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H&r Block Free State

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H&r Block Free State

H&r block free state Publication 1542 - Main Content Table of Contents How To Use Per Diem Rate TablesThe Two Substantiation Methods Transition Rules Per Diem Rate Tables How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). H&r block free state How To Use Per Diem Rate Tables This section contains information about the per diem rate substantiation methods available and the choice of rates you must make for the last 3 months of the year. H&r block free state The Two Substantiation Methods The tables in this publication reflect the high-low substantiation method and the regular federal per diem rate method. H&r block free state High-low method. H&r block free state   Tables 1 and 2 in this publication list the localities that are treated under the high-low substantiation method as high-cost localities for all or part of the year. H&r block free state Table 1 lists the localities that are eligible for $233 ($65 meals and incidental expenses (M&IE)) per diem, effective October 1, 2010. H&r block free state For travel on or after October 1, 2010, all other localities within CONUS are eligible for $160 ($52 M&IE) per diem under the high-low method. H&r block free state    Table 2 lists the localities that are eligible for $242 ($65 M&IE) per diem, effective October 1, 2011. H&r block free state For travel on or after October 1, 2011, the per diem for all other localities decreases to $163 ($52 M&IE). H&r block free state Regular federal per diem rate method. H&r block free state   Tables 3 and 4 give the regular federal per diem rates published by the General Services Administration (GSA). H&r block free state Both tables include the separate rate for meals and incidental expenses (M&IE) for each locality. H&r block free state The rates listed in Table 3 are effective October 1, 2010; those in Table 4 are effective October 1, 2011. H&r block free state The standard rate for all locations within CONUS not specifically listed in Table 3 is $123 ($77 for lodging and $46 for M&IE). H&r block free state For Table 4, this rate is $123 ($77 for lodging and $46 for M&IE). H&r block free state Transition Rules The transition period covers the last 3 months of the calendar year, from the time that new rates are effective (generally October 1) through December 31. H&r block free state During this period, you generally may change to the new rates or finish out the year with the rates you had been using. H&r block free state High-low method. H&r block free state   If you use the high-low substantiation method for an employee, when new rates become effective (generally October 1) you can either continue with the rates you used for the first part of the year or change to the new rates. H&r block free state However, you must continue using the high-low method for that employee for the rest of the calendar year (through December 31). H&r block free state Also, you must use the same rates for all employees reimbursed under the high-low method during that calendar year. H&r block free state   For example, Employee A travels extensively during March and April of 2012, and you determine A's travel allowance (reimbursement) using the high-low method (Table 2). H&r block free state Employee A does not travel again until November 2012. H&r block free state For A's November trip and any others during the remainder of 2012, you may continue using the same set of rates (Table 2) or change to the new rates that generally will be effective in October. H&r block free state Assume that two of your other employees, B and C, are also reimbursed under the high-low method—your choice of rates must also apply to them. H&r block free state   For Employee A's travel on or after January 1, 2013, you must use the rates in effect for 2013, but may either continue with the high-low method or choose the regular federal per diem rate method. H&r block free state The choice of method stays in effect for the entire 2013 calendar year. H&r block free state   The new rates and localities for the high-low method are included each year in a revenue procedure that is generally published in mid- to late-September. H&r block free state You can find the revenue procedure in the weekly Internal Revenue Bulletin (IRB) on the Internet at www. H&r block free state irs. H&r block free state gov/irb. H&r block free state Federal per diem rate method. H&r block free state   New CONUS per diem rates become effective on October 1 of each year and remain in effect through September 30 of the following year. H&r block free state Employees being reimbursed under the per diem rate method during the first 9 months of a year (January 1–September 30) must continue under the same method through the end of that calendar year (December 31). H&r block free state However, for travel by these employees from October 1 through December 31, you can choose to continue using the same per diem rates or use the new rates. H&r block free state Your choice applies to all employees reimbursed under the per diem rate method during that calendar year. H&r block free state Just as for the high-low method, you must continue using the same method for an employee for the entire calendar year. H&r block free state   For example, Employees P and Q attend an industry conference in February 2012, and you reimburse their expenses using the per diem rate method (Table 4). H&r block free state Employee P attends other conferences in July (reimbursed using Table 4) and December 2012, while Employee Q's only other travel occurs in October 2012. H&r block free state When determining Q's travel allowance for the October travel, you must decide whether to continue with the old (Table 4) rates or adopt the new ones effective October 1, 2012. H&r block free state Your choice of rates will also apply to Employee P's December travel. H&r block free state Both employees must continue being reimbursed under the per diem rate method for travel through December 31, 2012. H&r block free state You can choose a new method for either or both employees; this choice will become effective on January 1, 2013. H&r block free state   The new federal CONUS per diem rates are published each year, generally early in September, on the Internet. H&r block free state Go to www. H&r block free state gsa. H&r block free state gov/perdiem. H&r block free state Per diem rates for localities listed in Table 4 may change at any time during the rest of 2011 or 2012. H&r block free state To be sure you have the most current rate, check IRS. H&r block free state gov for an updated Publication 1542, the other Internet website listed earlier under Per diem rates on the Internet, or call the IRS at 1-800-829-1040. H&r block free state Per Diem Rate Tables Table 1. H&r block free state Localities Eligible for $233 ($65 M&IE) Per Diem Amount Under the High-Low Substantiation Method (Effective October 1, 2010 – September 30, 2011)1,2 Note: The standard (“low”) rate of $160 ($108 for lodging and $52 for M&IE) applies to all locations within the continental United States (CONUS) not specifically listed below or encompassed by the boundary definition of a listed point. H&r block free state Per Diem Locality Effective Date of State Key City County and/or Other Defined Location $233 Rate AZ Phoenix, Scottsdale Maricopa 1/1 - 5/31   Sedona City limits of Sedona 3/1 - 4/30 CA Monterey Monterey All year   Napa Napa 4/1 - 9/30 10/1 - 11/30   San Diego San Diego All year   San Francisco San Francisco All year   Santa Barbara Santa Barbara All year   Santa Monica City limits of Santa Monica All year   South Lake Tahoe El Dorado All year   Yosemite National Park Mariposa All year CO Aspen Pitkin 1/1 - 3/31 6/1 - 8/31 12/1 - 12/31   Denver, Aurora Denver, Adams, Arapahoe, Jefferson All year   Silverthorne, Breckenridge Summit 1/1 - 3/31 12/1 - 12/31   Steamboat Springs Routt 1/1 - 3/31 12/1 - 12/31   Telluride San Miguel 1/1 - 3/31 12/1 - 12/31   Vail Eagle 1/1 - 8/31 12/1 - 12/31 DC Washington, DC (also the cities of Alexandria, Fairfax, and Falls Church, and the counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and Prince George's in Maryland)   All year FL Fort Lauderdale Broward 1/1 - 5/31   Fort Walton Beach, DeFuniak Springs Okaloosa, Walton 6/1 - 7/31   Key West Monroe All year   Miami Miami-Dade 1/1 - 3/31 12/1 - 12/31   Naples Collier 1/1 - 4/30 IL Chicago Cook, Lake All year LA New Orleans Orleans, St. H&r block free state Bernard, Jefferson, Plaquemines Parishes 1/1 - 6/30 10/1 - 12/31 MA Boston, Cambridge Suffolk, City of Cambridge All year   Falmouth City limits of Falmouth 7/1 - 8/31   Martha's Vineyard Dukes 7/1 - 8/31   Nantucket Nantucket 6/1 - 9/30 MD Counties of Montgomery and Prince George's   All year Table 1. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Effective Date of State Key City County and/or Other Defined Location $233 Rate MD Baltimore Baltimore City 3/1 - 9/30 10/1 - 11/30   Cambridge, St. H&r block free state Michaels Dorchester, Talbot 6/1 - 8/31   Ocean City Worcester 6/1 - 8/31 ME Bar Harbor Hancock 7/1 - 8/31 NC Kill Devil Dare 6/1 - 8/31 NH Conway Carroll 7/1 - 8/31 NY Floral Park, Garden City, Great Neck Nassau All year   Glens Falls Warren 7/1 - 8/31   Lake Placid Essex 7/1 - 8/31   Manhattan (includes the boroughs of Manhattan, Brooklyn, the Bronx, Queens, and Staten Island) Bronx, Kings, New York, Queens, Richmond All year   Riverhead, Ronkonkoma, Melville Suffolk 6/1 - 8/31   Saratoga Springs, Schenectady Saratoga, Schenectady 7/1 - 8/31   Tarrytown, White Plains, New Rochelle Westchester All year PA Philadelphia Philadelphia All year RI Jamestown, Middletown, Newport Newport 5/1 - 9/30 10/1 - 10/31 UT Park City Summit 1/1 - 3/31 VA Cities of Alexandria, Falls Church, and Fairfax; Counties of Arlington and Fairfax   All year   Virginia Beach City of Virginia Beach 6/1 - 8/31 VT Stowe Lamoille 1/1 - 3/31 6/1 - 12/31 WA Seattle King All year WY Jackson, Pinedale Teton, Sublette 7/1 - 8/31 1 Transition rule. H&r block free state A payor who uses the high-low substantiation method  in Table 1 for an employee during the first 9 months of calendar year 2011 must continue to use the high-low substantiation method for the remainder  of calendar year 2011 for that employee. H&r block free state For travel on or after October 1, 2011, and before January 1, 2012, the payor may continue to use the rates and high-cost localities published in Table 1 or the updated rates and high-cost localities published in the revenue procedure that supersedes Revenue Procedure 2010-39, as long as those rates and localities are used consistently during this period for all employees reimbursed under this method. H&r block free state See Transition Rules under How To Use Per Diem Rate Tables for an example. H&r block free state    2 Revenue Procedure 2010-39 in Internal Revenue Bulletin 2010-42. H&r block free state Table 2. H&r block free state Localities Eligible for $242 ($65 M&IE) Per Diem Amount Under the High-Low Substantiation Method (Effective October 1, 2011)1,2 Note: The standard (“low”) rate of $163 ($111 for lodging and $52 for M&IE) applies to all locations within the continental United States (CONUS) not specifically listed below or encompassed by the boundary definition of a listed point. H&r block free state Per Diem Locality Effective Date of State Key City County and/or Other Defined Location $242 Rate AZ Sedona City limits of Sedona 3/1 - 4/30 CA Monterey Monterey All year   Napa Napa 4/1 - 9/30 10/1 - 11/30   San Diego San Diego All year   San Francisco San Francisco All year   Santa Barbara Santa Barbara All year   Santa Monica City limits of Santa Monica All year   Yosemite National Park Mariposa 6/1 - 8/31 CO Aspen Pitkin 1/1 - 3/31 6/1 - 8/31 12/1 - 12/31   Denver, Aurora Denver, Adams, Arapahoe, Jefferson All year   Steamboat Springs Routt 1/1 - 3/31 12/1 - 12/31   Telluride San Miguel 1/1 - 3/31 12/1 - 12/31   Vail Eagle 1/1 - 8/31 12/1 - 12/31 DC Washington, DC (also the cities of Alexandria, Fairfax, and Falls Church, and the counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and Prince George's in Maryland)   All year FL Fort Lauderdale Broward 1/1 - 5/31   Fort Walton Beach, DeFuniak Springs Okaloosa, Walton 6/1 - 7/31   Key West Monroe All year   Miami Miami-Dade 1/1 - 3/31 12/1 - 12/31   Naples Collier 1/1 - 4/30 IL Chicago Cook, Lake 4/1 - 9/30 10/1 - 11/30 LA New Orleans Orleans, St. H&r block free state Bernard, Jefferson, Plaquemines Parishes 1/1 - 6/30 10/1 - 12/31 MA Boston, Cambridge Suffolk, City of Cambridge All year   Falmouth City limits of Falmouth 7/1 - 8/31   Martha's Vineyard Dukes 7/1 - 8/31   Nantucket Nantucket 6/1 - 9/30 Table 2. H&r block free state (Effective October 1, 2011) (Continued) Per Diem Locality Effective Date of State Key City County and/or Other Defined Location $242 Rate MD Counties of Montgomery and Prince George's   All year   Baltimore Baltimore City 3/1 - 9/30 10/1 - 11/30   Cambridge, St. H&r block free state Michaels Dorchester, Talbot 6/1 - 8/31   Ocean City Worcester 6/1 - 8/31 ME Bar Harbor Hancock 7/1 - 8/31 NC Kill Devil Dare 6/1 - 8/31 NH Conway Carroll 7/1 - 8/31 NY Floral Park, Garden City, Great Neck Nassau All year   Glens Falls Warren 7/1 - 8/31   Lake Placid Essex 7/1 - 8/31   Manhattan (includes the boroughs of Manhattan, Brooklyn, the Bronx, Queens, and Staten Island) Bronx, Kings, New York, Queens, Richmond All year   Saratoga Springs, Schenectady Saratoga, Schenectady 7/1 - 8/31   Tarrytown, White Plains, New Rochelle Westchester All year PA Philadelphia Philadelphia All year RI Jamestown, Middletown, Newport Newport 5/1 - 9/30 10/1 - 10/31 UT Park City Summit 1/1 - 3/31 VA Cities of Alexandria, Falls Church, and Fairfax; Counties of Arlington and Fairfax   All year   Virginia Beach City of Virginia Beach 6/1 - 8/31 WA Seattle King All year WY Jackson, Pinedale Teton, Sublette 7/1 - 8/31 1 Transition rule. H&r block free state A payor who uses the high-low substantiation method  in Table 2 for an employee during the first 9 months of calendar year 2012 must continue to use the high-low substantiation method for the remainder  of calendar year 2012 for that employee. H&r block free state For travel on or after October 1, 2012, and before January 1, 2013, the payor may continue to use the rates and high-cost localities published in Table 2 or the updated rates and high-cost localities published in the revenue procedure that supersedes Revenue Procedure 2011-47 and Notice 2011-81, as long as those rates and localities are used consistently during this period for all employees reimbursed under this method. H&r block free state See Transition Rules under How To Use Per Diem Rate Tables for an example. H&r block free state    2 Revenue Procedure 2011-47 and Notice 2011-81 in Internal Revenue Bulletin 2011-42. H&r block free state Table 3. H&r block free state Maximum Federal Per Diem Rates (Effective October 1, 2010 – September 30, 2011)1 Note: The standard rate of $123 ($77 for lodging and $46 for M&IE) applies to all locations within the continental United States (CONUS) not specifically listed below or encompassed by the boundary definition of a listed point. H&r block free state However, the standard CONUS rate applies to all locations within CONUS, including those defined below, for certain relocation allowances. H&r block free state (See parts 302-2, 302-4, and 302-5 of 41 CFR. H&r block free state ) Table 4 lists all per diem rates alphabetically by state abbreviation. H&r block free state Click on a link below to find rates for your state: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas , Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate AL Birmingham Jefferson, Shelby All year $88   $56   $144     Gulf Shores Baldwin 1/1 - 5/31 101   51   152         6/1 - 7/31 126   51   177         8/1 - 12/31 101   51   152     Huntsville Madison, Limestone All year 86   51   137     Mobile Mobile 1/1 - 2/28 98   51   149         3/1 - 12/31 90   51   141   AR Hot Springs Garland All year 101   46   147     Little Rock Pulaski All year 88   61   149   AZ Grand Canyon, Flagstaff Coconino (except city limits of Sedona), Yavapai 1/1 - 2/28 77   66   143         3/1 - 10/31 95   66   161         11/1 - 12/31 77   66   143     Kayenta Navajo 1/1 - 4/30 77   46   123         5/1 - 9/30 89   46   135         10/1 - 12/31 77   46   123     Phoenix, Scottsdale Maricopa 1/1 - 5/31 126   71   197         6/1 - 8/31 81   71   152         9/1 - 12/31 106   71   177     Sedona City limits of Sedona 1/1 - 2/28 129   66   195         3/1 - 4/30 145   66   211         5/1 - 12/31 129   66   195     Sierra Vista Cochise All year 81   46   127     Tucson Pima 1/1 - 1/31 93   56   149         2/1 - 5/31 111   56   167         6/1 - 8/31 77   56   133         9/1 - 12/31 93   56   149     Yuma Yuma All year 81   46   127   CA Antioch, Brentwood, Concord Contra Costa All year 101   66   167     Barstow, Ontario, Victorville San Bernardino Before 4/01/11 83   56   139         After 3/31/11 99   56   155     Benicia, Dixon, Fairfield Solano All year 84   56   140     Death Valley Inyo All year 92   46   138     Eureka, Arcata, Humboldt 1/1 - 5/31 82   61   143     McKinleyville   6/1 - 8/31 92   61   153         9/1 - 12/31 82   61   143     Fresno Fresno All year 91   61   152     Los Angeles Los Angeles (except the city of Santa Monica), Orange, Ventura; Edwards AFB All year 123   71   194     Mammoth Lakes Mono All year 116   61   177   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate CA Mill Valley, San Rafael, Novato Marin All year $106   $56   $162     Modesto Stanislaus All year 85   51   136     Monterey Monterey 1/1 - 6/30 126   71   197         7/1 - 8/31 152   71   223         9/1 - 12/31 126   71   197     Napa Napa 1/1 - 3/31 107   66   173         4/1 - 11/30 142   66   208         12/1 - 12/31 107   66   173     Oakhurst Madera 1/1 - 4/30 78   56   134         5/1 - 8/31 92   56   148         9/1 - 12/31 78   56   134     Oakland Alameda All year 94   61   155     Palm Springs Riverside 1/1 - 4/30 120   71   191         5/1 - 8/31 90   71   161         9/1 - 12/31 104   71   175     Point Arena, Gualala Mendocino All year 88   66   154     Redding Shasta All year 87   61   148     Sacramento Sacramento All year 101   61   162     San Diego San Diego All year 131   71   202     San Francisco San Francisco Before 1/1/11:                   10/1 - 10/31 174   71   245         11/1 - 12/31 142   71   213         After 12/31/10:                   1/1 - 3/31 142   71   213         4/1 - 8/31 150   71   221         9/1 - 12/31 180   71   251     San Luis Obispo San Luis Obispo 1/1 - 6/30 104   66   170         7/1 - 8/31 121   66   187         9/1 - 12/31 104   66   170     San Mateo, Foster City, Belmont San Mateo All year 108   61   169     Santa Barbara Santa Barbara 1/1 - 6/30 143   66   209         7/1 - 8/31 172   66   238         9/1 - 12/31 143   66   209     Santa Cruz Santa Cruz All year 93   66   159     Santa Monica City limits of Santa Monica All year 180   71   251     Santa Rosa Sonoma All year 109   61   170     South Lake Tahoe El Dorado All year 125   71   196     Stockton San Joaquin All year 80   56   136     Sunnyvale, Palo Alto, San Jose Santa Clara All year 116   56   172     Tahoe City Placer All year 87   61   148     Truckee Nevada 1/1 - 2/28 113   71   184         3/1 - 11/30 96   71   167         12/1 - 12/31 113   71   184     Visalia, Lemoore Tulare, Kings All year 83   61   144     West Sacramento Yolo All year 91   51   142     Yosemite National Mariposa 1/1 - 5/31 129   71   200     Park   6/1 - 8/31 162   71   233         9/1 - 12/31 129   71   200   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate CO Aspen Pitkin 1/1 - 3/31 $202   $71   $273         4/1 - 5/31 107   71   178         6/1 - 8/31 143   71   214         9/1 - 11/30 103   71   174         12/1 - 12/31 202   71   273     Boulder, Broomfield Boulder, Broomfield All year 104   61   165     Colorado Springs El Paso All year 84   66   150     Cortez Montezuma 1/1 - 5/31 87   51   138         6/1 - 8/31 105   51   156         9/1 - 12/31 87   51   138     Crested Butte, Gunnison Gunnison 1/1 - 3/31 82   51   133         4/1 - 5/31 77   51   128         6/1 - 8/31 95   51   146         9/1 - 12/31 82   51   133     Denver, Aurora Denver, Adams, Arapahoe, and Jefferson All year 141   66   207     Douglas County Douglas All year 101   61   162     Durango La Plata 1/1 - 5/31 93   61   154         6/1 - 9/30 128   61   189         10/1 - 12/31 93   61   154     Fort Collins, Loveland Larimer All year 84   56   140     Glenwood Springs, Grand Junction Garfield, Mesa All year 86   51   137     Montrose Montrose 1/1 - 5/31 79   56   135         6/1 - 9/30 94   56   150         10/1 - 12/31 79   56   135     Silverthorne, Summit 1/1 - 3/31 147   56   203     Breckenridge   4/1 - 11/30 93   56   149         12/1 - 12/31 147   56   203     Steamboat Springs Routt 1/1 - 3/31 179   56   235         4/1 - 11/30 103   56   159         12/1 - 12/31 179   56   235     Telluride San Miguel 1/1 - 3/31 141   71   212         4/1 - 5/31 93   71   164         6/1 - 9/30 124   71   195         10/1 - 11/30 94   71   165         12/1 - 12/31 141   71   212     Vail Eagle 1/1 - 3/31 261   71   332         4/1 - 8/31 130   71   201         9/1 - 11/30 105   71   176         12/1 - 12/31 261   71   332   CT Bridgeport, Danbury Fairfield All year 114   71   185     Cromwell, Old Saybrook Middlesex All year 83   61   144     Hartford Hartford All year 106   56   162     Lakeville, Salisbury Litchfield All year 93   66   159     New Haven New Haven All year 92   61   153     New London, Groton New London All year 98   61   159   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate DC District of Columbia Washington, DC (also the cities of Alexandria, 1/1 - 2/28 $181   $71   $252       Fairfax, and Falls Church, and the counties of 3/1 - 6/30 211   71   282       Arlington and Fairfax, in Virginia; and the counties 7/1 - 8/31 157   71   228       of Montgomery and Prince George's in Maryland) 9/1 - 10/31 211   71   282       (see also Maryland and Virginia) 11/1 - 12/31 181   71   252   DE Dover Kent 1/1 - 4/30 77   46   123         5/1 - 9/30 92   46   138         10/1 - 12/31 77   46   123     Lewes Sussex 1/1 - 6/30 82   46   128         7/1 - 8/31 123   46   169         9/1 - 12/31 82   46   128     Wilmington New Castle All year 109   56   165   FL Altamonte Springs Seminole All year 80   61   141     Boca Raton, Delray Palm Beach 1/1 - 4/30 111   71   182     Beach, Jupiter   5/1 - 12/31 82   71   153     Bradenton Manatee 1/1 - 4/30 100   56   156         5/1 - 12/31 84   56   140     Cocoa Beach Brevard All year 99   51   150     Daytona Beach Volusia 1/1 - 1/31 84   51   135         2/1 - 7/31 107   51   158         8/1 - 12/31 84   51   135     Fort Lauderdale Broward 1/1 - 2/28 173   71   244         3/1 - 5/31 149   71   220         6/1 - 9/30 103   71   174         10/1 - 12/31 124   71   195     Fort Myers Lee 1/1 - 4/30 115   56   171         5/1 - 12/31 87   56   143     Fort Walton Beach, Okaloosa, Walton 1/1 - 2/28 78   51   129     DeFuniak Springs   3/1 - 5/31 126   51   177         6/1 - 7/31 164   51   215         8/1 - 10/31 112   51   163         11/1 - 12/31 78   51   129     Gainesville Alachua All year 89   51   140     Gulf Breeze Santa Rosa 1/1 - 2/28 92   51   143         3/1 - 5/31 114   51   165         6/1 - 8/31 140   51   191         9/1 - 12/31 92   51   143     Jacksonville, Jacksonville Beach, Mayport Naval Station Duval, Nassau; City of Jacksonville All year 82   51   133     Key West Monroe 1/1 - 1/31 193   71   264         2/1 - 4/30 209   71   280         5/1 - 11/30 145   71   216         12/1 - 12/31 193   71   264     Kissimmee Osceola 1/1 - 5/31 84   46   130         6/1 - 8/31 77   46   123         9/1 - 12/31 84   46   130     Lakeland Polk All year 81   46   127   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate FL Miami Miami-Dade 1/1 - 3/31 $151   $66   $217         4/1 - 5/31 128   66   194         6/1 - 11/30 104   66   170         12/1 - 12/31 151   66   217     Naples Collier 1/1 - 4/30 155   61   216         5/1 - 9/30 101   61   162         10/1 - 12/31 111   61   172     Orlando Orange 1/1 - 5/31 104   56   160         6/1 - 12/31 90   56   146     Panama City Bay 1/1 - 2/28 77   51   128         3/1 - 7/31 110   51   161         8/1 - 12/31 77   51   128     Pensacola, Pensacola Beach Escambia All year 103   46   149     Punta Gorda Charlotte 1/1 - 1/31 77   51   128         2/1 - 4/30 88   51   139         5/1 - 12/31 77   51   128     Sarasota Sarasota 1/1 - 4/30 110   56   166         5/1 - 12/31 86   56   142     Sebring Highlands 1/1 - 3/31 123   46   169         4/1 - 12/31 82   46   128     St. H&r block free state Augustine St. H&r block free state Johns All year 97   56   153     Stuart Martin 1/1 - 4/30 102   51   153         5/1 - 12/31 82   51   133     Tallahassee Leon All year 87   46   133     Tampa, St. H&r block free state Petersburg Pinellas, Hillsborough 1/1 - 4/30 108   51   159         5/1 - 12/31 92   51   143     Vero Beach Indian River 1/1 - 1/31 83   51   134         2/1 - 3/31 99   51   150         4/1 - 12/31 83   51   134   GA Athens Clarke All year 93   46   139     Atlanta Fulton, DeKalb, Cobb All year 132   56   188     Augusta Richmond All year 84   51   135     Columbus Muscogee All year 85   46   131     Jekyll Island, Brunswick Glynn 1/1 - 3/31 92   56   148         4/1 - 11/30 136   56   192         12/1 - 12/31 92   56   148     Savannah Chatham All year 97   56   153   IA Cedar Rapids Linn All year 81   51   132     Des Moines Polk All year 83   51   134     West Des Moines Dallas All year 95   51   146   ID Bonner's Ferry, Boundary, Bonner, Shoshone 1/1 - 6/30 77   61   138     Sandpoint   7/1 - 8/31 99   61   160         9/1 - 12/31 77   61   138     Coeur d'Alene Kootenai 1/1 - 5/31 77   61   138         6/1 - 8/31 105   61   166         9/1 - 12/31 77   61   138     Driggs, Idaho Falls Teton, Bonneville, Fremont All year 78   46   124   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate ID Sun Valley, Ketchum Blaine 1/1 - 5/31 $79   $71   $150         6/1 - 8/31 95   71   166         9/1 - 12/31 79   71   150   IL Bolingbrook, Romeoville, Lemont Will All year 82   51   133     Chicago Cook, Lake 1/1 - 3/31 128   71   199         4/1 - 6/30 166   71   237         7/1 - 8/31 146   71   217         9/1 - 11/30 173   71   244         12/1 - 12/31 128   71   199     Oakbrook Terrace DuPage All year 92   61   153     O'Fallon, Fairview Bond, Calhoun, Clinton, Jersey, Macoupin, All year 105   56   161     Heights, Collinsville Madison, Monroe, St. H&r block free state Clair                 Springfield Sangamon All year 82   56   138   IN Bloomington Monroe All year 91   56   147     Fort Wayne Allen All year 81   56   137     Hammond, Munster, Merrillville Lake All year 85   46   131     Indianapolis, Carmel Marion, Hamilton; Fort Benjamin Harrison All year 91   61   152     Lafayette Tippecanoe All year 80   51   131     South Bend St. H&r block free state Joseph All year 87   56   143     Valparaiso, Burlington Beach Porter All year 79   51   130   KS Kansas City, Overland Park Wyandotte, Johnson, Leavenworth All year 99   61   160     Wichita Sedgwick All year 89   56   145   KY Boone County Boone All year 88   51   139     Kenton County Kenton All year 115   56   171     Lexington Fayette All year 89   61   150     Louisville Jefferson 1/1 - 5/31 101   61   162         6/1 - 8/31 95   61   156         9/1 - 12/31 101   61   162   LA Baton Rouge East Baton Rouge Parish All year 96   56   152     Covington, Slidell St. H&r block free state Tammany Parish All year 88   56   144     Lafayette Lafayette Consolidated Government All year 87   56   143     Lake Charles Calcasieu Parish All year 79   61   140     New Orleans Orleans, Jefferson, Plaquemines, and 1/1 - 6/30 131   71   202       St. H&r block free state Bernard Parishes 7/1 - 9/30 98   71   169         10/1 - 12/31 131   71   202   MA Andover Essex All year 83   56   139     Boston, Cambridge Suffolk; City of Cambridge 1/1 - 3/31 154   71   225         4/1 - 6/30 190   71   261         7/1 - 8/31 171   71   242         9/1 - 10/31 206   71   277         11/1 - 12/31 154   71   225     Burlington, Woburn Middlesex less the city of Cambridge All year 108   71   179   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate MA Falmouth City limits of Falmouth 1/1 - 4/30 $95   $51   $146         5/1 - 6/30 107   51   158         7/1 - 8/31 161   51   212         9/1 - 12/31 95   51   146     Hyannis Barnstable less the city of Falmouth 1/1 - 6/30 85   56   141         7/1 - 8/31 123   56   179         9/1 - 12/31 85   56   141     Martha's Vineyard Dukes 1/1 - 6/30 114   71   185         7/1 - 8/31 201   71   272         9/1 - 12/31 114   71   185     Nantucket Nantucket 1/1 - 5/31 128   61   189         6/1 - 9/30 243   61   304         10/1 - 12/31 128   61   189     Northampton Hampshire All year 92   56   148     Pittsfield Berkshire 1/1 - 6/30 107   61   168         7/1 - 8/31 126   61   187         9/1 - 12/31 107   61   168     Plymouth, Taunton, New Bedford Plymouth, Bristol All year 88   56   144     Quincy Norfolk All year 114   51   165     Springfield Hampden All year 93   51   144     Worcester Worcester All year 90   61   151   MD Counties of Montgomery   1/1 - 2/28 181   71   252     and Prince George's   3/1 - 6/30 211   71   282         7/1 - 8/31 157   71   228         9/1 - 10/31 211   71   282         11/1 - 12/31 181   71   252     Aberdeen, Bel Air, Belcamp Harford All year 84   56   140     Annapolis Anne Arundel 1/1 - 4/30 100   61   161         5/1 - 10/31 114   61   175         11/1 - 12/31 100   61   161     Baltimore City Baltimore City 1/1 - 2/28 121   71   192         3/1 - 11/30 144   71   215         12/1 - 12/31 121   71   192     Baltimore County Baltimore All year 99   61   160     Cambridge, St. H&r block free state Michaels Dorchester, Talbot 1/1 - 3/31 101   61   162         4/1 - 5/31 119   61   180         6/1 - 8/31 170   61   231         9/1 - 10/31 131   61   192         11/1 - 12/31 101   61   162     Centreville Queen Anne All year 103   51   154     Columbia Howard All year 105   61   166     Frederick Frederick All year 92   56   148     Hagerstown Washington All year 78   56   134     La Plata, Indian Head Charles All year 84   51   135     Lexington Park, Leonardtown, Lusby St. H&r block free state Mary's, Calvert All year 102   61   163   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate MD Ocean City Worcester 1/1 - 3/31 $77   $71   $148         4/1 - 5/31 88   71   159         6/1 - 8/31 192   71   263         9/1 - 10/31 105   71   176         11/1 - 12/31 77   71   148   ME Bar Harbor Hancock 1/1 - 6/30 86   61   147         7/1 - 8/31 140   61   201         9/1 - 10/31 112   61   173         11/1 - 12/31 86   61   147     Kennebunk, Kittery, York 1/1 - 3/31 77   56   133     Sanford   4/1 - 6/30 86   56   142         7/1 - 8/31 122   56   178         9/1 - 10/31 96   56   152         11/1 - 12/31 77   56   133     Portland Cumberland, Sagadahoc 1/1 - 6/30 89   56   145         7/1 - 9/30 109   56   165         10/1 - 12/31 89   56   145     Rockport Knox 1/1 - 6/30 80   56   136         7/1 - 9/30 106   56   162         10/1 - 12/31 80   56   136   MI Ann Arbor Washtenaw All year 87   56   143     Detroit Wayne All year 95   56   151     East Lansing, Lansing Ingham, Eaton All year 82   51   133     Grand Rapids Kent All year 81   51   132     Holland Ottawa All year 81   56   137     Kalamazoo, Battle Creek Kalamazoo, Calhoun All year 87   51   138     Midland Midland All year 90   46   136     Muskegon Muskegon 1/1 - 5/31 77   46   123         6/1 - 8/31 101   46   147         9/1 - 12/31 77   46   123     Petoskey Emmet 1/1 - 6/30 77   51   128         7/1 - 8/31 99   51   150         9/1 - 12/31 77   51   128     Pontiac, Auburn Hills Oakland All year 87   56   143     South Haven Van Buren 1/1 - 5/31 77   56   133         6/1 - 8/31 89   56   145         9/1 - 12/31 77   56   133     Traverse City, Leland Grand Traverse, Leelanau 1/1 - 6/30 77   51   128         7/1 - 8/31 109   51   160         9/1 - 12/31 77   51   128   MN Duluth St. H&r block free state Louis 1/1 - 5/31 80   56   136         6/1 - 10/31 99   56   155         11/1 - 12/31 80   56   136     Eagan, Burnsville, Mendota Heights Dakota All year 82   56   138     Minneapolis, St. H&r block free state Paul Hennepin, Ramsey All year 120   71   191     Rochester Olmsted All year 95   51   146   MO Columbia Boone All Year 78   51   129   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate MO Kansas City Jackson, Clay, Cass, Platte All year $99   $61   $160     St. H&r block free state Louis St. H&r block free state Louis, St. H&r block free state Charles, Crawford, Franklin, Jefferson, Lincoln, Warren, Washington; St. H&r block free state Louis City All year 105   66   171     St. H&r block free state Robert Pulaski All year 78   46   124   MS Gulfport, Biloxi Harrison All year 82   56   138     Hattiesburg Forrest, Lamar All year 85   51   136     Oxford Lafayette County Before 4/01/11 77   46   123         After 3/31/11 96   51   147     Robinsonville Tunica All year 82   51   133     Southaven Desoto All year 88   46   134     Starkville Oktibbeha All year 91   46   137   MT Big Sky, West Gallatin 1/1 - 5/31 80   61   141     Yellowstone   6/1 - 8/31 105   61   166         9/1 - 12/31 80   61   141     Butte Silver Bow All year 86   51   137     Helena Lewis and Clark All year 81   56   137     Missoula, Polson, Missoula, Lake, Flathead 1/1 - 6/30 87   51   138     Kalispell   7/1 - 8/31 104   51   155         9/1 - 12/31 87   51   138   NC Asheville Buncombe 1/1 - 6/30 81   51   132         7/1 - 10/31 90   51   141         11/1 - 12/31 81   51   132     Atlantic Beach, Carteret 1/1 - 5/31 81   56   137     Morehead City   6/1 - 8/31 110   56   166         9/1 - 12/31 81   56   137     Chapel Hill Orange All year 86   56   142     Charlotte Mecklenburg All year 95   51   146     Durham Durham All year 89   51   140     Fayetteville Cumberland All year 91   51   142     Greensboro Guilford All year 85   56   141     Greenville Pitt All year 79   51   130     Kill Devil Dare 1/1 - 5/31 90   61   151         6/1 - 8/31 143   61   204         9/1 - 12/31 90   61   151     New Bern, Havelock Craven All year 94   46   140     Raleigh Wake All year 90   66   156     Wilmington New Hanover All year 97   56   153     Winston-Salem Forsyth All year 83   56   139   ND The standard CONUS rate of $123 ($77 for lodging and $46 for M&IE) applies to all per diem localities in North Dakota. H&r block free state NE Omaha Douglas 1/1 - 4/30 93   61   154         5/1 - 6/30 104   61   165         7/1 - 12/31 93   61   154   NH Concord Merrimack 1/1 - 5/31 82   51   133         6/1 - 9/30 92   51   143         10/1 - 12/31 82   51   133     Conway Carroll 1/1 - 2/28 116   61   177         3/1 - 6/30 102   61   163         7/1 - 8/31 141   61   202         9/1 - 12/31 116   61   177   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate NH Durham Strafford All year $94   $46   $140     Laconia Belknap 1/1 - 5/31 85   51   136         6/1 - 10/31 101   51   152         11/1 - 12/31 85   51   136     Lebanon, Lincoln, West Lebanon Grafton, Sullivan All year 101   56   157     Manchester Hillsborough All year 86   56   142     Portsmouth Rockingham 1/1 - 6/30 102   61   163         7/1 - 9/30 126   61   187         10/1 - 12/31 102   61   163   NJ Atlantic City, Cape Atlantic, Cape May 1/1 - 3/31 87   66   153     May, Ocean City   4/1 - 12/31 100   66   166     Belle Mead Somerset All year 116   56   172     Cherry Hill, Moorestown Camden, Burlington All year 92   61   153     Eatontown, Freehold Monmouth All year 110   56   166     Edison, Piscataway Middlesex All year 109   51   160     Flemington Hunterdon All year 107   61   168     Newark Bergen, Essex, Hudson, Passaic All year 116   61   177     Parsippany Morris All year 125   56   181     Princeton, Trenton Mercer All year 126   61   187     Springfield, Cranford, New Providence Union All year 94   56   150     Toms River Ocean 1/1 - 5/31 78   51   129         6/1 - 8/31 99   51   150         9/1 - 12/31 78   51   129   NM Albuquerque Bernalillo All year 81   56   137     Las Cruces Dona Ana All year 79   56   135     Los Alamos Los Alamos All year 86   51   137     Santa Fe Santa Fe 1/1 - 6/30 82   71   153         7/1 - 10/31 100   71   171         11/1 - 12/31 82   71   153     Taos Taos All year 87   66   153   NV Incline Village, Washoe 1/1 - 6/30 98   51   149     Reno, Sparks   7/1 - 8/31 123   51   174         9/1 - 12/31 98   51   149     Las Vegas Clark All year 93   71   164     Stateline, Carson City Douglas, Carson City All year 93   61   154   NY Albany Albany All year 104   61   165     Binghamton, Owego Broome, Tioga All year 90   46   136     Buffalo Erie All year 98   56   154     Floral Park, Garden City, Great Neck Nassau All year 143   66   209     Glens Falls Warren 1/1 - 6/30 92   66   158         7/1 - 8/31 133   66   199         9/1 - 12/31 92   66   158     Ithaca, Waterloo, Romulus Tompkins, Seneca All year 114   46   160   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate NY Kingston Ulster All year $101   $66   $167     Lake Placid Essex 1/1 - 2/28 124   61   185         3/1 - 6/30 99   61   160         7/1 - 8/31 145   61   206         9/1 - 11/30 103   61   164         12/1 - 12/31 124   61   185     Manhattan (includes Bronx, Kings, New York, Queens, Richmond Before 1/1/11:               the boroughs of   10/1 - 12/31 269   71   340     Manhattan, Brooklyn   After 12/31/10:               the Bronx, Queens, and Staten Island)   1/1 - 3/31 192   71   263         4/1 - 5/31 212   71   283         6/1 - 8/31 224   71   295         9/1 - 12/31 295   71   366     Niagara Falls Niagara 1/1 - 5/31 77   51   128         6/1 - 8/31 100   51   151         9/1 - 12/31 77   51   128     Nyack, Palisades Rockland All year 103   61   164     Poughkeepsie Dutchess All year 95   66   161     Riverhead, Suffolk 1/1 - 5/31 114   71   185     Ronkonkoma, Melville   6/1 - 8/31 137   71   208         9/1 - 12/31 114   71   185     Rochester Monroe All year 96   51   147     Saratoga Springs, Saratoga, Schenectady 1/1 - 6/30 104   56   160     Schenectady   7/1 - 8/31 151   56   207         9/1 - 12/31 104   56   160     Syracuse, Oswego Onondaga, Oswego All year 93   56   149     Tarrytown, White Plains, New Rochelle Westchester All year 142   71   213     Troy Rensselaer All year 94   51   145     West Point Orange All year 109   51   160   OH Akron Summit All year 85   51   136     Canton Stark All year 88   51   139     Cincinnati Hamilton, Clermont All year 115   56   171     Cleveland Cuyahoga All year 102   56   158     Columbus Franklin All year 94   56   150     Dayton, Fairborn Greene, Darke, Montgomery All year 81   56   137     Hamilton Butler, Warren All year 92   51   143     Mentor Lake All year 88   46   134     Rittman Wayne, Medina All year 87   51   138     Sandusky, Bellevue Erie, Huron 1/1 - 5/31 77   46   123         6/1 - 8/31 83   46   129         9/1 - 12/31 77   46   123     Youngstown Mahoning, Trumbull All year 82   51   133   OK Oklahoma City Oklahoma All year 82   66   148     Tulsa Tulsa, Creek, Osage, Rogers All year 80   61   141   OR Ashland, Crater Lake Jackson, Klamath All year 80   56   136     Beaverton Washington All year 90   51   141   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate OR Bend Deschutes 1/1 - 6/30 $88   $61   $149         7/1 - 8/31 110   61   171         9/1 - 12/31 88   61   149     Clackamas Clackamas All year 87   61   148     Eugene, Florence Lane All year 97   51   148     Lincoln City Lincoln 1/1 - 6/30 83   56   139         7/1 - 8/31 104   56   160         9/1 - 12/31 83   56   139     Portland Multnomah All year 113   66   179     Seaside Clatsop 1/1 - 6/30 93   51   144         7/1 - 8/31 130   51   181         9/1 - 12/31 93   51   144   PA Allentown, Easton, Bethlehem Lehigh, Northampton All year 84   51   135     Bucks County Bucks All year 95   71   166     Chester, Radnor, Essington Delaware All year 96   51   147     Erie Erie All year 82   46   128     Gettysburg Adams 1/1 - 3/31 79   51   130         4/1 - 10/31 98   51   149         11/1 - 12/31 79   51   130     Harrisburg, Hershey Dauphin Before 1/1/11:                   10/31 - 12/31 106   51   157         After 12/31/10:                   1/1 - 3/31 106   51   157         3/31 - 5/31 107   51   158         6/1 - 8/31 134   51   185         9/1 - 12/31 107   51   158     Lancaster Lancaster All year 96   56   152     Malvern, Frazer, Berwyn Chester All year 116   51   167     Mechanicsburg Cumberland All year 83   56   139     Montgomery County Montgomery All year 115   66   181     Philadelphia Philadelphia 1/1 - 8/31 136   66   202         9/1 - 11/30 149   66   215         12/1 - 12/31 136   66   202     Pittsburgh Allegheny All year 115   71   186     Reading Berks All year 89   56   145     Scranton Lackawanna All year 80   56   136     State College Centre All year 86   56   142   RI East Greenwich, Warwick, North Kingstown Kent, Washington All year 84   56   140     Jamestown, Middletown, Newport 1/1 - 4/30 96   71   167     Newport   5/1 - 10/31 145   71   216         11/1 - 12/31 96   71   167     Providence, Bristol Providence, Bristol All year 122   71   193   SC Aiken Aiken All year 81   46   127     Charleston Charleston, Berkeley, Dorchester All year 132   56   188     Columbia Richland, Lexington All year 85   51   136     Greenville Greenville All year 82   56   138   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate SC Hilton Head Beaufort 1/1 - 3/31 $87   $61   $148         4/1 - 8/31 127   61   188         9/1 - 10/31 104   61   165         11/1 - 12/31 87   61   148     Myrtle Beach Horry 1/1 - 3/31 77   51   128         4/1 - 5/31 89   51   140         6/1 - 8/31 116   51   167         9/1 - 10/31 80   51   131         11/1 - 12/31 77   51   128   SD Hot Springs Fall River, Custer 1/1 - 5/31 77   46   123         6/1 - 8/31 101   46   147         9/1 - 12/31 77   46   123     Rapid City Pennington 1/1 - 5/31 77   51   128         6/1 - 8/31 121   51   172         9/1 - 12/31 77   51   128     Sturgis, Spearfish Meade, Butte, Lawrence 1/1 - 5/31 77   51   128         6/1 - 8/31 108   51   159         9/1 - 12/31 77   51   128   TN Brentwood, Franklin Williamson All year 94   56   150     Chattanooga Hamilton All year 88   56   144     Knoxville Knox All year 84   56   140     Memphis Shelby All year 96   61   157     Nashville Davidson All year 110   66   176     Oak Ridge Anderson All year 90   46   136   TX Arlington, Fort Worth, Grapevine Tarrant; City limits of Grapevine All year 138   56   194     Austin Travis All year 104   71   175     Beaumont Jefferson All year 86   51   137     College Station Brazos All year 93   56   149     Corpus Christi Nueces All year 87   51   138     Dallas Dallas; City of Dallas All year 107   71   178     El Paso El Paso All year 88   51   139     Galveston Galveston 1/1 - 2/28 84   56   140         3/1 - 8/31 101   56   157         9/1 - 12/31 84   56   140     Greenville Hunt Before 4/01/2011 78   51   129         After 3/31/2011 86   51   137     Houston Montgomery, Fort Bend, Harris; L. H&r block free state B. H&r block free state Johnson Space Center All year 109   71   180     Laredo Webb All year 78   56   134     McAllen Hidalgo All year 85   56   141     Midland Midland All year 92   51   143     Plano Collin All year 100   61   161     Round Rock Williamson All year 90   51   141     San Antonio Bexar All year 106   66   172     South Padre Island Cameron 1/1 - 5/31 85   56   141         6/1 - 7/31 107   56   163         8/1 - 12/31 85   56   141     Waco McLennan All year 85   51   136   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate UT Moab Grand 1/1 - 2/28 $77   $56   $133         3/1 - 10/31 97   56   153         11/1 - 12/31 77   56   133     Park City Summit 1/1 - 3/31 153   71   224         4/1 - 12/31 89   71   160     Provo Utah All year 80   51   131     Salt Lake City Salt Lake, Tooele All year 95   61   156   VA Cities of Alexandria,   1/1 - 2/28 181   71   252     Fairfax, and Falls   3/1 - 6/30 211   71   282     Church; Counties of   7/1 - 8/31 157   71   228     Arlington and Fairfax   9/1 - 10/31 11/1 - 12/31 211 181   71 71   282 252     Abingdon Washington All year 86   46   132     Blacksburg Montgomery All year 95   46   141     Bowling Green Caroline County Before 4/01/2011 77   46   123         After 3/31/2011 89   56   145     Charlottesville Albemarle, Greene; City of Charlottesville All year 113   56   169     Chesapeake, Suffolk City of Chesapeake, City of Suffolk 1/1 - 5/31 78   56   134         6/1 - 8/31 88   56   144         9/1 - 12/31 78   56   134     Chesterfield, Henrico Counties Chesterfield, Henrico All year 87   51   138     Fredericksburg Stafford, Spotsylvania; City of Fredericksburg All year 89   56   145     James City, York, James City and York Counties; City of 1/1 - 3/31 77   51   128     Williamsburg Williamsburg 4/1 - 8/31 91   51   142         9/1 - 12/31 77   51   128     Loudoun County Loudoun All year 111   61   172     Lynchburg Campbell; City of Lynchburg All year 79   51   130     Manassas City of Manassas All year 82   46   128     Norfolk, Portsmouth City of Norfolk, City of Portsmouth All year 92   61   153     Prince William County Prince William All year 89   56   145     Richmond City City of Richmond All year 114   66   180     Roanoke City limits of Roanoke All year 99   51   150     Virginia Beach City of Virginia Beach 1/1 - 5/31 89   56   145         6/1 - 8/31 144   56   200         9/1 - 12/31 89   56   145     Wallops Island Accomack 1/1 - 6/30 84   56   140         7/1 - 8/31 125   56   181         9/1 - 12/31 84   56   140     Warrenton Fauquier All year 93   46   139   VT Burlington, St. H&r block free state Albans Chittenden, Franklin 1/1 - 5/31 92   66   158         6/1 - 10/31 111   66   177         11/1 - 12/31 92   66   158     Manchester Bennington All year 87   71   158     Middlebury Addison All year 115   61   176     Montpelier Washington All year 100   61   161     Stowe Lamoille 1/1 - 3/31 133   71   204         4/1 - 5/31 101   71   172         6/1 - 12/31 133   71   204   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate VT White River Junction Windsor 1/1 - 2/28 $101   $56   $157         3/1 - 5/31 89   56   145         6/1 - 12/31 101   56   157   WA Anacortes, Coupeville, Oak Harbor San Juan, Skagit, Island All year 90   61   151     Bremerton Kitsap All year 78   66   144     Everett, Lynnwood Snohomish All year 94   61   155     Ocean Shores Grays Harbor 1/1 - 6/30 88   51   139         7/1 - 8/31 107   51   158         9/1 - 12/31 88   51   139     Olympia, Tumwater Thurston All year 86   61   147     Port Angeles, Port Clallam, Jefferson 1/1 - 6/30 94   61   155     Townsend   7/1 - 8/31 123   61   184         9/1 - 12/31 94   61   155     Richland Benton All year 88   46   134     Seattle King All year 139   71   210     Spokane Spokane All year 86   61   147     Tacoma Pierce All year 109   61   170     Vancouver Clark, Cowlitz, Skamania All year 113   56   169   WI Appleton Outagamie All year 81   46   127     Brookfield, Racine Waukesha, Racine All year 87   56   143     Lake Geneva Walworth 1/1 - 5/31 90   51   141         6/1 - 9/30 122   51   173         10/1 - 12/31 90   51   141     Madison Dane All year 88   56   144     Milwaukee Milwaukee All year 95   61   156     Sturgeon Bay Door 1/1 - 6/30 77   56   133         7/1 - 9/30 86   56   142         10/1 - 12/31 77   56   133     Wisconsin Dells Columbia 1/1 - 6/30 77   61   138         7/1 - 8/31 85   61   146         9/1 - 12/31 77   61   138   WV Charleston Kanawha All year 95   51   146     Morgantown Monongalia All year 83   46   129     Shepherdstown Jefferson, Berkeley All year 82   51   133     Wheeling Ohio All year 94   46   140   WY Cody Park 1/1 - 5/31 84   51   135         6/1 - 9/30 117   51   168         10/1 - 12/31 84   51   135     Evanston, Rock Springs Uinta, Sweetwater All year 80   51   131   Table 3. H&r block free state (Effective October 1, 2010 – September 30, 2011) (Continued) Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate WY Gillette Campbell 1/1 - 5/31 $91   $51   $142         6/1 - 8/31 109   51   160         9/1 - 12/31 91   51   142     Jackson, Pinedale Teton, Sublette 1/1 - 6/30 109   56   165         7/1 - 8/31 158   56   214         9/1 - 12/31 109   56   165     Sheridan Sheridan 1/1 - 5/31 77   56   133         6/1 - 8/31 89   56   145         9/1 - 12/31 77   56   133   1Transition rule. H&r block free state In lieu of the updated GSA rates that will be effective October 1, 2011, taxpayers may continue to use the CONUS rates in effect for the first 9 months of 2011 (Table 3) for expenses of all CONUS travel away from home that are paid or incurred during calendar year 2011. H&r block free state A taxpayer must consistently use either these rates or the updated rates for the period of October 1, 2011, through December 31, 2011. H&r block free state See Transition Rules under How To Use Per Diem Rate Tables for an example. H&r block free state    2Unless otherwise specified, the per diem locality is defined as “all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries. H&r block free state ”   3Per diem localities with county definitions shall include “all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately). H&r block free state ” 4When a military installation or Government-related facility (whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the two rates which apply to the cities and/or counties, even though part(s) of such activities may be located outside the defined per diem locality. H&r block free state   Note: Recognizing that all locations are not incorporated cities, the term “city limits” has been used as a general phrase to denote the commonly recognized local boundaries of the location cited. H&r block free state         Table 4. H&r block free state Maximum Federal Per Diem Rates (Effective October 1, 2011 – September 30, 2012)1 Note: The standard rate of $123 ($77 for lodging and $46 for M&IE) applies to all locations within the continental United States (CONUS) not specifically listed below or encompassed by the boundary definition of a listed point. H&r block free state However, the standard CONUS rate applies to all locations within CONUS, including those defined below, for certain relocation allowances. H&r block free state (See parts 302-2, 302-4, and 302-5 of 41 CFR. H&r block free state ) Table 4 lists all per diem rates alphabetically by state abbreviation. H&r block free state Click on a link below to find rates for your state: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas , Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming Per Diem Locality Computing Maximum Rate State Key City2 County and/or Other Defined Location3,4 Effective Dates Maximum  Lodging  Rate M&IE  Rate Maximum  Per Diem  Rate AL Birmingham Jefferson, Shelby All year $86   $56   $142     Gulf Shores Baldwin 1/1 - 5/31 100   51   151         6/1 - 7/31 117   51   168         8/1 - 12/31 100   51   151     Huntsville Madison, Limestone All year 87   51   138     Mobile Mobile All year 94   51   145     Montgomery/Prattville Montgomery/Autauga All year 80   51   131   AR Hot Springs Garland All year 101   46   147     Little Rock Pulaski All year 86   61   147   AZ Grand Canyon, Flagstaff Coconino (except city limits of Sedona), Yavapai 1/1 - 2/29 77   66   143         3/1 - 10/31 97   66   163         11/1 - 12/31 77   66   143     Kayenta Navajo 1/1 - 4/30 79   46   125         5/1 - 9/30 90   46   136         10/1 - 12/31 79   46   125     Phoenix, Scottsdale Maricopa 1/1 - 5/31 128   71   199         6/1 - 8/31 80   71   151         9/1 - 12/31 105   71   176     Sedona City limits of Sedona 1/1 - 2/29 127   66   193         3/1 - 4/30 145   66   211         5/1 - 12/31 127   66   193     Sierra Vista Cochise All year 83   46   129     Tucson Pima 1/1 - 1/31 90   56   146         2/1 - 5/31 103   56   159         6/1 - 8/31 77   56   133         9/1 - 12/31 90   56   146     Yuma Yuma All year 78   46
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H&r block free state 1. H&r block free state   Traditional IRAs Table of Contents What's New for 2013 What's New for 2014 Introduction Who Can Open a Traditional IRA?What Is Compensation? When Can a Traditional IRA Be Opened? How Can a Traditional IRA Be Opened?Individual Retirement Account Individual Retirement Annuity Individual Retirement Bonds Simplified Employee Pension (SEP) Employer and Employee Association Trust Accounts Required Disclosures How Much Can Be Contributed?Limit. H&r block free state When repayment contributions can be made. H&r block free state No deduction. H&r block free state Reserve component. H&r block free state Figuring your IRA deduction. H&r block free state Reporting the repayment. H&r block free state Example. H&r block free state General Limit Kay Bailey Hutchison Spousal IRA Limit Filing Status Less Than Maximum Contributions More Than Maximum Contributions When Can Contributions Be Made? How Much Can You Deduct?Kay Bailey Hutchison Spousal IRA. H&r block free state Are You Covered by an Employer Plan? Limit if Covered by Employer Plan Reporting Deductible Contributions Nondeductible Contributions Examples — Worksheet for Reduced IRA Deduction for 2013 What if You Inherit an IRA?Treating it as your own. H&r block free state Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. H&r block free state Trustee-to-Trustee Transfer Rollovers Transfers Incident To Divorce Converting From Any Traditional IRA Into a Roth IRA Recharacterizations When Can You Withdraw or Use Assets?Contributions Returned Before Due Date of Return When Must You Withdraw Assets? (Required Minimum Distributions)IRA Owners IRA Beneficiaries Which Table Do You Use To Determine Your Required Minimum Distribution? What Age(s) Do You Use With the Table(s)? Miscellaneous Rules for Required Minimum Distributions Are Distributions Taxable?January 2013 QCDs treated as made in 2012. H&r block free state 2013 Reporting. H&r block free state Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. H&r block free state One-time transfer. H&r block free state Testing period rules apply. H&r block free state More information. H&r block free state Distributions Fully or Partly Taxable Figuring the Nontaxable and Taxable Amounts Recognizing Losses on Traditional IRA Investments Other Special IRA Distribution Situations Reporting and Withholding Requirements for Taxable Amounts What Acts Result in Penalties or Additional Taxes?Prohibited Transactions Investment in Collectibles Excess Contributions Early Distributions Excess Accumulations (Insufficient Distributions) Reporting Additional Taxes What's New for 2013 Traditional IRA contribution and deduction limit. H&r block free state  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. H&r block free state If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. H&r block free state For more information, see How Much Can Be Contributed? in this chapter. H&r block free state Modified AGI limit for traditional IRA contributions increased. H&r block free state  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. H&r block free state If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. H&r block free state If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. H&r block free state See How Much Can You Deduct? in this chapter. H&r block free state Net Investment Income Tax. H&r block free state  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). H&r block free state However, these distributions are taken into account when determining the modified adjusted gross income threshold. H&r block free state Distributions from a nonqualified retirement plan are included in net investment income. H&r block free state See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. H&r block free state What's New for 2014 Modified AGI limit for traditional IRA contributions increased. H&r block free state  For 2014, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying widow(er), More than $60,000 but less than $70,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. H&r block free state If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. H&r block free state If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. H&r block free state Introduction This chapter discusses the original IRA. H&r block free state In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. H&r block free state ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. H&r block free state The following are two advantages of a traditional IRA: You may be able to deduct some or all of your contributions to it, depending on your circumstances. H&r block free state Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. H&r block free state Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. H&r block free state You can have a traditional IRA whether or not you are covered by any other retirement plan. H&r block free state However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. H&r block free state See How Much Can You Deduct , later. H&r block free state Both spouses have compensation. H&r block free state   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. H&r block free state You cannot both participate in the same IRA. H&r block free state If you file a joint return, only one of you needs to have compensation. H&r block free state What Is Compensation? Generally, compensation is what you earn from working. H&r block free state For a summary of what compensation does and does not include, see Table 1-1. H&r block free state Compensation includes all of the items discussed next (even if you have more than one type). H&r block free state Wages, salaries, etc. H&r block free state   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. H&r block free state The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). H&r block free state Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. H&r block free state Commissions. H&r block free state   An amount you receive that is a percentage of profits or sales price is compensation. H&r block free state Self-employment income. H&r block free state   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deduction allowed for the deductible part of your self-employment taxes. H&r block free state   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. H&r block free state Self-employment loss. H&r block free state   If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation. H&r block free state Alimony and separate maintenance. H&r block free state   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. H&r block free state Nontaxable combat pay. H&r block free state   If you were a member of the U. H&r block free state S. H&r block free state Armed Forces, compensation includes any nontaxable combat pay you received. H&r block free state This amount should be reported in box 12 of your 2013 Form W-2 with code Q. H&r block free state Table 1-1. H&r block free state Compensation for Purposes of an IRA Includes . H&r block free state . H&r block free state . H&r block free state Does not include . H&r block free state . H&r block free state . H&r block free state   earnings and profits from property. H&r block free state wages, salaries, etc. H&r block free state     interest and dividend income. H&r block free state commissions. H&r block free state     pension or annuity income. H&r block free state self-employment income. H&r block free state     deferred compensation. H&r block free state alimony and separate maintenance. H&r block free state     income from certain  partnerships. H&r block free state nontaxable combat pay. H&r block free state     any amounts you exclude from income. H&r block free state     What Is Not Compensation? Compensation does not include any of the following items. H&r block free state Earnings and profits from property, such as rental income, interest income, and dividend income. H&r block free state Pension or annuity income. H&r block free state Deferred compensation received (compensation payments postponed from a past year). H&r block free state Income from a partnership for which you do not provide services that are a material income-producing factor. H&r block free state Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. H&r block free state Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. H&r block free state When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. H&r block free state However, the time for making contributions for any year is limited. H&r block free state See When Can Contributions Be Made , later. H&r block free state How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. H&r block free state You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. H&r block free state You can also open an IRA through your stockbroker. H&r block free state Any IRA must meet Internal Revenue Code requirements. H&r block free state The requirements for the various arrangements are discussed below. H&r block free state Kinds of traditional IRAs. H&r block free state   Your traditional IRA can be an individual retirement account or annuity. H&r block free state It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. H&r block free state Individual Retirement Account An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. H&r block free state The account is created by a written document. H&r block free state The document must show that the account meets all of the following requirements. H&r block free state The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian. H&r block free state The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. H&r block free state However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. H&r block free state Contributions, except for rollover contributions, must be in cash. H&r block free state See Rollovers , later. H&r block free state You must have a nonforfeitable right to the amount at all times. H&r block free state Money in your account cannot be used to buy a life insurance policy. H&r block free state Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. H&r block free state You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. H&r block free state See When Must You Withdraw Assets? (Required Minimum Distributions) , later. H&r block free state Individual Retirement Annuity You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. H&r block free state An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. H&r block free state An individual retirement annuity must meet all the following requirements. H&r block free state Your entire interest in the contract must be nonforfeitable. H&r block free state The contract must provide that you cannot transfer any portion of it to any person other than the issuer. H&r block free state There must be flexible premiums so that if your compensation changes, your payment can also change. H&r block free state This provision applies to contracts issued after November 6, 1978. H&r block free state The contract must provide that contributions cannot be more than the deductible amount for an IRA for the year, and that you must use any refunded premiums to pay for future premiums or to buy more benefits before the end of the calendar year after the year in which you receive the refund. H&r block free state Distributions must begin by April 1 of the year following the year in which you reach age 70½. H&r block free state See When Must You Withdraw Assets? (Required Minimum Distributions) , later. H&r block free state Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. H&r block free state The bonds have the following features. H&r block free state They stop earning interest when you reach age 70½. H&r block free state If you die, interest will stop 5 years after your death, or on the date you would have reached age 70½, whichever is earlier. H&r block free state You cannot transfer the bonds. H&r block free state If you cash (redeem) the bonds before the year in which you reach age 59½, you may be subject to a 10% additional tax. H&r block free state See Age 59½ Rule under Early Distributions, later. H&r block free state You can roll over redemption proceeds into IRAs. H&r block free state Simplified Employee Pension (SEP) A simplified employee pension (SEP) is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (a SEP IRA) set up for you to receive such contributions. H&r block free state Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. H&r block free state See Publication 560 for more information about SEPs. H&r block free state Employer and Employee Association Trust Accounts Your employer or your labor union or other employee association can set up a trust to provide individual retirement accounts for employees or members. H&r block free state The requirements for individual retirement accounts apply to these traditional IRAs. H&r block free state Required Disclosures The trustee or issuer (sometimes called the sponsor) of your traditional IRA generally must give you a disclosure statement at least 7 days before you open your IRA. H&r block free state However, the sponsor does not have to give you the statement until the date you open (or purchase, if earlier) your IRA, provided you are given at least 7 days from that date to revoke the IRA. H&r block free state The disclosure statement must explain certain items in plain language. H&r block free state For example, the statement should explain when and how you can revoke the IRA, and include the name, address, and telephone number of the person to receive the notice of cancellation. H&r block free state This explanation must appear at the beginning of the disclosure statement. H&r block free state If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. H&r block free state The sponsor must report on the appropriate IRS forms both your contribution to the IRA (unless it was made by a trustee-to-trustee transfer) and the amount returned to you. H&r block free state These requirements apply to all sponsors. H&r block free state How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. H&r block free state These limits and rules are explained below. H&r block free state Community property laws. H&r block free state   Except as discussed later under Kay Bailey Hutchison Spousal IRA Limit , each spouse figures his or her limit separately, using his or her own compensation. H&r block free state This is the rule even in states with community property laws. H&r block free state Brokers' commissions. H&r block free state   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. H&r block free state For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. H&r block free state Trustees' fees. H&r block free state   Trustees' administrative fees are not subject to the contribution limit. H&r block free state For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. H&r block free state Qualified reservist repayments. H&r block free state   If you were a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined later under Early Distributions) you received. H&r block free state You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. H&r block free state To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or a similar arrangement. H&r block free state Limit. H&r block free state   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. H&r block free state When repayment contributions can be made. H&r block free state   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. H&r block free state No deduction. H&r block free state   You cannot deduct qualified reservist repayments. H&r block free state Reserve component. H&r block free state   The term “reserve component” means the: Army National Guard of the United States, Army Reserve, Naval Reserve, Marine Corps Reserve, Air National Guard of the United States, Air Force Reserve, Coast Guard Reserve, or Reserve Corps of the Public Health Service. H&r block free state Figuring your IRA deduction. H&r block free state   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. H&r block free state Reporting the repayment. H&r block free state   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. H&r block free state Example. H&r block free state   In 2013, your IRA contribution limit is $5,500. H&r block free state However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. H&r block free state You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). H&r block free state In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. H&r block free state   For 2013, you can contribute a total of $8,500 to your IRA. H&r block free state This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $2,000; and a $3,000 qualified reservist repayment. H&r block free state You contribute the maximum allowable for the year. H&r block free state Since you are making a nondeductible contribution ($2,000) and a qualified reservist repayment ($3,000), you must file Form 8606 with your return and include $5,000 ($2,000 + $3,000) on line 1 of Form 8606. H&r block free state The qualified reservist repayment is not deductible. H&r block free state Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. H&r block free state See chapter 2 for information about Roth IRAs. H&r block free state General Limit For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation (defined earlier) for the year. H&r block free state Note. H&r block free state This limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). H&r block free state This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. H&r block free state (See Nondeductible Contributions , later. H&r block free state ) Qualified reservist repayments do not affect this limit. H&r block free state Examples. H&r block free state George, who is 34 years old and single, earns $24,000 in 2013. H&r block free state His IRA contributions for 2013 are limited to $5,500. H&r block free state Danny, an unmarried college student working part time, earns $3,500 in 2013. H&r block free state His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. H&r block free state More than one IRA. H&r block free state   If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your traditional IRAs for the year. H&r block free state Annuity or endowment contracts. H&r block free state   If you invest in an annuity or endowment contract under an individual retirement annuity, no more than $5,500 ($6,500 if you are age 50 or older) can be contributed toward its cost for the tax year, including the cost of life insurance coverage. H&r block free state If more than this amount is contributed, the annuity or endowment contract is disqualified. H&r block free state Kay Bailey Hutchison Spousal IRA Limit For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts: $5,500 ($6,500 if you are age 50 or older), or The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. H&r block free state Your spouse's IRA contribution for the year to a traditional IRA. H&r block free state Any contributions for the year to a Roth IRA on behalf of your spouse. H&r block free state This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is age 50 or older or $13,000 if both of you are age 50 or older). H&r block free state Note. H&r block free state This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). H&r block free state Example. H&r block free state Kristin, a full-time student with no taxable compensation, marries Carl during the year. H&r block free state Neither of them was age 50 by the end of 2013. H&r block free state For the year, Carl has taxable compensation of $30,000. H&r block free state He plans to contribute (and deduct) $5,500 to a traditional IRA. H&r block free state If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. H&r block free state This is because Kristin, who has no compensation, can add Carl's compensation, reduced by the amount of his IRA contribution ($30,000 − $5,500 = $24,500), to her own compensation (-0-) to figure her maximum contribution to a traditional IRA. H&r block free state In her case, $5,500 is her contribution limit, because $5,500 is less than $24,500 (her compensation for purposes of figuring her contribution limit). H&r block free state Filing Status Generally, except as discussed earlier under Kay Bailey Hutchison Spousal IRA Limit , your filing status has no effect on the amount of allowable contributions to your traditional IRA. H&r block free state However, if during the year either you or your spouse was covered by a retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and income. H&r block free state See How Much Can You Deduct , later. H&r block free state Example. H&r block free state Tom and Darcy are married and both are 53. H&r block free state They both work and each has a traditional IRA. H&r block free state Tom earned $3,800 and Darcy earned $48,000 in 2013. H&r block free state Because of the Kay Bailey Hutchison Spousal IRA limit rule, even though Tom earned less than $6,500, they can contribute up to $6,500 to his IRA for 2013 if they file a joint return. H&r block free state They can contribute up to $6,500 to Darcy's IRA. H&r block free state If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. H&r block free state Less Than Maximum Contributions If contributions to your traditional IRA for a year were less than the limit, you cannot contribute more after the due date of your return for that year to make up the difference. H&r block free state Example. H&r block free state Rafael, who is 40, earns $30,000 in 2013. H&r block free state Although he can contribute up to $5,500 for 2013, he contributes only $3,000. H&r block free state After April 15, 2014, Rafael cannot make up the difference between his actual contributions for 2013 ($3,000) and his 2013 limit ($5,500). H&r block free state He cannot contribute $2,500 more than the limit for any later year. H&r block free state More Than Maximum Contributions If contributions to your IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. H&r block free state However, a penalty or additional tax may apply. H&r block free state See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. H&r block free state When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). H&r block free state Contributions must be in the form of money (cash, check, or money order). H&r block free state Property cannot be contributed. H&r block free state Although property cannot be contributed, your IRA may invest in certain property. H&r block free state For example, your IRA may purchase shares of stock. H&r block free state For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. H&r block free state You may be able to transfer or roll over certain property from one retirement plan to another. H&r block free state See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . H&r block free state You can make a contribution to your IRA by having your income tax refund (or a portion of your refund), if any, paid directly to your traditional IRA, Roth IRA, or SEP IRA. H&r block free state For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). H&r block free state Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. H&r block free state For any year in which you do not work, contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation. H&r block free state See Who Can Open a Traditional IRA , earlier. H&r block free state Even if contributions cannot be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. H&r block free state Contributions can resume for any years that you qualify. H&r block free state Contributions must be made by due date. H&r block free state   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. H&r block free state For most people, this means that contributions for 2013 must be made by April 15, 2014, and contributions for 2014 must be made by April 15, 2015. H&r block free state Age 70½ rule. H&r block free state   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. H&r block free state   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. H&r block free state If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. H&r block free state Designating year for which contribution is made. H&r block free state   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. H&r block free state If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). H&r block free state Filing before a contribution is made. H&r block free state    You can file your return claiming a traditional IRA contribution before the contribution is actually made. H&r block free state Generally, the contribution must be made by the due date of your return, not including extensions. H&r block free state Contributions not required. H&r block free state   You do not have to contribute to your traditional IRA for every tax year, even if you can. H&r block free state How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if applicable) explained earlier under How Much Can Be Contributed . H&r block free state However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. H&r block free state See Limit if Covered by Employer Plan , later. H&r block free state You may be able to claim a credit for contributions to your traditional IRA. H&r block free state For more information, see chapter 4. H&r block free state Trustees' fees. H&r block free state   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. H&r block free state However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). H&r block free state For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. H&r block free state Brokers' commissions. H&r block free state   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. H&r block free state Full deduction. H&r block free state   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more of your traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older), or 100% of your compensation. H&r block free state   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. H&r block free state Kay Bailey Hutchison Spousal IRA. H&r block free state   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of: $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older), or The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. H&r block free state The IRA deduction for the year of the spouse with the greater compensation. H&r block free state Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. H&r block free state Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. H&r block free state   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. H&r block free state Note. H&r block free state If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. H&r block free state After a divorce or legal separation, you can deduct only the contributions to your own IRA. H&r block free state Your deductions are subject to the rules for single individuals. H&r block free state Covered by an employer retirement plan. H&r block free state   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. H&r block free state This is discussed later under Limit if Covered by Employer Plan . H&r block free state Limits on the amount you can deduct do not affect the amount that can be contributed. H&r block free state Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. H&r block free state The “Retirement Plan” box should be checked if you were covered. H&r block free state Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. H&r block free state If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. H&r block free state Federal judges. H&r block free state   For purposes of the IRA deduction, federal judges are covered by an employer plan. H&r block free state For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. H&r block free state These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. H&r block free state Tax year. H&r block free state   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. H&r block free state For almost all people, the tax year is the calendar year. H&r block free state Defined contribution plan. H&r block free state   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. H&r block free state However, also see Situations in Which You Are Not Covered , later. H&r block free state   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. H&r block free state In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. H&r block free state The level of benefits actually provided to a participant depends on the total amount contributed to that participant's account and any earnings and losses on those contributions. H&r block free state Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. H&r block free state Example. H&r block free state Company A has a money purchase pension plan. H&r block free state Its plan year is from July 1 to June 30. H&r block free state The plan provides that contributions must be allocated as of June 30. H&r block free state Bob, an employee, leaves Company A on December 31, 2012. H&r block free state The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. H&r block free state Because an amount is contributed to Bob's account for the plan year, Bob is covered by the plan for his 2013 tax year. H&r block free state   A special rule applies to certain plans in which it is not possible to determine if an amount will be contributed to your account for a given plan year. H&r block free state If, for a plan year, no amounts have been allocated to your account that are attributable to employer contributions, employee contributions, or forfeitures, by the last day of the plan year, and contributions are discretionary for the plan year, you are not covered for the tax year in which the plan year ends. H&r block free state If, after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in which the contribution is made. H&r block free state Example. H&r block free state Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. H&r block free state The plan year runs from July 1 to June 30. H&r block free state Under the terms of the plan, employer contributions do not have to be made, but if they are made, they are contributed to the plan before the due date for filing the company's tax return. H&r block free state Such contributions are allocated as of the last day of the plan year, and allocations are made to the accounts of individuals who have any service during the plan year. H&r block free state As of June 30, 2013, no contributions were made that were allocated to the June 30, 2013, plan year, and no forfeitures had been allocated within the plan year. H&r block free state In addition, as of that date, the company was not obligated to make a contribution for such plan year and it was impossible to determine whether or not a contribution would be made for the plan year. H&r block free state On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. H&r block free state That contribution was made on February 15, 2014. H&r block free state Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. H&r block free state No vested interest. H&r block free state   If an amount is allocated to your account for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the account. H&r block free state Defined benefit plan. H&r block free state   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. H&r block free state This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. H&r block free state   A defined benefit plan is any plan that is not a defined contribution plan. H&r block free state In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. H&r block free state The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. H&r block free state Defined benefit plans include pension plans and annuity plans. H&r block free state Example. H&r block free state Nick, an employee of Company B, is eligible to participate in Company B's defined benefit plan, which has a July 1 to June 30 plan year. H&r block free state Nick leaves Company B on December 31, 2012. H&r block free state Because Nick is eligible to participate in the plan for its year ending June 30, 2013, he is covered by the plan for his 2013 tax year. H&r block free state No vested interest. H&r block free state   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. H&r block free state Situations in Which You Are Not Covered Unless you are covered by another employer plan, you are not covered by an employer plan if you are in one of the situations described below. H&r block free state Social security or railroad retirement. H&r block free state   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. H&r block free state Benefits from previous employer's plan. H&r block free state   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. H&r block free state Reservists. H&r block free state   If the only reason you participate in a plan is because you are a member of a reserve unit of the Armed Forces, you may not be covered by the plan. H&r block free state You are not covered by the plan if both of the following conditions are met. H&r block free state The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. H&r block free state You did not serve more than 90 days on active duty during the year (not counting duty for training). H&r block free state Volunteer firefighters. H&r block free state   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. H&r block free state You are not covered by the plan if both of the following conditions are met. H&r block free state The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. H&r block free state Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. H&r block free state Limit if Covered by Employer Plan As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. H&r block free state Your deduction is also affected by how much income you had and by your filing status. H&r block free state Your deduction may also be affected by social security benefits you received. H&r block free state Reduced or no deduction. H&r block free state   If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. H&r block free state   Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. H&r block free state These amounts vary depending on your filing status. H&r block free state   To determine if your deduction is subject to the phaseout, you must determine your modified adjusted gross income (AGI) and your filing status, as explained later under Deduction Phaseout . H&r block free state Once you have determined your modified AGI and your filing status, you can use Table 1-2 or Table 1-3 to determine if the phaseout applies. H&r block free state Social Security Recipients Instead of using Table 1-2 or Table 1-3 and Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, later, complete the worksheets in Appendix B of this publication if, for the year, all of the following apply. H&r block free state You received social security benefits. H&r block free state You received taxable compensation. H&r block free state Contributions were made to your traditional IRA. H&r block free state You or your spouse was covered by an employer retirement plan. H&r block free state Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. H&r block free state Appendix B includes an example with filled-in worksheets to assist you. H&r block free state Table 1-2. H&r block free state Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. H&r block free state IF your filing status is . H&r block free state . H&r block free state . H&r block free state AND your modified adjusted gross income (modified AGI) is . H&r block free state . H&r block free state . H&r block free state THEN you can take . H&r block free state . H&r block free state . H&r block free state single or head of household $59,000 or less a full deduction. H&r block free state more than $59,000 but less than $69,000 a partial deduction. H&r block free state $69,000 or more no deduction. H&r block free state married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. H&r block free state more than $95,000 but less than $115,000 a partial deduction. H&r block free state $115,000 or more no deduction. H&r block free state married filing separately2 less than $10,000 a partial deduction. H&r block free state $10,000 or more no deduction. H&r block free state 1 Modified AGI (adjusted gross income). H&r block free state See Modified adjusted gross income (AGI) , later. H&r block free state  2 If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” filing status). H&r block free state Table 1-3. H&r block free state Effect of Modified AGI1 on Deduction if You Are NOT Covered by a Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. H&r block free state IF your filing status is . H&r block free state . H&r block free state . H&r block free state AND your modified adjusted gross income (modified AGI) is . H&r block free state . H&r block free state . H&r block free state THEN you can take . H&r block free state . H&r block free state . H&r block free state single, head of household, or qualifying widow(er) any amount a full deduction. H&r block free state married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. H&r block free state married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. H&r block free state more than $178,000 but less than $188,000 a partial deduction. H&r block free state $188,000 or more no deduction. H&r block free state married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. H&r block free state $10,000 or more no deduction. H&r block free state 1 Modified AGI (adjusted gross income). H&r block free state See Modified adjusted gross income (AGI) , later. H&r block free state  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. H&r block free state For 2014, if you are not covered by a retirement plan at work and you are married filing jointly with a spouse who is covered by a plan at work, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. H&r block free state If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. H&r block free state Deduction Phaseout The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan. H&r block free state Covered by a retirement plan. H&r block free state   If you are covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI, as shown in Table 1-2. H&r block free state For 2014, if you are covered by a retirement plan at work, your IRA deduction will not be reduced (phased out) unless your modified AGI is: More than $60,000 but less than $70,000 for a single individual (or head of household), More than $96,000 but less than $116,000 for a married couple filing a joint return (or a qualifying widow(er)), or Less than $10,000 for a married individual filing a separate return. H&r block free state If your spouse is covered. H&r block free state   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 1-3. H&r block free state Filing status. H&r block free state   Your filing status depends primarily on your marital status. H&r block free state For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. H&r block free state If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. H&r block free state Lived apart from spouse. H&r block free state   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. H&r block free state Modified adjusted gross income (AGI). H&r block free state   You can use Worksheet 1-1 to figure your modified AGI. H&r block free state If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Both contributions for 2013 and distributions in 2013 , later. H&r block free state    Do not assume that your modified AGI is the same as your compensation. H&r block free state Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. H&r block free state Form 1040. H&r block free state   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. H&r block free state IRA deduction. H&r block free state Student loan interest deduction. H&r block free state Tuition and fees deduction. H&r block free state Domestic production activities deduction. H&r block free state Foreign earned income exclusion. H&r block free state Foreign housing exclusion or deduction. H&r block free state Exclusion of qualified savings bond interest shown on Form 8815. H&r block free state Exclusion of employer-provided adoption benefits shown on Form 8839. H&r block free state This is your modified AGI. H&r block free state Form 1040A. H&r block free state   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. H&r block free state IRA deduction. H&r block free state Student loan interest deduction. H&r block free state Tuition and fees deduction. H&r block free state Exclusion of qualified savings bond interest shown on Form 8815. H&r block free state This is your modified AGI. H&r block free state Form 1040NR. H&r block free state   If you file Form 1040NR, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. H&r block free state IRA deduction. H&r block free state Student loan interest deduction. H&r block free state Domestic production activities deduction. H&r block free state Exclusion of qualified savings bond interest shown on Form 8815. H&r block free state Exclusion of employer-provided adoption benefits shown on Form 8839. H&r block free state This is your modified AGI. H&r block free state Income from IRA distributions. H&r block free state   If you received distributions in 2013 from one or more traditional IRAs and your traditional IRAs include only deductible contributions, the distributions are fully taxable and are included in your modified AGI. H&r block free state Both contributions for 2013 and distributions in 2013. H&r block free state   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. H&r block free state You received distributions in 2013 from one or more traditional IRAs, You made contributions to a traditional IRA for 2013, and Some of those contributions may be nondeductible contributions. H&r block free state (See Nondeductible Contributions and Worksheet 1-2, later. H&r block free state ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. H&r block free state To do this, you can use Worksheet 1-5, later. H&r block free state   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. H&r block free state How To Figure Your Reduced IRA Deduction If you or your spouse is covered by an employer retirement plan and you did not receive any social security benefits, you can figure your reduced IRA deduction by using Worksheet 1-2. H&r block free state Figuring Your Reduced IRA Deduction for 2013. H&r block free state The Instructions for Form 1040, Form 1040A, and Form 1040NR include similar worksheets that you can use instead of the worksheet in this publication. H&r block free state If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients , earlier. H&r block free state Note. H&r block free state If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. H&r block free state Worksheet 1-1. H&r block free state Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. H&r block free state 1. H&r block free state Enter your adjusted gross income (AGI) from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37, figured without taking into account the amount from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 1. H&r block free state   2. H&r block free state Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. H&r block free state   3. H&r block free state Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. H&r block free state   4. H&r block free state Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. H&r block free state   5. H&r block free state Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. H&r block free state   6. H&r block free state Enter any foreign housing deduction from Form 2555, line 50 6. H&r block free state   7. H&r block free state Enter any excludable savings bond interest from Form 8815, line 14 7. H&r block free state   8. H&r block free state Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. H&r block free state   9. H&r block free state Add lines 1 through 8. H&r block free state This is your Modified AGI for traditional IRA purposes 9. H&r block free state   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. H&r block free state If you file Form 1040A, enter your IRA deduction on line 17 of that form. H&r block free state If you file Form 1040NR, enter your IRA deduction on line 32 of that form. H&r block free state You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. H&r block free state Self-employed. H&r block free state   If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Form 1040, line 28. H&r block free state If you file Form 1040NR, enter your deduction on line 28 of that form. H&r block free state Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA of up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. H&r block free state The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. H&r block free state Example. H&r block free state Tony is 29 years old and single. H&r block free state In 2013, he was covered by a retirement plan at work. H&r block free state His salary is $62,000. H&r block free state His modified AGI is $70,000. H&r block free state Tony makes a $5,500 IRA contribution for 2013. H&r block free state Because he was covered by a retirement plan and his modified AGI is above $69,000, he cannot deduct his $5,500 IRA contribution. H&r block free state He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. H&r block free state Repayment of reservist distributions. H&r block free state   Nondeductible contributions may include repayments of qualified reservist distributions. H&r block free state For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. H&r block free state Form 8606. H&r block free state   To designate contributions as nondeductible, you must file Form 8606. H&r block free state (See the filled-in Forms 8606 in this chapter. H&r block free state )   You do not have to designate a contribution as nondeductible until you file your tax return. H&r block free state When you file, you can even designate otherwise deductible contributions as nondeductible contributions. H&r block free state   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. H&r block free state    A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. H&r block free state In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. H&r block free state See Form 8606 under Distributions Fully or Partly Taxable, later. H&r block free state Failure to report nondeductible contributions. H&r block free state   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. H&r block free state All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. H&r block free state Penalty for overstatement. H&r block free state   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. H&r block free state Penalty for failure to file Form 8606. H&r block free state   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. H&r block free state Tax on earnings on nondeductible contributions. H&r block free state   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. H&r block free state Cost basis. H&r block free state   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. H&r block free state Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. H&r block free state    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. H&r block free state See Are Distributions Taxable, later, for more information. H&r block free state Recordkeeping. H&r block free state There is a recordkeeping worksheet, Appendix A. H&r block free state Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. H&r block free state Examples — Worksheet for Reduced IRA Deduction for 2013 The following examples illustrate the use of Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013. H&r block free state Example 1. H&r block free state For 2013, Tom and Betty file a joint return on Form 1040. H&r block free state They are both 39 years old. H&r block free state They are both employed and Tom is covered by his employer's retirement plan. H&r block free state Tom's salary is $59,000 and Betty's is $32,555. H&r block free state They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. H&r block free state Because their modified AGI is between $95,000 and $115,000 and Tom is covered by an employer plan, Tom is subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . H&r block free state For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. H&r block free state Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. H&r block free state Tom can take a deduction of only $5,080. H&r block free state He can choose to treat the $5,080 as either deductible or nondeductible contributions. H&r block free state He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. H&r block free state He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. H&r block free state Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. H&r block free state Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. H&r block free state Betty figures her IRA deduction as follows. H&r block free state Betty can treat all or part of her contributions as either deductible or nondeductible. H&r block free state This is because her $5,500 contribution for 2013 is not subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . H&r block free state She does not need to use Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, because their modified AGI is not within the phaseout range that applies. H&r block free state Betty decides to treat her $5,500 IRA contributions as deductible. H&r block free state The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. H&r block free state Example 2. H&r block free state For 2013, Ed and Sue file a joint return on Form 1040. H&r block free state They are both 39 years old. H&r block free state Ed is covered by his employer's retirement plan. H&r block free state Ed's salary is $45,000. H&r block free state Sue had no compensation for the year and did not contribute to an IRA. H&r block free state Sue is not covered by an employer plan. H&r block free state Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). H&r block free state Their combined modified AGI, which includes $2,000 interest and dividend income and a large capital gain from the sale of stock, is $180,555. H&r block free state Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. H&r block free state He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. H&r block free state Sue figures her IRA deduction as shown on Worksheet 1-2. H&r block free state Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. H&r block free state Worksheet 1-2. H&r block free state Figuring Your Reduced IRA Deduction for 2013 (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. H&r block free state ) Note. H&r block free state If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. H&r block free state IF you . H&r block free state . H&r block free state . H&r block free state AND your  filing status is . H&r block free state . H&r block free state . H&r block free state AND your modified AGI is over . H&r block free state . H&r block free state . H&r block free state THEN enter on  line 1 below . H&r block free state . H&r block free state . H&r block free state       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. H&r block free state Enter applicable amount from table above 1. H&r block free state   2. H&r block free state Enter your modified AGI (that of both spouses, if married filing jointly) 2. H&r block free state     Note. H&r block free state If line 2 is equal to or more than the amount on line 1, stop here. H&r block free state  Your IRA contributions are not deductible. H&r block free state See Nondeductible Contributions , earlier. H&r block free state     3. H&r block free state Subtract line 2 from line 1. H&r block free state If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. H&r block free state You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. H&r block free state   4. H&r block free state Multiply line 3 by the percentage below that applies to you. H&r block free state If the result is not a multiple of $10, round it to the next highest multiple of $10. H&r block free state (For example, $611. H&r block free state 40 is rounded to $620. H&r block free state ) However, if the result is less than $200, enter $200. H&r block free state         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. H&r block free state 5% (. H&r block free state 275) (by 32. H&r block free state 5% (. H&r block free state 325) if you are age 50 or older). H&r block free state All others, multiply line 3 by 55% (. H&r block free state 55) (by 65% (. H&r block free state 65) if you are age 50 or older). H&r block free state 4. H&r block free state   5. H&r block free state Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). H&r block free state If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. H&r block free state If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. H&r block free state   6. H&r block free state Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). H&r block free state If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. H&r block free state 6. H&r block free state   7. H&r block free state IRA deduction. H&r block free state Compare lines 4, 5, and 6. H&r block free state Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. H&r block free state If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. H&r block free state   8. H&r block free state Nondeductible contribution. H&r block free state Subtract line 7 from line 5 or 6, whichever is smaller. H&r block free state  Enter the result here and on line 1 of your Form 8606 8. H&r block free state   Worksheet 1-2. H&r block free state Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. H&r block free state ) Note. H&r block free state If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. H&r block free state IF you . H&r block free state . H&r block free state . H&r block free state AND your  filing status is . H&r block free state . H&r block free state . H&r block free state AND your modified AGI is over . H&r block free state . H&r block free state . H&r block free state THEN enter on  line 1 below . H&r block free state . H&r block free state . H&r block free state       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. H&r block free state Enter applicable amount from table above 1. H&r block free state 115,000 2. H&r block free state Enter your modified AGI (that of both spouses, if married filing jointly) 2. H&r block free state 96,555   Note. H&r block free state If line 2 is equal to or more than the amount on line 1, stop here. H&r block free state  Your IRA contributions are not deductible. H&r block free state See Nondeductible Contributions , earlier. H&r block free state     3. H&r block free state Subtract line 2 from line 1. H&r block free state If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. H&r block free state You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. H&r block free state 18,445 4. H&r block free state Multiply line 3 by the percentage below that applies to you. H&r block free state If the result is not a multiple of $10, round it to the next highest multiple of $10. H&r block free state (For example, $611. H&r block free state 40 is rounded to $620. H&r block free state ) However, if the result is less than $200, enter $200. H&r block free state         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. H&r block free state 5% (. H&r block free state 275) (by 32. H&r block free state 5% (. H&r block free state 325) if you are age 50 or older). H&r block free state All others, multiply line 3 by 55% (. H&r block free state 55) (by 65% (. H&r block free state 65) if you are age 50 or older). H&r block free state 4. H&r block free state 5,080 5. H&r block free state Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). H&r block free state If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. H&r block free state If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. H&r block free state 59,000 6. H&r block free state Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). H&r block free state If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. H&r block free state 6. H&r block free state 5,500 7. H&r block free state IRA deduction. H&r block free state Compare lines 4, 5, and 6. H&r block free state Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. H&r block free state If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. H&r block free state 5,080 8. H&r block free state Nondeductible contribution. H&r block free state Subtract line 7 from line 5 or 6, whichever is smaller. H&r block free state  Enter the result here and on line 1 of your Form 8606 8. H&r block free state 420 Worksheet 1-2. H&r block free state Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. H&r block free state ) Note. H&r block free state If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. H&r block free state IF you . H&r block free state . H&r block free state . H&r block free state AND your  filing status is . H&r block free state . H&r block free state . H&r block free state AND your modified AGI is over . H&r block free state . H&r block free state . H&r block free state THEN enter on  line 1 below . H&r block free state . H&r block free state . H&r block free state       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. H&r block free state Enter applicable amount from table above 1. H&r block free state 188,000 2. H&r block free state Enter your modified AGI (that of both spouses, if married filing jointly) 2. H&r block free state 180,555   Note. H&r block free state If line 2 is equal to or more than the amount on line 1, stop here. H&r block free state  Your IRA contributions are not deductible. H&r block free state See Nondeductible Contributions , earlier. H&r block free state     3. H&r block free state Subtract line 2 from line 1. H&r block free state If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. H&r block free state You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. H&r block free state 7,445 4. H&r block free state Multiply line 3 by the percentage below that applies to you. H&r block free state If the result is not a multiple of $10, round it to the next highest multiple of $10. H&r block free state (For example, $611. H&r block free state 40 is rounded to $620. H&r block free state ) However, if the result is less than $200, enter $200. H&r block free state         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. H&r block free state 5% (. H&r block free state 275) (by 32. H&r block free state 5% (. H&r block free state 325) if you are age 50 or older). H&r block free state All others, multiply line 3 by 55% (. H&r block free state 55) (by 65% (. H&r block free state 65) if you are age 50 or older). H&r block free state 4. H&r block free state 4,100 5. H&r block free state Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). H&r block free state If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. H&r block free state If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. H&r block free state 39,500 6. H&r block free state Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). H&r block free state If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. H&r block free state 6. H&r block free state 5,500 7. H&r block free state IRA deduction. H&r block free state Compare lines 4, 5, and 6. H&r block free state Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. H&r block free state If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. H&r block free state 4,100 8. H&r block free state Nondeductible contribution. H&r block free state Subtract line 7 from line 5 or 6, whichever is smaller. H&r block free state  Enter the result here and on line 1 of your Form 8606 8. H&r block free state 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. H&r block free state A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. H&r block free state Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. H&r block free state Inherited from spouse. H&r block free state   If you inherit a traditional IRA from your spouse, you generally have the following three choices. H&r block free state You can: Treat it as your own IRA by designating yourself as the account owner. H&r block free state Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (s