules, Personal Exemptions and Dependents, Important Changes, Your Own Exemption, Phaseout of Exemptions, Expense allowances., Nonbusiness Bad Debts, How to report bad debts., Capital Losses
-
- (see also Bad debts)
- (see also Business expenses)
- (see also Capital losses)
- (see also Personal exemption)
- Casualty losses (see Capital losses)
- IRA contributions (see Individual retirement arrangements (IRAs))
- Itemizing (see Itemized deductions)
- Student loan interest deduction (see Student loans)
- Tuition and fees (see Tuition)
- Deductions:, Exemptions, Depreciation Methods, Recoveries, Standard Deduction, Taxes, Tests To Deduct
Any Tax, Real Estate Taxes, Points, Treatment by buyer., Meals and Incidental Expenses, Entertainment Expenses
-
- (see also Depreciation)
- (see also Entertainment expenses)
- (see also Personal exemption)
- (see also Points)
- (see also Real estate taxes)
- (see also Recovery of amounts previously deducted)
- (see also Standard deduction)
- (see also Taxes)
- Alimony, deductible by payer, Introduction, How To Deduct Alimony Paid
- Casualty losses, Certain Casualty and
Theft Losses
- Changing claim after filing, need to amend, Amended Returns and
Claims for Refund
- Charitable contributions, Contributions, How To Report
-
- (see also Charitable contributions)
- Clean-fuel vehicles, Deduction for clean-fuel vehicle and refueling property.
- Decedent, in respect of, Deductions in Respect
of the Decedent
- Dental expenses (see Medical and dental expenses)
- Depreciation, Depreciation and section 179 deduction.
- Disaster relief contributions to qualified organizations, Important Reminders
- Educator expenses, You can use Form 1040A if all of the following apply., Educator Expenses
- Estate, Excess Deductions of an Estate
- Estate tax, Taxes and Fees
You Cannot Deduct
- Fee-basis government officials, Special Rules
- Impairment-related work expenses, Impairment-Related
Work Expenses
(Business or Medical), Impairment-related work expenses of disabled employees.
- Inheritance tax, Taxes and Fees
You Cannot Deduct
- Interest (see Interest payments)
- Investment expenses, Investment expenses.
- Local assessments, Taxes for local benefits.
- Long-term care insurance contracts,
- Meal expenses (see Meal and lodging expenses)
- Medical expenses (see Medical and dental expenses)
- Mortgage interest (see Mortgages)
- Moving expenses, Who Can Deduct Moving Expenses, Where to deduct.
- Not itemizing, use of Form 1040A, You can use Form 1040A if all of the following apply.
- Pass-through entities, Indirect Deductions of
Pass-Through Entities
- Penalties, no deduction permitted, Penalties.
- Performing artists' expenses, Expenses of certain performing artists.
- Personal property taxes, Personal Property Taxes
- Prepaid insurance premiums, Prepaid insurance premiums.
- Prescription medicines,
- Real estate-related items not deductible, Real Estate-Related Items You Cannot Deduct
- Rental expenses, When to deduct., Property Not Used as a Home
- Repayments, Repayments
- Section 179 deductions:
-
- Adjustment to basis for, Depreciation and section 179 deduction.
- Car expenses, Depreciation and section 179 deductions.
- Self-employed persons:
-
- Health insurance premiums, Important Changes for 2003, Important Changes, Health Insurance Costs for Self-Employed
Persons
- Self-employment tax, Self-employment tax.
- Social security and railroad retirement benefits, Deductions Related to Your Benefits
- Standard deduction, Standard Deduction, Standard Deduction, Married persons who filed separate returns.
- Stop-smoking programs,
- Student loan interest deduction (see Student loans)
- Theft loss, Certain Casualty and
Theft Losses
- Transportation expenses (see Travel and transportation expenses)
- Tuition and fees (see Tuition)
- Unemployment compensation mandatory contributions, Contributions to state benefit funds.
- Union dues (see Labor unions)
- Weight-loss programs, Important Reminders
- Work-related education, Qualified Education Expenses
- Workers' compensation mandatory contributions, Contributions to state benefit funds.
- Deeds:
-
- Preparation costs for, Amounts charged for services.
- Recording fees, basis to include, Real estate taxes.
- Deemed IRAs, Important Changes for 2003, Important Changes for 2003
- Deferred annuity contracts (see Annuities)
- Deferred compensation plans (see Retirement plans)
- Deferred compensation:
-
- Limit, Elective deferrals.
- Delinquent taxes:
-
- Real estate transactions, tax allocation, Real estate taxes for prior years.
- Delivery services, Important Reminders, Private delivery services.
- Delivery services:
-
- Business-related travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Demutualization of life insurance companies, Demutualization of life insurance companies.
- Dental expenses (see Medical and dental expenses)
- Dentures:
-
- Deductibility as medical expense,
- Dependent care:
-
- Benefits, Dependent care benefits., Employer-Provided Dependent
Care Benefits
-
- Forfeitures, Forfeitures.
- Center, Dependent care center.
- Credit for, Child and Dependent Care Credit
- Dependent's education expenses, claiming:
-
- Education credit, Who Can Claim a Dependent's Expenses, Tuition reduction.
- Dependents, Who Should File, You can use Form 1040A if all of the following apply.
-
- (see also Adoption)
- (see also Child tax credit)
- Dependents:, Adoption.
-
- (see also Adoption)
- Born and died within year, Exception., Born and died in 2003.
- Child, defined, Child defined.
- Deceased dependent's medical and dental expenses, What if you pay medical expenses of a deceased spouse or dependent?
- Disabled dependent care expenses, deduction for, Disabled Dependent
Care Expenses
- Exemptions, Single persons., Exemptions for Dependents
- Exemptions:
-
- Chart summarizing claims (Figure 3–A),
- Child born alive, Child born alive.
- Child tax credit available, Child tax credit.
- Death during year, Death of dependent., Decedent as your dependent.
- Disabled, Disabled dependents.
- Housekeepers, maids, servants, Housekeepers, maids, or servants.
- Kidnapped child, Kidnapped children.
- Stillborn child, Stillborn child.
- Filing requirements, Child's earnings.
- Filing requirements:
-
- Earned income, unearned income, and gross income levels (Table 1–2),
- Foster children (see Foster care)
- Medical and dental expenses of, Dependent.
- Social Security Number, Dependent's social security number., Phaseout of Exemptions
- Social Security Number:
-
- Adoption taxpayer identification number, Adoption taxpayer identification number (ATIN)., Taxpayer identification numbers for aliens.
- Alien dependents, Alien dependent., Born and died in 2003.
- Standard deduction for, Standard Deduction
for Dependents
- Standard deduction for:
-
- Worksheet (Table 22–3),
- Tests to claim, Dependency Tests
- Tests to claim:
-
- Citizen or residency test, Citizen or Resident Test
- Gross income test, Gross Income Test
- Joint return test, Joint Return Test
- Member of household or relationship test, Member of Household
or Relationship Test
- Multiple support agreement, Multiple Support Agreement
- Support test, Support Test
- Travel expenses for, Travel expenses for another individual.
- Tuition deduction for, Who Can Claim a Dependent's Expenses?
- Depletion allowance, Depletion.
- Depletion allowance:
-
- Adjustment to basis for, Decreases to Basis
- Deposits:
-
- Loss on, Loss on Deposits
- Losses on, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits
- Losses on:
-
- Reporting of, Loss on deposits.
- Depreciation
-
- Cellular telephone, Depreciation on Computers
or Cellular Telephones
- Computer, Depreciation on Computers
or Cellular Telephones
- Home computer, Depreciation on
Home Computer
- Depreciation:
-
- ACRS, Depreciation Methods
-
- (see also ACRS (Accelerated Cost Recovery System))
- Adjustment to basis for, Depreciation and section 179 deduction.
- Alternative minimum tax and accelerated depreciation, Alternative minimum tax.
- Cars, Important Changes, Depreciation and section 179 deductions.
- Change of use of property, Basis for depreciation.
- Cooperative apartments, deduction for rented unit, Cooperative apartments.
- Correcting amount claimed, Claiming the correct amount of depreciation.
- Form 4562:
-
- Rental property depreciation, Depreciation
- MACRS, Depreciation Methods, MACRS
-
- (see also MACRS (Modified Accelerated Cost Recovery System))
- Methods of, Depreciation Methods
- Property used in trade or business, as noncapital assets, Capital Assets and Noncapital Assets
- Real property:
-
- Gain from disposition of property, Gain from disposition., Depreciation after May 6, 1997.
- Land, no depreciation of, Land.
- Rental property, Depreciation., Depreciation
- Rental property:
-
- Special depreciation allowance, Important Change, Special Depreciation Allowance
- Useful lives and either straight line or accelerated method of depreciation, Depreciation Methods
- Destroyed records, Destroyed records.
- Diaper service,
- Direct deposit of refunds, Direct Deposit.
- Directors' fees, Corporate director.
- Disabilities, persons with
-
- Blind (see Blind persons)
- Credit for (see Elderly or disabled, credit for)
- Disabilities, persons with:, Physically or mentally not able to care for oneself. (see Physically or mentally not able to care for oneself.)
-
- Accrued leave payment, Accrued leave payment.
- Armed forces, Disability.
- Blind (see Blind persons)
- Cafeteria plans, Cafeteria plans.
- Credit for, Credit for the Elderly or the Disabled
- Dependency exemption, gross income test for, Disabled dependents.
- Dependent who is disabled, deduction for care expenses, Disabled Dependent
Care Expenses
- Expenses for, Impairment-Related
Work Expenses
- Guide dogs, deductible as medical expense,
- Impairment-related work expenses of, Impairment-Related
Work Expenses
(Business or Medical), Impairment-related work expenses of disabled employees.
- Impairment-related work expenses of:
-
- Work-related education, Impairment-Related Work Expenses
- Income, Disability Pensions
- Insurance costs, Cost paid by you.
- Military and government pensions, Military and Government
Disability Pensions
- Public assistance benefits, Persons with disabilities.
- Reporting of disability pension income, How to report.
- Retirement, pensions, and profit-sharing plans, Disability income., Retirement and profit-sharing plans.
- Signing of return by court-appointed representative, Unable to sign.
- Social security and railroad retirement benefits, deductions for, Disability payments.
- Special school or home for, deductibility of medical expense,
- Terrorist attack as cause of injury, disability payments excluded from taxation, Disability Pensions
- Workers' compensation, Workers' Compensation
- Disability benefits
-
- Earned Income Credit, Disability Benefits
- Disability insurance payments
-
- Earned Income Credit, Disability insurance payments.
- Disability:
-
- Income, Disability income.
- Permanent and total, Permanent and total disability.
- Disaster relief, Terrorist attack or military action., Disability Pensions
-
- (see also Terrorist attacks)
- Disaster relief:, Disaster relief payments., Disaster relief.
-
- Cash gifts to victims, Cash gifts.
- Deductions for contributions to qualified organizations, Important Reminders
- Disaster Assistance Act of 1988, Federal Payments
- Disaster Relief and Emergency Assistance Act:
-
- Grants, Disaster relief grants.
- Unemployment assistance, Types of unemployment compensation.
- Employer's emergency disaster fund, Employer's emergency disaster fund.
- Government-ordered demolition or relocation of home that is unsafe due to, Deductible losses.
- Grants or payments, Disaster relief grants.
- Replacement of lost or destroyed property, Disaster relief.
- Disclosure statement, Disclosure statement.
- Discount, bonds and notes issued at, Original Issue
Discount (OID)
- Discounted debt instruments, The 1099 Series
-
- (see also Original issue discount (OID))
- Discounted debt instruments:
-
- Capital gain or loss, Discounted Debt Instruments
- Discounts:
-
- Employee discounts, effect on basis, Bargain purchases.
- Distributions, The 1099 Series, Important Reminders, Eligible rollover distributions.
-
- (see also Dividends)
- (see also Rollovers)
- Early (see Early withdrawal from deferred interest account)
- Hardship (see Hardship distributions)
- Lump sum (see Lump-sum distributions)
- Required minimum distributions (see Individual retirement arrangements (IRAs)) (see Pensions)
- Distributions:
-
- Liquidating distributions, Liquidating distributions.
- Nontaxable distributions, Nontaxable
Distributions
- Return of capital, Return of Capital
- District of Columbia first-time homebuyer credit, Credits.
- Dividends, The 1099 Series
-
- (see also Form 1099–DIV)
- Alaska Permanent Fund (see Alaska Permanent Fund dividends)
- Dividends:, Dividends and Other Corporate Distributions, Form 1099–DIV., More information.
-
- (see also Form 1099–DIV)
- 2003 change to reporting of, Important Changes for 2003
- Alaska Permanent Fund (see Alaska Permanent Fund dividends)
- As stock dividends and stock rights, Distributions of Stock
and Stock Rights
- Backup withholding, Backup withholding.
- Beneficiary of estate or trust receiving, Beneficiary of an estate or trust.
- Buying more stock with, Dividends Used to Buy More Stock
- Deceased taxpayer, reporting of, Interest and Dividend Income
(Forms 1099)
- Defined, Introduction
- Exempt-interest dividends, Other Distributions
- Expenses related to, deduction of, Expenses related to dividend income.
- Fees to collect, Fees to Collect
Interest and Dividends
- Foreign income, Important Reminder
- Form 1040A, use of, You can use Form 1040A if all of the following apply.
- Holding period, determination of, Stock dividends.
- Insurance dividends, Dividends on insurance policies.
- Money market funds, Money Market Funds
- Nominees receiving on behalf of another, Nominees.
- Nontaxable distributions, Nontaxable
Distributions
- Ordinary dividends, Ordinary Dividends
- Patronage dividends, Patronage dividends.
- Qualified, Qualified Dividends, Qualified dividends., Important Change for 2003
- Real estate investment trusts (REITs) paying, Capital Gain Distributions
- Redemption treated as, Dividend versus sale or trade.
- Reinvestment plans, Dividends Used to Buy More Stock
- Reporting of, Important Reminder, How To Report Dividend Income
- Reporting of:
-
- As interest, Introduction
- Return of capital, Return of Capital
- Scrip dividends, Scrip dividends.
- Sold stock, Dividends on stock sold.
- Stockholder debts when canceled as, Stockholder debt.
- Tax rate as of 2003, Important Changes for 2003
- Veterans' insurance, Dividends on veterans' insurance.
- Divorced taxpayers, Alimony.
-
- (see also Alimony)
- Divorced taxpayers:
-
- Child and dependent Care credit, Child of Divorced
or Separated Parents
- Child custody:
-
- Support test for dependents, Custody.
- Definition of divorce for purposes of alimony, Divorce or separation instrument.
- Dependent support test, Support Test for
Child of Divorced or
Separated Parents
- Dependent support test:
-
- Chart (Figure 3–B),
- Post-1984 divorce decree or separation agreement, Divorce decree or separation agreement made after 1984.
- Estimated tax payments, Divorced Taxpayers
- Filing status, Divorced persons., Divorced persons.
- IRAs, Spousal IRA., Transfers Incident to Divorce
- Medical and dental expenses of children of, Child of divorced or separated parents.
- Mortgage interest, payment as alimony, Divorced or separated individuals.
- Personal exemption, Divorced or separated spouse.
- Real estate taxes, allocation of, Divorced individuals.
- Transfers between spouses, Property Transferred
From a Spouse, Transfers Between Spouses
- Use of home after divorce, Use of home after divorce.
- Doctors' bills (see Medical and dental expenses)
- Documentary evidence:
-
- Recordkeeping requirements, Documentary evidence.
- Domestic help:
-
- Dependent exemption not applicable, Housekeepers, maids, or servants.
- Withholding, Household workers.
- Domestic relations orders, qualified (QDROs):
-
- Rollover of retirement plan distribution, Alternate payee under qualified domestic relations order.
- Donations (see Charitable contributions)
- Droughts:
-
- Losses of property due to, Progressive deterioration.
- Drug or alcohol rehabilitation centers:
-
- Deductibility of medical expense,
- Drugs:
-
- As medical expenses:
-
- Over-the-counter drugs, not deductible,
- Prescription medicines, deductibility,
- Dry cleaning:
-
- Business-related travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes., Incidental expenses.
- Dual-status taxpayers, Dual-status taxpayer.
- Dual-status taxpayers:
-
- Joint returns not available, Nonresident alien or dual-status alien.
- Standard deduction, Persons not eligible for the standard deduction.
- Due dates, Balance due., When Do I
Have To File?, Private delivery services.
-
- Extension (see Extension of time to file)
- Due dates:
-
- 2003 dates (Table 1–5),
- Deceased taxpayer, When and where to file.
- Disaster areas, postponed deadlines, Postponed tax deadlines.
- Nonresident aliens' returns, Nonresident alien.
- Due diligence
-
- Child and dependent care credit, Due diligence.
- Dues:
-
- Chamber of Commerce, Dues to Chambers of Commerce and Professional Societies
- Club, Club Dues
- Union, Union Dues and Expenses
- Dwelling units, Keeping Up a Home, Home jointly owned.
-
- (see also Home)
- Cooperative (see Cooperative housing)
- Dwelling units:, Personal Use of
Dwelling Unit
(Including Vacation Home), Dwelling Unit
Used as Home, Examples, How To Divide Expenses
-
- (see also Vacation homes)
- Cooperative (see Cooperative housing)
- Defined, Dwelling unit.
- Renting (see Rental income and expenses)
E
- E-file, Important Reminders
- E-file:, Important Reminders, IRS e-file
-
- Extensions of time to file, How to get the automatic extension.
- Forms 8453 and 8453-OL for signature requirements, Forms 8453 and 8453–OL.
- On time filing, Electronically filed returns.
- Early withdrawal from deferred interest account
-
- Form 1099–R reporting (see Form 1099–R)
- Form 5329 reporting (see Form 5329)
- Early withdrawal from deferred interest account:
-
- Annuities,
- Higher education expenses, exception from penalty, Important Reminders
- IRAs:
-
- Early distributions, defined, Early distributions defined.
- Penalties, Early distributions tax., Early Distributions
- Section 457 deferred compensation plans, Important Reminders,
- Tax on, Special Additional Taxes, Tax on Early Distributions
- Earned income, Rule 15. Your Earned Income Must Be Less Than:
-
- Child and dependent care credit, Earned income.
- Employee, Rule 7. You Must Have Earned Income
- Self-employed, Rule 7. You Must Have Earned Income
- Earned Income Credit, You can use Form 1040A if all of the following apply., Earned income credit., Earned income credit., Earned income credit., Earned Income Credit
-
- Disability benefits, Disability Benefits
- Disability insurance payments, Disability insurance payments.
- Foster child, Eligible foster child.
- Military personnel, Military personnel stationed outside the United States.
- Social security card, Social security number.
- Social Security Number, Social security number.
- Earned Income Credit:
-
- 2003 changes, Important Changes for 2003
- Advance, Important Reminders, You can use Form 1040EZ if all of the following apply.
- Advance:
-
- Filing requirements (Table 1–3),
- Amount of earned income, Important Changes for 2003
- Considered unmarried, Earned income credit.
- Filing claim, Who Should File
- Investment income, limit on, Important Changes for 2003
- Married filing separately, Special Rules
- Earned income:
-
- Defined:
-
- For purposes of standard deduction, Earned income defined.
- Dependent filing requirements (Table 1–2),
- Earthquakes, Disaster relief.
-
- (see also Disaster relief)
- Earthquakes:
-
- Casualty loss caused by, Deductible losses.
- Easements:
-
- Adjustment to basis for, Easements.
- Education credits, You can use Form 1040A if all of the following apply.
- Education credits:, Education Credits, Important Changes for 2003, Hope Credit, Illustrated Example (see Hope credit; Lifetime learning credit)
-
- (see also Hope credit)
- (see also Lifetime learning credit)
- Academic period, Academic period.
- Comparison chart (Table 37–1),
- Dependent's education expenses, claiming, Who Can Claim a Dependent's Expenses
- Eligible educational institution, Eligible educational institution.
- Expenses, qualified education, What Expenses Qualify, Comprehensive or bundled fees.
- Form 8863, completed sample, Illustrated Example
- General requirements, Who Can Claim the Credit
- Income limits, Effect of the Amount of Your Income on the Amount of Your Credit
- Married filing separately, Special Rules
- Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI).
- Phaseout of credit, Effect of the Amount of Your Income on the Amount of Your Credit
- Qualified education expenses, What Expenses Qualify, Comprehensive or bundled fees.
- Recapture of, You can use Form 1040A if all of the following apply.
- Recapture of:
-
- Filing requirements (Table 1–3),
- Timing of, When Must the Credit Be Repaid (Recaptured)
- Refund of expenses, Refunds.
- Who cannot claim, Who Cannot Claim the Credit, Can You Claim the Credit
- Education expenses, You can use Form 1040A if all of the following apply.
-
- (see also Tuition)
- Employer-provided (see Educational assistance)
- Tuition (see Qualified tuition programs)
- Education expenses:, Tuition and Fees Deduction
-
- (see also Tuition)
- Employer-provided (see Educational assistance)
- Teacher's out-of-pocket expenses, You can use Form 1040A if all of the following apply., Educator Expenses
- Work-related education, deduction of expenses, Cruises and conventions.
- Education savings accounts (see Coverdell ESAs)
- Education:
-
- Savings bond program, Education Savings
Bond Program
- Educational assistance, You can use Form 1040A if all of the following apply.
-
- (see also Tuition)
- Scholarships (see Scholarships and fellowships)
- Tuition (see Qualified tuition programs)
- Educational assistance:, Tuition and Fees Deduction
-
- (see also Tuition)
- Employer-provided, Educational Assistance, Qualified Education Expenses
- Employer-provided:
-
- Tuition deduction, effect on, Tax-free educational assistance.
- Work-related programs, Tax Benefits for Work-Related Education
- Educational institution (see Eligible educational institution)
- Educational institution:
-
- Education credits, Eligible educational institution.
- Educational organizations:
-
- As related party in transactions, Losses on sales or trades of property.
- Charitable contributions to, Types of Qualified Organizations, Examples.,
- Charitable contributions to:
-
- 50% limit on deduction, 50% limit organizations.
- Educator out-of-pocket expenses, You can use Form 1040A if all of the following apply., Educator Expenses
- EE series bonds (see U.S. savings bonds)
- EIC, Earned income credit., Earned income credit., Earned income credit. (see Earned Income Credit)
- Elderly or disabled, credit for, You can use Form 1040A if all of the following apply.
- Elderly or disabled, credit for:
-
- Married filing separately, Special Rules
- Elderly persons, Retirement Plans, Pensions, and Annuities, Employee Pensions
and Annuities
-
- (see also Pensions)
- Credit for (see Elderly or disabled, credit for)
- Long-term care (see Long-term care insurance contracts)
- Elderly persons:
-
- Exemption from withholding, Age 65 or older or blind.
- Home for the aged, Home for the aged.
- Nutrition Program for the Elderly, Nutrition Program for the Elderly.
- Standard deduction for age 65 or older, Introduction, Higher Standard Deduction
for Age (65 or Older)
- Standard deduction for age 65 or older:
-
- Filing status (Chart),
- Tax Counseling for the Elderly, Free Help With Your Return
- Election precinct officials:
-
- Fees, reporting of, Election precinct official.
- Elective deferrals, Retirement Plans, Pensions, and Annuities
-
- (see also Retirement plans)
- Elective deferrals:
-
- Limits, Elective deferrals.
- Elective surgery:
-
- Not deductible as medical expense,
- Electric cars:
-
- Credit, Car Expenses
- Credits, Credit for Electric Vehicles
- Credits:
-
- Adjustment to basis, Credit for qualified electric vehicles.
- Amount of, Amount of credit.
- Filing requirements (Table 1–3),
- How to claim, How to claim the credit.
- Qualified electric vehicle, Qualified electric vehicle.
- Recapture of, Recapture.
- Electronic filing (see E-file)
- Electronic payment options, Important Reminders, Credit card.
- Electronic payment options:
-
- Credit card, Credit card., How To Pay Estimated Tax
- Electronic Federal Tax Payment System (EFTPS), Electronic Federal Tax Payment System (EFTPS)., How To Pay Estimated Tax
- Electronic funds withdrawal, Electronic funds withdrawal., Important Reminder, How To Pay Estimated Tax, Payment by Electronic Funds Withdrawal or Credit Card
- Electronic reporting
-
- Returns (see E-file)
- Electronic reporting:
-
- Tip statement from employees to employers, Electronic tip statement.
- Eligible educational institution:
-
- Student loan interest deduction, Eligible educational institution.
- Eligible student:
-
- Hope credit, Who Is an Eligible Student, Enrolled at least half-time.
- Lifetime learning credit, Who Is an Eligible Student
- Student loan interest deduction, Eligible student.
- Embezzlement:
-
- Losses due to, Theft
- Reporting embezzled funds, Illegal income.
- Emergency medical service personnel:
-
- Life insurance proceeds when death in line of duty, Important Reminders, Public safety officer killed in the line of duty.
- Emotional distress damages, Emotional distress.
- Employee benefits (see Fringe benefits) (see Fringe benefits or specific type of benefit (e.g., Health insurance, Life insurance,
etc.))
- Employee business expenses:, Car Expenses and Other Employee Business Expenses, Illustrated Example
-
- Commuting expenses, Commuting expenses.
- Deductions for, Introduction, Who does not need to use this chapter.
- Deductions for:
-
- Form 2106 for deducting, Both self-employed and an employee.
- Impairment-related work expenses, deduction for, Impairment-Related
Work Expenses
(Business or Medical), Impairment-related work expenses of disabled employees.
- Meals (see Meal and lodging expenses)
- Reimbursements, Expense allowances., Allowances and reimbursements., Reimbursement, allowance, or advance., Per Diem and Car Allowances, Reporting your expenses with a per diem or car allowance.
-
- (see also Per diem)
- Reimbursements:
-
- Returning excess, Expense allowances., Returning Excess Reimbursements
- Travel (see Travel and transportation expenses)
- Work-related education, Tax Benefits for Work-Related Education
- Employee expenses:
-
- Cellular telephone, Depreciation on Computers
or Cellular Telephones
- Home computer, Depreciation on Computers
or Cellular Telephones, Depreciation on
Home Computer
- Miscellaneous, Unreimbursed
Employee Expenses
(Line 20)
- Employees
-
- Business expenses (see Employee business expenses)
- Overseas employment (see Foreign employment)
- Employees:, Taxable Fringe Benefits, Fringe Benefits, De Minimis (Minimal) Benefits
-
- (see also Fringe benefits)
- Awards for service, Bonuses and awards.
- Business expenses (see Employee business expenses)
- Discounts for, effect on basis, Bargain purchases.
- Form W–4 to be filled out when starting new job, New Form W–4.
- Jury duty pay, Jury duty.
- Employers, Taxes and Fees
You Cannot Deduct, Amount of contribution.
-
- (see also Payroll deductions)
- Educational assistance from (see Educational assistance)
- Overseas employment (see Foreign employment)
- Employers:
-
- Child care provided by, credit as adjustment to basis, Decreases to Basis
- E-file options, Through Employers and Financial Institutions
- Educational assistance from (see Educational assistance)
- Form W–4, having new employees fill out, New Form W–4.
- Overseas employment (see Foreign employment)
- Vehicles provided by, Employer-Provided Vehicles
- Withholding rules, Rules Your Employer
Must Follow
- Employment
-
- Taxes:
-
- FICA withholding (see Withholding)
- Employment:
-
- Agency fees, Job Search Expenses
- Résumé expenses, Résumé.
- Taxes, Important Reminders, Household services., Employment Taxes
for Household Employers
- Taxes:, Social security and Medicare taxes paid by employer.
-
- (see also Social security/Medicare taxes)
- FICA withholding (see Withholding)
- Household help (see Domestic help)
- Tip income,
- Employment::
-
- Taxes:
-
- Tip income, Why report tips to your employer?
- Empowerment zone, Credits.
- Endowment proceeds, Proceeds from an endowment contract.
- Energy assistance, Payments to reduce cost of winter energy.
- Energy conservation:
-
- Measures and modifications, Energy conservation measure.
- Subsidies, Energy conservation subsidies.
- Subsidies:
-
- Exclusion as adjustment to basis, Exclusion of subsidies for energy conservation measures.
- Utility rebates, Utility rebates.
- Entertainers and musicians, Work Clothes and Uniforms
- Entertainment expenses:, Meals and Incidental Expenses, Entertainment Expenses
-
- 50% limit, 50% Limit
- 50% limit:
-
- Figure 28–A summary of rules,
- Allocation of costs, Separating costs., Separating expenses.
- Business-related gifts vs., Gift or entertainment., Gift or entertainment.
- Form 2106 or 2106–EZ, how to fill out, Meal and entertainment expenses.
- Meal expenses included, A meal as a form of entertainment.
- Proof of expenses, How To Prove Expenses
- Proof of expenses:
-
- Table 29–2 summary, Table 28–2. How To Prove Certain Business Expenses
- Recordkeeping requirements, Recordkeeping
- Reporting of, How To Report
- Reporting of:
-
- Table 29–3 showing forms to be used, Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Taking turns paying for meals or entertainment, Taking turns paying for meals or entertainment.
- Tickets:
-
- Face-value as deductible amount, Entertainment.
- Gift vs. entertainment deduction, Gift or entertainment., Gift or entertainment.
- Equipment, Hauling tools or instruments.
-
- (see also Tools)
- Equipment:
-
- Rental for rental property, Rental of equipment.
- Equitable relief (see Innocent spouse relief)
- Errors:
-
- Address label, correction of, Correcting the label.
- Depreciation, correcting amount on Form 1040X, Claiming the correct amount of depreciation.
- Discovery after filing, need to amend return, What If I Made
a Mistake?
- Form 1099 showing incorrect amount, Incorrect amount shown on a Form 1099.
- Form W–2c for corrected wage and tax statement, Form Not Correct
- IRAs, failure to take required distribution, Request to excuse the tax.
- Refunds, Interest on erroneous refund.
- Escrow:
-
- Taxes placed in, when deductible, Taxes placed in escrow.
- Estate beneficiaries, Gifts and inheritances., Inherited Property, Inherited property.
-
- (see also Inheritance)
- IRAs (see Individual retirement arrangements (IRAs))
- Estate beneficiaries:
-
- Consistent treatment of estate items, Important Reminders
- Dividends received by, Beneficiary of an estate or trust.
- IRAs (see Individual retirement arrangements (IRAs))
- Losses of estate, Losses.
- Receiving income from estate, Estate and trust income., Current income not required to be distributed.
- Rollover restrictions, Rollover by surviving spouse.
- Estates, Estate and trust income.
-
- (see also Estate beneficiaries)
- Tax, Taxes and Fees
You Cannot Deduct, Federal Estate Tax on Income
in Respect of a Decedent
-
- Deduction, Taxes and Fees
You Cannot Deduct
- Repeal of, Important Reminders
- Return, filing threshold, Important Reminders
- Survivor's annuity, Estate tax.
- Estates:
-
- Income, Estate and trust income.
- Investment interest, Partners, shareholders, and beneficiaries.
- Estimated tax, Tax Withholding and Estimated Tax, IRS can figure the penalty for you.
- Estimated tax:
-
- Amount to pay to avoid penalty, How much to pay to avoid a penalty.
- Avoiding, Who Does Not Have To Pay Estimated Tax
- Change in estimated tax, Change in estimated tax.
- Credit for, Introduction, Credit for Withholding
and Estimated Tax, Estimated Tax
- Definition, Introduction
- Divorced taxpayers, Divorced Taxpayers
- Electronic funds withdrawal, Important Reminder, How To Pay Estimated Tax, Payment by Electronic Funds Withdrawal or Credit Card
- Figuring amount of tax, How To Figure
Estimated Tax
- First period, no income subject to estimated tax in, No income subject to estimated tax during first period.
- Fiscal year taxpayers, Fiscal year taxpayers.
- Married taxpayers, Married taxpayers.
- Name change, Name changed.
- Not required, Estimated tax not required.
- Overpayment applied to, Refunds
- Payment-vouchers, How To Pay Estimated Tax, Using Payment-Vouchers
- Payments, Estimated tax payments., How To Pay Estimated Tax
- Payments:
-
- Figuring amount of each payment, How To Figure
Each Payment
- Schedule, When To Pay
Estimated Tax, No income subject to estimated tax during first period.
- When to start, When To Start
- Who must make, Who Must Pay
Estimated Tax?
- Penalty for underpayment, Introduction, Underpayment penalty., Underpayment Penalty, Penalty for underpayment of estimated tax.
- Penalty for underpayment:
-
- IRS computation of, Form 2210, Underpayment Penalty
- Pension payments, Withholding and estimated tax.
- Safe harbor for higher income individuals, Important Reminder
- Saturday, Sunday, holiday rule, Saturday, Sunday, holiday rule.
- Separate returns, Separate Returns
- Social security or railroad retirement benefits, Tax withholding and estimated tax.
- State and local income taxes, deduction of, Estimated tax payments.
- Unemployment compensation, Tax withholding.
- Estimates:
-
- Travel expenses, How To Prove Expenses
- Excess benefits tax (see Section 72(m)(5))
- Excess reimbursements:
-
- Business expense reimbursements, Expense allowances., Returning Excess Reimbursements
- Medical expenses, Excess reimbursement.
- Medical expenses:
-
- Excess algorithm (Figure 23–A), Reimbursement in a later year.
- Excess withholding credit:, Important Changes for 2003, Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld
-
- How to claim, How to claim the credit.
- Joint returns, One employer.
- Exchange students:
-
- Expenses paid for, deductible when under agreement with qualified organization, Expenses Paid for Student Living With You
- Exchanges, What is a Sale or Trade?, How to report.
-
- (see also Trade of property)
- Exchanges:
-
- Like-kind exchanges, Like-Kind Exchanges, Like-kind exchanges.
- Partially nontaxable exchange, Partially nontaxable exchange., Partially nontaxable exchange.
- Tax-free:
-
- Definition of, Nontaxable Exchanges
- Holding period, determination of, Nontaxable trades.
- Taxable exchange, defined, Taxable Exchanges
- Excise taxes, When Must You Withdraw IRA Assets? (Required Minimum Distributions)
-
- (see also Penalties)
- Excise taxes:
-
- Basis to include, Cost Basis
- Deductibility (Table 25–1),
- IRAs for failure to take minimum distributions, When Must You Withdraw IRA Assets? (Required Minimum Distributions)
- Roth IRAs, What If You Contribute Too Much?, Results of failed conversions.
- Exclusions from gross income
-
- Capital gains from home sale (see Sale of home)
- Exclusions from gross income:
-
- Accelerated death benefits, Accelerated Death Benefits, Accelerated Death Benefits
- Adoption of special needs child, Important Changes for 2003, Child with special needs.
- Annuities, Exclusion limit.
- Canceled debt, Excluded debt.
- Commuting benefits for employees, Exclusion limit.
- De minimis benefits, De Minimis (Minimal) Benefits
- Disability pensions of federal employees and military, Military and Government
Disability Pensions, Conditions for exclusion.
- Education Savings Bond Program, Interest on qualified savings bonds.
- Educational assistance from employer, Educational Assistance
- Elective deferrals, limit on exclusion, Elective deferrals.
- Employee awards, Employee achievement award.
- Energy conservation subsidies, Energy conservation subsidies., Utility rebates.
- Foreign earned income, Important Reminders
- Frozen deposit interest, Interest on frozen deposits.
- Group-term life insurance, Entire cost excluded.
- Holocaust victims restitution, Important Reminders, Holocaust victims restitution.
- Long-term care insurance contracts, Long-Term Care
Insurance Contracts, Limit on exclusion.
- Parking fees, employer-provided, Transportation
- Public safety officers who died or were killed in line of duty, death benefits, Important Reminders, Public safety officer killed in the line of duty.
- Sale of home, Sale of home.
- Scholarships, Scholarships and fellowships.
- Strike benefits, Strike and lockout benefits.
- Terrorist attack as cause of injury, disability payments, Important Reminders, Disability Pensions
- Executors and administrators, Surviving Spouses,
Executors, Administrators,
and Legal Representatives
- Executors and administrators:
-
- Administrator defined, Administrator.
- Duties, Duties
- Duties:
-
- Final return, Final Return
for the Decedent
- Notification of IRS, Notifying the IRS.
- Election to file jointly may be revoked, Personal representative may revoke joint return election.
- Executor defined, Executor.
- Fees, reporting of, Executor, administrator, or personal representative of an estate.
- Personal representative defined, Personal representative.
- Related party transactions, Losses on sales or trades of property.
- Exempt-interest dividends, Exempt-interest dividends.
- Exempt-interest dividends:
-
- Alternative minimum tax, Alternative minimum tax treatment.
- Dividend reporting, Exempt-interest dividends.
- Information-reporting requirement, Information reporting requirement.
- Exemption amount:
-
- 2003 changes, Important Changes for 2003
- Exemptions
-
- Securities, tax-exempt (see Securities)
- Exemptions:, Single persons., Exemptions for Dependents
-
- (see also Dependents)
- Final return for decedent, Exemptions
- From withholding, Exemption From Withholding
- Personal (see Personal exemption)
- Phaseout, Special Rules, Important Changes, Phaseout of Exemptions
- State or local government bonds, tax-exempt, Tax-exempt state and local government bonds.
- Expatriates, Expatriates.
- Extension of time to file, Extensions of Time To File
- Extension of time to file:
-
- Additional extension, Form 2688, Extension beyond 4 months.
- Additional extension, Form 2688:
-
- Not approved, Extension not approved.
- Notice of approval, Extension approved.
- Automatic, Automatic Extension, When to file.
- Citizens outside U.S., Individuals Outside the
United States
- E-file options, How to get the automatic extension.
- Inclusion on return, When you file your return.
- Extortion:
-
- Losses due to, Theft
- Eye surgery:
-
- Deductibility as medical expense,
- Eyeglasses:
-
- As medical expense,
F
- Failure to comply with tax laws (see Penalties)
- Fair market value (FMV), Fair market value (FMV).
- Fair market value (FMV):
-
- Casualty loss, Decrease in
Fair Market Value
- Definition of, Real Property
- Sales of property, Fair market value.
- Stolen property, FMV of stolen property.
- Fair rental price, Fair rental price.
- Family, Child's earnings., Single persons., Dependency Tests, Child defined., Related Party Transactions, Step 3. Figuring
the Child's Tax
(Form 8615, Part III), Adopted child.
-
- (see also Child tax credit)
- (see also Children)
- (see also Dependents)
- (see also Related party transactions)
- Adoption credit (see Adoption)
- Care credit (see Child and dependent care credit)
- Family:
-
- Standard meal allowance not allowed if related to employer, Related to employer.
- Farming:
-
- Activity not for profit, Activity not for profit.
- Canceled debt, treatment of, Excluded debt.
- Patronage dividends, Patronage dividends.
- Farmworkers:
-
- Estimated tax, Aliens.
- Withholding, Farmworkers.
- Federal crime investigations or prosecutions:
-
- Travel expenses, Exception for federal crime investigations or prosecutions.
- Federal Employees' Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA).
- Federal employees:
-
- Accrued leave payment, Accrued leave payment.
- Cost-of-living allowances, Government cost-of-living allowances.
- Disability pensions, Military and Government
Disability Pensions
- Disability pensions:
-
- Based on years of service, Pension based on years of service.
- Exclusion, conditions for, Conditions for exclusion.
- Terrorist attack, Terrorist attack or military action.
- FECA payments, Federal Employees' Compensation Act (FECA).
- Federal government
-
- Employees (see Federal employees)
- Federal government:
-
- Charitable contributions to, Types of Qualified Organizations,
- Federal income tax:
-
- Interest on, not deductible, Personal Interest
- Not deductible, Taxes and Fees
You Cannot Deduct
- Not deductible:
-
- Deductibility (Table 25–1),
- Federal judges:
-
- Employer retirement plan coverage, Federal judges.
- Fee-basis officials, State and local government officials paid on a fee basis., Officials Paid on a Fee Basis
- Fee-basis officials:
-
- Business expenses of, Special Rules
- Work-related education expenses, Performing Artists and Fee-Basis Officials
- Fees (see specific types of deductions and income)
-
- Professional license, Professional Accreditation Fees
- Fees, comprehensive/ bundled, Comprehensive or bundled fees., Comprehensive or bundled fees.
- Fellowships (see Scholarships and fellowships)
- Fertility enhancement procedures:
-
- Deductibility as medical expense,
- FICA withholding (see Social security/Medicare taxes) (see Withholding)
- Fiduciaries, Surviving Spouses,
Executors, Administrators,
and Legal Representatives, Executor., Administrator., Personal representative., Trustees' fees., Trustees' fees.
-
- (see also Executors and administrators)
- (see also Trustees)
- Fiduciaries:
-
- Notice to IRS, Notifying the IRS.
- Prohibited transactions, Prohibited Transactions
- Related party transactions, Losses on sales or trades of property.
- Figures (see Tables and figures)
- Figuring taxes and credits, Are Any of Your Benefits Taxable?, Using the Qualified Dividends and Capital Gain Tax Worksheet., How Do You Figure the Deduction?, Figuring Your Tax, How to figure the credit if you did not work for a railroad.
-
- (see also Worksheets)
- Filing requirements, Filing Information, How Do I Prepare
My Return?, Signatures, Criminal Penalties
-
- (see also Signatures)
- (see also Tax returns)
- Electronic (see E-file)
- Late filing penalties (see Penalties)
- Unmarried persons (see Single taxpayers)
- Filing requirements:, Married Filing Separately
-
- (see also Married filing separately)
- Calendar year filers, When Do I
Have To File?
- Citizens outside U.S., U.S. Citizens and Residents Living Outside the United States
- Deceased taxpayer, When and where to file.
- Dependents, , Child's earnings.
- Estate tax return, filing threshold, Important Reminders
- Extensions, Extensions of Time To File
- Gross income levels (Table 1–1),
- Individual taxpayers, Individuals—In General
- Joint filing, Married Filing Jointly, Accounting period., Relief from joint liability., Married persons.
-
- (see also Joint returns)
- Most taxpayers (Table 1–1),
- Other situations requiring filing (Table 1–3),
- Telefile, Using a Telephone (TeleFile)
- When to file, When Do I
Have To File?
- Where to file, Important Changes, Where Do I File?
- Who must file, Important Changes, Do I Have To
File a Return?, Who Should File, Who must file the return?
- Filing status, Filing status., Filing Status, Death or birth.
- Filing status:
-
- Annulled marriages, Annulled marriages.
- Change to, after time of filing, Amended Returns and
Claims for Refund
- Divorced taxpayers, Divorced persons.
- Head of household, Head of household or qualifying widow(er) with dependent child., Head of Household
- Head of household:
-
- Qualifying person to file as, Qualifying Person
- Joint returns, Married Filing Jointly
- Married filing separately, Married Filing Separately
- Surviving spouse, Head of household or qualifying widow(er) with dependent child.
- Unmarried persons, Individuals—In General, Unmarried persons.
-
- (see also Single taxpayers)
- Final return for decedent:, Final Return
for the Decedent
-
- Archer MSA, Archer MSA
- Business income, Business Income
- Capital loss deduction on, Decedent's capital loss.
- Credits, Credits, Tax withheld and estimated payments.
- Estimated tax payments, Tax withheld and estimated payments.
- Exemptions, Exemptions
- Filing, Filing the return.
- Income and deductions, determination of, Determining income and deductions.
- Income and deductions, determination of:
-
- Interest and dividends, Interest and Dividend Income
(Forms 1099)
- Itemized deductions, Itemized Deductions
- Joint return, Joint return.
- Losses, deduction for, Deduction for Losses
- Medical expenses, Medical expenses., Decedent
- Medical expenses paid, Decedent
- Medicare+Choice MSA, Archer MSA
- Partnership income, Partnership income.
- Pension, unrecovered investment in, Unrecovered investment in pension.
- Refund, file to claim, Filing to get a refund., Claiming a refund.
- S corporation income, S corporation income.
- Self-employment income, Self-employment income., Coverdell Education Savings Account (ESA)
- Standard deduction, Standard Deduction, Decedent's final return.
- Third party designee, Third party designee.
- When and where to file, When and where to file.
- Who must file, Who must file the return?
- Who must sign, Signing the return.
- Withheld tax, credit for, Tax withheld and estimated payments.
- Finance charges:
-
- Credit cards, retail installment contracts, etc., not deductible, Personal Interest
- Financial institutions, Deposit in Insolvent or Bankrupt Financial Institution, When and How Can a Traditional IRA Be Set Up?
-
- (see also Banks)
- Financially disabled persons, Financially disabled.
- Fines (see Penalties)
-
- Deductibility, Fines or Penalties
- Fire insurance:
-
- Premiums not in property basis, Settlement costs.
- Firefighters:
-
- Life insurance proceeds when death in line of duty, Important Reminders, Public safety officer killed in the line of duty.
- Volunteer firefighters:
-
- Charitable contributions to, Examples.
- IRAs, Volunteer firefighters.
- Fires:
-
- Arson, no casualty loss for, Nondeductible losses.
- Casualty loss caused by, Deductible losses., Personal property.
- First-time homebuyer credit:
-
- District of Columbia, Credits.
- First-year expensing (see Section 179 deductions)
- Fiscal year, Accounting Periods, Fiscal year taxpayers., Fiscal Years
- Fishermen:
-
- Estimated tax, Aliens.
- Indian fishing rights, Indian fishing rights.
- Fleet operations:
-
- Standard mileage rate not allowed, Standard mileage rate not allowed.
- Flexible spending arrangements, Flexible spending arrangement.
- Floods, Disaster relief.
-
- (see also Disaster relief)
- Floods:
-
- Casualty loss caused by, Deductible losses.
- FMV (see Fair market value)
- Food benefits:
-
- Nutrition program for the elderly, Nutrition Program for the Elderly.
- Foreclosure, Foreclosure or repossession., Mortgage ending early.
- Foreign children:
-
- Adoption credit, Foreign child.
- Foreign employment, Employees of foreign governments or international organizations.
- Foreign employment:, Foreign Employer
-
- Employment abroad, Employment abroad.
- Pension plan contributions, Foreign employment contributions.
- Social security/Medicare taxes, Social security and Medicare taxes.
- U.S. citizen, U.S. citizen.
- Waiver of alien status, Waiver of alien status.
- Foreign governments, employees of, Employees of international organizations or foreign governments.
- Foreign income taxes:
-
- Deduction of, Foreign Income Taxes
- Deduction of:
-
- Form 1116 to claim credit, Foreign income taxes.
- Schedule A or Form 1040 reporting, Foreign income taxes.
- Definition of, Foreign taxes.
- Foreign income:
-
- Dividends, Important Reminder
- Earned income exclusion, Important Reminders
- Reporting of, Important Reminders
- Sale of foreign property, Important Reminder
- Foreign nationals (see Resident aliens)
- Foreign organizations:
-
- Charitable contributions to, Certain foreign charitable organizations., , Contributions To Nonqualified Organizations
- Foreign students, Foreign students' place of residence.
- Foreign students:
-
- Expenses paid for, deductible when under agreement with qualified organization, Expenses Paid for Student Living With You
- Foreign tax credit:, Foreign Tax Credit
-
- Election not to file Form 1116, Election not to file Form 1116.
- How to claim, How to claim the credit.
- Limit on, Limit on the credit.
- Forfeitures
-
- Dependent care benefits, Forfeitures.
- Forgiveness of debt (see Cancellation of debt)
- Form:
-
- 1040, Form 1040., Form 1040 Line Entries
-
- Adjusted gross income, Adjusted gross income (AGI).
- Adoption expenses, How to claim the credit.
- Alternative minimum tax, Credit for prior year tax, How to claim the credit.
- Electric vehicle credit, How to claim the credit.
- Excess withholding credit, How to claim the credit.
- Foreign tax credit, How to claim the credit.
- Health insurance credit, How To Claim the Credit
- Mortgage interest credit, How to claim the credit.
- Schedule A:, Mortgage interest deduction, Reduced home mortgage interest deduction.
- Undistributed long-term capital gains, Credit for Tax on Undistributed Capital Gain
- 1040, Schedule A
-
- Charitable contributions, Gift To Reduce the
Public Debt, Form 1040 required., How To Report
- Employee business expense deduction, After you complete the form., 2. Limit on miscellaneous itemized deductions.
- Federal employees buying back sick leave, Federal Employees' Compensation Act (FECA).
- Gifts, deduction of, Gifts.
- Home mortgage interest deduction, Home Mortgage
Interest
- Investment expenses deduction, Investment expenses.
- Investment interest deduction, Investment interest.
- Itemized deduction limit, When to itemize.
- Loss of deposits due to bank's insolvency or bankruptcy cause, How to report.
- Medical and dental expenses, What Tax Form Do You Use?
- Outplacement services, deduction, Outplacement services.
- State and local income taxes, deduction of, State and local income taxes.
- State benefit funds, mandatory contributions to, Contributions to state benefit funds.
- Taxes, deduction of, Other taxes.
- Travel expenses, deduction of, Allowance LESS than or EQUAL to the federal rate.
- Unearned commission, deduction for repayment of, Advance commissions and other earnings.
- 1040, Schedule B
-
- Dividends, Important Reminders, Important Reminder, Form 1040.
- Interest income, Important Reminders
- Nominee distributions, How to report.
- 1040, Schedule C
-
- Barter income, Bartering
- Child care providers, Child care providers.
- Corporate director fees, Corporate director.
- Forgiveness of debts, Canceled Debts
- Foster-care providers, Reporting taxable payments.
- Kickbacks, Kickbacks.
- Notary fees, Notary public.
- Oil, gas, or mineral interest royalties, Royalties
- Real estate or personal property taxes on property used in business, deduction of, Real estate taxes and personal property taxes.
- Rental income and expenses, How To Report
Rental Income
and Expenses, Reporting business income and expenses.
- Self-employed persons, Self-Employed Persons
- Statutory employees, Statutory employees.
- 1040, Schedule C–EZ
-
- Child care providers, Child care providers.
- Corporate director fees, Corporate director.
- Foster-care providers, Reporting taxable payments.
- Kickbacks, Kickbacks.
- Notary fees, Notary public.
- Oil, gas, or mineral interest royalties, Royalties
- Rental income and expenses, How To Report
Rental Income
and Expenses, Reporting business income and expenses.
- Self-employed persons, Self-Employed Persons
- Statutory employees, Statutory employees.
- 1040, Schedule D
-
- Business property sales, How to report.
- Capital gains or losses, Schedule D, Capital gain distributions only., Using Schedule D.
- Child's capital gain distributions, Child's capital gain distributions.
- Fractional shares, sale of, Fractional shares.
- Home sale, capital gains from,
- Nonbusiness bad debts, loss of deposits due to bank's insolvency or bankruptcy, How to report.
- Reconciling Form 1099 with, Reconciling Forms 1099 with Schedule D.
- Sale expenses, Sale expenses.
- Undistributed long-term capital gains, Long-term gains and losses.
- Worthless securities, How to report loss.
- 1040, Schedule E
-
- Income-producing property, deduction of interest on loan for, Income-producing rental or royalty interest.
- Real estate or personal property taxes on rental property, deduction of, Real estate taxes and personal property taxes.
- Rental income and expenses, How To Report
Rental Income
and Expenses, Form 1098., Schedule E (Form 1040)
- Royalties, Royalties
- 1040, Schedule F
-
- Real estate or personal property taxes on property used in business, deduction of, Real estate taxes and personal property taxes.
- Self-employed persons, Both self-employed and an employee., Self-Employed Persons
- 1040, Schedule SE, Self-Employed Persons, Housing.
- 1040-ES:
-
- Estimated tax, Using Payment-Vouchers
- 1040-V:
-
- Payment voucher, Check or money order.
- 1040:
-
- Address label, Peel-Off Address Label
- Alaska Permanent Fund dividends, Alaska Permanent Fund dividends.
- Alien taxpayer identification numbers, Born and died in 2003.
- Armed forces' retirement pay, Military retirement pay.
- Attachments to, Form 1040.
- Capital gains, How To Report Dividend Income
- Charitable contributions, deduction to be itemized, Form 1040 required.
- Check mailed with, Check or money order.
- Child's capital gain distributions, Child's capital gain distributions.
- Clergy pension, Pension.
- Deceased taxpayer, Who must file the return?
- Deduction for alimony paid, How To Deduct Alimony Paid
- Disability retirement pay, How to report.
- Dividends, How To Report Dividend Income, Form 1040.
- Educator expenses, How the deduction is claimed.
- Estimated tax payments, Estimated Tax
- Executors' and administrators' fees, Executor, administrator, or personal representative of an estate.
- FECA benefits, Railroad sick pay.
- Foreign income taxes, deduction of, Foreign income taxes.
- Gambling winnings, Form W–2G.
- Insurance distributions, Dividends on insurance policies.
- IRAs, Reporting taxable distributions on your return., Filing a tax return.
- Overpayment offset against next year's tax, Crediting an Overpayment
- Personal exemption, How you claim an exemption.
- Presidential Election Campaign Fund, Presidential Election
Campaign Fund
- Railroad retirement benefits, reporting on, Reporting on Form 1040.
- Recapture of alimony, Including the recapture in income.
- Reporting of alimony received, How To Report Alimony Received
- Reporting taxes on tips not reported to employer, Reporting social security and Medicare taxes on tips not reported to your employer.
- Reporting uncollected taxes on tips, Reporting uncollected social security and Medicare taxes on tips.
- Self-employment tax, deduction of, Self-employment tax.
- Social security benefits, reporting on, Reporting on Form 1040.
- Social Security Numbers, Phaseout of Exemptions
- Student loan interest deduction, How Do You Figure the Deduction?
- Tip income reporting, How to report tips.
- Use of, Form 1040, Single, Married Filing Jointly, How to file., How to file.
- Wages and salary reporting, Form W–2.
- Workers' compensation, Return to work.
- 1040A, Form 1040A., Form 1040A Line Entries
-
- Adjusted gross income, Adjusted gross income (AGI).
- Adoption expenses, How to claim the credit.
- Excess withholding credit, How to claim the credit.
- 1040A, Schedule 1
-
- Dividends, Important Reminders, Important Reminder, Form 1040A.
- 1040A:
-
- Address label, Peel-Off Address Label
- Alaska Permanent Fund dividends, Alaska Permanent Fund dividends.
- Alien taxpayer identification numbers, Born and died in 2003.
- Armed forces' retirement pay, Military retirement pay.
- Attachments to return, Form 1040A.
- Capital gains, How To Report Dividend Income
- Clergy pension, Pension.
- Disability retirement pay, How to report.
- Dividend income reporting, Form 1040A.
- Dividends, How To Report Dividend Income
- Educator expenses, How the deduction is claimed.
- Estimated tax payments, Estimated Tax
- FECA benefits, Railroad sick pay.
- Insurance distributions, Dividends on insurance policies.
- IRA distributions, Reporting taxable distributions on your return.
- Overpayment offset against next year's tax, Crediting an Overpayment
- Personal exemption, How you claim an exemption.
- Presidential Election Campaign Fund, Presidential Election
Campaign Fund
- Railroad retirement benefits, reporting on, Reporting on Form 1040A.
- Rehabilitative program payments, Rehabilitative program payments.
- Reporting pay, Form W–2.
- Schedule 1| Nominee distributions, How to report.
- Social security benefits, reporting on, Reporting on Form 1040A.
- Social Security Numbers, Phaseout of Exemptions
- Student loan interest deduction, How Do You Figure the Deduction?
- Tip income reporting, How to report tips.
- Use of, Form 1040A, Single, Married Filing Jointly, How to file., How to file.
- Workers' compensation, Return to work.
- 1040EZ, Form 1040EZ Line Entries
- 1040EZ:
-
- Address label, Peel-Off Address Label
- Alaska Permanent Fund dividends, Alaska Permanent Fund dividends.
- Dividends up to $1,500, Important Reminders
- FECA benefits, Railroad sick pay.
- Interest up to $1,500, Important Reminders
- No attachments, Form 1040EZ.
- Personal exemption, How you claim an exemption.
- Presidential Election Campaign Fund, Presidential Election
Campaign Fund
- Reporting pay, Form W–2.
- Tip income reporting, How to report tips.
- Use of, Form 1040EZ, Single, Married Filing Jointly
- Workers' compensation, Return to work.
- 1040NR:
-
- Nonresident alien return, Nonresident alien.
- 1040NR–EZ:
-
- Nonresident alien easy return, Nonresident alien.
- 1040X
-
- Child's return, Parent's return information not known timely.
- 1040X:
-
- Amended individual return, Form 1040X.
- Annulled marriages, Annulled marriages.
- Bad debts, claim for refund, Filing a claim for refund.
- Change of filing status, Joint Return After
Separate Returns
- Check mailed with, Check or money order.
- Completing, Completing Form 1040X.
- Deceased taxpayer, Claiming a refund.
- Depreciation| Correcting amount of, Claiming the correct amount of depreciation.
- Filing, Filing Form 1040X.
- Itemized deduction, change to standard deduction, Changing your mind.
- Standard deduction, change to itemized deductions, Changing your mind.
- Worthless securities, claim for refund, Filing a claim for refund.
- 1040–ES(NR):
-
- Estimated tax for nonresident aliens, Aliens.
- 1040–ES:
-
- Estimated tax, How To Figure
Estimated Tax
- 1041:
-
- Estate income tax return, Introduction
- 1065:
-
- Partnership income, Schedule K–1 (Form 1065).
- 1098:
-
- More than one borrower (not spouse), reporting of mortgage interest deduction by attaching of, More than one borrower.
- Mortgage interest overpaid in earlier year, Refunds of interest.
- Mortgage interest statement, Form 1098., Mortgage interest refund., Mortgage Interest Statement
- Points reported on, Mortgage Interest Statement
- Prepaid interest reported on, Prepaid interest on Form 1098.
- Refund of interest reported on, Refunded interest.
- 1098–E, How Much Can You Deduct?
- 1098–T, Form 1098–T., Form 1098–T.
- 1099:
-
- Taxable income report, Form 1099., Interest and Dividend Income
(Forms 1099), Backup Withholding, The 1099 Series, Important Reminder
- 1099–A:
-
- Acquisition or abandonment of secured property, Form 1099–A and Form 1099–C.
- 1099–B:
-
- Barter income, The 1099 Series, Form 1099–B from barter exchange.
- Broker to report sales of stocks, bonds, or commodities, Sales and Trades, Form 1099–B transactions.
- 1099–C:
-
- Cancellation of debt, Form 1099–C., Form 1099–A and Form 1099–C.
- 1099–DIV:
-
- Dividend income statement, How to report., The 1099 Series, Stock you chose to include in income., Form 1099–DIV., Form 1099–DIV.
- Return of capital, Return of Capital
- 1099–G:
-
- Government payments, The 1099 Series
- State income tax refund, State income tax refund.
- 1099–INT, Form 1099–INT., Form 1099–INT.
- 1099–INT:
-
- Interest income statement, Interest and Dividend Income
(Forms 1099), How to report., The 1099 Series
- 1099–MISC:
-
- Brokers receiving dividends, Form 1099–MISC.
- Miscellaneous income, The 1099 Series
- Nonemployee compensation, Nonemployee compensation.
- Withheld state and local taxes, Withheld taxes.
- 1099–OID, Form 1099–OID.
- 1099–OID:
-
- Original issue discount, from issuer or broker, The 1099 Series
- 1099–R, Form 1099–INT for U.S. savings bonds interest.
- 1099–R:
-
- Early distributions of pension funds, Special Additional Taxes, Exceptions to tax.
- IRA distributions, Distributions reported on Form 1099–R., Form 5329 not required.
- Life insurance policy surrendered for cash, Surrender of policy for cash.
- Retirement plan distributions, Form W–2., The 1099 Series
- Withheld state and local taxes shown on, Withheld taxes.
- 1099–S:
-
- Real estate transactions proceeds, Form 1099–S., Form 1099–S transactions., Form 1099–S.
- 1116
-
- Foreign tax credit, How to claim the credit.
- 1116:
-
- Foreign tax credit, Foreign income taxes.
- 1120S:
-
- S corporation income, Schedule K–1 (Form 1120S).
- 1310:
-
- Statement of person claiming refund of deceased person, Introduction, Claiming a refund.
- 2106:
-
- Business-related expenses, Both self-employed and an employee., Employees., Reporting your expenses under a nonaccountable plan.
- Performing artists, Where to report.
- Travel expenses, Allowance LESS than or EQUAL to the federal rate., Allowance MORE than the federal rate.
- Work-related education expense, Form 2106 or 2106–EZ.
- 2106–EZ:
-
- Business-related expenses, Reporting your expenses under a nonaccountable plan.
- Performing artists, Where to report.
- Work-related education expense, Form 2106 or 2106–EZ.
- 2119:
-
- Postponement of gain from sale of home, Adjusted Basis
- 2210:
-
- Underpayment of estimated tax, IRS can figure the penalty for you.
- 2439
-
- Notice to shareholder on undistributed long-term capital gains, Credit for Tax on Undistributed Capital Gain
- 2439:
-
- Notice to shareholder on undistributed long-term capital gains, Undistributed capital gains of mutual funds and REITs.
- 2441, Form 1040.
- 2555, Rule 5. You Cannot File Form 2555 or Form 2555–EZ
- 2555–EZ, Rule 5. You Cannot File Form 2555 or Form 2555–EZ
- 2688:
-
- Additional extension of time to file, Extension beyond 4 months.
- 2848:
-
- Power of attorney and declaration of representative, Power of attorney., Other reasons spouse cannot sign.
- 3115, Change from method 2.
- 3800:
-
- General business credit, Exceptions for special types of refunds.
- 3903:
-
- Moving expenses, Form 3903.
- 4029, Approved Form 4361 or Form 4029
- 4070:
-
- Reporting tips to employer, How to report.
- 4070A:
-
- Daily record of tips, How to keep a daily tip record.
- 4137:
-
- Social security and Medicare taxes on tips not reported to employer, Reporting social security and Medicare taxes on tips not reported to your employer.
- 4361, Approved Form 4361 or Form 4029
- 4506:
-
- Copy of tax form request, Copies of returns.
- 4562:
-
- Depreciation of rental property, Depreciation
- 4684:
-
- Bank deposit, loss due to bank's insolvency or bankruptcy, How to report.
- Casualty or theft loss, Forms to file., How To Report
Gains and Losses
- 4797:
-
- Sales of business property, How to report.,
- Small business stock losses, Losses on Section 1244 (Small Business) Stock
- 4810:
-
- Prompt assessment request, Introduction
- 4868, E-file options., No social security number.
- 4868:
-
- Automatic extension of time to file, E-file options., No social security number.
- Filing electronic form, E-file using your personal computer or a tax professional.
- Filing paper form, Filing a paper Form 4868.
- 4952:
-
- Investment interest expense deduction, Form 4952
- Net capital gain, election to include as investment income, Choosing to include net capital gain.
- 4972:
-
- Lump-sum distributions, Lump-Sum Distributions
- 5329:
-
- Early distributions of sheltered funds, Special Additional Taxes, Exceptions to tax.
- Required minimum distributions, failure to take, Form 5329., Request to excuse the tax., Reporting Additional Taxes, Not filing a tax return., Form 5329 not required.
- 56:
-
- Fiduciary relationship notice, Introduction, Notifying the IRS.
- 6251, More information.
-
- Alternative minimum tax, Alternative minimum tax.
- 6252:
-
- Installment sale income, Installment sale.
- 706:
-
- Estate tax return, Introduction
- 8271:
-
- Investor report of tax shelter registration number, Failure to furnish tax shelter registration number.
- 8275-R:
-
- Regulation disclosure statement, Disclosure statement.
- 8275:
-
- Disclosure statement, Disclosure statement.
- 8283:
-
- Charitable noncash contribution of more than $500 value, How To Report
- 8332, Child of Divorced
or Separated Parents
- 8332:
-
- Written declaration releasing child exemption to noncustodial parent, Written declaration., Divorce decree or separation agreement made after 1984.
- 8379:
-
- Injured spouse claim, Joint return and injured spouse.
- 8396
-
- Mortgage interest credit, How to claim the credit., Reduced home mortgage interest deduction.
- 8396:
-
- Mortgage interest credit, Mortgage interest credit.
- 843
-
- Claim for refund and request for abatement, Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld
- 843:
-
- Claim for refund and request for abatement, Claiming a refund.
- 8453-OL:
-
- Address label, Peel-Off Address Label
- E-file, for signature requirement, Forms 8453 and 8453–OL.
- 8453:
-
- Address label, Peel-Off Address Label
- E-file, for signature requirement, Forms 8453 and 8453–OL.
- 8582:
-
- Passive activity gains or losses, Limits on passive activity deductions and credits., Passive activity gains and losses.
- 8606:
-
- IRA contributions, Nondeductible, Important Reminders, Form 8606., Form 8606.
- IRA contributions, Recharacterization of, Reporting a recharacterization.
- 8615, Tax on investment income of a child under age 14.
-
- Children under age 14 with more than $1,500 of investment income, Tax for Children Under Age 14 Who Have Investment Income of More Than $1,500,
- Net investment income, Step 1. Figuring the Child's Net Investment Income
(Form 8615, Part I)
- Parental information, Providing Parental Information
(Form 8615, lines A–C), Parent with different tax year., Parent's return information not known timely.
- Sample completed form, Illustrated Example
- 8615:
-
- Children under age 14 with more than $1,500 of investment income, Tax on investment income of a child under age 14.
- Form 1040A may be used when filing, You can use Form 1040A if all of the following apply.
- 8801
-
- Alternative minimum tax, How to claim the credit.
- 8812
-
- Additional child tax credit, How to claim the additional child tax credit.
- 8814, Tax on investment income of a child under age 14.
-
- Additional tax, figuring of, Figuring Additional Tax
- Calculation of child's income, Figuring Child's Income
- Capital gains distributions, Capital gain distributions and qualified dividends.
- Parents' election to report child's interest and dividends, How to make the election.
- Reduced deductions or credits, Reduced deductions or credits.
- Sample form, Illustrated Example
- 8814:
-
- Parents' election to report child's interest and dividends, Tax on investment income of a child under age 14., Investment income of child reported on parent's return.
- 8815, Form 8815.
- 8818, Education Savings
Bond Program
- 8822:
-
- Change of address, Change of Address
- 8824:
-
- Like-kind exchanges, How to report.
- 8828:
-
- Recapture of federal mortgage subsidy, How to figure and report the recapture.
- 8834
-
- Electric vehicle credit, How to claim the credit.
- 8836, Important Changes
- 8839
-
- Qualified adoption expenses, How to claim the credit.
- 8839:
-
- Qualified adoption expenses, Adoption Assistance
- 8853:
-
- Accelerated death benefits, Form 8853.
- Archer MSAs and long-term care insurance contracts, Archer MSA contributions.
- 8857:
-
- Innocent spouse relief, Relief from joint liability.
- 8862, If Improper Claim
Made in Prior Year
- 8863, Claiming the Credit, Claiming the Credit
-
- Completed sample, Illustrated Example
- 8874:
-
- New markets credit, filing requirements (Table 1–3),
- 8879:
-
- Authorization for E-file provider to use self-selected PIN, Using an Authorized IRS e-file
Provider
- 8885
-
- Health insurance credit, How To Claim the Credit
- 9465:
-
- Installment agreement request, Installment Agreement
- Requiring Form 1040 to be used when filing, You must use Form 1040 if any of the following apply.
- RRB–1042S:
-
- Railroad retirement benefits for nonresident aliens, Introduction
- RRB–1099:
-
- Railroad retirement benefits, The 1099 Series, Introduction
- SSA–1042S:
-
- Social security benefits for nonresident aliens, Introduction
- SSA–1099:
-
- Social security benefits, The 1099 Series, Introduction
- SS–5, Getting an SSN.
- SS–5:
-
- Social Security Number request, No social security number., No social security number.
- W–10, Getting the information.
- W–2:
-
- Box 12 with code L, Who does not need to use this chapter., Allowance MORE than the federal rate., Reimbursements.
- Election precinct officials' fees, Election precinct official.
- Employer retirement plan participation indicated, Are You Covered by an Employer Plan?
- Employer-reported income statement, Form W–2., Form W–2., Withholding, Important Reminder, Form W–2., Back pay awards., Accrued leave payment., Restricted Property, Stock you chose to include in income.
- Filing with return, Forms W–2 and W–2G.
- Fringe benefits, Form W–2., Long-term care coverage., Archer MSA contributions., Adoption Assistance
- Recordkeeping, What Records Should
I Keep?
- Reimbursements reported as part of income, Reimbursement for personal expenses., Per diem allowance MORE than federal rate., Reporting your expenses under a nonaccountable plan.
- Reimbursements reported as part of income| Incorrect reporting of reimbursements, Who does not need to use this chapter., Employee meets accountable plan rules.
- Separate form from each employer, Form W–2
- Statutory employees, Statutory employees.
- Uncollected taxes, Giving your employer money for taxes.
- Withheld state and local taxes, Withheld taxes.
- W–2c:
-
- Corrected wage and tax statement, Form Not Correct
- W–2G:
-
- Gambling winnings withholding statement, Form W–2G., Withholding, Form W–2G, Form W–2G.
- Withheld state and local taxes shown on, Withheld taxes.
- W–4:
-
- Employee withholding allowance certificate, Determining Amount
of Tax Withheld Using Form W–4, New Form W–4., Who Does Not Have To Pay Estimated Tax
- Filling out form and worksheets, Completing Form W–4
and Worksheets
- W–4P:
-
- Pensions and annuities withholding certificate, More information.
- Rollover distributions, election not to have tax withheld, Withholding and estimated tax.
- W–4S:
-
- Sick pay withholding request, Form W–4S.
- W–4V:
-
- Unemployment compensation, voluntary withholding request, Unemployment Compensation, Federal Payments
- W–5, Advance Earned Income Credit
- W–7:
-
- Individual taxpayer identification number request, Born and died in 2003.
- W–7A:
-
- Adoption taxpayer identification number request, Adoption taxpayer identification number (ATIN)., Taxpayer identification numbers for aliens.
- W–9:
-
- TIN of home seller and purchaser, Home mortgage interest and points.
- Forms, Important Changes
-
- (see also Tax returns)
- Foster care:
-
- Adoption as motive for, no charitable deduction, Foster parents.
- Care providers' payments, Foster-care providers.
- Charitable deduction for nonprofit care, Foster parents.
- Child tax credit, Eligible foster child.
- Dependency exemption for:
-
- Member of household test, Foster child.
- Support test, Foster care payments and expenses.
- Difficulty-of-care payments, Difficulty-of-care payments.
- Emergency foster care, maintaining space in home for, Maintaining space in home.
- Expenses unreimbursed and not deductible as charitable contributions, Foster parents.
- Foster child
-
- Earned Income Credit, Eligible foster child.
- Foster Grandparent Program, National Senior Services Corps programs.
- Fractional shares:
-
- Payment for, Fractional shares.
- Fraternal societies:
-
- Charitable contributions to, Types of Qualified Organizations
- Dues, no charitable deduction, , Contributions From
Which You Benefit
- Fraud:
-
- Losses due to, Theft
- Penalties, Fraud., Penalties
- Reporting anonymously to IRS, Important Reminders
- Freight:
-
- Basis to include, Cost Basis
- Fringe benefits:
-
- Accident and health insurance, Accident or Health Plan
- Accounting period, Accounting period.
- Adoption, employer assistance, Adoption Assistance
- Archer MSA contributions, Archer MSA contributions.
- De minimis benefits, De Minimis (Minimal) Benefits
- Education assistance, Educational Assistance
- Employer-provided vehicles, Employer-Provided Vehicles
- Form W–2, Form W–2.
- Group-term life insurance premiums, Group-Term Life Insurance Premiums
- Holiday gifts, Holiday gifts.
- Retirement planning services, Retirement Planning Services
- Taxable income, Fringe Benefits
- Transportation, Transportation
- Withholding, Taxable Fringe Benefits
- Frozen deposits:
-
- Interest on, Interest on frozen deposits.
- IRA rollover period extension, Extension of rollover period.
- Fuels:
-
- Clean-fuel vehicles, Deduction for clean-fuel vehicle and refueling property.
- Full-time student
-
- Child and dependent care credit, Full-time student.
- Fund-raising events:
-
- Charitable contributions, amount deductible, Contributions From
Which You Benefit
- Rental of dwelling unit used as home, Donation of use of property.
- Funerals:
-
- Clergy, payment for, Clergy
- Expenses, Do Not Include in Total Support, List of Nondeductible Expenses
- Expenses:
-
- Contributions to cover, not deductible as charitable donations, Contributions To Individuals
- Not deductible,
- Future interests:
-
- Definition of, Future interest.
- Tangible personal property, charitable deduction for, Future interests in tangible personal property.
G
- Gains and losses, You can use Form 1040A if all of the following apply., Special Rules, Reporting Gains and Losses
-
- (see also Capital gains)
- (see also Capital gains or losses)
- (see also Capital losses)
- Gains and losses:
-
- Casualty (see Casualty losses)
- Claim for refund for loss, Exceptions for special types of refunds.
- Collectibles, Collectibles gain or loss.
- Financial institution's bankruptcy causing deductible loss, Loss on Deposits
- Financial institution's bankruptcy causing deductible loss:
-
- Reporting of, Loss on deposits.
- Gambling, Gambling Losses Up to the
Amount of Gambling Winnings (see Gambling winnings and losses)
- Hobby losses, Hobby losses.
- Ordinary gain and loss, Capital or Ordinary
Gain or Loss
- Ordinary loss, Capital or Ordinary
Gain or Loss
- Ordinary loss:
-
- Bank deposit, loss due to bank's insolvency or bankruptcy, Ordinary loss or casualty loss., Casualty loss or ordinary loss.
- Passive activity, Rental activity losses., Passive Activity Limits, Passive activity gains and losses.
-
- (see also Passive activity)
- Related party sale or trade of depreciable property, Gain on sale or trade of depreciable property.
- Short-term, Character of gain or loss., Short-term gains and losses.
- Short-term:
-
- Priority in deducting, Use short-term losses first.
- Sale or trade of property held 1 year or less, Long term or short term.
- Theft (see Theft losses)
- Total net gain, Total net gain or loss.
- Gambling winnings and losses, Gambling winnings., Gambling Losses Up to the
Amount of Gambling Winnings
- Gambling winnings and losses:
-
- Form 1040, Form W–2G.
- Withholding, Gambling Winnings, Form W–2G
- Garbage pickup:
-
- Deductibility (Table 25–1),
- Garnishment and attachment, Garnisheed wages.
- Gas royalties, Oil, gas, and minerals.
- Gas-guzzler tax:
-
- Adjustment to basis for, Decreases to Basis
- Gems:
-
- As capital assets, Capital Assets and Noncapital Assets
- IRA prohibited transactions in, Collectibles.
- General business credit, Credits.
- General Rule (see Annuities)
- GI Bill:
-
- Support test for dependents, Tuition payments and allowances under the GI Bill.
- Gift taxes:
-
- Not deductible, Taxes and Fees
You Cannot Deduct
- Gifts:
-
- $25 limit on business-related expenses, $25 limit.
- $4 or less for business-related expenses, Exceptions.
- Adjusted basis for, Property Received as a Gift
- Business-related expenses, Gift or entertainment., Gift Expenses, Gift or entertainment.
- Children, income from property given to, Income from property received as a gift.
- Disaster victims receiving cash gifts, Cash gifts.
- Holding period, determination of, Property received as a gift.
- Holiday gifts, Holiday gifts.
- Incidental costs of business-related expenses, Incidental costs.
- Not taxed, Gifts and inheritances., Gifts and inheritances.
- Proof of expenses (Table 29–2 summary), Table 28–2. How To Prove Certain Business Expenses
- Recordkeeping requirements, Recordkeeping
- Reporting of expenses, Gifts.
- Reporting of expenses:
-
- Table 29–3 showing forms to be used, Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Right to income in respect of decedent, Giving your right to income as a gift.
- Schedule A (Form 1040) for deduction, Gifts.
- To reduce the public debt, Gift To Reduce the
Public Debt
- Girl Scouts:
-
- Charitable contributions to, Examples.,
- Glasses:
-
- As medical expense,
- Gold and silver:
-
- As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc.
- Capital gains or losses from sale or trade of, Collectibles gain or loss.
- IRA investments in, Exception.
- Golden parachute payments:
-
- Tax on, Other taxes.
- Golf clubs (see Country clubs)
- Goodwill Industries (see Charitable contributions)
- Government employees
-
- Federal (see Federal employees)
- State (see State or local governments)
- Graduate school, Qualified Education Expenses
-
- (see also Educational assistance)
- Tuition deduction (see Tuition)
- Grants (see Scholarships and fellowships)
- Grants, disaster relief, Disaster relief grants.
- Gratuities (see Tip income)
- Gross income:
-
- Adjustments other than on Form 1040A, Form 1040 to be used, You must use Form 1040 if any of the following apply.
- Age, higher filing threshold after 65, Age.
- Defined, Gross income., Gross income defined.
- Defined:
-
- Filing requirements (Table 1–1),
- Dependency exemption, test for, Gross Income Test
- Dependent filing requirements (Table 1–2),
- Rental income, Rental Income
- Group-term life insurance:
-
- Accidental death benefits, Accidental death benefits.
- Definition, Group-term life insurance.
- Exclusion from income, Entire cost excluded.
- Exclusion from income:
-
- Limitation on, Group-Term Life Insurance Premiums
- Permanent benefits, Permanent benefits.
- Taxable cost, calculation of, Figuring the taxable cost.
- Uncollected social security/Medicare taxes, You must use Form 1040 if any of the following apply.
- Uncollected social security/Medicare taxes:
-
- Reporting of (Table 1–3),
- Uncollected tax, Other taxes.
- Guam:
-
- Income from, Individuals With Income From
U.S. Possessions
- Guide dogs:
-
- Deductibility as medical expense,
H
- H.R. 10 plans, Qualified plans for self-employed individuals.
- Handicapped persons (see Disabilities, persons with)
- Hardship distributions:, Hardship distributions.
-
- Retirement plans, Important Reminders
- Hawaii:
-
- Standard meal allowance, Standard meal allowance for areas outside the continental United States.
- Head of household:, Head of household or qualifying widow(er) with dependent child., Head of Household
-
- Cost of keeping up home, Keeping Up a Home
- Cost of keeping up home:
-
- Worksheet,
- Filing requirements (Table 1–1), How to file.
- How to file, How to file.
- Kidnapped child, Kidnapped children.
- Qualifying person to file as, Qualifying Person
- Qualifying person to file as:
-
- Summary (Table 2–1), Table 2–1. Who Is a Qualifying Person for Filing as Head of Household? 1
- Qualifying surviving spouse with dependent child, Qualifying Widow(er)
With Dependent Child
- Health coverage tax credit, Who Should File, Important Changes for 2003, Health Coverage Tax Credit
- Health insurance, Accident or Health Plan
-
- (see also Accident insurance)
- Health insurance credit, Important Reminders
- Health insurance:
-
- Auto insurance policy covering, not deductible as medical expense,
- Elderly persons, credit, Important Changes for 2003
- Premiums:
-
- Credit for workers displaced by foreign trade or receiving pension from PBGC, Important Changes
- Deductible as medical expense,
- Dependents, Medical insurance premiums.
- Self-employed persons, deductible expenses, Important Changes for 2003, Important Changes, Health Insurance Costs for Self-Employed
Persons
- Reimbursement, Insurance Reimbursement
- Health Spa, Health Spa Expenses
- Hearing aids:
-
- As medical expense,
- Hedging transactions, Capital Assets and Noncapital Assets
- Help (see Tax help)
- High income taxpayers:
-
- Estimated tax, Special rules for farmers, fishermen, and higher income taxpayers.
- High-low rate method to compute per diem, High-low rate.
- Higher education (see Colleges and universities)
- Hobbies, Hobby Expenses
- Hobbies:
-
- Activity not for profit, Activity not for profit.
- Losses, Hobby losses.
- Holding period:
-
- Determination of, Holding Period
- Holiday gifts, Holiday gifts.
- Holiday, deadline falling on, Saturday, Sunday, holiday rule.
- Holocaust victims restitution, Important Reminders, Holocaust victims restitution.
- Home, Personal Use of
Dwelling Unit
(Including Vacation Home), Dwelling Unit
Used as Home, Examples, How To Divide Expenses, Moving Expenses, Home Mortgage
Interest, Fully deductible interest., Refinancing., Nonbusiness Casualty and Theft Losses
-
- (see also Casualty losses)
- (see also Mortgages)
- (see also Moving expenses)
- (see also Refinancing)
- (see also Vacation homes)
- Damage to (see Casualty losses)
- Points, Points on home mortgage.
- Home equity loans:
-
- Car purchased by, Interest on car loans.
- Interest deduction, Home Mortgage
Interest, Fully deductible interest.
- Proceeds invested in tax-exempt securities, interest not deductible, Mortgage proceeds invested in tax-exempt securities.
- Home improvement loans, Home improvement loan.
- Home office:
-
- Capital gains exclusion, Business Use or
Rental of Home
- Travel to another work location, Office in the home.
- Home schooling:
-
- Expenses not deductible, Qualified expenses.
- Home:
-
- Abandonment of, Abandonment.
- Acquisition debt, Fully deductible interest.
-
- (see also Mortgages)
- As capital asset, Capital Assets and Noncapital Assets
- Basis (see Sale of home)
- Business use of, Home Office
- Closing costs, Settlement fees or closing costs.
- Cost of keeping up, Keeping Up a Home
- Cost of keeping up:
-
- Worksheet,
- Foreclosure, Foreclosure or repossession.
- Improvements:
-
- For medical care, deductibility,
- Loans for, Home improvement loan.
- Jointly owned, Home jointly owned.
- Jointly owned:
-
- Mortgage payments as alimony, Payments for jointly-owned home.
- Separate residences in and alimony payments, Spouses cannot be members of the same household.
- Taxes and insurance premiums as alimony, Taxes and insurance.
- Main home, defined, Main Home
- Office, Home Office
- Possession before final settlement, rent not deductible as interest, Rental payments.
- Repossession, Foreclosure or repossession.
- Security system, Home Security System
- Settlement fees, Settlement fees or closing costs.
- Tax home, determination for travel-related business expenses, Tax Home
- Tenants in common, taxes and insurance premiums as alimony, Taxes and insurance.
- Homeowners' associations:
-
- Charges, Homeowners' association charges.
- Charges:
-
- Deductibility (Table 25–1),
- Charitable contributions to, , Contributions To Nonqualified Organizations
- Homeworkers:
-
- Deduction of expenses, Statutory employees.
- Hope credit:, Hope Credit
-
- Claiming the credit, Claiming the Credit
- Comparison with lifetime learning chart (Table 37–1),
- Eligible student, Who Is an Eligible Student, Enrolled at least half-time.
- Figuring the credit, Figuring the Credit
- Married filing separately, Special Rules
- Tuition deduction and, Who Cannot Take the Deduction?
- Hospitals:
-
- Charitable contributions to nonprofits, Examples.,
- Charitable contributions to nonprofits:
-
- 50% limit on deduction, 50% limit organizations.
- Meals and lodging provided for patients, deductibility,
- Payments for services for specific patient, not deductible as charitable contributions, Contributions To Individuals
- Services fees, deductibility of medical expense,
- Hotels:
-
- Club dues:
-
- Not entertainment expenses, Club dues and membership fees.
- Not considered dwelling units, Dwelling unit.
- Household employees, Employment Taxes
for Household Employers
- Household furnishings
-
- Antiques (see Collectibles)
- Household furnishings:
-
- As capital assets, Capital Assets and Noncapital Assets
- Household members, Head of household or qualifying widow(er) with dependent child., Head of Household
-
- (see also Head of household)
- Household members:, Member of Household
or Relationship Test
-
- Adoption, Adoption.
- Alimony payments, spouses not to be members of same household, Spouses cannot be members of the same household.
- Cousin, Cousin.
- Death or birth, Death or birth.
- Foster child, Foster child.
- Joint return, Joint return.
- Local law violated, Local law violated.
- Relatives who do not have to live with you, Relatives who do not have to live with you.
- Temporary absences, Temporary absences.
- Household services, Care of a Qualifying Person, Household services.
- Household workers (see Domestic help)
- Housing, Keeping Up a Home, Personal Use of
Dwelling Unit
(Including Vacation Home), Dwelling Unit
Used as Home, Examples, How To Divide Expenses
-
- (see also Home)
- (see also Vacation homes)
- Cooperative (see Cooperative housing)
- Rental property (see Rental income and expenses)
- Housing:
-
- Alimony payments made to cover, Payments to a third party.
- Clergy, Clergy
- Military quarters allotments, Tax-exempt military quarters allowances.
- Hurricanes, Disaster relief.
-
- (see also Disaster relief)
- Hurricanes:
-
- Casualty loss due to, Deductible losses.
I
- Icons, use of, Icons., Introduction
- Identification number, qualifying person, Taxpayer identification number.
- Illegal income:
-
- Reporting of, Illegal income.
- Impairment (see Disabilities, persons with)
- Impairment-related work expenses, Impairment-related work expenses., Impairment-Related
Work Expenses
- Important changes:
-
- Adoption of special needs child, Important Changes for 2003
- Capital gains rates, Important Changes for 2003, Important Change for 2003
- Child and dependent care credit, Important Changes for 2003
- Child tax credit, Important Changes for 2003
- Dividends, Important Changes for 2003, Dividends and Other Corporate Distributions
- Earned Income Credit, Important Changes for 2003
- Exemption amount, Important Changes for 2003
- Hope credit, Important Changes for 2003
- Lifetime learning credit, Important Changes for 2003, Important Changes for 2003
- Limit on itemized deduction, Important Changes for 2003
- Married filing joint standard deduction, Important Changes for 2003
- Self-employed persons' health insurance, Important Changes for 2003
- Social security and Medicare taxes, Important Changes for 2003
- Standard deduction, Important Changes for 2003
- Standard mileage rates, Important Changes for 2003, Important Changes for 2004
- Tax rate reduction, Important Changes for 2003
- Tuition and fees deduction, Important Changes for 2004, Important Change for 2004
- Improvements
-
- Rental property (see Rental income and expenses)
- Improvements:
-
- Real estate, adjustments to basis for, Improvements.
- Incidental expenses:
-
- Business-related gifts, Incidental costs.
- Travel-related, Incidental expenses.
- Income, Gross income., You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply., Gross income defined., Wages, Salaries, and Other Earnings
-
- (see also Children)
- (see also Gross income)
- (see also Wages and salaries)
- Rental (see Rental income and expenses)
- Tips (see Tip income)
- Income aid payment, Repayment of
Income Aid Payment
- Income in respect of decedent (IRD):, Income in Respect
of the Decedent
-
- Archer MSA, Archer MSA.
- Coverdell ESA, Coverdell education savings account (ESA).
- Fair market value, Fair market value (FMV).
- Giving right to income, Giving your right to income as a gift.
- How to report, How To Report
- Inherited IRAs:
-
- Roth, Roth IRAs.
- Traditional, Inherited IRAs.
- Other income, Other income.
- Transfer of right to, Transferring your right to income.
- Type of, Type of income.
- Income taxes (see Federal income tax) (see Foreign income taxes) (see State or local income taxes)
- Income-producing expenses, Other Expenses (Line 22)
- Income-producing property:
-
- Deduction of interest on loan for, Income-producing rental or royalty interest.
- Income:, Other Income, Alimony., Utility rebates.
-
- (see also Alimony)
- Bartering, Bartering
- Canceled debts, Canceled Debts
- Constructive receipt of, Constructive receipt., Payment to an agent., Constructive receipt.
- Excess reimbursement of medical expenses, Excess reimbursement.
- Illegal income, Illegal income.
- Interest, Interest Income
- Investment income, Investment income defined.
- Jury duty pay, Jury duty.
- Life insurance proceeds, Life Insurance Proceeds
- Nonemployee compensation, Nonemployee compensation.
- Paid to agent, Payment to an agent.
- Paid to third party, Payment to third party.
- Partnership, Partnership income., Partnership Income
- Prepaid, Income paid in advance.
- Recovery, Recoveries
- Royalties, Royalties
- S corporation, S corporation income., S Corporation Income
- Self-employment, Self-employment income., Coverdell Education Savings Account (ESA)
- Tax exempt, Tax-exempt income.
- Taxable income in excess of $50,000, You must use Form 1040 if any of the following apply.
- Taxable income less than $50,000, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply.
- Underreported, Amended Returns and
Claims for Refund
- Indefinite absence:
-
- Work-related education during, Indefinite absence.
- Independent contractors:
-
- Homeworkers, deduction of expenses, Statutory employees.
- Indians:
-
- Employment credit, recapture of:
-
- Filing requirements (Table 1–3),
- Fishing rights, Indian fishing rights.
- Taxes collected by tribal governments, deduction of, Indian tribal government.
- Individual retirement arrangements (IRAs), Rollovers, Individual Retirement Arrangements (IRAs), Important Reminders, Rollovers, Roth IRAs, More information.
-
- (see also Rollovers)
- (see also Roth IRAs)
- Distributions
-
- Required minimum distributions (see this heading: Required distributions)
- Early distributions (see Early withdrawal from deferred interest account)
- Married couples (see this heading: Spousal IRAs)
- Penalties
-
- Early distributions (see Early withdrawal from deferred interest account)
- Withdrawals
-
- Early (see Early withdrawal from deferred interest account)
- Required (see this heading: Required distributions)
- Individual retirement arrangements (IRAs):
-
- Administrative fees, Trustees' fees., Trustees' fees., Trustee's Administrative
Fees for IRA
- Age 59½ for distribution, Age 59½ rule.
- Age 59½ for distribution:
-
- Exception to rule, Exceptions.
- Age 70½:
-
- Contributions cut off at, Age 70½ rule.
- Distributions required at, IRA owners., Excess Accumulations
(Insufficient Distributions)
- Compensation, defined, What is compensation?
- Contribution limits, How Much Can Be
Contributed?, General limit.
- Contribution limits:
-
- Age 50 or older, $3,500, General limit.
- Under age 50, $3,000, General limit.
- Contributions, You can use Form 1040EZ if all of the following apply., Special Rules, Individual retirement arrangements (IRAs).
- Contributions:
-
- Credit, Important Reminders, Important Reminders
- Designating year for which contribution is made, Designating year for which contribution is made.
- Excess, Excess Contributions
- Filing before contribution is made, Filing before a contribution is made.
- Nondeductible, Nondeductible Contributions
- Not required annually, Contributions not required.
- Roth IRA contribution for same year, How Much Can Be
Contributed?, Roth IRAs and traditional IRAs.
- Time of, When Can Contributions Be Made?
- Withdrawal before filing due date, Contributions returned before the due date of return.
- Cost basis, Cost basis., Partly taxable.
- Deduction for, You can use Form 1040A if all of the following apply., How Much Can You Deduct?
- Deduction for:
-
- Filing status and, Deduction phaseout.
- Participant covered by employer retirement plan (Table 18–1),
- Participant not covered by employer retirement plan (Table 18–2),
- Phaseout, Important Changes for 2003, Deduction phaseout.
- Deemed IRAs, Important Changes for 2003, Important Changes for 2003
- Definition of, Traditional IRAs, What Is a Traditional IRA?
- Distributions:
-
- At age 59½, Age 59½ rule., Exceptions.
- Divorced taxpayers, Transfers Incident to Divorce
- Education IRAs (see Coverdell ESAs)
- Employer retirement plan participants, Important Changes for 2004, Covered by an employer retirement plan., Limit If Covered by Employer Plan
- Establishing account, Who Can Set Up
a Traditional IRA?
- Establishing account:
-
- Time of, When and How Can a Traditional IRA Be Set Up?
- Where to set up account, When and How Can a Traditional IRA Be Set Up?
- Excess contributions, Excess Contributions
- Figuring modified AGI (Worksheet 18–1),
- Forms to use:
-
- Form 1099–R for reporting distributions, The 1099 Series, Distributions reported on Form 1099–R.
- Form 8606 for nondeductible contributions, Important Reminders
- Inherited IRAs, Inherited IRAs., Inherited pension or IRA., Inherited IRAs, Inherited IRAs., Inherited IRAs.
- Inherited IRAs:
-
- Conversion to Roth IRAs, Inherited IRAs.
- Required distributions, Beneficiaries.
- Interest on, treatment of, Important Reminders
- Modified adjusted gross income (MAGI):
-
- Computation of, Modified adjusted gross income (AGI).
- Effect on deduction if covered by employer retirement plan (Table 18–1),
- Effect on deduction if not covered by employer retirement plan (Table 18–2),
- Worksheet 18–1,
- Nondeductible contributions, Nondeductible Contributions
- Nondeductible contributions:
-
- Early withdrawal, Nondeductible contributions.
- Tax on earnings on, Tax on earnings on nondeductible contributions.
- Ordinary income, distributions as, Ordinary income.
- Penalties, What Acts Result in Penalties or Additional Taxes?
- Penalties:
-
- Excess contributions, Excess Contributions
- Form 8606 not filed for nondeductible contributions, Important Reminders, Penalty for failure to file Form 8606.
- Overstatement of nondeductible contributions, Penalty for overstatement.
- Prohibited transactions, Effect on an IRA account.
- Required distributions, failure to take, When Must You Withdraw IRA Assets? (Required Minimum Distributions), Excess Accumulations
(Insufficient Distributions)
- Prohibited transactions, Prohibited Transactions
- Recharacterization of contribution, Recharacterizations
- Reporting of:
-
- Distributions, Reporting taxable distributions on your return.
- Filing requirements (Table 1–3),
- Recharacterization of contributions, Reporting a recharacterization.
- Required distributions, Required distributions., When Must You Withdraw IRA Assets? (Required Minimum Distributions)
- Required distributions:
-
- Excess accumulations, Excess Accumulations
(Insufficient Distributions)
- Retirement savings contribution credit, Special Rules, Retirement Savings Contributions Credit
- Self-employed persons, Self-employment income.
- Spousal IRAs, Important Reminders, Important Reminders, Spousal IRA limit., Spousal IRA., If your spouse is covered.
- Taxability, Exceptions.
- Taxability:
-
- Distributions, Are Distributions Taxable?
- Time of taxation, Traditional IRAs
- Transfers permitted, Can You Move Retirement Plan Assets?
- Transfers permitted:
-
- To Roth IRAs, Transfers to Roth IRAs., Converting From Any Traditional IRA to a Roth IRA
- Trustee administrative fees, Trustee's Administrative
Fees for IRA
- Trustee-to-trustee transfers, Trustee-to-Trustee Transfer
- Trustee-to-trustee transfers:
-
- IRA to Roth IRA, Conversion methods.
- Types of, Kinds of traditional IRAs.
- Withdrawals, When Can You Withdraw or Use IRA Assets?, How to treat withdrawn contributions.
- Withholding, Form W–2., Pensions and Annuities, Withholding.
- Individual taxpayer identification numbers (ITINs), Individual taxpayer identification number (ITIN)., Born and died in 2003.
- Individual taxpayers (see Single taxpayers)
- Information returns, Form W–2., Form 1099., Form W–2., Interest and Dividend Income
(Forms 1099), Backup Withholding, Withholding, Important Reminder, Back pay awards., Accrued leave payment., Stock you chose to include in income.
-
- (see also Form 1099)
- (see also Form W–2)
- Information returns:
-
- Partnerships to provide, Schedule K–1 (Form 1065).
- Inheritance, Estate and trust income.
-
- (see also Estate beneficiaries)
- IRAs (see Individual retirement arrangements (IRAs))
- Inheritance tax:
-
- Deductibility of, Taxes and Fees
You Cannot Deduct
- Inheritance:
-
- Adjusted basis for, Inherited Property
- Holding period, determination of, Inherited property.
- IRAs (see Individual retirement arrangements (IRAs))
- Not taxed, Gifts and inheritances., Gifts and inheritances.
- Injured spouse, Joint return and injured spouse.
- Injured spouse:
-
- Claim for refund, Exceptions for special types of refunds.
- Innocent spouse relief:
-
- Form 8857, Relief from joint liability.
- Joint returns, Relief from joint liability.
- Insolvency:
-
- Canceled debt not deemed to be income, Excluded debt.
- Financial institution's insolvency causing deductible loss, Deposit in Insolvent or Bankrupt Financial Institution
-
- Reporting of, Loss on deposits.
- Installment agreements, Installment Agreement
- Installment sales, Sales not discussed in this chapter.
- Installment sales:
-
- Capital gains and, Installment sales.
- Home sale, Installment sale.
- Insulin:
-
- Deductibility as medical expense,
- Insurance, Medical insurance premiums.
-
- (see also Health insurance)
- Accident (see Accident insurance)
- Life (see Group-term life insurance) (see Life insurance)
- Premiums (see Insurance premiums)
- Insurance agents:
-
- Deduction of expenses, Statutory employees.
- Insurance companies:
-
- State delinquency proceedings, IRA distributions not made due to, Exemption from tax.
- Insurance premiums:
-
- Alimony when spouse owns life insurance policy, Life insurance premiums.
- FHA mortgage insurance premiums, not deductible, Items You
Cannot Deduct
- Fire insurance, Settlement costs.
- Health insurance, Medical insurance premiums.
- Health insurance:
-
- Credit for workers displaced by foreign trade or receiving pension from PBGC, Important Changes
- Deductible as medical expense,
- Self-employed persons, deductible, Important Changes for 2003, Important Changes, Health Insurance Costs for Self-Employed
Persons
- Home, Homeowners' Insurance Premiums
- Homeowners', Homeowners' Insurance Premiums
- Liability, Business Liability Insurance
- Life, Life Insurance Premiums
- Life insurance,
- Life insurance:
-
- Alimony, Life insurance premiums.
- Mortgage, Homeowners' Insurance Premiums
- Mortgages, Amounts charged for services.
- Paid in advance, Prepaid insurance premiums.
- Rental expenses, deduction of premiums paid in advance, Insurance premiums paid in advance.
- Insurance proceeds:
-
- Dividends, interest on, Interest on insurance dividends.
- Installment payments, Insurance
- Life, Insurance
- Insurance:, Pensions and Annuities
-
- (see also Life insurance)
- Alimony deduction for, when home owned as tenants in common, Taxes and insurance.
- Casualty or theft loss, reimbursement to adjust loss, Insurance and Other
Reimbursements
- Distributions from, reporting of, Dividends on insurance policies.
- Dividends:
-
- Interest on, Dividends on insurance policies.
- Form 1099–R to report benefits, The 1099 Series
- Living expenses paid by, possible income from, Insurance payments for living expenses.
- Reimbursements:
-
- As adjustment to basis, Decreases to Basis
- From casualty insurance, Casualty insurance and other reimbursements.
- State insurer delinquency proceedings preventing minimum pension distributions, State insurer delinquency proceedings.
- Trade of policies and annuities, Insurance policies and annuities.
- Withholding against benefits, Form W–2.
- Interest income:, Interest Income
-
- Children:
-
- Gifts to children, Income from property received as a gift.
- Deceased taxpayer, reporting of, Interest and Dividend Income
(Forms 1099)
- Dividends as, Introduction
- Form 1099–INT, Form 1099., The 1099 Series
- Frozen deposits, from, Interest on frozen deposits.
- Property purchase financed without adequate stated interest, treatment of, How To Figure
Gain or Loss
- Recovery of income, on, Interest on recovery.
- Reporting on Forms 1040, 1040A, or 1040EZ, Important Reminders, You can use Form 1040A if all of the following apply.
- Reporting on Forms 1040, 1040A, or 1040EZ:
-
- Form 1040EZ filing threshold, Important Reminders, You can use Form 1040EZ if all of the following apply.
- Savings bonds, Interest and Dividend Income
(Forms 1099), Interest on qualified savings bonds.
-
- (see also U.S. savings bonds)
- Securities, Form 1040 to be used, You must use Form 1040 if any of the following apply.
- Tax refunds, from, Interest on erroneous refund.
- Interest payments, Form 1098., Mortgage interest refund.
-
- (see also Mortgages)
- Interest payments:, Interest Expense, Income-producing rental or royalty interest.
-
- Allocation of interest according to use of loan, Allocation of Interest
- Canceled debt including, Interest included in canceled debt.
- Car loans, Interest on car loans.
- Deductions:
-
- Forms to use (Table 25–1), Mortgage proceeds used for business or investment.,
- Not allowed, Items You
Cannot Deduct
- Reporting of, How To Report
- Investment interest, Investment Interest
- Investment interest:
-
- Limit on deduction, Limit on Deduction
- Personal interest not deductible, Important Reminders, Items You
Cannot Deduct, Personal Interest
- Reporting of deductions, How To Report
- Student loans deduction, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply., Special Rules, Student Loan Interest Deduction, Important Reminders, Personal Interest
- Unstated interest, Loans with low or no interest., How To Figure
Gain or Loss
- Interest:
-
- Fees to collect, Fees to Collect
Interest and Dividends
- Frozen deposits, Interest income on frozen deposits.
- Usurious, Usurious interest.
- Interference with business operations:
-
- Damages as income, Court awards and damages.
- Internal Revenue Service (IRS):
-
- Fraud or misconduct of employee, reporting anonymously, Important Reminders
- Mission of, IRS mission.
- Underpayment penalties, computation by, Underpayment Penalty
- Web site of, Help from the IRS., Free tax services.
- International employment (see Foreign employment)
- International organizations, employees of, Employees of international organizations or foreign governments.
- Internet
-
- Electronic filing over (see E-file)
- Internet:
-
- Standard meal allowance rates, Amount of standard meal allowance.
- Web site of IRS, Help from the IRS., Free tax services.
- Inventory, retail, Capital Assets and Noncapital Assets
- Investment property
-
- Rental property (see Rental income and expenses)
- Investments:
-
- Classes as travel expenses, Conventions
- Expenses, Investment expenses.
- Fees, Investment Fees and Expenses
- Property
-
- As capital asset, Investment Property
- Definition, Investment Property
- Like-kind exchanges, Like-kind exchanges.
- Seminars, Investment-Related Seminars
- Involuntary conversion, Condemnations., Deductible losses.
-
- (see also Condemnation of property)
- Involuntary conversion:
-
- Basis computation, Involuntary Conversions
- IRAs (see Individual retirement arrangements (IRAs))
- Israel:
-
- Contributions to charitable organizations in, Certain foreign charitable organizations., Contributions To Nonqualified Organizations
- Itemized deductions:
-
- "IE" written on Form 1040, Electing to itemize for state tax or other purposes.
- Adjusted gross income limiting, Important Changes
- Changing from standard to itemized deduction (or vice versa), Changing your mind.
- Choosing to itemize, Who Should Itemize, When to itemize.
- Final return for decedent, Itemized Deductions
- Form 1040 to be used, You must use Form 1040 if any of the following apply., Where to report.
- Limit, Limit on Itemized Deductions
- Limits on, Special Rules
- Limits on:
-
- Charitable donations, deduction for, Important Reminders
- Home mortgage interest, Important Reminders
- Married filing separately, Special Rules, Married persons who filed separate returns.
- Married filing separately:
-
- One spouse has itemized, Persons not eligible for the standard deduction.
- Recovery, Itemized Deduction Recoveries
- Standard deduction to be compared with, Who Should Itemize
- State tax, for, Electing to itemize for state tax or other purposes.
- Itinerant workers:
-
- Deduction of expenses, Statutory employees.
- Tax home, determination of, Tax Home
- ITINs, Individual taxpayer identification number (ITIN) for aliens. (see Individual taxpayer identification numbers (ITINs))
J
- Jewelry:
-
- As capital assets, Capital Assets and Noncapital Assets
- Job (see headings starting with "Employee" or "Employer")
-
- Search
-
- Deduction of expenses for Interviews, Job interview expenses.
- Expenses, Job Search Expenses
- Joint accounts, Joint accounts.
- Joint accounts:
-
- Dividends, reporting of, Stock certificate in two or more names.
- Joint returns:
-
- Accounting period, Accounting period.
- After separate return, Joint Return After
Separate Returns
- Carryover of capital loss, Joint and separate returns.
- Deceased spouse, Spouse died during the year., Filing the return., Joint return., Joint return by surviving spouse.
- Deceased spouse:
-
- Personal representative may revoke election, Personal representative may revoke joint return election.
- Dependency exemption, Joint return., Joint Return Test
- Divorced taxpayers, Divorced persons., Divorced taxpayer.
- Estimated tax, Married taxpayers.
- Excess social security/railroad retirement tax withholding credit, Joint return.
- Extension for citizens outside U.S., Married taxpayers.
- Filing status, Married Filing Jointly
- Form 1040EZ, use of, You can use Form 1040EZ if all of the following apply.
- Fraud penalty, Joint return.
- Guardian of spouse, signing as, Signing as guardian of spouse.
- Injured spouse, Joint return and injured spouse.
- Injured spouse:
-
- Claim for refund, Exceptions for special types of refunds.
- Innocent spouse, Relief from joint liability.
- Investment income of child under age 14, Which Parent's
Return To Use
- Nonresident or dual-status alien spouse, Nonresident alien or dual-status alien.
- Pensions or annuities, Joint return.
- Pensions or annuities:
-
- Worksheet,
- Personal exemption, Married persons., Joint return.
- Responsibility for, Important Reminders, Accounting period.
- Separate return after joint, Separate Returns After
Joint Return
- Signing, Spouse unable to sign., Signing a joint return.
- Signing:
-
- Deceased spouse, Signing the return.
- Social security and railroad retirement benefits, Joint return.
- State and local income taxes, deduction of, Joint federal return.
- Judges, federal:
-
- Employer retirement plan coverage, Federal judges.
- Jury duty pay, Jury duty.
K
- Keogh plans, Retirement Plans, Pensions, and Annuities
-
- (see also Retirement plans)
- Keogh plans:, Qualified plans for self-employed individuals.
- Kickbacks, Kickbacks.
- Kiddie tax (see Children, subheading: Investment income of child under age 14)
- Kidnapped children, Important Reminders, Kidnapped children., Kidnapped child.
-
- Losses due to ransom, Theft
- Kidnapped children:
-
- Child tax credit, Kidnapped child.
- Personal exemption, Kidnapped children.
L
- Labels, Peel-Off Address Label
- Labels:
-
- Address correction, Correcting the label.
- Social Security Number to be written on, Important Reminders
- Labor unions:
-
- Collective bargaining agreements, Union agreements.
- Contributions to, no charitable deduction for,
- Dues and fees, Union benefits and dues., Contributions To Nonqualified Organizations
- Sick pay withholding under union agreements, Union agreements.
- Strike and lockout benefits, Strike and lockout benefits.
- Trips from union hall to place of work, Union members' trips from a union hall.
- Unemployment compensation payments from, Payments by a union.
- Land, Real Property
-
- (see also Real estate)
- Land:
-
- Depreciation not allowed for, Land.
- Landlords (see Rental income and expenses)
- Landscaping:
-
- Cost of, when casualty or theft loss involved, Progressive deterioration., Landscaping.
- Larceny:
-
- Losses due to, Theft
- Late filing, Important Reminders, Late-filed return.
- Late filing:
-
- Penalties, Filing late., Filing late., Return over 60 days late.
- Late payment:
-
- Penalties on tax payments, Paying tax late.
- Public utility charges, not deductible, Personal Interest
- Laundry:
-
- Business-related travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes., Incidental expenses.
- Law enforcement officers:
-
- Life insurance proceeds when death in line of duty, Important Reminders, Public safety officer killed in the line of duty.
- Lead-based paint removal:
-
- Deductibility as medical expense,
- Leased property:
-
- Casualty or theft loss, Leased property.
- Leased vehicles:
-
- Car expenses, Leasing a car.
- Leases (see Rental income and expenses)
- Legal expenses, Legal Expenses, Personal Legal Expenses
- Liability insurance:
-
- Reimbursements from, Casualty insurance and other reimbursements.
- License and similar fees:, List of Nondeductible Expenses
-
- Deductibility of, Taxes and Fees
You Cannot Deduct
- Life insurance, You must use Form 1040 if any of the following apply., Accelerated Death Benefits, Group-term life insurance.
-
- (see also Accelerated death benefits)
- (see also Group-term life insurance)
- Life insurance:, Accelerated Death Benefits
-
- (see also Accelerated death benefits)
- Alimony, premiums when spouse owns policy, Life insurance premiums.
- Demutualization of companies, Demutualization of life insurance companies.
- Form 1099–R for surrender of policy for cash, Surrender of policy for cash.
- Premiums, Life Insurance Premiums
-
- Not deductible,
- Proceeds, Insurance
-
- As income, Life Insurance Proceeds
- Public safety officers who died or were killed in line of duty, tax exclusion, Important Reminders, Public safety officer killed in the line of duty.
- Surrender of policy for cash, Surrender of policy for cash.
- Withholding, Pensions and Annuities
- Life-care fees:
-
- Paid to retirement home and designated for medical care, deductibility,
- Lifetime learning credit:
-
- Amount of, Important Changes for 2003, Important Changes for 2003
- Claiming the credit, Claiming the Credit
- Comparison with Hope credit chart (Table 37–1),
- Eligible student, Who Is an Eligible Student
- Figuring the credit, Figuring the Credit
- Married filing separately, Special Rules
- Tuition deduction and, Who Cannot Take the Deduction?
- Like-kind exchanges, Like-Kind Exchanges, Like-kind exchanges.
- Limit on itemized deduction:
-
- 2003 changes, Important Changes for 2003
- Limits:
-
- Itemized deductions, Limit on Itemized Deductions
- Miscellaneous deductions, Deductions Subject
to the 2% Limit
- On credit, Limit on credit.
- Line of credit for home:
-
- Interest, Home Mortgage
Interest
- Liquidating distributions, Liquidating distributions.
- Living expenses:
-
- Insurance paying, possible income from, Insurance payments for living expenses.
- Loans, You can use Form 1040EZ if all of the following apply., Exceptions for special types of refunds., Student Loan Interest Deduction
-
- (see also Debts)
- (see also Student loans)
- Home mortgages (see Mortgages)
- Loans:, Personal Interest
-
- (see also Student loans)
- Fees for, not deductible, Items You
Cannot Deduct
- Home improvement loans, Home improvement loan.
- Origination fees (see Points)
- Retirement plans, from, Loans.
- Lobbying expenses, Lobbying Expenses
- Lobbying:
-
- Contributions for, not charitable deductions, , Contributions From
Which You Benefit
- Local assessments:
-
- Adjusted basis for, Assessments for local improvements.
- Deductibility of, Taxes for local benefits.
- Rental property, deductions for, Local benefit taxes.
- Local government employees
-
- Section 457 plans for employees (see Section 457 deferred compensation plans)
- Lockout benefits, Strike and lockout benefits.
- Lodges (see Social clubs)
- Lodging (see Meal and lodging expenses)
- Long-term care insurance contracts:, Long-Term Care
Insurance Contracts
-
- Chronically ill individual, Chronically ill individual., Exclusion for chronic illness.
- Deductibility of medical expense,
- Exclusion, limit of, Limit on exclusion.
- Qualified services defined, Qualified long-term care services.
- Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument).
- Long-term gains and losses (see Capital gains or losses)
- Losses, Rental activity losses., Passive Activity Limits (see Gains and losses)
-
- (see also Passive activity)
- Capital (see Capital losses)
- Casualty (see Casualty losses)
- Gambling (see Gambling winnings and losses)
- Theft (see Theft losses)
- Losses:
-
- Casualty, Certain Casualty and
Theft Losses, Certain Casualty and
Theft Losses
- Theft, Certain Casualty and
Theft Losses, Certain Casualty and
Theft Losses
- Lost property, Lost or Mislaid
Cash or Property
- Lost property:
-
- When deemed casualty loss, Mislaid or lost property.
- Lotteries and raffles, Gambling winnings., Lotteries and raffles.
-
- (see also Gambling winnings and losses)
- Lotteries and raffles:, Lotteries and raffles.
-
- No charitable deduction for tickets, , Contributions From
Which You Benefit
- Lump-sum distributions:, Lump-Sum Distributions
-
- 10-year tax option, 10-Year Tax Option
- Capital gain treatment, Capital Gain Treatment
- Cost calculation, Cost.
- Election of, Electing optional lump-sum treatment.
- Form 4972, Lump-Sum Distributions
- Net unrealized appreciation (NUA), Taxable and tax-free parts of the distribution., NUA.
- Rollovers of, How to treat the distribution.
- Taxable and tax-free parts, Taxable and tax-free parts of the distribution.
- Luxury travel:
-
- Travel expenses when incidental business activities, Trip Primarily for
Personal Reasons
- Work-related education, deduction of expenses, Cruises and conventions.
M
- M&IE (Meals and incidental expenses) (see Incidental expenses) (see Meal and lodging expenses)
- Machinery, Hauling tools or instruments.
-
- (see also Tools)
- Machinery:
-
- Rental for rental property, Rental of equipment.
- MACRS (Modified Accelerated Cost Recovery System):
-
- Rental property, Depreciation Methods, MACRS
- Rental property:
-
- Additions or improvements, Additions or improvements to property.
- Alternative Depreciation System (ADS), MACRS, MACRS Depreciation
Under ADS
- Alternative minimum tax, Alternative minimum tax.
- Cost basis determination, Depreciable Basis
- Excluded property, Excluded property.
- General Depreciation System (GDS), MACRS, Recovery Periods Under GDS, MACRS Depreciation Under GDS
- Optional MACRS tables (Table 10–2),
- Placed-in-service date, Placed-in-Service Date
- Recovery periods for (Table 10–1), Table 10–1. MACRS Recovery Periods for Property Used in Rental Activities
- Special depreciation allowance, Special Depreciation Allowance, Qualified property.
- MAGI (see Modified adjusted gross income (MAGI))
- Mailing returns (see Tax returns)
- Maintenance of rental property (see Rental income and expenses)
- Mandatory retirement age, Payments that are not disability income.
- Market discount bonds, Market discount bonds.
- Marriage penalty:
-
- Standard deduction for married taxpayers (Table 22–1),
- Married filing separately:, Married Filing Separately
-
- Carryover of capital loss, Joint and separate returns.
- Community property states, Community property states.
- Credits, treatment of, Special Rules
- Deductions:
-
- Changing method from or to itemized deductions, Married persons who filed separate returns.
- Treatment of, Special Rules
- Earned Income Credit, Special Rules
- Gross income filing requirements (Table 1–1), How to file.
- How to file, How to file.
- Itemized deductions, Special Rules, Married persons who filed separate returns.
- Itemized deductions:
-
- One spouse has itemized so other must as well, Persons not eligible for the standard deduction.
- Joint state and local income taxes filed, but separate federal returns, Joint state and local returns.
- Medical and dental expenses, Separate returns.
- Rollovers, Special Rules
- Social security and railroad retirement benefits, Benefits not taxable.
- State and local income taxes, Separate federal returns.
- Tenants by the entireties, allocation of real estate taxes, Tenants by the entirety.
- Tuition deduction and, Tuition and Fees Deduction, Who Cannot Take the Deduction?
- Married taxpayers, You can use Form 1040EZ if all of the following apply., Stock certificate in two or more names., Joint return.
-
- (see also Joint returns)
- (see also Tenants by the entirety)
- Child and dependent care credit, Joint Return Test
-
- (see also Spouse)
- Married taxpayers:, Important Reminders, Married Filing Jointly, Accounting period., Married Filing Separately
-
- (see also Joint returns)
- (see also Married filing separately)
- Age 65 or older spouse:
-
- Standard deduction, Spouse 65 or Older or Blind
- Blind spouse:
-
- Standard deduction, Spouse 65 or Older or Blind
- Deceased spouse, Surviving Spouses,
Executors, Administrators,
and Legal Representatives, , Head of household or qualifying widow(er) with dependent child., Spouse died., Spouse died during the year.
-
- (see also Surviving spouse)
- Definition of spouse for purposes of alimony, Spouse or former spouse.
- Dual-status alien spouse, Nonresident alien or dual-status alien.
- Educator expenses, Educator Expenses
- Estimated tax, Married taxpayers., 2003 separate returns and 2004 joint return.
- Filing status, Filing status., , Married persons.
- Form 1040EZ, use of, You can use Form 1040EZ if all of the following apply.
- Gross income filing requirements (Table 1–1), How to file.
- IRAs, Important Reminders, Important Reminders, Spousal IRA limit., Spousal IRA.
- IRAs:
-
- Spouse covered by employer plan, Important Reminders, How Much Can You Deduct?, If your spouse is covered.
- Living apart, Married persons living apart., Considered Unmarried
- Medical and dental expenses, Separate returns.
- Medical and dental expenses:
-
- Deceased spouse's expenses, What if you pay medical expenses of a deceased spouse or dependent?
- Nonresident alien spouse, Nonresident alien spouse., Nonresident alien or dual-status alien.
- Performing artists, Special rules for married persons.
- Roth IRAs, Can you contribute to a Roth IRA for your spouse?
- Signatures when spouse unable to sign, Spouse unable to sign.
- Social security or railroad retirement benefits, taxability, Figuring total income.
- Standard deduction (Table 22–1),
- Transfer of home to spouse, Transfer to spouse.
- Transfers between spouses, Property Transferred
From a Spouse, Transfers Between Spouses
- Travel expenses for spouse, Travel expenses for another individual.
- Mass transit passes, employer-provided, Transit pass.
- Maternity clothes:
-
- Not deductible as medical expense,
- MCC (Mortgage credit certificate), Who qualifies.
- Meal and lodging expenses:, Meals and Incidental Expenses, Individuals subject to hours of service limits.
-
- 50% deduction for business-related meals, Important Reminders, 50% limit on meals., 50% limit may apply., 50% Limit
- 50% deduction for business-related meals:
-
- Figure 28–A summary of rules,
- Work-related education, 50% limit on meals.
- Business-related entertainment including, Meals and Incidental Expenses, A meal as a form of entertainment.
- Business-related travel expense including, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes., Meals and Incidental Expenses
- Form 2106 or 2106–EZ, how to fill out, Meal and entertainment expenses., 1. Limit on meals and entertainment.
- Lodging, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes., Meals and Incidental Expenses
- Proof of expenses, How To Prove Expenses
- Proof of expenses:
-
- Table 29–2 summary, Table 28–2. How To Prove Certain Business Expenses
- Recordkeeping requirements, Actual cost., Recordkeeping
- Reporting of, How To Report
- Reporting of:
-
- Table 29–3 showing forms to be used, Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Restaurant receipts, Adequate evidence.
- Standard meal allowance, 50% limit on meals., Standard meal allowance., Who can use the standard meal allowance., The federal rate., The standard meal allowance.
- Standard meal allowance:
-
- Amount of, Amount of standard meal allowance.
- Areas outside continental U.S., Standard meal allowance for areas outside the continental United States.
- Prorating on partial days of travel, Prorating the standard meal allowance on partial days of travel.
- Taking turns paying for meals or entertainment, Taking turns paying for meals or entertainment.
- Transportation workers, Special rate for transportation workers.
- Transportation workers:
-
- Deduction limits, Individuals subject to hours of service limits.
- Medical and dental expenses
-
- Health insurance premiums (see Health insurance)
- Medical and dental expenses:, Medical and Dental Expenses, Where to report.
-
- Adjusted gross income and limit of deduction, How Much of the Expenses Can You Deduct?
- Adopted child, Adopted child.
- Alimony payments made to cover, Payments to a third party.
- Contributions to cover, not deductible as charitable donations, Contributions To Individuals
- Damages including, Damages For Personal Injuries
- Decedent's expenses, Medical expenses., Decedent
- Deduction, How Much of the Expenses Can You Deduct?
- Deduction:
-
- Checklist for deductible expenses (Table 23–1), What Medical Expenses Are Includible?
- Dependent's expenses, Dependent.
- Determination of date paid, What Expenses Can You Include This Year?
- Form 1040, Schedule A, for reporting, What Tax Form Do You Use?
- Future expenses, settlement including, Future medical expenses.
- Health coverage tax credit, Important Changes for 2003
- Health insurance credit, Important Reminders, Health Coverage Tax Credit
- Health insurance premiums (see Health insurance)
- Included expenses:
-
- Individuals covered, Whose Medical Expenses
Can You Include?
- Meals and lodging related to receiving medical care, Meals and Lodging, Use of the standard meal allowance for other travel.
- Medical care, defined, What Are Medical Expenses?
- Purpose of expenses, What Are Medical Expenses?
- Reimbursements, treatment of, Reimbursement for medical care., How Do You Treat Reimbursements?
- Transportation for medical purposes, , Transportation, Car expenses.
- Transportation for medical purposes:
-
- Standard mileage rate for car use for medical reasons, Important Changes for 2003, Important Changes for 2004, Important Changes, Car expenses.
- Work-related, Medical expenses.
- Medical devices:
-
- Deductibility of,
- Medical insurance (see Accident insurance) (see Health insurance)
- Medical research organizations:
-
- Charitable contributions to, Examples.
- Medical savings accounts (MSAs), Archer MSA contributions.
-
- (see also Archer MSAs)
- Medical savings accounts (MSAs):, Archer MSA, Archer MSA., Medical savings accounts (MSAs).
-
- (see also Archer MSAs)
- Medicare+Choice MSA, Archer MSA, Archer MSA., Medical savings accounts (MSAs).
- Medicare+Choice MSA:
-
- Medical expenses paid for decedent from, Decedent
- Medicare, You must use Form 1040 if any of the following apply., Social security and Medicare taxes paid by employer., Social security and Medicare taxes.
-
- (see also Social security/Medicare taxes)
- Medicare+Choice MSA (see Medical savings accounts (MSAs))
- Medicare tax, Other taxes.
- Medicare:
-
- Medicare A, when deductible as medical expense, Medicare A.
- Medicare B, when deductible as medical expense, Medicare B.
- Medications:
-
- Deductibility as medical expense,
- Membership fees (see specific type of organization)
- Mentally incompetent persons, You can use Form 1040A if all of the following apply., How to report., Disability Pensions
-
- (see also Disabilities, persons with)
- (see also Elderly or disabled, credit for)
- Mentally incompetent persons:
-
- Signing of return by court-appointed representative, Unable to sign.
- Metals, precious (see Gold and silver)
- Mexico:
-
- Contributions to charitable organizations in, Certain foreign charitable organizations., Contributions To Nonqualified Organizations
- Mileage rates (see Standard mileage rates)
- Military (see Armed forces)
- Military personnel
-
- Earned Income Credit, Military personnel stationed outside the United States.
- Mineral royalties, Oil, gas, and minerals.
- Ministers (see Clergy)
- Miscellaneous deductions, Miscellaneous Deductions
- Miscellaneous deductions:
-
- Federal employees buying back sick leave, Federal Employees' Compensation Act (FECA).
- Outplacement agency fees, Outplacement services.
- Missing children:
-
- Photographs of, included in IRS publications, Important Reminders
- Mistakes (see Errors)
- Modified Accelerated Cost Recovery System (MACRS), Depreciation Methods, MACRS
- Modified adjusted gross income (MAGI):
-
- Child tax credit limits, Modified AGI.
- Education credits, Modified adjusted gross income (MAGI).
- IRAs, computation for:
-
- Contributions, increase in amount of, Important Changes for 2003
- Effect on deduction if covered by employer retirement plan (Table 18–1), ,
- Effect on deduction if not covered by employer retirement plan (Table 18–2),
- Worksheet 18–1,
- Roth IRAs, computation for, Modified AGI.
- Roth IRAs, computation for:
-
- Phaseout (Table 18–3),
- Worksheet 18–2,
- Money market certificates, Money market certificates, savings certificates, and other deferred interest accounts.
- Money market funds, Money Market Funds
- Money orders:
-
- Payment of tax, Check or money order.
- Penalty if not honored, Payment not honored.
- Mortgage credit certificate (MCC), Who qualifies.
- Mortgage insurance premiums, Amounts charged for services.
- Mortgage insurance premiums:
-
- Basis in property not to include, Settlement costs.
- Mortgage interest credit:, Mortgage Interest Credit
-
- Carryforward, Carryforward.
- Form 8396, Mortgage interest credit.
- How to claim, How to claim the credit.
- Recapture, Recapture of federal mortgage subsidy.
- Reduced deduction, Reduced home mortgage interest deduction.
- Mortgages:, Points, Home mortgage interest and points.
-
- (see also Points)
- Alimony, payments as, Mortgage payments.
- Assistance payments, Mortgage assistance payments., Mortgage assistance payments.
- Assumption of, Assumption of mortgage.
- Assumption of:
-
- Fees not included in basis, Settlement costs.
- Credit certificate (MCC) from state or local government, Mortgage interest credit.
- Discounted mortgage loan, Discounted mortgage loan.
- Ending early, treatment of points, Mortgage ending early.
- Federally subsidized mortgage, recapture of tax paid on home purchased with, Recapture of federal mortgage subsidy.
- FHA mortgage insurance premiums and VA funding fees, not deductible, Items You
Cannot Deduct
- Insurance premiums, Homeowners' Insurance Premiums (see Mortgage insurance premiums)
- Interest credit (see Mortgage interest credit)
- Interest deduction:
-
- Computation for amount deductible (Figure 25–A), Fully deductible interest.
- Itemized deduction limit, Important Reminders
- Sale of home, Sale of home.
- Schedule A (Form 1040) to deduct, Home mortgage interest and points.
- Interest:
-
- Definition, Home Mortgage
Interest
- Form 1098 (interest statement), Form 1098., Mortgage Interest Statement
- Refund of, Mortgage interest refund.
- Late payment charges, deduction of, Late payment charge on mortgage payment.
- Lender's charges for services, Amounts charged for services.
- More than one borrower (not spouse), reporting of interest deduction, More than one borrower.
- Preparation costs for notes or deeds of trust, Amounts charged for services.
- Prepayment:
-
- Allocation of deduction, Prepaid interest.
- Penalty for, deduction of, Mortgage prepayment penalty.
- Points, General rule.
- Reported on Form 1098, Prepaid interest on Form 1098.
- Proceeds used for business or investment, deduction of, Mortgage proceeds used for business or investment.
- Refinancing, Refinancing.
- Refund of interest:
-
- Reported on Form 1098, Refunded interest.
- Treatment of, Refunds of interest.
- Seller-financed, Seller-financed mortgage.
- Mosques (see Churches, temples, etc.)
- Motels (see Hotels)
- Moth damage:
-
- Not casualty losses, Progressive deterioration.
- Moving expenses:, Moving Expenses, How to make the choice.
-
- Armed forces, spouses and dependents, Spouse and dependents.
- Deduction of, Who Can Deduct Moving Expenses, Deductible Moving Expenses, Where to deduct.
- Deduction of:
-
- Time for, When To Deduct Expenses, Choosing when to deduct.
- Distance test, Distance Test
- Double deduction not allowed for same expenses, No double deduction.
- Nondeductible expenses, Nondeductible Expenses
- Outside U.S., move to, Moves to locations outside the United States.
- Qualifying moves within U.S., non-military (Figure 19–B), Joint Return
- Reimbursements, Reimbursements., Expenses reimbursed.
- Related to start of work, Related to Start of Work
- Reporting of, How and When To Report
- Retirees or survivors who move to U.S., Retirees or Survivors Who Move to the United States
- Standard mileage rates, Important Changes for 2003, Important Changes for 2004
- Time test, Time Test
- When move begins, When a move begins.
- MSAs (see Medical savings accounts (MSAs))
- MSAs:
-
- Additional tax on, Other taxes.
- Municipal bonds, State or Local
Government Obligations
- Museums:
-
- Charitable contributions to, Examples.
- Musicians and entertainers, Work Clothes and Uniforms
- Mutual funds:, Publicly offered mutual funds.
-
- Adjusted basis of shares, Mutual fund shares.
- Allocated expenses, Publicly offered mutual funds.
- Capital gains, Capital Gain Distributions
- Dividends from, Capital Gain Distributions
- Exempt-interest dividends, Other Distributions
- Nonpublicly offered, Nonpublicly offered mutual funds.
- Publicly offered, Publicly offered mutual funds.
- Undistributed capital gains, Long-term gains and losses.
- Undistributed capital gains:
-
- Credit for tax on, Credit for Tax on Undistributed Capital Gain
N
- Name change, Name change., Name changed.
- Nanny tax (see Domestic help)
- National Housing Act:
-
- Mortgage assistance, Mortgage assistance payments., Mortgage assistance payments.
- Native Americans (see Indians)
- Negligence penalties, Negligence or disregard.
- Net investment income, Limit on Deduction
- Net operating losses:
-
- Casualty or theft losses, Net operating loss (NOL).
- Decedent's deduction, Deduction for Losses
- Refund of carryback, Exceptions for special types of refunds.
- New Jersey Nonoccupational Disability Benefit Fund, Contributions to state benefit funds.
- New Jersey Unemployment Compensation Fund, Contributions to state benefit funds.
- New job, trade, or business, Education That
Qualifies You for a
New Trade or Business
- New job, trade, or business:
-
- Employment agency fees, Job Search Expenses
- Job search expenses, Job Search Expenses
- Travel expenses, Travel and transportation expenses.
- New York Nonoccupational Disability Benefit Fund, Contributions to state benefit funds.
- Nightclubs:
-
- Cover charges, 50% limit on deduction, Included expenses.
- Nobel Prize, Pulitzer, Nobel, and similar prizes.
- NOL (see Net operating losses)
- Nominees, Nominees., Nominee.
- Nominees:
-
- Dividends that belong to someone else, Nominees., Form 1040A. , Form 1040.
- Nonaccountable plans for employee reimbursements, Related to employer., Nonaccountable Plans
- Noncapital assets, Capital Assets and Noncapital Assets
- Noncustodial parent, Exception.
- Nonemployee compensation, Nonemployee compensation.
- Nonrecourse debt, Nonrecourse debt.
- Nonrefundable credits, Nonrefundable credits., Nonrefundable Credits
- Nonresident aliens, Nonresident alien.
- Nonresident aliens:
-
- Due dates, Nonresident alien.
- Estimated tax, Aliens.
- Form 1040EZ, use of, You can use Form 1040EZ if all of the following apply.
- Spouse, Nonresident alien spouse.
- Spouse:
-
- Joint returns not available, Nonresident alien or dual-status alien.
- Separated, Nonresident alien spouse.
- Transfers between spouses when one spouse is nonresident alien, Transfers Between Spouses
- Standard deduction, Persons not eligible for the standard deduction.
- Tuition deduction and, Who Cannot Take the Deduction?
- Waiver of alien status, Waiver of alien status.
- Nontaxable payments
-
- Credit for the elderly or the disabled, Nontaxable payments.
- Nontaxable trades (see Tax-free exchanges)
- Northern Mariana Islands:
-
- Income from, Individuals With Income From
U.S. Possessions
- Not-for-profit activities, Activity not for profit.
- Notary fees, Notary public.
- Notary fees:
-
- Not deductible as interest, Amounts charged for services.
- Notes:
-
- As obligations of individuals, Notes of individuals.
- Discounted, Note received for services., Original Issue
Discount (OID)
- Received for services, Note received for services.
- Nursery schools (see Child and dependent care credit)
- Nursing care:
-
- Employment taxes for worker providing medical care, deductibility of,
- For healthy baby, not deductible as medical expense,
- Wages for, deductibility as medical expense,
- Nursing homes
-
- Insurance for care in (see Long-term care insurance contracts)
- Nursing homes:
-
- Meals and lodging, deductible as medical expense, Nursing home.
- Nutrition Program for the Elderly, Nutrition Program for the Elderly.
- Nutritional supplements:
-
- Not deductible as medical expense,
O
- Obesity:
-
- Weight-loss program as treatment for, deduction for, Important Reminders
- Occupational taxes, Occupational Taxes
- Occupational taxes:
-
- Deduction of:
-
- Taxes that are deductible (Table 25–1),
- Office rent, deductibility of, Clerical Help and Office Rent
- Office, use of home as, Home Office
- Officials:
-
- Local government, State and local government officials paid on a fee basis.
- State, State and local government officials paid on a fee basis.
- OID (see Original issue discount (OID))
- Oil, gas, and minerals:
-
- Future production sold, Part of future production sold.
- Royalties from, Oil, gas, and minerals.
- Royalties from:
-
- Schedule C or C–EZ, Royalties
- Sale of property interest, Sale of property interest.
- Older taxpayers:
-
- Credit for the elderly, Credit for the Elderly or the Disabled
- Options, Stock Options, Distributions of Stock
and Stock Rights
- Options:
-
- Charitable contributions, date of, Option.
- Ordinary dividends (see Dividends)
- Ordinary gain, Capital or Ordinary
Gain or Loss
- Ordinary gain and loss (see Gains and losses)
- Organ donors:
-
- Deductibility of medical expense,
- Original issue discount (OID):, Original Issue
Discount (OID)
-
- Adjusted basis and, Original issue discount (OID) on debt instruments.
- Discounted debt instruments, Tax-exempt state and local government bonds.
- Form 1099–OID, The 1099 Series
- Origination fees (see Points)
- Other taxes, Other taxes.
- Outplacement services:, Outplacement services.
-
- Deduction of agency fees, Outplacement services.
- Over-the-counter drugs:
-
- Not deductible as medical expense,
- Overpayment of tax, Refunds, Filing to get a refund.
-
- (see also Tax refunds)
- Overseas work (see Foreign employment)
- Overtime pay, Supplemental Wages
- Oxygen equipment and oxygen:
-
- Deductibility as medical expense,
P
- Paper vs. electronic return (see E-file)
- Paperwork Reduction Act of 1980, Important Reminders
- Parental responsibility (see Children)
- Parking fees:
-
- Business-related travel, Parking fees and tolls.
- Commuting expense, Parking fees.
- Employer-provided fringe benefit:
-
- Exclusion from income, Transportation
- Medical-related travel, Car expenses.
- Sports arena, business-related entertainment subject to 50% limit, Included expenses.
- Parks and recreation facilities:
-
- Charitable contributions to, Examples.,
- Parochial school tuition:
-
- No charitable deduction, Contributions From
Which You Benefit
- Partners and partnerships, Indirect Deductions of
Pass-Through Entities
- Partners and partnerships:
-
- Capital gains or losses from, Long-term gains and losses.
- Deceased taxpayer, Partnership income.
- Income, Partnership Income
- Investment interest, Partners, shareholders, and beneficiaries.
- Related party transactions, Losses on sales or trades of property.
- Pass-through entities, Indirect Deductions of
Pass-Through Entities
- Passive activity, Sales not discussed in this chapter.
-
- Losses, Rental activity losses.
- Passive activity:
-
- Losses, Losses from passive activities.
-
- Exception for real estate professionals, Exception for real estate professionals.
- Investment interest and, Investment Interest
- Rental property, Limits on
Rental Losses, Passive Activity Limits, Limits on passive activity deductions and credits.
- Reporting of gains or losses, Passive activity gains and losses.
- Patents:
-
- Infringement damages, Court awards and damages.
- Royalties, Copyrights and patents.
- Patronage dividends, Patronage dividends.
- Payment of tax, Balance due., Amount You Owe, Installment Agreement, Tax paid.
-
- (see also Installment agreements)
- Payment of tax:, Important Reminders, How To Pay Estimated Tax
-
- By check or money order, Important Reminders, Check or money order., How To Pay Estimated Tax
- By credit card, Important Reminders, E-file and pay by credit card., Credit card.
- By electronic means, Credit card.
- By electronic means:
-
- Credit card, Credit card., How To Pay Estimated Tax
- Electronic Federal Tax Payment System (EFTPS), Electronic Federal Tax Payment System (EFTPS)., How To Pay Estimated Tax
- Funds withdrawal, Electronic funds withdrawal., Important Reminder, How To Pay Estimated Tax
- Delivery services, Important Reminders, Private delivery services.
- Estimated tax, Estimated tax payments., How To Pay Estimated Tax
- Late payment penalties, Paying tax late.
- Payable to "United States Treasury", Important Reminders
- Vouchers, How To Pay Estimated Tax, Using Payment-Vouchers
- Payments, Payments.
-
- Disaster relief, Disaster relief payments.
- Payroll deductions, Tax Withholding and Estimated Tax
-
- (see also Withholding)
- Payroll deductions:
-
- Charitable contributions via:
-
- Recordkeeping requirements, Payroll deductions.
- Payroll taxes (see Social security/Medicare taxes) (see Withholding)
- Peace Corps allowances, Peace Corps.
- Pell grants:
-
- Tuition deduction, effect on, Tax-free educational assistance.
- Penalties:
-
- Accuracy-related, Accuracy-related penalty.
- Alimony deduction, failure to provide social security number of recipient, How To Report Alimony Received
- Backup withholding, Penalties.
- Check not honored, Payment not honored.
- Civil penalties, Civil Penalties
- Criminal, Criminal Penalties
- Deductibility, Fines or Penalties
- Deduction not permitted for, Penalties.
- Defenses, Adequate disclosure.
- Estimated tax (see this heading: Underpayment of estimated tax)
- Failure to furnish tax shelter registration number, Failure to furnish tax shelter registration number.
- Failure to include social security number, Penalty for not providing social security number., Failure to supply social security number.
- Failure to pay tax, Paying tax late.
- Failure to provide social security number or TIN:
-
- Alimony deduction, How To Deduct Alimony Paid
- Home seller and purchaser, Home mortgage interest and points.
- To dividend payers, Social security number (SSN).
- Form 8606 not filed for nondeductible IRA contributions, Important Reminders, Penalty for failure to file Form 8606.
- Fraud, Fraud., Fraud., Criminal Penalties
- Frivolous return, Frivolous return.
- Interest on, Interest on penalties.
- IRAs, What Acts Result in Penalties or Additional Taxes?
- IRAs:
-
- Early distributions, Early Distributions
- Excess contributions, Excess Contributions
- Form 8606 not filed for nondeductible contributions, Important Reminders, Penalty for failure to file Form 8606.
- Overstatement of nondeductible contributions, Penalty for overstatement.
- Required distributions, failure to take, When Must You Withdraw IRA Assets? (Required Minimum Distributions)
- Late filing, Filing late., Filing late., Return over 60 days late.
- Late filing:
-
- Exception, Exception.
- Late payment, Paying tax late.
- Negligence, Negligence or disregard.
- Roth IRAs:
-
- Conversion contributions withdrawn in 5-year period, Additional tax on distributions of conversion contributions within 5-year period.
- Excess contributions, What If You Contribute Too Much?
- Substantial understatement of income tax, Substantial understatement of income tax.
- Tax evasion, Criminal Penalties
- Tips, failure to report, Penalty for not reporting tips.
- Underpayment of estimated tax, Introduction, Underpayment penalty., Underpayment Penalty, Penalty for underpayment of estimated tax.
- Willful failure to file, Criminal Penalties
- Withholding, Penalties, Penalties.
- Pensions, Retirement Plans, Pensions, and Annuities, Important Reminders, Railroad retirement benefits., Rollovers, Social Security and Equivalent Railroad Retirement Benefits
-
- (see also Annuities)
- (see also Railroad retirement benefits)
- (see also Rollovers)
- 457 plans (see Section 457 deferred compensation plans)
- State and local government employees (see Section 457 deferred compensation plans)
- Pensions:
-
- Clergy, Pension.
- Contributions:
-
- Elective deferral amounts, Important Changes for 2003, Important Changes for 2004
- Retirement savings contribution credit, Special Rules, Retirement Savings Contributions Credit
- Taxation of, Retirement Plan Contributions
- Cost computation, Cost (Investment in the Contract)
- Decedent's unrecovered investment in, Form W–2.
- Deemed IRAs, Important Changes for 2003, Important Changes for 2003
- Definition of, , Tax on Excess Accumulation
- Disability pensions, Disability income.
- Disability pensions:
-
- Credit for, Credit for the elderly or the disabled.
- Early distributions:
-
- Exceptions to tax on, Exceptions to tax., Additional exceptions for qualified retirement plans.
- Qualified retirement plans, exceptions for, Additional exceptions for qualified retirement plans.
- Tax on, Special Additional Taxes, Tax on Early Distributions
- Elderly persons, credit for, Credit for the elderly or the disabled.
- Elective deferral limitation, Elective deferrals.
- Employer plans:
-
- Benefits from previous employer's plan, Benefits from a previous employer's plan.
- Planning services, Important Reminders
- Rollover to IRA, Rollover From Employer's Plan Into an IRA
- Situations in which no coverage, Situations in Which You Are Not Covered
- Estimated tax, Withholding and estimated tax.
- Excess accumulation, tax on, Special Additional Taxes, Tax on Excess Accumulation, Required distributions.
-
- (see also this heading: Required distributions)
- Foreign employment contributions, Foreign employment contributions.
- Form 1099–R, The 1099 Series
- General Rule for nonqualified plans and qualified plans for recipients over 75 years, Who must use the General Rule.
- Hardship distributions, Important Reminders, Hardship distributions.
- Inherited pensions, Inherited pension or IRA.
- Joint returns, Joint return.
- Loans from plan, Loans.
- Lump-sum distributions, Lump-Sum Distributions
-
- (see also Lump-sum distributions)
- Military (see Armed forces)
- Multiple pension plan benefits, More than one program., More than one annuity.
- Partly taxable payments, Partly taxable payments.
- Planning services, Important Reminders
- Reporting of, How To Report
- Required distributions:
-
- At age 70½, Age 70½.
- Excise tax for failure to take minimum distributions, Required distributions not made.
- Form 5329 for failure to receive required minimum retirement plan distributions, Form 5329.
- State insurer delinquency proceedings preventing minimum distributions, State insurer delinquency proceedings.
- Unrecovered investment in, Unrecovered Investment
in Annuity
- Withholding, Form W–2., Pensions and Annuities, Withholding and estimated tax., Withholding tax.
- Pentagon attacks (see Terrorist attacks)
- Per diem:
-
- Allowance or reimbursement, Reimbursement, allowance, or advance., Per Diem and Car Allowances, Reporting your expenses with a per diem or car allowance.
- Charitable organization service, for, Daily allowance (per diem).
- Federal rate, The federal rate.
- High-low rate method to compute, High-low rate.
- Standard meal allowance, Important Changes, Amount of standard meal allowance.
- Performing artists, Performing artists.
- Performing artists:
-
- Business expenses, Expenses of certain performing artists.
- Work-related education expenses, Performing Artists and Fee-Basis Officials
- Permanent and total disability, Permanent and total disability.
- Personal exemption, Personal Exemptions and Dependents, Taxpayer identification numbers for aliens.
- Personal exemption:, Your Own Exemption
-
- Deceased taxpayer's final return, Exemptions
- Joint return, Joint return.
- Limits, Special Rules
- Phaseout, Special Rules, Important Changes, Phaseout of Exemptions
- Spouse's exemption, Your Spouse's Exemption
- Personal injury suits:
-
- Damages from, Court awards and damages.
- Personal interest:
-
- Not deductible, Important Reminders, Items You
Cannot Deduct, Personal Interest
- Personal property, Personal property.
-
- (see also Casualty losses)
- Taxes (see Personal property taxes)
- Theft of (see Theft losses)
- Personal property taxes:
-
- Car taxes, Taxes paid on your car.
- Deduction of:
-
- Schedule A, C, E, or F (Form 1040), Real estate taxes and personal property taxes.
- Taxes (see Personal property taxes)
- Personal property:
-
- As capital assets, Personal use property.
- Rental income from, Rents from Personal Property
- Persons with disabilities (see Disabilities, persons with)
- Photographs:
-
- Casualty or theft loss claims, Costs of photographs and appraisals.
- Physician's statement, Physician's statement.
-
- Veterans, Veterans.
- Place for filing, Important Changes, Where Do I File?
- Placed-in-service date, Placed-in-Service Date
- Plants and trees:
-
- Cost of, when casualty or theft loss involved, Progressive deterioration., Landscaping.
- Plastic surgery:
-
- Not deductible as medical expense when cosmetic,
- Points:, Points
-
- Basis in property not to include, Settlement costs., Points.
- Definition, Points
- Excess points, Excess points.
- Form 1098 reporting, Mortgage Interest Statement
- Guide to determine if points deductible in year paid (Figure 25–B), Exception.
- Limits on deduction, Limits on deduction.
- Main home purchase, special treatment of, Points on home mortgage.
- Mortgage ending early, Mortgage ending early.
- Paid by seller, Points paid by the seller.
- Refinancing, Refinancing.
- Schedule A (Form 1040) to deduct, Home mortgage interest and points.
- Second home, Points
- Settlement statement shows as charged for mortgage, Exception.
- Political campaign expenses, Campaign Expenses, Political Contributions
- Political contributions (see Campaign contributions)
- Political conventions:
-
- Travel expenses, Conventions
- Post office employees:
-
- Rural mail carriers, Rural mail carriers.
- Postponed tax deadlines:
-
- Disaster areas, Postponed tax deadlines.
- Postponement of gain:
-
- Sale of home, Adjusted Basis
- Sale of home:
-
- Adjusted basis, Postponed gain from sale of home.
- Power of attorney, Power of attorney., Other reasons spouse cannot sign.
- Preferred stock:
-
- Redeemable at a premium, Preferred stock redeemable at a premium.
- Premature distributions (see Early withdrawal from deferred interest account)
- Prepaid:
-
- Insurance, Prepaid insurance premiums.
- Preparer's fee:
-
- Deductible amount, Tax Preparation Fees
(Line 21)
- Preparers of tax returns, Paid Preparer
- Prepayment
-
- Mortgage interest (see Mortgages)
- Prepayment:
-
- Insurance premiums:
-
- Deductibility as medical expense, Prepaid insurance premiums.
- Rent paid in advance, Advance rent.
- Prescription medicines:
-
- Deductibility as medical expense,
- Presidential Election Campaign Fund, Presidential Election
Campaign Fund
- Presidentially declared disasters (see Disaster relief)
- Prevention of cruelty to children or animals organizations:
-
- Charitable contributions, Types of Qualified Organizations
- Price reduced after purchase, Price reduced after purchase.
- Principal residence (see Home)
- Privacy Act and paperwork reduction information, Important Reminders
- Private delivery services, Important Reminders, Private delivery services.
- Private schools:
-
- Charitable deduction for tuition, Contributions From
Which You Benefit
- Prizes and awards, Supplemental Wages, Bonuses and awards., Employee awards or bonuses.
-
- (see also Bonuses)
- Prizes and awards:, Bonuses and awards., Prizes and awards.
-
- Exclusion from income, Employee achievement award.
- Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes.
- Scholarship prizes, Prizes.
- Probationary work periods:
-
- Travel expenses during, Probationary work period.
- Professional license fees, Professional Accreditation Fees
- Professional Reputation, Professional reputation
- Professionals:
-
- Entertainment expenses for attending association meetings, Trade association meetings.
- Profit-sharing plans
-
- Lump sums (see Lump-sum distributions)
- Profit-sharing plans:
-
- Form 1099–R, The 1099 Series
- Withholding, Form W–2., Pensions and Annuities
- Promissory notes:
-
- Charitable contributions, date of, Promissory note.
- Proof of business expense:, How To Prove Expenses
-
- Table 29–2 summary, Table 28–2. How To Prove Certain Business Expenses
- Proof of loss, Casualty loss proof.
- Property, Real Property (see Personal property) (see Real estate)
- Prostheses:
-
- Deductibility of medical expense,
- Protective clothing, Protective clothing.
- Psychiatric care:
-
- Specially equipped medical centers, deductibility of expense,
- Public assistance benefits, Welfare and Other Public Assistance Benefits
- Public debt:
-
- Gifts to reduce, Gift To Reduce the
Public Debt
- Public parks and recreation facilities:
-
- Charitable contributions to, Examples.,
- Public transportation passes, employer-provided, Transit pass.
- Public utilities (see Utilities)
- Publication 1244:
-
- Daily record of tips (Form 1244), How to keep a daily tip record.
- Reporting tips to employer, How to report.
- Publication 584:
-
- Casualty and theft losses, workbook for, Workbook for casualties and thefts.
- Publication 78:
-
- List of qualified organizations for charitable contributions, Organizations That Qualify To Receive Deductible Contributions
- Puerto Rico:
-
- Residents of, Residents of Puerto Rico
- Pulitzer Prize, Pulitzer, Nobel, and similar prizes.
- Punitive damages:
-
- As income, Court awards and damages.
Q
- Qualified dividends, Qualified Dividends, Qualified dividends., Important Change for 2003
- Qualified domestic relations orders (QDROs):
-
- Rollover of retirement plan distribution, Alternate payee under qualified domestic relations order.
- Qualified education expenses:
-
- Education credits, What Expenses Qualify, Comprehensive or bundled fees.
- Qualified expenses:
-
- Work-related education, business deduction, Qualified Education Expenses, No Double Benefit Allowed
- Qualified plans, Rollovers, Rollovers (see Retirement plans)
-
- (see also Rollovers)
- Qualified student loan (see Student loan interest deduction)
- Qualified tuition programs, Qualified tuition programs (QTP).
- Qualified tuition programs:
-
- Additional tax on, Other taxes.
- Filing requirements (Table 1–3),
- Qualifying person
-
- Child and dependent care credit, Qualifying Person Test
R
- Raffles, Lotteries and raffles.
- Raffles:
-
- No charitable deduction for tickets, , Contributions From
Which You Benefit
- Railroad retirement benefits, Railroad retirement benefits.
- Railroad retirement benefits:, Social Security and Equivalent Railroad Retirement Benefits, Repayment of benefits received in an earlier year., Railroad retirement annuities., Important Changes for 2003
-
- (see also Excess withholding credit)
- Deductions related to, Deductions Related to Your Benefits
- Employer retirement plans different from, Social security or railroad retirement.
- Equivalent tier 1 (social security equivalent benefit (SSEB)), Introduction, Railroad retirement annuities.
- Estimated tax, Tax withholding and estimated tax.
- Form RRB–1099, The 1099 Series, Introduction
- Income, You can use Form 1040A if all of the following apply.
- Joint returns, Joint return.
- Lump-sum election, Lump-sum election.
- Married filing separately, Special Rules, Benefits not taxable.
- Repayment of benefits, Repayment of benefits.
- Reporting of, How To Report
Your Benefits
- Taxability of, Are Any of Your Benefits Taxable?, How Much Is Taxable?
- Withholding, Federal Payments, Tax withholding and estimated tax., Important Changes for 2003
-
- (see also Excess withholding credit)
- Withholding:
-
- Not deductible, Taxes and Fees
You Cannot Deduct
- Railroad retirement tax (RRTA), Important Changes for 2003
-
- (see also Excess withholding credit)
- Railroad Unemployment Insurance Act, Railroad sick pay.
- Real estate, Personal Use of
Dwelling Unit
(Including Vacation Home), Dwelling Unit
Used as Home, Examples, How To Divide Expenses
-
- (see also Vacation homes)
- Cooperative (see Cooperative housing)
- Rental (see Rental income and expenses)
- Real estate investment trusts (REITs):
-
- Dividends from, Capital Gain Distributions
- Undistributed capital gains, Long-term gains and losses.
- Undistributed capital gains:
-
- Credit for tax on, Undistributed capital gains of mutual funds and REITs., Credit for Tax on Undistributed Capital Gain
- Real estate taxes:, Tenant-shareholders in a cooperative housing corporation.
-
- (see also Cooperative housing)
- Alimony deduction for, when home owned as tenants in common, Taxes and insurance.
- Assessments (see Local assessments)
- Basis of property and, Cost Basis
- Basis of property and:
-
- When not reimbursed by property seller, Real estate taxes.
- Cooperative housing, Tenant-shareholders in a cooperative housing corporation.
- Deduction of, Real Estate Taxes
- Deduction of:
-
- List of deductible taxes (Table 25–1),
- Schedule A, C, E, or F (Form 1040), Real estate taxes and personal property taxes.
- Refund, treatment of, Refund (or rebate).
- Taxes (see Real estate taxes)
- Real estate:, Amount Deductible
-
- (see also Mortgages)
- As noncapital assets, Capital Assets and Noncapital Assets
- Basis, Real Property
- Canceled business debt, treatment of, Excluded debt.
- Casualty loss, Real property.
- Closing costs, Settlement costs.
- Definition of, Real Property
- Division of real estate taxes, Buyers and sellers of real estate.
- Fair market value (FMV), Real Property
- Form 1099–S to report sale proceeds, Form 1099–S transactions., Form 1099–S.
- Holding period, determination of, Real property bought.
- Itemized charges for services not deductible, Itemized charges for services.
- Points, Points
- Progressive deterioration, not casualty loss, Progressive deterioration.
- Related items, not deductible, Real Estate-Related Items You Cannot Deduct
- Settlement fees, Settlement costs.
- Taxes (see Real estate taxes)
- Transfer taxes, Transfer taxes (or stamp taxes).
- Rebates (see Refunds)
- Recapture:
-
- Alimony, Recapture Rule
- Alimony:
-
- Reporting on Form 1040, Including the recapture in income.
- Credits, You can use Form 1040A if all of the following apply., Recapture.
- Credits:
-
- Filing requirements (Table 1–3),
- New markets credit, filing requirements (Table 1–3),
- Taxes, Other taxes.
- Recharacterization:
-
- IRA contributions, Recharacterizations
- Recording fees:
-
- Basis to include, Cost Basis
- Recordkeeping requirements, What Records Should
I Keep?
- Recordkeeping requirements:
-
- Business travel expenses, What Travel Expenses Are Deductible?, Recordkeeping
- Charitable contributions, Important Reminders, Records To Keep
- Copies of returns, Copies of returns.
- Destroyed records, Destroyed records.
- Documentary evidence, Documentary evidence.
- Electronic records of tips, Electronic tip record.
- Form W–2, What Records Should
I Keep?
- Gambling, Gambling winnings.
- Incomplete records, What If I Have Incomplete Records?
- Meal expenses:
-
- Actual cost, Actual cost.
- Standard meal allowance, Standard meal allowance.
- Period of retention, How long to keep records., How Long To Keep
Records and Receipts
- Tip income, Introduction
- Travel expenses, What Travel Expenses Are Deductible?, Recordkeeping
- Work-related education, Recordkeeping
- Recordkeeping:
-
- Gambling, Gambling Losses Up to the
Amount of Gambling Winnings
- General requirements, Miscellaneous Deductions
- Sale of home, Adjusted Basis
- Savings bonds used for education, Education Savings
Bond Program
- Recovery of amounts previously deducted:, Recoveries
-
- Itemized deductions, Itemized Deduction Recoveries
- Mortgage interest refund, Mortgage interest refund.
- Over multiple years, Recovery for 2 or more years.
- Stolen property, adjustment of theft loss, Recovered stolen property.
- Tax refunds, Federal income tax refund., State income tax refund.
- Red Cross:
-
- Blood donations not deductible, , Value of Time or Services
- Charitable contributions to, Examples.,
- Redeemable ground rent:
-
- Deduction as mortgage interest, Redeemable ground rent.
- Redemption of bonds:, Redemption or retirement of bonds.
-
- State and local bonds, before maturity, Redeemed before maturity.
- Redemption of stock, Redemption of stock.
- Refinancing:
-
- Fees for, not part of property basis, Settlement costs.
- Points, Refinancing.
- Refund of expenses (see name of benefit)
- Refundable credits, Refundable credits., Refundable Credits
- Refunds
-
- Taxes (see Tax refunds)
- Refunds:, Refund or balance due.
-
- Adjustment to basis for, Decreases to Basis
- Mortgage interest, treatment of, Refunds of interest.
- Tuition refunds, Refunds.
- Regulated investment companies:
-
- Undistributed capital gains, credit for tax on, Credit for Tax on Undistributed Capital Gain
- Reimbursement, Recoveries, Reimbursement, allowance, or advance., Per Diem and Car Allowances, Reporting your expenses with a per diem or car allowance.
-
- (see also Per diem)
- (see also Recovery of amounts previously deducted)
- Reimbursement:, Reimbursements, Reimbursements.
-
- Accountable plans, definition of, Accountable Plans
- Allocation of, Allocating your reimbursement.
- As adjustment to basis, Decreases to Basis
- Casualty losses, Insurance and Other
Reimbursements
- Employee business expenses, Expense allowances., Allowances and reimbursements., Employee's reimbursed expenses.
- Gain from casualty or theft loss, Gain from reimbursement.
- Health insurance, reimbursement in later year, Reimbursement in a later year.
- Medical and dental expenses, How Do You Treat Reimbursements?
- Medical and dental expenses:
-
- Excess algorithm (Figure 23–A), Reimbursement in a later year.
- Mileage (see Standard mileage rates)
- Personal expenses, Reimbursement for personal expenses.
- Received after deducting loss, Reimbursement Received After Deducting Loss
- Returning excess for business expenses, Expense allowances., Returning Excess Reimbursements
- Tax year of inclusion for insurance reimbursement, Tax year of inclusion.
- Theft losses, Insurance and Other
Reimbursements
- Travel advances, Travel advance.
- Types of, Types of Reimbursements
- Reinvestment plans:
-
- Dividends used for, Dividends Used to Buy More Stock
- Related party transactions:, Related Party Transactions
-
- Indirect transactions, Indirect transactions.
- Like-kind exchanges, Like-kind exchanges., Like-kind exchanges.
- Multiple property sales or trades, Multiple property sales or trades.
- Relief fund contributions, Relief Fund Contributions
- Relief funds, Disaster relief.
-
- (see also Disaster relief)
- Religious organizations, Ministers., Clergy, Pension., Examples., , Conventions.
-
- (see also Churches, temples, etc.)
- (see also Clergy)
- Religious organizations:
-
- Charitable contributions to, Types of Qualified Organizations, Examples.,
- Charitable contributions to:
-
- 50% limit on deduction, 50% limit organizations.
- Written statement not needed, Exception.
- Remainder interest, sale of, Sale of remainder interest.
- Rental income and expenses, Rental Income and Expenses, Schedule E (Form 1040)
- Rental income and expenses:
-
- Advance rent, Advance rent.
- Canceling lease, payments for, Payment for canceling a lease.
- Capitalized costs, Improvements.
- Change of property to rental use, Property Changed
to Rental Use, Property Changed to Business or Rental Use
- Change of property to rental use:
-
- Depreciation method, Personal home changed to rental use.
- Cooperative apartments, deduction for rented unit depreciation, Cooperative apartments.
- Deductions, When to deduct., Property Not Used as a Home
- Deductions:
-
- Losses that exceed passive income, Limits on
Rental Losses, Limits on passive activity deductions and credits.
- No deduction greater than basis, No deduction greater than basis.
- Depreciation, Depreciation., Depreciation
-
- (see also Depreciation)
- Depreciation:
-
- Special depreciation allowance, Important Change, Special Depreciation Allowance
- Dwelling unit not used as home, Property Not Used as a Home
- Dwelling unit used as home, Dwelling Unit
Used as Home
- Dwelling unit used as home:
-
- Capital gains exclusion, Business Use or
Rental of Home
- Computation of income and expenses, Property Used as a Home
- Days used for repairs and maintenance, Days Used for Repairs and Maintenance
- Determining if used as home, Examples
- Division of expenses, How To Divide Expenses
- Donation of use of property, Donation of use of property.
- Figuring days of personal use, Figuring Days
of Personal Use
- Limit for rental losses, Property used as a home.
- Main home determination, Main home.
- Rented for 15 days or more, Rented 15 days or more.
- Rented for fewer than 15 days, Rental of property also used as a home., Exception for minimal rental use., Rented fewer than 15 days.
- Shared equity financing agreement, Shared equity financing agreement.
- Equipment rental for rental property, Rental of equipment.
- Expenses paid by tenant, Expenses paid by tenant.
- Fair rental price, Fair rental price.
- Home possession before final settlement, rent not deductible as interest, Rental payments.
- Improvements, Repairs and Improvements
- Improvements:
-
- Defined, Improvements.
- Depreciation treatment of, Additions or improvements to property.
- Increase due to higher real estate taxes, Rent increase due to higher real estate taxes.
- Increase due to higher real estate taxes:
-
- Deductibility (Table 25–1),
- Insurance premiums paid in advance, Insurance premiums paid in advance.
- Local assessments, Local benefit taxes.
- Losses from rental real estate activities, Rental activity losses., Losses From Rental Real Estate Activities
- Not-rented-for-profit property, Not Rented for Profit
- Part interest, Part interest., Part interest.
- Part of property rented, Renting Part of
Property
- Personal property rental, Rents from Personal Property
- Personal use of property including vacation home, Personal Use of
Dwelling Unit
(Including Vacation Home), Dwelling Unit
Used as Home
- Personal use of property including vacation home:
-
- Allocation of expenses, Personal use of rental property.
- Pre-rental expenses, Pre-rental expenses.
- Property or services received instead of money, Property or services.
- Purchaser's payment of rent, not included in property basis, Settlement costs.
- Repairs, Repairs and Improvements
- Reporting of, How To Report
Rental Income
and Expenses
- Sale of rental property, Expenses for rental property sold.
- Schedule E for reporting of, How To Report
Rental Income
and Expenses
- Section 179 election not permitted, Section 179 election.
- Security deposits, Security deposits.
- Self-employment tax, when applicable, How To Report
Rental Income
and Expenses
- Tax return preparation, Tax return preparation.
- Tax shelters and at-risk rules, At-Risk Rules
- Time to report, When to report.
- Travel expenses associated with management and maintenance, Travel expenses., Local transportation expenses.
- Vacant rental property, Vacant rental property.
- Reorganizations, corporate:
-
- Nontaxable trade of stock, Corporate reorganizations.
- Repairs:
-
- Basis, effect on, Settlement costs., Casualties and thefts.
- Cost of, when casualty or theft loss involved, Cost of cleaning up or making repairs.
- Rental expenses, Repairs and Improvements
- Repayment
-
- Amount previously included in income, Repayments Under
Claim of Right
- Repayments:, Repayments
-
- Social security benefits, Repayment of benefits., Repaid social security benefits.
- Unemployment compensation, Repayment of unemployment compensation., Repayment of benefits.
- Reporting:
-
- Rollovers, Reporting rollovers from employer plans.
- Repossession of home, Foreclosure or repossession.
- Requests for information from IRS, Copies of returns.
- Required minimum distributions (see Individual retirement arrangements (IRAs)) (see Pensions)
- Rescue squad members:
-
- Life insurance proceeds when death in line of duty, Important Reminders, Public safety officer killed in the line of duty.
- Research expenses:
-
- College professor, Research Expenses of
a College Professor
- Reservists:
-
- Deduction for transportation expense, Armed Forces reservists.
- IRAs, Reservists.
- Residency
-
- Home outside U.S. (see Citizens outside U.S.)
- Residency:
-
- Dependency exemption test, Citizen or Resident Test
- Main home, defined, Main Home
- Resident alien
-
- Earned Income Credit, Rule 4. You Must Be a
U.S. Citizen or Resident
Alien All Year
- Resident alien:, Resident alien.
- Resident aliens:
-
- Estimated tax, Aliens.
- IRA distributions, withholding from, IRA distributions delivered outside the United States.
- Spouse treated as, Choice to treat spouse as resident.
- Resorts:
-
- Travel expenses when incidental business activities, Trip Primarily for
Personal Reasons
- Restaurant employees
-
- Tips (see Tip income)
- Retail installment contracts:
-
- Finance charges, not deductible, Personal Interest
- Retail inventory, Capital Assets and Noncapital Assets
- Retention of records (see Recordkeeping requirements)
- Retired Senior Volunteer Program, National Senior Services Corps programs.
- Retirees, Retirement Plans, Pensions, and Annuities
-
- (see also Retirement plans)
- Retirees:
-
- Armed forces:
-
- Taxable income, Military retirement pay.
- Withholding, Military retirees.
- Retirement of bonds, Redemption or retirement of bonds., Retirement of debt instrument.
- Retirement of bonds:
-
- Rollover of amount redeemed, Retirement bonds.
- Retirement planning services, Retirement Planning Services
- Retirement plans, Special Rules, Roth IRAs., Retirement Plans, Pensions, and Annuities, Important Reminders, Railroad retirement benefits., Rollovers, Social Security and Equivalent Railroad Retirement Benefits
-
- (see also Annuities)
- (see also Railroad retirement benefits)
- (see also Rollovers)
- (see also Roth IRAs)
- 457 plans (see Section 457 deferred compensation plans)
- Contributions
-
- Credit for (see Retirement savings contribution credit)
- Section 457 plans (see Section 457 deferred compensation plans)
- State and local government employees (see Section 457 deferred compensation plans)
- Retirement plans:
-
- Clergy, Pension.
- Contributions, Retirement Plan Contributions
- Contributions:
-
- Elective deferral amounts, Important Changes for 2003, Important Changes for 2004
- Taxation of, Retirement Plan Contributions
- Cost computation, Cost (Investment in the Contract)
- Decedent's unrecovered investment in, Form W–2.
- Deemed IRAs, Important Changes for 2003, Important Changes for 2003
- Definition of, , Tax on Excess Accumulation
- Disability pensions, Disability income.
- Disability pensions:
-
- Credit for, Credit for the elderly or the disabled.
- Early distributions:
-
- Exceptions to tax on, Exceptions to tax., Additional exceptions for qualified retirement plans.
- Tax on, Special Additional Taxes, Tax on Early Distributions
- Elderly persons, credit for, Credit for the elderly or the disabled.
- Elective deferral limitation, Elective deferrals.
- Employer plans:
-
- Benefits from previous employer's plan, Benefits from a previous employer's plan.
- Planning services, Important Reminders
- Rollover to IRA, Rollover From Employer's Plan Into an IRA
- Situations in which no coverage, Situations in Which You Are Not Covered
- Estimated tax, Withholding and estimated tax.
- Excess accumulation, tax on, Special Additional Taxes, Tax on Excess Accumulation, Required distributions.
-
- (see also this heading: Required distributions)
- Foreign employment contributions, Foreign employment contributions.
- Form 1099–R, The 1099 Series
- General Rule for nonqualified and qualified plans for recipients over 75 years, Who must use the General Rule.
- Hardship distributions, Important Reminders, Hardship distributions.
- Inherited pensions, Inherited pension or IRA.
- IRAs (see Individual retirement arrangements (IRAs))
- Joint return, Joint return.
- Keogh plans, Qualified plans for self-employed individuals.
- Loans from plan, Loans.
- Lump-sum distributions, Lump-Sum Distributions
-
- (see also Lump-sum distributions)
- Military (see Armed forces)
- Multiple pension plan benefits, More than one program., More than one annuity.
- Partly taxable payments, Partly taxable payments.
- Planning services, Important Reminders
- Reporting of, How To Report
- Required distributions, Required distributions.
- Required distributions:
-
- At age 70½, Age 70½.
- Excise tax for failure to take minimum distributions, Required distributions not made.
- Form 5329 for failure to receive required minimum retirement plan distributions, Form 5329.
- State insurer delinquency proceedings preventing minimum distributions, State insurer delinquency proceedings.
- Withholding, Form W–2., Pensions and Annuities, Withholding and estimated tax., Withholding tax.
- Retirement savings contribution credit:, Retirement Savings Contributions Credit
-
- Adjusted gross income limit, Special Rules, Adjusted gross income (AGI).
- Applicable percentage for (Table 39–1), Limit on the credit.
- Eligible contributions, Eligible contributions.
- How to claim, How to claim the credit.
- Limit on, Limit on the credit.
- Returns, tax (see Tax returns)
- Revenue stamps:
-
- Basis to include, Cost Basis
- Revolving charge accounts:
-
- Finance charges, not deductible, Personal Interest
- Rhode Island Temporary Disability Benefit Fund, Contributions to state benefit funds.
- Rights of taxpayers:
-
- IRS request for information, Important Reminders
- Robbery:
-
- Losses due to, Theft
- Rollovers:, Rollovers, Rollovers
-
- Beneficiaries, restrictions, Rollover by surviving spouse.
- Definition of, Rollovers
- Direct rollovers, Direct rollover option.
- Distribution eligible for, Important Reminders
- Eligible distributions, Eligible rollover distributions.
- Excess due to incorrect rollover information, Excess due to incorrect rollover information.
- From 403 plan to IRA, Kinds of rollovers to a traditional IRA.
- From an IRA, Important Reminders
- From employer's plan to IRA, Kinds of rollovers to a traditional IRA., Rollover From Employer's Plan Into an IRA
- From IRA to IRA, Kinds of rollovers to a traditional IRA., Rollover From One IRA Into Another
- From IRA to Roth IRA, Conversion methods.
- From Roth IRA to Roth IRA, Rollover From a Roth IRA
- From section 457 plan to IRA, Kinds of rollovers to a traditional IRA.
- From SIMPLE IRA to Roth IRA, Converting from a SIMPLE IRA.
- Gain from publicly traded securities, Rollover of Gain From Publicly Traded Securities
- Inherited IRAs, Inherited IRAs.
- Lump-sum distributions, How to treat the distribution.
- Married filing separately, Special Rules
- Nontaxable amounts, Rollover of nontaxable amounts.
- Partial rollovers, Partial rollovers.
- Qualified domestic relations orders for distribution of retirement plan funds, Alternate payee under qualified domestic relations order.
- Reporting:
-
- From employer's plan to IRA, Reporting rollovers from employer plans.
- IRA to IRA, Reporting rollovers from IRAs.
- Retirement bond redemption, Retirement bonds.
- Surviving spouse, Important Reminders, Rollover by surviving spouse.
- Taxability, Rollovers, Form 5329 not required.
- Time limits (60-day rule), Time limit for making a rollover contribution., Rollovers
- Treatment of, Treatment of rollovers.
- Waiting period between, Waiting period between rollovers.
- Withholding tax, Withholding tax.
- Roth IRAs, Roth IRAs, More information.
- Roth IRAs:, Important Reminders, Rollover From a Roth IRA
-
- (see also Rollovers)
- Age:
-
- Distributions after age 59½, What are qualified distributions?
- No limit for contributions, Is there an age limit for contributions?
- No required distribution age, Must you withdraw or use Roth IRA assets?
- Compensation, defined, Compensation.
- Contribution limits, How Much Can Be Contributed?
- Contribution limits:
-
- Age 50 or older, $3,500, Roth IRAs and traditional IRAs.
- Under age 50, $3,000, Roth IRAs and traditional IRAs.
- Contributions, Can You Contribute to a Roth IRA?
- Contributions:
-
- Credit for, Important Reminders
- No deduction for, Important Reminders, What Is a Roth IRA?
- Roth IRA only, Roth IRAs only.
- Time to make, When Can You Make Contributions?
- To traditional IRA for same year, How Much Can Be
Contributed?, Roth IRAs and traditional IRAs.
- Conversion, Important Reminders, Conversions
- Definition of, What Is a Roth IRA?
- Distributions:
-
- Qualified distributions, What are qualified distributions?
- Effect of modified AGI on contributions (Table 18–3),
- Establishing account, When Can a Roth IRA Be Set Up?
- Excess contributions, What If You Contribute Too Much?
- Failed conversions and recharacterizations, Recharacterizations, Failed Conversions
- Inherited IRAs, Roth IRAs.
- IRA transfer to, Transfers to Roth IRAs., Converting From Any Traditional IRA to a Roth IRA
- Modified adjusted gross income (MAGI), Modified AGI.
- Modified adjusted gross income (MAGI):
-
- Computation (Worksheet 18–2),
- Phaseout (Table 18–3),
- Penalties, Results of failed conversions.
- Penalties:
-
- Conversion contributions withdrawn in 5-year period, Additional tax on distributions of conversion contributions within 5-year period.
- Excess contributions, What If You Contribute Too Much?
- Spousal contributions, Can you contribute to a Roth IRA for your spouse?
- Taxability, Are Distributions Taxable?
- Withdrawals, Must you withdraw or use Roth IRA assets?
- Withdrawals:
-
- Excess contributions, Withdrawal of excess contributions.
- Not taxable, Important Reminders, Are Distributions Taxable?
- Rounding off dollars, Rounding off dollars.
- Royalties, Royalties
- RRTA tax, Important Changes for 2003
-
- (see also Excess withholding credit)
- Rural mail carriers, Rural mail carriers.
S
- S corporations, Indirect Deductions of
Pass-Through Entities
- S corporations:
-
- Capital gains or losses from, Long-term gains and losses.
- Related party transactions, Losses on sales or trades of property.
- Shareholders, S Corporation Income
- Shareholders:
-
- Deceased taxpayer's income, S corporation income.
- Investment interest, Partners, shareholders, and beneficiaries.
- Safe deposit box, Safe Deposit Box Rent
- Salaries (see Wages and salaries)
- Sale of home, Exception for real estate professionals., Sale of home., Moving Expenses
-
- (see also Moving expenses)
- (see also Real estate)
- Sale of home:, Selling Your Home, How to figure and report the recapture.
-
- Abandonment, Abandonment.
- Adjusted basis, Adjusted Basis, Adjusted Basis
- Amount realized, Amount Realized
- Basis, Determining Basis
- Capital gains exclusion, Excluding the Gain
- Division of real estate taxes, Buyers and sellers of real estate.
- Employer, payment by, Payment by employer.
- Federal subsidy, recapture of, Recapturing a
Federal Mortgage
Subsidy
- Foreclosure or repossession, Foreclosure or repossession.
- Form 1099-S, Form 1099–S.
- Gain or loss, figuring of, Figuring Gain or Loss
- Interest deduction for mortgage, Sale of home.
- Interest paid to seller, reporting of, Home mortgage interest and points.
- Jointly owned home, Jointly owned home.
- Land, Land.
- Main home, defined, Main Home
- More than one home, More than one home.
- More than one home:
-
- Sold in 2-year period, More Than One Home Sold During 2-Year Period
- Option to buy, Option to buy.
- Period of ownership and use, Period of Ownership and Use
- Points paid by seller, Points paid by the seller.
- Postponed gain from, Postponed gain from sale of home.
- Recordkeeping, Adjusted Basis
- Reporting of gain, Important Reminders,
- Seller-financed mortgage, Seller-financed mortgage.
- Selling price, Selling Price
- Settlement fees or closing costs, Settlement fees or closing costs.
- Trading homes, Trading homes.
- Transfer to spouse, Transfer to spouse., Home transferred from spouse.
- Undeducted points, Important Reminders
- Sale of property:, Sale of Property, How to report and postpone gain.
-
- Adjusted basis, Adjusted basis.
- Amount realized, Amount realized.
- Basis other than cost, No gain or loss.
- Business property that has undergone change of use, Sale of property.
- Cash payment, Payment of cash.
- Debt payoff included in, Debt paid off.
- Definition of, What is a Sale or Trade?
- Fair market value (FMV), Fair market value.
- Figuring gain or loss, How To Figure
Gain or Loss
- Form 1099–B, Sales and Trades
- Like-kind exchanges, Like-kind exchanges.
- Personal items, Sale of personal items.
- Redemption of stock, Redemption of stock.
- Rental property that has undergone change of use, Sale of property.
- Transfers between spouses, Transfers Between Spouses
- Sales and exchanges:
-
- Bonds, Bonds Sold Between
Interest Dates
- Sales tax:
-
- Basis to include, Cost Basis
- Car purchase, Taxes paid on your car.
- Deductibility of (Table 25–1),
- Sales to related persons, exception, Exception for sales to related persons.
- Salvation Army (see Charitable contributions)
- Saturday, deadline falling on, Saturday, Sunday, holiday rule.
- Savings:
-
- Bonds, U.S. Savings Bonds, U.S. savings bond interest previously reported.
- Bonds used for education, Education Savings
Bond Program
- Certificate, Money market certificates, savings certificates, and other deferred interest accounts., Certificates of deposit (CDs).
- Schedule (see Form 1040)
- Schedule:
-
- 2 of Form 1040A, Form 1040A.
- 3 of Form 1040A, Figuring the credit yourself.
- Form 1040, A-F, R, SE (see Form 1040)
- Form 1040A, 1 – Part I, Form 1040A.
- Form 1040A, 1-3 (see Form 1040)
- K–1
-
- Beneficiaries receiving income from estate or trust, Beneficiary of an estate or trust.
- Partnership income, Schedule K–1 (Form 1065).
- S corporation income, Schedule K–1 (Form 1120S).
- K–1, Form 1041, Beneficiary of an estate or trust.
- R of Form 1040, Figuring the credit yourself.
- X
-
- Tax rates for single persons, Single
- Y-1
-
- Tax rates for married filing jointly, Married Filing Jointly
- Y-2
-
- Tax rates for married filing separately, Married Filing Separately
- Z
-
- Tax rates for head of household filing, How to file.
- Schedules A-F, R, SE (Form 1040) (see Form 1040)
- Schedules:
-
- Form 1040A, 1-3 (see Form 1040A)
- Scholarships and fellowships, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply.
- Scholarships and fellowships:
-
- Earned income including, Earned income defined.
- Exclusion from gross income, Scholarships and fellowships.
- Teaching or research fellowships, Payment for services.
- Tuition deduction, effect on, Tax-free educational assistance.
- Scientific organizations:
-
- Charitable contributions to, Types of Qualified Organizations
- Scrip dividends, Scrip dividends.
- Second homes (see Vacation homes)
- Second mortgages:
-
- Interest, Home Mortgage
Interest
- Section 1202 exclusion:
-
- Capital gains or losses under, Gain on qualified small business stock.
- Section 1244 stock:
-
- Losses on, Losses on Section 1244 (Small Business) Stock
- Section 1250 gains:
-
- Sale of real property subject to, Unrecaptured section 1250 gain.
- Section 179 deductions:
-
- Adjustment to basis for, Depreciation and section 179 deduction.
- Car expenses, Depreciation and section 179 deductions.
- Section 179 election:
-
- Rental property, not permitted, Section 179 election.
- Section 457 deferred compensation plans:, Section 457 deferred compensation plans.
-
- Deemed IRAs, Important Changes for 2003
- Early distributions from, Important Reminders,
- Required distributions, Tax on Excess Accumulation
- Rollovers:
-
- To IRAs, Rollover From Employer's Plan Into an IRA
- Section 72(m)(5), Other taxes.
- Securities, Brokerage and other accounts.
-
- (see also Brokers)
- Securities:, Dividends and Other Corporate Distributions, Reporting Gains and Losses
-
- (see also Capital gains)
- (see also Dividends)
- Adjusted basis for, Stocks and Bonds
- As capital assets, Capital Assets and Noncapital Assets, Stocks, stock rights, and bonds.
- Bought at various times, how to indicate, Sale of property bought at various times.
- Claim for refund, Exceptions for special types of refunds.
- Constructive ownership of stock, determination of, Constructive ownership of stock.
- Convertible stocks and bonds, Convertible stocks and bonds.
- Fractional shares, Fractional shares.
- Holding period, determination of, Securities traded on established market.
- Joint owners, reporting of dividends, Stock certificate in two or more names.
- Nontaxable trades, Corporate stocks.
- Options, Stock Options, Distributions of Stock
and Stock Rights
- Preferred stock, redeemable at a premium, Preferred stock redeemable at a premium.
- Redemption of stock, Redemption of stock.
- Reinvestment plan, dividends used for, Dividends Used to Buy More Stock
- Rollover of gain from publicly traded securities, Rollover of Gain From Publicly Traded Securities
- Sale expenses, how to adjust for, Sale expenses.
- Short-term gains and losses, Short-term gains and losses.
- Stock appreciation rights, Stock appreciation rights.
- Stock rights:
-
- As capital assets, Stocks, stock rights, and bonds.
- Dividends as, Distributions of Stock
and Stock Rights
- Holding period, determination of, Nontaxable stock rights.
- Worthless, Worthless securities.
- Surrender of stock, Surrender of stock.
- Tax-exempt:
-
- Home equity loan proceeds invested in, Mortgage proceeds invested in tax-exempt securities.
- Interest incurred to produce income from, Investment Interest
- Interest to purchase or carry, not deductible, Items You
Cannot Deduct
- Tenants by the entirety owning, reporting of dividends, Stock certificate in two or more names.
- Tenants in common owning, reporting of dividends, Stock certificate in two or more names.
- Worthless securities, Worthless securities.
- Security deposits:
-
- Rental property, for, Security deposits.
- Self-employed persons, Self-employment tax.
-
- (see also Self-employment tax)
- Self-employed persons:
-
- Corporate directors as, Corporate director.
- Definition, Self-Employed Persons
- Filing requirements (Table 1–3),
- Foreign government or international organizations, U.S. citizens employed by, Employees of foreign governments or international organizations.
- Gross income, Self-employed individuals.
- Gross income:
-
- Deceased taxpayer, Self-employment income., Coverdell Education Savings Account (ESA)
- Health insurance costs, deductible as medical expense, Important Changes for 2003, Important Changes, Health Insurance Costs for Self-Employed
Persons
- Homeworkers, deduction of expenses, Statutory employees.
- IRAs, Self-employment income.
- Meal allowance not permitted when more than 10% ownership of corporation, Related to employer.
- Ministers, Ministers.
- Moving expenses deduction time test, Time Test for Self-Employed Persons
- Nonemployee compensation, Nonemployee compensation.
- Qualified retirement plans for, Qualified plans for self-employed individuals.
- Travel outside U.S., Exception 1 – No substantial control.
- Work-related education, Self-Employed Persons
- Self-employment tax, Other taxes.
- Self-employment tax:
-
- Deduction of, Self-employment tax.
- Deduction of:
-
- List of deductible taxes (Table 25–1),
- Rental income, How To Report
Rental Income
and Expenses
- Seller-financed mortgages, Seller-financed mortgage.
- Seminars:
-
- Investment-related, Investment-Related Seminars
- Senior Companion Program, National Senior Services Corps programs.
- Separate returns (see Married filing separately)
- Separated taxpayers:, Married persons living apart.
-
- Dependent support test, Support Test for
Child of Divorced or
Separated Parents
- Dependent support test:
-
- Chart (Figure 3–B),
- Post-1984 divorce decree or separation agreement, Divorce decree or separation agreement made after 1984.
- Filing status, Married Filing Separately, Considered Unmarried
- IRAs, Spousal IRA.
- Medical and dental expenses of children of, Child of divorced or separated parents.
- Mortgage interest, Divorced or separated individuals.
- Nonresident alien spouse, Nonresident alien spouse.
- Personal exemption, Divorced or separated spouse.
- Separation agreements:
-
- Defined for purposes of alimony, Divorce or separation instrument.
- SEPs (see Simplified employee pensions (SEPs))
- Series EE and E savings bonds, Series EE and series I bonds. (see U.S. savings bonds)
- Series HH and H savings bonds, Series HH Bonds.
- Series I savings bonds, Series EE and series I bonds.
- Service Center addresses, Mailing your return.
- Service charges, Service Charges on
Dividend Reinvestment Plans
- Service charges:
-
- Credit card payment of taxes, Credit card.
- Deductibility of, Items You
Cannot Deduct
- Employer treating as wages for tip income, Keeping a Daily Tip Record
- Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE).
- Services:
-
- No charitable deduction for value of,
- Property received for, Property Received for Services
- Settlement date of securities transaction, Securities traded on established market.
- Settlement fees:
-
- Real property transactions, Settlement costs.
- Sale of home, Settlement fees or closing costs.
- Severance pay:, Severance pay.
-
- Accrued leave payment, Accrued leave payment.
- Outplacement services, Outplacement services.
- Shipping:
-
- Business-related travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Payment of tax via delivery services, Important Reminders, Private delivery services.
- Shipwrecks:
-
- Casualty loss due to, Deductible losses.
- Short tax year:
-
- Change in annual accounting period, Persons not eligible for the standard deduction.
- Short-term debt instruments:
-
- Government obligations, Short-term government obligations.
- Ordinary gain, Short-term nongovernment obligations.
- Short-term gains and losses:, Character of gain or loss., Short-term gains and losses.
-
- Priority in deducting, Use short-term losses first.
- Sale or trade of property held 1 year or less, Long term or short term.
- Sick leave:
-
- Cash payments for unused leave, Unused sick leave used to pay premiums.
- Federal employees buying back, Federal Employees' Compensation Act (FECA).
- Sick pay:
-
- FECA payments, Federal Employees' Compensation Act (FECA).
- Income, Sick pay.
- Railroad Unemployment Insurance Act, Railroad sick pay.
- Withholding, Supplemental Wages, Sick Pay
- Signatures, Signatures
- Signatures:
-
- Agent, use of, When someone can sign for you.
- E-file Forms 8453 and 8453-OL for signature requirements, Forms 8453 and 8453–OL.
- Joint returns, Signing a joint return.
- Joint returns:
-
- Spouse died during year, Signing the return.
- Mentally incompetent, Unable to sign.
- Parent for child, Spouse unable to sign.
- Physically disabled, Unable to sign.
- Self-Select PIN acting as electronic signature, Electronic signatures.
- Silver (see Gold and silver)
- SIMPLE plans:
-
- Contribution limits, Important Changes for 2003, Important Changes for 2004
- Rollover to Roth IRA, Converting from a SIMPLE IRA.
- Simplified employee pensions (SEPs):, Important Reminders
-
- IRAs as, Kinds of traditional IRAs.
- Simplified Method:
-
- Computation of taxable annuity, How to use it.
- Computation of taxable annuity:
-
- Worksheet, How to use it.
- Single taxpayers:
-
- Charitable contributions to, no deduction for, , Contributions To Individuals
- Filing requirements, Individuals—In General
- Filing status, Filing status., Unmarried persons., Single
- Form 1040EZ, use of, You can use Form 1040EZ if all of the following apply., Single
- Gross income filing requirements (Table 1–1),
- Standard deduction (Table 22–1),
- Tax rates (Schedule X), Single
- Small businesses:
-
- Capital gains or losses from stock of, Gain on qualified small business stock.
- Keogh plans, Qualified plans for self-employed individuals.
- Losses on stock of, Losses on Section 1244 (Small Business) Stock
- Smoking cessation programs:
-
- Deductibility as medical expense,
- Social clubs:
-
- Contributions to, no charitable deduction for,
- Dues:
-
- Not entertainment expenses, Club dues and membership fees.
- Social security and Medicare tax, Other taxes.
- Social security and Medicare taxes:
-
- 2003 changes, Important Changes for 2003
- Group-term life insurance, taxes owed on:
-
- Reporting of (Table 1–3),
- Tips, taxes owed on:
-
- Reporting (Table 1–3),
- Social security benefits:, Social Security and Equivalent Railroad Retirement Benefits, Repayment of benefits received in an earlier year.
-
- Deductions related to, Deductions Related to Your Benefits
- Dependency exemption support test, Social security benefit payments.
- Employer retirement plans different from, Social security or railroad retirement.
- Estimated tax, Tax withholding and estimated tax.
- Foreign employer, Social security and Medicare taxes.
- Form SSA–1042S for nonresident aliens, Introduction
- Form SSA–1099, The 1099 Series, Introduction
- Group-term life insurance, taxes owed on, You must use Form 1040 if any of the following apply.
- Income, You can use Form 1040A if all of the following apply.
- IRAs for recipients of benefits, Social security recipients.
- Joint returns, Joint return.
- Lump-sum election, Lump-sum election.
- Married filing separately, Special Rules, Benefits not taxable.
- Paid by employer, Social security and Medicare taxes paid by employer.
- Repayment of benefits, Repayment of benefits., Repaid social security benefits.
- Repayments, Repayments of
Social Security Benefits
- Reporting of, How To Report
Your Benefits
- Taxability of, Are Any of Your Benefits Taxable?, How Much Is Taxable?
- Tips, taxes owed on, You must use Form 1040 if any of the following apply.
- Withholding for, Federal Payments, Tax withholding and estimated tax.
- Withholding for:
-
- Not deductible, Taxes and Fees
You Cannot Deduct
- Social Security Numbers (SSNs), Social Security Number, Taxpayer identification number.
- Social Security Numbers (SSNs):
-
- Alimony recipient's number required, How To Deduct Alimony Paid, How To Report Alimony Received
- Child's, Important Reminders
- Child's:
-
- Number to be obtained at birth, Born and died in 2003.
- Correspondence with IRS, include SSN, SSN on correspondence.
- Dependents, Important Reminders, Dependent's social security number.
- Dependents:
-
- Exception, Exception.
- Dividend payers to use, Social security number (SSN).
- Earned Income Credit, Rule 2. You Must Have a Valid Social Security Number (SSN), Social security number.
- Failure to include penalty, Penalty for not providing social security number.
- Form SS–-5 to request number, No social security number.
- Label, number need to be written in, Important Reminders
- Nonresident alien spouse, Nonresident alien spouse.
- Penalty for failure to provide:
-
- To dividend payers, Social security number (SSN).
- Social Security Card, Rule 2. You Must Have a Valid Social Security Number (SSN)
- Social security/Medicare, Important Changes for 2003
-
- (see also Excess withholding credit)
- Sonic booms:
-
- Casualty loss due to, Deductible losses.
- Special depreciation allowance, Important Change, Special Depreciation Allowance
- Special needs children:
-
- Adoption credit, Child with special needs.
- Spouse (see Married taxpayers) (see Surviving spouse)
- Spouse:
-
- Disabled, qualifying for dependent care credit, Rule for student-spouse or spouse not able to care for self.
- Student, Rule for student-spouse or spouse not able to care for self.
- SSNs (see Social Security Numbers (SSNs))
- Stamp taxes:
-
- Real estate transactions and, Transfer taxes (or stamp taxes).
- Stamps (see Collectibles)
- Standard deduction:, Standard Deduction, Married persons who filed separate returns.
-
- 2003 changes, Important Changes for 2003
- Age 65 or older, Higher Standard Deduction
for Age (65 or Older)
- Age 65 or older:
-
- Chart for filing status (Table 22–2),
- Amount, Standard Deduction Amount
- Blind persons, Higher Standard Deduction
for Blindness
- Blind persons:
-
- Chart for filing status (Table 22–2),
- Changing from itemized to standard deduction (or vice versa), Changing your mind.
- Comparison with itemized deduction amount, Who Should Itemize
- Defined, Introduction
- Dependents, Standard Deduction
for Dependents
- Dependents:
-
- Worksheet (Table 22–3),
- Final return of decedent, Decedent's final return.
- Increase in, Important Changes
- Married filing separately:
-
- Chart (Table 22–1),
- One spouse has itemized, Persons not eligible for the standard deduction.
- Married taxpayers (Table 22–1),
- Not allowed in certain situations, Persons not eligible for the standard deduction.
- Purpose of, Introduction
- Single taxpayers (Table 22–1),
- Standard meal allowance:, 50% limit on meals., Standard meal allowance., Who can use the standard meal allowance., The federal rate., The standard meal allowance.
-
- Amount of, Amount of standard meal allowance.
- Areas outside continental U.S., Standard meal allowance for areas outside the continental United States.
- Prorating on partial days of travel, Prorating the standard meal allowance on partial days of travel.
- Standard mileage rates:, Standard Mileage Rate
-
- 2003 rates, Important Changes for 2003, Important Changes for 2004
- Business-related miles, Important Changes, Car Expenses, Standard Mileage Rate
- Car expenses, Car Expenses
- Charitable organization service, auto use for, Car expenses.
- Medical reasons for use of car, Important Changes, Car expenses.
- Not allowed, Standard mileage rate not allowed.
- Work-related education, Important Change for 2003
- State bar associations:
-
- Bar review courses, Bar or CPA Review Course
- Charitable contributions to, Contributions To Nonqualified Organizations
- State or local governments
-
- Employees
-
- Section 457 plans for (see Section 457 deferred compensation plans)
- State or local governments:
-
- Benefit payments, Support provided by the state (food stamps, housing, etc.).
- Bonds, tax-exempt, Tax-exempt state and local government bonds.
- Charitable contributions to, Types of Qualified Organizations,
- Employees:
-
- Unemployment compensation, State employees.
- Fee-basis officials:
-
- Business expenses of, Special Rules
- Work-related education expenses, Performing Artists and Fee-Basis Officials
- Income taxes (see State or local income taxes)
- State or local income taxes:
-
- Deduction of, State or local taxes., State and Local Income Taxes
- Deduction of:
-
- List of deductible taxes (Table 25–1),
- Schedule A (Form 1040), State and local income taxes.
- Electronic returns filed with federal, State returns.
- Exception to deduction, Exception.
- Federal changes, effect on, Effect on state tax liability.
- Form W–2 to show withheld taxes, Withheld taxes.
- Interest on, not deductible, Personal Interest
- Itemized deductions, Electing to itemize for state tax or other purposes.
- Joint state and local returns but federal returns filed separately, Joint state and local returns.
- Married filing separately, Separate federal returns.
- Refunds, treatment of, State income tax refund., Refund applied to taxes., Refund (or credit) of state or local income taxes.
- State:
-
- Obligations, interest on, State or Local
Government Obligations
- Officials, State and local government officials paid on a fee basis., Officials Paid on a Fee Basis
- Statute of limitations:
-
- Claim for refunds, Time for filing a claim for refund.
- Statutory employees, Statutory employees.
- Stock appreciation rights, Stock appreciation rights.
- Stock bonus plans, Pensions and Annuities
- Stock certificates:
-
- Charitable contributions, date of, Stock certificate.
- Stock options, Stock Options, Distributions of Stock
and Stock Rights
- Stockholders, Exceptions for special types of refunds.
-
- (see also Securities)
- Stockholders' meeting expenses, Stockholders' Meetings
- Stockholders:
-
- Debts, Stockholder debt.
- Stocks (see Dividends) (see Securities)
- Stolen funds:
-
- Reporting of, Illegal income.
- Stolen property (see Theft losses)
- Stop-smoking programs:
-
- Deductibility as medical expense,
- Storms, Disaster relief.
-
- (see also Disaster relief)
- Storms:
-
- Casualty loss due to, Deductible losses.
- Straddles:
-
- Interest from, Investment Interest
- Straight line method of depreciation, Depreciation Methods
- Strike benefits, Strike and lockout benefits.
- Student loan:
-
- Iinterest deduction
-
- Eligible student, Eligible student.
- Interest deduction
-
- Academic period, Academic period.
- Eligible educational institution, Eligible educational institution.
- Qualified student loan, Qualified Student Loan
- Student loans:
-
- Cancellation of debt, Student loans.
- Interest deduction, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply., Student Loan Interest Deduction, Important Reminders, Personal Interest
- Interest deduction:
-
- Amount of deduction, How Much Can You Deduct?
- Claiming, Can You Claim the Deduction?, How Do You Figure the Deduction?
- Double deduction not allowed, No Double Benefit Allowed
- Expenses of dependent, Who Can Claim a Dependent's Expenses?
- Features of (Table 21–1), Qualified Student Loan
- Married filing separately, Special Rules
- Worksheet, How Do You Figure the Deduction?
- Interest, defined, Student Loan Interest Defined
- Student claimed as exemption on tax return of another person, Can You Claim the Deduction?
- Students, Tax Benefits for Work-Related Education
-
- (see also Educational assistance)
- (see also Work-related education)
- Credit (see Education credits)
- Loans (see Student loans)
- Scholarships (see Scholarships and fellowships)
- Tuition deduction (see Tuition)
- Tuition programs, qualified (see Qualified tuition programs)
- Students:, Student living with you.
-
- Dependency exemption test, Child under age 19.
-
- (see also Dependents)
- Exemption from withholding, Student.
- Foreign students, Foreign students' place of residence., Expenses Paid for Student Living With You
- Substitute forms, Substitute tax forms.
- Sunday, deadline falling on, Saturday, Sunday, holiday rule.
- Supplemental wages, Supplemental Wages
- Supplies:
-
- Classroom, Educator Expenses
- Regularly used or consumed in ordinary course of trade or business, Capital Assets and Noncapital Assets
- Support test for dependents:, Support Test
-
- Armed forces, Armed Forces dependency allotments.
- Child's wages used for own support, Child's wages used for own support.
- Divorced or separated parents, child of, Support Test for
Child of Divorced or
Separated Parents
- Divorced or separated parents, child of:
-
- Chart (Figure 3–B),
- Foster care payments and expenses, Foster care payments and expenses.
- Social security benefit payments, Social security benefit payments.
- State-provided support, Support provided by the state (food stamps, housing, etc.).
- Tax exempt income, Tax-exempt income.
- Total support, Total Support
- Worksheet for determining (Table 3–1), Table 3–1. Worksheet for Determining Support, Table 3–1. Worksheet for Determining Support
- Surveys:
-
- Property basis to include, Settlement costs.
- Surviving spouse
-
- Tax (see Estates)
- Surviving spouse:
-
- Annuity, Survivors
- Filing status, Head of household or qualifying widow(er) with dependent child.
- Filing status:
-
- With dependent child, Qualifying Widow(er)
With Dependent Child
- Gross income filing requirements (Table 1–1),
- Life insurance proceeds paid to, Surviving spouse.
- Rollovers by, Important Reminders, Rollover by surviving spouse.
- Synagogues (see Churches, temples, etc.)
T
- Tables and figures:
-
- Adjusted basis, examples of (Table 14–1),
- Alimony requirements (instruments executed after 1984) (Table 20–1),
- Capital gain rates (Table 17–1),
- Car expenses, reporting of (Table 29–3), Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Casualty and theft losses:
-
- Deduction limits for personal property (Table 28–1),
- Deduction of loss, when to take (Table 28–2),
- Charitable contributions, deductibility of (Table 27–1),
- Children's income:
-
- Inclusion on parent's return (Figure 33–A), Effect of Making the Election
- Investment income more than $1,500, reporting of (Figure 33–B),
- Dependents:
-
- Divorced taxpayers, support test chart (Figure 3–B),
- Exemptions, chart summarizing claims (Figure 3–A),
- Support test (Table 3–1), Table 3–1. Worksheet for Determining Support, Table 3–1. Worksheet for Determining Support
- Education credits, comparison chart (Table 37–1),
- Entertainment expenses:
-
- 50% limit (Figure 29–A), 50% Limit,
- Proof of (Table 29–2), Table 28–2. How To Prove Certain Business Expenses
- Reporting of (Table 29–3), Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Estimated tax, who must make payments (Figure 5–A), Who Must Pay
Estimated Tax?
- Filing requirements:
-
- Dependents (Table 1–2),
- Gross income levels (Table 1–1),
- Other situations requiring filing (Table 1–3),
- Gift expenses:
-
- Proof of (Table 29–2), Table 28–2. How To Prove Certain Business Expenses
- Reporting of (Table 29–3), Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Head of household, qualifying person (Table 2–1), Table 2–1. Who Is a Qualifying Person for Filing as Head of Household? 1
- Individual retirement arrangements (IRAs):
-
- Figuring modified AGI (Worksheet 18–1),
- Modified AGI, effect on deduction if covered by retirement plan at work (Table 18–1),
- Modified AGI, effect on deduction if not covered by retirement plan at work (Table 18–2),
- Roth IRAs, effect of modified AGI on contributions (Table 18–3),
- Roth IRAs, modified AGI (Worksheet 18–2),
- Interest deductions, forms to use (Table 25–1), Mortgage proceeds used for business or investment.,
- Meal expenses and 50% limit (Figure 29–A), 50% Limit,
- Medical and dental expenses:
-
- Checklist for deductible expense (Table 23–1), What Medical Expenses Are Includible?
- Reimbursement, excess algorithm (Figure 23–A), Reimbursement in a later year.
- Mortgage deduction (Figure 25–A), Fully deductible interest.
- Moving expenses:
-
- Distance test (Figure 19–A), Time Test
- Qualifying moves within U.S., non-military (Figure 19–B), Joint Return
- Time test (Table 19–1), ,
- Points, to determine if deductible in year paid (Figure 25–B), Exception.
- Retirement plans credit (Table 39–1), Limit on the credit.
- Roth IRA and modified adjusted gross income (MAGI) phaseout (Table 18–3),
- Standard deduction:
-
- Chart for most taxpayers (Table 22–1),
- Chart for people 65 and over or blind (Table 22–2),
- Worksheet for dependents (Table 22–3),
- Student loan interest deduction (Table 21–1), Qualified Student Loan
- Tax returns:
-
- Due dates (Table 1–5),
- Steps to prepare (Table 1–6), How Do I Prepare
My Return?
- Taxes that are deductible (Table 25–1),
- Travel and transportation expenses:
-
- Examples of deductible expenses (Table 29–1), Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Local transportation (Figure 29–B), Illustration of transportation expenses.
- Proof of (Table 29–2), Table 28–2. How To Prove Certain Business Expenses
- Reporting of (Table 29–3), Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Tuition deduction (Table 21–3), Tuition and Fees Deduction
- Tuition deduction (Table 21–3):
-
- Claiming dependent's expenses (Table 21–4), Tuition and Fees Deduction
- Volunteers, deductibility of contributions (Table 27–2),
- Work-related education (Figure 29–A), Certification in a new state.
- Tax counsel fees, Tax Preparation Fees
(Line 21)
- Tax Counseling for the Elderly, Free Help With Your Return
- Tax credits (see Credits)
- Tax evasion, Criminal Penalties
- Tax figured by IRS, Tax Figured by IRS
- Tax help, Free Help With Your Return
- Tax help:, Important Reminders, Help from the IRS., How To Get Tax Help
-
- Forms and publications:
-
- Download from Web, Help from the IRS., How To Get Tax Help
- Phone, Help from the IRS., Free tax services.
- Tax Counseling for the Elderly, Free Help With Your Return
- Volunteer counseling (Volunteer Income Tax Assistance program), Free Help With Your Return, Volunteer tax counseling.
- Web site of IRS, Help from the IRS., Free tax services.
- Tax preference items, Adjustments and tax preference items.
- Tax rates:
-
- Head of household filing (Schedule Z), How to file.
- Married filing jointly (Schedule Y–1), Married Filing Jointly
- Married filing separately (Schedule Y–2), Married Filing Separately
- Reduction for 2003, Important Changes for 2003
- Single person filing (Schedule X), Single
- Tax refunds:
-
- Agreement with IRS extending assessment period, claim based on, Exceptions for special types of refunds.
- Bad debts, Exceptions for special types of refunds.
- Business tax credit carrybacks, Exceptions for special types of refunds.
- Cashing check, Cashing your refund check.
- Check's expiration date, Cashing your refund check.
- Claim for, Interest on Refunds, Amended Returns and
Claims for Refund, Processing claims for refund.
- Claim for:
-
- Limitations period, Time for filing a claim for refund.
- Litigation, Taking your claim to court.
- Deceased taxpayer, Filing to get a refund., Claiming a refund.
- Direct deposit, Direct Deposit.
- Erroneous refunds, Interest on erroneous refund.
- Federal income tax refunds, Federal income tax refund.
- Financially disabled, Financially disabled.
- Foreign tax paid or accrued, Exceptions for special types of refunds.
- General rules, Refunds.
- Injured spouse claim, Exceptions for special types of refunds.
- Inquiries, Refund inquiries.
- Interest on, Interest on Refunds, Interest on refund., Interest on tax refunds.
- Late filed returns, Important Reminders, Late-filed return.
- Less than $1, Overpayment less than one dollar.
- Limits, Limit on amount of refund., Tax paid.
- Limits:
-
- Exceptions, Exceptions for special types of refunds.
- More or less than expected, Refund more or less than expected.
- Net operating loss carryback, Exceptions for special types of refunds.
- Offset:
-
- Against debts, Offset against debts., Offset against debts.
- Against next year's tax, Refunds, How To Pay Estimated Tax, Crediting an Overpayment
- Past-due, Refund inquiries., Past-Due Refund
- Real estate taxes, treatment of, Refund (or rebate).
- Reduced, Reduced refund.
- State and local income tax refunds, State income tax refund., Refund applied to taxes., Refund (or credit) of state or local income taxes.
- State liability, effect on, Effect on state tax liability.
- Withholding, Who Should File
- Worthless securities, Exceptions for special types of refunds.
- Worthless securities:
-
- Claim for refund, Filing a claim for refund.
- Tax return preparation:
-
- Rental expenses, Tax return preparation.
- Tax returns, , Signatures, Accounting period.
-
- (see also Due dates)
- (see also Joint Returns)
- (see also Signatures)
- Joint returns (see Joint Returns)
- Tax returns:
-
- Aliens, Aliens
- Amended, Amended Returns and
Claims for Refund, Form 1040X., Filing Form 1040X., Changing your mind.
-
- (see also Form 1040X)
- Attachments to returns, Attachments
- Child, Spouse unable to sign.
- Copies of, Copies of returns.
- Dating of, Signatures
- Deceased taxpayer (see Final return for decedent)
- Estate tax return, Important Reminders
- Filing of, Filing Information, Important Changes
-
- (see also Filing requirements)
- Forms to use, Which Form
Should I Use?
- Free preparation help, Free Help With Your Return
- How to file, How Do I Prepare
My Return?
- Mailing of, Important Reminders, Mailing your return.
- Paid preparer, Paid Preparer
- Payment with, Amount You Owe
- Phone number to be included, Important Reminders
- Preparation fees, Tax Preparation Fees
(Line 21)
- Preparers, Paid Preparer
- Private delivery services, Important Reminders, Private delivery services.
- Request copy of, Form 4506, Copies of returns.
- Steps to prepare (Table 1–6), How Do I Prepare
My Return?
- Third party designee, Important Reminders, Third Party Designee
- Transcript of returns, Form 4506, Transcript.
- Who must file, Important Changes, Do I Have To
File a Return?, Who Should File
- Tax shelters:
-
- Penalty for failure to furnish registration number, Failure to furnish tax shelter registration number.
- Rental property and at-risk rules, At-Risk Rules
- Tax year, When Do I
Have To File?, When Do I Report My
Income and Expenses?, Accounting Periods
-
- (see also Accounting periods)
- Tax-exempt:
-
- Bonds and other obligations, State or Local
Government Obligations
- Income, Tax-Exempt Income Expenses
- Interest, State or Local
Government Obligations
- Obligations
-
- Adjusted basis, Tax-exempt bonds.
- Organizations
-
- Related party transactions, Losses on sales or trades of property.
- Section 457 deferred compensation plans, Section 457 deferred compensation plans.
- Tax-free corporate distributions:
-
- Adjustment to basis for, Decreases to Basis
- Tax-free exchanges:
-
- Definition of, Nontaxable Exchanges
- Holding period, determination of, Nontaxable trades.
- Taxable exchanges:
-
- Definition of, Taxable Exchanges
- Taxes
-
- Excise (see Excise taxes)
- Kiddie tax (see Children, subheading: Investment income of child under age 14)
- Sales tax, Cost Basis
- Taxes:, Taxes, Real Estate Taxes, Other taxes., Taxes paid on your car., Tax.
-
- (see also Real estate taxes)
- (see also Sales tax)
- Alternative minimum, Alternative
Minimum Tax
- Business taxes, deduction of, Business taxes.
- Deduction of, Tests To Deduct
Any Tax
- Deduction of:
-
- Schedules to use, Where To Deduct
- Types of taxes deductible (Table 25–1),
- Estate (see Estates)
- Estimated (see Estimated tax)
- Federal income taxes, not deductible, Taxes and Fees
You Cannot Deduct
- Foreign taxes, Foreign taxes.
- Foreign taxes:
-
- Income tax. deduction of, Foreign Income Taxes
- Gift taxes, Taxes and Fees
You Cannot Deduct
- How to figure, How To Figure Your Tax
- Income taxes, deduction of, Income Taxes
- Indian tribal government taxes, deduction of, Indian tribal government.
- Inheritance tax, Taxes and Fees
You Cannot Deduct
- Kiddie tax (see Children, subheading: Investment income of child under age 14)
- Nanny tax (see Domestic help)
- Not deductible, Taxes and Fees
You Cannot Deduct
- Personal property taxes:
-
- Car taxes, Taxes paid on your car.
- Deduction of, Personal Property Taxes
- Withholding, Withholding
- Taxis:
-
- Business-related travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Standard mileage rate not allowed, Standard mileage rate not allowed.
- Taxpayer Assistance Center, Important Reminders
- Taxpayer identification numbers (TINs):, Important Reminders, Taxpayer identification number.
-
- Adoption (ATIN), Adoption taxpayer identification number (ATIN).
- Child and dependent care credit, Provider
Identification Test
- Child care provider, Provider
Identification Test
- Individual (ITIN), Individual taxpayer identification number (ITIN)., Born and died in 2003.
- Social Security Numbers (see Social Security Numbers (SSNs))
- Teachers:
-
- Expenses, deduction of, You can use Form 1040A if all of the following apply., Educator Expenses
- Work-related education, Requirements for Teachers, Teaching and Related Duties
- Telefile, Using a Telephone (TeleFile), E-file by phone.
- Telephones, Residential Telephone Service
- Telephones:
-
- Business-related travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Fraud or misconduct of IRS employee, number for reporting anonymously, Important Reminders
- Tax return to include phone number, Important Reminders
- Temples (see Churches, temples, etc.)
- Temporary absence from job:
-
- Work-related education during, Temporary absence.
- Temporary job assignments:
-
- Travel expenses, Temporary Assignment
or Job
- Tenants (see Rental income and expenses)
- Tenants by the entirety:
-
- Alimony, no deduction for taxes and insurance paid on home owned as, Taxes and insurance.
- Dividends, reporting of, Stock certificate in two or more names.
- Real estate taxes, allocation when filing separately, Tenants by the entirety.
- Tenants in common:
-
- Alimony deduction for taxes and insurance paid on home owned as, Taxes and insurance.
- Dividends, reporting of, Stock certificate in two or more names.
- Tenants:
-
- By the entirety, General Information
- In common, General Information
- Terminal illness:
-
- Accelerated payment of life insurance proceeds (see Accelerated death benefits)
- Viatical settlements, Viatical settlement.
- Termite damage:
-
- Not casualty losses, Progressive deterioration.
- Terrorist attacks:
-
- Casualty loss due to, Deductible losses.
- Disability payments for injuries from, tax exclusion, Disability Pensions
- Disability pensions for federal employees, Terrorist attack or military action.
- Victims of, tax relief, Important Reminders
- Theft losses, Certain Casualty and
Theft Losses, Certain Casualty and
Theft Losses
- Theft losses:, Nonbusiness Casualty and Theft Losses, Net operating loss (NOL).
-
- $100 Rule, $100 Rule
- Adjusted basis in property, Decreases to Basis, Casualties and thefts., Involuntary Conversions, Adjusted Basis
- Amount of loss, Amount of Loss
- Appraisals, Appraisal., Costs of photographs and appraisals.
- Cost of cleaning up or making repairs, Cost of cleaning up or making repairs.
- Costs of photographs and appraisals, Costs of photographs and appraisals.
- Deduction of loss:
-
- When to take (Table 28–2),
- Definition of theft, Theft
- Fair market value of stolen property, FMV of stolen property.
- Form 4684 to be filed, Forms to file.
- Insurance proceeds, treatment of, Insurance and Other
Reimbursements
- Net operating losses, Net operating loss (NOL).
- Proof of loss, Theft loss proof.
- Property used partly for business and partly for personal purposes, Property used partly for business and partly for personal purposes.
- Recovered stolen property, Recovered stolen property.
- Reimbursement, Insurance and Other
Reimbursements
- Reporting of gain or loss, When To Report
Gains and Losses, Theft loss., How To Report
Gains and Losses
- Third parties:
-
- Alimony payments made to, Payments to a third party., Other payments to a third party., Payments to a third party.
- Dependent support test, Third-party support., Remarried parent.
- Designee for IRS to discuss return with, Important Reminders, Third Party Designee, Third party designee.
- Income from taxpayer's property paid to, Payment to third party.
- Threats:
-
- Losses due to, Theft
- Tickets (see Entertainment expenses)
- Tip expense:
-
- Business meal or entertainment activity, 50% deduction limit, Included expenses.
- Business travel expense, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes., Incidental expenses.
- Tip income, Tip Income, How to report allocated tips.
- Tip income:
-
- Allocated tips, Allocated tips., Allocated Tips, Must you report your allocated tips on your return?, How to report allocated tips.
- Daily record of tips, Introduction, Keeping a Daily Tip Record
- Electronic tip record, Electronic tip record.
- Form 4070A for daily records, How to keep a daily tip record.
- Noncash tips, Introduction, How to keep a daily tip record., What tips to report., What tips to report.
- Penalty for failure to report, Penalty for not reporting tips.
- Reporting on tax return, Reporting Tips on Your Tax Return
- Reporting tips to employer, Introduction, Reporting Tips to Your Employer, What tips to report.
- Reporting tips to employer:
-
- Failure to report to employer, You must use Form 1040 if any of the following apply., Penalty for not reporting tips.
- Form 4070 for, How to report.
- Service charges paid by employer as wages, Keeping a Daily Tip Record
- Social security and Medicare tax:
-
- Employer reporting for purposes of, Why report tips to your employer?
- Filing requirements (Table 1–3),
- Uncollected, You must use Form 1040 if any of the following apply.
- Tip Rate Determination and Education Program, Tip Rate Determination and Education Program
- Tip-splitting or tip-pooling arrangements, Introduction, How to keep a daily tip record.
- Uncollected taxes, Giving your employer money for taxes., Reporting uncollected social security and Medicare taxes on tips.
- Withholding, Tips, Why report tips to your employer?
- Withholding:
-
- Employee contributing to, Giving your employer money for taxes.
- Underwithholding, Not enough pay to cover taxes., Giving your employer money for taxes.
- Title insurance:
-
- Property basis to include, Settlement costs.
- Title to property:
-
- Abstract fees, property basis to include, Settlement costs.
- Attorneys' fees:
-
- Property basis to include, Settlement costs.
- Tolls:
-
- Business-related travel, Parking fees and tolls.
- Tools, Tools Used in Your Work
- Tools:
-
- Hauling to and from work, Hauling tools or instruments.
- Rental for use on rental property, Rental of equipment.
- Tornadoes, Disaster relief.
-
- (see also Disaster relief)
- Tornadoes:
-
- Casualty loss due to, Deductible losses.
- Tour guides:
-
- Free tour for organizing tour, Free tour.
- Trade Act of 1974:
-
- Trade readjustment allowances under, Types of unemployment compensation.
- Trade associations:
-
- Meetings and entertainment expenses, Trade association meetings.
- Trade of property, Sale of Property
-
- (see also Sale of property)
- Trade of property:
-
- Definition of, What is a Sale or Trade?
- Form 8824 for reporting, How to report.
- Like property and money transferred, Partially nontaxable exchange., Like property and money transferred.
- Like-kind exchanges, Like-Kind Exchanges, Like-kind exchanges.
- Nontaxable exchanges, Nontaxable Exchanges, Nontaxable Trades
- Nontaxable exchanges:
-
- Holding period, determination of, Nontaxable trades.
- Partially nontaxable exchange, Partially nontaxable exchange., Partially nontaxable exchange.
- Reporting of, How to report.
- Taxable exchange, defined, Taxable Exchanges
- Trade-in of car, Sale, Trade-in, or Other Disposition
- Trading date of securities transaction, Securities traded on established market.
- Traditional IRAs (see Individual retirement arrangements (IRAs))
- Traffic violations:
-
- Fines not deductible, Fines and collateral.
- Transfer taxes:
-
- Property basis to include, Settlement costs.
- Real estate transactions and, Transfer taxes (or stamp taxes).
- Transit passes, Transit pass.
- Transportation expenses (see Travel and transportation expenses)
- Transportation workers:
-
- Meal expenses, Special rate for transportation workers.
- Meal expenses:
-
- Deduction limits, Individuals subject to hours of service limits.
- Form 2106 or 2106–EZ, how to complete, Hours of service limits.
- Travel and transportation expenses
-
- Mileage rates (see Standard mileage rates)
- Travel and transportation expenses:, Travel Expenses, Conventions held outside the North American area., Transportation Expenses, Sale, Trade-in, or Other Disposition
-
- Advances, Reimbursement, allowance, or advance., Travel advance.
- Allocation of types of costs, Separating costs., Separating expenses.
- Bona fide business purpose, Bona fide business purpose.
- Business associates, Business associate.
- Business travel, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Business travel:
-
- $75 or less, Exception.
- Confidential information and, Confidential information.
- Employees' expenses, Employee.
- Incidental expenses, Incidental expenses.
- Proof of business purpose, Proving business purpose.
- Receipt not readily available to prove, Exception.
- Spouse or dependents, Travel expenses for another individual.
- Trip outside U.S., Part of Trip Outside
the United States, Travel Outside
the United States, Travel Primarily for Business, Travel Primarily for Personal Reasons
- Trip primarily for business, Trip Primarily for Business
- Trip primarily for personal reasons, Trip Primarily for
Personal Reasons
- U.S. travel, Travel in the
United States
- Unproved amounts, Unproved amounts.
- Visiting clients or customers, Transportation Expenses
- Charitable organization service, deduction for, Travel., Deductible travel expenses.
- Commuting expenses, Commuting expenses.
- Commuting expenses:
-
- Employer-provided commuter vehicle, Commuter highway vehicle.
- Conventions, Conventions
- Conventions:
-
- Delegates, deduction of unreimbursed amount, Conventions.
- Deductible expenses, What Travel Expenses Are Deductible?
- Deductible expenses:
-
- Examples of (Table 29–1), Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes.
- Definition of, Travel expenses defined.
- Employer-provided vehicles, Employer-Provided Vehicles
- Estimates of, How To Prove Expenses
- Expenses paid for others, Travel Expenses for
Another Individual
- Federal crime investigators or prosecutors, Exception for federal crime investigations or prosecutions.
- Form 2106 or 2106–EZ, how to fill out, Transportation expenses.
- Fringe benefits, Transportation
- Getting from home to temporary workplace when multiple regular workplaces, Transportation Expenses
- Going home on days off from temporary assignment, Going home on days off.
- Going to business meeting away from regular workplace, Transportation Expenses
- Going to family home, Travel to family home.
- Indefinite assignment, Temporary assignment vs. indefinite assignment.
- Job search expenses, Job interview expenses.
- Medical purposes, for, , Transportation, Car expenses.
- Mileage rates (see Standard mileage rates)
- New employment, Travel and transportation expenses.
- No main place of business or work, No main place of business or work.
- Nonaccountable plans, definition of, Nonaccountable Plans
- Parking fees:
-
- Business-related travel, Parking fees and tolls.
- Commuting expense, Parking fees.
- Employer-provided fringe benefit, Qualified parking.
- Medical-related travel, Car expenses.
- Probationary work periods, Probationary work period.
- Proof of expenses, How To Prove Expenses
- Proof of expenses:
-
- Summary (Table 29–2), Table 28–2. How To Prove Certain Business Expenses
- Recordkeeping requirements, What Travel Expenses Are Deductible?, Recordkeeping
- Rental property maintenance and management, for, Travel expenses., Local transportation expenses.
- Reporting of, How To Report
- Reporting of:
-
- Table 29–3 showing forms to be used, Table 28–3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements
- Resorts or cruise ships, Trip Primarily for
Personal Reasons
- School children, transporting of, Transporting school children.
- Summary of rules (Figure 28–B), Illustration of transportation expenses.
- Tax home, determination of, Tax Home
- Temporary assignment or job, Temporary Assignment
or Job
- Temporary work location, Temporary work location.
- Tips, Table 28–1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for
business purposes., Incidental expenses.
- Transit pass, Transit pass.
- Work-related education, Important Change for 2003, Transportation Expenses, Travel Expenses
- Traveling salespersons:
-
- Deduction of expenses, Statutory employees.
- Tax home, determination of, Tax Home
- Treasury Inspector General:
-
- Telephone number to report anonymously fraud or misconduct of IRS employee, Important Reminders
- Treasury notes, U.S. obligations.
- Treaties:
-
- Foreign charitable organizations, contributions to, Certain foreign charitable organizations.
- Trees and plants:
-
- Cost of, when casualty or theft loss involved, Progressive deterioration., Landscaping.
- Trust beneficiaries:
-
- Dividends received by, Beneficiary of an estate or trust.
- Losses of trust, Losses.
- Receiving income from trust, Estate and trust income., Current income required to be distributed., Current income not required to be distributed., Gifts and inheritances.
- Rollover restrictions, Rollover by surviving spouse.
- Trustees:
-
- Administrative fees, Trustee's Administrative
Fees for IRA
- IRA, Trustee's Administrative
Fees for IRA
- IRAs:
-
- Fees, Trustees' fees., Trustees' fees.
- Notification of recharacterization, Required notifications.
- Transfer from trustee to trustee, Trustee-to-Trustee Transfer, Conversion methods.
- Trusts, Beneficiary of an estate or trust., Current income required to be distributed., Losses., Other taxes.
-
- (see also Trust beneficiaries)
- Trusts:
-
- Grantor trusts, Grantor trust.
- Income, Estate and trust income.
- Income:
-
- Child beneficiary, Income from property received as a gift.
- Investment interest, Partners, shareholders, and beneficiaries.
- Related party transactions with fiduciaries, Losses on sales or trades of property.
- Tubal ligation:
-
- Deductibility as medical expense,
- Tuition, Hope Credit
-
- (see also Hope credit)
- Credit (see Education credits)
- Qualified programs (see Qualified tuition programs)
- Tuition and fees deduction:
-
- Refund of expenses, Refunds.
- Tuition programs, qualified (see Qualified tuition programs)
- Tuition:, Tuition and Fees Deduction
-
- Alimony payments made to cover, Payments to a third party.
- Charitable deduction not allowed for paying, , Contributions From
Which You Benefit
- Deduction for, You can use Form 1040A if all of the following apply., Tuition and Fees Deduction
- Deduction for:
-
- Claiming for dependent, Who Can Claim a Dependent's Expenses?
- Educational assistance, Tax Benefits for Work-Related Education
-
- (see also Educational assistance)
- Eligible educational institution, defined, Qualified Education Expenses
- Expenses that do not qualify, Expenses That Do Not Qualify
- GI Bill, payments and allowances under, Tuition payments and allowances under the GI Bill.
- Related expenses, defined, Related expenses.
U
- U.S. Citizen
-
- Earned Income Credit, Rule 4. You Must Be a
U.S. Citizen or Resident
Alien All Year
- U.S. obligations, interest, U.S. obligations., U.S. Savings Bonds
- U.S. possessions:
-
- Charitable contributions to, Types of Qualified Organizations
- Deduction of income tax paid to, Foreign Income Taxes
- Income from, Individuals With Income From
U.S. Possessions
- U.S. Postal Service (see Post office employees)
- U.S. savings bonds:
-
- Deceased taxpayer, reporting interest, Interest and Dividend Income
(Forms 1099)
- Education, used for, Special Rules
- Interest on, Interest on qualified savings bonds.
- Transfer between spouses, Property Transferred
From a Spouse
- U.S. Treasury bills or notes:
-
- Trade of, U.S. Treasury notes or bonds.
- Unclaimed reimbursement, Unclaimed reimbursement.
- Underpayment penalties:, Introduction, Underpayment penalty., Underpayment Penalty
-
- IRS computation, Underpayment Penalty
- Undistributed capital gains, Undistributed capital gains of mutual funds and REITs., Long-term gains and losses., Credit for Tax on Undistributed Capital Gain
- Unearned income of child (see Children, subheading: Investment income of child under age 14)
- Unemployment compensation, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply.
- Unemployment compensation:, Unemployment Benefits
-
- Credit card insurance paying, Credit card insurance.
- Mandatory contributions to state funds, deduction of, Contributions to state benefit funds.
- Private fund, from, Private unemployment fund.
- Repayment of benefits, Repayment of unemployment compensation., Repayment of benefits.
- Reporting on Forms 1040, 1040A, or 1040EZ, Unemployment compensation., Supplemental unemployment benefits.
- Supplemental benefits, Supplemental unemployment benefits.
- Voluntary benefit fund contributions, Voluntary Unemployment
Benefit Fund Contributions
- Withholding, Unemployment Compensation, Tax withholding.
- Unemployment tax
-
- State employment taxes, State employment tax.
- Uniform Settlement Statement (Form HUD–1):
-
- Points shown on, Exception.
- Uniforms, Work Clothes and Uniforms
- Uniforms:
-
- Charitable organization requiring, deduction for cost and upkeep of, Uniforms.
- Unions (see Labor unions)
- Unions: (see Labor unions)
-
- Assessments, Union Dues and Expenses
- Dues, Union Dues and Expenses
- United States (see headings starting with Federal or U.S.)
- United Way (see Charitable contributions)
- Universities (see Colleges and universities)
- Unmarried persons (see Single taxpayers)
- Unrecaptured Section 1250 gain, Character of gain or loss., Unrecaptured section 1250 gain.
- Unstated interest, Loans with low or no interest., How To Figure
Gain or Loss
- Unused sick leave:
-
- Cash payments for, Unused sick leave used to pay premiums.
- Use of home in business, Home Office
- Used clothing and household goods:
-
- Charitable deduction for fair market value, Used clothing and household goods.
- Usurious interest, Usurious interest.
- Utilities:
-
- Charges for installing included in property basis, Settlement costs.
- Emergency energy programs, charitable contributions to, Examples.
- Energy conservation subsidies, Energy conservation subsidies., Utility rebates.
- Late payment charges, not deductible, Personal Interest
- Rebates, Utility rebates.
V
- Vacation homes:
-
- Determining if used as home, Examples
- Points, Points
- Rental expenses, Personal Use of
Dwelling Unit
(Including Vacation Home), Dwelling Unit
Used as Home, How To Divide Expenses
- Valuations, Basis of Property (see Appraisals) (see Fair market value (FMV))
- Value of time or services:
-
- No charitable deduction for, , , Value of Time or Services
- Vandalism:
-
- Casualty loss due to, Deductible losses.
- Vasectomy:
-
- Deductibility as medical expense,
- Vehicles (see Cars)
- Veterans Affairs (VA):
-
- Funding fees, not deductible as interest, Amounts charged for services., Items You
Cannot Deduct
- Veterans' benefits:, Veterans' benefits.
-
- Educational assistance, VA payments.
- Educational assistance:
-
- Tuition deduction, effect on, Tax-free educational assistance.
- Retroactive determination, Retroactive VA determination.
- Veterans' insurance:
-
- Dividends on, Dividends on veterans' insurance.
- Veterans' organizations:
-
- Charitable contributions to, Types of Qualified Organizations,
- Charitable contributions to:
-
- 30% limit, 30% Limit
- Viatical settlements, Accelerated Death Benefits, Viatical settlement., Exclusion for terminal illness.
- Victims of terrorism (see Terrorist attacks)
- Virgin Islands:
-
- Income from, Individuals With Income From
U.S. Possessions
- VISTA volunteers, Volunteers in Service to America (VISTA).
- Vitamins:
-
- Not deductible as medical expense,
- Volunteer firefighters:
-
- Charitable contributions to, Examples.
- IRAs, Volunteer firefighters.
- Volunteer work, Volunteer work.
- Volunteer work:, Volunteers
-
- Deductibility of contributions (Table 27–2),
- Out-of-pocket expenses, deductible when serving for qualified organization, , Out-of-Pocket Expenses in Giving Services
- Tax counseling (Volunteer Income Tax Assistance program), Free Help With Your Return, Volunteer tax counseling.
- Value of income lost by, not deductible, Value of Time or Services
- Vouchers for payment of tax, How To Pay Estimated Tax, Using Payment-Vouchers
W
- W-2 form (see Form W–2)
- Wages and salaries, Form W–2., Wages, Salaries, and Other Earnings, Reimbursement for medical care.
-
- (see also Form W–2)
- Wages and salaries:, Salaries and Wages, Withholding, Important Reminder, Restricted Property
-
- (see also Form W–2)
- (see also Withholding)
- Accident and health insurance, Accident or Health Plan
- Accrued leave payment, Accrued leave payment.
- Adoption, employer assistance, Adoption Assistance
- Advance commissions, Advance commissions and other earnings.
- Allowances and reimbursements, Expense allowances., Allowances and reimbursements.
- Archer MSA contributions, Archer MSA contributions.
- Awards and prizes, Bonuses and awards.
- Baby-sitting, Child care providers.
- Back pay awards, Back pay awards.
- Bonuses, Bonuses and awards.
- Child care providers, Child care providers.
- Children's earnings, Child's earnings.
- Clergy, Clergy
- De minimis benefits, De Minimis (Minimal) Benefits
- Disability income, Disability Pensions
- Elective deferrals, Elective deferrals.
- Employee achievement award, Employee achievement award.
- Employee compensation, Employee Compensation
- Farmworkers, Farmworkers.
- Foreign employer, Foreign Employer
- Fringe benefits, Fringe Benefits
- Garnisheed, Garnisheed wages.
- Government cost-of-living allowances, Government cost-of-living allowances.
- Household workers, Household workers.
- Income, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply.
- Income:
-
- Foreign, Important Reminder
- Long-term care coverage, Accident or Health Plan
- Military retirees, Military retirees., Military retirement pay.
- Military service, Military
- Miscellaneous compensation, Miscellaneous Compensation
- Note for services, Note received for services.
- Outplacement services, Outplacement services.
- Religious orders, Members of Religious Orders
- Restricted property, Restricted Property
- Restricted property:
-
- Dividends on restricted stock, Stock you chose to include in income.
- Retirement plan contributions by employer, Retirement Plan Contributions
- Severance pay, Severance pay.
- Sick pay, Sick pay., Other compensation.
- Social security/Medicare taxes paid by employer, Social security and Medicare taxes paid by employer.
- Stock appreciation rights, Stock appreciation rights.
- Stock options, Stock Options
- Supplemental, Supplemental Wages
- Volunteer work, Volunteers
- Waiters and waitresses
-
- Tips (see Tip income)
- War veterans' organizations (see Veterans' organizations)
- War zone (see Combat zone)
- Wash sales, Sales not discussed in this chapter., Property received from a related party.
- Washington State Supplemental Workmen's Compensation Fund, Contributions to state benefit funds.
- Web site of IRS, Help from the IRS., Free tax services.
- Weight-loss programs:
-
- As treatment for disease of obesity, deduction for, Important Reminders
- Welfare benefits, Welfare and Other Public Assistance Benefits
- Wheelchairs:
-
- As medical expense,
- Widow/widower (see Surviving spouse)
- Winter energy payments, Energy conservation subsidies.
- Withholding, Form W–2., Tax Withholding and Estimated Tax, IRS can figure the penalty for you.
-
- (see also Form W–2)
- Tips (see Tip income)
- Withholding:, Backup Withholding, Withholding, Forms W–2 and W–2G., Form W–2, Backup withholding.
-
- (see also Backup withholding)
- (see also Form W–2)
- Agricultural Act of 1949 payments, Federal Payments
- Changing amount withheld, Changing Your Withholding
- Changing amount withheld:
-
- For 2004, Changing your withholding for 2005.
- Checking amount of, Checking Your Withholding, Checking Your Withholding
- Claim for refund, Who Should File
- Commodity credit loans, Federal Payments
- Credit for, Introduction, Credit for Withholding
and Estimated Tax
- Cumulative wage method, Cumulative wage method.
- Definition, Introduction
- Determining amount to withhold, Determining Amount
of Tax Withheld Using Form W–4, Getting the Right Amount
of Tax Withheld
- Disaster Assistance Act of 1988 payments, Federal Payments
- Dividend income, Reporting tax withheld.
- Employers, rules for, Rules Your Employer
Must Follow
- Exemption from, Exemption From Withholding
- Federal income taxes, not deductible, Taxes and Fees
You Cannot Deduct
- Fiscal years, Fiscal Years
- Form W–4:
-
- Provided by employer, New Form W–4.
- Worksheets, Completing Form W–4
and Worksheets
- Fringe benefits, Taxable Fringe Benefits
- Gambling winnings, Gambling Winnings, Form W–2G
- General rules, Withholding
- Highest rate, employer must withhold at if no W-4, No Form W–4.
- Incorrect form, Form Not Correct
- IRA distributions, Withholding.
- New job, New Job
- Penalties, Introduction, Penalties, Penalties.
- Pensions and annuities, Form W–2., Pensions and Annuities, Withholding and estimated tax., Withholding tax.
- Railroad retirement benefits, Federal Payments, Tax withholding and estimated tax.
- Repaying withheld tax, Repaying withheld tax.
- Rollovers, Withholding tax.
- Salaries and wages, Salaries and Wages
- Separate returns, Separate Returns
- Sick pay, Sick Pay
- Social security benefits, Federal Payments, Tax withholding and estimated tax.
- State and local income taxes, deduction for, Withheld taxes.
- Supplemental wages, Supplemental Wages
- Tips (see Tip income)
- Unemployment compensation, Unemployment Compensation, Tax withholding.
- Work clothes, Work Clothes and Uniforms
- Work-related education, Tax Benefits for Work-Related Education
-
- (see also Educational assistance)
- Work-related education:
-
- Business deduction
-
- Expenses, qualified, Qualified Education Expenses, No Double Benefit Allowed
- Qualified expenses, Qualified Education Expenses, No Double Benefit Allowed
- Reimbursements, Reimbursements
- Tax benefit of, Introduction
- Deduction as business expense, Qualified Education Expenses, Deductible Transportation Expenses, Deducting Business Expenses
- Education required by employer or by law, Education Required by
Employer or by Law
- Education that qualifies for new trade or business, Education That
Qualifies You for a
New Trade or Business
- Education to maintain or improve skills, Education To Maintain
or Improve Skills
- Education to meet minimum requirements, Education To Meet
Minimum Requirements
- Indefinite absence from work, Indefinite absence.
- Meal expenses, 50% limit on meals.
- Qualifying education (Figure 29–A), Certification in a new state.
- Recordkeeping requirements, Recordkeeping
- Teachers, Requirements for Teachers, Teaching and Related Duties
- Temporary absence from work, Temporary absence.
- Travel expenses for, Travel Expenses
- Unclaimed reimbursement, Unclaimed reimbursement.
- Workers' compensation:, Workers' Compensation
-
- Mandatory contributions to state funds, deduction of, Contributions to state benefit funds.
- Return to work, Return to work.
- Worksheets:
-
- Capital loss carryover, Figuring your carryover.
- Casualty and theft losses, Workbook for casualties and thefts.
- Excess withholding credit, How to figure the credit if you did not work for a railroad.
- Head of household status and cost of keeping up home,
- Individual retirement arrangements (IRAs), modified AGI computation (Worksheet 18–1),
- Pensions or annuities, joint returns,
- Qualified Dividends and Capital gains, Using the Qualified Dividends and Capital Gain Tax Worksheet.
- Roth IRA modified adjusted gross income (MAGI), computation (Worksheet 18–2),
- Simplified Method computation of taxable annuity, How to use it.
- Social security or railroad retirement benefits, to figure taxability, Are Any of Your Benefits Taxable?, Which worksheet to use.
- Standard deduction, for dependents (Table 22–3),
- Student loan interest deduction, How Do You Figure the Deduction?
- Support test for dependents (Table 3–1), Table 3–1. Worksheet for Determining Support, Table 3–1. Worksheet for Determining Support
- Withholding (Form W–4), Completing Form W–4
and Worksheets
- World Trade Center attacks (see Terrorist attacks)
- Worthless securities, Worthless securities.
- Wristwatch, Wristwatches
- Write-offs (see Cancellation of debt)
Y
- Yard-care workers (see Domestic help)
- Youth groups:
-
- Troop leader's travel expenses, Travel.
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