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Tax Amend

Tax Return AmendmentForm 1040x 2011Irs Extension FormsH&r Online1040nr Ez 20131040ez Online FilingFree Federal Tax Filing 2011Printable Tax Form 1040xElectronic File 1040ezFreetaxusa 2010Taxes OnlineIrs Tax Return 2011E File Amended 1040x1040x 2008Federal Tax Form 1040xMilitary State TaxE-file 2012Efile Tax ExtensionWhere To Mail 1040xH&r Block My BlockAarp Free Tax Preparation LocationsCan You File 1040ez OnlineTax Amendment FormFederal Ez Form2010 Tax Forms 1040ezHow To File State Tax ReturnStateincometax2010 Form 10401040ez Electronic FilingFiling Form 1040x2010 Amended Tax Form1040 Ez Form 2011H&r Block TaxesFree State Tax ExtensionFile Amended Tax Return 2009Need 2010 Taxes1040ez Form For 2013Irs Form 1040x 2013 Tax Return2012 1040ez FormHow Do I File Self Employment Taxes

Tax Amend

Tax amend Publication 510 - Introductory Material Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Excise Taxes Not Covered What's New Medical device excise tax. Tax amend  The Affordable Care Act (the “Act”) (Public Law 111-148, amended by Public Law 111-152) imposes a 2. Tax amend 3% (. Tax amend 023) excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device. Tax amend The tax applies to sales of taxable medical devices after December 31, 2012. Tax amend See Taxable Medical Devices in chapter 5, later. Tax amend Tax on seasonal flu vaccines. Tax amend  Sales of all vaccines against seasonal influenza are now subject to the section 4131 excise tax at the existing rate of $. Tax amend 75 per dose of taxable vaccine. Tax amend Previously, only trivalent influenza vaccines were subject to this tax. Tax amend See Vaccines in chapter 5, later. Tax amend Patient-centered outcomes research fee. Tax amend  The Act imposes a fee on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4576) to help fund the Patient-Centered Outcomes Research Institute. Tax amend The fee, required to be reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st, is based on the average number of lives covered under the policy or plan. Tax amend The fee applies to policy or plan years ending on or after October 1, 2012. Tax amend See chapter 11, later. Tax amend Extension of fuel tax credits. Tax amend  The following section 6426 credits, previously expired on December 31, 2011, are retroactively extended. Tax amend Biodiesel or renewable diesel mixture credit. Tax amend Alternative fuel credit. Tax amend Alternative fuel mixture credit. Tax amend See Notice 2013–26 (fuel tax credits) on page 984 of I. Tax amend R. Tax amend B. Tax amend 2013–18 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb13-18. Tax amend pdf; also see chapter 2, later. Tax amend Alternative fuel mixture credit can be claimed on Schedule C (Form 720) only. Tax amend  For alternative fuel mixtures produced after December 31, 2011, the section 6426 alternative fuel mixture credit can be claimed on Schedule C (Form 720) only, not on Form 4136, Credit for Federal Tax Paid on Fuels, or Schedule 3 (Form 8849), Claim for Refund of Excise Taxes, and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel, and kerosene. Tax amend See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit in chapter 2, later. Tax amend Expiration of alcohol fuel mixture credit. Tax amend  The section 6426 alcohol fuel mixture credit expired after December 31, 2011. Tax amend Expiration of alcohol fuels credits. Tax amend  The section 40 alcohol, alcohol mixture, and small ethanol producer credits expired after December 31, 2011. Tax amend Second generation biofuel producer credit and excise tax. Tax amend  The section 40 cellulosic biofuel producer credit was retroactively extended to include fuel sold or used through January 2, 2013. Tax amend After January 2, 2013, cellulosic biofuel is renamed second generation biofuel, which adds algae-based fuel. Tax amend The second generation biofuel producer credit is for fuel sold or used after January 2, 2013, and before January 1, 2014. Tax amend You are liable for an excise tax on each gallon of cellulosic or second generation biofuel at the rate you used to figure the credit if you do not use the fuel for the purposes described under Qualified Cellulosic Biofuel Production or Qualified Second Generation Biofuel Production, later. Tax amend Report the tax on Form 720. Tax amend See Cellulosic or Second Generation Biofuel Not Used as Fuel, later; also see Form 6478, Biofuel Producer Credit, for more information. Tax amend Extension of section 40A biodiesel fuels credit. Tax amend  The biodiesel fuels credit, previously expired on December 31, 2011, is retroactively extended. Tax amend Future developments. Tax amend  The IRS has created a page on IRS. Tax amend gov that includes information about Publication 510 at www. Tax amend irs. Tax amend gov/pub510. Tax amend Information about any future developments will be posted on that page. Tax amend Reminders Publication 510 updates. Tax amend  Publication 510 is not updated annually. Tax amend Instead, it will be updated only when there are major changes in the tax law. Tax amend Use of international air travel facilities. Tax amend  Generally, the tax on the use of international air travel facilities increases annually. Tax amend See the Instructions for Form 720 for the tax rate. Tax amend For more information, see Air Transportation Taxes in chapter 4. Tax amend Aviation fuels for use in foreign trade. Tax amend  Aviation gasoline and kerosene for use in aviation are exempt from the leaking underground storage tank (LUST) tax. Tax amend Arrow shafts, tax rate. Tax amend  Generally, the tax on arrow shafts increases annually. Tax amend See Form 720 for the tax rate. Tax amend Disregarded entities and qualified subchapter S subsidiaries. Tax amend  Qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax and reporting purposes. Tax amend QSubs and eligible single-owner disregarded entities must pay and report excise taxes (other than IRS Nos. Tax amend 31, 51, and 117), register for most excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). Tax amend These actions cannot take place under the owner's taxpayer identification number (TIN). Tax amend Some QSubs and disregarded entities may already have an EIN. Tax amend However, if you are unsure, please call the IRS Business and Specialty Tax line at 1-800-829-4933. Tax amend Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). Tax amend For more information on these regulations, see Treasury Decision (T. Tax amend D. Tax amend ) 9356, T. Tax amend D. Tax amend 9462, and T. Tax amend D. Tax amend 9596. Tax amend You can find T. Tax amend D. Tax amend 9356 on page 675 of Internal Revenue Bulletin (I. Tax amend R. Tax amend B. Tax amend ) 2007-39 at  www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb07-39. Tax amend pdf;  T. Tax amend D. Tax amend 9462 on page 504 of I. Tax amend R. Tax amend B. Tax amend 2009-42 at  www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb09-42. Tax amend pdf;  and T. Tax amend D. Tax amend 9596 on page 84 of I. Tax amend R. Tax amend B. Tax amend 2012-30 at  www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb12-30. Tax amend pdf. Tax amend Registration for certain activities. Tax amend  You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the bulk transfer/terminal system. Tax amend See the instructions for Form 637 for the list of activities for which you must register. Tax amend Also see Registration Requirements under Fuel Taxes in chapter 1 for information on registration for activities related to fuel. Tax amend Each business unit that has, or is required to have, a separate employer identification number must be registered. Tax amend To apply for registration, complete Form 637 and provide the information requested in its instructions. Tax amend If your application is approved, you will receive a Letter of Registration showing the activities for which you are registered, the effective date of the registration, and your registration number. Tax amend A copy of Form 637 is not a Letter of Registration. Tax amend Photographs of missing children. Tax amend  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Tax amend Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Tax amend You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Tax amend Introduction This publication covers the excise taxes for which you may be liable and which are reported on Form 720 and other forms. Tax amend It also covers fuel tax credits and refunds. Tax amend For information on fuel credits against income tax (the section 40 credits for the production of cellulosic biofuel and second generation biofuel, and the section 40A credit for biodiesel and renewable diesel used as fuel) see the instructions for Form 6478 and Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Tax amend Comments and suggestions. Tax amend   We welcome your comments about this publication and your suggestions for future editions. Tax amend   You can write to us at the following address: Internal Revenue Service Individual and Specialty Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Tax amend NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Tax amend Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Tax amend   You can email us at taxforms@irs. Tax amend gov. Tax amend Please put “Publications Comment” on the subject line. Tax amend You can also send us comments from www. Tax amend irs. Tax amend gov/Forms-&-Pubs/More-Information/ and select “Comment on Tax Forms and Publications”. Tax amend   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Tax amend Useful Items - You may want to see: Publication 509 Tax Calendars Form (and Instructions) 11-C Occupational Tax and Registration Return for Wagering 637 Application for Registration (For Certain Excise Tax Activities) 720 Quarterly Federal Excise Tax Return 720X Amended Quarterly Federal Excise Tax Return 730 Monthly Tax Return for Wagers 1363 Export Exemption Certificate 2290 Heavy Highway Vehicle Use Tax Return 2290(SP) Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras 4136 Credit for Federal Tax Paid on Fuels 6197 Gas Guzzler Tax 6478 Biofuel Producer Credit 6627 Environmental Taxes 8849 Claim for Refund of Excise Taxes, and Schedules 1–3, 5, 6, and 8 8864 Biodiesel and Renewable Diesel Fuels Credit Information Returns    Form 720-TO, Terminal Operator Report Form 720-CS, Carrier Summary Report   See How To Get Tax Help in chapter 17 for information about ordering forms and publications. Tax amend Guidance    You can find Notice 2005-4 (fuel tax guidance) on page 289 of I. Tax amend R. Tax amend B. Tax amend 2005-2 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb05-02. Tax amend pdf. Tax amend Notice 2005-62 (biodiesel and aviation-grade kerosene) on page 443 of I. Tax amend R. Tax amend B. Tax amend 2005-35 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb05-35. Tax amend pdf. Tax amend Notice 2005-80 (LUST, kerosene, claims by credit card issuers, and mechanical dye injection) on page 953 of I. Tax amend R. Tax amend B. Tax amend 2005-46 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb05-46. Tax amend pdf. Tax amend Notice 2006-92 (alternative fuels and alternative fuel mixtures) on page 774 of I. Tax amend R. Tax amend B. Tax amend 2006-43 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb06-43. Tax amend pdf. Tax amend Notice 2008-110 (biodiesel and cellulosic biofuel) on page 1298 of I. Tax amend R. Tax amend B. Tax amend 2008-51 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb08-51. Tax amend pdf. Tax amend Notice 2010-68 (Alaska dyed diesel exemption) on page 576 of I. Tax amend R. Tax amend B. Tax amend 2010-44 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb10-44. Tax amend pdf. Tax amend Notice 2012-27 (fractional aircraft ownership programs fuel surtax) on page 849 of I. Tax amend R. Tax amend B. Tax amend 2012-17 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb12-17. Tax amend pdf. Tax amend Notice 2013-26 (fuel tax credits) on page 984 of I. Tax amend R. Tax amend B. Tax amend 2013-18 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb13-18. Tax amend pdf. Tax amend T. Tax amend D. Tax amend 9604 and Notice 2012–77 (medical device tax) on pages 730 and 781, respectively, of I. Tax amend R. Tax amend B. Tax amend 2012-52 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb12-52. Tax amend pdf. Tax amend T. Tax amend D. Tax amend 9602 (patient-centered outcomes research fee) on page 746 of I. Tax amend R. Tax amend B. Tax amend 2012-52 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb12-52. Tax amend pdf. Tax amend Revenue Procedure 2012-41 (inflation adjustments) on page 539 of I. Tax amend R. Tax amend B. Tax amend 2012-45 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb12-45. Tax amend pdf. Tax amend T. Tax amend D. Tax amend 9621 (indoor tanning services tax) on page 49 of I. Tax amend R. Tax amend B. Tax amend 2013-28 at www. Tax amend irs. Tax amend gov/pub/irs-irbs/irb13-28. Tax amend pdf. Tax amend Excise Taxes Not Covered In addition to the taxes discussed in this publication, you may have to report certain other excise taxes. Tax amend For tax forms relating to alcohol, firearms, and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www. Tax amend ttb. Tax amend gov. Tax amend Heavy highway vehicle use tax. Tax amend   You report the federal excise tax on the use of certain trucks, truck tractors, and buses used on public highways on Form 2290, Heavy Highway Vehicle Use Tax Return. Tax amend The tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Tax amend Vans, pickup trucks, panel trucks, and similar trucks generally are not subject to this tax. Tax amend Note. Tax amend A Spanish version (Formulario 2290(SP)) is also available. Tax amend See How To Get Tax Help in chapter 17. Tax amend Registration of vehicles. Tax amend   Generally, you must prove that you paid your heavy highway vehicle use tax to register your taxable vehicle with your state motor vehicle department or to enter the United States in a Canadian or Mexican registered taxable vehicle. Tax amend Generally, a copy of Schedule 1 (Form 2290) is stamped by the IRS and returned to you as proof of payment. Tax amend    If you have questions on Form 2290, see its separate instructions, or you can call the Form 2290 call site at 1-866-699-4096 (toll free) from the United States, and 1-859-669-5733 (not toll free) from Canada and Mexico. Tax amend The hours of service are 8:00 a. Tax amend m. Tax amend to 6:00 p. Tax amend m. Tax amend Eastern time. Tax amend Wagering tax and occupational tax. Tax amend   The information on wagering tax can be found in the instructions for Form 730, Tax on Wagering, and Form 11-C, Occupational Tax and Registration Return for Wagering. Tax amend Prev  Up  Next   Home   More Online Publications
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PTIN Information and the Freedom of Information Act

The Freedom of Information Act (FOIA), enacted in 1966, gives any person the right to access federal agency records, unless the information is protected from public disclosure by one of nine exemptions. FOIA authorizes government agencies to recover the cost of complying with a FOIA request.

Under FOIA, certain information submitted to the IRS by an individual applying for a preparer tax identification number (PTIN) must be disclosed by the IRS under FOIA, and the individual cannot opt out of the disclosure.

FOIA Awareness for PTIN Holders

The PTIN holder information subject to public disclosure includes:

  • Name
  • Business name
  • Business website address
  • Business phone number
  • Business mailing address – Either a physical address or a P.O. Box is acceptable as a business address.
  • Email address – Any valid email address that you check regularly for PTIN communications is acceptable.
  • Professional credentials

Updating your contact information

To maintain the privacy of your personal information, PTIN holders can update contact information.

Unwanted solicitations

Legitimate IRS emails regarding PTIN issues are sent from two email addresses: irs@service.govdelivery.com and TaxPro_PTIN@irs.gov. The IRS is aware of malicious emails attempting to spoof these email addresses. Pay careful attention to whether an email is actually from one of these addresses. If you feel that you have received a suspicious phishing email, follow the directions found here.

If you receive email solicitations from other organizations and they are unwanted, the Federal Trade Commission, Bureau of Consumer Protection provides guidance on whether an email or other contact violates the CAN-SPAM Act of 2003 and how to report violations.

Additionally, exercise caution on websites without a .gov domain. Only sites with the .gov domain are official government websites.

PTIN application changes

To clearly distinguish between public and private information, the IRS changed the “Permanent Mailing Address” box on the PTIN application to “Personal Mailing Address”. This change clarified that the information is personal and exempt from public disclosure under FOIA rules.

Also, the IRS removed the prohibition on entering a post office box in the “Business Mailing Address” box on the PTIN application. PTIN holders may now enter a P.O. Box as their business mailing address.

If you used your Personal Mailing Address as your Business Mailing Address or used a street address when you preferred to provide a P.O Box as your Business Mailing Address, you may update your contact information. But note that your Business Mailing Address is not exempt from disclosure under FOIA rules and it will be released even if it is the same as your Personal Mailing Address.

Page Last Reviewed or Updated: 11-Sep-2013

The Tax Amend

Tax amend 3. Tax amend   Limit on Annual Additions Table of Contents Ministers and church employees. Tax amend Includible Compensation for Your Most Recent Year of ServiceMost Recent Year of Service Includible Compensation The first component of MAC is the limit on annual additions. Tax amend This is a limit on the total contributions (elective deferrals, nonelective contributions, and after-tax contributions) that can be made to your 403(b) account. Tax amend The limit on annual additions generally is the lesser of: $51,000 for 2013 and $52,000 for 2014, or 100% of your includible compensation for your most recent year of service. Tax amend More than one 403(b) account. Tax amend If you contributed to more than one 403(b) account, you must combine the contributions made to all 403(b) accounts on your behalf by your employer. Tax amend Ministers and church employees. Tax amend   If you are a minister or a church employee, you may be able to increase your limit on annual additions or use different rules when figuring your limit on annual additions. Tax amend For more information, see chapter 5. Tax amend Participation in a qualified plan. Tax amend If you participated in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pensions of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. Tax amend You can use Part I of Worksheet 1 in chapter 9 to figure your limit on annual additions. Tax amend Includible Compensation for Your Most Recent Year of Service Definition. Tax amend   Generally, includible compensation for your most recent year of service is the amount of taxable wages and benefits you received from the employer that maintained a 403(b) account for your benefit during your most recent year of service. Tax amend When figuring your includible compensation for your most recent year of service, keep in mind that your most recent year of service may not be the same as your employer's most recent annual work period. Tax amend This can happen if your tax year is not the same as your employer's annual work period. Tax amend When figuring includible compensation for your most recent year of service, do not mix compensation or service of one employer with compensation or service of another employer. Tax amend Most Recent Year of Service Your most recent year of service is your last full year of service, ending on the last day of your tax year that you worked for the employer that maintained a 403(b) account on your behalf. Tax amend Tax year different from employer's annual work period. Tax amend   If your tax year is not the same as your employer's annual work period, your most recent year of service is made up of parts of at least two of your employer's annual work periods. Tax amend Example. Tax amend A professor who reports her income on a calendar-year basis is employed on a full-time basis by a university that operates on an academic year (October through May). Tax amend To figure her includible compensation for 2013, the professor's most recent year of service is her service from January through May 2013 and from October through December 2013. Tax amend Figuring Your Most Recent Year of Service To figure your most recent year of service, begin by determining what is a full year of service for your position. Tax amend A full year of service is equal to full-time employment for your employer's annual work period. Tax amend After identifying a full year of service, begin counting the service you have provided for your employer starting with the service provided in the current year. Tax amend Part-time or employed only part of the year. Tax amend   If you are a part-time or a full-time employee who is employed for only part of the year, your most recent year of service is your service this year and your service for as many previous years as is necessary to total 1 full year of service. Tax amend To determine your most recent year of service, add the following periods of service: Your service during the year for which you are figuring the limit on annual additions, and Your service during your preceding tax years until the total service equals 1 year of service or you have figured all of your service with the employer. Tax amend Example. Tax amend You were employed on a full-time basis from July through December 2011 (1/2 year of service), July through December 2012 (1/2 year of service), and October through December 2013 (1/4 year of service). Tax amend Your most recent year of service for computing your limit on annual additions for 2013 is the total of your service during 2013 (1/4 year of service), your service during 2012 (1/2 year of service), and your service during the months October through December 2011 (1/4 year of service). Tax amend Not yet employed for 1 year. Tax amend   If, at the close of the year, you have not yet worked for your employer for 1 year (including time you worked for the same employer in all earlier years), use the period of time you have worked for the employer as your most recent year of service. Tax amend Includible Compensation After identifying your most recent year of service, the next step is to identify the includible compensation associated with that full year of service. Tax amend Includible compensation is not the same as income included on your tax return. Tax amend Compensation is a combination of income and benefits received in exchange for services provided to your employer. Tax amend Generally, includible compensation is the amount of income and benefits: Received from the employer who maintains your 403(b) account, and Must be included in your income. Tax amend Includible compensation includes the following amounts. Tax amend Elective deferrals (employer's contributions made on your behalf under a salary reduction agreement). Tax amend Amounts contributed or deferred by your employer under a section 125 cafeteria plan. Tax amend Amounts contributed or deferred, at the election of the employee, under an eligible section 457 nonqualified deferred compensation plan (state or local government or tax-exempt organization plan). Tax amend  Note. Tax amend For information about treating elective deferrals under section 457 plans as Roth contributions, see Publication 575. Tax amend Wages, salaries, and fees for personal services earned with the employer maintaining your 403(b) account. Tax amend Income otherwise excluded under the foreign earned income exclusion. Tax amend Pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan. Tax amend Includible compensation does not include the following items. Tax amend Your employer's contributions to your 403(b) account. Tax amend Compensation earned while your employer was not an eligible employer. Tax amend Your employer's contributions to a qualified plan that: Are on your behalf, and Are excludable from income. Tax amend The cost of incidental life insurance. Tax amend See Cost of Incidental Life Insurance, later. Tax amend If you are a church employee or a foreign missionary, figure includible compensation using the rules explained in chapter 5. Tax amend Contributions after retirement. Tax amend   Nonelective contributions may be made for an employee for up to 5 years after retirement. Tax amend These contributions would be based on includible compensation for the last year of service before retirement. Tax amend Cost of Incidental Life Insurance Includible compensation does not include the cost of incidental life insurance. Tax amend If all of your 403(b) accounts invest only in mutual funds, then you have no incidental life insurance. Tax amend If you have an annuity contract, a portion of the cost of that contract may be for incidental life insurance. Tax amend If so, the cost of the insurance is taxable to you in the year contributed and is considered part of your basis when distributed. Tax amend Your employer will include the cost of your insurance as taxable wages in box 1 of Form W-2. Tax amend Not all annuity contracts include life insurance. Tax amend Contact your plan administrator to determine if your contract includes incidental life insurance. Tax amend If it does, you will need to figure the cost of life insurance each year the policy is in effect. Tax amend Figuring the cost of incidental life insurance. Tax amend If you have determined that part of the cost of your annuity contract is for an incidental life insurance premium, you will need to determine the amount of the premium and subtract it from your includible compensation. Tax amend To determine the amount of the life insurance premiums, you will need to know the following information. Tax amend The value of your life insurance contract, which is the amount payable upon your death. Tax amend The cash value of your life insurance contract at the end of the tax year. Tax amend Your age on your birthday nearest the beginning of the policy year. Tax amend Your current life insurance protection under an ordinary retirement income life insurance policy, which is the amount payable upon your death minus the cash value of the contract at the end of the year. Tax amend You can use Worksheet A, in chapter 9, to determine the cost of your incidental life insurance. Tax amend Example. Tax amend Your new contract provides that your beneficiary will receive $10,000 if you should die before retirement. Tax amend Your cash value in the contract at the end of the first year is zero. Tax amend Your current life insurance protection for the first year is $10,000 ($10,000 − 0). Tax amend The cash value in the contract at the end of year two is $1,000, and the current life insurance protection for the second year is $9,000 ($10,000 – $1,000). Tax amend The 1-year cost of the protection can be calculated by using Figure 3-1, Table of One-Year Term Premiums for $1,000 Life Insurance Protection . Tax amend The premium rate is determined based on your age on your birthday nearest the beginning of the policy year. Tax amend Figure 3-1. Tax amend Table of One-Year Term Premiums for $1,000 Life Insurance Protection Age Cost   Age Cost   Age Cost 0 $0. Tax amend 70   35 $0. Tax amend 99   70 $20. Tax amend 62 1 0. Tax amend 41   36 1. Tax amend 01   71 22. Tax amend 72 2 0. Tax amend 27   37 1. Tax amend 04   72 25. Tax amend 07 3 0. Tax amend 19   38 1. Tax amend 06   73 27. Tax amend 57 4 0. Tax amend 13   39 1. Tax amend 07   74 30. Tax amend 18 5 0. Tax amend 13   40 1. Tax amend 10   75 33. Tax amend 05 6 0. Tax amend 14   41 1. Tax amend 13   76 36. Tax amend 33 7 0. Tax amend 15   42 1. Tax amend 20   77 40. Tax amend 17 8 0. Tax amend 16   43 1. Tax amend 29   78 44. Tax amend 33 9 0. Tax amend 16   44 1. Tax amend 40   79 49. Tax amend 23 10 0. Tax amend 16   45 1. Tax amend 53   80 54. Tax amend 56 11 0. Tax amend 19   46 1. Tax amend 67   81 60. Tax amend 51 12 0. Tax amend 24   47 1. Tax amend 83   82 66. Tax amend 74 13 0. Tax amend 28   48 1. Tax amend 98   83 73. Tax amend 07 14 0. Tax amend 33   49 2. Tax amend 13   84 80. Tax amend 35 15 0. Tax amend 38   50 2. Tax amend 30   85 88. Tax amend 76 16 0. Tax amend 52   51 2. Tax amend 52   86 99. Tax amend 16 17 0. Tax amend 57   52 2. Tax amend 81   87 110. Tax amend 40 18 0. Tax amend 59   53 3. Tax amend 20   88 121. Tax amend 85 19 0. Tax amend 61   54 3. Tax amend 65   89 133. Tax amend 40 20 0. Tax amend 62   55 4. Tax amend 15   90 144. Tax amend 30 21 0. Tax amend 62   56 4. Tax amend 68   91 155. Tax amend 80 22 0. Tax amend 64   57 5. Tax amend 20   92 168. Tax amend 75 23 0. Tax amend 66   58 5. Tax amend 66   93 186. Tax amend 44 24 0. Tax amend 68   59 6. Tax amend 06   94 206. Tax amend 70 25 0. Tax amend 71   60 6. Tax amend 51   95 228. Tax amend 35 26 0. Tax amend 73   61 7. Tax amend 11   96 250. Tax amend 01 27 0. Tax amend 76   62 7. Tax amend 96   97 265. Tax amend 09 28 0. Tax amend 80   63 9. Tax amend 08   98 270. Tax amend 11 29 0. Tax amend 83   64 10. Tax amend 41   99 281. Tax amend 05 30 0. Tax amend 87   65 11. Tax amend 90       31 0. Tax amend 90   66 13. Tax amend 51       32 0. Tax amend 93   67 15. Tax amend 20       33 0. Tax amend 96   68 16. Tax amend 92       34 0. Tax amend 98   69 18. Tax amend 70                       If the current published premium rates per $1,000 of insurance protection charged by an insurer for individual 1-year term life insurance premiums available to all standard risks are lower than those in the preceding table, you can use the lower rates for figuring the cost of insurance in connection with individual policies issued by the same insurer. Tax amend Example 1. Tax amend Lynne Green, age 44, and her employer enter into a 403(b) plan that will provide her with a $500 a month annuity upon retirement at age 65. Tax amend The agreement also provides that if she should die before retirement, her beneficiary will receive the greater of $20,000 or the cash surrender value in the life insurance contract. Tax amend Using the facts presented we can determine the cost of Lynne's life insurance protection as shown in Table 3-1. Tax amend Lynne's employer has included $28 for the cost of the life insurance protection in her current year's income. Tax amend When figuring her includible compensation for this year, Lynne will subtract $28. Tax amend Table 3-1. Tax amend Worksheet A. Tax amend Cost of Incidental Life Insurance Note. Tax amend Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Tax amend This amount will be used to figure includible compensation for your most recent year of service. Tax amend 1. Tax amend Enter the value of the contract (amount payable upon your death) 1. Tax amend $20,000. Tax amend 00 2. Tax amend Enter the cash value in the contract at the end of the year 2. Tax amend 0. Tax amend 00 3. Tax amend Subtract line 2 from line 1. Tax amend This is the value of your current life insurance protection 3. Tax amend $20,000. Tax amend 00 4. Tax amend Enter your age on your birthday nearest the beginning of the policy year 4. Tax amend 44 5. Tax amend Enter the 1-year term premium for $1,000 of life insurance based on your age. Tax amend (From Figure 3-1) 5. Tax amend $1. Tax amend 40 6. Tax amend Divide line 3 by $1,000 6. Tax amend 20 7. Tax amend Multiply line 6 by line 5. Tax amend This is the cost of your incidental life insurance 7. Tax amend $28. Tax amend 00 Example 2. Tax amend Lynne's cash value in the contract at the end of the second year is $1,000. Tax amend In year two, the cost of Lynne's life insurance is calculated as shown in Table 3-2. Tax amend In year two, Lynne's employer will include $29. Tax amend 07 in her current year's income. Tax amend Lynne will subtract this amount when figuring her includible compensation. Tax amend Table 3-2. Tax amend Worksheet A. Tax amend Cost of Incidental Life Insurance Note. Tax amend Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Tax amend This amount will be used to figure includible compensation for your most recent year of service. Tax amend 1. Tax amend Enter the value of the contract (amount payable upon your death) 1. Tax amend $20,000. Tax amend 00 2. Tax amend Enter the cash value in the contract at the end of the year 2. Tax amend $1,000. Tax amend 00 3. Tax amend Subtract line 2 from line 1. Tax amend This is the value of your current life insurance protection 3. Tax amend $19,000. Tax amend 00 4. Tax amend Enter your age on your birthday nearest the beginning of the policy year 4. Tax amend 45 5. Tax amend Enter the 1-year term premium for $1,000 of life insurance based on your age. Tax amend (From Figure 3-1) 5. Tax amend $1. Tax amend 53 6. Tax amend Divide line 3 by $1,000 6. Tax amend 19 7. Tax amend Multiply line 6 by line 5. Tax amend This is the cost of your incidental life insurance 7. Tax amend $29. Tax amend 07 Figuring Includible Compensation for Your Most Recent Year of Service You can use Worksheet B in chapter 9 to determine your includible compensation for your most recent year of service. Tax amend Example. Tax amend Floyd has been periodically working full-time for a local hospital since September 2011. Tax amend He needs to figure his limit on annual additions for 2014. Tax amend The hospital's normal annual work period for employees in Floyd's general type of work runs from January to December. Tax amend During the periods that Floyd was employed with the hospital, the hospital has always been eligible to provide a 403(b) plan to employees. Tax amend Additionally, the hospital has never provided the employees with a 457 deferred compensation plan, a transportation fringe benefit plan, or a cafeteria plan. Tax amend Floyd has never worked abroad and there is no life insurance provided under the plan. Tax amend Table 3-3 shows the service Floyd provided to his employer, his compensation for the periods worked, his elective deferrals, and his taxable wages. Tax amend Table 3-3. Tax amend Floyd's Compensation Note. Tax amend This table shows information Floyd will use to figure includible compensation for his most recent year of service. Tax amend   Year Years of Service Taxable Wages Elective Deferrals 2014 6/12 of  a year $42,000 $2,000 2013 4/12 of  a year $16,000 $1,650 2012 4/12 of  a year $16,000 $1,650 Before Floyd can figure his limit on annual additions, he must figure includible compensation for his most recent year of service. Tax amend Because Floyd is not planning to work the entire 2014 year, his most recent year of service will include the time he is planning to work in 2014 plus time he worked in the preceding 3 years until the time he worked for the hospital totals 1 year. Tax amend If the total time he worked is less than 1 year, Floyd will treat it as if it were 1 year. Tax amend He figures his most recent year of service shown in the following list. Tax amend Time he will work in 2014 is 6/12 of a year. Tax amend Time worked in 2013 is 4/12 of a year. Tax amend All of this time will be used to determine Floyd's most recent year of service. Tax amend Time worked in 2012 is 4/12 of a year. Tax amend Floyd only needs 2 months of the 4 months he worked in 2012 to have enough time to total 1 full year. Tax amend Because he needs only one-half of the actual time he worked, Floyd will use only one-half of his income earned during that period to calculate wages that will be used in figuring his includible compensation. Tax amend Using the information provided in Table 3-3, wages for Floyd's most recent year of service are $66,000 ($42,000 + $16,000 + $8,000). Tax amend His includible compensation for his most recent year of service is figured as shown in Table 3-4. Tax amend After figuring his includible compensation, Floyd determines his limit on annual additions for 2014 to be $52,000, the lesser of his includible compensation, $70,475 (Table 3-4), and the maximum amount of $52,000. Tax amend Table 3-4. Tax amend Worksheet B. Tax amend Includible Compensation for Your Most Recent Year of Service1 Note. Tax amend Use this worksheet to figure includible compensation for your most recent year of service. Tax amend 1. Tax amend Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. Tax amend $66,000 2. Tax amend Enter elective deferrals excluded from your gross income for your most recent year of service2 2. Tax amend 4,4753 3. Tax amend Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. Tax amend -0- 4. Tax amend Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government, or of a tax-exempt organization) for your most recent year of service 4. Tax amend -0- 5. Tax amend Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. Tax amend -0- 6. Tax amend Enter your foreign earned income exclusion for your most recent year of service 6. Tax amend -0- 7. Tax amend Add lines 1, 2, 3, 4, 5, and 6 7. Tax amend 70,475 8. Tax amend Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. Tax amend -0- 9. Tax amend Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. Tax amend -0- 10. Tax amend Add lines 8 and 9 10. Tax amend -0- 11. Tax amend Subtract line 10 from line 7. Tax amend This is your includible compensation for your most recent year of service 11. Tax amend 70,475 1Use estimated amounts if figuring includible compensation before the end of the year. Tax amend 2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. Tax amend  3$4,475 ($2,000 + $1,650 + $825). Tax amend Prev  Up  Next   Home   More Online Publications