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1040 Ez Form

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1040 Ez Form

1040 ez form Index A Abusive tax shelters (see Tax shelters) Accounting fees, Attorney or accounting fees. 1040 ez form Accrual method, Accrual method taxpayers. 1040 ez form , Accrual method. 1040 ez form , Holders must use accrual method. 1040 ez form , When To Deduct Investment Interest Accuracy-related penalty, Accuracy-related penalty. 1040 ez form Acquisition discount, Government obligations. 1040 ez form , Acquisition discount on short-term obligations. 1040 ez form Adjusted basis, Basis adjustment. 1040 ez form , Fair market value equal to or more than donor's adjusted basis. 1040 ez form , Adjusted Basis, Short sales. 1040 ez form Alaska Permanent Fund dividends, Alaska Permanent Fund dividends. 1040 ez form , Child's Alaska Permanent Fund dividends. 1040 ez form Amortization of bond premium, Bond Premium Amortization, Bonds acquired after October 22, 1986, but before 1988. 1040 ez form Annuities Borrowing on, Borrowing on insurance. 1040 ez form Interest on, Interest on annuity contract. 1040 ez form Life insurance proceeds used to buy, Annuity. 1040 ez form Sale of, Sale of Annuity Single-premium, Single-premium life insurance, endowment, and annuity contracts. 1040 ez form Trade for, Trade of investment property for an annuity. 1040 ez form , Insurance Policies and Annuities Applicable federal rate, Applicable federal rate. 1040 ez form Appreciated financial positions, Constructive Sales of Appreciated Financial Positions Arbitrage bonds, Arbitrage bonds. 1040 ez form Assistance (see Tax help) At-risk rules, At-risk rules. 1040 ez form , At-risk rules. 1040 ez form Attorneys' fees, Attorney or accounting fees. 1040 ez form Automatic investment service, Automatic investment service and dividend reinvestment plans. 1040 ez form , Automatic investment service. 1040 ez form , Automatic investment service. 1040 ez form Average basis, Average Basis Double-category method, Transition rule from double-category method. 1040 ez form Illustrated, Average basis method illustrated. 1040 ez form B Backup withholding, Backup withholding. 1040 ez form Bad debts, Nonbusiness bad debt. 1040 ez form , Nonbusiness Bad Debts Bankrupt financial institutions Deposit in, Deposit in Insolvent or Bankrupt Financial Institution Bargain purchases, Bargain purchases. 1040 ez form Basis, Basis of Investment Property, U. 1040 ez form S. 1040 ez form Treasury Notes or Bonds Adjusted, Basis adjustment. 1040 ez form , Fair market value equal to or more than donor's adjusted basis. 1040 ez form , Adjusted Basis, Short sales. 1040 ez form Average, Average Basis Cost, Cost Basis, Cost Basis Inherited property, Property Received as Inheritance Investment property, Basis of Investment Property Like-kind exchanges, Basis of property received. 1040 ez form Other than cost, Basis Other Than Cost REITs, Shares in a mutual fund or REIT. 1040 ez form REMIC, residual interest, Basis in the residual interest. 1040 ez form Replacement stock, Basis of replacement stock. 1040 ez form Shares acquired by reinvestment, Reinvestment right. 1040 ez form Stocks and bonds, Basis adjustment. 1040 ez form , Basis. 1040 ez form , Basis. 1040 ez form , Stocks and Bonds Bearer obligations, Bearer CDs. 1040 ez form , Bearer Obligations Below-market loans, Below-Market Loans Bonds Accrued interest on, Accrued interest on bonds. 1040 ez form Amortization of premium, Bond Premium Amortization Arbitrage, Arbitrage bonds. 1040 ez form Basis, Basis. 1040 ez form , Stocks and Bonds Capital asset, Stocks, stock rights, and bonds. 1040 ez form Convertible, Convertible stocks and bonds. 1040 ez form Coupon, Coupon bonds. 1040 ez form Enterprise zone facility, Enterprise zone facility bonds. 1040 ez form Federally guaranteed, Federally guaranteed bonds. 1040 ez form Identification, Identifying stock or bonds sold. 1040 ez form Market discount, Market discount. 1040 ez form , Limit on interest deduction for market discount bonds. 1040 ez form , Market discount on bonds. 1040 ez form , Market discount bonds. 1040 ez form , Market discount bonds. 1040 ez form New York Liberty bonds, New York Liberty bonds. 1040 ez form Par value, Bonds purchased at par value. 1040 ez form Premiums on, Bond premium. 1040 ez form , Premiums on bonds. 1040 ez form Private activity, Private activity bonds. 1040 ez form Redemption or retirement of, Redemption or retirement of bonds. 1040 ez form Sold between interest dates, Bonds Sold Between Interest Dates State and local government, Tax-exempt state and local government bonds. 1040 ez form Stripped, Stripped bonds or coupons. 1040 ez form , Stripped Bonds and Coupons, Stripped tax-exempt obligation. 1040 ez form Tax credit bonds, Tax credit bonds. 1040 ez form Tax-exempt, Tax-exempt state and local government bonds. 1040 ez form Traded flat, Bonds traded flat. 1040 ez form U. 1040 ez form S. 1040 ez form savings (see U. 1040 ez form S. 1040 ez form savings bonds) U. 1040 ez form S. 1040 ez form Treasury (see U. 1040 ez form S. 1040 ez form Treasury bills, notes, and bonds) Brokerage fees, Fees to buy or sell. 1040 ez form , Sale expenses. 1040 ez form C Calls and puts, Puts and Calls Table 4-3, Table 4-3. 1040 ez form Puts and Calls Capital assets, Capital Assets and Noncapital Assets Capital gain distributions, Capital Gain Distributions, Basis adjustment. 1040 ez form , Capital gain distributions. 1040 ez form , Child's capital gain distributions. 1040 ez form , Capital gain distributions received. 1040 ez form Capital gains and losses, Capital Gains and Losses, Loss on stock that paid qualified dividends. 1040 ez form Constructive ownership transactions, Gains From Certain Constructive Ownership Transactions Definition, Capital or Ordinary Gain or Loss Empowerment zone assets, Exclusion of Gain From DC Zone Assets Investment property, Investment property. 1040 ez form Long-term, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses. 1040 ez form Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). 1040 ez form Losses, limit on, Limit on deduction. 1040 ez form Passive activities, Passive activity gains and losses. 1040 ez form Qualified covered call options, Capital loss on qualified covered call options. 1040 ez form Qualified small business stock, Gains on Qualified Small Business Stock Reporting requirements, How To Report Gains and Losses (Form 6781), How to report gain. 1040 ez form Rollover of gain from sale of securities, Rollover of Gain From Publicly Traded Securities Short-term, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses. 1040 ez form Tax rates, Capital Gain Tax Rates, Table 4-4. 1040 ez form What Is Your Maximum Capital Gain Rate? Table 4-4, Table 4-4. 1040 ez form What Is Your Maximum Capital Gain Rate? Capital loss carryover, Capital loss carryover. 1040 ez form , Capital Losses Worksheet 4-1, Worksheet 4-1. 1040 ez form Capital Loss Carryover Worksheet Cash method, Cash method taxpayers. 1040 ez form , Cash method. 1040 ez form , When To Deduct Investment Interest Reporting options for savings bond interest, Reporting options for cash method taxpayers. 1040 ez form Cash-settled options, Cash-settled options. 1040 ez form Casualty losses, Ordinary loss or casualty loss. 1040 ez form CDOs (Collateralized debt obligations), Collateralized Debt Obligations (CDOs) Certificates of deposit (CDs), Certificates of Deposit (CDs) Children Alaska Permanent Fund dividends, Child's Alaska Permanent Fund dividends. 1040 ez form Capital gain distributions, Child's capital gain distributions. 1040 ez form Custodian account for, Custodian account for your child. 1040 ez form Gifts to, Income from property given to a child. 1040 ez form Investment income of, Tax on unearned income of certain children. 1040 ez form , Investment income of child reported on parent's return. 1040 ez form Qualified dividends, Child's qualified dividends. 1040 ez form Savings account with parent as trustee, Savings account with parent as trustee. 1040 ez form U. 1040 ez form S. 1040 ez form savings bond owner, Child as only owner. 1040 ez form Clerical help, Clerical help and office rent. 1040 ez form Co-owners of U. 1040 ez form S. 1040 ez form savings bonds, Co-owners. 1040 ez form Collateralized debt obligations (CDOs), Collateralized Debt Obligations (CDOs) Collectibles, Collectibles gain or loss. 1040 ez form Commissions, Commissions and load charges. 1040 ez form Commodity futures, Commodity Futures, Commodity futures. 1040 ez form Community property U. 1040 ez form S. 1040 ez form savings bonds, Community property. 1040 ez form Constructive ownership transactions, Constructive ownership of stock. 1040 ez form , Gains From Certain Constructive Ownership Transactions Constructive receipt, Constructive receipt. 1040 ez form Constructive sales, Constructive Sales of Appreciated Financial Positions Contractors, insolvency of, Insolvency of contractor. 1040 ez form Conversion transactions, Conversion Transactions Convertible stocks and bonds, Convertible stocks and bonds. 1040 ez form Cooperatives, sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives Corporate distributions, Dividends and Other Distributions Capital gain, Capital gain distributions. 1040 ez form , Child's capital gain distributions. 1040 ez form , Capital gain distributions received. 1040 ez form Constructive, Constructive distributions. 1040 ez form Dividends (see Dividends) Fractional shares, Fractional shares. 1040 ez form Liquidating, Liquidating Distributions, Liquidating distributions. 1040 ez form Nondividend, Nondividend Distributions, Nondividend distributions. 1040 ez form Return of capital, Basis adjustment. 1040 ez form Stock rights, Distributions of Stock and Stock Rights Undistributed capital gains, Undistributed capital gains of mutual funds and REITs. 1040 ez form Corporate reorganizations, Corporate reorganizations. 1040 ez form Cost basis, Cost Basis, Cost Basis Coupon bonds, Coupon bonds. 1040 ez form D Day traders, Special Rules for Traders in Securities Dealer equity options, Dealer equity option. 1040 ez form Dealer securities futures contracts, Dealer securities futures contract. 1040 ez form Debt instruments, retirement of, Retirement of debt instrument. 1040 ez form Decedents, Appreciated property you gave the decedent. 1040 ez form , Decedent's capital loss. 1040 ez form U. 1040 ez form S. 1040 ez form savings bond interest, reporting of, Decedents. 1040 ez form Demutualization, Demutualization of Life Insurance Companies Deposits, loss on, Deposit in Insolvent or Bankrupt Financial Institution Discount on debt instruments, Discount on Debt Instruments Certificates of deposit, Certificates of Deposit (CDs) Election to report all interest as OID, Election To Report All Interest as OID Face-amount certificates, Face-Amount Certificates Gain or loss treatment, Discounted Debt Instruments Inflation-indexed, Inflation-Indexed Debt Instruments Market discount bonds (see Market discount bonds) Original issue discount (see Original issue discount (OID)) Short-term obligations, Discount on Short-Term Obligations, Short-term government obligations. 1040 ez form Stripped bonds and coupons, Stripped Bonds and Coupons Discounted debt instruments, Discount on Debt Instruments Discounted tax-exempt obligations, Discounted tax-exempt obligations. 1040 ez form Dividends, Dividends and Other Distributions, Form 1099-DIV. 1040 ez form (see also Form 1099-DIV) Alaska Permanent Fund, Alaska Permanent Fund dividends. 1040 ez form , Child's Alaska Permanent Fund dividends. 1040 ez form Exempt-interest, Exempt-interest dividends. 1040 ez form , Exempt-interest dividends. 1040 ez form , Exempt-interest dividends on mutual fund stock. 1040 ez form Extraordinary, Extraordinary dividends. 1040 ez form Holding period, Holding period. 1040 ez form Insurance policies, Dividends on insurance policies. 1040 ez form Money market funds, Money Market Funds Nominees, Nominees. 1040 ez form , Nominees. 1040 ez form Ordinary, Ordinary Dividends Patronage, Patronage dividends. 1040 ez form Payments in lieu of, Payments in lieu of dividends. 1040 ez form Qualified, Qualified Dividends, Qualified dividends. 1040 ez form , Child's qualified dividends. 1040 ez form Qualified foreign corporation, Qualified foreign corporation. 1040 ez form Received in January, Dividends received in January. 1040 ez form Reinvestment of, Reinvested distributions. 1040 ez form Reinvestment plans, Dividends Used To Buy More Stock, Automatic investment service and dividend reinvestment plans. 1040 ez form , Dividend reinvestment plans. 1040 ez form Reporting requirements, Form 1099-DIV. 1040 ez form , How To Report Dividend Income, Stripped Preferred Stock Restricted stock, Dividends received on restricted stock. 1040 ez form Sale or trade vs. 1040 ez form , Dividend versus sale or trade. 1040 ez form Scrip, Scrip dividends. 1040 ez form Sold stock, Dividends on stock sold. 1040 ez form Stock, Stock dividends. 1040 ez form , Stock dividends. 1040 ez form Underreported, Underreported interest and dividends. 1040 ez form Veterans' insurance, Interest on VA dividends. 1040 ez form , Dividends on veterans' insurance. 1040 ez form Divorce, Property Received From Your Spouse, Transfers Between Spouses E Education Savings Bond Program, Education Savings Bond Program Interest excluded under, Interest excluded under the Education Savings Bond Program. 1040 ez form Recordkeeping requirements, Education Savings Bond Program Employee stock options, Reminders Employee stock ownership plans (ESOPs), sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives Employer identification numbers (EINs), Identifying number. 1040 ez form Empowerment zone, Exclusion of Gain From DC Zone Assets Endowment contracts, Single-premium life insurance, endowment, and annuity contracts. 1040 ez form Enterprise zone facility bonds, Enterprise zone facility bonds. 1040 ez form Equity option, Equity option. 1040 ez form Estate income received by beneficiary, Beneficiary of an estate or trust. 1040 ez form Exchanges of mutual fund shares, Exchange of Shares In One Mutual Fund For Shares In Another Mutual Fund Exclusion of gain DC zone assets, Exclusion of Gain From DC Zone Assets Exempt-interest dividends on mutual fund stock, Exempt-interest dividends on mutual fund stock. 1040 ez form Expenses of producing income, Expenses of Producing Income F Face-amount certificates, Face-Amount Certificates Fair market value, Fair market value. 1040 ez form , Fair market value less than donor's adjusted basis. 1040 ez form , Fair market value. 1040 ez form Federal guarantee on bonds, Federally guaranteed bonds. 1040 ez form Fees to buy or sell, Fees to buy or sell. 1040 ez form Financial asset securitization investment trusts (FASITs), FASITs First-in first-out (FIFO), First-in first-out (FIFO). 1040 ez form Foreign currency transactions, Foreign currency contract. 1040 ez form Foreign income, Reminders Form 1040, Form 1040. 1040 ez form , Form 1040A or Form 1040. 1040 ez form Form 1040, Schedule B, Schedule B (Form 1040A or 1040). 1040 ez form Form 1040, Schedule D, How to report gain. 1040 ez form Form 1040A, Form 1040A. 1040 ez form Form 1040X, Filing a claim for refund. 1040 ez form Form 1041, Filing requirement. 1040 ez form Form 1065, Filing requirement. 1040 ez form Schedule K-1, Schedule K-1 (Form 1065). 1040 ez form Form 1066, Schedule Q, Schedule Q (Form 1066). 1040 ez form , Investment expenses from pass-through entities. 1040 ez form Form 1096, File Form 1099-INT with the IRS. 1040 ez form , File Form 1099-DIV with the IRS. 1040 ez form , File Form 1099-B or Form 1099-S with the IRS. 1040 ez form Form 1099-B, Form 1099-B. 1040 ez form , Form 1099-B transactions. 1040 ez form , File Form 1099-B or Form 1099-S with the IRS. 1040 ez form Form 1099-CAP, Form 1099-CAP transactions. 1040 ez form Form 1099-DIV, General Information, Form 1099-DIV. 1040 ez form , Form 1099-DIV. 1040 ez form , File Form 1099-DIV with the IRS. 1040 ez form Form 1099-INT, General Information, Form 1099-INT. 1040 ez form , Form 1099-INT for U. 1040 ez form S. 1040 ez form savings bond interest. 1040 ez form , Form 1099-INT. 1040 ez form , File Form 1099-INT with the IRS. 1040 ez form , Forms 1099-INT and 1099-OID. 1040 ez form , Forms 1099-INT and 1099-OID. 1040 ez form Form 1099-MISC, Form 1099-MISC. 1040 ez form , Reporting Substitute Payments Form 1099-OID, Form 1099-OID. 1040 ez form , Form 1099-OID, Form 1099-OID. 1040 ez form , Forms 1099-INT and 1099-OID. 1040 ez form , Forms 1099-INT and 1099-OID. 1040 ez form Form 1099-S, Form 1099-S transactions. 1040 ez form , File Form 1099-B or Form 1099-S with the IRS. 1040 ez form Form 1120, Filing requirement. 1040 ez form Form 2439, Undistributed capital gains of mutual funds and REITs. 1040 ez form Form 3115, Change from method 2. 1040 ez form , Choosing To Amortize, How To Make the Mark-to-Market Election Form 4684, Ordinary loss or casualty loss. 1040 ez form Form 4797, How to report. 1040 ez form , Losses on Section 1244 (Small Business) Stock, How to report. 1040 ez form Form 4952, Form 4952 Form 6198, At-risk rules. 1040 ez form Form 6781, Form 6781. 1040 ez form , How to report. 1040 ez form , How To Report Gains and Losses (Form 6781), Section 1256 contracts and straddles. 1040 ez form Form 8275, Negligence or disregard of rules or regulations. 1040 ez form Form 8275-R, Negligence or disregard of rules or regulations. 1040 ez form Form 8582, Form 8582. 1040 ez form Form 8615, Tax on unearned income of certain children. 1040 ez form Form 8815, Form 8815. 1040 ez form , Figuring the interest part of the proceeds (Form 8815, line 6). 1040 ez form , Interest excluded under the Education Savings Bond Program. 1040 ez form Form 8824, How to report. 1040 ez form Form 8832, Clubs formed before 1997. 1040 ez form Form 8886, Reportable Transaction Disclosure Statement, Negligence or disregard of rules or regulations. 1040 ez form Form 8949 Bad debts, How to report bad debts. 1040 ez form Basis adjustment, Basis adjustment. 1040 ez form Capital Gains, Reporting Capital Gains and Losses Capital Losses, Reporting Capital Gains and Losses Cooperative, sale to certain, Sales of Stock to ESOPs or Certain Cooperatives Copyrights in musical works, Capital asset treatment for self-created musical works. 1040 ez form Employee stock ownership plan, sale to, Sales of Stock to ESOPs or Certain Cooperatives Empowerment Zone Assets, Exclusion of Gain From DC Zone Assets Exempt-interest dividends, Exempt-interest dividends on mutual fund stock. 1040 ez form Form 1099-B, Form 1099-B. 1040 ez form , Form 1099-B transactions. 1040 ez form Form 1099-CAP, Form 1099-CAP transactions. 1040 ez form Form 1099-S, Form 1099-S transactions. 1040 ez form Fractional shares, Fractional shares. 1040 ez form Gain, qualified small business stock, How to report gain. 1040 ez form How to fill in, generally, Reporting Capital Gains and Losses Long-term gains and losses, Long-term gains and losses. 1040 ez form Marked-to-market election, Mark-to-market election made. 1040 ez form Market discount bonds, Market discount bonds. 1040 ez form , Market discount bonds. 1040 ez form Musical compositions, Capital asset treatment for self-created musical works. 1040 ez form Nominees, Nominees. 1040 ez form Nonbusiness bad debt, Nonbusiness bad debt. 1040 ez form Nondividend distributions, Nondividend distributions. 1040 ez form Option, How to report. 1040 ez form Property bought at various times, Sale of property bought at various times. 1040 ez form Rollover, publicly traded securities, Rollover of Gain From Publicly Traded Securities Rollover, qualified small business stock, How to report gain. 1040 ez form Sale expenses, Sale expenses. 1040 ez form Short-term gains and losses, Short-term gains and losses. 1040 ez form Software, Stocks and Bonds Worthless securities, How to report loss. 1040 ez form Form SS-4, Identifying number. 1040 ez form Form W-8BEN, Nonresident aliens. 1040 ez form Form W-9, Certification. 1040 ez form Fractional shares, Fractional shares. 1040 ez form , Automatic investment service. 1040 ez form Free tax services, Free help with your tax return. 1040 ez form Frozen deposits, Interest income on frozen deposits. 1040 ez form , Frozen deposits. 1040 ez form Futures contracts Regulated, Regulated futures contract. 1040 ez form Securities, Securities futures contract. 1040 ez form , Securities futures contract to sell. 1040 ez form , Securities Futures Contracts Futures, commodity, Commodity Futures, Commodity futures. 1040 ez form Wash sales, Options and futures contracts. 1040 ez form G Gains on qualified small business stock, Gains on Qualified Small Business Stock Gains on sales or trades, How To Figure Gain or Loss, Gain on Sale or Trade of Depreciable Property, Property received from a related party. 1040 ez form (see also Capital gains and losses) Gifts, What's New, Income from property given to a child. 1040 ez form , Property Received as a Gift, Property received as a gift. 1040 ez form Gifts of shares, Shares received as gift. 1040 ez form Government obligations, Government obligations. 1040 ez form H Hedging transactions, Hedging exception. 1040 ez form , Hedging Transactions, Hedging transaction. 1040 ez form Help (see Tax help) Holding period Investment property, Holding Period Replacement stock, Holding period of replacement stock. 1040 ez form Shares acquired by reinvestment, Reinvested distributions. 1040 ez form Straddles, Holding Period and Loss Treatment Rules I Income from sources outside U. 1040 ez form S. 1040 ez form , Reminders Income tax treaties (Table 1-3), Qualified Dividends Indian tribal government, Indian tribal government. 1040 ez form Individual retirement arrangements (IRAs) Interest income, Individual retirement arrangements (IRAs). 1040 ez form Inflation-indexed debt instruments, Inflation-Indexed Debt Instruments, Stripped inflation-indexed debt instruments. 1040 ez form Inherited property Basis, Property Received as Inheritance Holding period, Inherited property. 1040 ez form Transfer by inheritance, Transfer by inheritance. 1040 ez form Insolvency of contractors, Insolvency of contractor. 1040 ez form Installment sales, Installment sales. 1040 ez form Insurance Borrowing on, Borrowing on insurance. 1040 ez form Dividends, interest on, Interest on insurance dividends. 1040 ez form , Dividends on insurance policies. 1040 ez form Interest option on, Interest option on insurance. 1040 ez form Life insurance companies, demutualization, Demutualization of Life Insurance Companies Life, paid to beneficiary, Insurance Prepaid premiums, Prepaid insurance premiums. 1040 ez form Single-premium life, Single-premium life insurance, endowment, and annuity contracts. 1040 ez form Trades, Insurance Policies and Annuities Veterans' dividends, interest on, Interest on VA dividends. 1040 ez form , Dividends on veterans' insurance. 1040 ez form Interest expenses Allocation of, Allocation of Interest Expense Investment interest, Investment Interest Limit on, Limit on interest deduction for market discount bonds. 1040 ez form , Limit on Deduction When to deduct, When To Deduct Investment Interest Margin accounts, Interest on margin accounts. 1040 ez form Paid in advance, Interest paid in advance. 1040 ez form Straddles, Interest expense and carrying charges on straddles. 1040 ez form Interest income, Interest Income Annuity contracts, Interest on annuity contract. 1040 ez form Bonds traded flat, Bonds traded flat. 1040 ez form Certificates of deposits, Certificates of deposit and other deferred interest accounts. 1040 ez form Condemnation awards, Interest on condemnation award. 1040 ez form Deferred interest accounts, Certificates of deposit and other deferred interest accounts. 1040 ez form Dividends on deposit or share accounts, Dividends that are actually interest. 1040 ez form Frozen deposits, Interest income on frozen deposits. 1040 ez form , Frozen deposits. 1040 ez form Gift for opening account, Gift for opening account. 1040 ez form Individual retirement arrangements (IRAs), Individual retirement arrangements (IRAs). 1040 ez form Installment sale payments, Installment sale payments. 1040 ez form Insurance dividends, Interest on insurance dividends. 1040 ez form Money market funds, Money market funds. 1040 ez form Nominee distributions, Nominees. 1040 ez form Prepaid insurance premiums, Prepaid insurance premiums. 1040 ez form Reporting, When To Report Interest Income, Penalty on early withdrawal of savings. 1040 ez form Seller-financed mortgage, Form 1040A. 1040 ez form , Interest on seller-financed mortgage. 1040 ez form Tax refunds, Interest on tax refunds. 1040 ez form Tax-exempt, Tax-Exempt Interest, Reporting tax-exempt interest. 1040 ez form Taxable, Taxable Interest — General, Bonds traded flat. 1040 ez form , Taxation of interest. 1040 ez form , Taxable Interest U. 1040 ez form S. 1040 ez form savings bonds, person responsible for tax (Table 1-2), Table 1-2. 1040 ez form Who Pays the Tax on U. 1040 ez form S. 1040 ez form Savings Bond Interest Underreported, Underreported interest and dividends. 1040 ez form Unstated, Unstated interest. 1040 ez form Usurious interest, Usurious interest. 1040 ez form VA insurance dividends, Interest on VA dividends. 1040 ez form Investment clubs, Investment Clubs, Filing requirement. 1040 ez form Investment counsel and advice, Investment counsel and advice. 1040 ez form Investment expenses, Investment Expenses Allocated, Allocated investment expenses. 1040 ez form At-risk rules, At-risk rules. 1040 ez form Deductible, Expenses of Producing Income Interest, Investment interest deducted. 1040 ez form Limits on deductions, Limits on Deductions Nondeductible, Nondeductible Expenses Pass-through entities, Investment expenses from pass-through entities. 1040 ez form Reporting requirements, How To Report Investment Expenses Investment income, Investment Income Children, Tax on unearned income of certain children. 1040 ez form , Investment income of child reported on parent's return. 1040 ez form General Information, General Information Net income, Net Investment Income Records to keep, General Information Reporting of (Table 1-1), Table 1-1. 1040 ez form Where To Report Common Types of Investment Income Investment property, Investment property. 1040 ez form Basis, Basis of Investment Property Definition, Investment property. 1040 ez form Gain or loss treatment, Investment property. 1040 ez form Gift, received as, Property Received as a Gift Holding period, Holding Period Liquidation, received in, Investment property received in liquidation. 1040 ez form Nontaxable trades, received in, Property Received in Nontaxable Trades Sales and trades, Sales and Trades of Investment Property Services, received for, Property Received for Services Spouse, received from, Property Received From Your Spouse Taxable trades, received in, Property Received in Taxable Trades J Joint accounts, Joint accounts. 1040 ez form Joint and separate returns, Joint return. 1040 ez form , Joint and separate returns. 1040 ez form L Life insurance companies demutualization, Demutualization of Life Insurance Companies Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Basis of property received, Basis of property received. 1040 ez form Reporting requirements, How to report. 1040 ez form Liquidating distributions, Liquidating Distributions, Investment property received in liquidation. 1040 ez form Listed options, Listed option. 1040 ez form Load charges, Commissions and load charges. 1040 ez form Loans Below-market, Below-Market Loans, Effective dates. 1040 ez form Gift and demand, Gift and demand loans. 1040 ez form Guarantees, Loan guarantees. 1040 ez form Term, Term loans. 1040 ez form Local government obligations (see State or local government obligations) Long-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses. 1040 ez form Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). 1040 ez form Losses on sales or trades, Property received from a related party. 1040 ez form (see also Capital gains and losses) Amount calculation, How To Figure Gain or Loss Carryback election, Loss carryback election. 1040 ez form , Loss carryback election. 1040 ez form Mutual fund or REIT stock held 6 months or less, Loss on mutual fund or REIT stock held 6 months or less. 1040 ez form Passive activities, Passive activity losses. 1040 ez form , Passive activity losses. 1040 ez form , Passive activity losses and credits. 1040 ez form , Losses from passive activities. 1040 ez form Related parties, Losses on Sales or Trades of Property Section 1244 (small business) stock, Losses on Section 1244 (Small Business) Stock Small business investment company stock, Losses on Small Business Investment Company Stock Wash sales, Coordination of Loss Deferral Rules and Wash Sale Rules M Mark-to-market election, Mark-to-market election made. 1040 ez form Marked-to-market rules, Marked-to-Market Rules, Mark-to-market election made. 1040 ez form Market discount bonds, Market discount. 1040 ez form , Market Discount Bonds, Partial principal payments. 1040 ez form , Limit on interest deduction for market discount bonds. 1040 ez form , Market discount on bonds. 1040 ez form , Market discount bonds. 1040 ez form , Market discount bonds. 1040 ez form Accrued market discount, Accrued market discount. 1040 ez form Maximum rate of capital gains (Table 4-4), Table 4-4. 1040 ez form What Is Your Maximum Capital Gain Rate? Mechanics' and suppliers' liens, Mechanics' and suppliers' liens. 1040 ez form Meetings, expenses of attending, Stockholders' meetings. 1040 ez form Missing children, photographs of, Reminders Mixed straddles, Mixed straddles. 1040 ez form , Mixed straddles. 1040 ez form Money market funds, Money Market Funds Interest income, Money market funds. 1040 ez form Mortgages Revenue bonds, Mortgage revenue bonds. 1040 ez form Secondary liability on home, Secondary liability on home mortgage. 1040 ez form Seller-financed, Interest on seller-financed mortgage. 1040 ez form Municipal bonds, State or Local Government Obligations, Reporting tax-exempt interest. 1040 ez form , Tax-exempt state and local government bonds. 1040 ez form (see also State or local government obligations) Mutual funds, Capital Gain Distributions, Other income (nonpassive income). 1040 ez form , Choosing to include net capital gain. 1040 ez form , Including mutual fund or REMIC expenses in income. 1040 ez form , Shares in a mutual fund or REIT. 1040 ez form , Special Rules for Mutual Funds, Loss on mutual fund or REIT stock held 6 months or less. 1040 ez form Individual retirement arrangements (IRAs), Qualified retirement plans and IRAs. 1040 ez form publicly offered, Publicly-offered mutual funds. 1040 ez form N Net Investment Income Tax, What's New, Net investment income tax (NIIT). 1040 ez form New York Liberty bonds, New York Liberty bonds. 1040 ez form NIIT, What's New, Net investment income tax (NIIT). 1040 ez form Nominee distributions Dividends, Nominees. 1040 ez form , Nominees. 1040 ez form Interest income, Nominees. 1040 ez form , Nominee distributions. 1040 ez form Original issue discount, Nominee. 1040 ez form Nonbusiness bad debts, Nonbusiness bad debt. 1040 ez form , Nonbusiness Bad Debts Noncapital assets, Capital Assets and Noncapital Assets Nondeductible investment expenses, Nondeductible Expenses Nondividend distributions, Nondividend Distributions Nonequity options, Nonequity option. 1040 ez form Nonqualified preferred stock, Nonqualified preferred stock. 1040 ez form Nonresident aliens Backup withholding, Nonresident aliens. 1040 ez form Nontaxable return of capital, Basis adjustment. 1040 ez form Nontaxable stock rights, Nontaxable stock rights. 1040 ez form Nontaxable trades, Nontaxable Trades, Nontaxable trades. 1040 ez form Notes Individuals, bought at discount, Notes of individuals. 1040 ez form U. 1040 ez form S. 1040 ez form Treasury (see U. 1040 ez form S. 1040 ez form Treasury bills, notes, and bonds) O Office expenses, Clerical help and office rent. 1040 ez form Options, Options Calls and puts, Puts and Calls Cash settlement, Cash-settled options. 1040 ez form , Cash settlement option. 1040 ez form Dealer equity, Dealer equity option. 1040 ez form Deep-in-the-money, Qualified covered call options and optioned stock. 1040 ez form Employee stock, Reminders Equity, Equity option. 1040 ez form Gain or loss, Options, Qualified covered call options and optioned stock. 1040 ez form Holding period, Option exercised. 1040 ez form Listed, Listed option. 1040 ez form Nonequity, Nonequity option. 1040 ez form Qualified covered call, Qualified covered call options and optioned stock. 1040 ez form Reporting requirements, How to report. 1040 ez form Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contract options. 1040 ez form Wash sales, Options and futures contracts. 1040 ez form Ordinary gains and losses, Capital or Ordinary Gain or Loss, Ordinary loss or casualty loss. 1040 ez form Original issue discount (OID), Original issue discount. 1040 ez form , Original Issue Discount (OID), Stripped tax-exempt obligations. 1040 ez form , Original issue discount (OID) on debt instruments. 1040 ez form Adjustment to, Original issue discount (OID) adjustment. 1040 ez form Reporting requirements, Exceptions to reporting OID. 1040 ez form , Form 1099-OID Rules, Applying the OID Rules P Pass-through entities Rollover of gain, Pass-through entity. 1040 ez form Passive activities Gains and losses, Passive activity losses. 1040 ez form , Passive activity losses. 1040 ez form , Passive activity losses and credits. 1040 ez form , Losses from passive activities. 1040 ez form , Passive activity gains and losses. 1040 ez form Patronage dividends, Patronage dividends. 1040 ez form Penalties Accuracy-related, Accuracy-related penalty. 1040 ez form , Accuracy-related penalties. 1040 ez form Backup withholding, Penalties. 1040 ez form Civil fraud, Civil fraud penalty. 1040 ez form Early withdrawal, Interest subject to penalty for early withdrawal. 1040 ez form , Penalty on early withdrawal of savings. 1040 ez form Failure to pay tax, Failure to pay tax. 1040 ez form Failure to supply SSN, Penalty for failure to supply SSN. 1040 ez form Substantial understatement, Substantial understatement of tax. 1040 ez form Valuation misstatement, Substantial valuation misstatement. 1040 ez form Political parties Debts owed by, Debts owed by political parties. 1040 ez form Preferred stock Nonqualified, Nonqualified preferred stock. 1040 ez form Redeemable at a premium, Preferred stock redeemable at a premium. 1040 ez form Stripped, Stripped Preferred Stock Premiums on bonds, Bond premium. 1040 ez form , Premiums on bonds. 1040 ez form Private activity bonds, Private activity bonds. 1040 ez form Public utility stock reinvestment, Public utilities. 1040 ez form Publications (see Tax help) Puts and calls, Puts and Calls Table 4-3, Table 4-3. 1040 ez form Puts and Calls Q Qualified dividends, Qualified dividends. 1040 ez form Qualified small business stock, Qualified small business stock. 1040 ez form , Qualified small business stock. 1040 ez form , Gains on Qualified Small Business Stock Gains on, Gains on Qualified Small Business Stock R Real estate investment trusts (REITs), Undistributed capital gains of mutual funds and REITs. 1040 ez form , Shares in a mutual fund or REIT. 1040 ez form , Loss on mutual fund or REIT stock held 6 months or less. 1040 ez form Real estate mortgage investment conduits (REMICs), REMICs, Expenses. 1040 ez form , Including mutual fund or REMIC expenses in income. 1040 ez form Regular interest, Regular Interest Residual interest, Residual Interest, Residual interests in a REMIC. 1040 ez form Recordkeeping requirements Education Savings Bond Program, Education Savings Bond Program Investment income, General Information Small business stock, Losses on Section 1244 (Small Business) Stock Redemption of stock, Redemption of stock. 1040 ez form Redemption or retirement of bonds, Redemption or retirement of bonds. 1040 ez form Regulated futures contract, Regulated futures contract. 1040 ez form Reinvestment rights, Commissions and load charges. 1040 ez form REITs (see Real estate investment trusts (REITs)) Related party transactions, Unpaid expenses owed to related party. 1040 ez form , Related Party Transactions, Property received from a related party. 1040 ez form Related persons, Related persons. 1040 ez form REMICs (see Real estate mortgage investment conduits (REMICs)) Reorganizations, corporate, Corporate reorganizations. 1040 ez form Reporting requirements Bad debts, How to report bad debts. 1040 ez form Bond premium amortization, How To Report Amortization Capital gains and losses, How To Report Gains and Losses (Form 6781), How to report gain. 1040 ez form , Reporting Capital Gains and Losses Dividend income, How To Report Dividend Income Exempt-interest dividends, Information reporting requirement. 1040 ez form Interest on U. 1040 ez form S. 1040 ez form savings bonds, Reporting options for cash method taxpayers. 1040 ez form , Choice to report interest each year. 1040 ez form Investment expenses, How To Report Investment Expenses Like-kind exchanges, How to report. 1040 ez form Options, How to report. 1040 ez form Original issue discount, Form 1099-OID S corporation income, deductions, and credits, Reporting S corporation income, deductions, and credits. 1040 ez form Section 1256 contracts, How To Report State or local government obligations, Information reporting requirement. 1040 ez form Straddles, Section 1256 contracts and straddles. 1040 ez form Substitute payments, Reporting Substitute Payments Tax-exempt interest income, Reporting tax-exempt interest. 1040 ez form Trades, How To Report Repossession of real property, Real property repossessed. 1040 ez form Restricted property, Restricted property. 1040 ez form Restricted stock, Dividends received on restricted stock. 1040 ez form Retirement of debt instrument, Retirement of debt instrument. 1040 ez form Return of capital (see Nondividend distributions) Revocable trust, trustee's commissions for, Trustee's commissions for revocable trust. 1040 ez form Rollover of gain from sale Securities, Rollover of Gain From Publicly Traded Securities, Rollover of Gain S S corporations, S Corporations, S corporation stock. 1040 ez form Safe deposit box, Safe deposit box rent. 1040 ez form Sales and trades of investment property, Sales and Trades of Investment Property Definition, What Is a Sale or Trade? Savings bonds (see U. 1040 ez form S. 1040 ez form savings bonds) SBIC stock (see Small business investment company stock) Scrip dividends, Scrip dividends. 1040 ez form Section 1202 gain, Section 1202 Exclusion, Gain on qualified small business stock. 1040 ez form Section 1244 stock, Losses on Section 1244 (Small Business) Stock Section 1250 gain, Unrecaptured section 1250 gain. 1040 ez form Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contracts. 1040 ez form , Section 1256 contract options. 1040 ez form , Section 1256 contracts and straddles. 1040 ez form Net gain on, Net section 1256 contracts gain. 1040 ez form Net loss on, Net section 1256 contracts loss. 1040 ez form Reporting requirements, How To Report Securities Holding period, Holding Period Installment sales, Installment sales. 1040 ez form Lost, stolen, etc. 1040 ez form , cost of replacing, Cost of replacing missing securities. 1040 ez form Rollover of gain from sale, Rollover of Gain From Publicly Traded Securities, Rollover of Gain Traders in, Special Rules for Traders in Securities Worthless, Worthless Securities, Worthless securities. 1040 ez form Securities futures contracts, Dealer securities futures contract. 1040 ez form , Securities futures contract. 1040 ez form , Securities Futures Contracts Self-employment income, Self-Employment Income Self-employment tax, Self-employment tax. 1040 ez form Seller-financed mortgages, Interest on seller-financed mortgage. 1040 ez form Short sales, Short Sales, Extraordinary dividends. 1040 ez form Adjusted basis, Short sales. 1040 ez form Expenses of, Short-sale expenses. 1040 ez form Extraordinary dividends, Extraordinary dividends. 1040 ez form Puts, Put option as short sale. 1040 ez form Small business investment company stock, Short sale. 1040 ez form Short-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses. 1040 ez form Short-term obligations, Discount on Short-Term Obligations, Choosing to include accrued discount and other interest in current income. 1040 ez form , Acquisition discount on short-term obligations. 1040 ez form , Short-term government obligations. 1040 ez form Interest deduction, limit on, Limit on interest deduction for short-term obligations. 1040 ez form Sixty/forty (60/40) rule, 60/40 rule. 1040 ez form Small business investment company stock, Losses on Small Business Investment Company Stock, SSBIC stock. 1040 ez form Reporting requirements, How to report. 1040 ez form Small business stock, Qualified small business stock. 1040 ez form , Losses on Section 1244 (Small Business) Stock, Qualified small business stock. 1040 ez form , Gains on Qualified Small Business Stock Social security number (SSN) Custodial accounts, Custodian account for your child. 1040 ez form Joint accounts, SSN for joint account. 1040 ez form Requirement to give, Social security number (SSN). 1040 ez form Specialized small business investment company stock, Specialized small business investment company stock or partnership interest. 1040 ez form , SSBIC stock. 1040 ez form Spouses Transfers between, Property Received From Your Spouse, Transfers Between Spouses (see also Related party transactions) State or local government obligations, State or Local Government Obligations, Taxable Interest Market discount bonds (see Market discount bonds) Private activity bonds, Private activity bonds. 1040 ez form Registration requirement, Registration requirement. 1040 ez form Tax-exempt interest, Tax-Exempt Interest Taxable interest, Taxable Interest Stock Basis, Basis adjustment. 1040 ez form , Basis adjustment. 1040 ez form , Basis. 1040 ez form , Stocks and Bonds, Basis of replacement stock. 1040 ez form Capital asset, Stocks, stock rights, and bonds. 1040 ez form Constructive ownership, Constructive ownership of stock. 1040 ez form Convertible, Convertible stocks and bonds. 1040 ez form Corporate, Corporate Stocks Dividends (see Dividends) Fractional shares, Fractional shares. 1040 ez form , Automatic investment service. 1040 ez form Identification, Identifying stock or bonds sold. 1040 ez form Installment sales, Installment sales. 1040 ez form Nonqualified preferred stock, Nonqualified preferred stock. 1040 ez form Options for employees, Reminders Public utility, reinvestment, Public utilities. 1040 ez form Redemption of, Redemption of stock. 1040 ez form Replacement stock, Basis of replacement stock. 1040 ez form Restricted stock, Dividends received on restricted stock. 1040 ez form Rights, Distributions of Stock and Stock Rights, Stock rights. 1040 ez form , Nontaxable stock rights. 1040 ez form S corporations, S corporation stock. 1040 ez form Sales to ESOPs or cooperatives, Sales of Stock to ESOPs or Certain Cooperatives Small business, Qualified small business stock. 1040 ez form , Qualified small business stock. 1040 ez form Specialized small business investment company, Specialized small business investment company stock or partnership interest. 1040 ez form Splits, Stock splits. 1040 ez form Straddles (see Straddles) Stripped preferred stock, Stripped Preferred Stock Surrender of, Surrender of stock. 1040 ez form Trades, Stock for stock of the same corporation. 1040 ez form Trust instruments treated as, Certain trust instruments treated as stock. 1040 ez form Straddles, Straddles, Interest expense and carrying charges relating to mixed straddle account positions. 1040 ez form Holding period, Holding Period and Loss Treatment Rules Interest expense and carrying charges, Interest expense and carrying charges on straddles. 1040 ez form Loss deferral rules, Loss Deferral Rules Mixed, Mixed straddles. 1040 ez form , Mixed straddles. 1040 ez form , Mixed Straddle Elections Reporting requirements, Section 1256 contracts and straddles. 1040 ez form Stripped bonds and coupons, Stripped bonds or coupons. 1040 ez form , Stripped Bonds and Coupons, Stripped tax-exempt obligation. 1040 ez form Stripped preferred stock, Stripped Preferred Stock Substitute payments, Reporting Substitute Payments T Tables Capital gains maximum rate (Table 4-4), Table 4-4. 1040 ez form What Is Your Maximum Capital Gain Rate? Income tax treaties (Table 1-3), Qualified Dividends Investment income, reporting of (Table 1-1), Table 1-1. 1040 ez form Where To Report Common Types of Investment Income Puts and calls (Table 4-3), Table 4-3. 1040 ez form Puts and Calls U. 1040 ez form S. 1040 ez form savings bonds, person responsible for tax (Table 1-2), Table 1-2. 1040 ez form Who Pays the Tax on U. 1040 ez form S. 1040 ez form Savings Bond Interest Tax credit bonds, Tax credit bonds. 1040 ez form Tax help, How To Get Tax Help Tax rates, What's New Capital gain and losses, Capital Gain Tax Rates Tax refunds Interest on, Interest on tax refunds. 1040 ez form Tax shelters, Tax Shelters and Other Reportable Transactions, Whether To Invest Penalties, Penalties Reporting requirements, Investor Reporting Rules to curb abuse, Rules To Curb Abusive Tax Shelters Tax-exempt bonds, Tax-exempt state and local government bonds. 1040 ez form Tax-exempt income Expenses of, Tax-exempt income. 1040 ez form Interest, Tax-Exempt Interest, Reporting tax-exempt interest. 1040 ez form Tax-exempt obligations, Tax-Exempt Interest, Stripped tax-exempt obligations. 1040 ez form , Discounted tax-exempt obligations. 1040 ez form Taxable income, expenses of, Expenses for both tax-exempt and taxable income. 1040 ez form Taxes State and local transfer, State and local transfer taxes. 1040 ez form State income, State income taxes. 1040 ez form Term loans, Term loans. 1040 ez form Trade or business, Passive activity. 1040 ez form Traders in securities, Special Rules for Traders in Securities Trades Insurance, Insurance Policies and Annuities Investment property, Sales and Trades of Investment Property Like-kind, Like-Kind Exchanges, Like-Kind Exchanges Nontaxable, Property Received in Nontaxable Trades, Nontaxable Trades, Nontaxable trades. 1040 ez form Reporting requirements, How To Report Stock, Stock for stock of the same corporation. 1040 ez form Taxable, Property Received in Taxable Trades U. 1040 ez form S. 1040 ez form Treasury notes or bonds, U. 1040 ez form S. 1040 ez form Treasury Notes or Bonds Treasury bills, notes, and bonds (see U. 1040 ez form S. 1040 ez form Treasury bills, notes, and bonds) Treasury inflation-indexed securities, Inflation-Indexed Debt Instruments Treasury inflation-protected securities (TIPS), Treasury inflation-protected securities (TIPS). 1040 ez form , Inflation-Indexed Debt Instruments Treaties, income tax (Table 1-3), Qualified Dividends Trust income received by beneficiary, Beneficiary of an estate or trust. 1040 ez form Trustee's commission for revocable trust, Trustee's commissions for revocable trust. 1040 ez form U U. 1040 ez form S. 1040 ez form savings bonds, U. 1040 ez form S. 1040 ez form obligations. 1040 ez form , U. 1040 ez form S. 1040 ez form Savings Bonds Reporting interest on, U. 1040 ez form S. 1040 ez form obligations. 1040 ez form , U. 1040 ez form S. 1040 ez form Savings Bonds Retirement or profit-sharing plan, distributed from, Savings bonds distributed from a retirement or profit-sharing plan. 1040 ez form Worksheet, Worksheet for savings bonds distributed from a retirement or profit-sharing plan. 1040 ez form Tax, responsible person (Table 1-2), Table 1-2. 1040 ez form Who Pays the Tax on U. 1040 ez form S. 1040 ez form Savings Bond Interest U. 1040 ez form S. 1040 ez form Treasury bills, notes, and bonds, U. 1040 ez form S. 1040 ez form obligations. 1040 ez form , U. 1040 ez form S. 1040 ez form Treasury Bills, Notes, and Bonds, U. 1040 ez form S. 1040 ez form Treasury Notes or Bonds, U. 1040 ez form S. 1040 ez form Treasury notes and bonds. 1040 ez form Undistributed capital gains, Undistributed capital gains. 1040 ez form Usurious interest, Usurious interest. 1040 ez form V Veterans' insurance Dividends on, Dividends on veterans' insurance. 1040 ez form W Warrants, Warrants. 1040 ez form Wash sales, Wash Sales, Securities Futures Contracts Holding period, Wash sales. 1040 ez form Loss deferral rules, straddles, Coordination of Loss Deferral Rules and Wash Sale Rules Withholding, backup, Backup withholding. 1040 ez form Worksheets Capital loss carryover, Worksheet 4-1. 1040 ez form Capital Loss Carryover Worksheet Worthless securities, Worthless Securities, Worthless securities. 1040 ez form Prev  Up     Home   More Online Publications
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Letter 3127C Frequently Asked Questions (FAQs)

What is the letter telling me?

This letter is confirming your oral or written request to make a change to your current Installment Agreement. The change can be payment amount, payment date or adding an additional liability to the agreement. The letter explains the necessary fees charged for this service.

What do I have to do?

Follow the instructions in the letter and make the change on the date provided.

How much time do I have?

The letter tells you when the change takes place.

What happens if I don't take any action?

You must continue to make your installment payments as the letter directs.

Who should I contact?

If you have any questions you may call the toll free number provided in the letter. The person who answers will assist you.

What if I don't agree or have already taken corrective action?

If you don't agree with the installment terms, you should contact us immediately. If you have already taken corrective action, you should receive a monthly reminder notice.

Page Last Reviewed or Updated: 03-Feb-2014

The 1040 Ez Form

1040 ez form Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. 1040 ez form Gross monthly rate. 1040 ez form Your cost. 1040 ez form Choosing a survivor annuity after retirement. 1040 ez form Canceling a survivor annuity after retirement. 1040 ez form Annuity starting date after 1986. 1040 ez form Annuity starting date before 1987. 1040 ez form Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. 1040 ez form Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. 1040 ez form The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. 1040 ez form If the refund includes only your contributions, none of the refund is taxable. 1040 ez form If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). 1040 ez form If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. 1040 ez form See Rollover Rules in Part II for information on how to make a rollover. 1040 ez form Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. 1040 ez form Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. 1040 ez form If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. 1040 ez form If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. 1040 ez form For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. 1040 ez form A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. 1040 ez form Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. 1040 ez form OPM will tell you how to make the choice. 1040 ez form The choice for no withholding remains in effect until you change it. 1040 ez form These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. 1040 ez form If you choose not to have tax withheld, or if you do not have enough tax withheld, you may have to make estimated tax payments. 1040 ez form You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. 1040 ez form Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. 1040 ez form For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. 1040 ez form Form CSA 1099R. 1040 ez form   Form CSA 1099R is mailed to you by OPM each year. 1040 ez form It will show any tax you had withheld. 1040 ez form File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. 1040 ez form    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. 1040 ez form servicesonline. 1040 ez form opm. 1040 ez form gov. 1040 ez form To log in, you will need your retirement CSA claim number and your personal identification number. 1040 ez form Choosing no withholding on payments outside the United States. 1040 ez form   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. 1040 ez form   To choose no withholding if you are a U. 1040 ez form S. 1040 ez form citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. 1040 ez form Otherwise, OPM has to withhold tax. 1040 ez form For example, OPM must withhold if you provide a U. 1040 ez form S. 1040 ez form address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. 1040 ez form S. 1040 ez form home address. 1040 ez form   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. 1040 ez form S. 1040 ez form citizen, a U. 1040 ez form S. 1040 ez form resident alien, or someone who left the United States to avoid tax. 1040 ez form But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. 1040 ez form For details, see Publication 519, U. 1040 ez form S. 1040 ez form Tax Guide for Aliens. 1040 ez form Withholding certificate. 1040 ez form   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. 1040 ez form The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. 1040 ez form If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. 1040 ez form To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. 1040 ez form C. 1040 ez form calling area must call 202-606-0500). 1040 ez form No special form is needed. 1040 ez form You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. 1040 ez form If you have TTY/TDD equipment, call 1-855–887–4957. 1040 ez form If you need a PIN, call OPM's Retirement Information Office. 1040 ez form You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. 1040 ez form servicesonline. 1040 ez form opm. 1040 ez form gov. 1040 ez form You will need your retirement CSA or CSF claim number and your PIN. 1040 ez form Withholding from certain lump-sum payments. 1040 ez form   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. 1040 ez form Tax will be withheld at a 20% rate on the interest distributed. 1040 ez form However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. 1040 ez form If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. 1040 ez form Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. 1040 ez form See Rollover Rules in Part II. 1040 ez form If you receive only your contributions, no tax will be withheld. 1040 ez form Withholding from Thrift Savings Plan payments. 1040 ez form   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. 1040 ez form The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. 1040 ez form  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. 1040 ez form By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. 1040 ez form   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. 1040 ez form The above document is also available in the “Forms & Publications” section of the TSP website at www. 1040 ez form tsp. 1040 ez form gov. 1040 ez form Estimated tax. 1040 ez form   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). 1040 ez form The return must cover all 12 months. 1040 ez form   You do not have to pay estimated tax for 2014 if you were a U. 1040 ez form S. 1040 ez form citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. 1040 ez form   Publication 505 contains information that you can use to help you figure your estimated tax payments. 1040 ez form Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. 1040 ez form The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. 1040 ez form Children. 1040 ez form   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. 1040 ez form   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. 1040 ez form Form CSF 1099R. 1040 ez form   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. 1040 ez form It will show the total amount of the annuity you received in the past year. 1040 ez form It also should show, separately, the survivor annuity for a child or children. 1040 ez form Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. 1040 ez form   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. 1040 ez form    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. 1040 ez form servicesonline. 1040 ez form opm. 1040 ez form gov. 1040 ez form To log in you will need your retirement CSF claim number and personal identification number. 1040 ez form    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. 1040 ez form C. 1040 ez form calling area must call 202-606-0500). 1040 ez form You will need your CSF claim number and your social security number when you call. 1040 ez form Taxable part of annuity. 1040 ez form   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. 1040 ez form To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. 1040 ez form Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. 1040 ez form If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. 1040 ez form However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. 1040 ez form Annuity statement. 1040 ez form   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). 1040 ez form You will use this information to figure the tax-free recovery of your cost. 1040 ez form Annuity starting date. 1040 ez form   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. 1040 ez form If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. 1040 ez form Gross monthly rate. 1040 ez form   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. 1040 ez form Your cost. 1040 ez form   Your monthly annuity payment contains an amount on which you have previously paid income tax. 1040 ez form This amount represents part of your contributions to the retirement plan. 1040 ez form Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. 1040 ez form   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. 1040 ez form If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. 1040 ez form (See Lump-sum credit under Alternative Annuity Option, later. 1040 ez form )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. 1040 ez form You cannot claim an interest deduction for any interest payments. 1040 ez form You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. 1040 ez form Recovering your cost tax free. 1040 ez form   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. 1040 ez form If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. 1040 ez form If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). 1040 ez form If your annuity starting date is after November 18, 1996, you must use the Simplified Method. 1040 ez form   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). 1040 ez form The tax-free part is a fixed dollar amount. 1040 ez form It remains the same, even if your annuity is increased. 1040 ez form Generally, this rule applies as long as you receive your annuity. 1040 ez form However, see Exclusion limit , later. 1040 ez form Choosing a survivor annuity after retirement. 1040 ez form    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. 1040 ez form   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. 1040 ez form To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. 1040 ez form Figure the expected return as of the date the reduced annuity begins. 1040 ez form For details on the General Rule, see Publication 939. 1040 ez form Canceling a survivor annuity after retirement. 1040 ez form   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. 1040 ez form The increased annuity does not change the cost recovery you figured at the annuity starting date. 1040 ez form The tax-free part of each annuity payment remains the same. 1040 ez form    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. 1040 ez form C. 1040 ez form calling area must call 202-606-0500). 1040 ez form Exclusion limit. 1040 ez form   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. 1040 ez form Annuity starting date after 1986. 1040 ez form   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. 1040 ez form Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. 1040 ez form Example. 1040 ez form Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. 1040 ez form If your cost is $12,000, the exclusion ends after 10 years (120 months). 1040 ez form Thereafter, your entire annuity is generally fully taxable. 1040 ez form Annuity starting date before 1987. 1040 ez form   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. 1040 ez form If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. 1040 ez form The total exclusion may be more than your cost. 1040 ez form Deduction of unrecovered cost. 1040 ez form   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. 1040 ez form The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). 1040 ez form If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. 1040 ez form Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. 1040 ez form (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. 1040 ez form ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. 1040 ez form The Simplified Method does not apply if your annuity starting date is before July 2, 1986. 1040 ez form Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. 1040 ez form This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 1040 ez form If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. 1040 ez form Worksheet A. 1040 ez form   Use Worksheet A. 1040 ez form Simplified Method (near the end of this publication), to figure your taxable annuity. 1040 ez form Be sure to keep the completed worksheet. 1040 ez form It will help you figure your taxable amounts for later years. 1040 ez form Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. 1040 ez form However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. 1040 ez form Line 2. 1040 ez form   See Your cost , earlier, for an explanation of your cost in the plan. 1040 ez form If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. 1040 ez form Line 3. 1040 ez form   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. 1040 ez form If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. 1040 ez form If your annuity starting date is before 1998, use Table 1. 1040 ez form Line 6. 1040 ez form   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. 1040 ez form If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. 1040 ez form Example. 1040 ez form Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. 1040 ez form His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. 1040 ez form He must use the Simplified Method to figure the tax-free part of his annuity benefits. 1040 ez form Bill's monthly annuity benefit is $1,000. 1040 ez form He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. 1040 ez form At his annuity starting date, he was 65 and Kathy was 57. 1040 ez form Bill's completed Worksheet A is shown later. 1040 ez form To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). 1040 ez form Bill keeps a copy of the completed worksheet for his records. 1040 ez form It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. 1040 ez form Bill's tax-free monthly amount is $100. 1040 ez form (See line 4 of the worksheet. 1040 ez form ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. 1040 ez form If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. 1040 ez form If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. 1040 ez form General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. 1040 ez form If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. 1040 ez form If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. 1040 ez form Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. 1040 ez form Figuring this percentage is complex and requires the use of actuarial tables. 1040 ez form For these tables and other information about using the General Rule, see Publication 939. 1040 ez form Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. 1040 ez form Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. 1040 ez form After your cost was recovered, all payments became fully taxable. 1040 ez form You cannot use another rule to again exclude amounts from income. 1040 ez form The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. 1040 ez form Worksheet A. 1040 ez form Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. 1040 ez form 1. 1040 ez form Enter the total pension or annuity payments received this year. 1040 ez form Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 1040 ez form $ 8,000 2. 1040 ez form Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. 1040 ez form See Your cost in Part II, Rules for Retirees, earlier 2. 1040 ez form 31,000 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 1040 ez form Otherwise, go to line 3. 1040 ez form   3. 1040 ez form Enter the appropriate number from Table 1 below. 1040 ez form But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. 1040 ez form 3. 1040 ez form 310 4. 1040 ez form Divide line 2 by the number on line 3 4. 1040 ez form 100 5. 1040 ez form Multiply line 4 by the number of months for which this year's payments were made. 1040 ez form If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 1040 ez form Otherwise, go to line 6 5. 1040 ez form 800 6. 1040 ez form Enter any amounts previously recovered tax free in years after 1986. 1040 ez form This is the amount shown on line 10 of your worksheet for last year 6. 1040 ez form 0 7. 1040 ez form Subtract line 6 from line 2 7. 1040 ez form 31,000 8. 1040 ez form Enter the smaller of line 5 or line 7 8. 1040 ez form 800 9. 1040 ez form Taxable amount for year. 1040 ez form Subtract line 8 from line 1. 1040 ez form Enter the result, but not less than zero. 1040 ez form Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. 1040 ez form If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. 1040 ez form If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. 1040 ez form If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. 1040 ez form $7,200 10. 1040 ez form Was your annuity starting date before 1987?   Yes. 1040 ez form Do not complete the rest of this worksheet. 1040 ez form    No. 1040 ez form Add lines 6 and 8. 1040 ez form This is the amount you have recovered tax free through 2013. 1040 ez form You will need this number if you need to fill out this worksheet next year 10. 1040 ez form 800 11. 1040 ez form Balance of cost to be recovered. 1040 ez form Subtract line 10 from line 2. 1040 ez form If zero, you will not have to complete this worksheet next year. 1040 ez form The payments you receive next year will generally be fully taxable 11. 1040 ez form $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. 1040 ez form Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. 1040 ez form If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. 1040 ez form You are eligible to make this choice if you meet all of the following requirements. 1040 ez form You are retiring, but not on disability. 1040 ez form You have a life-threatening illness or other critical medical condition. 1040 ez form You do not have a former spouse entitled to court ordered benefits based on your service. 1040 ez form If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. 1040 ez form Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. 1040 ez form The tax-free part represents part of your cost. 1040 ez form The taxable part represents part of the earnings on your annuity contract. 1040 ez form Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. 1040 ez form Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. 1040 ez form Your taxable amount may therefore be more than the lump-sum payment you receive. 1040 ez form You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. 1040 ez form If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. 1040 ez form See Rollover Rules , later, for information on how to make a rollover. 1040 ez form OPM can make a direct rollover only up to the amount of the lump-sum payment. 1040 ez form Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. 1040 ez form The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. 1040 ez form It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. 1040 ez form For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. 1040 ez form Worksheet B. 1040 ez form   Use Worksheet B. 1040 ez form Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. 1040 ez form Be sure to keep the completed worksheet for your records. 1040 ez form   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. 1040 ez form Lump-sum credit. 1040 ez form   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). 1040 ez form However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. 1040 ez form Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. 1040 ez form Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. 1040 ez form You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. 1040 ez form Present value of your annuity contract. 1040 ez form   The present value of your annuity contract is figured using actuarial tables provided by the IRS. 1040 ez form If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. 1040 ez form Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. 1040 ez form , NW Washington, DC 20224-0002 Example. 1040 ez form David Brown retired from the federal government in 2013, one month after his 55th birthday. 1040 ez form He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. 1040 ez form The present value of his annuity contract was $155,000. 1040 ez form The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. 1040 ez form The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. 1040 ez form See Reduced Annuity , later. 1040 ez form Worksheet B. 1040 ez form Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . 1040 ez form  1. 1040 ez form Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. 1040 ez form $ 31,000 2. 1040 ez form Enter the present value of your annuity contract 2. 1040 ez form 155,000 3. 1040 ez form Divide line 1 by line 2 3. 1040 ez form . 1040 ez form 20 4. 1040 ez form Tax-free amount. 1040 ez form Multiply line 1 by line 3. 1040 ez form (Caution: Do not include this amount on line 6 of Worksheet A in this publication. 1040 ez form ) 4. 1040 ez form $6,200 5. 1040 ez form Taxable amount (net cost in the plan). 1040 ez form Subtract line 4 from line 1. 1040 ez form Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 1040 ez form Also, enter this amount on line 2 of Worksheet A in this publication. 1040 ez form 5. 1040 ez form $24,800   Lump-sum payment in installments. 1040 ez form   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. 1040 ez form You will receive the first installment after you make the choice upon retirement. 1040 ez form The second installment will be paid to you, with interest, in the next calendar year. 1040 ez form (Exceptions to the installment rule are provided for cases of critical medical need. 1040 ez form )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. 1040 ez form If the payment has a tax-free part, you must treat the taxable part as received first. 1040 ez form How to report. 1040 ez form   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 1040 ez form Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. 1040 ez form    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. 1040 ez form Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. 1040 ez form These annuity payments each will have a tax-free and a taxable part. 1040 ez form To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). 1040 ez form For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. 1040 ez form To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. 1040 ez form Enter as your net cost on line 2 the amount from Worksheet B, line 5. 1040 ez form Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. 1040 ez form Example. 1040 ez form The facts are the same as in the example for David Brown in the preceding discussion. 1040 ez form In addition, David received 10 annuity payments in 2013 of $1,200 each. 1040 ez form Using Worksheet A, he figures the taxable part of his annuity payments. 1040 ez form He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. 1040 ez form His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). 1040 ez form He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. 1040 ez form David's filled-in Worksheet A is shown on the next page. 1040 ez form Worksheet A. 1040 ez form Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . 1040 ez form 1. 1040 ez form Enter the total pension or annuity payments received this year. 1040 ez form Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 1040 ez form $ 12,000 2. 1040 ez form Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. 1040 ez form See Your cost in Part II, Rules for Retirees, earlier 2. 1040 ez form 24,800 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 1040 ez form Otherwise, go to line 3. 1040 ez form   3. 1040 ez form Enter the appropriate number from Table 1 below. 1040 ez form But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. 1040 ez form 3. 1040 ez form 360 4. 1040 ez form Divide line 2 by the number on line 3 4. 1040 ez form 68. 1040 ez form 89 5. 1040 ez form Multiply line 4 by the number of months for which this year's payments were made. 1040 ez form If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 1040 ez form Otherwise, go to line 6 5. 1040 ez form 688. 1040 ez form 90 6. 1040 ez form Enter any amounts previously recovered tax free in years after 1986. 1040 ez form This is the amount shown on line 10 of your worksheet for last year 6. 1040 ez form 0 7. 1040 ez form Subtract line 6 from line 2 7. 1040 ez form 24,800 8. 1040 ez form Enter the smaller of line 5 or line 7 8. 1040 ez form 688. 1040 ez form 90 9. 1040 ez form Taxable amount for year. 1040 ez form Subtract line 8 from line 1. 1040 ez form Enter the result, but not less than zero. 1040 ez form Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. 1040 ez form If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. 1040 ez form If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. 1040 ez form If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. 1040 ez form $11,311. 1040 ez form 10 10. 1040 ez form Was your annuity starting date before 1987?   Yes. 1040 ez form Do not complete the rest of this worksheet. 1040 ez form    No. 1040 ez form Add lines 6 and 8. 1040 ez form This is the amount you have recovered tax free through 2013. 1040 ez form You will need this number if you need to fill out this worksheet next year 10. 1040 ez form 688. 1040 ez form 90 11. 1040 ez form Balance of cost to be recovered. 1040 ez form Subtract line 10 from line 2. 1040 ez form If zero, you will not have to complete this worksheet next year. 1040 ez form The payments you receive next year will generally be fully taxable 11. 1040 ez form $24,111. 1040 ez form 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. 1040 ez form Reemployment after choosing the alternative annuity option. 1040 ez form If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. 1040 ez form If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. 1040 ez form Annuity starting date before November 19, 1996. 1040 ez form   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. 1040 ez form Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. 1040 ez form However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. 1040 ez form Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. 1040 ez form The gift may be taxable for gift tax purposes. 1040 ez form The value of the gift is equal to the value of the annuity. 1040 ez form Joint and survivor annuity. 1040 ez form   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. 1040 ez form This will eliminate any gift tax liability with regard to that gift. 1040 ez form   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. 1040 ez form This may result in a taxable gift. 1040 ez form More information. 1040 ez form   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. 1040 ez form Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. 1040 ez form Annual leave. 1040 ez form   A payment for accrued annual leave received on retirement is a salary payment. 1040 ez form It is taxable as wages in the tax year you receive it. 1040 ez form Voluntary contributions. 1040 ez form   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. 1040 ez form They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. 1040 ez form Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. 1040 ez form See Thrift Savings Plan , later. 1040 ez form Additional annuity benefit. 1040 ez form   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. 1040 ez form This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. 1040 ez form It does not matter that you receive only one monthly check covering both benefits. 1040 ez form Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. 1040 ez form   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. 1040 ez form Refund of voluntary contributions. 1040 ez form   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. 1040 ez form If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. 1040 ez form See Rollover Rules , later. 1040 ez form The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. 1040 ez form It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. 1040 ez form For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. 1040 ez form Community property laws. 1040 ez form   State community property laws apply to your annuity. 1040 ez form These laws will affect your income tax only if you file a return separately from your spouse. 1040 ez form   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. 1040 ez form Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. 1040 ez form   At any time, you have only one domicile even though you may have more than one home. 1040 ez form Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. 1040 ez form The question of your domicile is mainly a matter of your intentions as indicated by your actions. 1040 ez form   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. 1040 ez form The division is based on your periods of service and domicile in community and noncommunity property states while you were married. 1040 ez form   For more information, see Publication 555, Community Property. 1040 ez form Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. 1040 ez form The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. 1040 ez form This amount is taxable as wages. 1040 ez form Your annuity will continue to be taxed just as it was before. 1040 ez form If you are still recovering your cost, you continue to do so. 1040 ez form If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. 1040 ez form Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. 1040 ez form A nonresident alien is an individual who is not a citizen or a resident alien of the United States. 1040 ez form Special rule for figuring your total contributions. 1040 ez form   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. 1040 ez form You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. 1040 ez form For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. 1040 ez form Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. 1040 ez form   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. 1040 ez form Limit on taxable amount. 1040 ez form   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. 1040 ez form Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. 1040 ez form The numerator of the fraction is the retiree's total U. 1040 ez form S. 1040 ez form Government basic pay, other than tax-exempt pay for services performed outside the United States. 1040 ez form The denominator is the retiree's total U. 1040 ez form S. 1040 ez form Government basic pay for all services. 1040 ez form    Basic pay includes regular pay plus any standby differential. 1040 ez form It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. 1040 ez form   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. 1040 ez form (For an annuity, first complete Worksheet A in this publication. 1040 ez form ) Worksheet C. 1040 ez form Limited Taxable Amount for Nonresident Alien 1. 1040 ez form Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. 1040 ez form   2. 1040 ez form Enter the total U. 1040 ez form S. 1040 ez form Government basic pay other than tax-exempt pay for services performed outside the United States 2. 1040 ez form   3. 1040 ez form Enter the total U. 1040 ez form S. 1040 ez form Government basic pay for all services 3. 1040 ez form   4. 1040 ez form Divide line 2 by line 3 4. 1040 ez form   5. 1040 ez form Limited taxable amount. 1040 ez form Multiply line 1 by line 4. 1040 ez form Enter this amount on Form 1040NR, line 17b 5. 1040 ez form   Example 1. 1040 ez form You are a nonresident alien who performed all services for the U. 1040 ez form S. 1040 ez form Government abroad as a nonresident alien. 1040 ez form You retired and began to receive a monthly annuity of $200. 1040 ez form Your total basic pay for all services for the U. 1040 ez form S. 1040 ez form Government was $100,000. 1040 ez form All of your basic pay was tax exempt because it was not U. 1040 ez form S. 1040 ez form source income. 1040 ez form The taxable amount of your annuity using Worksheet A in this publication is $720. 1040 ez form You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. 1040 ez form Worksheet C. 1040 ez form Limited Taxable Amount for Nonresident Alien — Example 1 1. 1040 ez form Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. 1040 ez form $ 720 2. 1040 ez form Enter the total U. 1040 ez form S. 1040 ez form Government basic pay other than tax-exempt pay for services performed outside the United States 2. 1040 ez form 0 3. 1040 ez form Enter the total U. 1040 ez form S. 1040 ez form Government basic pay for all services 3. 1040 ez form 100,000 4. 1040 ez form Divide line 2 by line 3 4. 1040 ez form 0 5. 1040 ez form Limited taxable amount. 1040 ez form Multiply line 1 by line 4. 1040 ez form Enter this amount on Form 1040NR, line 17b 5. 1040 ez form 0 Example 2. 1040 ez form You are a nonresident alien who performed services for the U. 1040 ez form S. 1040 ez form Government as a nonresident alien both within the United States and abroad. 1040 ez form You retired and began to receive a monthly annuity of $240. 1040 ez form Your total basic pay for your services for the U. 1040 ez form S. 1040 ez form Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. 1040 ez form The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. 1040 ez form S. 1040 ez form source income. 1040 ez form The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. 1040 ez form You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. 1040 ez form Worksheet C. 1040 ez form Limited Taxable Amount for Nonresident Alien — Example 2 1. 1040 ez form Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. 1040 ez form $ 1,980 2. 1040 ez form Enter the total U. 1040 ez form S. 1040 ez form Government basic pay other than tax-exempt pay for services performed outside the United States 2. 1040 ez form 40,000 3. 1040 ez form Enter the total U. 1040 ez form S. 1040 ez form Government basic pay for all services 3. 1040 ez form 120,000 4. 1040 ez form Divide line 2 by line 3 4. 1040 ez form . 1040 ez form 333 5. 1040 ez form Limited taxable amount. 1040 ez form Multiply line 1 by line 4. 1040 ez form Enter this amount on Form 1040NR, line 17b 5. 1040 ez form 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. 1040 ez form (However, see Roth TSP balance and Uniformed services TSP accounts, next. 1040 ez form ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. 1040 ez form The way that you withdraw your account balance determines when you must pay the tax. 1040 ez form Roth TSP balance. 1040 ez form   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. 1040 ez form This means Roth TSP contributions are included in your income. 1040 ez form The contribution limits are the same as the traditional TSP. 1040 ez form You can elect to have part or all of your TSP contributions designated as a Roth TSP. 1040 ez form Agency contributions will be part of your traditional TSP balance. 1040 ez form Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. 1040 ez form   Qualified distributions from your Roth TSP are not included in income. 1040 ez form This applies to both your cost in the account and income earned on that account. 1040 ez form A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. 1040 ez form   For more information, go to the TSP website, www. 1040 ez form tsp. 1040 ez form gov, or the TSP Service Office. 1040 ez form See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. 1040 ez form Uniformed services TSP accounts. 1040 ez form   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. 1040 ez form However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. 1040 ez form See Roth TSP balance discussed previously to get more information about Roth contributions. 1040 ez form The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. 1040 ez form You can get more information from the TSP website, www. 1040 ez form tsp. 1040 ez form gov, or the TSP Service Office. 1040 ez form Direct rollover by the TSP. 1040 ez form   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. 1040 ez form However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. 1040 ez form Also, see Rollover Rules , later. 1040 ez form Direct rollover by the TSP to a Roth IRA. 1040 ez form   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. 1040 ez form However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. 1040 ez form Also, see Rollovers to Roth IRAs for more information, later. 1040 ez form Note. 1040 ez form A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. 1040 ez form This is because you already paid tax on those contributions. 1040 ez form You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. 1040 ez form TSP annuity. 1040 ez form   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. 1040 ez form The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. 1040 ez form However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. 1040 ez form See Roth TSP balance , earlier. 1040 ez form This is because you already paid tax on those contributions. 1040 ez form Cash withdrawals. 1040 ez form   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. 1040 ez form (See Rollover Rules , later. 1040 ez form ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. 1040 ez form See Lump-Sum Distributions in Publication 575 for details. 1040 ez form However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. 1040 ez form See Roth TSP balance , earlier. 1040 ez form    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. 1040 ez form   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. 1040 ez form If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. 1040 ez form See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. 1040 ez form However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. 1040 ez form See Roth TSP balance , earlier, for a discussion of those conditions. 1040 ez form Tax on early distributions. 1040 ez form   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. 1040 ez form However, this additional tax does not apply in certain situations, including any of the following. 1040 ez form You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. 1040 ez form You choose to receive your account balance in monthly payments based on your life expectancy. 1040 ez form You are totally and permanently disabled. 1040 ez form You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). 1040 ez form The earnings may be subject to the 10% tax depending on whether you met certain conditions. 1040 ez form See Roth TSP balance , earlier. 1040 ez form   For more information, see Tax on Early Distributions in Publication 575. 1040 ez form Outstanding loan. 1040 ez form   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. 1040 ez form The distribution also may be subject to the additional 10% tax on early distributions. 1040 ez form However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. 1040 ez form See Rollover Rules , later. 1040 ez form   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. 1040 ez form However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. 1040 ez form See Roth TSP balance , earlier. 1040 ez form More information. 1040 ez form   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. 1040 ez form Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). 1040 ez form    The above documents are also available on the TSP website at www. 1040 ez form tsp. 1040 ez form gov. 1040 ez form Select “Forms & Publications. 1040 ez form ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. 1040 ez form You do not include the amount rolled over in your income, and you cannot take a deduction for it. 1040 ez form The amount rolled over is taxed later as the new program pays that amount to you. 1040 ez form If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. 1040 ez form However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. 1040 ez form To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. 1040 ez form You can also roll over a distribution from a qualified retirement plan into a Roth IRA. 1040 ez form Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. 1040 ez form See Rollovers to Roth IRAs , later, for more information. 1040 ez form Qualified retirement plan. 1040 ez form   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. 1040 ez form The CSRS, FERS, and TSP are considered qualified retirement plans. 1040 ez form Distributions eligible for rollover treatment. 1040 ez form   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. 1040 ez form You cannot roll over any part of your CSRS or FERS annuity payments. 1040 ez form   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. 1040 ez form   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. 1040 ez form However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. 1040 ez form Direct rollover option. 1040 ez form   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. 1040 ez form   There is an automatic rollover requirement for mandatory distributions. 1040 ez form A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. 1040 ez form The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. 1040 ez form You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. 1040 ez form If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. 1040 ez form No tax withheld. 1040 ez form   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. 1040 ez form However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. 1040 ez form Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. 1040 ez form Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. 1040 ez form Payment to you option. 1040 ez form   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. 1040 ez form However, the full amount is treated as distributed to you even though you actually receive only 80%. 1040 ez form You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. 1040 ez form Rollovers to Roth IRAs are generally included in income. 1040 ez form Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. 1040 ez form If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. 1040 ez form However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). 1040 ez form Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. 1040 ez form See Roth TSP balance , earlier. 1040 ez form Also, see Tax on Early Distributions in Publication 575. 1040 ez form Exception to withholding. 1040 ez form   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. 1040 ez form Partial rollovers. 1040 ez form   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. 1040 ez form See Lump-Sum Distributions in Publication 575. 1040 ez form However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. 1040 ez form Rolling over more than amount received. 1040 ez form   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). 1040 ez form Example. 1040 ez form You left government service at age 53. 1040 ez form On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you