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Free Irs Tax Filing

Free irs tax filing Publication 939 - Main Content Table of Contents General Information Taxation of Periodic PaymentsInvestment in the Contract Expected Return Computation Under the General Rule How To Use Actuarial TablesUnisex Annuity Tables Special Elections Worksheets for Determining Taxable Annuity Actuarial Tables Requesting a Ruling on Taxation of Annuity How To Get Tax HelpLow Income Taxpayer Clinics General Information Some of the terms used in this publication are defined in the following paragraphs. Free irs tax filing A pension is generally a series of payments made to you after you retire from work. Free irs tax filing Pension payments are made regularly and are for past services with an employer. Free irs tax filing An annuity is a series of payments under a contract. Free irs tax filing You can buy the contract alone or you can buy it with the help of your employer. Free irs tax filing Annuity payments are made regularly for more than one full year. Free irs tax filing Note. Free irs tax filing Distributions from pensions and annuities follow the same rules as outlined in this publication unless otherwise noted. Free irs tax filing Types of pensions and annuities. Free irs tax filing   Particular types of pensions and annuities include: Fixed period annuities. Free irs tax filing You receive definite amounts at regular intervals for a definite length of time. Free irs tax filing Annuities for a single life. Free irs tax filing You receive definite amounts at regular intervals for life. Free irs tax filing The payments end at death. Free irs tax filing Joint and survivor annuities. Free irs tax filing The first annuitant receives a definite amount at regular intervals for life. Free irs tax filing After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Free irs tax filing The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Free irs tax filing Variable annuities. Free irs tax filing You receive payments that may vary in amount for a definite length of time or for life. Free irs tax filing The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds or cost-of-living indexes. Free irs tax filing Disability pensions. Free irs tax filing You are under minimum retirement age and receive payments because you retired on disability. Free irs tax filing If, at the time of your retirement, you were permanently and totally disabled, you may be eligible for the credit for the elderly or the disabled discussed in Publication 524. Free irs tax filing If your annuity starting date is after November 18, 1996, the General Rule cannot be used for the following qualified plans. Free irs tax filing A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries. Free irs tax filing This plan must meet Internal Revenue Code requirements. Free irs tax filing It qualifies for special tax benefits, including tax deferral for employer contributions and rollover distributions. Free irs tax filing However, you must use the General Rule if you were 75 or over and the annuity payments are guaranteed for more than 5 years. Free irs tax filing A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Free irs tax filing A tax-sheltered annuity is a special annuity plan or contract purchased for an employee of a public school or tax-exempt organization. Free irs tax filing   The General Rule is used to figure the tax treatment of various types of pensions and annuities, including nonqualified employee plans. Free irs tax filing A nonqualified employee plan is an employer's plan that does not meet Internal Revenue Code requirements. Free irs tax filing It does not qualify for most of the tax benefits of a qualified plan. Free irs tax filing Annuity worksheets. Free irs tax filing   The worksheets found near the end of the text of this publication may be useful to you in figuring the taxable part of your annuity. Free irs tax filing Request for a ruling. Free irs tax filing   If you are unable to determine the income tax treatment of your pension or annuity, you may ask the Internal Revenue Service to figure the taxable part of your annuity payments. Free irs tax filing This is treated as a request for a ruling. Free irs tax filing See Requesting a Ruling on Taxation of Annuity near the end of this publication. Free irs tax filing Withholding tax and estimated tax. Free irs tax filing   Your pension or annuity is subject to federal income tax withholding unless you choose not to have tax withheld. Free irs tax filing If you choose not to have tax withheld from your pension or annuity, or if you do not have enough income tax withheld, you may have to make estimated tax payments. Free irs tax filing Taxation of Periodic Payments This section explains how the periodic payments you receive under a pension or annuity plan are taxed under the General Rule. Free irs tax filing Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Free irs tax filing These payments are also known as amounts received as an annuity. Free irs tax filing If you receive an amount from your plan that is a nonperiodic payment (amount not received as an annuity), see Taxation of Nonperiodic Payments in Publication 575. Free irs tax filing In general, you can recover your net cost of the pension or annuity tax free over the period you are to receive the payments. Free irs tax filing The amount of each payment that is more than the part that represents your net cost is taxable. Free irs tax filing Under the General Rule, the part of each annuity payment that represents your net cost is in the same proportion that your investment in the contract is to your expected return. Free irs tax filing These terms are explained in the following discussions. Free irs tax filing Investment in the Contract In figuring how much of your pension or annuity is taxable under the General Rule, you must figure your investment in the contract. Free irs tax filing First, find your net cost of the contract as of the annuity starting date (defined later). Free irs tax filing To find this amount, you must first figure the total premiums, contributions, or other amounts paid. Free irs tax filing This includes the amounts your employer contributed if you were required to include these amounts in income. Free irs tax filing It also includes amounts you actually contributed (except amounts for health and accident benefits and deductible voluntary employee contributions). Free irs tax filing From this total cost you subtract: Any refunded premiums, rebates, dividends, or unrepaid loans (any of which were not included in your income) that you received by the later of the annuity starting date or the date on which you received your first payment. Free irs tax filing Any additional premiums paid for double indemnity or disability benefits. Free irs tax filing Any other tax-free amounts you received under the contract or plan before the later of the dates in (1). Free irs tax filing The annuity starting date   is the later of the first day of the first period for which you receive payment under the contract or the date on which the obligation under the contract becomes fixed. Free irs tax filing Example. Free irs tax filing On January 1 you completed all your payments required under an annuity contract providing for monthly payments starting on August 1, for the period beginning July 1. Free irs tax filing The annuity starting date is July 1. Free irs tax filing This is the date you use in figuring your investment in the contract and your expected return (discussed later). Free irs tax filing Adjustments If any of the following items apply, adjust (add or subtract) your total cost to find your net cost. Free irs tax filing Foreign employment. Free irs tax filing   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. Free irs tax filing The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (without regard to the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer on your behalf if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) if the contributions would be excludible from your gross income had they been paid directly to you. Free irs tax filing Foreign employment contributions while a nonresident alien. Free irs tax filing   In determining your cost, special rules apply if you are a U. Free irs tax filing S. Free irs tax filing citizen or resident alien who received distributions from a plan to which contributions were made while you were a nonresident alien. Free irs tax filing Your contributions and your employer's contributions are not included in your cost if the contributions: Were made based on compensation which was for services performed outside the United States which you were a nonresident alien, and Were not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if they had been paid as cash compensation when the services were performed. Free irs tax filing Death benefit exclusion. Free irs tax filing   If you are the beneficiary of a deceased employee (or former employee), who died before August 21, 1996, you may qualify for a death benefit exclusion of up to $5,000. Free irs tax filing The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion. Free irs tax filing How to adjust your total cost. Free irs tax filing   If you are eligible, treat the amount of any allowable death benefit exclusion as additional cost paid by the employee. Free irs tax filing Add it to the cost or unrecovered cost of the annuity at the annuity starting date. Free irs tax filing See Example 3 under Computation Under General Rule for an illustration of the adjustment to the cost of the contract. Free irs tax filing Net cost. Free irs tax filing   Your total cost plus certain adjustments and minus other amounts already recovered before the annuity starting date is your net cost. Free irs tax filing This is the unrecovered investment in the contract as of the annuity starting date. Free irs tax filing If your annuity starting date is after 1986, this is the maximum amount that you may recover tax free under the contract. Free irs tax filing Refund feature. Free irs tax filing   Adjustment for the value of the refund feature is only applicable when you report your pension or annuity under the General Rule. Free irs tax filing Your annuity contract has a refund feature if: The expected return ( discussed later) of an annuity depends entirely or partly on the life of one or more individuals, The contract provides that payments will be made to a beneficiary or the estate of an annuitant on or after the death of the annuitant if a stated amount or a stated number of payments has not been paid to the annuitant or annuitants before death, and The payments are a refund of the amount you paid for the annuity contract. Free irs tax filing   If your annuity has a refund feature, you must reduce your net cost of the contract by the value of the refund feature (figured using Table III or VII at the end of this publication, also see How To Use Actuarial Tables , later) to find the investment in the contract. Free irs tax filing Zero value of refund feature. Free irs tax filing   For a joint and survivor annuity, the value of the refund feature is zero if: Both annuitants are age 74 or younger, The payments are guaranteed for less than 2½ years, and The survivor's annuity is at least 50% of the first annuitant's annuity. Free irs tax filing   For a single-life annuity without survivor benefit, the value of the refund feature is zero if: The payments are guaranteed for less than 2½ years, and The annuitant is: Age 57 or younger (if using the new (unisex) annuity tables), Age 42 or younger (if male and using the old annuity tables), or Age 47 or younger (if female and using the old annuity tables). Free irs tax filing   If you do not meet these requirements, you will have to figure the value of the refund feature, as explained in the following discussion. Free irs tax filing Examples. Free irs tax filing The first example shows how to figure the value of the refund feature when there is only one beneficiary. Free irs tax filing Example 2 shows how to figure the value of the refund feature when the contract provides, in addition to a whole life annuity, one or more temporary life annuities for the lives of children. Free irs tax filing In both examples, the taxpayer elects to use Tables V through VIII. Free irs tax filing If you need the value of the refund feature for a joint and survivor annuity, write to the Internal Revenue Service as explained under Requesting a Ruling on Taxation of Annuity near the end of this publication. Free irs tax filing Example 1. Free irs tax filing At age 65, Barbara bought for $21,053 an annuity with a refund feature. Free irs tax filing She will get $100 a month for life. Free irs tax filing Barbara's contract provides that if she does not live long enough to recover the full $21,053, similar payments will be made to her surviving beneficiary until a total of $21,053 has been paid under the contract. Free irs tax filing In this case, the contract cost and the total guaranteed return are the same ($21,053). Free irs tax filing Barbara's investment in the contract is figured as follows: Net cost $21,053 Amount to be received annually $1,200   Number of years for which payment is guaranteed ($21,053 divided by $1,200) 17. Free irs tax filing 54   Rounded to nearest whole number of years 18   Percentage from Actuarial Table VII for age 65 with 18 years of guaranteed payments 15%   Value of the refund feature (rounded to the nearest dollar)—15% of $21,053 3,158 Investment in the contract, adjusted for value of refund feature $17,895       If the total guaranteed return were less than the $21,053 net cost of the contract, Barbara would apply the appropriate percentage from the tables to the lesser amount. Free irs tax filing For example, if the contract guaranteed the $100 monthly payments for 17 years to Barbara's estate or beneficiary if she were to die before receiving all the payments for that period, the total guaranteed return would be $20,400 ($100 × 12 × 17 years). Free irs tax filing In this case, the value of the refund feature would be $2,856 (14% of $20,400) and Barbara's investment in the contract would be $18,197 ($21,053 minus $2,856) instead of $17,895. Free irs tax filing Example 2. Free irs tax filing John died while still employed. Free irs tax filing His widow, Eleanor, age 48, receives $171 a month for the rest of her life. Free irs tax filing John's son, Elmer, age 9, receives $50 a month until he reaches age 18. Free irs tax filing John's contributions to the retirement fund totaled $7,559. Free irs tax filing 45, with interest on those contributions of $1,602. Free irs tax filing 53. Free irs tax filing The guarantee or total refund feature of the contract is $9,161. Free irs tax filing 98 ($7,559. Free irs tax filing 45 plus $1,602. Free irs tax filing 53). Free irs tax filing The adjustment in the investment in the contract is figured as follows: A) Expected return:*       1) Widow's expected return:         Annual annuity ($171 × 12) $2,052       Multiplied by factor from Table V         (nearest age 48) 34. Free irs tax filing 9 $71,614. Free irs tax filing 80   2) Child's expected return:         Annual annuity ($50 × 12) $600       Multiplied by factor from         Table VIII (nearest age 9         for term of 9 years) 9. Free irs tax filing 0 5,400. Free irs tax filing 00   3) Total expected return   $77,014. Free irs tax filing 80 B) Adjustment for refund feature:       1) Contributions (net cost) $7,559. Free irs tax filing 45   2) Guaranteed amount (contributions of $7,559. Free irs tax filing 45 plus interest of $1,602. Free irs tax filing 53) $9,161. Free irs tax filing 98   3) Minus: Expected return under child's (temporary life) annuity (A(2)) 5,400. Free irs tax filing 00   4) Net guaranteed amount $3,761. Free irs tax filing 98   5) Multiple from Table VII (nearest age 48 for 2 years duration (recovery of $3,761. Free irs tax filing 98 at $171 a month to nearest whole year)) 0%   6) Adjustment required for value of refund feature rounded to the nearest whole dollar  (0% × $3,761. Free irs tax filing 98, the smaller of B(3) or B(6)) 0 *Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Free irs tax filing See the discussion of expected return, later in this publication. Free irs tax filing Free IRS help. Free irs tax filing   If you need to request assistance to figure the value of the refund feature, see Requesting a Ruling on Taxation of Annuity near the end of this publication. Free irs tax filing Expected Return Your expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Free irs tax filing The following discussions explain how to figure the expected return with each type of annuity. Free irs tax filing A person's age, for purposes of figuring the expected return, is the age at the birthday nearest to the annuity starting date. Free irs tax filing Fixed period annuity. Free irs tax filing   If you will get annuity payments for a fixed number of years, without regard to your life expectancy, you must figure your expected return based on that fixed number of years. Free irs tax filing It is the total amount you will get beginning at the annuity starting date. Free irs tax filing You will receive specific periodic payments for a definite period of time, such as a fixed number of months (but not less than 13). Free irs tax filing To figure your expected return, multiply the fixed number of months for which payments are to be made by the amount of the payment specified for each period. Free irs tax filing Single life annuity. Free irs tax filing   If you are to get annuity payments for the rest of your life, find your expected return as follows. Free irs tax filing You must multiply the amount of the annual payment by a multiple based on your life expectancy as of the annuity starting date. Free irs tax filing These multiples are set out in actuarial Tables I and V near the end of this publication (see How To Use Actuarial Tables , later). Free irs tax filing   You may need to adjust these multiples if the payments are made quarterly, semiannually, or annually. Free irs tax filing See Adjustments to Tables I, II, V, VI, and VIA following Table I. Free irs tax filing Example. Free irs tax filing Henry bought an annuity contract that will give him an annuity of $500 a month for his life. Free irs tax filing If at the annuity starting date Henry's nearest birthday is 66, the expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table V, age 66 × 19. Free irs tax filing 2 Expected return $115,200 If the payments were to be made to Henry quarterly and the first payment was made one full month after the annuity starting date, Henry would adjust the 19. Free irs tax filing 2 multiple by +. Free irs tax filing 1. Free irs tax filing His expected return would then be $115,800 ($6,000 × 19. Free irs tax filing 3). Free irs tax filing Annuity for shorter of life or specified period. Free irs tax filing   With this type of annuity, you are to get annuity payments either for the rest of your life or until the end of a specified period, whichever period is shorter. Free irs tax filing To figure your expected return, multiply the amount of your annual payment by a multiple in Table IV or VIII for temporary life annuities. Free irs tax filing Find the proper multiple based on your sex (if using Table IV), your age at the annuity starting date, and the nearest whole number of years in the specified period. Free irs tax filing Example. Free irs tax filing Harriet purchased an annuity this year that will pay her $200 each month for five years or until she dies, whichever period is shorter. Free irs tax filing She was age 65 at her birthday nearest the annuity starting date. Free irs tax filing She figures the expected return as follows: Annual payment ($200 × 12 months) $2,400 Multiple shown in Table VIII, age 65, 5-year term × 4. Free irs tax filing 9 Expected return $11,760 She uses Table VIII (not Table IV) because all her contributions were made after June 30, 1986. Free irs tax filing See Special Elections, later. Free irs tax filing Joint and survivor annuities. Free irs tax filing   If you have an annuity that pays you a periodic income for life and after your death provides an identical lifetime periodic income to your spouse (or some other person), you figure the expected return based on your combined life expectancies. Free irs tax filing To figure the expected return, multiply the annual payment by a multiple in Table II or VI based on your joint life expectancies. Free irs tax filing If your payments are made quarterly, semiannually, or annually, you may need to adjust these multiples. Free irs tax filing See Adjustments to Tables I, II, V, VI, and VIA following Table I near the end of this publication. Free irs tax filing Example. Free irs tax filing John bought a joint and survivor annuity providing payments of $500 a month for his life, and, after his death, $500 a month for the remainder of his wife's life. Free irs tax filing At John's annuity starting date, his age at his nearest birthday is 70 and his wife's at her nearest birthday is 67. Free irs tax filing The expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table VI, ages 67 and 70 × 22. Free irs tax filing 0 Expected return $132,000 Different payments to survivor. Free irs tax filing   If your contract provides that payments to a survivor annuitant will be different from the amount you receive, you must use a computation which accounts for both the joint lives of the annuitants and the life of the survivor. Free irs tax filing Example 1. Free irs tax filing Gerald bought a contract providing for payments to him of $500 a month for life and, after his death, payments to his wife, Mary, of $350 a month for life. Free irs tax filing If, at the annuity starting date, Gerald's nearest birthday is 70 and Mary's is 67, the expected return under the contract is figured as follows: Combined multiple for Gerald and Mary, ages 70 and 67 (from Table VI)   22. Free irs tax filing 0 Multiple for Gerald, age 70 (from Table V)   16. Free irs tax filing 0 Difference: Multiple applicable to Mary   6. Free irs tax filing 0 Gerald's annual payment ($500 × 12) $6,000   Gerald's multiple 16. Free irs tax filing 0   Gerald's expected return   $96,000 Mary's annual payment ($350 × 12) $4,200   Mary's multiple 6. Free irs tax filing 0   Mary's expected return   25,200 Total expected return under the contract   $121,200 Example 2. Free irs tax filing Your husband died while still employed. Free irs tax filing Under the terms of his employer's retirement plan, you are entitled to get an immediate annuity of $400 a month for the rest of your life or until you remarry. Free irs tax filing Your daughters, Marie and Jean, are each entitled to immediate temporary life annuities of $150 a month until they reach age 18. Free irs tax filing You were 50 years old at the annuity starting date. Free irs tax filing Marie was 16 and Jean was 14. Free irs tax filing Using the multiples shown in Tables V and VIII at the end of this publication, the total expected return on the annuity starting date is $169,680, figured as follows: Widow, age 50 (multiple from Table V—33. Free irs tax filing 1 × $4,800 annual payment) $158,880 Marie, age 16 for 2 years duration (multiple from Table VIII—2. Free irs tax filing 0 × $1,800 annual payment) 3,600 Jean, age 14 for 4 years duration (multiple from Table VIII—4. Free irs tax filing 0 × $1,800 annual payment) 7,200 Total expected return $169,680 No computation of expected return is made based on your husband's age at the date of death because he died before the annuity starting date. Free irs tax filing Computation Under the General Rule Note. Free irs tax filing Variable annuities use a different computation for determining the exclusion amounts. Free irs tax filing See Variable annuities later. Free irs tax filing Under the General Rule, you figure the taxable part of your annuity by using the following steps: Step 1. Free irs tax filing   Figure the amount of your investment in the contract, including any adjustments for the refund feature and the death benefit exclusion, if applicable. Free irs tax filing See Death benefit exclusion , earlier. Free irs tax filing Step 2. Free irs tax filing   Figure your expected return. Free irs tax filing Step 3. Free irs tax filing   Divide Step 1 by Step 2 and round to three decimal places. Free irs tax filing This will give you the exclusion percentage. Free irs tax filing Step 4. Free irs tax filing   Multiply the exclusion percentage by the first regular periodic payment. Free irs tax filing The result is the tax-free part of each pension or annuity payment. Free irs tax filing   The tax-free part remains the same even if the total payment increases due to variation in the annuity amount such as cost of living increases, or you outlive the life expectancy factor used. Free irs tax filing However, if your annuity starting date is after 1986, the total amount of annuity income that is tax free over the years cannot exceed your net cost. Free irs tax filing   Each annuitant applies the same exclusion percentage to his or her initial payment called for in the contract. Free irs tax filing Step 5. Free irs tax filing   Multiply the tax-free part of each payment (step 4) by the number of payments received during the year. Free irs tax filing This will give you the tax-free part of the total payment for the year. Free irs tax filing    In the first year of your annuity, your first payment or part of your first payment may be for a fraction of the payment period. Free irs tax filing This fractional amount is multiplied by your exclusion percentage to get the tax-free part. Free irs tax filing Step 6. Free irs tax filing   Subtract the tax-free part from the total payment you received. Free irs tax filing The rest is the taxable part of your pension or annuity. Free irs tax filing Example 1. Free irs tax filing You purchased an annuity with an investment in the contract of $10,800. Free irs tax filing Under its terms, the annuity will pay you $100 a month for life. Free irs tax filing The multiple for your age (age 65) is 20. Free irs tax filing 0 as shown in Table V. Free irs tax filing Your expected return is $24,000 (20 × 12 × $100). Free irs tax filing Your cost of $10,800, divided by your expected return of $24,000, equals 45. Free irs tax filing 0%. Free irs tax filing This is the percentage you will not have to include in income. Free irs tax filing Each year, until your net cost is recovered, $540 (45% of $1,200) will be tax free and you will include $660 ($1,200 − $540) in your income. Free irs tax filing If you had received only six payments of $100 ($600) during the year, your exclusion would have been $270 (45% of $100 × 6 payments). Free irs tax filing Example 2. Free irs tax filing Gerald bought a joint and survivor annuity. Free irs tax filing Gerald's investment in the contract is $62,712 and the expected return is $121,200. Free irs tax filing The exclusion percentage is 51. Free irs tax filing 7% ($62,712 ÷ $121,200). Free irs tax filing Gerald will receive $500 a month ($6,000 a year). Free irs tax filing Each year, until his net cost is recovered, $3,102 (51. Free irs tax filing 7% of his total payments received of $6,000) will be tax free and $2,898 ($6,000 − $3,102) will be included in his income. Free irs tax filing If Gerald dies, his wife will receive $350 a month ($4,200 a year). Free irs tax filing If Gerald had not recovered all of his net cost before his death, his wife will use the same exclusion percentage (51. Free irs tax filing 7%). Free irs tax filing Each year, until the entire net cost is recovered, his wife will receive $2,171. Free irs tax filing 40 (51. Free irs tax filing 7% of her payments received of $4,200) tax free. Free irs tax filing She will include $2,028. Free irs tax filing 60 ($4,200 − $2,171. Free irs tax filing 40) in her income tax return. Free irs tax filing Example 3. Free irs tax filing Using the same facts as Example 2 under Different payments to survivor, you are to receive an annual annuity of $4,800 until you die or remarry. Free irs tax filing Your two daughters each receive annual annuities of $1,800 until they reach age 18. Free irs tax filing Your husband contributed $25,576 to the plan. Free irs tax filing You are eligible for the $5,000 death benefit exclusion because your husband died before August 21, 1996. Free irs tax filing Adjusted Investment in the Contract Contributions $25,576 Plus: Death benefit exclusion 5,000 Adjusted investment in the contract $30,576 The total expected return, as previously figured (in Example 2 under Different payments to survivor), is $169,680. Free irs tax filing The exclusion percentage of 18. Free irs tax filing 0% ($30,576 ÷ $169,680) applies to the annuity payments you and each of your daughters receive. Free irs tax filing Each full year $864 (18. Free irs tax filing 0% × $4,800) will be tax free to you, and you must include $3,936 in your income tax return. Free irs tax filing Each year, until age 18, $324 (18. Free irs tax filing 0% × $1,800) of each of your daughters' payments will be tax free and each must include the balance, $1,476, as income on her own income tax return. Free irs tax filing Part-year payments. Free irs tax filing   If you receive payments for only part of a year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments received during the year. Free irs tax filing   If you receive amounts during the year that represent 12 payments, one for each month in that year, and an amount that represents payments for months in a prior year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments the amounts received represent. Free irs tax filing For instance, if you received amounts during the year that represent the 12 payments for that year plus an amount that represents three payments for a prior year, multiply that amount by the 15 (12 + 3) payments received that the year. Free irs tax filing   If you received a fractional payment, follow Step 5, discussed earlier. Free irs tax filing This gives you the tax-free part of your total payment. Free irs tax filing Example. Free irs tax filing On September 28, Mary bought an annuity contract for $22,050 that will give her $125 a month for life, beginning October 30. Free irs tax filing The applicable multiple from Table V is 23. Free irs tax filing 3 (age 61). Free irs tax filing Her expected return is $34,950 ($125 × 12 × 23. Free irs tax filing 3). Free irs tax filing Mary's investment in the contract of $22,050, divided by her expected return of $34,950, equals 63. Free irs tax filing 1%. Free irs tax filing Each payment received will consist of 63. Free irs tax filing 1% return of cost and 36. Free irs tax filing 9% taxable income, until her net cost of the contract is fully recovered. Free irs tax filing During the first year, Mary received three payments of $125, or $375, of which $236. Free irs tax filing 63 (63. Free irs tax filing 1% × $375) is a return of cost. Free irs tax filing The remaining $138. Free irs tax filing 37 is included in income. Free irs tax filing Increase in annuity payments. Free irs tax filing   The tax-free amount remains the same as the amount figured at the annuity starting date, even if the payment increases. Free irs tax filing All increases in the installment payments are fully taxable. Free irs tax filing   However, if your annuity payments are scheduled to increase at a definite date in the future you must figure the expected return for that annuity using the method described in section 1. Free irs tax filing 72-5(a)(5) of the regulations. Free irs tax filing Example. Free irs tax filing Joe's wife died while she was still employed and, as her beneficiary, he began receiving an annuity of $147 per month. Free irs tax filing In figuring the taxable part, Joe elects to use Tables V through VIII. Free irs tax filing The cost of the contract was $7,938, consisting of the sum of his wife's net contributions, adjusted for any refund feature. Free irs tax filing His expected return as of the annuity starting date is $35,280 (age 65, multiple of 20. Free irs tax filing 0 × $1,764 annual payment). Free irs tax filing The exclusion percentage is $7,938 ÷ $35,280, or 22. Free irs tax filing 5%. Free irs tax filing During the year he received 11 monthly payments of $147, or $1,617. Free irs tax filing Of this amount, 22. Free irs tax filing 5% × $147 × 11 ($363. Free irs tax filing 83) is tax free as a return of cost and the balance of $1,253. Free irs tax filing 17 is taxable. Free irs tax filing Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 × $166). Free irs tax filing The tax-free part is still only 22. Free irs tax filing 5% of the annuity payments as of the annuity starting date (22. Free irs tax filing 5% × $147 × 12 = $396. Free irs tax filing 90 for a full year). Free irs tax filing The increase of $228 ($1,992 − $1,764 (12 × $147)) is fully taxable. Free irs tax filing Variable annuities. Free irs tax filing   For variable annuity payments, figure the amount of each payment that is tax free by dividing your investment in the contract (adjusted for any refund feature) by the total number of periodic payments you expect to get under the contract. Free irs tax filing   If the annuity is for a definite period, you determine the total number of payments by multiplying the number of payments to be made each year by the number of years you will receive payments. Free irs tax filing If the annuity is for life, you determine the total number of payments by using a multiple from the appropriate actuarial table. Free irs tax filing Example. Free irs tax filing Frank purchased a variable annuity at age 65. Free irs tax filing The total cost of the contract was $12,000. Free irs tax filing The annuity starting date is January 1 of the year of purchase. Free irs tax filing His annuity will be paid, starting July 1, in variable annual installments for his life. Free irs tax filing The tax-free amount of each payment, until he has recovered his cost of his contract, is: Investment in the contract $12,000 Number of expected annual payments (multiple for age 65 from Table V) 20 Tax-free amount of each payment ($12,000 ÷ 20) $600 If Frank's first payment is $920, he includes only $320 ($920 − $600) in his gross income. Free irs tax filing   If the tax-free amount for a year is more than the payments you receive in that year, you may choose, when you receive the next payment, to refigure the tax-free part. Free irs tax filing Divide the amount of the periodic tax-free part that is more than the payment you received by the remaining number of payments you expect. Free irs tax filing The result is added to the previously figured periodic tax-free part. Free irs tax filing The sum is the amount of each future payment that will be tax free. Free irs tax filing Example. Free irs tax filing Using the facts of the previous example about Frank, assume that after Frank's $920 payment, he received $500 in the following year, and $1,200 in the year after that. Free irs tax filing Frank does not pay tax on the $500 (second year) payment because $600 of each annual pension payment is tax free. Free irs tax filing Since the $500 payment is less than the $600 annual tax-free amount, he may choose to refigure his tax-free part when he receives his $1,200 (third year) payment, as follows: Amount tax free in second year $600. Free irs tax filing 00 Amount received in second year 500. Free irs tax filing 00 Difference $100. Free irs tax filing 00 Number of remaining payments after the first 2 payments (age 67, from Table V) 18. Free irs tax filing 4 Amount to be added to previously determined annual tax-free part ($100 ÷ 18. Free irs tax filing 4) $5. Free irs tax filing 43 Revised annual tax-free part for third and later years ($600 + $5. Free irs tax filing 43) $605. Free irs tax filing 43 Amount taxable in third year ($1,200 − $605. Free irs tax filing 43) $594. Free irs tax filing 57 If you choose to refigure your tax-free amount,   you must file a statement with your income tax return stating that you are refiguring the tax-free amount in accordance with the rules of section 1. Free irs tax filing 72–4(d)(3) of the Income Tax Regulations. Free irs tax filing The statement must also show the following information: The annuity starting date and your age on that date. Free irs tax filing The first day of the first period for which you received an annuity payment in the current year. Free irs tax filing Your investment in the contract as originally figured. Free irs tax filing The total of all amounts received tax free under the annuity from the annuity starting date through the first day of the first period for which you received an annuity payment in the current tax year. Free irs tax filing Exclusion Limits Your annuity starting date determines the total amount of annuity income that you can exclude from income over the years. Free irs tax filing Exclusion limited to net cost. Free irs tax filing   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a return of your cost cannot exceed your net cost (figured without any reduction for a refund feature). Free irs tax filing This is the unrecovered investment in the contract as of the annuity starting date. Free irs tax filing   If your annuity starting date is after July 1, 1986, any unrecovered net cost at your (or last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Free irs tax filing This deduction is not subject to the 2%-of-adjusted-gross-income limit. Free irs tax filing Example 1. Free irs tax filing Your annuity starting date is after 1986. Free irs tax filing Your total cost is $12,500, and your net cost is $10,000, taking into account certain adjustments. Free irs tax filing There is no refund feature. Free irs tax filing Your monthly annuity payment is $833. Free irs tax filing 33. Free irs tax filing Your exclusion ratio is 12% and you exclude $100 a month. Free irs tax filing Your exclusion ends after 100 months, when you have excluded your net cost of $10,000. Free irs tax filing Thereafter, your annuity payments are fully taxable. Free irs tax filing Example 2. Free irs tax filing The facts are the same as in Example 1, except that there is a refund feature, and you die after 5 years with no surviving annuitant. Free irs tax filing The adjustment for the refund feature is $1,000, so the investment in the contract is $9,000. Free irs tax filing The exclusion ratio is 10. Free irs tax filing 8%, and your monthly exclusion is $90. Free irs tax filing After 5 years (60 months), you have recovered tax free only $5,400 ($90 x 60). Free irs tax filing An itemized deduction for the unrecovered net cost of $4,600 ($10,000 net cost minus $5,400) may be taken on your final income tax return. Free irs tax filing Your unrecovered investment is determined without regard to the refund feature adjustment, discussed earlier, under Adjustments. Free irs tax filing Exclusion not limited to net cost. Free irs tax filing   If your annuity starting date was before 1987, you could continue to take your monthly exclusion for as long as you receive your annuity. Free irs tax filing If you choose a joint and survivor annuity, your survivor continues to take the survivor's exclusion figured as of the annuity starting date. Free irs tax filing The total exclusion may be more than your investment in the contract. Free irs tax filing How To Use Actuarial Tables In figuring, under the General Rule, the taxable part of your annuity payments that you are to get for the rest of your life (rather than for a fixed number of years), you must use one or more of the actuarial tables in this publication. Free irs tax filing Unisex Annuity Tables Effective July 1, 1986, the Internal Revenue Service adopted new annuity Tables V through VIII, in which your sex is not considered when determining the applicable factor. Free irs tax filing These tables correspond to the old Tables I through IV. Free irs tax filing In general, Tables V through VIII must be used if you made contributions to the retirement plan after June 30, 1986. Free irs tax filing If you made no contributions to the plan after June 30, 1986, generally you must use only Tables I through IV. Free irs tax filing However, if you received an annuity payment after June 30, 1986, you may elect to use Tables V through VIII (see Annuity received after June 30, 1986, later). Free irs tax filing Special Elections Although you generally must use Tables V through VIII if you made contributions to the retirement plan after June 30, 1986, and Tables I through IV if you made no contributions after June 30, 1986, you can make the following special elections to select which tables to use. Free irs tax filing Contributions made both before July 1986 and after June 1986. Free irs tax filing   If you made contributions to the retirement plan both before July 1986 and after June 1986, you may elect to use Tables I through IV for the pre-July 1986 cost of the contract, and Tables V through VIII for the post-June 1986 cost. Free irs tax filing (See the examples below. Free irs tax filing )    Making the election. Free irs tax filing Attach this statement to your income tax return for the first year in which you receive an annuity:    “I elect to apply the provisions of paragraph (d) of section 1. Free irs tax filing 72–6 of the Income Tax Regulations. Free irs tax filing ”   The statement must also include your name, address, social security number, and the amount of the pre-July 1986 investment in the contract. Free irs tax filing   If your investment in the contract includes post-June 1986 contributions to the plan, and you do not make the election to use Tables I through IV and Tables V through VIII, then you can only use Tables V through VIII in figuring the taxable part of your annuity. Free irs tax filing You must also use Tables V through VIII if you are unable or do not wish to determine the portions of your contributions which were made before July 1, 1986, and after June 30, 1986. Free irs tax filing    Advantages of election. Free irs tax filing In general, a lesser amount of each annual annuity payment is taxable if you separately figure your exclusion ratio for pre-July 1986 and post-June 1986 contributions. Free irs tax filing    If you intend to make this election, save your records that substantiate your pre-July 1986 and post-June 1986 contributions. Free irs tax filing If the death benefit exclusion applies (see discussion, earlier), you do not have to apportion it between the pre-July 1986 and the post-June 1986 investment in the contract. Free irs tax filing   The following examples illustrate the separate computations required if you elect to use Tables I through IV for your pre-July 1986 investment in the contract and Tables V through VIII for your post-June 1986 investment in the contract. Free irs tax filing Example 1. Free irs tax filing Bill, who is single, contributed $42,000 to the retirement plan and will receive an annual annuity of $24,000 for life. Free irs tax filing Payment of the $42,000 contribution is guaranteed under a refund feature. Free irs tax filing Bill is 55 years old as of the annuity starting date. Free irs tax filing For figuring the taxable part of Bill's annuity, he chose to make separate computations for his pre-July 1986 investment in the contract of $41,300, and for his post-June 1986 investment in the contract of $700. Free irs tax filing       Pre- July 1986   Post- June 1986 A. Free irs tax filing Adjustment for refund feature         1) Net cost $41,300   $700   2) Annual annuity—$24,000  ($41,300/$42,000 × $24,000) $23,600       ($700/$42,000 × $24,000)     $400   3) Guarantee under contract $41,300   $700   4) No. Free irs tax filing of years payments  guaranteed (rounded), A(3) ÷ A(2) 2   2   5) Applicable percentage from  Tables III and VII 1%   0%   6) Adjustment for value of refund  feature, A(5) × smaller of A(1)  or A(3) $413   $0 B. Free irs tax filing Investment in the contract         1) Net cost $41,300   $700   2) Minus: Amount in A(6) 413   0   3) Investment in the contract $40,887   $700 C. Free irs tax filing Expected return         1) Annual annuity receivable $24,000   $24,000   2) Multiples from Tables I and V 21. Free irs tax filing 7   28. Free irs tax filing 6   3) Expected return, C(1) × C(2) $520,800   $686,400 D. Free irs tax filing Tax-free part of annuity         1) Exclusion ratio as decimal,  B(3) ÷ C(3) . Free irs tax filing 079   . Free irs tax filing 001   2) Tax-free part, C(1) × D(1) $1,896   $24 The tax-free part of Bill's total annuity is $1,920 ($1,896 plus $24). Free irs tax filing The taxable part of his annuity is $22,080 ($24,000 minus $1,920). Free irs tax filing If the annuity starting date is after 1986, the exclusion over the years cannot exceed the net cost (figured without any reduction for a refund feature). Free irs tax filing Example 2. Free irs tax filing Al is age 62 at his nearest birthday to the annuity starting date. Free irs tax filing Al's wife is age 60 at her nearest birthday to the annuity starting date. Free irs tax filing The joint and survivor annuity pays $1,000 per month to Al for life, and $500 per month to Al's surviving wife after his death. Free irs tax filing The pre-July 1986 investment in the contract is $53,100 and the post-June 1986 investment in the contract is $7,000. Free irs tax filing Al makes the election described in Example 1 . Free irs tax filing For purposes of this example, assume the refund feature adjustment is zero. Free irs tax filing If an adjustment is required, IRS will figure the amount. Free irs tax filing See Requesting a Ruling on Taxation of Annuity near the end of this publication. Free irs tax filing       Pre-  July 1986   Post-  June 1986 A. Free irs tax filing Adjustment for refund feature         1) Net cost $53,100   $7,000   2) Annual annuity—$12,000  ($53,100/$60,100 × $12,000) $10,602       ($7,000/$60,100 × $12,000)     $1,398   3) Guaranteed under the contract $53,100   $7,000   4) Number of years guaranteed,  rounded, A(3) ÷ A(2) 5   5   5) Applicable percentages 0%   0%   6) Refund feature adjustment, A(5) × smaller of A(1) or A(3) 0   0 B. Free irs tax filing Investment in the contract         1) Net cost $53,100   $7,000   2) Refund feature adjustment 0   0   3) Investment in the contract adjusted for refund feature $53,100   $7,000 C. Free irs tax filing Expected return         1) Multiple for both annuitants from Tables II and VI 25. Free irs tax filing 4   28. Free irs tax filing 8   2) Multiple for first annuitant from Tables I and V 16. Free irs tax filing 9   22. Free irs tax filing 5   3) Multiple applicable to surviving annuitant, subtract C(2) from C(1) 8. Free irs tax filing 5   6. Free irs tax filing 3   4) Annual annuity to surviving annuitant $6,000   $6,000   5) Portion of expected return for surviving annuitant, C(4) × C(3) $51,000   $37,800   6) Annual annuity to first annuitant $12,000   $12,000   7) Plus: Portion of expected return for first annuitant, C(6) × C(2) $202,800   $270,000   8) Expected return for both annuitants, C(5) + C(7) $253,800   $307,800 D. Free irs tax filing Tax-free part of annuity         1) Exclusion ratio as a decimal, B(3) ÷ C(8) . Free irs tax filing 209   . Free irs tax filing 023   2) Retiree's tax-free part of annuity, C(6) × D(1) $2,508   $276   3) Survivor's tax-free part of annuity, C(4) × D(1) $1,254   $138 The tax-free part of Al's total annuity is $2,784 ($2,508 + $276). Free irs tax filing The taxable part of his annuity is $9,216 ($12,000 − $2,784). Free irs tax filing The exclusion over the years cannot exceed the net cost of the contract (figured without any reduction for a refund feature) if the annuity starting date is after 1986. Free irs tax filing After Al's death, his widow will apply the same exclusion percentages (20. Free irs tax filing 9% and 2. Free irs tax filing 3%) to her annual annuity of $6,000 to figure the tax-free part of her annuity. Free irs tax filing Annuity received after June 30, 1986. Free irs tax filing   If you receive an annuity payment after June 30, 1986, (regardless of your annuity starting date), you may elect to treat the entire cost of the contract as post-June 1986 cost (even if you made no post-June 1986 contributions to the plan) and use Tables V through VIII. Free irs tax filing Once made, you cannot revoke the election, which will apply to all payments during the year and in any later year. Free irs tax filing    Make the election by attaching the following statement to your income tax return. Free irs tax filing    “I elect, under section 1. Free irs tax filing 72–9 of the Income Tax Regulations, to treat my entire cost of the contract as a post-June 1986 cost of the plan. Free irs tax filing ”   The statement must also include your name, address, and social security number. Free irs tax filing   You should also indicate you are making this election if you are unable or do not wish to determine the parts of your contributions which were made before July 1, 1986, and after June 30, 1986. Free irs tax filing Disqualifying form of payment or settlement. Free irs tax filing   If your annuity starting date is after June 30, 1986, and the contract provides for a disqualifying form of payment or settlement, such as an option to receive a lump sum in full discharge of the obligation under the contract, the entire investment in the contract is treated as post-June 1986 investment in the contract. Free irs tax filing See regulations section 1. Free irs tax filing 72–6(d)(3) for additional examples of disqualifying forms of payment or settlement. Free irs tax filing You can find the Income Tax Regulations in many libraries and at Internal Revenue Service Offices. Free irs tax filing Worksheets for Determining Taxable Annuity Worksheets I and II. Free irs tax filing   Worksheets I and II follow for determining your taxable annuity under Regulations Section 1. Free irs tax filing 72–6(d)(6) Election. Free irs tax filing Worksheet I For Determining Taxable Annuity Under Regulations Section 1. Free irs tax filing 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity               Pre-July 1986   Post-June 1986 A. Free irs tax filing   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Free irs tax filing )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)   Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages* from Tables III and VII                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Free irs tax filing If not, the IRS will calculate the refund feature percentage. Free irs tax filing             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Free irs tax filing   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund feature:                   B(1) minus B(2)                             C. Free irs tax filing   Expected Return             1)   Annual Annuity:                   12 times monthly annuity**             2)   Expected return multiples from Tables I and V             3)     Expected return:                   C(1) times C(2)                             D. Free irs tax filing   Tax-Free Part of Annuity             1)     Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(3)             2)     Tax-free part of annuity:                   C(1) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Free irs tax filing     Worksheet II For Determining Taxable Annuity Under Regulations Section 1. Free irs tax filing 72-6(d)(6) Election For Joint and Survivor Annuity               Pre-July 1986   Post-June 1986 A. Free irs tax filing   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Free irs tax filing )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)     Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages*                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Free irs tax filing If not, the IRS will calculate the refund feature percentage. Free irs tax filing             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Free irs tax filing   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund future:                   B(1) minus B(2)                             C. Free irs tax filing   Expected Return             1)   Multiples for both annuitants, Tables II and VI             2)   Multiple for retiree. Free irs tax filing Tables I and VI             3)   Multiple for survivor:                   C(1) minus C(2)             4)   Annual annuity to survivor:                   12 times potential monthly rate for survivor**             5)   Expected return for survivor:                   C(3) times C(4)             6)   Annual annuity to retiree:                   12 times monthly rate for retiree**             7)   Expected return for retiree:                   C(2) times C(6)             8)   Total expected return:                   C(5) plus C(7)                             D. Free irs tax filing   Tax-Free Part of Annuity             1)   Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(8)             2)   Retiree's tax-free part of annuity:                   C(6) times D(1)             3)   Survivor's tax-free part of annuity, if surviving after death of retiree:                   C(4) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Free irs tax filing   Actuarial Tables Please click here for the text description of the image. Free irs tax filing Actuarial Tables Please click here for the text description of the image. Free irs tax filing Actuarial Tables Please click here for the text description of the image. Free irs tax filing Actuarial tables Please click here for the text description of the image. 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Free irs tax filing Actuarial tables Requesting a Ruling on Taxation of Annuity If you are a retiree, or the survivor of an employee or retiree, you may ask the Internal Revenue Service to help you determine the taxation of your annuity. Free irs tax filing If you make this request, you are asking for a ruling. Free irs tax filing User fee. Free irs tax filing   Under the law in effect at the time this publication went to print, the IRS must charge a user fee for all ruling requests. Free irs tax filing You should call the IRS for the proper fee. Free irs tax filing A request solely for the value of the refund feature is not treated as a ruling request and requires no fee. Free irs tax filing Send your request to:     Internal Revenue Service  Attention: EP Letter Rulings P. Free irs tax filing O. Free irs tax filing Box 27063 McPherson Station Washington, DC 20038 The user fee is allowed as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit. 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Free irs tax filing Check the status of your amended return using Where's My Amended Return? Go to IRS. Free irs tax filing gov and enter Where's My Amended Return? in the search box. Free irs tax filing You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free irs tax filing It can take up to 3 weeks from the date you mailed it to show up in our system. Free irs tax filing Make a payment using one of several safe and convenient electronic payment options available on IRS. Free irs tax filing gov. Free irs tax filing Select the Payment tab on the front page of IRS. Free irs tax filing gov for more information. Free irs tax filing Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Free irs tax filing Figure your income tax withholding with the IRS Withholding Calculator on IRS. Free irs tax filing gov. Free irs tax filing Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Free irs tax filing Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Free irs tax filing gov. Free irs tax filing Request an Electronic Filing PIN by going to IRS. Free irs tax filing gov and entering Electronic Filing PIN in the search box. Free irs tax filing Download forms, instructions and publications, including accessible versions for people with disabilities. Free irs tax filing Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Free irs tax filing gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Free irs tax filing An employee can answer questions about your tax account or help you set up a payment plan. 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Free irs tax filing gov and choose from a variety of options. Free irs tax filing    Phone. Free irs tax filing You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Free irs tax filing Download the free IRS2Go app from the iTunes app store or from Google Play. Free irs tax filing Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Free irs tax filing gov, or download the IRS2Go app. Free irs tax filing Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Free irs tax filing The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free irs tax filing Mos
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Understanding Your CP01S Notice

We received your Form 14039 or similar statement for your identity theft claim. We'll contact you when we finish processing your case or if we need additional information.


What you need to do

  • Continue to file your federal income tax returns as required by law.

You may want to


Answers to Common Questions

Q. Who should I contact if I have more questions about my account related to identity theft?

A. The Identity Protection Specialized Unit can assist you with questions regarding identity theft related to your account. You can call them at 1-800-908-4490. The number can also be found on your notice. For all other tax account related questions, contact the IRS help desk at 1-800-829-1040.

Where can I find more information on preventing identity theft?


Tips for next year

File your return as you normally would. If we find that someone is attempting to use your SSN for filing a tax return we will notify you and provide you with a PIN to use when filing your return.

 

 

 

Page Last Reviewed or Updated: 21-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free Irs Tax Filing

Free irs tax filing Index A Assistance (see Tax help) C Capital construction fund, Capital Construction Fund Comments, Comments and suggestions. Free irs tax filing F Free tax services, How To Get Tax Help H Help (see Tax help) M More information (see Tax help) P Publications (see Tax help) S Suggestions, Comments and suggestions. Free irs tax filing T Tax help, How To Get Tax Help Taxpayer Advocate, Contacting your Taxpayer Advocate. Free irs tax filing TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications