File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Irs Tax Amendment Form

File Form 1040x OnlineFile Only State Taxes Online FreeHow To File 2010 Taxes Online1040nr Instructions 2012Irs Tax Forms2011 1040Vita Tax AssistanceTurbotax Amended Return 20112012 1040 Tax Return FormAmending Tax Return TurbotaxH & R Block Online TaxesFile 2009 Tax Return TurbotaxState Tax Return FormsFile My 2012 Taxes Online FreeIrs Forms 1040 20111040ez Tax FormFree Tax Extension FormTaxes 2012Can You Still E File 2011 Tax ReturnsAmending A 2011 Tax Return1040Can You File An Amended Tax Return OnlineCan I Efile Form 1040xIrs Form 1040v2012 Tax Form 940H&r Tax CutWhere To Get 2012 Tax Forms1040ez Tax Forms To PrintFree Online 1040ez Filing2012 Form 1040ez1040ez2012 Income Tax BookletIrs Gov Form 1040ezTaxes For 2011Www Irs Gov Form1040xAmend My TaxesWhat Is 1040xFile 1040 EzFree Tax FilingIrs Tax Form 1040ez 2011

Irs Tax Amendment Form

Irs tax amendment form 2. Irs tax amendment form   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. Irs tax amendment form Surviving spouse. Irs tax amendment form Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. Irs tax amendment form Payments from a state fund for victims of crime. Irs tax amendment form Home Affordable Modification Program (HAMP). Irs tax amendment form Mortgage assistance payments. Irs tax amendment form Payments to reduce cost of winter energy use. Irs tax amendment form Nutrition Program for the Elderly. Irs tax amendment form Reemployment Trade Adjustment Assistance (RTAA). Irs tax amendment form Generally, income is taxable unless it is specifically exempt (not taxed) by law. Irs tax amendment form Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. Irs tax amendment form Under special provisions of the law, certain items are partially or fully exempt from tax. Irs tax amendment form Provisions that are of special interest to older taxpayers are discussed in this chapter. Irs tax amendment form Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. Irs tax amendment form In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. Irs tax amendment form You need not receive the compensation in cash for it to be taxable. Irs tax amendment form Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. Irs tax amendment form Volunteer work. Irs tax amendment form   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. Irs tax amendment form Retired Senior Volunteer Program (RSVP). Irs tax amendment form Foster Grandparent Program. Irs tax amendment form Senior Companion Program. Irs tax amendment form Service Corps of Retired Executives (SCORE). Irs tax amendment form Unemployment compensation. Irs tax amendment form   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. Irs tax amendment form More information. Irs tax amendment form   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. Irs tax amendment form Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. Irs tax amendment form A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. Irs tax amendment form A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. Irs tax amendment form A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. Irs tax amendment form More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. Irs tax amendment form Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. Irs tax amendment form Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. Irs tax amendment form These are discussed in Publication 590. Irs tax amendment form If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. Irs tax amendment form If you do not file Form 8606 with your return, you may have to pay a $50 penalty. Irs tax amendment form Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Irs tax amendment form Early distributions. Irs tax amendment form   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. Irs tax amendment form You must include early distributions of taxable amounts in your gross income. Irs tax amendment form These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. Irs tax amendment form For purposes of the additional 10% tax, an IRA is a qualified retirement plan. Irs tax amendment form For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. Irs tax amendment form After age 59½ and before age 70½. Irs tax amendment form   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. Irs tax amendment form Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. Irs tax amendment form Required distributions. Irs tax amendment form   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. Irs tax amendment form See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. Irs tax amendment form If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. Irs tax amendment form For purposes of the 50% excise tax, an IRA is a qualified retirement plan. Irs tax amendment form For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. Irs tax amendment form See also Excess Accumulations (Insufficient Distributions) in Publication 590. Irs tax amendment form Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. Irs tax amendment form However, see Insurance Premiums for Retired Public Safety Officers , later. Irs tax amendment form If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). Irs tax amendment form This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. Irs tax amendment form The rest of each payment is taxable. Irs tax amendment form However, see Insurance Premiums for Retired Public Safety Officers , later. Irs tax amendment form You figure the tax-free part of the payment using one of the following methods. Irs tax amendment form Simplified Method. Irs tax amendment form You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). Irs tax amendment form You cannot use this method if your annuity is paid under a nonqualified plan. Irs tax amendment form General Rule. Irs tax amendment form You must use this method if your annuity is paid under a nonqualified plan. Irs tax amendment form You generally cannot use this method if your annuity is paid under a qualified plan. Irs tax amendment form Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. Irs tax amendment form You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. Irs tax amendment form Exclusion limit. Irs tax amendment form   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. Irs tax amendment form Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Irs tax amendment form This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. Irs tax amendment form   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. Irs tax amendment form If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. Irs tax amendment form The total exclusion may be more than your cost. Irs tax amendment form Cost. Irs tax amendment form   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). Irs tax amendment form Your total cost in the plan includes everything that you paid. Irs tax amendment form It also includes amounts your employer contributed that were taxable to you when paid. Irs tax amendment form However, see Foreign employment contributions , later. Irs tax amendment form   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. Irs tax amendment form   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. Irs tax amendment form    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Irs tax amendment form , that you receive. Irs tax amendment form Foreign employment contributions. Irs tax amendment form   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. Irs tax amendment form For details, see Foreign employment contributions in Publication 575. Irs tax amendment form Withholding. Irs tax amendment form   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. Irs tax amendment form However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. Irs tax amendment form (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. Irs tax amendment form ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. Irs tax amendment form   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. Irs tax amendment form Simplified Method. Irs tax amendment form   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. Irs tax amendment form For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. Irs tax amendment form For any other annuity, this number is the number of monthly annuity payments under the contract. Irs tax amendment form Who must use the Simplified Method. Irs tax amendment form   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). Irs tax amendment form   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. Irs tax amendment form If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. Irs tax amendment form Guaranteed payments. Irs tax amendment form   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. Irs tax amendment form If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. Irs tax amendment form Who cannot use the Simplified Method. Irs tax amendment form   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). Irs tax amendment form   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. Irs tax amendment form If you did not have to use the General Rule, you could have chosen to use it. Irs tax amendment form You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. Irs tax amendment form   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. Irs tax amendment form   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. Irs tax amendment form Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. Irs tax amendment form   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. Irs tax amendment form How to use the Simplified Method. Irs tax amendment form   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. Irs tax amendment form Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. Irs tax amendment form   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. Irs tax amendment form How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. Irs tax amendment form For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. Irs tax amendment form    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. Irs tax amendment form Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. Irs tax amendment form Single-life annuity. Irs tax amendment form   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. Irs tax amendment form Enter on line 3 the number shown for your age on your annuity starting date. Irs tax amendment form This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Irs tax amendment form Multiple-lives annuity. Irs tax amendment form   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. Irs tax amendment form Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. Irs tax amendment form For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. Irs tax amendment form For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. Irs tax amendment form Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. Irs tax amendment form   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. Irs tax amendment form Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. Irs tax amendment form This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Irs tax amendment form Fixed-period annuities. Irs tax amendment form   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. Irs tax amendment form Line 6. Irs tax amendment form   The amount on line 6 should include all amounts that could have been recovered in prior years. Irs tax amendment form If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. Irs tax amendment form    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. Irs tax amendment form Example. Irs tax amendment form Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. Irs tax amendment form Bill's annuity starting date is January 1, 2013. Irs tax amendment form The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. Irs tax amendment form Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. Irs tax amendment form Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. Irs tax amendment form Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. Irs tax amendment form See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. Irs tax amendment form You can find a blank version of this worksheet in Publication 575. Irs tax amendment form (The references in the illustrated worksheet are to sections in Publication 575). Irs tax amendment form His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. Irs tax amendment form Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). Irs tax amendment form Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. Irs tax amendment form The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. Irs tax amendment form If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. Irs tax amendment form This deduction is not subject to the 2%-of-adjusted-gross-income limit. Irs tax amendment form Worksheet 2-A. Irs tax amendment form Simplified Method Worksheet—Illustrated 1. Irs tax amendment form Enter the total pension or annuity payments received this year. Irs tax amendment form Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Irs tax amendment form $ 14,400 2. Irs tax amendment form Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. Irs tax amendment form 31,000   Note. Irs tax amendment form If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Irs tax amendment form Otherwise, go to line 3. Irs tax amendment form     3. Irs tax amendment form Enter the appropriate number from Table 1 below. Irs tax amendment form But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. Irs tax amendment form 310 4. Irs tax amendment form Divide line 2 by the number on line 3 4. Irs tax amendment form 100 5. Irs tax amendment form Multiply line 4 by the number of months for which this year's payments were made. Irs tax amendment form If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Irs tax amendment form Otherwise, go to line 6 5. Irs tax amendment form 1,200 6. Irs tax amendment form Enter any amount previously recovered tax free in years after 1986. Irs tax amendment form This is the amount shown on line 10 of your worksheet for last year 6. Irs tax amendment form 0 7. Irs tax amendment form Subtract line 6 from line 2 7. Irs tax amendment form 31,000 8. Irs tax amendment form Enter the smaller of line 5 or line 7 8. Irs tax amendment form 1,200 9. Irs tax amendment form Taxable amount for year. Irs tax amendment form Subtract line 8 from line 1. Irs tax amendment form Enter the result, but not less than zero. Irs tax amendment form Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Irs tax amendment form Note. Irs tax amendment form If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Irs tax amendment form If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. Irs tax amendment form 9. Irs tax amendment form $ 13,200 10. Irs tax amendment form Was your annuity starting date before 1987? □ Yes. Irs tax amendment form STOP. Irs tax amendment form Do not complete the rest of this worksheet. Irs tax amendment form  ☑ No. Irs tax amendment form Add lines 6 and 8. Irs tax amendment form This is the amount you have recovered tax free through 2013. Irs tax amendment form You will need this number if you need to fill out this worksheet next year. Irs tax amendment form 10. Irs tax amendment form 1,200 11. Irs tax amendment form Balance of cost to be recovered. Irs tax amendment form Subtract line 10 from line 2. Irs tax amendment form If zero, you will not have to complete this worksheet next year. Irs tax amendment form The payments you receive next year will generally be fully taxable 11. Irs tax amendment form $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Irs tax amendment form   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . Irs tax amendment form . Irs tax amendment form . Irs tax amendment form   BEFORE November 19, 1996, enter on line 3 . Irs tax amendment form . Irs tax amendment form . Irs tax amendment form AFTER November 18, 1996, enter on line 3 . Irs tax amendment form . Irs tax amendment form . Irs tax amendment form   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . Irs tax amendment form . Irs tax amendment form . Irs tax amendment form   THEN enter on line 3 . Irs tax amendment form . Irs tax amendment form . Irs tax amendment form         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. Irs tax amendment form   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. Irs tax amendment form   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. Irs tax amendment form The retiree's cost has already been recovered tax free. Irs tax amendment form   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. Irs tax amendment form The resulting tax-free amount will then remain fixed. Irs tax amendment form Any increases in the survivor annuity are fully taxable. Irs tax amendment form   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. Irs tax amendment form See Simplified Method , earlier. Irs tax amendment form How to report. Irs tax amendment form   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. Irs tax amendment form If your pension or annuity is fully taxable, enter it on line 16b. Irs tax amendment form Do not make an entry on line 16a. Irs tax amendment form   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. Irs tax amendment form If your pension or annuity is fully taxable, enter it on line 12b. Irs tax amendment form Do not make an entry on line 12a. Irs tax amendment form   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. Irs tax amendment form If your pension or annuity is fully taxable, enter it on line 17b. Irs tax amendment form Do not make an entry on line 17a. Irs tax amendment form Example. Irs tax amendment form You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. Irs tax amendment form You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). Irs tax amendment form The entire $1,200 is taxable. Irs tax amendment form You include $1,200 only on Form 1040, line 16b. Irs tax amendment form Joint return. Irs tax amendment form   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. Irs tax amendment form Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. Irs tax amendment form Form 1099-R. Irs tax amendment form   You should receive a Form 1099-R for your pension or annuity. Irs tax amendment form Form 1099-R shows your pension or annuity for the year and any income tax withheld. Irs tax amendment form You should receive a Form W-2 if you receive distributions from certain nonqualified plans. Irs tax amendment form You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. Irs tax amendment form Generally, you should be sent these forms by January 31, 2014. Irs tax amendment form Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. Irs tax amendment form Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. Irs tax amendment form For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. Irs tax amendment form The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. Irs tax amendment form See Tax on Early Distributions, later. Irs tax amendment form Lump-sum distributions. Irs tax amendment form   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. Irs tax amendment form The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. Irs tax amendment form The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. Irs tax amendment form You may be able to use the 10-year tax option to figure tax on the ordinary income part. Irs tax amendment form Form 1099-R. Irs tax amendment form   If you receive a total distribution from a plan, you should receive a Form 1099-R. Irs tax amendment form If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. Irs tax amendment form The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. Irs tax amendment form More information. Irs tax amendment form   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. Irs tax amendment form Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. Irs tax amendment form The tax applies to the taxable part of the distribution. Irs tax amendment form For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). Irs tax amendment form  An IRA is also a qualified retirement plan for purposes of this tax. Irs tax amendment form General exceptions to tax. Irs tax amendment form   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. Irs tax amendment form Additional exceptions. Irs tax amendment form   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. Irs tax amendment form See Publication 575 for details. Irs tax amendment form Reporting tax. Irs tax amendment form   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. Irs tax amendment form 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. Irs tax amendment form See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. Irs tax amendment form Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. Irs tax amendment form Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. Irs tax amendment form However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. Irs tax amendment form For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). Irs tax amendment form  An IRA is also a qualified retirement plan for purposes of this tax. Irs tax amendment form An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. Irs tax amendment form 5% owners. Irs tax amendment form   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. Irs tax amendment form See Publication 575 for more information. Irs tax amendment form Amount of tax. Irs tax amendment form   If you do not receive the required minimum distribution, you are subject to an additional tax. Irs tax amendment form The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. Irs tax amendment form You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. Irs tax amendment form Form 5329. Irs tax amendment form   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. Irs tax amendment form Additional information. Irs tax amendment form   For more detailed information on the tax on excess accumulation, see Publication 575. Irs tax amendment form Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. Irs tax amendment form The premiums can be for coverage for you, your spouse, or dependent(s). Irs tax amendment form The distribution must be made directly from the plan to the insurance provider. Irs tax amendment form You can exclude from income the smaller of the amount of the insurance premiums or $3,000. Irs tax amendment form You can only make this election for amounts that would otherwise be included in your income. Irs tax amendment form The amount excluded from your income cannot be used to claim a medical expense deduction. Irs tax amendment form An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. Irs tax amendment form If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. Irs tax amendment form The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. Irs tax amendment form Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Irs tax amendment form Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Irs tax amendment form Enter “PSO” next to the appropriate line on which you report the taxable amount. Irs tax amendment form Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. Irs tax amendment form These categories are treated differently for income tax purposes. Irs tax amendment form Social security equivalent benefits. Irs tax amendment form   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. Irs tax amendment form This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. Irs tax amendment form (See Social Security and Equivalent Railroad Retirement Benefits , later. Irs tax amendment form ) Non-social security equivalent benefits. Irs tax amendment form   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). Irs tax amendment form It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. Irs tax amendment form This category of benefits is treated as an amount received from a qualified employee plan. Irs tax amendment form This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. Irs tax amendment form Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. Irs tax amendment form More information. Irs tax amendment form   For more information about railroad retirement benefits, see Publication 575. Irs tax amendment form Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. Irs tax amendment form But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. Irs tax amendment form For more information, including information about veterans' benefits and insurance, see Publication 525. Irs tax amendment form Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Irs tax amendment form Social security benefits include monthly retirement, survivor, and disability benefits. Irs tax amendment form They do not include supplemental security income (SSI) payments, which are not taxable. Irs tax amendment form Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Irs tax amendment form They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Irs tax amendment form If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. Irs tax amendment form Are Any of Your Benefits Taxable? Note. Irs tax amendment form When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Irs tax amendment form  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Irs tax amendment form When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Irs tax amendment form S. Irs tax amendment form savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. Irs tax amendment form Figuring total income. Irs tax amendment form   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. Irs tax amendment form If that total amount is more than your base amount, part of your benefits may be taxable. Irs tax amendment form If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Irs tax amendment form Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. Irs tax amendment form If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. Irs tax amendment form If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Irs tax amendment form Worksheet 2-B. Irs tax amendment form A Quick Way To Check if Your Benefits May Be Taxable A. Irs tax amendment form Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Irs tax amendment form Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. Irs tax amendment form (If you received more than one form, combine the amounts from box 5  and enter the total. Irs tax amendment form ) A. Irs tax amendment form     Note. Irs tax amendment form If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. Irs tax amendment form     B. Irs tax amendment form Enter one-half of the amount on line A B. Irs tax amendment form   C. Irs tax amendment form Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Irs tax amendment form   D. Irs tax amendment form Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. Irs tax amendment form S. Irs tax amendment form savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. Irs tax amendment form   E. Irs tax amendment form Add lines B, C, and D and enter the total E. Irs tax amendment form   F. Irs tax amendment form If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. Irs tax amendment form   G. Irs tax amendment form Is the amount on line F less than or equal to the amount on line E? □ No. Irs tax amendment form None of your benefits are taxable this year. Irs tax amendment form  □ Yes. Irs tax amendment form Some of your benefits may be taxable. Irs tax amendment form To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. Irs tax amendment form     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. Irs tax amendment form Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Irs tax amendment form It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Irs tax amendment form If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Irs tax amendment form Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Irs tax amendment form Your repayments are shown in box 4. Irs tax amendment form The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Irs tax amendment form Use the amount in box 5 to figure whether any of your benefits are taxable. Irs tax amendment form Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. Irs tax amendment form If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. Irs tax amendment form If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. Irs tax amendment form For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. Irs tax amendment form How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. Irs tax amendment form Generally, the higher that total amount, the greater the taxable part of your benefits. Irs tax amendment form Maximum taxable part. Irs tax amendment form   The taxable part of your benefits usually cannot be more than 50%. Irs tax amendment form However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Irs tax amendment form The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Irs tax amendment form You are married filing separately and lived with your spouse at any time during 2013. Irs tax amendment form   If you are a nonresident alien, 85% of your benefits are taxable. Irs tax amendment form However, this income is exempt under some tax treaties. Irs tax amendment form Which worksheet to use. Irs tax amendment form   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. Irs tax amendment form However, you will need to use a different worksheet(s) if any of the following situations applies to you. Irs tax amendment form You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. Irs tax amendment form In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. Irs tax amendment form Situation (1) does not apply and you take one or more of the following exclusions. Irs tax amendment form Interest from qualified U. Irs tax amendment form S. Irs tax amendment form savings bonds (Form 8815). Irs tax amendment form Employer-provided adoption benefits (Form 8839). Irs tax amendment form Foreign earned income or housing (Form 2555 or Form 2555-EZ). Irs tax amendment form Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. Irs tax amendment form In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. Irs tax amendment form You received a lump-sum payment for an earlier year. Irs tax amendment form In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Irs tax amendment form See Lump-Sum Election , later. Irs tax amendment form How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. Irs tax amendment form You cannot use Form 1040EZ. Irs tax amendment form Reporting on Form 1040. Irs tax amendment form   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. Irs tax amendment form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. Irs tax amendment form Reporting on Form 1040A. Irs tax amendment form   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. Irs tax amendment form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. Irs tax amendment form Reporting on Form 1040NR. Irs tax amendment form   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. Irs tax amendment form Benefits not taxable. Irs tax amendment form   If you are filing Form 1040EZ, do not report any benefits on your tax return. Irs tax amendment form If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. Irs tax amendment form Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Irs tax amendment form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Irs tax amendment form Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. Irs tax amendment form This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. Irs tax amendment form No part of the lump-sum death benefit is subject to tax. Irs tax amendment form For more information about the lump-sum death benefit, visit the Social Security Administration website at www. Irs tax amendment form SSA. Irs tax amendment form gov, and use keyword: death benefit. Irs tax amendment form Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Irs tax amendment form However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. Irs tax amendment form You can elect this method if it lowers your taxable benefits. Irs tax amendment form See Publication 915 for more information. Irs tax amendment form Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. Irs tax amendment form If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Irs tax amendment form If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. Irs tax amendment form If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. Irs tax amendment form S. Irs tax amendment form Railroad Retirement Board field office. Irs tax amendment form Joint return. Irs tax amendment form   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. Irs tax amendment form You do this to get your net benefits when figuring if your combined benefits are taxable. Irs tax amendment form Repayment of benefits received in an earlier year. Irs tax amendment form   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. Irs tax amendment form   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Irs tax amendment form Claim it on Schedule A (Form 1040), line 23. Irs tax amendment form   If this deduction is more than $3,000, you have to follow some special instructions. Irs tax amendment form See Publication 915 for those instructions. Irs tax amendment form Sickness and Injury Benefits Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. Irs tax amendment form If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. Irs tax amendment form However, certain payments may not be taxable to you. Irs tax amendment form Some of these payments are discussed later in this section. Irs tax amendment form Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. Irs tax amendment form Cost paid by you. Irs tax amendment form   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. Irs tax amendment form If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. Irs tax amendment form Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. Irs tax amendment form You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. Irs tax amendment form Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Irs tax amendment form If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. Irs tax amendment form See Credit for the Elderly or the Disabled, later. Irs tax amendment form For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. Irs tax amendment form Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Irs tax amendment form Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. Irs tax amendment form For more information on pensions and annuities, see Publication 575. Irs tax amendment form Retirement and profit-sharing plans. Irs tax amendment form   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. Irs tax amendment form The payments must be reported as a pension or annuity. Irs tax amendment form Accrued leave payment. Irs tax amendment form   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. Irs tax amendment form The payment is not a disability payment. Irs tax amendment form Include it in your income in the tax year you receive it. Irs tax amendment form Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. Irs tax amendment form Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. Irs tax amendment form However, the amount you can exclude may be limited. Irs tax amendment form Long-term care insurance contracts are discussed in more detail in Publication 525. Irs tax amendment form Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. Irs tax amendment form The exemption also applies to your survivors. Irs tax amendment form The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. Irs tax amendment form If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. Irs tax amendment form For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. Irs tax amendment form Return to work. Irs tax amendment form   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. Irs tax amendment form Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. Irs tax amendment form Federal Employees' Compensation Act (FECA). Irs tax amendment form   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. Irs tax amendment form However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. Irs tax amendment form Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. Irs tax amendment form Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. Irs tax amendment form    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. Irs tax amendment form For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. Irs tax amendment form Other compensation. Irs tax amendment form   Many other amounts you receive as compensation for sickness or injury are not taxable. Irs tax amendment form These include the following amounts. Irs tax amendment form Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. Irs tax amendment form Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. Irs tax amendment form Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). Irs tax amendment form This compensation must be based only on the injury and not on the period of your absence from work. Irs tax amendment form These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. Irs tax amendment form Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. Irs tax amendment form This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. Irs tax amendment form Proceeds not received in installments. Irs tax amendment form   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. Irs tax amendment form If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. Irs tax amendment form Proceeds received in installments. Irs tax amendment form   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. Irs tax amendment form   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. Irs tax amendment form Include anything over this excluded part in your income as interest. Irs tax amendment form Installments for life. Irs tax amendment form   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. Irs tax amendment form If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. Irs tax amendment form Surviving spouse. Irs tax amendment form   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. Irs tax amendment form If you remarry, you can continue to take the exclusion. Irs tax amendment form Surrender of policy for cash. Irs tax amendment form   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Irs tax amendment form In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. Irs tax amendment form You should receive a Form 1099-R showing the total proceeds and the taxable part. Irs tax amendment form Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. Irs tax amendment form Endowment Contract Proceeds An endowment contract is a policy that pays over to you a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. Irs tax amendment form Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. Irs tax amendment form To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. Irs tax amendment form Include in your income the part of the lump-sum payment that is more than your cost. Irs tax amendment form Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. Irs tax amendment form The tax treatment of an annuity is explained in Publication 575. Irs tax amendment form For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. Irs tax amendment form This election must be made within 60 days after the lump-sum payment first becomes payable to you. Irs tax amendment form Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. Irs tax amendment form However, see Exception , later. Irs tax amendment form For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Irs tax amendment form Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. Irs tax amendment form In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. Irs tax amendment form Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill. Irs tax amendment form To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. Irs tax amendment form Terminally or chronically ill defined. Irs tax amendment form   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. Irs tax amendment form A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. Irs tax amendment form The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. Irs tax amendment form The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. Irs tax amendment form Exception. Irs tax amendment form   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. Irs tax amendment form Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. Irs tax amendment form Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. Irs tax amendment form You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. Irs tax amendment form Main home. Irs tax amendment form   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Irs tax amendment form Repaying the first-time homebuyer credit because you sold your home. Irs tax amendment form   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. Irs tax amendment form For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. Irs tax amendment form   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. Irs tax amendment form If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. Irs tax amendment form If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. Irs tax amendment form   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. Irs tax amendment form Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. Irs tax amendment form You meet the ownership test. Irs tax amendment form You meet the use test. Irs tax amendment form During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. Irs tax amendment form You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . Irs tax amendment form Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. Irs tax amendment form This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). Irs tax amendment form Exception to ownership and use tests. Irs tax amendment form   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. Irs tax amendment form Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. Irs tax amendment form The maximum amount you can exclude will be reduced. Irs tax amendment form See Publication 523, Selling Your Home, for more information. Irs tax amendment form Exception to use test for individuals with a disability. Irs tax amendment form   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. Irs tax amendment form Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. Irs tax amendment form   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. Irs tax amendment form Exception to ownership test for property acquired in a like-kind exchange. Irs tax amendment form   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. Irs tax amendment form This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. Irs tax amendment form A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. Irs tax amendment form See Publication 523 for more information. Irs tax amendment form Period of nonqualified use. Irs tax amendment form   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. Irs tax amendment form Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. Irs tax amendment form See Publication 523 for more information. Irs tax amendment form Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. Irs tax amendment form However, see Special rules for joint returns , next. Irs tax amendment form Special rules for joint returns. Irs tax amendment form   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. Irs tax amendment form You are married and file a joint return for the year. Irs tax amendment form Either you or your spouse meets the ownership test. Irs tax amendment form Both you and your spouse meet the use test. Irs tax amendment form During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. Irs tax amendment form Sale of home by surviving spouse. Irs tax amendment form   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. Irs tax amendment form   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. Irs tax amendment form The sale or exchange took place no more than 2 years after the date of death of your spouse. Irs tax amendment form You have not remarried. Irs tax amendment form You and your spouse met the use test at the time of your spouse's death. Irs tax amendment form You or your spouse met the ownership test at the time of your spouse's death. Irs tax amendment form Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. Irs tax amendment form Home transferred from spouse. Irs tax amendment form   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. Irs tax amendment form Use of home after divorce. Irs tax amendment form   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. Irs tax amendment form Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. Irs tax amendment form However, you must meet the ownership and use tests. Irs tax amendment form See Publication 523 for more information. Irs tax amendment form Depreciation after May 6, 1997. Irs tax amendment form   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. Irs tax amendment form See Publication 523 for more information. Irs tax amendment form Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. Irs tax amendment form If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. Irs tax amendment form Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. Irs tax amendment form If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. Irs tax amendment form See Publication 523 for more information. Irs tax amendment form Reverse Mortgages A revers
Español

Developer Resources

Software developers and researchers can use these data feeds and APIs to help people find useful government information.

This page can be found at usa.gov/developer


Send Us Your Feedback

If you are using these resources and have feedback or want to tell us about your product, please e-mail us. We'd also like to know if you have suggestions for new APIs.


APIs

American Job Center Resources APIs
American Job Center partners with O'Net to provide a variety of APIs that are useful for jobseekers.
Style: RESTful APIs
Read the Documentation.

BusinessUSA Resource Access API
BusinessUSA connects businesses to government services and information. The API provides access to resource abstracts including programs, services, data, events, and more.
Style: RESTful API
Return Format: XML, CSV
Read the Documentation.

Citizen Topics API
This API lists the topics that we use to organize content on USA.gov. You can access it via the /tags call to the Social Media Registry.
Style: RESTful API
Return Format: HTML5, JSON, XML
Read the Documentation.

DigitalGov Search API (formerly USASearch)
Provides DigitalGov Search customers with results. This API is only available for use on official government websites. Sign in is required.
Style: RESTful API (requires DigitalGov Search account)
Return Format: JSON, JSONP, XML
Read the Documentation.

Federal Agency Directory API
This API contains directory information about federal agencies, such as contact methods, in English and Spanish.
Style: RESTful API
Return Format: JSON, JSONP, XML
Read the Documentation. Explore the Interactive Documentation.

Go.USA.gov API
Go.USA.gov is a URL shortener for government employees. The API can shorten, preview, and show clicks on short URLs.
Style: RESTful API
Return Format: JSON, JSONP, XML, plain text
Read the Documentation.

Government Jobs API
This API returns job openings across the federal government and includes all current openings posted on USAJobs.gov that are open to the public and located in the United States. It also includes some state and local government jobs.
Style: RESTful API
Return Format: JSON
Read the Documentation.

MyUSA APIs
Project MyUSA re-imagines how citizens interact with government. Use the MyUSA API to build apps that integrate with MyUSA.
Style: RESTful APIs (requires authentication and registration)
Read the Documentation.

Product Recall Data API
This API returns food recalls from FoodSafety.gov, car recalls from the National Highway Traffic Safety Administration, and product safety recalls from the Consumer Product Safety Commission.
Style: RESTful API
Return Format: JSON
Read the Documentation.

Social Media Registry API
The Social Media Registry is an official source of information about federal government social media accounts.
Style: RESTful API
Return Format: HTML5, JSON, XML
Read the Documentation.

Back to Top

Data Feeds

1.USA.gov Data
1.USA.gov URLs are created whenever anyone shortens a .gov or .mil URL using bitly.
Style: Raw pub/sub feed
Return Format: JSON
Read the Documentation.

Frequently Asked Questions XML
The contents of our frequently asked questions are available in English and Spanish.
Style: XML data file
Read the Documentation.

List of Non-.gov URLs in Our Search
We search across all federal, state, local, tribal, and territorial government websites. Most government websites end in .gov or .mil, but many do not. This is a list of all government URLs that do not end in .gov or .mil.
Style: TXT file
Read the Documentation.

RSS Directory
Find feeds from across government.
Style: RSS

Back to Top

The Irs Tax Amendment Form

Irs tax amendment form 8. Irs tax amendment form   Qualified Tuition Program (QTP) Table of Contents Introduction What Is a Qualified Tuition ProgramDesignated beneficiary. Irs tax amendment form Half-time student. Irs tax amendment form How Much Can You Contribute Are Distributions TaxableFiguring the Taxable Portion of a Distribution Additional Tax on Taxable Distributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Introduction Qualified tuition programs (QTPs) are also called “529 plans. Irs tax amendment form ” States may establish and maintain programs that allow you to either prepay or contribute to an account for paying a student's qualified education expenses at a postsecondary institution. Irs tax amendment form Eligible educational institutions may establish and maintain programs that allow you to prepay a student's qualified education expenses. Irs tax amendment form If you prepay tuition, the student (designated beneficiary) will be entitled to a waiver or a payment of qualified education expenses. Irs tax amendment form You cannot deduct either payments or contributions to a QTP. Irs tax amendment form For information on a specific QTP, you will need to contact the state agency or eligible educational institution that established and maintains it. Irs tax amendment form What is the tax benefit of a QTP. Irs tax amendment form   No tax is due on a distribution from a QTP unless the amount distributed is greater than the beneficiary's adjusted qualified education expenses. Irs tax amendment form See Are Distributions Taxable , later, for more information. Irs tax amendment form    Even if a QTP is used to finance a student's education, the student or the student's parents still may be eligible to claim the American opportunity credit or the lifetime learning credit. Irs tax amendment form See Coordination With American Opportunity and Lifetime Learning Credits, later. Irs tax amendment form What Is a Qualified Tuition Program A qualified tuition program is a program set up to allow you to either prepay, or contribute to an account established for paying, a student's qualified education expenses at an eligible educational institution. Irs tax amendment form QTPs can be established and maintained by states (or agencies or instrumentalities of a state) and eligible educational institutions. Irs tax amendment form The program must meet certain requirements. Irs tax amendment form Your state government or the eligible educational institution in which you are interested can tell you whether or not they participate in a QTP. Irs tax amendment form Qualified education expenses. Irs tax amendment form   These are expenses related to enrollment or attendance at an Eligible educational institution (defined later). Irs tax amendment form As shown in the following list, to be qualified, some of the expenses must be required by the institution and some must be incurred by students who are enrolled at least half-time. Irs tax amendment form See Half-time student , later. Irs tax amendment form The following expenses must be required for enrollment or attendance of a Designated beneficiary (defined later) at an eligible educational institution. Irs tax amendment form Tuition and fees. Irs tax amendment form Books, supplies, and equipment. Irs tax amendment form Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible educational institution. Irs tax amendment form Expenses for room and board must be incurred by students who are enrolled at least half-time. Irs tax amendment form The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Irs tax amendment form The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Irs tax amendment form The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Irs tax amendment form You will need to contact the eligible educational institution for qualified room and board costs. Irs tax amendment form    For tax years after 2010, the purchase of computer technology or equipment is only a qualified education expense if the computer technology or equipment is required for enrollment or attendance at an eligible institution. Irs tax amendment form Designated beneficiary. Irs tax amendment form   The designated beneficiary is generally the student (or future student) for whom the QTP is intended to provide benefits. Irs tax amendment form The designated beneficiary can be changed after participation in the QTP begins. Irs tax amendment form If a state or local government or certain tax-exempt organizations purchase an interest in a QTP as part of a scholarship program, the designated beneficiary is the person who receives the interest as a scholarship. Irs tax amendment form Half-time student. Irs tax amendment form   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic workload for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Irs tax amendment form Eligible educational institution. Irs tax amendment form   For purposes of a QTP, this is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Irs tax amendment form S. Irs tax amendment form Department of Education. Irs tax amendment form It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Irs tax amendment form The educational institution should be able to tell you if it is an eligible educational institution. Irs tax amendment form   Certain educational institutions located outside the United States also participate in the U. Irs tax amendment form S. Irs tax amendment form Department of Education's Federal Student Aid (FSA) programs. Irs tax amendment form   How Much Can You Contribute Contributions to a QTP on behalf of any beneficiary cannot be more than the amount necessary to provide for the qualified education expenses of the beneficiary. Irs tax amendment form There are no income restrictions on the individual contributors. Irs tax amendment form You can contribute to both a QTP and a Coverdell ESA in the same year for the same designated beneficiary. Irs tax amendment form   Are Distributions Taxable The part of a distribution representing the amount paid or contributed to a QTP does not have to be included in income. Irs tax amendment form This is a return of the investment in the plan. Irs tax amendment form The designated beneficiary generally does not have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified education expenses (defined under Figuring the Taxable Portion of a Distribution , later). Irs tax amendment form Earnings and return of investment. Irs tax amendment form    You will receive a Form 1099-Q, from each of the programs from which you received a QTP distribution in 2013. Irs tax amendment form The amount of your gross distribution (box 1) shown on each form will be divided between your earnings (box 2) and your basis, or return of investment (box 3). Irs tax amendment form Form 1099-Q should be sent to you by January 31, 2014. Irs tax amendment form Figuring the Taxable Portion of a Distribution To determine if total distributions for the year are more or less than the amount of qualified education expenses, you must compare the total of all QTP distributions for the tax year to the adjusted qualified education expenses. Irs tax amendment form Adjusted qualified education expenses. Irs tax amendment form   This amount is the total qualified education expenses reduced by any tax-free educational assistance. Irs tax amendment form Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Irs tax amendment form Taxable earnings. Irs tax amendment form   Use the following steps to figure the taxable part. Irs tax amendment form Multiply the total distributed earnings shown in box 2 of Form 1099-Q by a fraction. Irs tax amendment form The numerator is the adjusted qualified education expenses paid during the year and the denominator is the total amount distributed during the year. Irs tax amendment form Subtract the amount figured in (1) from the total distributed earnings. Irs tax amendment form The result is the amount the beneficiary must include in income. Irs tax amendment form Report it on Form 1040 or Form 1040NR, line 21. Irs tax amendment form Example 1. Irs tax amendment form In 2007, Sara Clarke's parents opened a savings account for her with a QTP maintained by their state government. Irs tax amendment form Over the years they contributed $18,000 to the account. Irs tax amendment form The total balance in the account was $27,000 on the date the distribution was made. Irs tax amendment form In the summer of 2013, Sara enrolled in college and had $8,300 of qualified education expenses for the rest of the year. Irs tax amendment form She paid her college expenses from the following sources. Irs tax amendment form   Gift from parents $1,600     Partial tuition scholarship (tax-free) 3,100     QTP distribution 5,300           Before Sara can determine the taxable part of her QTP distribution, she must reduce her total qualified education expenses by any tax-free educational assistance. Irs tax amendment form   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Equals: Adjusted qualified  education expenses (AQEE) $5,200   Since the remaining expenses ($5,200) are less than the QTP distribution, part of the earnings will be taxable. Irs tax amendment form Sara's Form 1099-Q shows that $950 of the QTP distribution is earnings. Irs tax amendment form Sara figures the taxable part of the distributed earnings as follows. Irs tax amendment form   1. Irs tax amendment form $950 (earnings) × $5,200 AQEE  $5,300 distribution           =$932 (tax-free earnings)     2. Irs tax amendment form $950 (earnings)−$932 (tax-free earnings)     =$18 (taxable earnings)  Sara must include $18 in income (Form 1040, line 21) as distributed QTP earnings not used for adjusted qualified education expenses. Irs tax amendment form Coordination With American Opportunity and Lifetime Learning Credits An American opportunity or lifetime learning credit (education credit) can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. Irs tax amendment form This means that after the beneficiary reduces qualified education expenses by tax-free educational assistance, he or she must further reduce them by the expenses taken into account in determining the credit. Irs tax amendment form Example 2. Irs tax amendment form Assume the same facts as in Example 1 , except that Sara's parents claimed an American opportunity credit of $2,500 (based on $4,000 expenses). Irs tax amendment form   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Minus: Expenses taken into account  in figuring American opportunity credit −4,000     Equals: Adjusted qualified  education expenses (AQEE) $1,200           The taxable part of the distribution is figured as follows. Irs tax amendment form   1. Irs tax amendment form $950 (earnings) × $1,200 AQEE  $5,300 distribution           =$215 (tax-free earnings)     2. Irs tax amendment form $950 (earnings)−$215 (tax-free earnings)     =$735 (taxable earnings)       Sara must include $735 in income (Form 1040, line 21). Irs tax amendment form This represents distributed earnings not used for adjusted qualified education expenses. Irs tax amendment form Coordination With Coverdell ESA Distributions If a designated beneficiary receives distributions from both a QTP and a Coverdell ESA in the same year, and the total of these distributions is more than the beneficiary's adjusted qualified higher education expenses, the expenses must be allocated between the distributions. Irs tax amendment form For purposes of this allocation, disregard any qualified elementary and secondary education expenses. Irs tax amendment form Example 3. Irs tax amendment form Assume the same facts as in Example 2 , except that instead of receiving a $5,300 distribution from her QTP, Sara received $4,600 from that account and $700 from her Coverdell ESA. Irs tax amendment form In this case, Sara must allocate her $1,200 of adjusted qualified higher education expenses (AQHEE) between the two distributions. Irs tax amendment form   $1,200 AQHEE × $700 ESA distribution  $5,300 total distribution = $158 AQHEE (ESA)     $1,200 AQHEE × $4,600 QTP distribution  $5,300 total distribution = $1,042 AQHEE (QTP)   Sara then figures the taxable portion of her Coverdell ESA distribution based on qualified higher education expenses of $158, and the taxable portion of her QTP distribution based on the other $1,042. Irs tax amendment form Note. Irs tax amendment form If you are required to allocate your expenses between Coverdell ESA and QTP distributions, and you have adjusted qualified elementary and secondary education expenses, see the examples in chapter 7, Coverdell Education Savings Account under Coordination With Qualified Tuition Program (QTP) Distributions . Irs tax amendment form Coordination With Tuition and Fees Deduction. Irs tax amendment form   A tuition and fees deduction can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. Irs tax amendment form Losses on QTP Investments If you have a loss on your investment in a QTP account, you may be able to take the loss on your income tax return. Irs tax amendment form You can take the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. Irs tax amendment form Your basis is the total amount of contributions to that QTP account. Irs tax amendment form You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. Irs tax amendment form If you have distributions from more than one QTP account during a year, you must combine the information (amount of distribution, basis, etc. Irs tax amendment form ) from all such accounts in order to determine your taxable earnings for the year. Irs tax amendment form By doing this, the loss from one QTP account reduces the distributed earnings (if any) from any other QTP accounts. Irs tax amendment form Example 1. Irs tax amendment form In 2013, Taylor received a final distribution of $1,000 from QTP #1. Irs tax amendment form His unrecovered basis in that account before the distribution was $3,000. Irs tax amendment form If Taylor itemizes his deductions, he can claim the $2,000 loss on Schedule A (Form 1040). Irs tax amendment form Example 2. Irs tax amendment form Assume the same facts as in Example 1 , except that Taylor also had a distribution of $9,000 from QTP #2, giving him total distributions for 2013 of $10,000. Irs tax amendment form His total basis in these distributions was $4,500 ($3,000 for QTP #1 and $1,500 for QTP #2). Irs tax amendment form Taylor's adjusted qualified education expenses for 2013 totaled $6,000. Irs tax amendment form In order to figure his taxable earnings, Taylor combines the two accounts and determines his taxable earnings as follows. Irs tax amendment form   1. Irs tax amendment form $10,000 (total distribution)−$4,500 (basis portion of distribution)     = $5,500 (earnings included in distribution)   2. Irs tax amendment form $5,500 (earnings) x $6,000 AQEE  $10,000 distribution           =$3,300 (tax-free earnings)     3. Irs tax amendment form $5,500 (earnings)−$3,300 (tax-free earnings)     =$2,200 (taxable earnings)                 Taylor must include $2,200 in income on Form 1040, line 21. Irs tax amendment form Because Taylor's accounts must be combined, he cannot deduct his $2,000 loss (QTP #1) on Schedule A (Form 1040). Irs tax amendment form Instead, the $2,000 loss reduces the total earnings that were distributed, thereby reducing his taxable earnings. Irs tax amendment form Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. Irs tax amendment form Exceptions. Irs tax amendment form   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. Irs tax amendment form Made because the designated beneficiary is disabled. Irs tax amendment form A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. Irs tax amendment form A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. Irs tax amendment form Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Irs tax amendment form Made on account of the attendance of the designated beneficiary at a U. Irs tax amendment form S. Irs tax amendment form military academy (such as the USNA at Annapolis). Irs tax amendment form This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. Irs tax amendment form S. Irs tax amendment form Code) attributable to such attendance. Irs tax amendment form Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier. Irs tax amendment form ) Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. Irs tax amendment form Figuring the additional tax. Irs tax amendment form    Use Part II of Form 5329, to figure any additional tax. Irs tax amendment form Report the amount on Form 1040, line 58, or Form 1040NR, line 56. Irs tax amendment form Rollovers and Other Transfers Assets can be rolled over or transferred from one QTP to another. Irs tax amendment form In addition, the designated beneficiary can be changed without transferring accounts. Irs tax amendment form Rollovers Any amount distributed from a QTP is not taxable if it is rolled over to another QTP for the benefit of the same beneficiary or for the benefit of a member of the beneficiary's family (including the beneficiary's spouse). Irs tax amendment form An amount is rolled over if it is paid to another QTP within 60 days after the date of the distribution. Irs tax amendment form Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. Irs tax amendment form These are not taxable distributions. Irs tax amendment form Members of the beneficiary's family. Irs tax amendment form   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. Irs tax amendment form Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. Irs tax amendment form Brother, sister, stepbrother, or stepsister. Irs tax amendment form Father or mother or ancestor of either. Irs tax amendment form Stepfather or stepmother. Irs tax amendment form Son or daughter of a brother or sister. Irs tax amendment form Brother or sister of father or mother. Irs tax amendment form Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Irs tax amendment form The spouse of any individual listed above. Irs tax amendment form First cousin. Irs tax amendment form Example. Irs tax amendment form When Aaron graduated from college last year he had $5,000 left in his QTP. Irs tax amendment form He wanted to give this money to his younger brother, who was in junior high school. Irs tax amendment form In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his brother's QTP within 60 days of the distribution. Irs tax amendment form If the rollover is to another QTP for the same beneficiary, only one rollover is allowed within 12 months of a previous transfer to any QTP for that designated beneficiary. Irs tax amendment form Changing the Designated Beneficiary There are no income tax consequences if the designated beneficiary of an account is changed to a member of the beneficiary's family. Irs tax amendment form See Members of the beneficiary's family , earlier. Irs tax amendment form Example. Irs tax amendment form Assume the same situation as in the last example. Irs tax amendment form Instead of closing his QTP and paying the distribution into his brother's QTP, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his brother. Irs tax amendment form Prev  Up  Next   Home   More Online Publications