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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Tax Return Amendment

Irs Forms 1040x Instructions2010 Form 1040a2011 1040 Ez Form760 State Tax Form 2013FreefileNj 1040nr FormIrs 1040nrUnemployed File TaxesFree Federal And State Tax Filing 2012How To Refile Taxes2010 E File TaxesEz 1040 Form2012 Irs Forms 1040Irs Ez2009 Tax ReturnsHow To File Taxes For Self Employment IncomeForm 1040a 2012Irs Tax FormsFill 1040x Form OnlineHow To File Unemployment TaxesFile Taxes Online 1040ez FreeTax Form 1040xTax AmendmentsFile Free H&r Block540ezState Tax Return 20131040 X Tax FormNeed To Amend 2010 Tax ReturnTax Form 1040ez 2014Filing Amended Tax Return 2011Tax BackTurbo Tax AmmendFree 1040 EzOregon Tax Return Form 1040ez1040x Electronic FilingE File Tax ReturnsInstruction Booklet For 1040xDownload 1040ez Federal Tax FormEz 1040 Form 2011Turbotax Freedom Edition

Tax Return Amendment

Tax return amendment Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. Tax return amendment Gross monthly rate. Tax return amendment Your cost. Tax return amendment Choosing a survivor annuity after retirement. Tax return amendment Canceling a survivor annuity after retirement. Tax return amendment Annuity starting date after 1986. Tax return amendment Annuity starting date before 1987. Tax return amendment Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. Tax return amendment Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. Tax return amendment The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. Tax return amendment If the refund includes only your contributions, none of the refund is taxable. Tax return amendment If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). Tax return amendment If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Tax return amendment See Rollover Rules in Part II for information on how to make a rollover. Tax return amendment Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. Tax return amendment Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. Tax return amendment If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Tax return amendment If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. Tax return amendment For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Tax return amendment A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. Tax return amendment Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. Tax return amendment OPM will tell you how to make the choice. Tax return amendment The choice for no withholding remains in effect until you change it. Tax return amendment These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. Tax return amendment If you choose not to have tax withheld, or if you do not have enough tax withheld, you may have to make estimated tax payments. Tax return amendment You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. Tax return amendment Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. Tax return amendment For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. Tax return amendment Form CSA 1099R. Tax return amendment   Form CSA 1099R is mailed to you by OPM each year. Tax return amendment It will show any tax you had withheld. Tax return amendment File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. Tax return amendment    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. Tax return amendment servicesonline. Tax return amendment opm. Tax return amendment gov. Tax return amendment To log in, you will need your retirement CSA claim number and your personal identification number. Tax return amendment Choosing no withholding on payments outside the United States. Tax return amendment   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. Tax return amendment   To choose no withholding if you are a U. Tax return amendment S. Tax return amendment citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. Tax return amendment Otherwise, OPM has to withhold tax. Tax return amendment For example, OPM must withhold if you provide a U. Tax return amendment S. Tax return amendment address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. Tax return amendment S. Tax return amendment home address. Tax return amendment   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. Tax return amendment S. Tax return amendment citizen, a U. Tax return amendment S. Tax return amendment resident alien, or someone who left the United States to avoid tax. Tax return amendment But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Tax return amendment For details, see Publication 519, U. Tax return amendment S. Tax return amendment Tax Guide for Aliens. Tax return amendment Withholding certificate. Tax return amendment   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. Tax return amendment The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. Tax return amendment If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. Tax return amendment To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Tax return amendment C. Tax return amendment calling area must call 202-606-0500). Tax return amendment No special form is needed. Tax return amendment You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. Tax return amendment If you have TTY/TDD equipment, call 1-855–887–4957. Tax return amendment If you need a PIN, call OPM's Retirement Information Office. Tax return amendment You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. Tax return amendment servicesonline. Tax return amendment opm. Tax return amendment gov. Tax return amendment You will need your retirement CSA or CSF claim number and your PIN. Tax return amendment Withholding from certain lump-sum payments. Tax return amendment   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. Tax return amendment Tax will be withheld at a 20% rate on the interest distributed. Tax return amendment However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. Tax return amendment If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. Tax return amendment Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. Tax return amendment See Rollover Rules in Part II. Tax return amendment If you receive only your contributions, no tax will be withheld. Tax return amendment Withholding from Thrift Savings Plan payments. Tax return amendment   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. Tax return amendment The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. Tax return amendment  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. Tax return amendment By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. Tax return amendment   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. Tax return amendment The above document is also available in the “Forms & Publications” section of the TSP website at www. Tax return amendment tsp. Tax return amendment gov. Tax return amendment Estimated tax. Tax return amendment   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). Tax return amendment The return must cover all 12 months. Tax return amendment   You do not have to pay estimated tax for 2014 if you were a U. Tax return amendment S. Tax return amendment citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. Tax return amendment   Publication 505 contains information that you can use to help you figure your estimated tax payments. Tax return amendment Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. Tax return amendment The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. Tax return amendment Children. Tax return amendment   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. Tax return amendment   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. Tax return amendment Form CSF 1099R. Tax return amendment   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. Tax return amendment It will show the total amount of the annuity you received in the past year. Tax return amendment It also should show, separately, the survivor annuity for a child or children. Tax return amendment Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. Tax return amendment   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. Tax return amendment    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. Tax return amendment servicesonline. Tax return amendment opm. Tax return amendment gov. Tax return amendment To log in you will need your retirement CSF claim number and personal identification number. Tax return amendment    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Tax return amendment C. Tax return amendment calling area must call 202-606-0500). Tax return amendment You will need your CSF claim number and your social security number when you call. Tax return amendment Taxable part of annuity. Tax return amendment   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. Tax return amendment To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. Tax return amendment Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. Tax return amendment If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. Tax return amendment However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. Tax return amendment Annuity statement. Tax return amendment   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). Tax return amendment You will use this information to figure the tax-free recovery of your cost. Tax return amendment Annuity starting date. Tax return amendment   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. Tax return amendment If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. Tax return amendment Gross monthly rate. Tax return amendment   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. Tax return amendment Your cost. Tax return amendment   Your monthly annuity payment contains an amount on which you have previously paid income tax. Tax return amendment This amount represents part of your contributions to the retirement plan. Tax return amendment Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. Tax return amendment   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. Tax return amendment If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. Tax return amendment (See Lump-sum credit under Alternative Annuity Option, later. Tax return amendment )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. Tax return amendment You cannot claim an interest deduction for any interest payments. Tax return amendment You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. Tax return amendment Recovering your cost tax free. Tax return amendment   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. Tax return amendment If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. Tax return amendment If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). Tax return amendment If your annuity starting date is after November 18, 1996, you must use the Simplified Method. Tax return amendment   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). Tax return amendment The tax-free part is a fixed dollar amount. Tax return amendment It remains the same, even if your annuity is increased. Tax return amendment Generally, this rule applies as long as you receive your annuity. Tax return amendment However, see Exclusion limit , later. Tax return amendment Choosing a survivor annuity after retirement. Tax return amendment    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. Tax return amendment   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. Tax return amendment To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. Tax return amendment Figure the expected return as of the date the reduced annuity begins. Tax return amendment For details on the General Rule, see Publication 939. Tax return amendment Canceling a survivor annuity after retirement. Tax return amendment   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. Tax return amendment The increased annuity does not change the cost recovery you figured at the annuity starting date. Tax return amendment The tax-free part of each annuity payment remains the same. Tax return amendment    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Tax return amendment C. Tax return amendment calling area must call 202-606-0500). Tax return amendment Exclusion limit. Tax return amendment   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Tax return amendment Annuity starting date after 1986. Tax return amendment   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. Tax return amendment Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. Tax return amendment Example. Tax return amendment Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. Tax return amendment If your cost is $12,000, the exclusion ends after 10 years (120 months). Tax return amendment Thereafter, your entire annuity is generally fully taxable. Tax return amendment Annuity starting date before 1987. Tax return amendment   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. Tax return amendment If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. Tax return amendment The total exclusion may be more than your cost. Tax return amendment Deduction of unrecovered cost. Tax return amendment   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. Tax return amendment The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). Tax return amendment If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. Tax return amendment Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. Tax return amendment (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. Tax return amendment ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. Tax return amendment The Simplified Method does not apply if your annuity starting date is before July 2, 1986. Tax return amendment Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. Tax return amendment This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Tax return amendment If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. Tax return amendment Worksheet A. Tax return amendment   Use Worksheet A. Tax return amendment Simplified Method (near the end of this publication), to figure your taxable annuity. Tax return amendment Be sure to keep the completed worksheet. Tax return amendment It will help you figure your taxable amounts for later years. Tax return amendment Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. Tax return amendment However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. Tax return amendment Line 2. Tax return amendment   See Your cost , earlier, for an explanation of your cost in the plan. Tax return amendment If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. Tax return amendment Line 3. Tax return amendment   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. Tax return amendment If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. Tax return amendment If your annuity starting date is before 1998, use Table 1. Tax return amendment Line 6. Tax return amendment   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. Tax return amendment If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. Tax return amendment Example. Tax return amendment Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. Tax return amendment His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. Tax return amendment He must use the Simplified Method to figure the tax-free part of his annuity benefits. Tax return amendment Bill's monthly annuity benefit is $1,000. Tax return amendment He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. Tax return amendment At his annuity starting date, he was 65 and Kathy was 57. Tax return amendment Bill's completed Worksheet A is shown later. Tax return amendment To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). Tax return amendment Bill keeps a copy of the completed worksheet for his records. Tax return amendment It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. Tax return amendment Bill's tax-free monthly amount is $100. Tax return amendment (See line 4 of the worksheet. Tax return amendment ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. Tax return amendment If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. Tax return amendment If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. Tax return amendment General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. Tax return amendment If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. Tax return amendment If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. Tax return amendment Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. Tax return amendment Figuring this percentage is complex and requires the use of actuarial tables. Tax return amendment For these tables and other information about using the General Rule, see Publication 939. Tax return amendment Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. Tax return amendment Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. Tax return amendment After your cost was recovered, all payments became fully taxable. Tax return amendment You cannot use another rule to again exclude amounts from income. Tax return amendment The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. Tax return amendment Worksheet A. Tax return amendment Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. Tax return amendment 1. Tax return amendment Enter the total pension or annuity payments received this year. Tax return amendment Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Tax return amendment $ 8,000 2. Tax return amendment Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Tax return amendment See Your cost in Part II, Rules for Retirees, earlier 2. Tax return amendment 31,000 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Tax return amendment Otherwise, go to line 3. Tax return amendment   3. Tax return amendment Enter the appropriate number from Table 1 below. Tax return amendment But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Tax return amendment 3. Tax return amendment 310 4. Tax return amendment Divide line 2 by the number on line 3 4. Tax return amendment 100 5. Tax return amendment Multiply line 4 by the number of months for which this year's payments were made. Tax return amendment If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Tax return amendment Otherwise, go to line 6 5. Tax return amendment 800 6. Tax return amendment Enter any amounts previously recovered tax free in years after 1986. Tax return amendment This is the amount shown on line 10 of your worksheet for last year 6. Tax return amendment 0 7. Tax return amendment Subtract line 6 from line 2 7. Tax return amendment 31,000 8. Tax return amendment Enter the smaller of line 5 or line 7 8. Tax return amendment 800 9. Tax return amendment Taxable amount for year. Tax return amendment Subtract line 8 from line 1. Tax return amendment Enter the result, but not less than zero. Tax return amendment Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Tax return amendment If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Tax return amendment If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Tax return amendment If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Tax return amendment $7,200 10. Tax return amendment Was your annuity starting date before 1987?   Yes. Tax return amendment Do not complete the rest of this worksheet. Tax return amendment    No. Tax return amendment Add lines 6 and 8. Tax return amendment This is the amount you have recovered tax free through 2013. Tax return amendment You will need this number if you need to fill out this worksheet next year 10. Tax return amendment 800 11. Tax return amendment Balance of cost to be recovered. Tax return amendment Subtract line 10 from line 2. Tax return amendment If zero, you will not have to complete this worksheet next year. Tax return amendment The payments you receive next year will generally be fully taxable 11. Tax return amendment $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Tax return amendment Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. Tax return amendment If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. Tax return amendment You are eligible to make this choice if you meet all of the following requirements. Tax return amendment You are retiring, but not on disability. Tax return amendment You have a life-threatening illness or other critical medical condition. Tax return amendment You do not have a former spouse entitled to court ordered benefits based on your service. Tax return amendment If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. Tax return amendment Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. Tax return amendment The tax-free part represents part of your cost. Tax return amendment The taxable part represents part of the earnings on your annuity contract. Tax return amendment Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. Tax return amendment Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. Tax return amendment Your taxable amount may therefore be more than the lump-sum payment you receive. Tax return amendment You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. Tax return amendment If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Tax return amendment See Rollover Rules , later, for information on how to make a rollover. Tax return amendment OPM can make a direct rollover only up to the amount of the lump-sum payment. Tax return amendment Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. Tax return amendment The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Tax return amendment It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. Tax return amendment For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Tax return amendment Worksheet B. Tax return amendment   Use Worksheet B. Tax return amendment Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. Tax return amendment Be sure to keep the completed worksheet for your records. Tax return amendment   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. Tax return amendment Lump-sum credit. Tax return amendment   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). Tax return amendment However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. Tax return amendment Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. Tax return amendment Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. Tax return amendment You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. Tax return amendment Present value of your annuity contract. Tax return amendment   The present value of your annuity contract is figured using actuarial tables provided by the IRS. Tax return amendment If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. Tax return amendment Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. Tax return amendment , NW Washington, DC 20224-0002 Example. Tax return amendment David Brown retired from the federal government in 2013, one month after his 55th birthday. Tax return amendment He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. Tax return amendment The present value of his annuity contract was $155,000. Tax return amendment The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. Tax return amendment The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. Tax return amendment See Reduced Annuity , later. Tax return amendment Worksheet B. Tax return amendment Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . Tax return amendment  1. Tax return amendment Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. Tax return amendment $ 31,000 2. Tax return amendment Enter the present value of your annuity contract 2. Tax return amendment 155,000 3. Tax return amendment Divide line 1 by line 2 3. Tax return amendment . Tax return amendment 20 4. Tax return amendment Tax-free amount. Tax return amendment Multiply line 1 by line 3. Tax return amendment (Caution: Do not include this amount on line 6 of Worksheet A in this publication. Tax return amendment ) 4. Tax return amendment $6,200 5. Tax return amendment Taxable amount (net cost in the plan). Tax return amendment Subtract line 4 from line 1. Tax return amendment Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Tax return amendment Also, enter this amount on line 2 of Worksheet A in this publication. Tax return amendment 5. Tax return amendment $24,800   Lump-sum payment in installments. Tax return amendment   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. Tax return amendment You will receive the first installment after you make the choice upon retirement. Tax return amendment The second installment will be paid to you, with interest, in the next calendar year. Tax return amendment (Exceptions to the installment rule are provided for cases of critical medical need. Tax return amendment )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. Tax return amendment If the payment has a tax-free part, you must treat the taxable part as received first. Tax return amendment How to report. Tax return amendment   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Tax return amendment Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. Tax return amendment    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. Tax return amendment Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. Tax return amendment These annuity payments each will have a tax-free and a taxable part. Tax return amendment To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). Tax return amendment For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. Tax return amendment To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. Tax return amendment Enter as your net cost on line 2 the amount from Worksheet B, line 5. Tax return amendment Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Tax return amendment Example. Tax return amendment The facts are the same as in the example for David Brown in the preceding discussion. Tax return amendment In addition, David received 10 annuity payments in 2013 of $1,200 each. Tax return amendment Using Worksheet A, he figures the taxable part of his annuity payments. Tax return amendment He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. Tax return amendment His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). Tax return amendment He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. Tax return amendment David's filled-in Worksheet A is shown on the next page. Tax return amendment Worksheet A. Tax return amendment Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . Tax return amendment 1. Tax return amendment Enter the total pension or annuity payments received this year. Tax return amendment Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Tax return amendment $ 12,000 2. Tax return amendment Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Tax return amendment See Your cost in Part II, Rules for Retirees, earlier 2. Tax return amendment 24,800 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Tax return amendment Otherwise, go to line 3. Tax return amendment   3. Tax return amendment Enter the appropriate number from Table 1 below. Tax return amendment But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Tax return amendment 3. Tax return amendment 360 4. Tax return amendment Divide line 2 by the number on line 3 4. Tax return amendment 68. Tax return amendment 89 5. Tax return amendment Multiply line 4 by the number of months for which this year's payments were made. Tax return amendment If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Tax return amendment Otherwise, go to line 6 5. Tax return amendment 688. Tax return amendment 90 6. Tax return amendment Enter any amounts previously recovered tax free in years after 1986. Tax return amendment This is the amount shown on line 10 of your worksheet for last year 6. Tax return amendment 0 7. Tax return amendment Subtract line 6 from line 2 7. Tax return amendment 24,800 8. Tax return amendment Enter the smaller of line 5 or line 7 8. Tax return amendment 688. Tax return amendment 90 9. Tax return amendment Taxable amount for year. Tax return amendment Subtract line 8 from line 1. Tax return amendment Enter the result, but not less than zero. Tax return amendment Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Tax return amendment If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Tax return amendment If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Tax return amendment If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Tax return amendment $11,311. Tax return amendment 10 10. Tax return amendment Was your annuity starting date before 1987?   Yes. Tax return amendment Do not complete the rest of this worksheet. Tax return amendment    No. Tax return amendment Add lines 6 and 8. Tax return amendment This is the amount you have recovered tax free through 2013. Tax return amendment You will need this number if you need to fill out this worksheet next year 10. Tax return amendment 688. Tax return amendment 90 11. Tax return amendment Balance of cost to be recovered. Tax return amendment Subtract line 10 from line 2. Tax return amendment If zero, you will not have to complete this worksheet next year. Tax return amendment The payments you receive next year will generally be fully taxable 11. Tax return amendment $24,111. Tax return amendment 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Tax return amendment Reemployment after choosing the alternative annuity option. Tax return amendment If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. Tax return amendment If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. Tax return amendment Annuity starting date before November 19, 1996. Tax return amendment   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. Tax return amendment Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. Tax return amendment However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Tax return amendment Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. Tax return amendment The gift may be taxable for gift tax purposes. Tax return amendment The value of the gift is equal to the value of the annuity. Tax return amendment Joint and survivor annuity. Tax return amendment   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. Tax return amendment This will eliminate any gift tax liability with regard to that gift. Tax return amendment   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. Tax return amendment This may result in a taxable gift. Tax return amendment More information. Tax return amendment   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. Tax return amendment Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. Tax return amendment Annual leave. Tax return amendment   A payment for accrued annual leave received on retirement is a salary payment. Tax return amendment It is taxable as wages in the tax year you receive it. Tax return amendment Voluntary contributions. Tax return amendment   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. Tax return amendment They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. Tax return amendment Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. Tax return amendment See Thrift Savings Plan , later. Tax return amendment Additional annuity benefit. Tax return amendment   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. Tax return amendment This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. Tax return amendment It does not matter that you receive only one monthly check covering both benefits. Tax return amendment Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. Tax return amendment   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. Tax return amendment Refund of voluntary contributions. Tax return amendment   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. Tax return amendment If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. Tax return amendment See Rollover Rules , later. Tax return amendment The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Tax return amendment It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. Tax return amendment For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Tax return amendment Community property laws. Tax return amendment   State community property laws apply to your annuity. Tax return amendment These laws will affect your income tax only if you file a return separately from your spouse. Tax return amendment   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. Tax return amendment Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. Tax return amendment   At any time, you have only one domicile even though you may have more than one home. Tax return amendment Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Tax return amendment The question of your domicile is mainly a matter of your intentions as indicated by your actions. Tax return amendment   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. Tax return amendment The division is based on your periods of service and domicile in community and noncommunity property states while you were married. Tax return amendment   For more information, see Publication 555, Community Property. Tax return amendment Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. Tax return amendment The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. Tax return amendment This amount is taxable as wages. Tax return amendment Your annuity will continue to be taxed just as it was before. Tax return amendment If you are still recovering your cost, you continue to do so. Tax return amendment If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. Tax return amendment Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. Tax return amendment A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Tax return amendment Special rule for figuring your total contributions. Tax return amendment   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. Tax return amendment You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. Tax return amendment For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. Tax return amendment Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. Tax return amendment   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. Tax return amendment Limit on taxable amount. Tax return amendment   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. Tax return amendment Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. Tax return amendment The numerator of the fraction is the retiree's total U. Tax return amendment S. Tax return amendment Government basic pay, other than tax-exempt pay for services performed outside the United States. Tax return amendment The denominator is the retiree's total U. Tax return amendment S. Tax return amendment Government basic pay for all services. Tax return amendment    Basic pay includes regular pay plus any standby differential. Tax return amendment It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. Tax return amendment   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. Tax return amendment (For an annuity, first complete Worksheet A in this publication. Tax return amendment ) Worksheet C. Tax return amendment Limited Taxable Amount for Nonresident Alien 1. Tax return amendment Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Tax return amendment   2. Tax return amendment Enter the total U. Tax return amendment S. Tax return amendment Government basic pay other than tax-exempt pay for services performed outside the United States 2. Tax return amendment   3. Tax return amendment Enter the total U. Tax return amendment S. Tax return amendment Government basic pay for all services 3. Tax return amendment   4. Tax return amendment Divide line 2 by line 3 4. Tax return amendment   5. Tax return amendment Limited taxable amount. Tax return amendment Multiply line 1 by line 4. Tax return amendment Enter this amount on Form 1040NR, line 17b 5. Tax return amendment   Example 1. Tax return amendment You are a nonresident alien who performed all services for the U. Tax return amendment S. Tax return amendment Government abroad as a nonresident alien. Tax return amendment You retired and began to receive a monthly annuity of $200. Tax return amendment Your total basic pay for all services for the U. Tax return amendment S. Tax return amendment Government was $100,000. Tax return amendment All of your basic pay was tax exempt because it was not U. Tax return amendment S. Tax return amendment source income. Tax return amendment The taxable amount of your annuity using Worksheet A in this publication is $720. Tax return amendment You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Tax return amendment Worksheet C. Tax return amendment Limited Taxable Amount for Nonresident Alien — Example 1 1. Tax return amendment Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Tax return amendment $ 720 2. Tax return amendment Enter the total U. Tax return amendment S. Tax return amendment Government basic pay other than tax-exempt pay for services performed outside the United States 2. Tax return amendment 0 3. Tax return amendment Enter the total U. Tax return amendment S. Tax return amendment Government basic pay for all services 3. Tax return amendment 100,000 4. Tax return amendment Divide line 2 by line 3 4. Tax return amendment 0 5. Tax return amendment Limited taxable amount. Tax return amendment Multiply line 1 by line 4. Tax return amendment Enter this amount on Form 1040NR, line 17b 5. Tax return amendment 0 Example 2. Tax return amendment You are a nonresident alien who performed services for the U. Tax return amendment S. Tax return amendment Government as a nonresident alien both within the United States and abroad. Tax return amendment You retired and began to receive a monthly annuity of $240. Tax return amendment Your total basic pay for your services for the U. Tax return amendment S. Tax return amendment Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. Tax return amendment The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. Tax return amendment S. Tax return amendment source income. Tax return amendment The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. Tax return amendment You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Tax return amendment Worksheet C. Tax return amendment Limited Taxable Amount for Nonresident Alien — Example 2 1. Tax return amendment Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Tax return amendment $ 1,980 2. Tax return amendment Enter the total U. Tax return amendment S. Tax return amendment Government basic pay other than tax-exempt pay for services performed outside the United States 2. Tax return amendment 40,000 3. Tax return amendment Enter the total U. Tax return amendment S. Tax return amendment Government basic pay for all services 3. Tax return amendment 120,000 4. Tax return amendment Divide line 2 by line 3 4. Tax return amendment . Tax return amendment 333 5. Tax return amendment Limited taxable amount. Tax return amendment Multiply line 1 by line 4. Tax return amendment Enter this amount on Form 1040NR, line 17b 5. Tax return amendment 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. Tax return amendment (However, see Roth TSP balance and Uniformed services TSP accounts, next. Tax return amendment ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. Tax return amendment The way that you withdraw your account balance determines when you must pay the tax. Tax return amendment Roth TSP balance. Tax return amendment   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. Tax return amendment This means Roth TSP contributions are included in your income. Tax return amendment The contribution limits are the same as the traditional TSP. Tax return amendment You can elect to have part or all of your TSP contributions designated as a Roth TSP. Tax return amendment Agency contributions will be part of your traditional TSP balance. Tax return amendment Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. Tax return amendment   Qualified distributions from your Roth TSP are not included in income. Tax return amendment This applies to both your cost in the account and income earned on that account. Tax return amendment A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. Tax return amendment   For more information, go to the TSP website, www. Tax return amendment tsp. Tax return amendment gov, or the TSP Service Office. Tax return amendment See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. Tax return amendment Uniformed services TSP accounts. Tax return amendment   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. Tax return amendment However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. Tax return amendment See Roth TSP balance discussed previously to get more information about Roth contributions. Tax return amendment The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. Tax return amendment You can get more information from the TSP website, www. Tax return amendment tsp. Tax return amendment gov, or the TSP Service Office. Tax return amendment Direct rollover by the TSP. Tax return amendment   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. Tax return amendment However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Tax return amendment Also, see Rollover Rules , later. Tax return amendment Direct rollover by the TSP to a Roth IRA. Tax return amendment   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. Tax return amendment However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Tax return amendment Also, see Rollovers to Roth IRAs for more information, later. Tax return amendment Note. Tax return amendment A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. Tax return amendment This is because you already paid tax on those contributions. Tax return amendment You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. Tax return amendment TSP annuity. Tax return amendment   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. Tax return amendment The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. Tax return amendment However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. Tax return amendment See Roth TSP balance , earlier. Tax return amendment This is because you already paid tax on those contributions. Tax return amendment Cash withdrawals. Tax return amendment   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. Tax return amendment (See Rollover Rules , later. Tax return amendment ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. Tax return amendment See Lump-Sum Distributions in Publication 575 for details. Tax return amendment However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. Tax return amendment See Roth TSP balance , earlier. Tax return amendment    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. Tax return amendment   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. Tax return amendment If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. Tax return amendment See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. Tax return amendment However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. Tax return amendment See Roth TSP balance , earlier, for a discussion of those conditions. Tax return amendment Tax on early distributions. Tax return amendment   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. Tax return amendment However, this additional tax does not apply in certain situations, including any of the following. Tax return amendment You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. Tax return amendment You choose to receive your account balance in monthly payments based on your life expectancy. Tax return amendment You are totally and permanently disabled. Tax return amendment You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). Tax return amendment The earnings may be subject to the 10% tax depending on whether you met certain conditions. Tax return amendment See Roth TSP balance , earlier. Tax return amendment   For more information, see Tax on Early Distributions in Publication 575. Tax return amendment Outstanding loan. Tax return amendment   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. Tax return amendment The distribution also may be subject to the additional 10% tax on early distributions. Tax return amendment However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. Tax return amendment See Rollover Rules , later. Tax return amendment   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. Tax return amendment However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. Tax return amendment See Roth TSP balance , earlier. Tax return amendment More information. Tax return amendment   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. Tax return amendment Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). Tax return amendment    The above documents are also available on the TSP website at www. Tax return amendment tsp. Tax return amendment gov. Tax return amendment Select “Forms & Publications. Tax return amendment ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. Tax return amendment You do not include the amount rolled over in your income, and you cannot take a deduction for it. Tax return amendment The amount rolled over is taxed later as the new program pays that amount to you. Tax return amendment If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. Tax return amendment However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. Tax return amendment To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. Tax return amendment You can also roll over a distribution from a qualified retirement plan into a Roth IRA. Tax return amendment Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. Tax return amendment See Rollovers to Roth IRAs , later, for more information. Tax return amendment Qualified retirement plan. Tax return amendment   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. Tax return amendment The CSRS, FERS, and TSP are considered qualified retirement plans. Tax return amendment Distributions eligible for rollover treatment. Tax return amendment   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. Tax return amendment You cannot roll over any part of your CSRS or FERS annuity payments. Tax return amendment   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. Tax return amendment   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. Tax return amendment However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. Tax return amendment Direct rollover option. Tax return amendment   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. Tax return amendment   There is an automatic rollover requirement for mandatory distributions. Tax return amendment A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. Tax return amendment The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. Tax return amendment You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. Tax return amendment If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. Tax return amendment No tax withheld. Tax return amendment   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. Tax return amendment However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. Tax return amendment Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. Tax return amendment Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. Tax return amendment Payment to you option. Tax return amendment   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. Tax return amendment However, the full amount is treated as distributed to you even though you actually receive only 80%. Tax return amendment You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. Tax return amendment Rollovers to Roth IRAs are generally included in income. Tax return amendment Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. Tax return amendment If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. Tax return amendment However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). Tax return amendment Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. Tax return amendment See Roth TSP balance , earlier. Tax return amendment Also, see Tax on Early Distributions in Publication 575. Tax return amendment Exception to withholding. Tax return amendment   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. Tax return amendment Partial rollovers. Tax return amendment   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. Tax return amendment See Lump-Sum Distributions in Publication 575. Tax return amendment However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. Tax return amendment Rolling over more than amount received. Tax return amendment   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). Tax return amendment Example. Tax return amendment You left government service at age 53. Tax return amendment On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
Print - Click this link to Print this page

Customer Satisfaction Surveys

This page provides a listing of current and recent IRS sponsored customer satisfaction surveys.

The IRS, as for all federal executive departments and agencies and their public websites, must comply with the Paperwork Reduction Act (44 U.S.C. Chapter 35) to ensure that information collected from the public, minimizes burden and maximizes public utility.

One of the principal requirements of the PRA is that organizations must have Office of Management and Budget approval before collecting information from the public (such as forms, general questionnaires, surveys, instructions and other types of information collections), and they must display the current OMB control number on the collection format.

IRS surveys conducted by mail, telephone and online provide the name of an IRS contact person and/or a helpline contact phone number. If you question the authenticity of the survey in any collection format, please review this page.

Summary information

IRS office

Activity surveyed

Expiration date

Delivery method

Area
surveyed

Frequency

Administered by
Appeals Appeals contacts, cases closed during fiscal year survey period 9/30/2013 Web: Those not responding are contacted via telephone (Call-out) National, area Quarterly ICF Macro, Inc.
Communication and Liaison Nationwide Tax Forums 11/30/2014 Web and in person paper surveys National Annual PCG Enterprises, Inc.
Large Business and International Industry and Coordinated Industry Examinations 3/31/2014 Phone
(Call-out)
National and five industries Annually PCG Enterprises, Inc.
LB&I Compliance Assurance Process 3/31/2014 Web National Annually PCG Enterprises, Inc.
LB&I Foreign Resident Compliance Examinations 3/31/2014 Mailed - paper survey National Semi-annually PCG Enterprises, Inc.
Small Business/Self-Employed Automated Collection System 9/30/2014 Phone (Call-in) National - Campus Annual PCG Enterprises, Inc.
SB/SE Automated Under Reporter 9/30/2014 Mailed - paper survey National - Campus Annual ICF Macro, Inc.
SB/SE Automated Under Reporter Toll-free 9/30/2014

Interactive Voice Response:

Phone
National - Campus Annual ICF Macro, Inc.
SB/SE Compliance Center Exam 9/30/2014 Mailed - paper survey National - Campus Annual ICF Macro, Inc.
SB/SE Compliance Center Exam Toll-free 9/30/2014 IVR Phone National - Campus Annual ICF Macro, Inc.
SB/SE Compliance Services Collection Operation 9/30/2014 Mailed - paper survey National - Campus Annual PCG Enterprises, Inc
SB/SE Collection 9/30/2014 Mailed - paper survey National, area Annual Fors Marsh Group
SB/SE Field Examination 9/30/2014 Mailed - paper survey National, area Annual Fors Marsh Group
SB/SE Employment Tax Examination 9/30/2014 Mailed - paper survey National territories Annual Fors Marsh Group
SB/SE Excise Tax Examination 9/30/2014 Mailed - paper survey National territories Annual Fors Marsh Group
SB/SE Estate and Gift Tax Examination 9/30/2014 Mailed - paper survey National territories Annual Fors Marsh Group
SB/SE American Customer Satisfaction Index 10/31/2013 Phone
(Call-out)
National Annual CFI Group
Tax Exempt/Government Entities Exempt Organizations Determinations 3/31/2014 Mailed paper survey National Semi-annually ICF Macro, Inc.
TE/GE Exempt Organizations Examinations 3/31/2014 Mailed paper survey National, area Semi-annually ICF Macro, Inc.
TE/GE Employee Plans Determinations 3/31/2014 Mailed paper survey National Semi-annually ICF Macro, Inc.
TE/GE Employee Plans Examinations 3/31/2014 Mailed paper survey National, area Semi-annually ICF Macro, Inc.
TE/GE Federal, State & Local Governments Examination 3/31/2014 Mailed paper survey National Annually ICF Macro, Inc.
TE/GE Toll-free 3/31/2014 Phone (Call-in) National Annually ICF Macro, Inc.
Taxpayer Advocate
Service
TAS closed cases 6/30/2014 Web: Those not responding are contacted via telephone (Call-out) National, area and office Quarterly PCG Enterprises, Inc.
Wage and Investment, Customer Assistance, Relationships and Education: Field Assistance Field Assistance 3/31/2014 Comment card - Paper National, areas Quarterly, annually PCG Enterprises, Inc.
W&I:CARE: Media & Publications Individual taxpayer 9/30/2013 Mail / Online National Annually Fors Marsh Group
W&I:CARE:M&P Business Taxpayers 9/30/2013 Mail / Online National Annually Fors Marsh Group
W&I:CARE:M&P Tax preparers 9/30/2013 Mail / Online National Annually Fors Marsh Group
W&I:CARE:M&P Forms & Publications 9/30/2013 Online National Annually Fors Marsh Group
W&I:CARE:Stakeholder Partnerships, Education and Communication SPEC Partner 9/30/2013 Online National Annually Fors Marsh Group, LLC
W&I:Customer Account Services Adjustments 3/31/2014 Mailed - paper survey National Quarterly, annually Fors Marsh Group, LLC
W&I:CAS E-Help 6/8/2013 IVR Phone National Quarterly, annually PCG Enterprises, Inc.
W&I:CAS Injured Spouse 3/31/2013 Mailed - paper survey National Quarterly, Semi-annual Fors Marsh Group, LLC
W&I:CAS Practitioner Priority Service 3/31/2014 IVR Phone National Quarterly, annually ICF Macro, Inc.
W&I:CAS Toll-Free 3/31/2014 IVR Phone National Quarterly, annually ICF Macro, Inc.
W&I:CAS TE/GE Toll-Free 3/31/2014 IVR Phone National Quarterly, annually ICF Macro, Inc.
W&I:Compliance Automated Collection System 9/30/2013 IVR Phone National Quarterly, annually PCG Enterprises,
Inc.
W&I:Compliance ACS Support 9/30/2013 Live phone National Quarterly, annually PCG Enterprises,
Inc.
W&I:Compliance American Customer Satisfaction Index 3/31/2013 Mailed - paper survey National One-time National Business Center, Inc., FCG, and CFI Group
W&I:Compliance Automated Under Reporter 9/30/2013 Mailed - paper survey National Quarterly, annually ICF Macro, Inc.
W&I:Compliance Compliance Center Examination 9/30/2013 Mailed - paper survey National Quarterly, annually ICF Macro, Inc.
W&I:Compliance Compliance Center Examination Toll-Free 9/30/2013 IVR Phone National Quarterly ICF Macro, Inc.
W&I:Compliance Compliance Services Collection Operation 9/30/2013 Live phone (Call-in) National Quarterly, annually PCG Enterprises, Inc.
W&I:Compliance Innocent Spouse 9/15/2013 Mailed - paper survey National Quarterly, annually ICF Macro, Inc.
W&I:Compliance Innocent Spouse 9/15/2013 IVR Phone National Quarterly, annually ICF Macro, Inc.
W&I:R&A Taxpayer experience survey (formerly market segment survey) 10/31/2013 Mailed Survey
Customer Relations Survey
National One-time Fors Marsh Group, LLC
W&I:R&A Identity Protection Personal Identification Number 10/31/2013 Mail Survey
Customer Relations Survey
National One-time Fors Marsh Group, LLC
W&I:R&A Taxpayer experience survey (formerly market segment survey) 5/31/2014 Web National/Spanish Annual PCG Enterprises, Inc.

 

Page Last Reviewed or Updated: 13-Mar-2014

The Tax Return Amendment

Tax return amendment 6. Tax return amendment   How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Tax return amendment Prev  Up  Next   Home   More Online Publications