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Irse File

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Irse File

Irse file 27. Irse file   Beneficios Tributarios para Estudios Relacionados con el Trabajo Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la DeducciónEstudios Requeridos por el Empleador o por Ley Estudios para Mantener o Mejorar Destrezas Estudios para Satisfacer los Requisitos Mínimos Estudios que lo Capacitan para un Nuevo Oficio o Negocio Qué Gastos se Pueden Deducir Reembolso no reclamado. Irse file Gastos de Transporte Gastos de Viaje No se Permiten Beneficios Dobles Reembolsos Cómo Deducir Gastos de NegociosPersonas que Trabajan por Cuenta Propia Empleados Artistas del Espectáculo y Funcionarios a los que se les Pagan Honorarios Gastos de Trabajo Relacionados con un Impedimento Documentación Qué Hay de Nuevo Tarifa estándar por milla. Irse file  Por lo general, si reclama una deducción de negocios por estudios relacionados con el trabajo y maneja su automóvil a la escuela y de vuelta a casa, la cantidad que puede deducir por las millas recorridas desde el 1 de enero de 2013 al 31 de diciembre de 2013 es 56½ centavos por milla. Irse file Vea Gastos de Transporte bajo Qué Gastos se Pueden Deducir, para más información. Irse file Introduction Este capítulo explica los gastos de estudios relacionados con el trabajo que tal vez pueda deducir como gastos de negocios. Irse file Para reclamar tal deducción, tiene que: Detallar las deducciones en el Anexo A (Formulario 1040) si es empleado; Presentar el Anexo C (Formulario 1040), Anexo C-EZ (Formulario 1040) o el Anexo F (Formulario 1040) si trabaja por cuenta propia y Tener gastos de estudios calificados explicados bajo Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción . Irse file Si es empleado y puede detallar las deducciones, tal vez pueda reclamar una deducción por los gastos pagados por estudios que se relacionen con el trabajo. Irse file Su deducción será la cantidad total de sus gastos de estudios relacionados con el trabajo que reúnen los requisitos más otros gastos relacionados con el trabajo y ciertos gastos misceláneos (con la excepción de los gastos del trabajo relacionados con el impedimento de personas discapacitadas) que sea mayor que el 2% de sus ingresos brutos ajustados (AGI, por sus siglas en inglés). Irse file Vea el capítulo 28. Irse file Si trabaja por cuenta propia, deduciría los gastos de estudios relacionados con el trabajo que reúnen los requisitos directamente de sus ingresos del trabajo por cuenta propia. Irse file Los gastos de estudios relacionados con el trabajo también podrían darle derecho a otros beneficios tributarios, tales como el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje (vea el capítulo 35). Irse file Es posible que tenga derecho a estos beneficios incluso si no cumple los requisitos indicados anteriormente. Irse file Asimismo, debe tomar en consideración que es posible que sus gastos de estudios relacionados con el trabajo le podrían dar derecho a reclamar más de un beneficio tributario. Irse file Por lo general, puede reclamar cualquier cantidad de beneficios siempre que utilice diferentes gastos para calcular cada uno de ellos. Irse file Cuando calcule sus impuestos, tal vez desee comparar estos beneficios tributarios para elegir el (los) método(s) mediante el (los) cual(es) obtenga el menor impuesto por pagar. Irse file Useful Items - You may want to see: Publicación 463 Travel, Entertainment, Gift, and Car Expenses (Gastos de viaje, entretenimiento, regalos y automóvil), en inglés 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 2106 Employee Business Expenses (Gastos de negocios del empleado), en inglés 2106-EZ Unreimbursed Employee Business Expenses (Gastos de negocios del empleado no reembolsados), en inglés Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción Puede deducir como gastos de negocio los costos de estudios relacionados con el trabajo si éstos reúnen los requisitos de la deducción. Irse file Éstos son estudios que cumplen al menos uno de los dos siguientes requisitos: Su empleador o la ley requiere dichos estudios para mantener su sueldo, situación o trabajo actual. Irse file Los estudios requeridos tienen que servir para un propósito comercial legítimo (bona fide) de su empleador. Irse file Los estudios mantienen o mejoran las destrezas necesarias en su trabajo actual. Irse file No obstante, aun si sus estudios cumplen uno o ambos de los requisitos anteriores, no se considera que dichos estudios estén relacionados con el trabajo ni que reúnen los requisitos de la deducción si: Se requieren para satisfacer los requisitos mínimos de educación de su oficio o negocio actual o Forman parte de un programa de estudios que lo capacitará para un nuevo oficio o negocio. Irse file Puede deducir los costos de los estudios relacionados con el trabajo que reúnen los requisitos de la deducción como gasto de negocios incluso si, al completar dichos estudios, tiene la posibilidad de obtener un título universitario. Irse file Utilice la Figura 27-A, más adelante, para verificar rápidamente si sus estudios reúnen los requisitos. Irse file Estudios Requeridos por el Empleador o por Ley Una vez que haya cumplido los requisitos mínimos de educación para su trabajo, es posible que su empleador o la ley le exija seguir sus estudios. Irse file Se considera que dichos estudios adicionales son estudios relacionados con el trabajo que reúnen los requisitos si se cumplen los tres siguientes requisitos: Se requieren para que mantenga su sueldo, situación o trabajo actual; El requisito sirve un propósito legítimo (bona fide) comercial de su empleador y Los estudios no forman parte de un programa que lo capacitará para un nuevo oficio o negocio. Irse file Si completa más estudios de los requeridos por su empleador o la ley, estos estudios adicionales sólo pueden ser estudios relacionados con el trabajo que reúnen los requisitos de la deducción si mantienen o mejoran las destrezas requeridas en su trabajo actual. Irse file Vea Estudios para Mantener o Mejorar Destrezas , más adelante. Irse file Ejemplo. Irse file Usted es un maestro que ha cumplido los requisitos mínimos para enseñar. Irse file Su empleador le exige que tome un curso universitario adicional cada año para poder seguir con su puesto actual de maestro. Irse file Si los cursos no lo capacitarán para un nuevo oficio o negocio, entonces serán estudios relacionados con el trabajo que reúnen los requisitos, incluso si en el futuro recibe una maestría y un aumento de sueldo debido a estos estudios adicionales. Irse file Estudios para Mantener o Mejorar Destrezas Si su empleador o la ley no requiere estudios, éstos pueden ser estudios relacionados con el trabajo que reúnen los requisitos de la deducción sólo si mantienen o mejoran las destrezas necesarias en su trabajo actual. Irse file Éstos pueden incluir cursos de actualización, cursos sobre avances profesionales y cursos académicos o vocacionales. Irse file Ejemplo. Irse file Usted repara televisores, radios y sistemas estereofónicos para la tienda XYZ. Irse file Para mantenerse al corriente de los últimos avances en su profesión, toma cursos especiales de servicios de radio y sistemas estereofónicos. Irse file Estos cursos mantienen y mejoran las destrezas requeridas en su trabajo. Irse file Mantenimiento de destrezas versus capacitación para un empleo nuevo. Irse file   Los estudios para mantener o mejorar destrezas que se requieren en su trabajo actual no son estudios que reúnen los requisitos de la deducción si también lo capacitarán para un nuevo oficio o negocio. Irse file Estudios durante ausencia temporal. Irse file   Si deja de trabajar durante un año o menos para cursar estudios con el fin de mantener o mejorar las destrezas necesarias en su trabajo actual y luego regresa a su trabajo y desempeña las mismas labores generales, su ausencia se considera temporal. Irse file Los estudios cursados durante una ausencia temporal son estudios relacionados con el trabajo que cumplen los requisitos de la deducción si mantienen o mejoran las destrezas necesarias en su trabajo actual. Irse file Ejemplo. Irse file Deja su trabajo de investigación en biología para convertirse en estudiante de posgrado de biología a tiempo completo durante un año. Irse file Si regresa a trabajar en investigación en biología después de concluir los cursos, los estudios se relacionan con su trabajo actual incluso si no regresa a trabajar para el mismo empleador. Irse file Estudios durante ausencia indefinida. Irse file   Si deja de trabajar durante más de un año, su ausencia del trabajo se considera indefinida. Irse file Se considera que los estudios cursados durante una ausencia indefinida, aun si mantienen o mejoran las destrezas necesarias en el trabajo del cual se ausenta, lo capacitan para un nuevo oficio o negocio. Irse file Por lo tanto, no son estudios relacionados con el trabajo que reúnan los requisitos de la deducción. Irse file Estudios para Satisfacer los Requisitos Mínimos Los estudios necesarios para cumplir los requisitos mínimos de educación para su oficio o negocio actual no son estudios relacionados con el trabajo que reúnan los requisitos de la deducción. Irse file Los requisitos mínimos de educación se determinan a través de: Leyes y reglamentos; Normas de su profesión, oficio o negocio y Su empleador. Irse file Una vez que haya cumplido los requisitos mínimos de educación vigentes cuando se le contrató, no tiene que cumplir nuevos requisitos mínimos de educación. Irse file Esto significa que si los requisitos mínimos cambian después de que haya sido contratado, los estudios necesarios para satisfacer los nuevos requisitos pueden ser estudios que reúnen los requisitos de la deducción. Irse file No ha cumplido los requisitos mínimos de educación de su oficio o negocio sólo porque ya está realizando el trabajo. Irse file Ejemplo 1. Irse file Es estudiante de ingeniería a tiempo completo. Irse file Aunque no ha recibido su título o certificación, trabaja a tiempo parcial como ingeniero en una empresa que lo contratará como ingeniero a tiempo completo después de que finalice sus estudios universitarios. Irse file Aunque sus cursos universitarios de ingeniería mejoran sus destrezas en su trabajo actual, también se requieren para cumplir los requisitos laborales mínimos para contratar a un ingeniero a tiempo completo. Irse file Estos estudios no son estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irse file Ejemplo 2. Irse file Es contador y ha cumplido con los requisitos mínimos de educación de su empleador. Irse file Posteriormente, éste cambia los requisitos mínimos de educación y requiere que tome cursos universitarios para mantener su trabajo. Irse file Estos cursos adicionales pueden ser estudios relacionados con el trabajo que reúnen los requisitos de la deducción porque ya ha cumplido los requisitos mínimos vigentes al momento de su contratación. Irse file Requisitos para los Docentes Por lo general, los estados o distritos escolares establecen los requisitos mínimos de educación para los docentes. Irse file El requisito es el título universitario o la cantidad mínima de horas de estudio universitario que suele exigirse para la contratación de una persona para dicho cargo. Irse file Si no existen requisitos, habrá cumplido los requisitos mínimos de educación cuando pase a ser miembro del cuerpo docente. Irse file La determinación de si usted es miembro del cuerpo docente de una institución educativa tiene que ser hecha en base de las prácticas particulares de dicha institución. Irse file Por lo general, se le considerará miembro del cuerpo docente si se da una o más de las siguientes condiciones: Es profesor titular o catedrático. Irse file Sus años de servicio se acreditan para obtener el cargo académico o cátedra. Irse file Tiene un voto en las decisiones del cuerpo docente. Irse file Su institución académica hace aportaciones en nombre suyo a un plan de jubilación que no sea el Seguro Social o un programa similar. Irse file Ejemplo 1. Irse file La ley en el estado donde vive exige que los maestros novatos de escuela secundaria tengan un título universitario, incluidos 10 cursos de educación profesional. Irse file Asimismo, para mantener su trabajo, un maestro tiene que realizar un quinto año de capacitación dentro de un plazo de 10 años a partir de la fecha de contratación. Irse file Si la escuela empleadora certifica ante el Departamento de Educación estatal que no puede encontrar maestros calificados, la escuela puede contratar a personas con sólo 3 años de estudios universitarios. Irse file No obstante, para mantener su trabajo, estos maestros tienen que obtener un título universitario y completar los cursos de educación profesional requeridos dentro de un plazo de 3 años. Irse file De acuerdo con lo anterior, el título universitario, incluya o no los 10 cursos de educación profesional, se considera el requisito mínimo de educación para calificar como maestro en el estado donde vive. Irse file Si posee toda la educación requerida, a excepción del quinto año, ha cumplido los requisitos mínimos de educación. Irse file El quinto año de capacitación se considera estudios relacionados con el trabajo que reúnen los requisitos de la deducción a menos que forme parte de un programa de estudios que lo capacitará para un nuevo oficio o negocio. Irse file Figura 27–A. Irse file ¿Reúnen los Requisitos sus Estudios Relacionados con el Trabajo? Please click here for the text description of the image. Irse file Figura 27−A. Irse file ¿Reúnen los requisitos sus estudios relacionados con el trabajo? Ejemplo 2. Irse file Suponga que se dan los mismos hechos que en el Ejemplo 1, excepto que tiene título universitario y sólo seis cursos de educación profesional. Irse file Los cuatro cursos adicionales pueden ser estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irse file Aunque no tiene todos los cursos requeridos, ya ha cumplido los requisitos mínimos de educación. Irse file Ejemplo 3. Irse file Suponga que se dan los mismos hechos que en el Ejemplo 1, excepto que lo han contratado con sólo 3 años de estudios universitarios. Irse file Los cursos que tome para lograr un título (incluso en el campo de enseñanza) no son estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irse file Éstos se requieren para cumplir los requisitos mínimos de educación para trabajar como maestro. Irse file Ejemplo 4. Irse file Tiene un título universitario y trabaja como instructor temporal en una universidad. Irse file Al mismo tiempo, toma cursos de posgrado para obtener un título superior. Irse file Las reglas de la universidad estipulan que puede pasar a ser miembro del cuerpo docente sólo si obtiene un posgrado. Irse file Además, puede mantener su trabajo como instructor sólo si demuestra un avance satisfactorio para obtener este título. Irse file No ha cumplido los requisitos mínimos de educación para ser miembro del cuerpo docente. Irse file Los cursos de posgrado no son estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irse file Licencia en un nuevo estado. Irse file   Una vez que haya cumplido los requisitos mínimos de educación para maestros de su estado, se considera que ha cumplido los requisitos mínimos de educación en todos los estados. Irse file Esto se aplica incluso si tiene que cursar estudios adicionales para recibir la licencia en otro estado. Irse file Los estudios adicionales que necesite son estudios relacionados con el trabajo que reúnen los requisitos para la deducción. Irse file Ya ha cumplido los requisitos mínimos de educación para enseñar. Irse file Enseñar en otro estado no constituye un nuevo oficio o negocio. Irse file Ejemplo. Irse file Posee una licencia permanente para enseñar en el Estado A y ha trabajado como maestro en ese estado durante varios años. Irse file Se muda al Estado B y lo contratan inmediatamente como maestro. Irse file Sin embargo, tiene que realizar ciertos cursos prescritos para obtener una licencia permanente para enseñar en el Estado B. Irse file Estos cursos adicionales son estudios relacionados con el trabajo que reúnen los requisitos de la deducción debido a que el puesto de maestro en el Estado B implica el mismo tipo de trabajo general para el cual reunía los requisitos en el Estado A. Irse file Estudios que lo Capacitan para un Nuevo Oficio o Negocio Los estudios que forman parte de un programa de estudios a fin de capacitarlo para un nuevo oficio o negocio no están relacionados con el trabajo y no reúnen los requisitos de la deducción. Irse file Esto es aplicable incluso si no tiene intención de ingresar en ese oficio o negocio. Irse file Si es empleado, un cambio de deberes que implique el mismo tipo de trabajo general no es un nuevo oficio o negocio. Irse file Ejemplo 1. Irse file Es contador. Irse file Su empleador le exige que saque un título en derecho corriendo con sus propios gastos. Irse file Se inscribe en una escuela de derecho con la intención de cursar el plan de estudios típico para lograr un título en derecho. Irse file Aun si su intención no es ser abogado, los estudios no reúnen los requisitos de la deducción debido a que el título en derecho lo capacitará para un nuevo oficio o negocio. Irse file Ejemplo 2. Irse file Es médico de medicina general. Irse file Toma un curso de dos semanas para revisar los avances en diversos campos especializados de la medicina. Irse file El curso no lo capacita para una nueva profesión. Irse file Se considera que está relacionado con el trabajo y reúne los requisitos de la deducción porque mantiene o mejora las destrezas requeridas en su profesión actual. Irse file Ejemplo 3. Irse file Durante su trabajo en la práctica privada de psiquiatría, ingresa a un programa para estudiar y capacitarse en un instituto de psicoanálisis acreditado. Irse file El programa lo capacitará para practicar el psicoanálisis. Irse file La formación en psicoanálisis no lo capacitará para una nueva profesión. Irse file Está relacionada con el trabajo y reúne los requisitos de la deducción porque mantiene o mejora las destrezas necesarias en su profesión actual. Irse file Curso de preparación para el examen de reválida de derecho o para el examen para contadores públicos autorizados Los cursos de preparación para el examen de reválida para ejercer la abogacía o el examen para contadores públicos autorizados (CPA, por sus siglas en inglés) no son estudios relacionados con el trabajo que cumplan los requisitos. Irse file Forman parte de un programa de estudios que puede capacitarlo para una nueva profesión. Irse file Deberes Magisteriales y Afines Todos los deberes magisteriales y deberes afines se consideran relativamente el mismo tipo de trabajo. Irse file Un cambio de deberes de cualquiera de las siguientes maneras no se considera un cambio a una nueva ocupación: Maestro de escuela primaria a maestro de escuela secundaria. Irse file Maestro de una asignatura, como biología, a maestro de otra asignatura, como arte. Irse file Maestro a consejero académico. Irse file Maestro a administrador escolar. Irse file Qué Gastos se Pueden Deducir Si sus estudios satisfacen los requisitos descritos anteriormente en Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción , por lo general, puede deducir sus gastos de estudios como gastos de negocios. Irse file Si no trabaja por cuenta propia, puede deducir gastos de negocios sólo si detalla sus deducciones. Irse file No puede deducir gastos relacionados con ingresos exentos ni excluidos de impuestos. Irse file Gastos deducibles. Irse file   Se pueden deducir los siguientes gastos de estudios: Matrícula, libros, útiles escolares, cuotas de laboratorio y artículos similares. Irse file Ciertos costos de transporte y viajes. Irse file Otros gastos de estudios, como costos de investigación y de procesamiento de palabras (mecanografía) al escribir un ensayo o tésis como parte de un programa de estudios. Irse file Gastos no deducibles. Irse file   No puede deducir sus gastos personales o de capital. Irse file Por ejemplo, no puede deducir el valor en dólares de un período de vacaciones o permiso anual (vacaciones remuneradas) que toma para asistir a clases. Irse file Esta cantidad es un gasto personal. Irse file Reembolso no reclamado. Irse file   Aun si no reclama reembolsos a los que tiene derecho a recibir de su empleador, no puede deducir los gastos correspondientes a ese reembolso no reclamado. Irse file Ejemplo. Irse file Su empleador acuerda pagar sus gastos de estudios si usted presenta un vale que muestre sus gastos. Irse file Usted no presenta un vale y no se los reembolsan. Irse file Como no presentó un vale, no puede deducir los gastos en su declaración de impuestos. Irse file Gastos de Transporte Si sus estudios reúnen los requisitos, puede deducir los costos de transporte locales en los que tiene que incurrir para viajar directamente del trabajo a la escuela. Irse file Si tiene un trabajo habitual y asiste a la escuela de forma temporal, también puede deducir los costos de regreso de la escuela a su domicilio. Irse file Asistencia temporal. Irse file   Asiste a la escuela de manera temporal si alguna de las siguientes situaciones corresponde a su caso: Se espera de manera realista que su asistencia a la escuela dure 1 año o menos y en realidad dura 1 año o menos. Irse file Al principio, se espera de manera realista que su asistencia a la escuela dure 1 año o menos, pero posteriormente es factible que dure más de 1 año. Irse file Su asistencia es temporal hasta la fecha en la que determine que durará más de 1 año. Irse file Nota: Si se encuentra en la situación (1) o (2), su asistencia no es temporal si los hechos y las circunstancias indican lo contrario. Irse file Asistencia no temporal. Irse file   No asiste a la escuela de manera temporal si alguna de las siguientes situaciones le corresponde: Se espera de manera realista que su asistencia a la escuela dure más de 1 año. Irse file No importa cuánto tiempo de hecho asista. Irse file Al principio, se espera de manera realista que su asistencia a la escuela dure 1 año o menos, pero posteriormente se espera que dure más de 1 año. Irse file Su asistencia no es temporal después de la fecha en la que se determine que durará más de 1 año. Irse file Gastos de Transporte Deducibles Si trabaja de manera habitual y se dirige directamente de su domicilio a la escuela de manera temporal, puede deducir los costos del viaje de ida y regreso entre su domicilio y la escuela. Irse file Esto es aplicable sin importar la ubicación de dicho lugar, la distancia recorrida o si asiste a cursos en dicho lugar en días no laborables. Irse file Los gastos de transporte incluyen los costos reales de autobús, metro, taxi u otras tarifas, así como los costos del uso de su automóvil. Irse file Los gastos de transporte no incluyen cantidades gastadas por viaje, comidas o alojamiento cuando pasa la noche fuera de su casa. Irse file Ejemplo 1. Irse file Trabaja habitualmente en una ciudad cercana y viaja directamente del trabajo a su domicilio. Irse file Asimismo, asiste a la escuela cada noche entre semana durante 3 meses para tomar un curso que mejore sus destrezas laborales. Irse file Dado que asiste a una escuela de forma temporal, puede deducir sus gastos diarios de transporte de ida y regreso entre su domicilio y la escuela. Irse file Esto es aplicable independientemente de la distancia recorrida. Irse file Ejemplo 2. Irse file Suponga que se dan los mismos hechos que en el Ejemplo 1, salvo que algunas noches se dirige directamente del trabajo a la escuela y luego a su domicilio. Irse file Puede deducir sus gastos de transporte desde su lugar de trabajo habitual a la escuela y luego al domicilio. Irse file Ejemplo 3. Irse file Suponga que se dan los mismos hechos que en el Ejemplo 1, excepto que asiste a la escuela durante 9 meses todos los sábados, los cuales no son días laborables. Irse file Dado que asiste a la escuela de manera temporal, puede deducir sus gastos de transporte de ida y regreso entre su casa y la escuela. Irse file Ejemplo 4. Irse file Suponga que se dan los mismos hechos que en el Ejemplo 1, excepto que asiste a clases dos veces a la semana durante 15 meses. Irse file Dado que su asistencia a la escuela no se considera temporal, no puede deducir sus gastos de transporte entre su casa y la escuela. Irse file Si se dirige a la escuela directamente desde el trabajo, puede deducir los gastos de transporte de ida desde el trabajo a la escuela. Irse file Si del trabajo se dirige a su casa y luego a la escuela y regresa a su casa, sus gastos de transporte no pueden ser mayores que los gastos en los que hubiese incurrido de haber viajado directamente del trabajo a la escuela. Irse file Uso de su automóvil. Irse file   Si usa su automóvil (propio o arrendado) para viajar a la escuela, puede deducir sus gastos reales o utilizar la tarifa estándar de millaje para calcular la cantidad que puede deducir. Irse file La tarifa estándar por millas recorridas desde el 1 de enero de 2013 hasta el 31 de diciembre de 2013 es 56½ centavos por milla. Irse file Independientemente de los métodos que escoja, también puede deducir cargos de estacionamiento y peajes. Irse file Vea el capítulo 26 para obtener información acerca de la deducción de sus gastos reales por el uso de un automóvil. Irse file Gastos de Viaje Puede deducir gastos de viajes, comidas (vea Límite del 50% del costo de comidas , más adelante) y alojamiento si viaja de un día a otro principalmente para realizar estudios con derecho a deducción relacionados con el trabajo. Irse file Los gastos de viaje para estudios relacionados con el trabajo que reúnen los requisitos de la deducción reciben el mismo trato tributario que los gastos de viaje para otros propósitos de negocios del empleado. Irse file Para más información, vea el capítulo 26. Irse file No puede deducir gastos de actividades personales, como turismo, visitas o entretenimiento. Irse file Viajes principalmente con fines personales. Irse file   Si su viaje fuera de casa es principalmente con fines personales, no puede deducir todos sus gastos de viaje, comidas o alojamiento. Irse file Sólo puede deducir sus gastos de alojamiento y el 50% de sus gastos de comidas durante el período en el que asista a actividades de educación que reúnen los requisitos. Irse file   El determinar si el propósito del viaje es principalmente personal o para estudios depende de los hechos y las circunstancias. Irse file Un factor importante es la comparación del tiempo dedicado a actividades personales con el tiempo dedicado a actividades de educación. Irse file Si dedica más tiempo a actividades personales, el viaje se considera principalmente para estudios sólo si puede demostrar una razón importante y no personal de por qué viajó a un lugar específico. Irse file Ejemplo 1. Irse file Juan trabaja en Newark, Nueva Jersey. Irse file Viajó a Chicago para tomar un curso de una semana, a solicitud de su empleador, que puede deducir de sus impuestos. Irse file Su razón principal para viajar a Chicago fue el curso. Irse file Durante su estadía, realizó un viaje de turismo, salió a divertirse con algunos amigos y realizó un viaje adicional por el día a Pleasantville. Irse file Dado que el viaje era principalmente de negocios, Juan puede deducir su boleto aéreo de ida y vuelta a Chicago. Irse file No puede deducir los gastos de transporte de su viaje a Pleasantville. Irse file Sólo puede deducir las comidas (conforme al límite del 50%) y alojamiento relacionados con sus actividades educativas. Irse file Ejemplo 2. Irse file Susana trabaja en Boston. Irse file Asistió a una universidad en Michigan a fin de tomar un curso para su trabajo. Irse file El curso está relacionado con el trabajo y reúne los requisitos de la deducción. Irse file Tomó un curso, que corresponde a un cuarto de la carga de estudios a tiempo completo. Irse file El resto del tiempo lo dedicó a actividades personales. Irse file Sus razones para tomar el curso en Michigan fueron personales. Irse file El viaje de Susana es principalmente personal, ya que tres cuartos de su tiempo se consideran tiempo personal. Irse file No puede deducir el costo de su boleto de tren de ida y regreso a Michigan. Irse file Puede deducir un cuarto del costo de las comidas (conforme al límite del 50%) y del alojamiento del período en que asistió a la universidad. Irse file Ejemplo 3. Irse file David trabaja en Nashville y recientemente viajó a California para asistir a un seminario de 2 semanas. Irse file El seminario está relacionado con el trabajo y reúne los requisitos de la deducción. Irse file Durante su estadía, dedicó 8 semanas adicionales a actividades personales. Irse file Los hechos, incluida la estadía adicional de 8 semanas, demuestran que su finalidad principal era tomarse unas vacaciones. Irse file David no puede deducir su boleto de avión de ida y vuelta ni sus comidas y alojamiento durante las 8 semanas. Irse file Sólo puede deducir sus gastos por comida (sujeto al límite del 50%) y alojamiento durante las 2 semanas que asistió al seminario. Irse file Cruceros y congresos. Irse file   Algunos cruceros y congresos ofrecen seminarios o cursos como parte de su itinerario. Irse file Aun si los seminarios o cursos están relacionados con el trabajo, su deducción por viaje puede verse limitada. Irse file Esto es aplicable a: Viajes en buque transatlántico, crucero u otra forma de transporte marítimo de lujo y Congresos fuera del área de Norteamérica. Irse file   Si desea consultar más acerca de los límites de deducciones de gastos de viaje que sean aplicables a cruceros y congresos, vea Luxury Water Travel (Viajes en buques de lujo) y Conventions (Congresos) en el capítulo 1 de la Publicación 463, en inglés. Irse file Límite del 50% del costo de comidas. Irse file   Sólo puede deducir el 50% del costo de sus comidas cuando viaja fuera de casa para realizar estudios relacionados con el trabajo que reúnan los requisitos de la deducción. Irse file No se le pueden haber reembolsado los gastos por las comidas. Irse file   Los empleados tienen que usar el Formulario 2106 o el Formulario 2106-EZ para aplicar el límite del 50%. Irse file Viajes con Fines Educativos No puede deducir el costo de sus viajes con fines educativos, incluso si están directamente relacionados con los deberes de su trabajo o negocio. Irse file Ejemplo. Irse file Usted es maestro de francés. Irse file Durante una ausencia sabática otorgada para viajar, recorrió Francia para mejorar sus conocimientos del francés. Irse file Elige su itinerario y la mayoría de sus actividades con el fin de mejorar sus destrezas lingüísticas en francés. Irse file No puede deducir sus gastos de viaje como gastos de estudios. Irse file Esto es aplicable aunque haya dedicado la mayor parte del tiempo a aprender francés visitando escuelas y familias francesas, asistiendo a películas u obras de teatro y participando en actividades similares. Irse file No se Permiten Beneficios Dobles No se le permite hacer lo siguiente: Deducir los gastos de estudios relacionados con el trabajo como gastos de negocios si deduce estos gastos conforme con cualquier otra disposición de la ley, por ejemplo, la deducción de matrículas y cuotas (vea el capítulo 35). Irse file Deducir los gastos de estudios relacionados con el trabajo pagados con fondos de ayuda para los estudios provistos por el empleador, subvención o beca libre de impuestos. Irse file Vea Ajustes a Gastos de Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción , a continuación. Irse file Ajustes a Gastos de Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción Si paga gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción con determinados fondos exentos de impuestos, no puede reclamar una deducción por estas cantidades. Irse file Tiene que reducir la cantidad de los gastos que reúnen los requisitos por la cantidad de tales gastos que le pueden corresponder a la asistencia para estudios exenta de impuestos. Irse file Para más información, vea el capítulo 12 de la Publicación 970, en inglés. Irse file La asistencia para estudios exenta de impuestos incluye: La parte exenta de impuestos de becas de estudios y becas de investigación (vea el capítulo 1 de la Publicación 970, en inglés); La parte exenta de impuestos de las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés); La parte exenta de impuestos de la asistencia para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970, en inglés); Asistencia para estudios destinada a veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no gravable (libre de impuestos) (que no sean regalos o herencias) que reciba como asistencia para los estudios. Irse file Cantidades que no reducen los gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irse file   No reduzca los gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción las cantidades pagadas con fondos que el estudiante reciba como: Un pago por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. Irse file   Tampoco reduzca la cantidad de los gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción por la cantidad de una beca de estudios o beca de investigación declarada como ingreso en la declaración de impuestos del estudiante ni becas que, según lo establecido, no se puedan aplicar a gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irse file Reembolsos El trato tributario que dé a los reembolsos depende del acuerdo que tenga con su empleador. Irse file Existen dos tipos básicos de acuerdos de reembolso: planes con rendición de cuentas y planes sin rendición de cuentas. Irse file Puede determinar el tipo de plan mediante el cual se le reembolsa según la manera en que se declara el reembolso en su Formulario W-2. Irse file Para información sobre cómo tratar los reembolsos bajo planes con rendición de cuentas y planes sin rendición de cuentas, vea Reembolsos en el capítulo 26. Irse file Cómo Deducir Gastos de Negocios Las personas que trabajan por cuenta propia y los empleados declaran los gastos de negocios de manera diferente. Irse file La siguiente información explica qué formularios tiene que usar para deducir como gasto de negocios el costo de sus estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irse file Personas que Trabajan por Cuenta Propia Si trabaja por cuenta propia, declare el costo de sus estudios relacionados con el trabajo que reúnen los requisitos de la deducción en el formulario correspondiente que se utilizó para declarar su ingreso de negocio y gastos (generalmente en el Anexo C, C-EZ o F). Irse file Si sus gastos de estudios incluyen gastos de automóvil o camión, viajes o comidas, declare estos gastos de la misma forma en la que declara los demás gastos de negocios para esas partidas. Irse file Vea las instrucciones del formulario que presente para obtener información acerca de cómo completarlo. Irse file Empleados Si es empleado, puede deducir el costo de estudios relacionados con el trabajo que reúnen los requisitos de la deducción sólo si: No recibió (y no tuvo derecho a recibir) reembolsos de su empleador; Se le reembolsó conforme a un plan sin rendición de cuentas (la cantidad se incluye en el recuadro 1 del Formulario W-2) o Recibió un reembolso conforme a un plan con rendición de cuentas, pero la cantidad recibida fue menor que sus gastos por los cuales usted reclamó un reembolso. Irse file Si le corresponde el punto (1) o (2), puede deducir la totalidad del costo que reúne los requisitos de la deducción. Irse file Si le corresponde el punto (3), puede deducir sólo los costos mayores que su reembolso que reúnen los requisitos de la deducción. Irse file Para deducir como gasto de negocios el costo de sus estudios relacionados con el trabajo que reúnen los requisitos de la deducción, incluya la cantidad con su deducción para todos los demás gastos de negocios del empleado en la línea 21 del Anexo A (Formulario 1040). Irse file (Más adelante se explican las reglas especiales para gastos de ciertos artistas del espectáculo y funcionarios a los que se les pagan honorarios y para gastos de trabajo relacionados con un impedimento). Irse file Esta deducción (con la excepción de los gastos del trabajo relacionados con el impedimento de personas discapacitadas) está sujeta al límite de ingreso bruto ajustado del 2% aplicable a la mayoría de las deducciones detalladas misceláneas. Irse file Vea el capítulo 28. Irse file Formulario 2106 o 2106-EZ. Irse file   Para calcular su deducción con respecto a los gastos de negocios del empleado, incluidos los estudios relacionados con el trabajo que reúnen los requisitos de la deducción, por lo general tiene que completar el Formulario 2106 o el Formulario 2106-EZ. Irse file No se requiere el formulario. Irse file   No complete el Formulario 2106 ni el Formulario 2106-EZ si: Las cantidades incluidas en el recuadro 1 de su Formulario W-2 no se consideran reembolsos y No declara gastos de viaje, transporte, comidas o entretenimiento. Irse file   Si cumple los dos requisitos anteriores, anote los gastos directamente en la línea 21 del Anexo A (Formulario 1040). Irse file (Más adelante se explican las reglas especiales para gastos de ciertos artistas del espectáculo y funcionarios a los que se les pagan honorarios y para gastos de trabajo relacionados con un impedimento). Irse file Uso del Formulario 2106-EZ. Irse file   Este formulario es más corto y fácil de usar que el Formulario 2106. Irse file Por lo general, puede usar este formulario si: Todos los reembolsos, si los hubiera, se incluyeron en el recuadro 1 de su Formulario W-2 y Utiliza la tarifa estándar por millas si declara gastos de vehículo. Irse file   Si no cumple estos dos requisitos, utilice el Formulario 2106. Irse file Artistas del Espectáculo y Funcionarios a los que se les Pagan Honorarios Si es artista del espectáculo que reúne los requisitos o funcionario del gobierno estatal (o local) que recibe su pago total o en parte de honorarios, puede deducir el costo de sus estudios relacionado con el trabajo que reúne los requisitos de la deducción como ajuste al ingreso bruto en lugar de una deducción detallada. Irse file Incluya el costo de sus estudios relacionados con el trabajo que reúnen los requisitos de la deducción junto con todos los demás gastos de negocios del empleado y anote el total en la línea 24 del Formulario 1040. Irse file No tiene que detallar sus deducciones en el Anexo A (Formulario 1040) y, por lo tanto, la deducción no está sujeta al límite de ingreso bruto ajustado del 2%. Irse file Tiene que completar el Formulario 2106 o 2106-EZ para calcular su deducción, incluso si cumple los requisitos descritos anteriormente bajo No se requiere el formulario . Irse file Para más información acerca de los artistas del espectáculo que reúnen los requisitos, vea el capítulo 6 de la Publicación 463, en inglés. Irse file Gastos de Trabajo Relacionados con un Impedimento Si está incapacitado y tiene gastos de trabajo relacionados con un impedimento que sean necesarios para permitirle realizar estudios relacionados con el trabajo, que reúnen los requisitos de la deducción, puede deducir estos gastos en la línea 28 del Anexo A (Formulario 1040). Irse file No están sujetos al límite del 2% del ingreso bruto ajustado. Irse file Para deducir estos gastos, tiene que completar el Formulario 2106 o 2106-EZ, aun si cumple los requisitos descritos anteriormente en No se requiere el formulario . Irse file Para más información acerca de gastos de trabajo relacionados con un impedimento, vea el capítulo 6 de la Publicación 463, en inglés. Irse file Documentación Tiene que mantener documentación como comprobante de las deducciones reclamadas en su declaración de impuestos. Irse file Por lo general, debe mantener su documentación durante 3 años desde la fecha de presentación de la declaración y de haber reclamado la deducción. Irse file Para obtener información específica acerca de cómo mantener documentación de los gastos de negocios, vea Mantenimiento de Documentación en el capítulo 26. Irse file Prev  Up  Next   Home   More Online Publications
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Legal Help for Consumers

What to do if you have to hire an attorney or go to Small Claims Court to resolve a consumer problem.

The Irse File

Irse file 1. Irse file   Traditional IRAs Table of Contents What's New for 2013 What's New for 2014 Introduction Who Can Open a Traditional IRA?What Is Compensation? When Can a Traditional IRA Be Opened? How Can a Traditional IRA Be Opened?Individual Retirement Account Individual Retirement Annuity Individual Retirement Bonds Simplified Employee Pension (SEP) Employer and Employee Association Trust Accounts Required Disclosures How Much Can Be Contributed?Limit. Irse file When repayment contributions can be made. Irse file No deduction. Irse file Reserve component. Irse file Figuring your IRA deduction. Irse file Reporting the repayment. Irse file Example. Irse file General Limit Kay Bailey Hutchison Spousal IRA Limit Filing Status Less Than Maximum Contributions More Than Maximum Contributions When Can Contributions Be Made? How Much Can You Deduct?Kay Bailey Hutchison Spousal IRA. Irse file Are You Covered by an Employer Plan? Limit if Covered by Employer Plan Reporting Deductible Contributions Nondeductible Contributions Examples — Worksheet for Reduced IRA Deduction for 2013 What if You Inherit an IRA?Treating it as your own. Irse file Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. Irse file Trustee-to-Trustee Transfer Rollovers Transfers Incident To Divorce Converting From Any Traditional IRA Into a Roth IRA Recharacterizations When Can You Withdraw or Use Assets?Contributions Returned Before Due Date of Return When Must You Withdraw Assets? (Required Minimum Distributions)IRA Owners IRA Beneficiaries Which Table Do You Use To Determine Your Required Minimum Distribution? What Age(s) Do You Use With the Table(s)? Miscellaneous Rules for Required Minimum Distributions Are Distributions Taxable?January 2013 QCDs treated as made in 2012. Irse file 2013 Reporting. Irse file Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. Irse file One-time transfer. Irse file Testing period rules apply. Irse file More information. Irse file Distributions Fully or Partly Taxable Figuring the Nontaxable and Taxable Amounts Recognizing Losses on Traditional IRA Investments Other Special IRA Distribution Situations Reporting and Withholding Requirements for Taxable Amounts What Acts Result in Penalties or Additional Taxes?Prohibited Transactions Investment in Collectibles Excess Contributions Early Distributions Excess Accumulations (Insufficient Distributions) Reporting Additional Taxes What's New for 2013 Traditional IRA contribution and deduction limit. Irse file  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. Irse file If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. Irse file For more information, see How Much Can Be Contributed? in this chapter. Irse file Modified AGI limit for traditional IRA contributions increased. Irse file  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Irse file If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. Irse file If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irse file See How Much Can You Deduct? in this chapter. Irse file Net Investment Income Tax. Irse file  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). Irse file However, these distributions are taken into account when determining the modified adjusted gross income threshold. Irse file Distributions from a nonqualified retirement plan are included in net investment income. Irse file See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Irse file What's New for 2014 Modified AGI limit for traditional IRA contributions increased. Irse file  For 2014, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying widow(er), More than $60,000 but less than $70,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Irse file If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. Irse file If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irse file Introduction This chapter discusses the original IRA. Irse file In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Irse file ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Irse file The following are two advantages of a traditional IRA: You may be able to deduct some or all of your contributions to it, depending on your circumstances. Irse file Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Irse file Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. Irse file You can have a traditional IRA whether or not you are covered by any other retirement plan. Irse file However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. Irse file See How Much Can You Deduct , later. Irse file Both spouses have compensation. Irse file   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. Irse file You cannot both participate in the same IRA. Irse file If you file a joint return, only one of you needs to have compensation. Irse file What Is Compensation? Generally, compensation is what you earn from working. Irse file For a summary of what compensation does and does not include, see Table 1-1. Irse file Compensation includes all of the items discussed next (even if you have more than one type). Irse file Wages, salaries, etc. Irse file   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. Irse file The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). Irse file Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. Irse file Commissions. Irse file   An amount you receive that is a percentage of profits or sales price is compensation. Irse file Self-employment income. Irse file   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deduction allowed for the deductible part of your self-employment taxes. Irse file   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Irse file Self-employment loss. Irse file   If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation. Irse file Alimony and separate maintenance. Irse file   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. Irse file Nontaxable combat pay. Irse file   If you were a member of the U. Irse file S. Irse file Armed Forces, compensation includes any nontaxable combat pay you received. Irse file This amount should be reported in box 12 of your 2013 Form W-2 with code Q. Irse file Table 1-1. Irse file Compensation for Purposes of an IRA Includes . Irse file . Irse file . Irse file Does not include . Irse file . Irse file . Irse file   earnings and profits from property. Irse file wages, salaries, etc. Irse file     interest and dividend income. Irse file commissions. Irse file     pension or annuity income. Irse file self-employment income. Irse file     deferred compensation. Irse file alimony and separate maintenance. Irse file     income from certain  partnerships. Irse file nontaxable combat pay. Irse file     any amounts you exclude from income. Irse file     What Is Not Compensation? Compensation does not include any of the following items. Irse file Earnings and profits from property, such as rental income, interest income, and dividend income. Irse file Pension or annuity income. Irse file Deferred compensation received (compensation payments postponed from a past year). Irse file Income from a partnership for which you do not provide services that are a material income-producing factor. Irse file Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Irse file Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Irse file When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Irse file However, the time for making contributions for any year is limited. Irse file See When Can Contributions Be Made , later. Irse file How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. Irse file You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Irse file You can also open an IRA through your stockbroker. Irse file Any IRA must meet Internal Revenue Code requirements. Irse file The requirements for the various arrangements are discussed below. Irse file Kinds of traditional IRAs. Irse file   Your traditional IRA can be an individual retirement account or annuity. Irse file It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Irse file Individual Retirement Account An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. Irse file The account is created by a written document. Irse file The document must show that the account meets all of the following requirements. Irse file The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian. Irse file The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. Irse file However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. Irse file Contributions, except for rollover contributions, must be in cash. Irse file See Rollovers , later. Irse file You must have a nonforfeitable right to the amount at all times. Irse file Money in your account cannot be used to buy a life insurance policy. Irse file Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. Irse file You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. Irse file See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Irse file Individual Retirement Annuity You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. Irse file An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. Irse file An individual retirement annuity must meet all the following requirements. Irse file Your entire interest in the contract must be nonforfeitable. Irse file The contract must provide that you cannot transfer any portion of it to any person other than the issuer. Irse file There must be flexible premiums so that if your compensation changes, your payment can also change. Irse file This provision applies to contracts issued after November 6, 1978. Irse file The contract must provide that contributions cannot be more than the deductible amount for an IRA for the year, and that you must use any refunded premiums to pay for future premiums or to buy more benefits before the end of the calendar year after the year in which you receive the refund. Irse file Distributions must begin by April 1 of the year following the year in which you reach age 70½. Irse file See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Irse file Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. Irse file The bonds have the following features. Irse file They stop earning interest when you reach age 70½. Irse file If you die, interest will stop 5 years after your death, or on the date you would have reached age 70½, whichever is earlier. Irse file You cannot transfer the bonds. Irse file If you cash (redeem) the bonds before the year in which you reach age 59½, you may be subject to a 10% additional tax. Irse file See Age 59½ Rule under Early Distributions, later. Irse file You can roll over redemption proceeds into IRAs. Irse file Simplified Employee Pension (SEP) A simplified employee pension (SEP) is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (a SEP IRA) set up for you to receive such contributions. Irse file Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. Irse file See Publication 560 for more information about SEPs. Irse file Employer and Employee Association Trust Accounts Your employer or your labor union or other employee association can set up a trust to provide individual retirement accounts for employees or members. Irse file The requirements for individual retirement accounts apply to these traditional IRAs. Irse file Required Disclosures The trustee or issuer (sometimes called the sponsor) of your traditional IRA generally must give you a disclosure statement at least 7 days before you open your IRA. Irse file However, the sponsor does not have to give you the statement until the date you open (or purchase, if earlier) your IRA, provided you are given at least 7 days from that date to revoke the IRA. Irse file The disclosure statement must explain certain items in plain language. Irse file For example, the statement should explain when and how you can revoke the IRA, and include the name, address, and telephone number of the person to receive the notice of cancellation. Irse file This explanation must appear at the beginning of the disclosure statement. Irse file If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. Irse file The sponsor must report on the appropriate IRS forms both your contribution to the IRA (unless it was made by a trustee-to-trustee transfer) and the amount returned to you. Irse file These requirements apply to all sponsors. Irse file How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Irse file These limits and rules are explained below. Irse file Community property laws. Irse file   Except as discussed later under Kay Bailey Hutchison Spousal IRA Limit , each spouse figures his or her limit separately, using his or her own compensation. Irse file This is the rule even in states with community property laws. Irse file Brokers' commissions. Irse file   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Irse file For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. Irse file Trustees' fees. Irse file   Trustees' administrative fees are not subject to the contribution limit. Irse file For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. Irse file Qualified reservist repayments. Irse file   If you were a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined later under Early Distributions) you received. Irse file You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. Irse file To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or a similar arrangement. Irse file Limit. Irse file   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. Irse file When repayment contributions can be made. Irse file   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. Irse file No deduction. Irse file   You cannot deduct qualified reservist repayments. Irse file Reserve component. Irse file   The term “reserve component” means the: Army National Guard of the United States, Army Reserve, Naval Reserve, Marine Corps Reserve, Air National Guard of the United States, Air Force Reserve, Coast Guard Reserve, or Reserve Corps of the Public Health Service. Irse file Figuring your IRA deduction. Irse file   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. Irse file Reporting the repayment. Irse file   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. Irse file Example. Irse file   In 2013, your IRA contribution limit is $5,500. Irse file However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. Irse file You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). Irse file In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. Irse file   For 2013, you can contribute a total of $8,500 to your IRA. Irse file This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $2,000; and a $3,000 qualified reservist repayment. Irse file You contribute the maximum allowable for the year. Irse file Since you are making a nondeductible contribution ($2,000) and a qualified reservist repayment ($3,000), you must file Form 8606 with your return and include $5,000 ($2,000 + $3,000) on line 1 of Form 8606. Irse file The qualified reservist repayment is not deductible. Irse file Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Irse file See chapter 2 for information about Roth IRAs. Irse file General Limit For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation (defined earlier) for the year. Irse file Note. Irse file This limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). Irse file This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. Irse file (See Nondeductible Contributions , later. Irse file ) Qualified reservist repayments do not affect this limit. Irse file Examples. Irse file George, who is 34 years old and single, earns $24,000 in 2013. Irse file His IRA contributions for 2013 are limited to $5,500. Irse file Danny, an unmarried college student working part time, earns $3,500 in 2013. Irse file His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Irse file More than one IRA. Irse file   If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your traditional IRAs for the year. Irse file Annuity or endowment contracts. Irse file   If you invest in an annuity or endowment contract under an individual retirement annuity, no more than $5,500 ($6,500 if you are age 50 or older) can be contributed toward its cost for the tax year, including the cost of life insurance coverage. Irse file If more than this amount is contributed, the annuity or endowment contract is disqualified. Irse file Kay Bailey Hutchison Spousal IRA Limit For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts: $5,500 ($6,500 if you are age 50 or older), or The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. Irse file Your spouse's IRA contribution for the year to a traditional IRA. Irse file Any contributions for the year to a Roth IRA on behalf of your spouse. Irse file This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is age 50 or older or $13,000 if both of you are age 50 or older). Irse file Note. Irse file This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). Irse file Example. Irse file Kristin, a full-time student with no taxable compensation, marries Carl during the year. Irse file Neither of them was age 50 by the end of 2013. Irse file For the year, Carl has taxable compensation of $30,000. Irse file He plans to contribute (and deduct) $5,500 to a traditional IRA. Irse file If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. Irse file This is because Kristin, who has no compensation, can add Carl's compensation, reduced by the amount of his IRA contribution ($30,000 − $5,500 = $24,500), to her own compensation (-0-) to figure her maximum contribution to a traditional IRA. Irse file In her case, $5,500 is her contribution limit, because $5,500 is less than $24,500 (her compensation for purposes of figuring her contribution limit). Irse file Filing Status Generally, except as discussed earlier under Kay Bailey Hutchison Spousal IRA Limit , your filing status has no effect on the amount of allowable contributions to your traditional IRA. Irse file However, if during the year either you or your spouse was covered by a retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and income. Irse file See How Much Can You Deduct , later. Irse file Example. Irse file Tom and Darcy are married and both are 53. Irse file They both work and each has a traditional IRA. Irse file Tom earned $3,800 and Darcy earned $48,000 in 2013. Irse file Because of the Kay Bailey Hutchison Spousal IRA limit rule, even though Tom earned less than $6,500, they can contribute up to $6,500 to his IRA for 2013 if they file a joint return. Irse file They can contribute up to $6,500 to Darcy's IRA. Irse file If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. Irse file Less Than Maximum Contributions If contributions to your traditional IRA for a year were less than the limit, you cannot contribute more after the due date of your return for that year to make up the difference. Irse file Example. Irse file Rafael, who is 40, earns $30,000 in 2013. Irse file Although he can contribute up to $5,500 for 2013, he contributes only $3,000. Irse file After April 15, 2014, Rafael cannot make up the difference between his actual contributions for 2013 ($3,000) and his 2013 limit ($5,500). Irse file He cannot contribute $2,500 more than the limit for any later year. Irse file More Than Maximum Contributions If contributions to your IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. Irse file However, a penalty or additional tax may apply. Irse file See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. Irse file When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). Irse file Contributions must be in the form of money (cash, check, or money order). Irse file Property cannot be contributed. Irse file Although property cannot be contributed, your IRA may invest in certain property. Irse file For example, your IRA may purchase shares of stock. Irse file For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. Irse file You may be able to transfer or roll over certain property from one retirement plan to another. Irse file See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . Irse file You can make a contribution to your IRA by having your income tax refund (or a portion of your refund), if any, paid directly to your traditional IRA, Roth IRA, or SEP IRA. Irse file For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). Irse file Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. Irse file For any year in which you do not work, contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation. Irse file See Who Can Open a Traditional IRA , earlier. Irse file Even if contributions cannot be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. Irse file Contributions can resume for any years that you qualify. Irse file Contributions must be made by due date. Irse file   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. Irse file For most people, this means that contributions for 2013 must be made by April 15, 2014, and contributions for 2014 must be made by April 15, 2015. Irse file Age 70½ rule. Irse file   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Irse file   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Irse file If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Irse file Designating year for which contribution is made. Irse file   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. Irse file If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). Irse file Filing before a contribution is made. Irse file    You can file your return claiming a traditional IRA contribution before the contribution is actually made. Irse file Generally, the contribution must be made by the due date of your return, not including extensions. Irse file Contributions not required. Irse file   You do not have to contribute to your traditional IRA for every tax year, even if you can. Irse file How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if applicable) explained earlier under How Much Can Be Contributed . Irse file However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Irse file See Limit if Covered by Employer Plan , later. Irse file You may be able to claim a credit for contributions to your traditional IRA. Irse file For more information, see chapter 4. Irse file Trustees' fees. Irse file   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Irse file However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Irse file For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. Irse file Brokers' commissions. Irse file   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Irse file Full deduction. Irse file   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more of your traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older), or 100% of your compensation. Irse file   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Irse file Kay Bailey Hutchison Spousal IRA. Irse file   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of: $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older), or The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. Irse file The IRA deduction for the year of the spouse with the greater compensation. Irse file Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Irse file Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Irse file   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. Irse file Note. Irse file If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. Irse file After a divorce or legal separation, you can deduct only the contributions to your own IRA. Irse file Your deductions are subject to the rules for single individuals. Irse file Covered by an employer retirement plan. Irse file   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. Irse file This is discussed later under Limit if Covered by Employer Plan . Irse file Limits on the amount you can deduct do not affect the amount that can be contributed. Irse file Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. Irse file The “Retirement Plan” box should be checked if you were covered. Irse file Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. Irse file If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Irse file Federal judges. Irse file   For purposes of the IRA deduction, federal judges are covered by an employer plan. Irse file For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. Irse file These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Irse file Tax year. Irse file   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Irse file For almost all people, the tax year is the calendar year. Irse file Defined contribution plan. Irse file   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. Irse file However, also see Situations in Which You Are Not Covered , later. Irse file   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Irse file In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. Irse file The level of benefits actually provided to a participant depends on the total amount contributed to that participant's account and any earnings and losses on those contributions. Irse file Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Irse file Example. Irse file Company A has a money purchase pension plan. Irse file Its plan year is from July 1 to June 30. Irse file The plan provides that contributions must be allocated as of June 30. Irse file Bob, an employee, leaves Company A on December 31, 2012. Irse file The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. Irse file Because an amount is contributed to Bob's account for the plan year, Bob is covered by the plan for his 2013 tax year. Irse file   A special rule applies to certain plans in which it is not possible to determine if an amount will be contributed to your account for a given plan year. Irse file If, for a plan year, no amounts have been allocated to your account that are attributable to employer contributions, employee contributions, or forfeitures, by the last day of the plan year, and contributions are discretionary for the plan year, you are not covered for the tax year in which the plan year ends. Irse file If, after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in which the contribution is made. Irse file Example. Irse file Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. Irse file The plan year runs from July 1 to June 30. Irse file Under the terms of the plan, employer contributions do not have to be made, but if they are made, they are contributed to the plan before the due date for filing the company's tax return. Irse file Such contributions are allocated as of the last day of the plan year, and allocations are made to the accounts of individuals who have any service during the plan year. Irse file As of June 30, 2013, no contributions were made that were allocated to the June 30, 2013, plan year, and no forfeitures had been allocated within the plan year. Irse file In addition, as of that date, the company was not obligated to make a contribution for such plan year and it was impossible to determine whether or not a contribution would be made for the plan year. Irse file On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. Irse file That contribution was made on February 15, 2014. Irse file Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. Irse file No vested interest. Irse file   If an amount is allocated to your account for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the account. Irse file Defined benefit plan. Irse file   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. Irse file This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. Irse file   A defined benefit plan is any plan that is not a defined contribution plan. Irse file In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. Irse file The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. Irse file Defined benefit plans include pension plans and annuity plans. Irse file Example. Irse file Nick, an employee of Company B, is eligible to participate in Company B's defined benefit plan, which has a July 1 to June 30 plan year. Irse file Nick leaves Company B on December 31, 2012. Irse file Because Nick is eligible to participate in the plan for its year ending June 30, 2013, he is covered by the plan for his 2013 tax year. Irse file No vested interest. Irse file   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. Irse file Situations in Which You Are Not Covered Unless you are covered by another employer plan, you are not covered by an employer plan if you are in one of the situations described below. Irse file Social security or railroad retirement. Irse file   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Irse file Benefits from previous employer's plan. Irse file   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Irse file Reservists. Irse file   If the only reason you participate in a plan is because you are a member of a reserve unit of the Armed Forces, you may not be covered by the plan. Irse file You are not covered by the plan if both of the following conditions are met. Irse file The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Irse file You did not serve more than 90 days on active duty during the year (not counting duty for training). Irse file Volunteer firefighters. Irse file   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. Irse file You are not covered by the plan if both of the following conditions are met. Irse file The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Irse file Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Irse file Limit if Covered by Employer Plan As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. Irse file Your deduction is also affected by how much income you had and by your filing status. Irse file Your deduction may also be affected by social security benefits you received. Irse file Reduced or no deduction. Irse file   If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. Irse file   Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. Irse file These amounts vary depending on your filing status. Irse file   To determine if your deduction is subject to the phaseout, you must determine your modified adjusted gross income (AGI) and your filing status, as explained later under Deduction Phaseout . Irse file Once you have determined your modified AGI and your filing status, you can use Table 1-2 or Table 1-3 to determine if the phaseout applies. Irse file Social Security Recipients Instead of using Table 1-2 or Table 1-3 and Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, later, complete the worksheets in Appendix B of this publication if, for the year, all of the following apply. Irse file You received social security benefits. Irse file You received taxable compensation. Irse file Contributions were made to your traditional IRA. Irse file You or your spouse was covered by an employer retirement plan. Irse file Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. Irse file Appendix B includes an example with filled-in worksheets to assist you. Irse file Table 1-2. Irse file Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Irse file IF your filing status is . Irse file . Irse file . Irse file AND your modified adjusted gross income (modified AGI) is . Irse file . Irse file . Irse file THEN you can take . Irse file . Irse file . Irse file single or head of household $59,000 or less a full deduction. Irse file more than $59,000 but less than $69,000 a partial deduction. Irse file $69,000 or more no deduction. Irse file married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. Irse file more than $95,000 but less than $115,000 a partial deduction. Irse file $115,000 or more no deduction. Irse file married filing separately2 less than $10,000 a partial deduction. Irse file $10,000 or more no deduction. Irse file 1 Modified AGI (adjusted gross income). Irse file See Modified adjusted gross income (AGI) , later. Irse file  2 If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” filing status). Irse file Table 1-3. Irse file Effect of Modified AGI1 on Deduction if You Are NOT Covered by a Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Irse file IF your filing status is . Irse file . Irse file . Irse file AND your modified adjusted gross income (modified AGI) is . Irse file . Irse file . Irse file THEN you can take . Irse file . Irse file . Irse file single, head of household, or qualifying widow(er) any amount a full deduction. Irse file married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. Irse file married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. Irse file more than $178,000 but less than $188,000 a partial deduction. Irse file $188,000 or more no deduction. Irse file married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. Irse file $10,000 or more no deduction. Irse file 1 Modified AGI (adjusted gross income). Irse file See Modified adjusted gross income (AGI) , later. Irse file  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. Irse file For 2014, if you are not covered by a retirement plan at work and you are married filing jointly with a spouse who is covered by a plan at work, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. Irse file If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. Irse file Deduction Phaseout The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan. Irse file Covered by a retirement plan. Irse file   If you are covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI, as shown in Table 1-2. Irse file For 2014, if you are covered by a retirement plan at work, your IRA deduction will not be reduced (phased out) unless your modified AGI is: More than $60,000 but less than $70,000 for a single individual (or head of household), More than $96,000 but less than $116,000 for a married couple filing a joint return (or a qualifying widow(er)), or Less than $10,000 for a married individual filing a separate return. Irse file If your spouse is covered. Irse file   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 1-3. Irse file Filing status. Irse file   Your filing status depends primarily on your marital status. Irse file For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. Irse file If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Irse file Lived apart from spouse. Irse file   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. Irse file Modified adjusted gross income (AGI). Irse file   You can use Worksheet 1-1 to figure your modified AGI. Irse file If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Both contributions for 2013 and distributions in 2013 , later. Irse file    Do not assume that your modified AGI is the same as your compensation. Irse file Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. Irse file Form 1040. Irse file   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Irse file IRA deduction. Irse file Student loan interest deduction. Irse file Tuition and fees deduction. Irse file Domestic production activities deduction. Irse file Foreign earned income exclusion. Irse file Foreign housing exclusion or deduction. Irse file Exclusion of qualified savings bond interest shown on Form 8815. Irse file Exclusion of employer-provided adoption benefits shown on Form 8839. Irse file This is your modified AGI. Irse file Form 1040A. Irse file   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Irse file IRA deduction. Irse file Student loan interest deduction. Irse file Tuition and fees deduction. Irse file Exclusion of qualified savings bond interest shown on Form 8815. Irse file This is your modified AGI. Irse file Form 1040NR. Irse file   If you file Form 1040NR, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Irse file IRA deduction. Irse file Student loan interest deduction. Irse file Domestic production activities deduction. Irse file Exclusion of qualified savings bond interest shown on Form 8815. Irse file Exclusion of employer-provided adoption benefits shown on Form 8839. Irse file This is your modified AGI. Irse file Income from IRA distributions. Irse file   If you received distributions in 2013 from one or more traditional IRAs and your traditional IRAs include only deductible contributions, the distributions are fully taxable and are included in your modified AGI. Irse file Both contributions for 2013 and distributions in 2013. Irse file   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Irse file You received distributions in 2013 from one or more traditional IRAs, You made contributions to a traditional IRA for 2013, and Some of those contributions may be nondeductible contributions. Irse file (See Nondeductible Contributions and Worksheet 1-2, later. Irse file ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Irse file To do this, you can use Worksheet 1-5, later. Irse file   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. Irse file How To Figure Your Reduced IRA Deduction If you or your spouse is covered by an employer retirement plan and you did not receive any social security benefits, you can figure your reduced IRA deduction by using Worksheet 1-2. Irse file Figuring Your Reduced IRA Deduction for 2013. Irse file The Instructions for Form 1040, Form 1040A, and Form 1040NR include similar worksheets that you can use instead of the worksheet in this publication. Irse file If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients , earlier. Irse file Note. Irse file If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irse file Worksheet 1-1. Irse file Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. Irse file 1. Irse file Enter your adjusted gross income (AGI) from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37, figured without taking into account the amount from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 1. Irse file   2. Irse file Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. Irse file   3. Irse file Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Irse file   4. Irse file Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. Irse file   5. Irse file Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Irse file   6. Irse file Enter any foreign housing deduction from Form 2555, line 50 6. Irse file   7. Irse file Enter any excludable savings bond interest from Form 8815, line 14 7. Irse file   8. Irse file Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Irse file   9. Irse file Add lines 1 through 8. Irse file This is your Modified AGI for traditional IRA purposes 9. Irse file   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Irse file If you file Form 1040A, enter your IRA deduction on line 17 of that form. Irse file If you file Form 1040NR, enter your IRA deduction on line 32 of that form. Irse file You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. Irse file Self-employed. Irse file   If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Form 1040, line 28. Irse file If you file Form 1040NR, enter your deduction on line 28 of that form. Irse file Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA of up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. Irse file The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Irse file Example. Irse file Tony is 29 years old and single. Irse file In 2013, he was covered by a retirement plan at work. Irse file His salary is $62,000. Irse file His modified AGI is $70,000. Irse file Tony makes a $5,500 IRA contribution for 2013. Irse file Because he was covered by a retirement plan and his modified AGI is above $69,000, he cannot deduct his $5,500 IRA contribution. Irse file He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. Irse file Repayment of reservist distributions. Irse file   Nondeductible contributions may include repayments of qualified reservist distributions. Irse file For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. Irse file Form 8606. Irse file   To designate contributions as nondeductible, you must file Form 8606. Irse file (See the filled-in Forms 8606 in this chapter. Irse file )   You do not have to designate a contribution as nondeductible until you file your tax return. Irse file When you file, you can even designate otherwise deductible contributions as nondeductible contributions. Irse file   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Irse file    A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. Irse file In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Irse file See Form 8606 under Distributions Fully or Partly Taxable, later. Irse file Failure to report nondeductible contributions. Irse file   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. Irse file All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Irse file Penalty for overstatement. Irse file   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. Irse file Penalty for failure to file Form 8606. Irse file   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. Irse file Tax on earnings on nondeductible contributions. Irse file   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. Irse file Cost basis. Irse file   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Irse file Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Irse file    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. Irse file See Are Distributions Taxable, later, for more information. Irse file Recordkeeping. Irse file There is a recordkeeping worksheet, Appendix A. Irse file Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. Irse file Examples — Worksheet for Reduced IRA Deduction for 2013 The following examples illustrate the use of Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013. Irse file Example 1. Irse file For 2013, Tom and Betty file a joint return on Form 1040. Irse file They are both 39 years old. Irse file They are both employed and Tom is covered by his employer's retirement plan. Irse file Tom's salary is $59,000 and Betty's is $32,555. Irse file They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. Irse file Because their modified AGI is between $95,000 and $115,000 and Tom is covered by an employer plan, Tom is subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . Irse file For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. Irse file Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. Irse file Tom can take a deduction of only $5,080. Irse file He can choose to treat the $5,080 as either deductible or nondeductible contributions. Irse file He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Irse file He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. Irse file Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. Irse file Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. Irse file Betty figures her IRA deduction as follows. Irse file Betty can treat all or part of her contributions as either deductible or nondeductible. Irse file This is because her $5,500 contribution for 2013 is not subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . Irse file She does not need to use Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, because their modified AGI is not within the phaseout range that applies. Irse file Betty decides to treat her $5,500 IRA contributions as deductible. Irse file The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. Irse file Example 2. Irse file For 2013, Ed and Sue file a joint return on Form 1040. Irse file They are both 39 years old. Irse file Ed is covered by his employer's retirement plan. Irse file Ed's salary is $45,000. Irse file Sue had no compensation for the year and did not contribute to an IRA. Irse file Sue is not covered by an employer plan. Irse file Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). Irse file Their combined modified AGI, which includes $2,000 interest and dividend income and a large capital gain from the sale of stock, is $180,555. Irse file Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. Irse file He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Irse file Sue figures her IRA deduction as shown on Worksheet 1-2. Irse file Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. Irse file Worksheet 1-2. Irse file Figuring Your Reduced IRA Deduction for 2013 (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Irse file ) Note. Irse file If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irse file IF you . Irse file . Irse file . Irse file AND your  filing status is . Irse file . Irse file . Irse file AND your modified AGI is over . Irse file . Irse file . Irse file THEN enter on  line 1 below . Irse file . Irse file . Irse file       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Irse file Enter applicable amount from table above 1. Irse file   2. Irse file Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irse file     Note. Irse file If line 2 is equal to or more than the amount on line 1, stop here. Irse file  Your IRA contributions are not deductible. Irse file See Nondeductible Contributions , earlier. Irse file     3. Irse file Subtract line 2 from line 1. Irse file If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Irse file You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Irse file   4. Irse file Multiply line 3 by the percentage below that applies to you. Irse file If the result is not a multiple of $10, round it to the next highest multiple of $10. Irse file (For example, $611. Irse file 40 is rounded to $620. Irse file ) However, if the result is less than $200, enter $200. Irse file         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irse file 5% (. Irse file 275) (by 32. Irse file 5% (. Irse file 325) if you are age 50 or older). Irse file All others, multiply line 3 by 55% (. Irse file 55) (by 65% (. Irse file 65) if you are age 50 or older). Irse file 4. Irse file   5. Irse file Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Irse file If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Irse file If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irse file   6. Irse file Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Irse file If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irse file 6. Irse file   7. Irse file IRA deduction. Irse file Compare lines 4, 5, and 6. Irse file Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Irse file If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irse file   8. Irse file Nondeductible contribution. Irse file Subtract line 7 from line 5 or 6, whichever is smaller. Irse file  Enter the result here and on line 1 of your Form 8606 8. Irse file   Worksheet 1-2. Irse file Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Irse file ) Note. Irse file If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irse file IF you . Irse file . Irse file . Irse file AND your  filing status is . Irse file . Irse file . Irse file AND your modified AGI is over . Irse file . Irse file . Irse file THEN enter on  line 1 below . Irse file . Irse file . Irse file       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Irse file Enter applicable amount from table above 1. Irse file 115,000 2. Irse file Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irse file 96,555   Note. Irse file If line 2 is equal to or more than the amount on line 1, stop here. Irse file  Your IRA contributions are not deductible. Irse file See Nondeductible Contributions , earlier. Irse file     3. Irse file Subtract line 2 from line 1. Irse file If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Irse file You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Irse file 18,445 4. Irse file Multiply line 3 by the percentage below that applies to you. Irse file If the result is not a multiple of $10, round it to the next highest multiple of $10. Irse file (For example, $611. Irse file 40 is rounded to $620. Irse file ) However, if the result is less than $200, enter $200. Irse file         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irse file 5% (. Irse file 275) (by 32. Irse file 5% (. Irse file 325) if you are age 50 or older). Irse file All others, multiply line 3 by 55% (. Irse file 55) (by 65% (. Irse file 65) if you are age 50 or older). Irse file 4. Irse file 5,080 5. Irse file Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Irse file If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Irse file If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irse file 59,000 6. Irse file Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Irse file If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irse file 6. Irse file 5,500 7. Irse file IRA deduction. Irse file Compare lines 4, 5, and 6. Irse file Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Irse file If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irse file 5,080 8. Irse file Nondeductible contribution. Irse file Subtract line 7 from line 5 or 6, whichever is smaller. Irse file  Enter the result here and on line 1 of your Form 8606 8. Irse file 420 Worksheet 1-2. Irse file Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Irse file ) Note. Irse file If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irse file IF you . Irse file . Irse file . Irse file AND your  filing status is . Irse file . Irse file . Irse file AND your modified AGI is over . Irse file . Irse file . Irse file THEN enter on  line 1 below . Irse file . Irse file . Irse file       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Irse file Enter applicable amount from table above 1. Irse file 188,000 2. Irse file Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irse file 180,555   Note. Irse file If line 2 is equal to or more than the amount on line 1, stop here. Irse file  Your IRA contributions are not deductible. Irse file See Nondeductible Contributions , earlier. Irse file     3. Irse file Subtract line 2 from line 1. Irse file If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Irse file You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Irse file 7,445 4. Irse file Multiply line 3 by the percentage below that applies to you. Irse file If the result is not a multiple of $10, round it to the next highest multiple of $10. Irse file (For example, $611. Irse file 40 is rounded to $620. Irse file ) However, if the result is less than $200, enter $200. Irse file         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irse file 5% (. Irse file 275) (by 32. Irse file 5% (. Irse file 325) if you are age 50 or older). Irse file All others, multiply line 3 by 55% (. Irse file 55) (by 65% (. Irse file 65) if you are age 50 or older). Irse file 4. Irse file 4,100 5. Irse file Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Irse file If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Irse file If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irse file 39,500 6. Irse file Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Irse file If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irse file 6. Irse file 5,500 7. Irse file IRA deduction. Irse file Compare lines 4, 5, and 6. Irse file Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Irse file If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irse file 4,100 8. Irse file Nondeductible contribution. Irse file Subtract line 7 from line 5 or 6, whichever is smaller. Irse file  Enter the result here and on line 1 of your Form 8606 8. Irse file 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. Irse file A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Irse file Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Irse file Inherited from spouse. Irse file   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Irse file You can: Treat it as your own IRA by designating yourself as the account owner. Irse file Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (s