Specific Instructions

Fiscal Year Filers

If your tax year is a fiscal year, use the tax rate and earnings base that apply at the time the fiscal year begins. Do not prorate the tax or earnings base for a fiscal year that overlaps the date of a rate or earnings base change.

Name and SSN

To ensure proper credit to your social security account, enter your name and social security number (SSN), and your spouse's if filing a joint return, exactly as shown on your social security card. If you do not have an SSN, get Form SS-5, Application for a Social Security Card, from an SSA district office or online at www.socialsecurity.gov/online/ss-5.html.

Part I—Total Tax and Credits

Line 1

Check the filing status that applies to you.

Single.   Your filing status is single if:
  1. On the last day of the year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree, or

  2. You meet all of the following conditions.

    1. You lived apart from your spouse for the last 6 months of 2013. Temporary absences for special circumstances, such as business, medical care, school, or military service, count as time lived in the home.

    2. You file a separate return from your spouse.

    3. You paid over half the cost of keeping up your home for 2013.

    4. Your home was the main home of your child, adopted child, stepchild, or eligible foster child for more than half of 2013 (if half or less, see information on temporary absences in item 2a above).

    5. If you filed Form 1040, you could claim the child as your dependent or could claim the child except that the child's other parent can claim the child under the rules for children of divorced or separated parents (see Pub. 501, Exemptions, Standard Deduction, and Filing Information).

Married filing jointly.   You can choose this filing status if you were married at the end of 2013 and both you and your spouse agree to file a joint return. You can also choose this filing status if your spouse died in 2013 and you did not remarry in 2013.

Same-sex marriage.

For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state whose laws authorize the marriage of two individuals of the same sex, even if the state in which they now live does not recognize same-sex marriage.

  If you choose to file a joint return, check the box for married filing jointly and be sure to include your spouse's name and SSN on the lines provided below your name and SSN. If your spouse also had self-employment income, complete and attach a separate Part V and, if applicable, Part VI. If necessary, attach a separate Part III or Part IV for your spouse's farm or nonfarm business.

Joint and several tax liability.

If you file a joint return, both you and your spouse generally are responsible for the tax and any interest or penalties due on the return. This means that if one spouse does not pay the tax due, the other may have to.

However, you may qualify for relief from an existing tax liability on your joint return if (a) there is an understatement of the amount of tax because your spouse omitted income or claimed false deductions or credits; (b) you are divorced, separated, or no longer living with your spouse; or (c) given all the facts and circumstances, it would not be fair to hold you liable for the tax. File Form 8857, Request for Innocent Spouse Relief, to request relief. Some requests for relief may need to be filed within two years of the date on which the IRS first attempted to collect the tax from you. For more information, see Pub. 971, Innocent Spouse Relief, and Form 8857 or call the Innocent Spouse office at 1-866-897-4270 (toll free except in American Samoa).

Married filing separately.   You can choose this filing status if you were married at the end of 2013. This method may benefit you if you want to be responsible only for your own tax.

Line 4

If either of the following applies, see Schedule H (Form 1040), Household Employment Taxes, and its instructions to find out if you owe these taxes.

  • You paid any one household employee cash wages of $1,800 or more in 2013.

  • You paid total cash wages of $1,000 or more in any calendar quarter of 2012 or 2013 to all household employees.

Line 5

Enter the total Additional Medicare Tax from line 18 of Form 8959 on line 5. Attach Form 8959. See Form 8959 and the Instructions for Form 8959 for more information.

Line 6

Include the following taxes in the line 6 total.

Employee social security and Medicare tax on tips not reported to employer.   Complete Form 4137, Social Security and Medicare Tax on Unreported Tip Income, if you received cash and charge tips of $20 or more in a calendar month and did not report all of those tips to your employer. On the dotted line next to line 6, enter “Tax on Tips,” and the amount of tax due (from Form 4137, line 13). Be sure to include this tax in the total for line 6. Attach to Form 1040-SS the completed Form 4137.

Uncollected employee social security and Medicare tax on tips.   If you did not have enough wages to cover the social security and Medicare tax due on tips you reported to your employer, the amount of tax due should be identified with codes A and B in box 12 of your Form W-2AS, W-2CM, W-2GU, or W-2VI; or entered in boxes 22 and 23 of your Form 499R-2/W-2PR. Include this tax in the total for line 6. Enter the amount of this tax and “Uncollected Tax” on the dotted line next to line 6.

Uncollected employee social security and Medicare tax on group-term life insurance.   If you had group-term life insurance through a former employer, you may have to pay social security and Medicare tax on part of the cost of the life insurance. The amount of tax due should be identified with codes M and N in box 12 of your Form W-2AS, W-2CM, W-2GU, or W-2VI. If you are a bona fide resident of Puerto Rico, contact your employer for this amount. Include this tax in the total for line 6. Enter the amount of this tax and “Uncollected Tax” on the dotted line next to line 6.

Uncollected employee social security and Medicare tax on wages.   If you are an employee who received wages from an employer who did not withhold social security and Medicare tax from your wages, complete Form 8919, Uncollected Social Security and Medicare Tax on Wages, to figure your share of the unreported tax. Enter the amount of tax due (from Form 8919, line 13) and “Uncollected Tax” on the dotted line next to line 6, and include this tax in the total for line 6. Attach to Form 1040-SS the completed Form 8919.

Repayment of excess advance payments of the health coverage tax credit.   If you received advance payments of the health coverage tax credit for months you were not eligible, the amount on line 6 of Form 8885, Health Coverage Tax Credit, may be negative. On the dotted line next to line 6, enter “HCTC” and the additional tax as a positive amount. Include this tax in the total for line 6. Attach the completed Form 8885 to Form 1040-SS.

Line 7

Enter any estimated tax payments you made for 2013 including any overpayment from your 2012 return that you applied to your 2013 estimated tax. If you or your spouse paid separate estimated tax but are now filing a joint return, add the amounts you each paid and enter the total on line 7. If you and your spouse paid joint estimated tax but are now filing separate returns, you can divide the amount paid in any way you choose as long as you both agree. If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. For an example of how to do this, see chapter 3 of Pub. 505, Tax Withholding and Estimated Tax.

Line 8

If you, or your spouse if filing a joint return, had more than one employer for 2013 and total wages of more than $113,700, too much social security tax may have been withheld. You can take a credit on this line for the amount withheld in excess of $7,049.40. But if any one employer withheld more than $7,049.40, you must ask that employer to refund the excess to you. You cannot claim it on Form 1040-SS. Figure this amount separately for you and your spouse. You must attach Forms W-2AS, W-2CM, W-2GU, W-2VI, or 499R-2/W-2PR. See chapter 3 of Pub. 505 for more information.

Line 10

If, during 2013, you were a bona fide resident of Puerto Rico and an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient, see Form 8885 to figure the amount of your credit, if any.

If you have a negative amount on Form 8885, line 5, do not make an entry on line 10, but see Repayment of excess advance payments of the health coverage tax credit under Line 6, earlier.

See chapter 1 of Pub. 570, for the bona fide residency rules.

Line 11

Add lines 7 through 10. Enter the total on line 11.

Additional Medicare Tax withheld.   If you had Additional Medicare Tax withheld by your employer in 2013, include the amount shown on Form 8959, line 24, in the total for line 11. On the dotted line next to line 11, enter “Form 8959” and show the amount. Attach Form 8959. See Form 8959 and the Instructions for Form 8959 for more information.

Amount paid with request for extension of time to file.   If you got an automatic extension of time to file Form 1040-SS by filing Form 4868 or by making a payment, enter the amount of the payment or any amount you paid with Form 4868. If you paid by credit or debit card, do not include on line 11 the convenience fee you were charged. On the dotted line next to line 11, enter “Form 4868” and show the amount paid.

Lines 13a Through 13d

If you want us to directly deposit the amount shown on line 13a to your checking or savings account at a U.S. bank or other U.S. financial institution (such as a mutual fund, brokerage firm, or credit union):

  • Check the box on line 13a and attach Form 8888, Allocation of Refund (Including Savings Bond Purchases), if you want to split the direct deposit of your refund into more than one account or use all or part of your refund to by paper Series I savings bonds; or

  • Complete lines 13b through 13d if you want your refund deposited to only one account.

If you do not want your refund directly deposited to your account, do not check the box on line 13a. Draw a line through the boxes on lines 13b and 13d. We will send you a check instead.

The IRS is not responsible for a lost refund if you enter the wrong account information. Check with your financial institution to make sure your direct deposit will be accepted and to get the correct routing and account numbers.

Do not request a deposit of your refund to an account that is not in your name (such as your tax preparer's own account).

If you file a joint return and check the box on line 13a and attach Form 8888 or fill in lines 13b through 13d, your spouse may get at least part of the refund.

TreasuryDirect®.   You can request a deposit of your refund (or part of it) to a TreasuryDirect® online account to buy U.S. Treasury marketable securities and savings bonds. For more information, go to www.treasurydirect.gov.

Form 8888.   You can have your refund directly deposited into more than one account or use it to buy up to $5,000 in paper Series I savings bonds. You do not need a TreasuryDirect® account to do this. See the Instructions for Form 8888 for more details.

Line 13b

The routing number for your financial institution must be nine digits. The first two digits must be 01 through 12 or 21 through 32. Otherwise, the direct deposit will be rejected and a check sent instead.

Ask your financial institution for the correct routing number to enter on line 13b if:

  • The routing number on a deposit slip is different from the routing number on your checks,

  • Your deposit is to a savings account that does not allow you to write checks, or

  • Your checks state they are payable through a financial institution different from the one at which you have your checking account.

Line 13c

Check the appropriate box for the type of account. Do not check more than one box. You must check the correct box to ensure your deposit is accepted. For a TreasuryDirect® online account, check the “Savings” box.

Line 13d

The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. Do not include the check number.

If the direct deposit to your account(s) is different from the amount you expected, you will receive an explanation in the mail about 2 weeks after your refund is deposited.

Your financial institution(s) will not allow a joint refund to be deposited to an individual account. The IRS is not responsible if a financial institution rejects a direct deposit.

Line 14

Enter on line 14 the amount, if any, of the overpayment on line 12 you want applied to your 2014 estimated tax. The election to apply part or all of the overpaid amount to your 2014 estimated tax cannot be changed later.

Line 15—Amount You Owe

To save interest and penalties, pay your taxes in full by the due date of your return (see When To File, earlier). You do not have to pay if line 15 is under $1.

You can pay online, by phone, or by check or money order. Do not include any estimated tax payment for 2014 in this payment. Instead, make the estimated tax payment separately.

Bad check or payment.   The penalty for writing a bad check to the IRS is $25 or 2% of the check, whichever is more. However, if the amount of the check is less than $25, the penalty equals the amount of the check. This penalty also applies to other forms of payment if the IRS does not receive the funds.

How To Pay

You can pay your taxes using any of the following methods.

Pay Online

Paying online is convenient and secure and helps make sure we get your payments on time. You can pay using either of the following electronic payment methods.

  • Direct transfer from your bank account.

  • Credit or debit card.

To pay your taxes online or for more information, go to www.irs.gov/e-pay.

Pay by Phone

Paying by phone is another safe and secure method of paying electronically. Use one of the following methods.

  • Direct transfer from your bank account.

  • Credit or debit card.

To pay by direct transfer from your bank account, call EFTPS Customer Service at 1-800-555-4477 (English) or 1-800-244-4829 (Espanol). People who are deaf, hard-of-hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-733-4829.

Pay Using a Credit or Debit Card

To pay using a credit or debit card, you can call one of the following service providers. There is a convenience fee charged by these providers that varies by provider, card type, and payment amount.

Official Payments Corporation 
1-888-UPAY-TAXTM (1-888-872-9829) 
www.officialpayments.com

Link2Gov Corporation 
1-888-PAY-1040TM (1-888-729-1040) 
www.PAY1040.com

WorldPay 
1-888-9-PAY-TAXTM (1-888-972-9829) 
www.payUSAtax.com

For the latest details on how to pay by phone, go to www.irs.gov/e-pay.

Pay by Check or Money Order

Make your check or money order payable to “United States Treasury” for the full amount due. Do not send cash. Do not attach the payment to your return. Write “2013 Form 1040-SS” and your name, address, daytime phone number, and SSN or ITIN on your payment.

To help us process your payment, enter the amount on the right side of the check like this: $ XXX.XX. Do not use dashes or lines (for example, do not enter “$ XXX–” or “$ XXXxx/100 ”).

Part II—Bona Fide Residents of Puerto Rico Claiming Additional Child Tax Credit

If, during 2013, you were a bona fide resident of Puerto Rico and you qualify to claim the additional child tax credit, you must list your qualifying children in Part I, line 2. Also complete Part II and the Additional Child Tax Credit Worksheet—Part II, Line 3, later, to figure the amount of your credit.

You must have three or more qualifying children to claim the additional child tax credit.

Qualifying for the Credit

You may be able to claim the additional child tax credit for 2013 if all of the following apply.

  • You were a bona fide resident of Puerto Rico (see Pub. 570, chapter 1).

  • Social security and Medicare taxes were withheld from your wages or you paid SE tax.

  • You, or your spouse if filing a joint return, cannot be claimed as a dependent on someone else's U.S. income tax return.

  • You had three or more qualifying children (defined below).

Qualifying child.   A qualifying child for purposes of the additional child tax credit is a child who:
  1. Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). A foster child is any child placed with you by an authorized placement agency or by a judgment, decree, or other order of any court of competent jurisdiction.

  2. Was under 17 at the end of 2013.

  3. Was younger than you (or your spouse, if filing jointly) or was permanently and totally disabled (see Age Test in Pub. 501).

  4. Did not provide over half of his or her own support for 2013.

  5. Lived with you for more than half of 2013. If the child did not live with you for the required time, see Residency Test in Pub. 501.

  6. Is not filing a joint return for 2013 or is filing a joint return for 2013 only to claim a refund of estimated or withheld taxes. See examples under Joint Return Test (To Be a Qualifying Child) in Pub. 501.

  7. Was a U.S. citizen, U.S. national, or a U.S. resident alien.

Note.

An adopted child is always treated as your own child. A child lawfully placed with you for legal adoption is treated the same as an adopted child. If you are a U.S. citizen or U.S. national and your adopted child lived with you all year as a member of your household, that child meets the citizen test.

Information about your qualifying child.   In Part I, line 2, enter each qualifying child's name, identifying number (SSN, ITIN or ATIN), and relationship to you. If you have more than six qualifying children, attach a statement to Form 1040-SS with the required information. If the child meets the conditions to be a qualifying child of any other person (other than your spouse if filing jointly) for 2013, see Special Rule for Qualifying Child of More Than One Person in Pub. 501.

Line 1

For purposes of figuring the additional child tax credit, you must report all of your income derived from sources within Puerto Rico that is excluded from U.S. tax because you were a bona fide resident of Puerto Rico. This includes items such as wages, interest, dividends, taxable pensions and annuities, and taxable social security benefits. Also include any profit or (loss) from Part III, line 36, and Part IV, line 27. For more information on these and other types of income to include on line 1, see the Form 1040 instructions. See Pub. 570, chapter 2, for the rules to use in determining your Puerto Rican source income.

Line 2

Enter the amount of withheld social security, Medicare, and Additional Medicare taxes from Puerto Rico Form(s) 499R-2/W-2PR, boxes 18 and 20. If married filing jointly, include your spouse’s amounts with yours.

Line 3

Use the Additional Child Tax Credit Worksheet to figure your additional child tax credit. If your employer withheld or you paid Additional Medicare Tax, see Form 8959, Additional Medicare Tax, and the Instructions for Form 8959.

Additional Child Tax Credit Worksheet—Part II, Line 3

1. Do you have three or more qualifying children?    
  □  No. Stop. You cannot claim the credit. 
□  Yes. Go to line 2.
   
2. Number of qualifying children: _______ × $1,000. Enter the result 2.  
3. Enter the amount from Part II, line 1 3.      
4. Enter the amount shown below for your filing status 4.      
  • Married filing jointly — $110,000 
• Single — $75,000 
• Married filing separately — $55,000
     
5. Is the amount on line 3 more than the amount on line 4?      
  □  No. Leave line 5 blank. Enter -0- on line 6, and go to line 7. 
□  Yes. Subtract line 4 from line 3. If the result is not a multiple of  
      $1,000, increase it to the next multiple of $1,000 (for example,  
     increase $425 to $1,000, increase $1,025 to $2,000, etc.)
5.      
6. Multiply the amount on line 5 by 5% (.05). Enter the result 6.  
7. Is the amount on line 2 more than the amount on line 6?    
   
□  No. Stop. You cannot claim the credit. 
□  Yes. Subtract line 6 from line 2
7.  
8. Enter the total, if any, of:  
• One-half of Part V, line 12, self-employment tax plus 
• One-half of the Additional Medicare Tax you paid on  
  self-employment income (line 13, Form 8959)
8.      
9. Enter the total of any: 
• Amount from Part II, line 2, plus 
• Employee social security and Medicare tax on tips not reported to employer  
  from Form 4137 and shown on the dotted line next to Part I, line 6, plus 
• Uncollected employee social security and Medicare tax on wages from  
  Form 8919 shown on the dotted line next to Part I, line 6 plus     
• Uncollected employee social security tax and Medicare tax on tips and  
  group-term life insurance (see instructions for line 6 in Part I) shown on  
  the dotted line next to Part I, line 6, plus 
• Additional Medicare Tax you paid on wages (line 7, Form 8959)
9.      
10. Add lines 8 and 9 10.      
11. Enter the amount, if any, of Additional Medicare Tax withheld (line 22, Form 8959) 11.      
12. Subtract line 11 from line 10 12.      
13. Enter the amount, if any, from Part I, line 8 13.      
14. Is the amount on line 12 more than the amount on line 13?  
□   No. Stop. You cannot claim the credit. 
□  Yes. Subtract line 13 from line 12
14.  
15. Additional child tax credit. Enter the smaller of line 7 or line 14 here and on  
Form 1040-SS, Part II, line 3
15.  

Part III—Profit or Loss From Farming

For assistance with Part III (Profit or Loss From Farming), see the 2013 Instructions for Schedule F (Form 1040), Profit or Loss From Farming, and Pub. 225, Farmer's Tax Guide.

Accounting Methods

The accounting method you used to record your farm income determines whether you complete, in addition to Section B, Section A or C.

Cash method.   Include in income both the cash actually or constructively received and the fair market value of goods or other property you received. Generally, you deduct your expenses when you pay them.

Accrual method.   Include your income in the year you earned it. It does not matter when you get it. Deduct your expenses when you incur them.

Section A or C—Sales of Livestock

Form 4797, Sales of Business Property, is used to report sales of livestock held for draft, breeding, sport, or dairy purposes, and is attached to Form 1040. This income is taxable, but is not subject to SE tax. You should check to see if this additional amount of gross income will require you to file Form 1040 instead of Form 1040-SS.

Line 12

If you claim any car or truck expenses (actual or the standard mileage rate), you must provide the information requested in Part V of Form 4562, Depreciation and Amortization. Be sure to attach Form 4562 to your return.

Part IV—Profit or Loss From Business (Sole Proprietorship)

For assistance with Part IV (Profit or Loss From Business (Sole Proprietorship)), see the 2013 Instructions for Schedule C (Form 1040), Profit or Loss From Business, and Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ).

Line 7

If you claim any car or truck expenses (actual or the standard mileage rate), you must provide the information requested in Part V of Form 4562, Depreciation and Amortization. Be sure to attach Form 4562 to your return.

Part V—Self-Employment Tax

If you are filing a joint return and both you and your spouse have income subject to SE tax, you must each complete a separate Part V. This includes those who made a joint election to be taxed as a QJV.

What Is Included in Net Earnings From Self-Employment

Generally, net earnings include your net profit from a farm or nonfarm business. If you were a partner in a partnership, see the following instructions.

Partnership Income or Loss

When figuring your total net earnings from self-employment, include your share of partnership income or loss attributable to a trade or business and any guaranteed payments for services or the use of capital. However, if you were a limited partner, include only guaranteed payments for services you actually rendered to or on behalf of the partnership.

If you were a general partner, reduce lines 1a and 2 of Part V for any section 179 expense deduction, oil or gas depletion, and unreimbursed partnership expenses. Attach an explanation of these deductions.

If your partnership was engaged solely in the operation of a group investment program, earnings from the operation are not self-employment earnings for either the general or limited partners.

If a partner died and the partnership continued, include in self-employment income the deceased partner's distributive share of the partnership's ordinary income or loss through the end of the month in which he or she died. See section 1402(f).

If you were married and both you and your spouse were partners in a partnership, each of you must report your net earnings from self-employment from the partnership. Each of you must complete a separate Part V. If only one of you was a partner in a partnership, the spouse who was the partner must pay SE tax on all of his or her share of partnership income.

Community income.    Your own distributive share of partnership income is included in figuring your net earnings from self-employment. Unlike the division of that income between spouses for figuring income tax, no part of your share can be included in figuring your spouse's net earnings from self-employment.

Share Farming

You are considered self-employed if you produced crops or livestock on someone else's land for a share of the crops or livestock produced (or a share of the proceeds from the sale of them). This applies even if you paid another person (an agent) to do the actual work or management for you. For details, see Pub. 225.

Other Income and LossesIncluded in Net Earnings From Self-Employment

  1. Rental income from a farm if, as landlord, you materially participated in the production or management of the production of farm products on the land. This income is farm earnings. To determine if you materially participated in farm management or production, do not consider the activities of any agent who acted for you. The material participation tests for landlords are explained in chapter 12 of Pub. 225.

  2. Cash or a payment-in-kind from the Department of Agriculture for participating in a land diversion program.

  3. Payments for the use of rooms or other space when you also provided substantial services for the convenience of your tenants. Examples are hotel rooms, boarding houses, tourist camps or homes, parking lots, warehouses, and storage garages. See chapter 5 of Pub. 334 for more information.

  4. Income from the retail sale of newspapers and magazines if you were age 18 or older and kept the profits.

  5. Income you receive as a direct seller. Newspaper carriers or distributors of any age are direct sellers if certain conditions apply. See chapter 5 of Pub. 334 for details.

  6. Amounts received by current or former self-employed insurance agents and salespersons that are:

    1. Paid after retirement but figured as a percentage of commissions received from the paying company before retirement,

    2. Renewal commissions, or

    3. Deferred commissions paid after retirement for sales made before retirement.

    However, certain termination payments received by former insurance salespersons are not included in net earnings from self-employment (as explained in item 10 under Income and Losses Not Included in Net Earnings From Self-Employment).

  7. Income of certain crew members of fishing vessels with crews of normally fewer than 10 people. See chapter 10 of Pub. 334 for details.

  8. Fees as a state or local government employee if you were paid only on a fee basis and the job was not covered under a federal-state social security coverage agreement.

  9. Interest received in the course of any trade or business, such as interest on notes or accounts receivable.

  10. Fees and other payments received by you for services as a director of a corporation.

  11. Recapture amounts under sections 179 and 280F included in gross income because the business use of the property dropped to 50% or less. Do not include amounts you recaptured on the disposition of property. See Form 4797, Sales of Business Property.

  12. Fees you received as a professional fiduciary. This may also apply to fees paid to you as a nonprofessional fiduciary if the fees relate to active participation in the operation of the estate's business or the management of an estate that required extensive management activities over a long period of time.

  13. Gain or loss from section 1256 contracts or related property by an options or commodities dealer in the normal course of dealing in or trading section 1256 contracts.

Income and Losses Not Included in Net Earnings From Self-Employment

  1. Salaries, fees, etc., subject to social security or Medicare tax that you received for performing services as an employee, including services performed as a public official (except as a fee basis government employee as explained in item 8 under Other Income and Losses Included in Net Earnings From Self-Employment, earlier).

  2. Fees received for services performed as a notary public. However, if you have other earnings of $400 or more subject to SE tax, on the dotted line next to Part V, line 3, enter “Exempt—Notary” and the amount of your net profit as a notary public included in line 2. Subtract that amount from the total of lines 1a, 1b, and 2 and enter the result on line 3.

  3. Income you received as a retired partner under a written partnership plan that provides lifelong periodic retirement payments if you had no other interest in the partnership and did not perform services for it during the year.

  4. Income from real estate rentals if you did not receive the income in the course of a trade or business as a real estate dealer. Report this income in Part IV if you and your spouse made an election to be taxed as a QJV.

  5. Income from farm rentals (including rentals paid in crop shares) if, as landlord, you did not materially participate in the production, or management of the production, of farm products on the land. See chapter 12 of Pub. 225 for details.

  6. Payments you receive from the Conservation Reserve Program (CRP) if you are receiving social security benefits for retirement or disability. Deduct these payments on line 1b of Part V.

  7. Dividends on shares of stock and interest on bonds, notes, etc., if you did not receive the income in the course of your trade or business as a dealer in stocks or securities.

  8. Gain or loss from:

    1. The sale or exchange of a capital asset;

    2. Certain transactions in timber, coal, or domestic iron ore; or

    3. The sale, exchange, involuntary conversion, or other disposition of property unless the property is stock in trade or other property that would be includible in inventory, or held mainly for sale to customers in the ordinary course of the business.

  9. Net operating losses from other years.

  10. Termination payments you received as a former insurance salesperson if all of the following conditions are met.

    1. The payment was received from an insurance company because of services you performed as an insurance salesperson for the company.

    2. The payment was received after termination of your agreement to perform services for the company.

    3. You did not perform any services for the company after termination and before the end of the year in which you received the payment.

    4. You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date of termination.

    5. The amount of the payment depended primarily on policies sold by or credited to your account during the last year of the agreement, or the extent to which those policies remain in force for some period after termination, or both.

    6. The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payment depended on length of service).

Line 1b

If you were receiving social security retirement or social security disability benefits at the time you received your CRP payment(s), include the amount of your taxable CRP payment(s) in the total on line 1b. The amount of these payments is included in Part III, line 6, and in information received from farm partnerships showing your distributive share.

Lines 4a Through 4c

If both lines 4a and 4c are less than $400 and you have deducted CRP payments on line 1b, combine lines 1a and 2.

  • If the total of lines 1a and 2 is $434 or more, complete Part V through line 4c. Enter “-0-” in Part I, line 3, unless you also have church employee income. If you also have church employee income, see Church Employees, earlier. Also complete lines 5a and 5b and the rest of Part V, as appropriate.

  • If the total of lines 1a and 2 is less than $434, do not complete Part V unless you choose to use an optional method to figure your SE tax or you have church employee income. If you have church employee income see Church Employees, earlier. Also complete lines 5a and 5b and the rest of Part V, as appropriate.

Line 8b

If you received tips of $20 or more in any month and did not report the full amount to your employer, you must file Form 4137 with Form 1040-SS (see instructions for Part I, Line 5, earlier). Disregard the references to Form 1040 shown on Form 4137. Enter on line 8b the amount from Form 4137, line 10.

Line 8c

If you are an employee who received wages from an employer who did not withhold social security and Medicare tax, you must file Form 8919 with Form 1040-SS (see instructions for Part I, Line 5, earlier). Enter on line 8c the amount from Form 8919, line 10.

Part VI—Optional Methods To Figure Net Earnings

The optional methods may give you credit toward your social security coverage even though you have a loss or a small amount of income from self-employment. But the optional methods may require you to pay SE tax when you would otherwise not be required to pay.

If you are filing a joint return and both you and your spouse choose to use an optional method to figure net earnings from self-employment, you must each complete and attach a separate Part VI.

You can change the method after you file your return. That is, you can change from the regular to the optional method or from the optional to the regular method. To do this, file a new Form 1040-SS. See the instructions under Amended Returns, later.

Using the optional methods may qualify bona fide residents of Puerto Rico to claim the additional child tax credit or give them a larger credit.

Farm Optional Method

You may use this method to figure your net earnings from farm self-employment if your gross farm income was $6,960 or less or your net farm profits were less than $5,024. Net farm profits are the total of the amounts from Part III, line 36, and your distributive share from farm partnerships, minus the amount you would have entered in Part V, line 1b, had you not used the optional method.

There is no limit on how many years you can use this method.

Under this method, report in Part VI, line 2, the smaller of: two-thirds of your gross farm income (not less than zero), or $4,640. This method can increase or decrease your net self-employment farm earnings. You can use this method even if your farming business had a loss.

For a farm partnership, figure your share of gross income based on the partnership agreement. With guaranteed payments, your share of the partnership's gross income is your guaranteed payments plus your share of the gross income after it is reduced by all guaranteed payments made by the partnership. If you were a limited partner, include only guaranteed payments for services you actually rendered to or on behalf of the partnership.

Nonfarm Optional Method

You may be able to use this method to figure your net earnings from nonfarm self-employment if your net nonfarm profits were less than $5,024, and also less than 72.189% of your gross nonfarm income. Net nonfarm profits are the total of the amounts from Part IV, line 27, and your distributive share from other than farm partnerships.

To use this method, you also must be regularly self-employed. You meet this requirement if your actual net earnings from self-employment were $400 or more in 2 of the 3 years preceding the year you use the nonfarm optional method. The net earnings of $400 or more could be from either farm or nonfarm earnings or both. The net earnings include your distributive share of partnership income or loss subject to SE tax.

Use of the nonfarm optional method from nonfarm self-employment is limited to 5 years. The 5 years do not have to be consecutive.

Under this method, report in Part VI, line 4, the smaller of: two-thirds of your gross nonfarm income (not less than zero), or the amount in Part VI, line 3. But you cannot report less than your actual net earnings from nonfarm self-employment.

Figure your share of gross income from a nonfarm partnership in the same manner as a farm partnership. For details, see Farm Optional Method, earlier.

Using Both Optional Methods

If you can use both optional methods, you can report less than your total actual net earnings from farm and nonfarm self-employment, but you cannot report less than your actual net earnings from nonfarm self-employment alone.

If you use both methods to figure net earnings from self-employment, you cannot report more than $4,640 of net earnings from self-employment.

Completing Your Return

Third Party Designee

If you want to allow your preparer, a friend, family member, or any other person you choose to discuss your 2013 tax return with the IRS, check the “Yes” box in the “Third Party Designee” area on page 1 of your return. Also, enter the designee's name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN).

If you check the “Yes” box, you (and your spouse if filing a joint return) are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. You are also authorizing the designee to:

  • Give the IRS any information that is missing from your return,

  • Call the IRS for information about the processing of your return or the status of your refund or payment(s),

  • Receive copies of notices or transcripts related to your return, upon request, and

  • Respond to certain IRS notices about math errors, offsets, and return preparation.

You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the IRS. If you want to expand the designee's authorization, see Pub. 947, Practice Before the IRS and Power of Attorney.

The authorization will automatically end no later than the due date (without regard to extensions) for filing your 2013 tax return. This is April 15, 2014, for most people. If you wish to revoke the authorization before it ends, see Pub. 947.

Signature and Date

Sign and date your return. It is not valid unless you sign it. If you are filing a joint return, your spouse must also sign. If your spouse cannot sign the return, see Pub. 501.

Generally, anyone you pay to prepare your return must sign it and fill in the Paid Preparer Use Only area in the space provided. The preparer must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign your return.

If you have someone prepare your return, you are still responsible for the correctness of the return.

Daytime Phone Number

Providing your daytime phone number can help speed the processing of your return. If we have questions about items on your return and you can answer our questions over the phone, we may be able to continue processing your return without mailing you a letter. If you are filing a joint return, you can enter either your or your spouse's daytime phone number.

Identity Protection PIN

For 2013, if you received an IRS notice providing you with an Identity Protection Personal Identification Number (IP PIN), enter it in the IP PIN spaces provided below your daytime phone number. You must enter your IP PIN exactly as it is shown on the Notice CP01A you received. If you did not receive a notice containing an IP PIN, leave these spaces blank.

New IP PINs are issued every year. An IP PIN should be used only for the tax year it was issued. IP PINs for 2013 tax returns generally were sent in December 2013.

If you are filing a joint return and both taxpayers receive an IP PIN, only the taxpayer whose social security number (SSN) appears first on the tax return should enter his or her IP PIN.

If you received an IP PIN but misplaced it, call 1-800-908-4490, extension 245. If you need more information or answers to frequently asked questions on how to use the IP PIN, go to www.irs.gov/Individuals/Understanding-Your-CP01A-Notice.

Additional Information

Amended Returns

File a new Form 1040-SS to change a Form 1040-SS you already filed. If you filed Form 1040-SS but should have filed Form 1040, file a corrected return on Form 1040. In either case, at the top of page 1 of the corrected return, enter “CORRECTED” in dark bold letters followed by the date. Generally, an amended Form 1040-SS (or Form 1040, if applicable) must be filed within 3 years after the date on which the original return was filed or within 2 years after the tax was paid, whichever is later.

Interest and Penalties

Do not figure the amount of any interest or penalties you may owe. We will send you a bill for any amount due.

Interest

The IRS will charge you interest on taxes not paid by their due date, even if an extension of time to file is granted. Also, you will be charged interest on penalties imposed for failure to file, negligence, fraud, substantial valuation misstatements, substantial understatements of tax, and reportable transaction understatements. Interest is charged on the penalty from the due date of the return (including extensions).

Penalties

Late filing.   If you do not file your return by the due date (including extensions), the penalty is usually 5% of the amount due for each month or part of a month your return is late, unless you have a reasonable explanation. If you do, attach a statement to your return. The penalty can be as much as 25% of the tax due. The penalty is 15% per month, up to a maximum of 75%, if the failure to file is fraudulent. If your return is more than 60 days late, the minimum penalty will be $135 or the amount of any tax you owe, whichever is smaller.

Late payment of tax.   If you pay your taxes late, the penalty is usually ½ of 1% of the unpaid amount for each month or part of a month the tax is not paid. The penalty can be as much as 25% of the unpaid amount. It applies to any unpaid tax on the return. This penalty is in addition to interest charges on late payments.

Frivolous return.   In addition to any other penalties, the law imposes a penalty of $5,000 for filing a frivolous return. A frivolous return is one that does not contain information needed to figure the correct tax or shows a substantially incorrect tax because you take a frivolous position or desire to delay or interfere with the tax laws. This includes altering or striking out the preprinted language above the space where you sign. For a list of positions identified as frivolous, see Notice 2010-33, 2010-17 I.R.B. 609, available at www.irs.gov/irb/2010-17_IRB/ar13.html.

Other.   Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, filing an erroneous refund claim, and fraud. Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. See Pub. 17, Your Federal Income Tax, for details on some of these penalties.

How To Get Forms and Publications

By Internet

You can access IRS.gov 24 hours a day, 7 days a week to download forms, instructions, and publications.

By Phone

You can order forms and publications by calling 1-800-TAX-FORM (1-800-829-3676) (not toll free in American Samoa). People who are deaf, hard-of-hearing, or have a speech disability and who have access to TTY/TTD equipment can call 1-800-829-4059 (not toll free in American Samoa).

By Mail

You can order forms and publications by sending your order to:

Internal Revenue Service 
1201 N. Mitsubishi Motorway 
Bloomington, IL  
61705-6613

In Person

You can get forms and publications at the following walk-in sites.

Note.

The following addresses are subject to change.

American Samoa   

American Samoa Government  
Tax Office 
Executive Office Building 
First Floor 
Pago Pago, AS 96799

  
You can order forms and publications by calling (684) 633-4181.

  
You can order forms and publications through the fax (684) 633-1513.

  
You can get forms and publications at www.americansamoa.gov.

CNMI   

Division of Revenue and Taxation 
Dandan Commercial Center  
Saipan, MP 96950

  
You can order forms and publications by calling (670) 664-1000.

  
You can order forms and publications through the fax (670) 664-1015.

  
You can get forms and publications at www.cnmidof.net.

Guam   

Department of Revenue and Taxation  
Taxpayer Services Division 
P.O. Box 23607 GMF, GU 969l21

  
You can order forms and publications by calling (671) 635-1840 or (671) 635-1841.

  
You can order forms and publications through the fax (671) 633-2643.

  
You can get forms and publications at www.guamtax.com.

Puerto Rico   

U.S. Internal Revenue Service 
48 Carr 165 km.1.2 
City View Plaza II Bldg. 
Guaynabo, PR 00968-8000

  
You can order forms and publications, and get tax assistance, by calling 1-800-829-1040. People who are deaf, hard-of-hearing, or have a speech disability and who have access to TTY/TTD equipment can call 1-800-829-4059.

  
You can download forms and publications, and find tax information, at www.irs.gov.

USVI   

U.S. Internal Revenue Service 
Almeric L. Christian Federal Building 
3013 Estate Golden Rock, Room 3013 
Christiansted, VI 00820

  
You can order forms and publications, and get tax assistance, by calling 1-800-829-1040. People who are deaf, hard-of-hearing, or have a speech disability and who have access to TTY/TTD equipment can call 1-800-829-4059.

  
You can download forms and publications, and find tax information, at www.irs.gov.

  

U.S. Internal Revenue Service 
Ron De Lugo Federal Building and  
Courthouse 
5500 Veterans Drive, Room 216 
Charlotte Amalie, VI 00802

  

USVI Bureau of Internal Revenue 
6115 Estate Smith Bay–Suite 225 
St. Thomas, VI 00802

  
You can order forms and publications by calling (340) 715-1040.

  
You can order forms and publications through the fax (340) 774-2672.

  
You can get forms and publications at www.viirb.com.

  

USVI Bureau of Internal Revenue 
4008 Estate Diamond–Plot 7B 
Christiansted, VI 00820

  
You can order forms and publications by calling (340) 773-1040.

  
You can order forms and publications through the fax (340) 773-1006.

  
You can get forms and publications at www.viirb.com.


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