Publication 525 (2008), Taxable and Nontaxable Income

501(c)(18)(D) contributions, Section 501(c)(18)(D) contributions.
Accrued leave payment at time of retirement or resignation, Accrued leave payment.
Back pay awards, Back pay awards.
Bonuses or awards, Bonuses and awards.
Elective deferrals, reporting by employer, Reporting by employer.
Failure to receive from employer, Employee Compensation
Fringe benefits reported on, Form W-2.
Stock options from employers, Tax form.
Wage and tax statement, Employee Compensation

Form W-2G:

Gambling winnings, Form W-2G.

Form W-4V:

Unemployment compensation, voluntary withholding request, Tax withholding.

Form W-9:

Request for taxpayer identification number, Backup withholding.

Foster care, Foster care providers.

Foster Grandparent Program, National Senior Service Corps programs.

Found property, Found property.

Free tax services, How To Get Tax Help

Fringe benefits, Fringe Benefits, Special valuation rules.

Bicycle commuters, What's New for 2009
Moving expenses (see Moving expenses)
Retirement planning (see Retirement planning services)
Vehicle, Employer-provided vehicles.

Fringe benefits:

Accident and health insurance, Accident or Health Plan
Adoption, employer assistance, Adoption Assistance
Athletic facilities, Athletic Facilities
Commuter highway vehicles, Transportation
De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging
Dependent care benefits, Dependent Care Benefits
Educational assistance, Educational Assistance
Employee discounts, Employee Discounts
Faculty lodging, Faculty lodging.
Financial counseling fees, Financial Counseling Fees
Holiday gifts, Holiday gifts.
Meals and lodging, Meals and Lodging
No-additional-cost services, No-Additional-Cost Services
Parking, Transportation
Transit pass, Transportation, Transit pass.
Tuition reduction, Tuition Reduction
Valuation of, Valuation of Fringe Benefits, Special valuation rules.
Working condition benefits, Working Condition Benefits

Frozen deposits:

Interest on, Interest on frozen deposits.

G

Gambling winnings and losses, Gambling winnings.

Gas:

Royalties from, Oil, gas, and minerals.

Gifts, Gifts and inheritances.

Gifts:

Holiday gifts from employer, Holiday gifts.

Government employees (see Federal employees; State employees)

Grantor trusts, Grantor trust.

Group-term life insurance:

Worksheets, Figuring the taxable cost., Worksheet 1. Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated

H

Health:

Flexible spending arrangement, Health flexible spending arrangement (health FSA).
Insurance, Accident or Health Plan
Reimbursement arrangement, Health reimbursement arrangement (HRA).
Savings account, Reminders, Health savings accounts (HSA).

Help (see Tax help)

Highly compensated employees:

Excess contributions to elective deferrals, Excess Contributions

Historic preservation grants, Historic preservation grants.

Hobby losses, Hobby losses.

Holding period requirement, Holding period requirement.

Holiday gifts, Holiday gifts.

Holocaust victims restitution, Holocaust victims restitution.

Home, sale of, Sale of home.

Host or hostess, Host or Hostess

Hotels:

No-additional-cost services, No-Additional-Cost Services

Housing (see Lodging)

I

Illegal activities, Illegal activities.

Incentive stock options (ISOs), Statutory Stock Options, Incentive stock options (ISOs).

Income:

Assigned, Assignment of income.
Business and investment, Business and Investment Income, More information.
Constructive receipt of, Constructively received income.
Estate and trust, Estate and trust income.
Foreign employers, Foreign Employer
Illegal, Illegal activities.
Miscellaneous, Miscellaneous Income
Other, Other Income
Partnership, Partnership Income
Prepaid, Prepaid income.
S corporation, S Corporation Income

Indian fishing rights, Indian fishing rights.

Individual retirement arrangements (IRAs):

Deduction, Benefits may affect your IRA deduction.
Inherited IRA, Inherited pension or IRA.

Inheritance, Gifts and inheritances.

Inheritance:

IRA, Inherited pension or IRA.
Property not substantially vested, Inherited property not substantially vested.

Injury benefits, Sickness and Injury Benefits, Reimbursement for medical care.

Insurance

Life (see Life insurance)
Long-term care (see Long-term care insurance)

Insurance:

Credit card, Credit card insurance.
Health, Accident or Health Plan

Interest:

Canceled debt including, Interest included in canceled debt.
Frozen deposits, Interest on frozen deposits.
Mortgage refunds, Mortgage interest refund.
Option on insurance, Interest option on insurance.
Recovery amounts, Interest on recovery.
Savings bond, Interest on qualified savings bonds.
State and local government obligations, Interest on state and local government obligations.

Interference with business operations:

Damages as income, Court awards and damages.

International organizations, employees of, Foreign Employer

Interview expenses, Job interview expenses.

Investment counseling fees, Financial Counseling Fees

Investment counseling fees:, Financial Counseling Fees

(see also Retirement planning services)

Investment income, Business and Investment Income, More information.

IRAs (see Individual retirement arrangements (IRAs))

Iron ore, Coal and iron ore.

Itemized deductions:

Limited, Itemized deductions limited.
Recoveries, Recoveries, Itemized Deduction Recoveries

J

Job interview expenses, Job interview expenses.

Joint returns:

Social security benefits or railroad retirement payments, Joint return.

Jury duty pay, Jury duty.

K

Kickbacks, Kickbacks.

L

Labor unions:

Convention expenses, reimbursed, Reimbursed union convention expenses.
Dues, Union benefits and dues.
Strike and lockout benefits, Strike and lockout benefits.
Unemployment benefits paid from, Payments by a union.

Last day of tax year, income received on, Constructively received income.

Leave (see Accrued leave payment)

Length-of-service awards, Employee achievement award.

Life insurance

Employer-owned, Employer-owned life insurance contract.

Life insurance:

Proceeds, Life Insurance Proceeds
Surrender of policy for cash, Surrender of policy for cash.

Loans:, Discounted mortgage loan.

(see also Mortgage)
Below-market, Below-market loans.
Student, Student loans.

Lockout benefits, Strike and lockout benefits.

Lodging:

Campus lodging, Qualified campus lodging., Moving Expense Reimbursements
Clergy, Housing
Employer-paid or reimbursed, Meals and Lodging
Faculty lodging, Faculty lodging.
Replacement housing payments, Replacement housing payments.

Long-term care insurance, Long-term care coverage., Long-Term Care Insurance Contracts

Lotteries and raffles, Lotteries and raffles.

Lump-sum distributions:

Survivor benefits, Lump-sum payments.

M

Manufacturer incentive payments, Manufacturer incentive payments.

Meals:

Employer-paid or reimbursed, Meals and Lodging
Nutrition Program for the Elderly, Nutrition Program for the Elderly.

Medical:

Care reimbursements, Reimbursement for medical care.
Responders, emergency, Volunteer firefighters and emergency medical responders.
Savings accounts, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs).

Medicare

Advantage MSAs, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs).

Medicare tax (see Social security and Medicare taxes)

Medicare:

Benefits, Medicare.
Tax paid by employer, Social security and Medicare taxes paid by employer.

Military (see Armed forces)

Minerals:

Royalties from, Oil, gas, and minerals.

Miscellaneous:

Compensation, Miscellaneous Compensation
Income, Miscellaneous Income

Missing children, photographs of, Reminders

More information (see Tax help)

Mortgage:

Assistance payment, Mortgage assistance payments.
Discounted loan, Discounted mortgage loan.
Interest refund, Mortgage interest refund.
Qualified principal residence indebtedness, Qualified principal residence indebtedness (QPRI).
Relief, Mortgage relief upon sale or other disposition.

Motor vehicle, employer-provided, Employer-provided vehicles.

Moving expenses:

Reimbursements, Allowances and reimbursements., Moving expense reimbursements.

MSAs (Medical savings accounts), Medical savings accounts (Archer MSAs and Medicare Advantage MSAs).

N

National Health Service Corps Scholarship Program, Tuition Reduction

National Oceanic and Atmospheric Administration, Service-connected disability.

National Senior Service Corps, National Senior Service Corps programs.

No-additional-cost services, No-Additional-Cost Services

No-fault car insurance:

Disability benefits under, Other compensation.

Nobel prize, Pulitzer, Nobel, and similar prizes.

Nonrecourse debt, Mortgage relief upon sale or other disposition.

Nonstatutory stock options, Nonstatutory Stock Options

Nontaxable income, Introduction

Not-for-profit activities, Activity not for profit.

Notary fees, Notary public.

Notes received for services, Note received for services.

Nutrition Program for the Elderly, Nutrition Program for the Elderly.

O

Oil:

Royalties from, Oil, gas, and minerals.

Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI).

Options, stock, Stock Options, Statutory Stock Options

Outplacement services, Outplacement services.

Overseas work, Reminders

P

Parking fees:

Employer-paid or reimbursed, Transportation, Qualified parking.

Partner and partnership income, Partnership Income

Patents:

Infringement damages, Court awards and damages.
Royalties, Copyrights and patents.

Peace Corps, Peace Corps.

Pensions:

Clergy, Pension.
Disability pensions, Disability Pensions
Inherited pensions, Inherited pension or IRA.
Military, Military retirement pay.

Personal property:

Rental income and expense, Rents From Personal Property
Sale of, Sale of personal items.

Personal representatives (see Fiduciaries)

Prepaid income, Prepaid income.

Price reduced after purchase, Price reduced after purchase.

Prizes and awards, Bonuses and awards., Prizes and awards.

Prizes and awards:

Achievement awards, Employee achievement award.
Employee awards or bonuses, Employee awards or bonuses.
Length-of-service awards, Employee achievement award.
Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes.
Safety achievement, Employee achievement award.
Scholarship prizes, Prizes.

Profit-sharing plan, Retirement and profit-sharing plans.

Public assistance benefits, Welfare and Other Public Assistance Benefits

Public Health Service, Service-connected disability.

Public safety officers killed in line of duty, Public safety officer killed in the line of duty.

Public transportation passes, employer-provided, Transportation, Transit pass.

Publications (see Tax help)

Pulitzer prize, Pulitzer, Nobel, and similar prizes.

Punitive damages, Court awards and damages.

Q

Qualified Joint Venture, Reminders
Qualified tuition program (QTP), Qualified tuition program (QTP).

R

Raffles, Lotteries and raffles.

Railroad:

Retirement annuities, Railroad retirement annuities.
Retirement benefits, Social security and equivalent railroad retirement benefits.
Sick pay, Railroad sick pay.
Unemployment compensation benefits, Types of unemployment compensation.

Real estate:

Qualified real property business debt, cancellation of, Excluded debt.

Rebates:

Cash, Cash rebates.
Utility, Utility rebates.

Recovery of amounts previously deducted, Recoveries

Recovery of amounts previously deducted:, Standard deduction for earlier years.

Itemized deductions, Recoveries, Itemized Deduction Recoveries
Non-itemized deductions, Non-Itemized Deduction Recoveries
Unused tax credits, refiguring of, Unused tax credits., Unused tax credits.

Refunds:

Federal income tax, Federal income tax refund.
Mortgage interest, Mortgage interest refund.
State tax, State tax refund.

Rehabilitative program payments, Veterans' benefits.

Reimbursements:

Business expenses, Allowances and reimbursements.
Casualty losses, Casualty insurance and other reimbursements.
Meals and lodging, Meals and Lodging
Medical expenses, Reimbursement for medical care.
Moving expenses, Allowances and reimbursements., Moving expense reimbursements.

Related party transactions:

Stock option transfer, Transfer in non-arm's-length transaction.

Religious order members, Members of Religious Orders

Rental income and expenses:

Personal property rental, Rents From Personal Property
Reporting of, Reporting business income and expenses.

Repayments, Repayments, Year of deduction (or credit).

Repossession, Canceled sales contract.

Restricted property, Restricted Property, Inherited property not substantially vested.

Retired Senior Volunteer Program (RSVP), National Senior Service Corps programs.

Retirement planning services, Financial Counseling Fees, Retirement Planning Services

Retirement plans

Automatic contribution arrangements, What's New for 2008, Qualified automatic contribution arrangements.
Elective deferrals (see Elective deferrals)

Retirement plans:, Military retirement pay.

(see also Pensions)
Contributions, Retirement Plan Contributions, Excess Annual Additions

Rewards, Rewards.

Roth contributions, Designated Roth contributions.

Royalties, Royalties

S

S corporations, S Corporation Income

Safety achievement awards, Employee achievement award.

Salary reduction simplified employee pension plans (see SARSEPs)

Sale of home, Sale of home.

Sales contracts:

Cancellation of, Canceled sales contract.

SARSEPs, Elective Deferrals

SARSEPs:

Excess contributions, Excess Contributions

Savings bonds, Interest on qualified savings bonds.

Savings incentive match plans for employees (see SIMPLE plans)

Scholarships and fellowships, Scholarships and fellowships.

Self-employed persons:

U.S. citizens working for foreign employers in U.S. treated as, Social security and Medicare taxes.

Senior Companion Program, National Senior Service Corps programs.

Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE).

Severance pay, Severance pay.

Severance pay:

Outplacement services, Outplacement services.

Sick pay, Sick pay.

Sickness and injury benefits, Sickness and Injury Benefits, Reimbursement for medical care.

SIMPLE plans, Elective Deferrals

SIMPLE plans:

Limit for deferrals under, Limit for deferrals under SIMPLE plans.

Smallpox vaccine injuries, Smallpox vaccine injuries.

Social security and Medicare taxes:

Foreign employers, U.S. citizens working for in U.S., Social security and Medicare taxes.
Paid by employer, Social security and Medicare taxes paid by employer.

Social security benefits, Social security and equivalent railroad retirement benefits.

Standard deduction:

Recoveries, Standard deduction limit., Standard deduction for earlier years.
Tables (2007-2005), Standard deduction for earlier years.

State employees:

Unemployment benefits paid to, State employees.

State or local governments:

Interest on obligations of, Interest on state and local government obligations.

State or local taxes:

Refunds, State tax refund.

Statutory stock option holding period, Sale of the stock.

Stock appreciation rights, Stock appreciation rights.

Stock options, Stock Options, Statutory Stock Options

Stock options, nonstatutory:

Exercise or transfer, Exercise or transfer of option.
Grant, Grant of option.
Sale, Sale of the stock.

Stock options, statutory:

Exercise, Exercise of option.
Grant, Grant of option.
Sale, Sale of the stock.

Stockholder debts, Stockholder debt.

Stolen property, Stolen property.

Strike benefits, Strike and lockout benefits.

Student loans:

Cancellation of debt, Student loans.

Substantial risk of forfeiture, Substantial risk of forfeiture.

Substantially vested property, Substantially vested.

Suggestions for publication, Comments and suggestions.

Supplemental security income (SSI) payments, Social security and equivalent railroad retirement benefits.

Supplemental unemployment benefits, Supplemental unemployment benefits.

Surviving spouse:

Life insurance proceeds paid to, Surviving spouse.

Survivor benefits, Survivor Benefits

T

Tables and figures:

Group-term life insurance (Table 1), Group-Term Life Insurance
Standard deduction (Tables 2-4), Standard deduction for earlier years.

Tax benefit rule, Tax benefit rule.

Tax Counseling for the Elderly, Volunteer tax counseling.

Tax help, How To Get Tax Help

Tax-sheltered annuity plans (403(b) plans), Elective Deferrals

Tax-sheltered annuity plans (403(b) plans):

Limit for, Limit for tax-sheltered annuities.

Taxpayer Advocate, Contacting your Taxpayer Advocate.

Terminal illness, Exclusion for terminal illness.

Terrorist attacks:

Disability payments for injuries from, Terrorist attack or military action.
Victims of, tax relief, Reminders

Thrift Savings Plan, Elective Deferrals

Title VII, Civil Rights Act of 1964:

Back pay and damages for emotional distress under, Court awards and damages.

Tour guides, free tours for, Free tour.

Trade Act of 1974:

Trade readjustment allowances under, Types of unemployment compensation., Repayment of benefits.

Transferable property, Transferable property.

Transit passes, Transportation, Transit pass.

Travel agencies:

Free tour to organizer of group of tourists, Free tour.

Travel and transportation expenses:

Free tours from travel agencies, Free tour.
Fringe benefits, Transportation
Reimbursements, Allowances and reimbursements.
School children, transporting of, Transporting school children.

Trusts:

Grantor trusts, Grantor trust.
Income, Estate and trust income.

TTY/TDD information, How To Get Tax Help

Tuition program, qualified (QTP), Qualified tuition program (QTP).

Tuition reduction, Tuition Reduction

U

Unemployment compensation, Unemployment Benefits

Unions (see Labor unions)

Unlawful discrimination suits

Deduction for costs, Deduction for costs involved in unlawful discrimination suits.

V

VA payments, VA payments.

Valuation:

Fringe benefits, Valuation of Fringe Benefits, Special valuation rules.
Stock options, Nonstatutory Stock Options

Vehicle:

Commuter highway, Commuter highway vehicle.
Employer-provided, Employer-provided vehicles.

Veterans benefits:, Veterans' benefits.

Disability compensation, Retroactive VA determination.
Retroactive VA determination, What's New for 2008, Retroactive VA determination.
Special statute of limitations., Special statute of limitations.

Viatical settlements, Viatical settlement.

Volunteer work, Volunteers

Volunteer work:

Emergency medical responders, Volunteer firefighters and emergency medical responders.
Firefighters, Volunteer firefighters and emergency medical responders.
Tax counseling (Volunteer Income Tax Assistance Program), Volunteer tax counseling.

Volunteers in Service to America (VISTA), Volunteers in Service to America (VISTA).

W

W-2 form (see Form W-2)

Welfare benefits, Welfare and Other Public Assistance Benefits

Winter energy payments, Payments to reduce cost of winter energy.

Withholding:

Barter exchange transactions, Backup withholding.
Unemployment compensation, Tax withholding.

Work-training programs, Work-training program.

Workers' compensation, Workers' Compensation

Working condition benefits, Working Condition Benefits

Worksheets:

Group-term life insurance (Worksheet 1), Figuring the taxable cost., Worksheet 1. Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated

Index

Symbols

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W