Dependent Codes:

1     Dependent lived with taxpayer

2     Dependent did not live with taxpayer due to divorce or separate maintenance agreement

3     Dependent is taxpayer's parent

4     Other dependent

1) Dependent lived with taxpayer - A person lives with you for the entire year as a member of your household. You are considered to occupy the same household despite temporary absences due to special circumstances such as illness, education, business, vacation and military service.

2) Dependent did not live with taxpayer due to divorce or separate maintenance agreement - If you are the noncustodial parent (the parent who had custody for the shorter period of time) you can claim the child as a dependent if either (a) or (b) applies:

(a) The custodial parent agrees not to claim the child's exemption by signing Form 8332.  You, as the noncustodial parent, must attach this signed Form 8332 (or a substantially similar statement) to your return. If divorce decree went into effect after 1984 and before 2009, the noncustodial parent may be able to include certain pages from the decree or agreement instead of Form 8332.

(b) Your divorce decree went into effect prior to 1985; it states you can claim the child as a dependent; and you have given at least $600 in child support.

3) Dependent is taxpayer's parent - You can claim your parents or step parents who do not live with you as dependents if the other dependency tests are met.

4) Other dependents - A person related to you in any of the following ways does not need to live with you to be claimed as dependent:

Your brother, sister, stepbrother, stepsister, half-brother, or half-sister

Your grandparent or other direct ancestor, but not foster parent

An aunt or uncle, a niece or nephew

Your father-in-law, mother-in-law, son-in-law, daughter-in law, brother-in-law, or sister-in-law

EIC Code

E - Indicates taxpayer qualifies for Earned Income Credit and there is a

    qualifying child under age 19.

K – Dependent is qualifying child and was kidnapped.

S - Dependent is under age 24 at the end of the tax year and is a full time

    student.

D - Dependent is permanently and totally disabled.

N - Enter an 'N' if dependent is ineligible for EIC and you wish to override

    CrossLink's preliminary calculation that a dependent was eligible.

Eligible Child Tax Credit Flag

X - Indicates a child is eligible for tax credit.

. - Indicates a child is not eligible for tax credit. To override CrossLink's preliminary calculation and remove an 'X' from this field, enter the (spacebar) then (enter) key.

Form 2441 Dependent Care Flag

X - Enter an 'X' to transfer dependent's information to Form 2441 when the form is attached to a return.

Blank - Prevent dependent's information from being automatically transferred to Form 2441.

D – Enter a ‘D’ to indicate the dependent is over 13 and disabled and is eligible for the dependent care credit.

Non-Qualifying Children

Children who lived with you but whom someone else is claiming on their tax returns. As of the 2005 tax year you cannot use non-qualifying children to claim the EIC. EIC qualified children MUST be related to the taxpayer and have lived with the taxpayer for more than half the year. Children of divorced or separated parents can side step the half year rule provided the custodial parent gives up the right to claim the children as dependents on his or her tax return. Enter a ‘D’ in the dependent care expenses column to indicate the child is over 13 and disabled and is eligible for the dependent care credit. Enter a ‘C’ to indicate the child is eligible for the dependent care credit due to the taxpayer being the custodial parent.

Form W-2

Use Form W-2 to report wages.

Box C:

Foreign Addresses:

Check the “Foreign” box in the Employer’s address section to enter a foreign address for the employer. The domestic address fields must be cleared out before the foreign address is entered.

Ministers and Members of Religious Orders:

Check this box if the wages were received as a minister or member of a religious order from a church or qualified church controlled organization that has a certificate in effect electing an exemption from employer social security and Medicare taxes and the taxpayer has NOT filed Form 4361 and received IRS approval to be exempt from paying self-employment tax.

If this box is checked, the W-2 should show no social security taxes (box 4) or Medicare taxes (box 6) withheld.  The wages (box 1) will be carried to the "Minister Statement of Clergy Income" and then to Schedule SE, line 2.  See the "Minister Statement of Clergy Income" form, if additional allocations to Schedule C or if rental, parsonage, or other allowances were received by the taxpayer.

If Form 4361 was filed and IRS approval was received, paying self-employment tax on salaries and other income for services performed as a minister or a member of a religious order is exempt. In this case, the box on Form W-2, line 3 should be checked for "... wages not subject to social security."

Church Employee Income:

Check this box if the wages were received, as an employee (other than as a minister or member of a religious order), from a church or qualified church controlled organization that has a certificate in effect electing an exemption from employer social security and Medicare taxes.

If $108.28 or more was received as church employee income, self-employment tax must be paid.

If this box is checked, the W-2 should show no social security taxes (box 4) or Medicare taxes (box 6) withheld. The wages (box 1) will be carried to Schedule SE, line 5a.

Wages Not Subject to Social Security:

Check this box if the W-2 wages are not subject to social security and no social security was withheld on the W-2. For example, if the taxpayer has filed Form 4361 and received IRS approval to be exempt from self-employment and Medicare taxes.

If this box is checked, the W-2 should show no social security taxes (box 4) withheld.  The wages (box 1) will be carried to Form 1040, line 7 only. The wages will NOT be carried to Schedule SE for calculation of self-employment tax.

Box 12:

Employer Use Codes:

A = Uncollected Social Security or RRTA tax on tips

B = Uncollected Medicare tax on tips

C = Taxable Cost of group term life insurance over $50,000

D = Elective deferrals to a Section 401(k) cash or deferred arrangement

E = Elective deferrals to a Section 403(b) salary reduction agreement

F = Elective deferrals to a Section 408(k)(6) salary reduction SEP

G = Elective and non-elective deferrals to a Section 457(b) deferred

    compensation plan

H = Elective deferrals to a Section 501(c)(18)(D) tax-exempt organization plan

J = Nontaxable sick pay

K = 20% excise tax on excess golden parachute payments

L = Nontaxable part of employee business expense reimbursements

M = Uncollected Social Security or RRTA tax on taxable cost of group term life

    insurance over $50,000 (former employees only)

N = Uncollected Medicare tax on taxable cost of group term life insurance over

    $50,000 (former employees only)

P = Excludable reimbursed moving expense

Q = Nontaxable Combat pay

R = Employer contributions to an Archer MSA

S = Employee salary reduction contributions to Section 408(p) SIMPLE

T = Adoption benefits

V = Income from the exercise of nonstatutory stock options. This code has no

    tax effect - amount should already be reported in boxes 1, 3 & 5 by the employer

W = Employer contribution to an employee's Health Saving Account (HSA)

Y = Deferrals under a section 409A nonqualified deferred compensation plan.

Z = Income under section 409A on a nonqualified deferred compensation plan.

AA= Designated Roth contributions under a 401(k) plan

BB= Designated Roth contributions under a 403(B) plan

DD= Cost of Employer-Sponsored health coverage (nontaxable)

EE= Designated Roth contribution under a governmental 457(b)plan

Box 13a - Statutory Employee:

If the statutory employee box is checked, an associated Schedule C or C-EZ needs to be created to carry the income to the return.

Box 13b - Retirement Plan:

If the pension plan box is checked, special limits may apply to the amount of IRA contributions the taxpayer may deduct.

Box 14 - Other:

This box contains items that are not pre-defined by the IRS, some of which need to be included on the 1040. Use the following codes to include the amounts as Non-Taxable Earned Income.

NEI     - Other Non-taxable Earned Income.

IRC125  - Section 125 cafeteria plan contributions.

IRC125S - NY City flexible benefit plan contributions subject to state tax.

IRC125N - Section 125 cafeteria plan contributions not subject to New York State tax

414HSUB - NY State 414(h) plans subject to state tax.

414HNOT - NY State 414(h) plans not subject to state tax.

UNION   - Union dues withheld by employer.

We provided the literal NEI as a catch-all for the many literals that may be used by various employers.

Railroad Employers:

For railroad employees subject to FICA, W-2 Boxes 1 & 2 are completed as well as Boxes 3, 4, 5, 6 and 7.

For railroad employees subject to RRTA, W-2 Boxes 1 & 2 are completed, Boxes 3, 4, 5, 6 and 7 are left blank, and then in Box 14, RRTA compensation, Tier I tax, Tier II tax, Medicare Tax and Additional Medicare Tax are entered.

For W-2's subject to RRTA, enter the wages in Box 1 and withholding in Box 2. Then X the checkbox in Box 3 for "Enter X if wages are not subject to social security". This will cause Boxes 3, 4, 5 and 6 to not calculate, but to be left blank. Go to Box 14 and enter amounts for RRTA compensation, Tier I tax, Tier II tax, Medicare Tax and Additional Medicare Tax. Form 8959 uses amounts entered in these Box 14 fields to calculate the Additional Medicare Tax, if any.

Box 17 - State Use:

North Carolina:

Enter code “M” in the State Use field of federal Form W-2 to indicate wages should be excluded from NC income. The amount will carry to Form D-400, Line 49, Other Deductions.

Pennsylvania:

Enter code “M” in the State Use field of federal Form W-2 to indicate wages should be excluded from PA income.

Form W-2G

Use Form W-2G to report certain gambling winnings.

Form W-2G should be received if the taxpayer received:

(a) $600 or more in gambling winnings and the payout is at least 300 times the

    amount of the wager (except winnings from bingo, keno, and slot machines)

(b) $1,200 or more in gambling winnings from bingo or slot machines

(c) $1,500 or more in proceeds (winnings minus wager) from keno

(d) $5,000 or more in winnings (reduced by the wager or buy-in) from a poker tournament

(e) Any gambling winnings subject to Federal income tax withholding

State Abbreviation:

Pennsylvania

Gambling winnings will not carry to Schedule T when "1" is entered in State Use field on Form W-2G (US03 8200). This is true regardless of the state code present on W-2G (US03 0200).

Form 1099-C

Amount of Debt Canceled:

Enter the cancellation of debt income in box 2. If this income is attributable to nonbusiness debt, select “1040 Other Income” from the “To Form” F3 list. This amount will flow to Form 1040, page 1, line 21 “Other Income”. If this income is attributable to business debt, select the correct business activity from the “To Form” F3 list. The amount will be taken as income to that activity in the Gross Income/Rents section.

This is the computation for Cancellation of Debt from Publication 544:

    1. Enter the total amount of the debt immediately prior to the foreclosure.

    2. Enter the fair market value of the property from Form 1099-C, box 7.

    3. Subtract line 2 from line 1. If less than zero, enter zero.

    Note: Generally, this line 3 number will be the same as that on Form 1099-C, box 2.

There are 4 exceptions that make cancellation of debt nontaxable. If any of these apply, do not enter the amount on this form, but complete Form 982 instead for the exclusion of income.

1. Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
2. Insolvency: If you are insolvent when the debt is canceled, some or all of the canceled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets. Insolvency can be fairly complex to determine so see IRS Publication 908.
3. Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your canceled debt is generally not considered taxable income.
4. Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income. However, it may result in other tax consequences.

What to do if you receive a 1099-A and not a 1099-C (related to principle residences).

A Form 1099-A is issued to a borrower when the property securing the loan is repossessed or foreclosed by the lender (or abandoned by the borrower). The property then is considered to be sold by the borrower to the lender.

Note: The vast majority of 1099-A forms received by taxpayers in CA and in many other states are going to be informational only (taxpayer doesn’t report the transaction on the tax return).  For example, by law your first mortgage in CA is a nonrecourse loan; as a result, most taxpayers in CA would get a 1099-A and get no 1099-C (unless you had refinanced the loan to a recourse loan).

The information off a 1099-A could be used to determine the sales price in the scenario a user would need to do a Home Sale worksheet.  However, keep in mind that most homes that are foreclosures or short sales are probably upside down still so there is no gain.  The only time you would have a gain is if you refinanced and used some of the loan money for purposes other than the home (which would reduce taxpayer’s basis in home).  The Home Sale worksheet is used when you have a gain or need to report the sale because taxpayer received a 1099S.

If a taxpayer receives Form 1099-A from a foreclosure or abandonment on her home, she may have reportable income as a result of any gain on the deemed sale back to the lender. Gain on this transaction is generally measured by the difference between the value the taxpayer received in giving up the property and the taxpayer's adjusted basis in the property. A loss on the disposition of personal use property (including the taxpayer's residence) is not deductible and not reported on the Sch. D.

If the loan was a nonrecourse loan (Form 1099-A box 5 marked "no"), then the value received (considered the sales price) by the taxpayer is the "Outstanding balance amount" reported in box 2 (plus any other consideration the taxpayer may have received in giving up the property to the lender). If the loan is recourse (Form 1099-A box 5 marked "yes"), then the value received by the taxpayer is the lower of the "Outstanding balance amount" reported in Box 2 or the fair market value (FMV) amount reported in Box 4 (plus any other consideration the taxpayer received in giving up the property).

Note: A nonrecourse loan is one in which the borrower is not personally liable (the borrower's liability is limited to the value of the asset secured by the loan). Thus, a homeowner with a nonrecourse mortgage may lose his home in foreclosure, but the lender cannot go after any other assets owned by the borrower. This differs from a recourse loan in which the borrower is personally liable. Thus, if the borrower's outstanding mortgage exceeds the value of the foreclosed home, the lender may attach other assets belonging to the borrower to satisfy the mortgage balance.

The gain from the sale that results from a foreclosure or abandonment is reported on the Home Sale worksheet, Form 8949, and Form 1040 Schedule D.

Note: A lender issues Form 1099-C to report the cancellation of debt, which is a separate event from the sale reported on Form 1099-A.

Interest if Included in Box 2:

If the cancellation of debt income is attributable to nonbusiness debt, and is carried to Form 1040 as “Other Income”, the interest amount is not deductible. But if the cancellation of debt income is attributable to business debt and is carried to the Schedule C, E or F, the amount entered in this field will be a deduction from the income amount entered in Box 2, with the net taken to the appropriate schedule.

Bankruptcy:

If the Identifiable Event Code is “A” for Bankruptcy, review instructions for Form 982 to determine if you should file that form instead of including the canceled debt as income using the Form 1099-C. Remember, all amounts entered in Box 2 will be taken to the return as taxable income. Any excluded income from the completed Form 982 does not carry to the Form 1040 as a reduction of this canceled debt income.

Form 1099-DIV

Tax-Exempt Interest:

If the tax-exempt interest is taxable to the state entered in the “State Code” field, then enter a code of “B” in the “Type” field. If the tax-exempt interest is not taxable to the state entered in the “State Code” field, enter a code of “C” in the “Type” field. All amounts entered as tax-exempt interest are federally tax-exempt. If code “B” is entered, then the amount of tax-exempt interest will be an addition to income on the state return.

Form 1099-INT

Tax-Exempt Interest:

If the tax-exempt interest is taxable to the state entered in the “State Code” field, then enter a code of “B” in the “Type” field. If the tax-exempt interest is not taxable to the state entered in the “State Code” field, enter a code of “C” in the “Type” field. All amounts entered as tax-exempt interest are federally tax-exempt. If code “B” is entered, then the amount of tax-exempt interest will be an addition to income on the state return.

Form 1099-Misc

Link to fields

Select the Form name of the form that the amount of income is associated with. For example, if the amount for nonemployee compensation should be taken to the Schedule C, select the correct Schedule C from the “Link to F3” choice list. The other income amounts on this form need to be associated with a form to be taken to the proper place in the return.

Box 13:

No input is allowed in this field. Check the IRS instructions on how to handle any amount in Box 13.

Box 14:

No input is allowed in this field. Check the IRS instructions on how to handle any amount in Box 14.

Box 17, State Use:

Pennsylvania 

Form 1099-MISC, State Income information will carry to PA Schedule MC. Use the State Use field (USG6 8210) to indicate the PA payment type for Schedule MC, column B.

Form 1099-R and RRB-1099-R

Railroad Retirement Recipients

Translation from FORM RRB-1099-R (pension equivalent form) to Federal 1099-R

     RRB-1099-R           Federal 1099-R

       Box 7                 Box 1

       Box 9                 Box 4

       Box 3                 Box 9b

Although distribution codes are not shown on the RRB-1099-R, enter a code of “7” in the “Distribution Code” box 7 field.

Check box 2b “Taxable Amount not Determined”. Then complete the Simplified Method Worksheet below the 1099-R input screen to calculate the taxable amount.

Tier 1 benefits (Form RRB-1099) are entered as Social Security benefits on Form 1040, line 20.

Box 2a.  Taxable Amount of Distribution:

If the distribution was from an IRA, complete Form 8606.

If this box is blank, see the instructions for the Simplified General Rule Worksheet.

Simplified General Rule Worksheet

Use the Simplified General Rule Worksheet to determine the taxable amount (Box 2a) if either of the following applies:

1.  The annuity started AFTER July 1, 1986 and you used this method last year to figure the taxable portion.

    a. Payments are from a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity.

    b. Payments began before the taxpayer turned 75 or are guaranteed for 5 years or less.

2.   The annuity started after November 18, 1996 and both of the following apply:

    a. You receive your pension or annuity payments from a qualified employee plan, qualified employee annuity or a tax-sheltered annuity plan (403(b))

    b. On your annuity starting date you are under 75 or you are entitled to less than five years of guaranteed payments.

Enter the smaller of the taxable amount on the 1099R or the taxable amount from the worksheet into Box 2a.

Capital Gain:

A Form 1099-R capital gain is not the same as a Schedule D capital gain. If the taxpayer or spouse receiving the lump sum distribution is at least 70 years old or the taxpayer or spouse is the beneficiary of someone at least 70 years old you may elect to treat the capital gain in box 3 as a capital gain for Form 4972 and bypass Schedule D. If the taxpayer or spouse is aged 70 and above, or a beneficiary of someone aged 70 and above, we will automatically calculate the 4792 capital gain amount. If the election is made, check the box to use the Form 4972. 

Pension/IRA Distribution Codes:

Code Description

1     Early distribution subject to 10% penalty.

2     Early distribution NOT subject to 10% penalty.

3     Disability. For these purposes, see IRC 72 (m)(7).

Y     Disability. Force the taxable amount to 1040 as wages.

V     Disability. Force the taxable amount to 1040 as a pension.

4     Payments due to death. See Form 4972 10 yr averaging.

5     Prohibited transaction subject to penalty. See Form 5329.

6     Section 1035 exchange.

7     Normal distribution.

8     Excess contributions/deferrals & earnings taxable in 2012.

9     Cost of current life insurance protection.

A     Eligible for 10 year averaging. See Form 4972.

B     Designated Roth account distribution.

D     Annuity payments from nonqualified annuities that may be subject to sec. 1411 tax

E     Distributions under Employee Plans Compliance Resolution System (EPCSRS).

F     Charitable Gift Annuity.

G     Direct rollover-and rollover contribution.

H     Direct rollover of designated Roth account to Roth IRA.

J     Early distribution from a Roth IRA, no known exception.

K     Distribution of IRA assets not having a readily available FMV

L     Loans treated as deemed distribution under section 72(p)

N     Recharacterized IRA contribution made in 2012.

P     Excess contributions plus earnings/excess deferrals taxable in 2011.

Q     Qualified distribution from a Roth IRA.

R     IRA contribution made in 2011, recharacterized in 2012.

S     Early distribution from SIMPLE IRA in first 2 years.

T     Roth IRA distribution, exception applies.

U     Dividend distribution from ESOP under sec. 404(k)

W     Charges for purchasing qualified LT care insurance contracts.

1099-Rs with code "S" will be taxed at 25% on Form 5329.

Form 4972 - 10 year averaging

Check "Yes" to elect the 10 year averaging method. If this box is checked and the distribution code in box 7 is a "4" or "A" then amounts entered on the 1099-R will be transferred to the Form 4972.  Check "No" if the election is not made. If the "Yes" box is checked then the taxable amount on line 2a will not be reported on Form 1040.

Form 4972 - Capital gain election

For taxpayers over age 70

If the taxpayer or spouse receiving the lump sum distribution is at least 70 years old or the taxpayer or spouse is the beneficiary of someone at least 70 years old you may elect to treat the capital gain in box 3 as a capital gain for Form 4972 and bypass Schedule D by checking this box. If the taxpayer or spouse (aged 70 and above) elects to treat the capital gain as a Form 4972 capital gain, taxed at 20%, we will automatically calculate the 4972 capital gain amount, if this box is checked. If the taxpayer or spouse receiving the lump sum distribution (aged 70 and above) desires to treat the capital gain as ordinary you cannot elect Form 4972 capital gain treatment. 

Hint: A taxpayer who is on a fixed income and has an effective tax rate of less than 20% should consider the advantages and disadvantages of electing capital gain treatment for lump sum distributions, prior to making the election.

For taxpayers under age 70

If the taxpayer or spouse is the beneficiary of someone aged 70 and above and desires to secure the benefits of capital gains treatment on Form 4972 the beneficiary will need to complete the questions in Part 1 of Form 4972 to secure the capital gain treatment. Only a beneficiary of someone aged 70 and above can use Form 4972.  All other beneficiaries and taxpayers securing a capital gain on Form 1099R must report that gain on Schedule D and should not check this box.

Distributions excepted from additional tax:

Some distributions can be exempt from additional tax; the 10% additional tax does not apply to certain distributions specifically excepted by the Code. Enter the amount that can be excluded if less than 100%. In the field provided, enter the applicable exception number (01-12) from the list below.

NO.   EXCEPTION

01    Distribution due to separation from service in or after the year of reaching age 55 (does not apply to IRAs)

02    Distribution made as a part of a series of substantially equal periodic payments (made at least annually) for

your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated

beneficiary (if from a qualified employee plan, payments must begin after separation from service)

03    Distribution due to total and permanent disability

04    Distribution due to death (does not apply to modified endowment contracts)

05    Distribution to the extent you have unreimbursed medical expenses that exceed 10.0% (7.5% if you or your spouse are

Age 65 or older) of AGI

06    Distributions made to an alternate payee under a qualified domestic relations order (i.e. divorce)(does not apply to IRAs)

07    Distributions made to pay health insurance premiums if the taxpayer is unemployed (only applies to an IRA)

08    Distributions equal to or less than your qualified higher education expenses (only applies to an IRA)

09    Distributions made to pay for a first time home purchase (only applies to an IRA)

10    Distributions due to an IRS levy of the qualified plan (does not apply to IRAs)

11    Qualified distributions to reservist while serving on active duty for at least 180 days

12    Other (See instructions for Form 5329)

Indirect Rollover

X the Indirect Rollover box if the distribution was received and then rolled over within the proper time frame and the taxpayer has proper documentation of the roll over. If the amount rolled over was not 100% of the taxable amount, then enter the amount that was rolled over in the “Amount rolled over if not 100%” box.

State Use

Arizona

If the pension received is from public sources, enter “P” in the state use box, field US048240. If the pension received is from military sources, enter "M" in the state use box, field US048240. If the pension received is from other Government sources, enter "G" in the state use box, field US048240. If the pension received is from Railroad Retirement sources, enter "R" in the state use box, field US048240

District of Columbia

If the pension received is from public sources, enter “P” in the state use box, field US048240. If the pension received is from military sources, enter "M" in the state use box, field US048240. If the pension received is from a Distribution Code 2 Exemption, enter "E" in the state use box, field US048240. If the pension received is from a non-military deceased spouse, enter "D" in the state use box, field US048240.

Indiana

If the pension received is from military sources, enter "M" in the state use box, field US048240. For a Resident return, the Military Retirement Income carries to the Schedule 2, Military Service Deduction Worksheet, Line 3. The Military Service Deduction worksheet can be found behind Schedule 2, Line 7.  For a Non-Resident return, the Military Retirement Income carries to the Schedule C, Military Service Deduction Worksheet, Line 3. The Military Service Deduction worksheet can be found behind Schedule C, Line 7.

Michigan

If the pension received is from military sources, enter "M" in the state use box, field US048240. If the pension received is from public sources, such as police, fire or other government, enter “P” in the state use box, field US048240.  If the pension should be exempted from the Schedule 1 subtraction, enter “E” in the state use box, field US048240.  If the pension is not a military pension and was received for a deceased spouse, enter “D” in the state use box, field US048240.  These items will flow to either Schedule 1 or Form 4884 as appropriate.

Mississippi

A distribution code "3" when the individual is under 59 1/2 is considered early distribution and is taxable to MS. However, payments from PERS for disability are exempt from income. Enter a "P" in the state use box, field US048240, and "MS" in the state use box, field US040246, to exclude this income from the Mississippi tax return.

Kentucky

Pension information will carry to Schedule P, Part I, line 1a if a code “A” is entered on 1099-R, state use box (US04 8240). Information will carry to Schedule P, Part I, Line 1b if a code “B” is entered on 1099-R, state use box (US04 8240)

Maine

If the pension received is from military sources, enter "M" in the state use box, field US048240.  If the pension is from non-military sources, leave state use box, field US048240 blank. Military pensions carry to the "Eligible military pension income" line of the Pension Income Deduction Worksheet. Non-military pensions carry to the   "Eligible non-military pension income" line.

Missouri

If the pension received is from military sources, enter "M" in the state use box, field US048240. If the pension is from public sources other than military, enter a “P” in the state use box, field US048240. If the pension is from Rail Road Retirement, enter “R” in the state use box, field US048240. If pension received is from private source leave state use box, field US048240 blank. The allowable Missouri exclusion will be calculated on MO Schedule MO-A.

New York

If you received a pension or other distribution from a NYS or local government pension plan or federal government pension plan, then enter code G as the state use code on Form 1099-R, line 17a.

North Carolina

Enter a code in the State Use field of federal Form 1099-R to indicate which line the retirement benefits should carry to on the NC return.

Valid Entries:

(B) Bailey Settlement. Amount in State Distribution will carry to D-400S, line 8

(R) Railroad Retirement Benefits. Amount in State Distribution will carry to D-400S, line 7

Oklahoma

If the pension received is from any government source, including the Armed Forces, enter "G" in state use box, field US048240 and "OK" in state use box, field US040246. The allowable Oklahoma or Federal Government Retirement exclusion will be calculated on OK Schedule 511-A, line 3.

Pennsylvania

Form 1099-R, State Distribution will only carry to PA Schedule MC when a "T" is entered in the State Use field (US04 8240). This will indicate it is taxable to Pennsylvania. The state code must also equal "PA" (US04 0246).

West Virginia

If the pension received is from any WV police, sheriff's or firemen's retirement system, enter 'F' in the state use box, field US048240, and 'WV' in the state use box, field US040246. If the pension received is from any WV Teachers Retirement, Public Employees Retirement, Federal Retirement and any form of military retirement enter 'P' and 'WV' in the state use boxes, fields US048240, and US040246, respectively.  The taxable amount will carry to the appropriate line on page 2 of Form IT-140/IT-140NR and calculate the exclusion.

Schedule A

Use Schedule A to figure your itemized deductions.

In most cases, your Federal income tax will be less if you take the larger of your itemized deductions or your standard deduction.

If you itemize, you may deduct:

(a) Amounts you paid for certain:

    - Contributions

    - Interest

    - Miscellaneous expenses

    - Taxes

(b) Certain casualty and theft losses

(c) Part of your medical and dental expenses

(d) Part of your unreimbursed employee business expenses

Medical and Dental Expenses:

You may only deduct the part of your medical and dental expenses that exceed 10.0% of your Federal Adjusted Gross Income (7.5% if you or your spouse are age 65 or older).

Enter the total medical and dental expenses, after reducing these expenses by any payments received from insurance or other sources. Include amounts paid for insurance premiums for medical and dental care. This amount must be reduced by any self-employed health insurance deduction claimed on your Form 1040, line 29.

Include medical and dental bills paid for:

-Taxpayer

-Spouse

-All dependents claimed on the return

-Any child not claimed as a dependent because of the rules for children of divorced or separated parents.

-Any person that could have been claimed as a dependent on the return if that person had not received $3,950 or more of income or had not filed a joint tax return.

Examples of deductible medical and dental expenses:

-Prescription medicines and drugs, or insulin; Medical doctors, dentists, eye doctors, physical therapists, acupuncturists, and psychoanalysts (medical care only); Medical examination, X-ray and laboratory services and whirlpool baths that were doctor-ordered; Nursing help (including employment taxes paid); Hospital care (including meals and lodging), clinic costs, and lab fees; The supplemental part of Medicare insurance (Medicare B); premiums paid for Medicare Part D insurance; Medical aids such as eyeglasses, contact lenses, hearing aids, braces, crutches, wheelchairs, and guide dogs; Lodging expenses (but not meals) while away from home to receive medical care in a hospital or a medical care facility related to a hospital. Do not include more than $50 a night for each eligible person; Ambulance service and other travel costs to get medical care.  If the taxpayer used their own vehicle, actual cost of gas and oil may be claimed or 24 cents a mile.

Taxes You Paid:

You may only deduct State and Local Income Taxes, Real Estate Taxes, Personal Property Taxes, and any other taxes that do not include one of the following:

(a) Certain State and Local Taxes

     - Assessments for sidewalks or other property improvements

     - Car inspection fees

     - License fees

     - Taxes on gasoline

     - Taxes you paid for someone else

 (b) Customs Duties

 (c) Federal Estate and Gift Taxes

 (d) Federal Income and Excise Taxes

 (e) Federal Unemployment Taxes (FUTA)

 (f) Medicare Taxes

 (g) Railroad Retirement Taxes (RRTA)

 (h) Social Security Taxes

 (i) Sales Taxes

2014 General Sales Tax: