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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
one of your creditors. You must include that 915 915 Social Security and Equivalent Self-employment tax. Whether you're an
amount in your income when your creditor re- Railroad Retirement Benefits employee or self-employed person, your in-
ceives it. come could be subject to self-employment tax.
970 970 Tax Benefits for Education See the Instructions for Schedule C (Form
Prepaid income. In most cases, prepaid in- 4681 4681 Canceled Debts, Foreclosures, 1040) and the Instructions for Schedule SE
come, such as compensation for future serv- Repossessions, and Abandonments (Form 1040) if you're self-employed. Also see
ices, is included in your income in the year you Pub. 926 for more information.
receive it. However, if you use an accrual Form (and Instructions)
method of accounting, you can defer prepaid in- Bankruptcy. If you filed for bankruptcy under
come you receive for services to be performed 1040 1040 U.S. Individual Income Tax Return chapter 11 of the Bankruptcy Code, you must
before the end of the next tax year. In this case, 1040-NR 1040-NR U.S. Nonresident Alien Income allocate your wages and withheld income tax.
you include the payment in your income as you Tax Return Your Form W-2 will show your total wages and
earn it by performing the services. withheld income tax for the year. On your tax re-
1040-SR 1040-SR U.S. Tax Return for Seniors turn, you report the wages and withheld income
Comments and suggestions. We welcome tax for the period before you filed for bank-
your comments about this publication and sug- 1099-R 1099-R Distributions From Pensions, ruptcy. Your bankruptcy estate reports the wa-
gestions for future editions. Annuities, Retirement or ges and withheld income tax for the period after
You can send us comments through Profit-Sharing Plans, IRAs, Insurance you filed for bankruptcy. If you receive other in-
IRS.gov/FormComments. Or, you can write to Contracts, etc. formation returns (such as Form 1099-DIV or
the Internal Revenue Service, Tax Forms and W-2 W-2 Wage and Tax Statement Form 1099-INT) that report gross income to
Publications, 1111 Constitution Ave. NW, you, rather than to the bankruptcy estate, you
IR-6526, Washington, DC 20224. See How To Get Tax Help at the end of this must allocate that income.
Although we can’t respond individually to publication for information about getting these The only exception is for purposes of figur-
each comment received, we do appreciate your publications. ing your self-employment tax if you're self-em-
feedback and will consider your comments and ployed. For that purpose, you must take into ac-
suggestions as we revise our tax forms, instruc- count all your self-employment income for the
tions, and publications. Don’t send tax ques- Employee year from services performed both before and
tions, tax returns, or payments to the above ad- Compensation after the beginning of the case.
dress. You must file a statement with your income
Getting answers to your tax questions. In most cases, you must include in gross in- tax return stating you filed a chapter 11 bank-
ruptcy case. The statement must show the allo-
If you have a tax question not answered by this come everything you receive in payment for cation and describe the method used to make
publication or the How To Get Tax Help section personal services. In addition to wages, salar- the allocation. For a sample of this statement
at the end of this publication, go to the IRS In- ies, commissions, fees, and tips, this includes and other information, see Notice 2006-83,
teractive Tax Assistant page at IRS.gov/ other forms of compensation such as fringe 2006-40 I.R.B. 596, available at IRS.gov/irb/
Help/ITA where you can find topics by using the benefits and stock options. 2006-40_IRB#NOT-2006-83.
search feature or viewing the categories listed. You should receive a Form W-2 from your
Getting tax forms, instructions, and pub- employer or former employer showing the pay Miscellaneous
lications. Go to IRS.gov/Forms to download you received for your services. Include all your Compensation
current and prior-year forms, instructions, and pay on Form 1040 or 1040-SR, line 1a, even if
publications. you don’t receive Form W-2, or you receive a This section discusses many types of employee
Ordering tax forms, instructions, and Form W-2 that doesn’t include all pay that compensation. The subjects are arranged in al-
should be included on the Form W-2.
publications. Go to IRS.gov/OrderForms to phabetical order.
order current forms, instructions, and publica- If you performed services, other than as an
tions; call 800-829-3676 to order prior-year independent contractor, and your employer Advance commissions and other earnings.
forms and instructions. The IRS will process didn’t withhold social security and Medicare If you receive advance commissions or other
your order for forms and publications as soon taxes from your pay, you must file Form 8919 amounts for services to be performed in the fu-
as possible. Don’t resubmit requests you’ve al- with your Form 1040 or 1040-SR. These wages ture and you're a cash-method taxpayer, you
ready sent us. You can get forms and publica- must be included on Form 1040 or 1040-SR, must include these amounts in your income in
tions faster online. line 1g. See Form 8919 for more information. the year you receive them.
If you repay unearned commissions or other
Useful Items Fair market value (FMV). The FMV of an amounts in the same year you receive them, re-
You may want to see: item of property is the price at which the item duce the amount of unearned commissions in-
would change hands between a willing buyer cluded in your income by the repayment. If you
and a willing seller, neither being required to
Publication buy or sell and both having reasonable knowl- repay them in a later tax year, you can deduct
the repayment as an itemized deduction on
334 334 Tax Guide for Small Business edge of the relevant facts. your Schedule A (Form 1040), Other Itemized
523 523 Selling Your Home Childcare providers. If you provide childcare, Deductions, line 16, or you may be able to take
a credit for that year. See Repayments, later.
527 527 Residential Rental Property either in the child's home or in your home or
other place of business, the pay you receive
541 541 Partnerships must be included in your income. If you're not Allowances and reimbursements. If you re-
ceive travel, transportation, or other business
544 544 Sales and Other Dispositions of an employee, you're probably self-employed expense allowances or reimbursements from
Assets and must include payments for your services on your employer, see Pub. 463. If you're reim-
550 550 Investment Income and Expenses Schedule C (Form 1040), Profit or Loss From bursed for moving expenses, see Pub. 521.
Business. You generally aren’t an employee un-
554 554 Tax Guide for Seniors less you're subject to the will and control of the Back pay awards. Include in income amounts
559 559 Survivors, Executors, and person who employs you as to what you're to you're awarded in a settlement or judgment for
do, and how you're to do it.
Administrators back pay. These include payments made to you
for damages, unpaid life insurance premiums,
Babysitting. If you babysit for relatives or
575 575 Pension and Annuity Income neighborhood children, whether on a regular and unpaid health insurance premiums. They
907 907 Tax Highlights for Persons With basis or only periodically, the rules for childcare should be reported to you by your employer on
Disabilities providers apply to you. Form W-2.
Publication 525 (2022) Page 3