File Taxes 2012Free Federal And State Tax Filing 2012Form 1040x 2012Filing A 1040x Amended Tax ReturnFile 1040xH R Block Military2009 Tax Forms 10402012 Tax ReturnsE File Form 1040xHow To Amend A Tax ReturnHow To Fill Out 1040xHrblock ComFree State Tax Filing OnlineI Need To Find A Place On Line To File Back TaxesHow Do I File Last Year's Taxes 2011Amended 1040ez FormFree File 1040ez2012 Fed Income Tax TablesFree Online State Tax Filing1040 Ez Instructions 20131040ez Forms 2013Penalties For Filing Taxes Late1040ez FillableFree Tax Filing For College StudentsIrs.gov/form1040x1040ez Online FilingFile Taxes Online 1040ezUnemployed File Taxes1040ez 2012File 2012 Taxes Online FreeIrs Free E File 20122011 Form 1040ez1040ez BookletMyfreetaxes Com TucsonE File TaxesFederal Tax Form1040nr Tax Calculator2010 Federal Tax Form 1040Tax Return 2012 Form2010 Form 1040
2011 1040a Index A Acquisition indebtedness, Average acquisition indebtedness. 2011 1040a Annuity obligations, Annuity obligation. 2011 1040a By gift or bequest of mortgaged property, Exception for property acquired by gift, bequest, or devise. 2011 1040a Change in property use, Change in use of property. 2011 1040a Continued debt, Continued debt. 2011 1040a Debt modifying existing, Modifying existing debt. 2011 1040a Federal financing, Certain federal financing. 2011 1040a For performing exempt purpose, Debt incurred in performing exempt purpose. 2011 1040a Obligation to return collateral, Securities loans. 2011 1040a Property subject to mortgage or lien, Property acquired subject to mortgage or lien. 2011 1040a Real property, Real property debts of qualified organizations. 2011 1040a Advertising income, Exploitation of Exempt Activity—Advertising Sales Agricultural organization dues, Dues of Agricultural Organizations and Business Leagues Assistance (see Tax help) B Business league dues, Dues of Agricultural Organizations and Business Leagues C Churches, Churches. 2011 1040a Contributions deduction, Charitable contributions deduction. 2011 1040a Convention or trade show activity, Convention or trade show activity. 2011 1040a D Debt-financed property, Income From Debt-Financed Property Acquired in liquidation, Basis for debt-financed property acquired in corporate liquidation. 2011 1040a Dues, agricultural organizations and business leagues, Dues of Agricultural Organizations and Business Leagues E Exchange or rental of member lists, Exchange or rental of member lists. 2011 1040a Excluded trade or business activities, Excluded Trade or Business Activities Exclusions, Volunteer workforce. 2011 1040a Sponsorship, Qualified sponsorship activities. 2011 1040a Exempt function income, Exempt function income. 2011 1040a Exploitation of exempt activity Advertising income, Exploitation of Exempt Activity—Advertising Sales Exploitation of exempt functions, Exploitation of exempt functions. 2011 1040a F Form 990-T, Returns and Filing Requirements Free tax services, How to Get Tax Help H Help (see Tax help) I Income from research, Income from research. 2011 1040a L Limits, Limits. 2011 1040a M More information (see Tax help) N Net operating loss deduction, Modifications Nonrecognition of gain, Nonrecognition of gain. 2011 1040a P Publications (see Tax help) R Rents, Rents. 2011 1040a Return, Returns and Filing Requirements Royalties, Royalties. 2011 1040a S Specific deduction, Specific deduction. 2011 1040a T Tax, Organizations Subject to the Tax Alternative minimum, Alternative minimum tax. 2011 1040a Colleges and universities, Colleges and universities. 2011 1040a Deposits, Federal Tax Deposits Must be Made by Electronic Funds Transfer Estimated, Payment of Tax Organizations affected, Organizations Subject to the Tax Payment, Public Inspection Requirements of Section 501(c)(3) Organizations. 2011 1040a Rates, The Tax and Filing Requirements Return, Returns and Filing Requirements Title-holding corporations, Title-holding corporations. 2011 1040a U. 2011 1040a S. 2011 1040a instrumentalities, U. 2011 1040a S. 2011 1040a instrumentalities. 2011 1040a Tax help, How to Get Tax Help Taxpayer Advocate, Contacting your Taxpayer Advocate. 2011 1040a Title-holding corporations, Title-holding corporations. 2011 1040a TTY/TDD information, How to Get Tax Help U Unrelated business Hospital laboratory, Nonpatient laboratory testing. 2011 1040a Unrelated business income, Unrelated Business Taxable Income, Income Advertising income, Exploitation of Exempt Activity—Advertising Sales Certain trusts, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Controlled organizations, Income From Controlled Organizations Debt-financed property, Income From Debt-Financed Property Deductions, Deductions Employees beneficiary associations, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Exclusions, Exclusions Foreign organizations, Special Rules for Foreign Organizations Income from gambling activities, Legal definition. 2011 1040a Income from lending securities, Income from lending securities. 2011 1040a Modifications, Modifications Partnership income or loss, Partnership Income or Loss Products of exempt functions, Selling of products of exempt functions. 2011 1040a S corporation income, S Corporation Income or Loss S corporation income or loss, S Corporation Income or Loss Social clubs, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Veterans organizations, Special Rules for Veterans' Organizations Unrelated debt-financed income, Certain federal financing. 2011 1040a Average acquisition indebtedness, Average acquisition indebtedness. 2011 1040a Average adjusted basis, Average adjusted basis. 2011 1040a Computation, Computation of Debt-Financed Income Debt/basis percentage, Computation of debt/basis percentage. 2011 1040a Deductions, Deductions for Debt-Financed Property Gains from dispositions, Gain or loss from sale or other disposition of property. 2011 1040a Indeterminate property price, Indeterminate price. 2011 1040a Unrelated trade or business, Unrelated Trade or Business Artists facilities, Artists' facilities. 2011 1040a Book publishing, Book publishing. 2011 1040a Broadcasting rights, Broadcasting rights. 2011 1040a Business league's parking and bus services, Business league's parking and bus services. 2011 1040a Convenience of members, Convenience of members. 2011 1040a Convention or trade show, Convention or trade show activity. 2011 1040a Directory of members, Directory of members. 2011 1040a Distribution of low cost articles, Distribution of low cost articles. 2011 1040a Dual use facilities, etc. 2011 1040a , Dual use of assets or facilities. 2011 1040a Employees association sales, Employee association sales. 2011 1040a Exclusions, Excluded Trade or Business Activities Exploitation of exempt functions, Exploitation of exempt functions. 2011 1040a Gambling activities other than bingo, Gambling activities other than bingo. 2011 1040a Halfway house, Halfway house workshop. 2011 1040a Health club program, Health club program. 2011 1040a Hearing aid sales, Sales of hearing aids. 2011 1040a Hospital facilities, Hospital facilities. 2011 1040a Hospital services, Hospital services. 2011 1040a Insurance programs, Insurance programs. 2011 1040a Magazine publishing, Magazine publishing. 2011 1040a Member lists rentals, etc. 2011 1040a , Exchange or rental of member lists. 2011 1040a Membership list sales, Membership list sales. 2011 1040a Miniature golf course, Miniature golf course. 2011 1040a Museum eating facilities, Museum eating facilities. 2011 1040a Museum greeting card sales, Museum greeting card sales. 2011 1040a Pet boarding and grooming services, Pet boarding and grooming services. 2011 1040a Pole rentals, Pole rentals. 2011 1040a Public entertainment activity, Public entertainment activity. 2011 1040a Publishing legal notices, Publishing legal notices. 2011 1040a Regularly conducted, Regularly conducted. 2011 1040a Sales commissions, Sales commissions. 2011 1040a Sales of advertising space, Sales of advertising space. 2011 1040a School facilities, School facilities. 2011 1040a School handicraft shop, School handicraft shop. 2011 1040a Selling donated merchandise, Selling donated merchandise. 2011 1040a Selling endorsements, Selling endorsements. 2011 1040a Sponsoring entertainment events, Sponsoring entertainment events. 2011 1040a Substantially related, Not substantially related. 2011 1040a Trade or business defined, Trade or business. 2011 1040a Travel tour programs, Travel tour programs. 2011 1040a Volunteer workforce, Volunteer workforce. 2011 1040a Yearbook advertising, Yearbook advertising. 2011 1040a Youth residence, Youth residence. 2011 1040a Unstated trade or business Bingo games, Bingo games. 2011 1040a V Volunteer fire company, Excluded Trade or Business Activities W When to file, When to file. 2011 1040a Prev Up Home More Online Publications
Effect of Sequestration on the Alternative Minimum Tax Credit for Corporations
Pursuant to the requirements of the Balanced Budget and Emergency Deficit Reduction Act of 1985, as amended, refund payments issued to corporations claiming refundable prior year minimum tax liability, are subject to sequestration. This means that refund payments processed on or after October 1, 2013 and on or before September 30, 2014 will be reduced by the fiscal year 2014 sequestration rate of 7.2 percent, irrespective of when the original or amended tax return was received by the Service. The sequestration reduction rate will be applied unless and until a law is enacted that cancels or otherwise impacts the sequester, at which time the sequestration reduction rate is subject to change.
A corporation that can claim an additional first-year depreciation deduction under section 168(k) can choose instead to accelerate the use of its prior year minimum tax credits, treating the accelerated credits as refundable credits. Corporations making this section 168(k)(4) election and claiming a refund of prior year minimum tax credits should complete Form 8827. These corporations will be notified that a portion of their requested refund was subject to the sequester reduction.
Corporations making the section 168(k)(4) election but not claiming a refund of prior year minimum tax credits are not subject to this reduction.
Page Last Reviewed or Updated: 30-Sep-2013
The 2011 1040a
2011 1040a 3. 2011 1040a Savings Incentive Match Plans for Employees (SIMPLE) Table of Contents Introduction What Is a SIMPLE Plan?Eligible Employees How Are Contributions Made? How Much Can Be Contributed on Your Behalf?Matching contributions less than 3%. 2011 1040a Traditional IRA mistakenly moved to SIMPLE IRA. 2011 1040a When Can You Withdraw or Use Assets?Are Distributions Taxable? Introduction This chapter is for employees who need information about savings incentive match plans for employees (SIMPLE plans). 2011 1040a It explains what a SIMPLE plan is, contributions to a SIMPLE plan, and distributions from a SIMPLE plan. 2011 1040a Under a SIMPLE plan, SIMPLE retirement accounts for participating employees can be set up either as: Part of a 401(k) plan, or A plan using IRAs (SIMPLE IRA). 2011 1040a This chapter only discusses the SIMPLE plan rules that relate to SIMPLE IRAs. 2011 1040a See chapter 3 of Publication 560 for information on any special rules for SIMPLE plans that do not use IRAs. 2011 1040a If your employer maintains a SIMPLE plan, you must be notified, in writing, that you can choose the financial institution that will serve as trustee for your SIMPLE IRA and that you can roll over or transfer your SIMPLE IRA to another financial institution. 2011 1040a See Rollovers and Transfers Exception, later under When Can You Withdraw or Use Assets. 2011 1040a What Is a SIMPLE Plan? A SIMPLE plan is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. 2011 1040a See chapter 3 of Publication 560 for information on the requirements employers must satisfy to set up a SIMPLE plan. 2011 1040a A SIMPLE plan is a written agreement (salary reduction agreement) between you and your employer that allows you, if you are an eligible employee (including a self-employed individual), to choose to: Reduce your compensation (salary) by a certain percentage each pay period, and Have your employer contribute the salary reductions to a SIMPLE IRA on your behalf. 2011 1040a These contributions are called salary reduction contributions. 2011 1040a All contributions under a SIMPLE IRA plan must be made to SIMPLE IRAs, not to any other type of IRA. 2011 1040a The SIMPLE IRA can be an individual retirement account or an individual retirement annuity, described in chapter 1. 2011 1040a Contributions are made on behalf of eligible employees. 2011 1040a (See Eligible Employees below. 2011 1040a ) Contributions are also subject to various limits. 2011 1040a (See How Much Can Be Contributed on Your Behalf , later. 2011 1040a ) In addition to salary reduction contributions, your employer must make either matching contributions or nonelective contributions. 2011 1040a See How Are Contributions Made , later. 2011 1040a You may be able to claim a credit for contributions to your SIMPLE plan. 2011 1040a For more information, see chapter 4. 2011 1040a Eligible Employees You must be allowed to participate in your employer's SIMPLE plan if you: Received at least $5,000 in compensation from your employer during any 2 years prior to the current year, and Are reasonably expected to receive at least $5,000 in compensation during the calendar year for which contributions are made. 2011 1040a Self-employed individual. 2011 1040a For SIMPLE plan purposes, the term employee includes a self-employed individual who received earned income. 2011 1040a Excludable employees. 2011 1040a Your employer can exclude the following employees from participating in the SIMPLE plan. 2011 1040a Employees whose retirement benefits are covered by a collective bargaining agreement (union contract). 2011 1040a Employees who are nonresident aliens and received no earned income from sources within the United States. 2011 1040a Employees who would not have been eligible employees if an acquisition, disposition, or similar transaction had not occurred during the year. 2011 1040a Compensation. 2011 1040a For purposes of the SIMPLE plan rules, your compensation for a year generally includes the following amounts. 2011 1040a Wages, tips, and other pay from your employer that is subject to income tax withholding. 2011 1040a Deferred amounts elected under any 401(k) plans, 403(b) plans, government (section 457) plans, SEP plans, and SIMPLE plans. 2011 1040a Self-employed individual compensation. 2011 1040a For purposes of the SIMPLE plan rules, if you are self-employed, your compensation for a year is your net earnings from self-employment (Schedule SE (Form 1040), Section A, line 4, or Section B, line 6) before subtracting any contributions made to a SIMPLE IRA on your behalf. 2011 1040a For these purposes, net earnings from self-employment include services performed while claiming exemption from self-employment tax as a member of a group conscientiously opposed to social security benefits. 2011 1040a How Are Contributions Made? Contributions under a salary reduction agreement are called salary reduction contributions. 2011 1040a They are made on your behalf by your employer. 2011 1040a Your employer must also make either matching contributions or nonelective contributions. 2011 1040a Salary reduction contributions. 2011 1040a During the 60-day period before the beginning of any year, and during the 60-day period before you are eligible, you can choose salary reduction contributions expressed either as a percentage of compensation, or as a specific dollar amount (if your employer offers this choice). 2011 1040a You can choose to cancel the election at any time during the year. 2011 1040a Salary reduction contributions are also referred to as “elective deferrals. 2011 1040a ” Your employer cannot place restrictions on the contributions amount (such as by limiting the contributions percentage), except to comply with the salary reduction contributions limit, discussed under How Much Can Be Contributed on Your Behalf, later. 2011 1040a Matching contributions. 2011 1040a Unless your employer chooses to make nonelective contributions, your employer must make contributions equal to the salary reduction contributions you choose (elect), but only up to certain limits. 2011 1040a See How Much Can Be Contributed on Your Behalf below. 2011 1040a These contributions are in addition to the salary reduction contributions and must be made to the SIMPLE IRAs of all eligible employees (defined earlier) who chose salary reductions. 2011 1040a These contributions are referred to as matching contributions. 2011 1040a Matching contributions on behalf of a self-employed individual are not treated as salary reduction contributions. 2011 1040a Nonelective contributions. 2011 1040a Instead of making matching contributions, your employer may be able to choose to make nonelective contributions on behalf of all eligible employees. 2011 1040a These nonelective contributions must be made on behalf of each eligible employee who has at least $5,000 of compensation from your employer, whether or not the employee chose salary reductions. 2011 1040a One of the requirements your employer must satisfy is notifying the employees that the election was made. 2011 1040a For other requirements that your employer must satisfy, see chapter 3 of Publication 560. 2011 1040a How Much Can Be Contributed on Your Behalf? The limits on contributions to a SIMPLE IRA vary with the type of contribution that is made. 2011 1040a Salary reduction contributions limit. 2011 1040a Salary reduction contributions (employee-chosen contributions or elective deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $12,000 for 2013. 2011 1040a The limitation remains at $12,000 for 2014. 2011 1040a If you are a participant in any other employer plans during 2013 and you have elective salary reductions or deferred compensation under those plans, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $17,500 for 2013 on exclusions of salary reductions and other elective deferrals. 2011 1040a You, not your employer, are responsible for monitoring compliance with these limits. 2011 1040a Additional elective deferrals can be contributed to your SIMPLE plan if: You reached age 50 by the end of 2013, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions, such as the regular annual limit. 2011 1040a The most that can be contributed in additional elective deferrals to your SIMPLE plan is the lesser of the following two amounts. 2011 1040a $2,500 for 2013, or Your compensation for the year reduced by your other elective deferrals for the year. 2011 1040a The additional deferrals are not subject to any other contribution limit and are not taken into account in applying other contribution limits. 2011 1040a The additional deferrals are not subject to the nondiscrimination rules as long as all eligible participants are allowed to make them. 2011 1040a Matching employer contributions limit. 2011 1040a Generally, your employer must make matching contributions to your SIMPLE IRA in an amount equal to your salary reduction contributions. 2011 1040a These matching contributions cannot be more than 3% of your compensation for the calendar year. 2011 1040a See Matching contributions less than 3% below. 2011 1040a Example 1. 2011 1040a In 2013, Joshua was a participant in his employer's SIMPLE plan. 2011 1040a His compensation, before SIMPLE plan contributions, was $41,600 ($800 per week). 2011 1040a Instead of taking it all in cash, Joshua elected to have 12. 2011 1040a 5% of his weekly pay ($100) contributed to his SIMPLE IRA. 2011 1040a For the full year, Joshua's salary reduction contributions were $5,200, which is less than the $12,000 limit on these contributions. 2011 1040a Under the plan, Joshua's employer was required to make matching contributions to Joshua's SIMPLE IRA. 2011 1040a Because his employer's matching contributions must equal Joshua's salary reductions, but cannot be more than 3% of his compensation (before salary reductions) for the year, his employer's matching contribution was limited to $1,248 (3% of $41,600). 2011 1040a Example 2. 2011 1040a Assume the same facts as in Example 1 , except that Joshua's compensation for the year was $408,163 and he chose to have 2. 2011 1040a 94% of his weekly pay contributed to his SIMPLE IRA. 2011 1040a In this example, Joshua's salary reduction contributions for the year (2. 2011 1040a 94% × $408,163) were equal to the 2013 limit for salary reduction contributions ($12,000). 2011 1040a Because 3% of Joshua's compensation ($12,245) is more than the amount his employer was required to match ($12,000), his employer's matching contributions were limited to $12,000. 2011 1040a In this example, total contributions made on Joshua's behalf for the year were $24,000 ($12,000 (Joshua's contributions) + $12,000 (matching contributions)), the maximum contributions permitted under a SIMPLE IRA for 2013. 2011 1040a Matching contributions less than 3%. 2011 1040a Your employer can reduce the 3% limit on matching contributions for a calendar year, but only if: The limit is not reduced below 1%, The limit is not reduced for more than 2 years out of the 5-year period that ends with (and includes) the year for which the election is effective, and Employees are notified of the reduced limit within a reasonable period of time before the 60-day election period during which they can enter into salary reduction agreements. 2011 1040a For purposes of applying the rule in item (2) in determining whether the limit was reduced below 3% for the year, any year before the first year in which your employer (or a former employer) maintains a SIMPLE IRA plan will be treated as a year for which the limit was 3%. 2011 1040a If your employer chooses to make nonelective contributions for a year, that year also will be treated as a year for which the limit was 3%. 2011 1040a Nonelective employer contributions limit. 2011 1040a If your employer chooses to make nonelective contributions, instead of matching contributions, to each eligible employee's SIMPLE IRA, contributions must be 2% of your compensation for the entire year. 2011 1040a For 2013, only $255,000 of your compensation can be taken into account to figure the contribution limit. 2011 1040a Your employer can substitute the 2% nonelective contribution for the matching contribution for a year if both of the following requirements are met. 2011 1040a Eligible employees are notified that a 2% nonelective contribution will be made instead of a matching contribution. 2011 1040a This notice is provided within a reasonable period during which employees can enter into salary reduction agreements. 2011 1040a Example 3. 2011 1040a Assume the same facts as in Example 2 , except that Joshua's employer chose to make nonelective contributions instead of matching contributions. 2011 1040a Because his employer's nonelective contributions are limited to 2% of up to $255,000 of Joshua's compensation, his employer's contribution to Joshua's SIMPLE IRA was limited to $5,100. 2011 1040a In this example, total contributions made on Joshua's behalf for the year were $17,100 (Joshua's salary reductions of $12,000 plus his employer's contribution of $5,100). 2011 1040a Traditional IRA mistakenly moved to SIMPLE IRA. 2011 1040a If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize the amount as a contribution to another traditional IRA. 2011 1040a For more information, see Recharacterizations in chapter 1. 2011 1040a Recharacterizing employer contributions. 2011 1040a You cannot recharacterize employer contributions (including elective deferrals) under a SEP or SIMPLE plan as contributions to another IRA. 2011 1040a SEPs are discussed in chapter 2 of Publication 560. 2011 1040a SIMPLE plans are discussed in this chapter. 2011 1040a Converting from a SIMPLE IRA. 2011 1040a Generally, you can convert an amount in your SIMPLE IRA to a Roth IRA under the same rules explained in chapter 1 under Converting From Any Traditional IRA Into a Roth IRA . 2011 1040a However, you cannot convert any amount distributed from the SIMPLE IRA during the 2-year period beginning on the date you first participated in any SIMPLE IRA plan maintained by your employer. 2011 1040a When Can You Withdraw or Use Assets? Generally, the same distribution (withdrawal) rules that apply to traditional IRAs apply to SIMPLE IRAs. 2011 1040a These rules are discussed in chapter 1. 2011 1040a Your employer cannot restrict you from taking distributions from a SIMPLE IRA. 2011 1040a Are Distributions Taxable? Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. 2011 1040a If the distribution is an early distribution (discussed in chapter 1), it may be subject to the additional tax on early distributions. 2011 1040a See Additional Tax on Early Distributions, later. 2011 1040a Rollovers and Transfers Exception Generally, rollovers and trustee-to-trustee transfers are not taxable distributions. 2011 1040a Two-year rule. 2011 1040a To qualify as a tax-free rollover (or a tax-free trustee-to-trustee transfer), a rollover distribution (or a transfer) made from a SIMPLE IRA during the 2-year period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed (or transferred) to another SIMPLE IRA. 2011 1040a The 2-year period begins on the first day on which contributions made by your employer are deposited in your SIMPLE IRA. 2011 1040a After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan), or deferred compensation plan of a state or local government (section 457 plan). 2011 1040a Additional Tax on Early Distributions The additional tax on early distributions (discussed in chapter 1) applies to SIMPLE IRAs. 2011 1040a If a distribution is an early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%. 2011 1040a If a rollover distribution (or transfer) from a SIMPLE IRA does not satisfy the 2-year rule, and is otherwise an early distribution, the additional tax imposed because of the early distribution is increased from 10% to 25% of the amount distributed. 2011 1040a Prev Up Next Home More Online Publications