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1040 ez online 31. 1040 ez online   Impuesto sobre Ingresos No Derivados del Trabajo de Determinados Hijos Table of Contents ¿Que Hay de Nuevo? Introduction Useful Items - You may want to see: Cómo Saber si se Tiene que Utilizar la Declaración del Padre o de la MadrePadres que no Presentan la Declaración Conjunta Elección de los Padres de Declarar los Intereses y Dividendos del HijoConsecuencias de Incluir los Ingresos del Hijo Cómo Calcular los Ingresos del Hijo Cómo Calcular el Impuesto Adicional Impuesto para Determinados Hijos con Ingresos No Derivados del TrabajoCómo Facilitar Información sobre los Padres (líneas A-C del Formulario 8615) Paso 1. 1040 ez online Cómo Calcular los Ingresos Netos No Derivados del Trabajo del Hijo (Parte I del Formulario 8615) Paso 2. 1040 ez online Cómo Calcular el Impuesto Provisional a la Tasa Impositiva de los Padres (Parte II del Formulario 8615) Paso 3. 1040 ez online Cómo Calcular el Impuesto del Hijo (Parte III del Formulario 8615) ¿Que Hay de Nuevo? Impuesto sobre el ingreso neto de inversiones. 1040 ez online  Para años empezando después del 31 de diciembre de 2012, el impuesto de un hijo, el cual se calcula en el Formulario 8615, puede estar sujeto al impuesto sobre el ingreso neto de inversiones (NIIT, por sus siglas en inglés). 1040 ez online El NIIT es un impuesto de 3. 1040 ez online 8% sobre la cantidad menor entre el ingreso neto de inversión o el exceso del ingreso bruto ajustado modificado (MAGI) del hijo que exceda del límite superior específico. 1040 ez online Utilice el Formulario 8960, Net Investment Income Tax (Impuesto sobre ingreso neto de inversiones), en inglés, para calcular este impuesto. 1040 ez online Para más información sobre el NIIT, visite www. 1040 ez online irs. 1040 ez online gov e ingrese “Net Investment Income Tax” en la casilla de búsqueda “Search” (Buscar), en inglés. 1040 ez online Introduction Este capítulo explica los dos requisitos siguientes, los cuales podrían afectar el impuesto sobre ingresos no derivados del trabajo de determinados hijos: Si los ingresos procedentes de intereses y dividendos del hijo (incluidas las distribuciones de ganancias de capital) totalizan menos de $10,000, el padre o la madre tal vez pueda optar por incluir dichos ingresos en la declaración de uno de los padres en vez de presentar una declaración a nombre del hijo. 1040 ez online Vea Elección de los Padres de Declarar Intereses y Dividendos del Hijo , más adelante. 1040 ez online Si el total de intereses, dividendos y otros ingresos no derivados del trabajo del hijo sobrepasa $2,000, una parte de dichos ingresos podría estar sujeta a la misma tasa de impuesto que la de sus padres en lugar de estar sujeta a la tasa del hijo. 1040 ez online (Vea Impuesto para Determinados Hijos con Ingresos No Derivados del Trabajo , más adelante). 1040 ez online En lo que concierne a estos requisitos, el término “hijo” abarca a hijos legalmente adoptados e hijastros. 1040 ez online Estos requisitos corresponden tanto si el hijo es dependiente como si no lo es. 1040 ez online Useful Items - You may want to see: Publicación 929 Tax Rules for Children and Dependents (Requisitos tributarios para hijos y dependientes), en inglés Formulario (e Instrucciones) 8615 Tax for Certain Children Who Have Unearned Income (Impuesto para determinados hijos con ingresos no derivados del trabajo), en inglés 8814 Parents' Election To Report Child's Interest and Dividends (Elección de los padres de declarar los intereses y dividendos del hijo), en inglés Cómo Saber si se Tiene que Utilizar la Declaración del Padre o de la Madre Si los padres del hijo están casados el uno con el otro y presentan una declaración conjunta, básese en la declaración conjunta para calcular el impuesto sobre los ingresos no derivados del trabajo de dicho hijo. 1040 ez online La tasa impositiva y otra información de dicha declaración se utiliza para calcular el impuesto del hijo según se explica más adelante bajo Impuesto para Determinados Hijos con Ingresos No Derivados del Trabajo . 1040 ez online Padres que no Presentan la Declaración Conjunta Para los padres que no presenten la declaración conjunta, los siguientes temas aclaran, cuál declaración de impuestos de los padres tiene que utilizar para calcular el impuesto. 1040 ez online Sólo el padre o la madre cuya declaración se utilice puede elegir la opción descrita bajo Elección de los Padres de Declarar Intereses y Dividendos del Hijo . 1040 ez online Padres casados. 1040 ez online   Si los padres del hijo presentan declaraciones por separado, utilice la declaración de quien tenga el mayor ingreso tributable. 1040 ez online Padres que no viven juntos. 1040 ez online   Si los padres del hijo están casados el uno con el otro pero no viven juntos, y el padre o la madre con quien vive el hijo (el padre o la madre con custodia) se considera no casado, utilice la declaración del padre o de la madre con custodia. 1040 ez online Si el padre o la madre con custodia no es considerado no casado, utilice la declaración de quien tenga el mayor ingreso tributable. 1040 ez online   Para una explicación sobre cuándo una persona casada que vive aparte de su cónyuge es considerada no casada, vea Cabeza de Familia en el capítulo 2. 1040 ez online Padres divorciados. 1040 ez online   Si los padres del hijo están divorciados o legalmente separados y el padre o la madre que tuvo la custodia del hijo durante la mayor parte del año (el padre o la madre con custodia) no se ha vuelto a casar, utilice la declaración del padre o de la madre con custodia. 1040 ez online Padre o madre con custodia que se ha vuelto a casar. 1040 ez online   Si el padre o la madre con custodia ha vuelto a casarse, el padrastro o la madrastra (en vez del padre o la madre sin custodia) se considera el otro padre o la otra madre del hijo. 1040 ez online Por lo tanto, si el padre o la madre con custodia y el padrastro o la madrastra presentan una declaración conjunta, utilice dicha declaración conjunta. 1040 ez online No utilice la declaración del padre o de la madre sin custodia. 1040 ez online   Si el padre o la madre con custodia está casado con el padrastro o la madrastra pero presentan declaraciones por separado, utilice la declaración de quien tenga el mayor ingreso tributable. 1040 ez online Si el padre o la madre con custodia está casado con el padrastro o la madrastra pero no viven juntos, corresponde el tema anterior Padres que no viven juntos . 1040 ez online Padres que nunca se han casado. 1040 ez online   Si los padres del hijo nunca han estado casados el uno con el otro pero vivieron juntos durante todo el año, utilice la declaración de quien tenga el mayor ingreso tributable. 1040 ez online Si los padres no vivieron juntos durante todo el año, corresponden los requisitos explicados anteriormente bajo Padres divorciados . 1040 ez online Padre viudo o madre viuda que se vuelve a casar. 1040 ez online   Si un viudo o una viuda vuelve a casarse, el nuevo cónyuge se considera el otro padre o la otra madre del hijo. 1040 ez online En este caso, corresponden los requisitos explicados anteriormente bajo Padre o madre con custodia que se ha vuelto a casar . 1040 ez online Elección de los Padres de Declarar los Intereses y Dividendos del Hijo Tal vez pueda optar por incluir los ingresos de su hijo procedentes de intereses y dividendos (incluidas las distribuciones de ganancias de capital) en la declaración de impuestos. 1040 ez online En tal caso, su hijo no estará obligado a presentar una declaración. 1040 ez online Puede elegir esta opción sólo si se cumplen todas las condiciones siguientes: Su hijo tenía menos de 19 años de edad (o tenía menos de 24 años si era estudiante a tiempo completo) al finalizar el año. 1040 ez online Su hijo recibió ingresos sólo de intereses y dividendos (incluidas las distribuciones de ganancias de capital y dividendos del Alaska Permanent Fund (Fondo Permanente de Alaska)). 1040 ez online Los ingresos brutos del hijo eran menos de $10,000. 1040 ez online El hijo está obligado a presentar la declaración a no ser que usted elija incluir estos ingresos. 1040 ez online El hijo no presenta una declaración conjunta correspondiente al año actual. 1040 ez online No se efectuó ningún pago de impuestos estimados para el año ni se aplicó a este año ningún pago del año anterior (ni de una declaración enmendada) en exceso bajo el nombre y número de Seguro Social de su hijo. 1040 ez online No se retuvo de los ingresos de su hijo ningún impuesto federal sobre los ingresos conforme a las reglas de la retención adicional. 1040 ez online Usted es el padre o la madre cuya declaración se tiene que utilizar al aplicar los requisitos tributarios especiales para hijos. 1040 ez online (Vea Cómo Saber si se Tiene que Utilizar la Declaración del Padre o de la Madre , anteriormente). 1040 ez online Estas condiciones se hallan también en la Figura 31-A. 1040 ez online Determinados cumpleaños el 1 de enero. 1040 ez online   Un hijo que haya nacido el 1 de enero de 1995 se considerará de 19 años de edad al final del año 2013. 1040 ez online Usted no puede optar por declarar los intereses y dividendos de tal hijo a menos que éste fuera estudiante a tiempo completo. 1040 ez online   Aquel hijo que haya nacido el 1 de enero de 1990 se considerará de 24 años de edad al final del año 2013. 1040 ez online Usted no puede optar por declarar los intereses y dividendos de tal hijo. 1040 ez online Estudiante a tiempo completo. 1040 ez online   Un estudiante a tiempo completo es un hijo matriculado como tal durante alguna parte de cada uno de 5 meses del año calendario en una escuela o que asistió a tiempo completo a un curso de capacitación agrícola ofrecido sobre el terreno por una escuela, agencia del estado, condado o gobierno local. 1040 ez online El término “escuela” abarca escuelas politécnicas, profesionales e industriales. 1040 ez online Una escuela no incluye un curso de capacitación en el trabajo, escuela por correspondencia, ni escuelas que ofrecen cursos sólo por Internet. 1040 ez online Cómo optar por incluir los ingresos de su hijo. 1040 ez online   Elija incluir los ingresos de su hijo adjuntando el Formulario 8814 al Formulario 1040. 1040 ez online (Si opta por hacer esto, no puede presentar el Formulario 1040A ni el Formulario 1040EZ). 1040 ez online Adjunte un Formulario 8814 distinto correspondiente a cada hijo cuyos ingresos desee incluir. 1040 ez online Puede incluir los ingresos de uno o más hijos y no incluir los ingresos de otros. 1040 ez online Consecuencias de Incluir los Ingresos del Hijo El impuesto federal sobre los ingresos de su hijo podría ser mayor si opta por usar el Formulario 8814. 1040 ez online La tasa impositiva podría ser más alta. 1040 ez online   Si su hijo recibió dividendos calificados o distribuciones de ganancias de capital, usted podría pagar hasta $100 adicionales de impuestos si incluye los ingresos de su hijo en vez de presentar una declaración de impuestos por separado a nombre del hijo. 1040 ez online Esto se debe a que la tasa impositiva que corresponde a los ingresos de su hijo entre $1,000 y $2,000 es de 10% si usted opta por incluirlos. 1040 ez online No obstante, si presenta una declaración por separado en nombre del hijo, la tasa impositiva podría bajar hasta 0% (porcentaje de cero) debido a las tasas impositivas preferentes para dividendos calificados y distribuciones de ganancias de capital. 1040 ez online Deducciones que no puede tomar. 1040 ez online   Al hacer la elección de incluir estos ingresos en el Formulario 8814, no puede tomar ninguna de las deducciones siguientes a la que el hijo tendría derecho en su propia declaración. 1040 ez online La deducción estándar adicional si el hijo es ciego. 1040 ez online La deducción por una multa por el retiro prematuro de los ahorros de su hijo. 1040 ez online Deducciones detalladas (como gastos de inversiones de su hijo o donaciones caritativas). 1040 ez online Deducciones o créditos reducidos. 1040 ez online   Si utiliza el Formulario 8814, su ingreso bruto ajustado aumentado podría reducir determinados créditos o deducciones en la declaración, incluyendo lo siguiente: Deducciones por aportaciones a una cuenta de ahorros tradicional para la jubilación (IRA, por sus siglas en inglés). 1040 ez online Deducciones por intereses sobre un préstamo de estudios. 1040 ez online Deducciones detalladas por gastos médicos, pérdidas por hecho fortuito y robo y ciertos gastos misceláneos. 1040 ez online Crédito por gastos del cuidado de hijos y dependientes. 1040 ez online Crédito tributario por hijos. 1040 ez online Créditos tributarios por estudios. 1040 ez online Crédito por ingreso del trabajo. 1040 ez online Figura 31-A. 1040 ez online ¿Puede Incluir Usted en su Declaración de Impuestos los Ingresos de su Hijo? Please click here for the text description of the image. 1040 ez online Figura 31–A. 1040 ez online ¿Puede Incluir Usted en su Declaración de Impuestos los Ingresos de su Hijo? Multa por pago insuficiente del impuesto estimado. 1040 ez online   Si elige incluir estos ingresos para 2013 y no se le retuvo impuesto suficiente o no pagó suficiente impuesto estimado para saldar los impuestos adeudados, podría estar sujeto a una multa. 1040 ez online Si piensa elegir lo mismo para 2014, es posible que necesite aumentar la retención de impuestos federales sobre el ingreso o los pagos de impuesto estimado para evitar la multa. 1040 ez online Vea el capítulo 4 para más información. 1040 ez online Cómo Calcular los Ingresos del Hijo Utilice la Parte I del Formulario 8814 para calcular los ingresos de su hijo procedentes de intereses y dividendos declarados por usted. 1040 ez online A sus ingresos sólo se le añade la cantidad que sea superior a $2,000. 1040 ez online La cantidad superior a $2,000 se indica en la línea 6 del Formulario 8814. 1040 ez online A menos que los ingresos del hijo abarquen dividendos calificados o distribuciones de ganancias de capital (explicadas a continuación), la misma cantidad se indica en la línea 12 del Formulario 8814. 1040 ez online Incluya la cantidad de la línea 12 del Formulario 8814 en la línea 21 del Formulario 1040. 1040 ez online Anote en inglés “Form 8814” en la línea de puntos al lado de la línea 21. 1040 ez online Si presenta más de un Formulario 8814, incluya el total de los montos de la línea 12 de todos los Formularios 8814 en la línea 21 del Formulario 1040. 1040 ez online Distribuciones de ganancias de capital y dividendos calificados. 1040 ez online   Si se incluye alguna distribución de ganancias de capital en los ingresos de dividendos de su hijo, vea Capital gain distributions (Distribuciones de ganancias de capital) bajo Figuring Child's Income (Cómo calcular los ingresos del hijo) en la Parte 2 de la Publicación 929, en inglés. 1040 ez online Si se incluye algún dividendo calificado en los ingresos de dividendos de su hijo, vea Qualified dividends (Dividendos calificados) bajo Figuring Child's Income (Cómo calcular los ingresos del hijo) en la Parte 2 de la Publicación 929, en inglés. 1040 ez online Cómo Calcular el Impuesto Adicional Utilice la Parte II del Formulario 8814 para calcular el impuesto sobre los $2,000 de los intereses y dividendos de su hijo que no incluya usted en sus ingresos. 1040 ez online Este impuesto se suma al impuesto calculado sobre los ingresos suyos. 1040 ez online Dicho impuesto adicional es la cantidad que sea menor entre: El 10% (multiplicado por la cantidad de los ingresos brutos de su hijo menos $1,000) o $100. 1040 ez online Incluya el monto de la línea 15 de todos los Formularios 8814 en el total de la línea 44 del Formulario 1040. 1040 ez online Marque el recuadro a de la línea 44 del Formulario 1040. 1040 ez online Figura 31-B. 1040 ez online ¿Tiene que Utilizar el Formulario 8615 para Calcular los Impuestos de su Hijo? Please click here for the text description of the image. 1040 ez online Figura 31-B. 1040 ez online ¿Tiene que Utilizar el Formulario 8615 para Calcular los Impuestos de su Hijo? Impuesto para Determinados Hijos con Ingresos No Derivados del Trabajo Si el total de intereses, dividendos y otros ingresos no derivados del trabajo de un hijo sobrepasa $2,000, una parte de dichos ingresos podría estar sujeta a la misma tasa impositiva que la de sus padres en lugar de estar sujeta a la tasa del hijo. 1040 ez online Si el padre o la madre no elige, o no puede elegir, incluir los ingresos del hijo en su declaración, utilice el Formulario 8615 para calcular los impuestos del hijo. 1040 ez online Adjunte el formulario completado al Formulario 1040 o al Formulario 1040A del hijo. 1040 ez online Cuándo se tiene que presentar el Formulario 8615. 1040 ez online   El Formulario 8615 tiene que presentarse para un hijo si se dan todas las siguientes condiciones: Los ingresos del hijo no derivados del trabajo eran superiores a $2,000. 1040 ez online El hijo está obligado a presentar una declaración para 2013. 1040 ez online Dicho hijo: Era menor de 18 años de edad al final del año, Tenía 18 años a finales del año y su ingreso del trabajo no constituía más de la mitad de su manutención o Era estudiante a tiempo completo mayor de 18 años y menor de 24 años al finalizar el año y su ingreso del trabajo no constituía más de la mitad de la manutención suya. 1040 ez online Por lo menos uno de los padres del hijo estaba vivo al finalizar el año 2013. 1040 ez online El hijo no presenta una declaración conjunta para 2013. 1040 ez online Estas condiciones se hallan también en la Figura 31-B. 1040 ez online Ingreso del trabajo. 1040 ez online   El ingreso del trabajo incluye sueldos, salarios, propinas y otras remuneraciones recibidas por servicios personales que usted prestó. 1040 ez online No incluye los ingresos no derivados del trabajo según se define más adelante en este capítulo. 1040 ez online Manutención. 1040 ez online   La manutención de su hijo incluye todas las cantidades gastadas para proveerle alimentos, alojamiento, ropa, educación, cuidado médico y dental, recreación, transporte y necesidades similares. 1040 ez online Al calcular la manutención de su hijo, incluya aquélla proporcionada por usted, su hijo y otras personas. 1040 ez online Sin embargo, no se considera como manutención una beca que su hijo haya recibido si éste es estudiante a tiempo completo. 1040 ez online Vea el capítulo 3 para más detalles acerca de la manutención. 1040 ez online Determinados cumpleaños el 1 de enero. 1040 ez online   Utilice la siguiente tabla para saber si determinados hijos con cumpleaños en el 1 de enero cumplen la condición 3 bajo Cuándo se tiene que presentar el Formulario 8615. 1040 ez online    SI un hijo nació. 1040 ez online . 1040 ez online . 1040 ez online ENTONCES, al finalizar 2013, se considera que el hijo tiene. 1040 ez online . 1040 ez online . 1040 ez online el 1 de enero de 1996 18 años* el 1 de enero de 1995 19 años** el 1 de enero de 1990 24 años*** *Este hijo no es menor de 18 años. 1040 ez online El hijo cumple la condición 3 sólo si éste no tuvo ingresos derivados del trabajo superiores a más de la mitad de la manutención suya. 1040 ez online  **El hijo cumple la condición 3 sólo si éste era estudiante a tiempo completo y no tuvo ingresos derivados del trabajo superiores a más de la mitad de la manutención suya. 1040 ez online  ***No utilice el Formulario 8615 para este hijo. 1040 ez online Cómo Facilitar Información sobre los Padres (líneas A-C del Formulario 8615) En las líneas A y B del Formulario 8615, escriba el nombre y número de Seguro Social de los padres. 1040 ez online (Si los padres presentaron una declaración conjunta, escriba el nombre y número de Seguro Social que aparezca primero en la declaración conjunta). 1040 ez online En la línea C, marque el recuadro correspondiente al estado civil para efectos de la declaración del padre o de la madre. 1040 ez online Vea Cómo Saber si se Tiene que Utilizar la Declaración del Padre o de la Madre al principio de este capítulo para información sobre qué información de la declaración de los padres tiene que utilizar para llenar el Formulario 8615. 1040 ez online Padre o madre con año tributario distinto. 1040 ez online   Si el padre o la madre y el hijo no tienen el mismo año tributario, complete el Formulario 8615 utilizando la información de la declaración del padre o de la madre para el año tributario que finalice durante el año tributario del hijo. 1040 ez online Si no se obtiene a tiempo la información de la declaración del padre o de la madre. 1040 ez online   Si la información necesaria de la declaración de los padres no se obtiene para la fecha de vencimiento del plazo de entrega de la declaración del hijo (normalmente el 15 de abril), puede utilizar cálculos aproximados para presentar la declaración. 1040 ez online   Puede utilizar cualquier cálculo aproximado razonable. 1040 ez online Dicho cálculo puede derivarse de información de la declaración del año anterior. 1040 ez online Si utiliza un cálculo aproximado en el Formulario 8615, anote en inglés, “Estimated” (Aproximado) en la línea junto a dicha cantidad. 1040 ez online    Cuando obtenga la información correcta, presente una declaración enmendada utilizando el Formulario 1040X, Amended U. 1040 ez online S. 1040 ez online Individual Income Tax Return (Declaración enmendada de impuestos sobre el ingreso personal de los Estados Unidos), en inglés. 1040 ez online   En vez de utilizar cálculos aproximados, quizás pueda conseguir una prórroga automática de 6 meses para presentar la declaración de impuestos si para la fecha de vencimiento del plazo de entrega de la misma, presenta el Formulario 4868(SP), Solicitud de Prórroga Automática para Presentar la Declaración del Impuesto sobre el Ingreso Personal de los Estados Unidos (o el Formulario 4868, en inglés). 1040 ez online Las prórrogas se explican en el capítulo 1 . 1040 ez online Paso 1. 1040 ez online Cómo Calcular los Ingresos Netos No Derivados del Trabajo del Hijo (Parte I del Formulario 8615) Al calcular el impuesto de un hijo utilizando el Formulario 8615, el primer paso es calcular los ingresos netos no derivados del trabajo del hijo. 1040 ez online Para hacerlo, utilice la Parte I del Formulario 8615. 1040 ez online Línea 1 (ingresos no derivados del trabajo). 1040 ez online   Si el hijo no recibió ingresos del trabajo, anote en esta línea los ingresos brutos ajustados indicados en la declaración del hijo. 1040 ez online Los ingresos brutos ajustados aparecen en la línea 38 del Formulario 1040 o en la línea 22 del Formulario 1040A. 1040 ez online No se puede utilizar el Formulario 1040EZ si se tiene que presentar el Formulario 8615. 1040 ez online   Si el hijo sí recibió ingresos del trabajo, calcule la cantidad a anotar en la línea 1 del Formulario 8615 utilizando la hoja de trabajo de las instrucciones del formulario. 1040 ez online   No obstante, si el hijo: ha excluido de la declaración algunos ingresos ganados en el extranjero, ha deducido alguna pérdida del trabajo por cuenta propia o ha deducido alguna pérdida neta de operación de otro año, utilice la Alternate Worksheet (Hoja de trabajo alternativa) para la línea 1 del Formulario 8615 que se encuentra en la Publicación 929, en inglés, para calcular la cantidad a anotar en la línea 1 del Formulario 8615. 1040 ez online Definición de los ingresos no derivados del trabajo. 1040 ez online   Los ingresos no derivados del trabajo generalmente son todos los ingresos que no sean sueldos, salarios ni otras cantidades recibidas como pago por trabajo que de hecho se haya realizado. 1040 ez online Dichos ingresos abarcan los intereses tributables, dividendos (inclusive las distribuciones de ganancias de capital), ganancias de capital, compensación por desempleo, la parte sujeta a impuestos de pagos del Seguro Social y pensiones y determinadas distribuciones de fideicomisos. 1040 ez online Además, los ingresos no derivados del trabajo abarcan cantidades derivadas de bienes que el hijo haya adquirido con ingresos del trabajo (como intereses sobre una cuenta de ahorros en la que el hijo haya depositado sueldos). 1040 ez online Ingresos no sujetos a impuestos. 1040 ez online   Para este fin, los ingresos no derivados del trabajo sólo abarcan cantidades que su hijo tenga que incluir en el total de ingresos. 1040 ez online No se incluyen los ingresos no tributables no derivados del trabajo, tales como los intereses exentos de impuestos y la parte no tributable de pagos del Seguro Social y pensiones. 1040 ez online Ingresos procedentes de bienes recibidos como regalo. 1040 ez online   Los ingresos no derivados del trabajo de un hijo abarcan todo ingreso generado por bienes que pertenezcan al hijo. 1040 ez online Esto es así aun si se le traspasaron los bienes al hijo, independientemente de cuándo se traspasaron o se compraron dichos bienes ni quién los traspasó. 1040 ez online   Los ingresos no derivados del trabajo de un hijo incluyen ingresos generados por bienes dados al hijo como regalo. 1040 ez online Esto incluye regalos dados al hijo por los abuelos o cualquier otra persona y regalos dados conforme a la Uniform Gift to Minors Act (Ley de Uniformidad Respecto a Regalos a Menores). 1040 ez online Ejemplo. 1040 ez online Amanda Naranjo, de 13 años de edad, recibió los siguientes ingresos: Dividendos — $800 Salarios — $2,100 Intereses tributables — $1,200 Intereses exentos de impuestos — $100 Ganancias netas de capital — $100 Los dividendos eran dividendos calificados sobre acciones que le habían regalado sus abuelos. 1040 ez online Los ingresos no derivados del trabajo de Amanda son $2,100. 1040 ez online Éste es el total de dividendos ($800), intereses tributables ($1,200) y ganancias netas de capital ($100). 1040 ez online Su salario se considera ingreso del trabajo, y no de ingreso no derivado del trabajo porque se le paga por un trabajo que de hecho se ha realizado. 1040 ez online No se incluyen los intereses exentos de impuestos porque éstos no están sujetos a impuestos. 1040 ez online Ingresos provenientes de fideicomisos. 1040 ez online   Si el hijo es beneficiario de un fideicomiso, las distribuciones de intereses, dividendos, ganancias de capital y otros ingresos no derivados del trabajo tributables procedentes de dicho fideicomiso se consideran ingresos no derivados del trabajo del hijo. 1040 ez online   No obstante, para llenar el Formulario 8615, una distribución tributable de un fideicomiso calificado establecido para casos de incapacidad no se considera ingresos no derivados del trabajo sino ingresos del trabajo. 1040 ez online Línea 2 (deducciones). 1040 ez online   Si el hijo no detalla las deducciones en el Anexo A del Formulario 1040, anote $2,000 en la línea 2. 1040 ez online   Si el hijo sí detalla las deducciones, anote en la línea 2 la cantidad mayor entre: $1,000 más la parte de las deducciones detalladas del hijo de la línea 29 del Anexo A del Formulario 1040 que esté directamente relacionada con la generación de ingresos no derivados del trabajo anotados en la línea 1 o $2,000. 1040 ez online Relación directa entre las deducciones y la generación de ingresos no derivados del trabajo. 1040 ez online   Se considera que las deducciones detalladas están directamente relacionadas con la generación de ingresos no derivados del trabajo si las mismas corresponden a gastos pagados para generar o cobrar ingresos sujetos a impuestos o para administrar, conservar o mantener bienes cuyo fin es generar ingresos. 1040 ez online Esos gastos abarcan cargos por custodia y servicios, cargos por servicios de cobro de intereses y dividendos tributables y determinados cargos por asesoramiento sobre inversiones. 1040 ez online   Estos gastos se suman a otras deducciones detalladas misceláneas en el Anexo A (Formulario 1040). 1040 ez online Sólo se puede deducir la cantidad que sea superior al 2% de los ingresos brutos ajustados del hijo. 1040 ez online Vea el capítulo 28 para más información. 1040 ez online Ejemplo 1. 1040 ez online Roberto, de 12 años de edad, tiene ingresos no derivados del trabajo de $8,000, sin otros ingresos ni ajustes a los ingresos. 1040 ez online Tiene deducciones detalladas de $300 (netas del límite del 2%) que están directamente relacionadas con sus ingresos no derivados del trabajo. 1040 ez online Tiene ingresos brutos ajustados de $8,000 que se anotan en la línea 38 del Formulario 1040 y en la línea 1 del Formulario 8615. 1040 ez online En la línea 2 se anotan $2,000 porque dicha cantidad supera la suma de $1,000 más las deducciones detalladas de $300 directamente relacionadas con la generación de ingresos de inversiones. 1040 ez online Ejemplo 2. 1040 ez online Elena, de 8 años de edad, tiene ingresos no derivados del trabajo de $16,000 y tiene una multa de $100 por retiro prematuro. 1040 ez online No tiene otros ingresos. 1040 ez online Tiene deducciones detalladas de $1,050 (netas del límite del 2%) que están directamente relacionadas con la generación de sus ingresos no derivados del trabajo. 1040 ez online Sus ingresos brutos ajustados, anotados en la línea 1, son $15,900 ($16,000 − $100). 1040 ez online La cantidad de la línea 2 es $2,050. 1040 ez online Ésta es la cantidad mayor de: $1,000 más los $1,050 de deducciones detalladas directamente relacionadas con la generación de ingresos de inversiones o $2,000. 1040 ez online Línea 3. 1040 ez online   De la línea 1 reste la línea 2 y anote el resultado en esta línea. 1040 ez online Si es cero o menos, no llene el resto del formulario. 1040 ez online No obstante, tiene que adjuntar el Formulario 8615 a la declaración del hijo. 1040 ez online Calcule el impuesto sobre los ingresos tributables del hijo de manera normal. 1040 ez online Línea 4 (ingresos tributables del hijo). 1040 ez online   Anote en la línea 4 los ingresos tributables del hijo provenientes de la línea 43 del Formulario 1040 o de la línea 27 del Formulario 1040A. 1040 ez online   Sin embargo, si el hijo presenta el Formulario 2555 o el Formulario 2555-EZ para declarar la exclusión de ingresos ganados en el extranjero, la exclusión por concepto de vivienda o la deducción por concepto de vivienda, vea las Instrucciones del Formulario 8615 o la Publicación 929, ambas en inglés. 1040 ez online Línea 5 (ingresos netos no derivados del trabajo). 1040 ez online   Los ingresos netos no derivados del trabajo del hijo no pueden sobrepasar sus ingresos tributables. 1040 ez online Anote en la línea 5 del Formulario 8615 la cantidad de la línea 3 o la línea 4, la que sea menor. 1040 ez online Esta cantidad corresponde a los ingresos netos no derivados del trabajo del hijo. 1040 ez online   Si es cero o menos, no llene el resto del formulario. 1040 ez online No obstante, tiene que adjuntar el Formulario 8615 a la declaración del hijo. 1040 ez online Calcule el impuesto sobre los ingresos tributables del hijo de manera normal. 1040 ez online Paso 2. 1040 ez online Cómo Calcular el Impuesto Provisional a la Tasa Impositiva de los Padres (Parte II del Formulario 8615) El siguiente paso al llenar el Formulario 8615 es calcular un impuesto provisional sobre los ingresos netos no derivados del trabajo del hijo utilizando la tasa impositiva del padre o de la madre. 1040 ez online El impuesto provisional a la tasa impositiva del padre o de la madre es la diferencia entre el impuesto sobre los ingresos tributables del padre o de la madre calculados con los ingresos netos no derivados del trabajo del hijo (más los ingresos netos no derivados del trabajo de cualquier otro hijo cuyo Formulario 8615 incluya la información de la declaración de impuestos del padre o de la madre) y el impuesto calculado sin dichos ingresos. 1040 ez online Al calcular el impuesto provisional a la tasa impositiva del padre o de la madre en el Formulario 8615, no vuelva a calcular las exclusiones, deducciones ni créditos en la declaración del padre o de la madre debido a los ingresos netos no derivados del trabajo del hijo. 1040 ez online Por ejemplo, no vuelva a calcular la deducción por gastos médicos. 1040 ez online Calcule el impuesto provisional en las líneas 6 a 13 del Formulario 8615. 1040 ez online Nota: Si el hijo o el padre o la madre tiene pérdidas o ganancias de capital, obtenga la Publicación 929, en inglés, para información que le será de ayuda al completar la Parte II del Formulario 8615. 1040 ez online Línea 6 (ingresos tributables del padre o de la madre). 1040 ez online   Anote en la línea 6 los ingresos tributables del padre o de la madre provenientes de la línea 43 del Formulario 1040, de la línea 27 del Formulario 1040A o la línea 6 del Formulario 1040EZ. 1040 ez online   Si utilizó la Foreign Earned Income Tax Worksheet (Hoja de trabajo para el impuesto sobre los ingresos del trabajo en el extranjero) de las instrucciones del Formulario 1040 para calcular el impuesto correspondiente al padre o a la madre, anote la cantidad de la línea 3 de dicha hoja de trabajo en vez de los ingresos tributables del padre o de la madre. 1040 ez online Línea 7 (ingresos netos no derivados del trabajo de otros hijos). 1040 ez online   Si la información de la declaración del padre o de la madre se utiliza también en el Formulario 8615 de otro hijo, anote en la línea 7 el total de las cantidades de la línea 5 de los Formularios 8615 de todos los demás hijos. 1040 ez online No incluya la cantidad de la línea 5 del Formulario 8615 que esté llenando. 1040 ez online Ejemplo. 1040 ez online Pablo y Juana del Pozo tienen tres hijos, Sandra, Geraldo y Miguel, quienes tienen que adjuntar el Formulario 8615 a sus declaraciones de impuestos respectivas. 1040 ez online Los ingresos netos no derivados del trabajo de los hijos en la línea 5 de sus Formularios 8615 son: Sandra — $800 Geraldo — $600 Miguel — $1,000 La línea 7 del Formulario 8615 de Sandra indicará $1,600, o sea, el total de las cantidades anotadas en la línea 5 de los Formularios 8615 de Geraldo y Miguel. 1040 ez online La línea 7 del Formulario 8615 de Geraldo indicará $1,800 ($800 + $1,000). 1040 ez online La línea 7 del Formulario 8615 de Miguel indicará $1,400 ($800 + $600). 1040 ez online Si no está disponible la información de los otros hijos. 1040 ez online   Si no está disponible la cantidad de los ingresos netos no derivados del trabajo de los otros hijos antes de que venza el plazo para presentar la declaración, preséntela anotando cálculos aproximados o solicite una prórroga del plazo para presentarla. 1040 ez online Vea Si no se obtiene a tiempo la información de la declaración del padre o de la madre , anteriormente. 1040 ez online Línea 11 (impuesto provisional). 1040 ez online   Reste la línea 10 de la línea 9 y anote el resultado en esta línea. 1040 ez online Éste es el impuesto provisional. 1040 ez online   Si la línea 7 está en blanco, ignore las líneas 12a y 12b y anote en la línea 13 la cantidad proveniente de la línea 11. 1040 ez online Ignore asimismo el tema siguiente que trata de las líneas 12a y 12b. 1040 ez online Líneas 12a y 12b (dividiendo el impuesto provisional). 1040 ez online   Si anota alguna cantidad en la línea 7 (fuera de cero), divida el impuesto provisional indicado en la línea 11 entre los hijos según la participación de cada hijo en el total de los ingresos netos no derivados del trabajo. 1040 ez online Esto se hace en las líneas 12a, 12b y 13. 1040 ez online Sume la cantidad de la línea 7 a la de la línea 5 y anote el total en la línea 12a. 1040 ez online Divida la cantidad de la línea 5 entre la de la línea 12a y anote el resultado, como número decimal, en la línea 12b. 1040 ez online Ejemplo. 1040 ez online En el ejemplo anterior bajo Línea 7 (ingresos netos no derivados del trabajo de otros hijos), el Formulario 8615 de Sandra indica $1,600 en la línea 7. 1040 ez online La cantidad anotada en la línea 12a es $2,400, o sea, el total de las cantidades provenientes de las líneas 5 y 7 ($800 + $1,600). 1040 ez online El número decimal en la línea 12b es . 1040 ez online 333, calculado de la siguienta manera y redondeado hasta tres decimales:   $800 = . 1040 ez online 333     $2,400   Paso 3. 1040 ez online Cómo Calcular el Impuesto del Hijo (Parte III del Formulario 8615) El último paso para calcular el impuesto de su hijo utilizando el Formulario 8615 es determinar la cantidad mayor entre: El total de: La parte del impuesto provisional correspondiente al hijo basado en la tasa impositiva del padre o de la madre, más El impuesto sobre los ingresos tributables del hijo que sean superiores a los ingresos netos no derivados del trabajo, calculado a la tasa impositiva del hijo o El impuesto sobre los ingresos tributables del hijo calculado a la tasa impositiva del hijo. 1040 ez online Éste es el impuesto del hijo. 1040 ez online Se calcula en las líneas 14 a 18 del Formulario 8615. 1040 ez online Impuesto mínimo alternativo. 1040 ez online   Un hijo puede estar sujeto al impuesto mínimo alternativo (AMT, por sus siglas en inglés) si cuenta con determinados elementos que reciben un trato preferente conforme a la ley tributaria. 1040 ez online Vea el tema titulado Impuesto Mínimo Alternativo (AMT) , en el capítulo 30. 1040 ez online    Para información adicional acerca de quién tiene que pagar el AMT y cómo calcularlo, vea el Formulario 6251, Alternative Minimum Tax—Individuals (Impuesto mínimo alternativo—individuos), en inglés. 1040 ez online Para información sobre límites especiales aplicables a un hijo que presente el Formulario 6251, vea Certain Children Under Age 24 (Determinados hijos menores de 24 años de edad), en las Instrucciones para el Formulario 6251, en inglés. 1040 ez online Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Michigan

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone* 
Detroit  500 Woodward Ave.
Detroit, MI 48226 

Monday-Friday - 8:30 a.m.- 4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(313) 628-3722 
Flint  917 N. Saginaw Street
Flint, MI 48503 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**


Services Provided

(810) 342-6190 
Grand Rapids  3251 N. Evergreen Dr. N.E.
Grand Rapids, MI 49525 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
 

Services Provided

(616) 365-4700 
Marquette  1055 W. Baraga Ave.
Marquette, MI 49855 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(906) 228-7845 
Saginaw  4901 Towne Centre
Saginaw, MI 48604 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(989) 797-8560 
Traverse City  2040 N. US 31 South
Traverse City, MI 49685 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)
 

    Services Provided

(231) 932-2192 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call 313-628-3670 in Detroit or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see Tax Topic 104

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
477 Michigan Ave.
Stop 45, Room 2401
Detroit, MI 48226

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 1040 Ez Online

1040 ez online 17. 1040 ez online   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. 1040 ez online  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. 1040 ez online If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. 1040 ez online For more information, see How Much Can Be Contributed? later. 1040 ez online Roth IRA contribution limit. 1040 ez online  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. 1040 ez online If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. 1040 ez online However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. 1040 ez online For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. 1040 ez online Modified AGI limit for traditional IRA contributions increased. 1040 ez online  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. 1040 ez online If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. 1040 ez online If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. 1040 ez online See How Much Can You Deduct , later. 1040 ez online Modified AGI limit for Roth IRA contributions increased. 1040 ez online  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. 1040 ez online Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. 1040 ez online You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. 1040 ez online Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. 1040 ez online You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. 1040 ez online Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. 1040 ez online You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. 1040 ez online See Can You Contribute to a Roth IRA , later. 1040 ez online Net Investment Income Tax. 1040 ez online   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). 1040 ez online However, these distributions are taken into account when determining the modified adjusted gross income threshold. 1040 ez online Distributions from a nonqualified retirement plan are included in net investment income. 1040 ez online See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. 1040 ez online Name change. 1040 ez online  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. 1040 ez online There are no changes to the rules regarding these IRAs. 1040 ez online See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. 1040 ez online Reminders 2014 limits. 1040 ez online   You can find information about the 2014 contribution and AGI limits in Publication 590. 1040 ez online Contributions to both traditional and Roth IRAs. 1040 ez online   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. 1040 ez online Statement of required minimum distribution. 1040 ez online  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. 1040 ez online The report or offer must include the date by which the amount must be distributed. 1040 ez online The report is due January 31 of the year in which the minimum distribution is required. 1040 ez online It can be provided with the year-end fair market value statement that you normally get each year. 1040 ez online No report is required for IRAs of owners who have died. 1040 ez online IRA interest. 1040 ez online  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. 1040 ez online Tax on your traditional IRA is generally deferred until you take a distribution. 1040 ez online Do not report this interest on your tax return as tax-exempt interest. 1040 ez online Form 8606. 1040 ez online   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. 1040 ez online The term “50 or older” is used several times in this chapter. 1040 ez online It refers to an IRA owner who is age 50 or older by the end of the tax year. 1040 ez online Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. 1040 ez online This chapter discusses the following topics. 1040 ez online The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). 1040 ez online The Roth IRA, which features nondeductible contributions and tax-free distributions. 1040 ez online Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. 1040 ez online For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. 1040 ez online For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. 1040 ez online Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. 1040 ez online ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. 1040 ez online Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. 1040 ez online Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. 1040 ez online What is compensation?   Generally, compensation is what you earn from working. 1040 ez online Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. 1040 ez online The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). 1040 ez online   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. 1040 ez online   Compensation also includes commissions and taxable alimony and separate maintenance payments. 1040 ez online Self-employment income. 1040 ez online   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deductible part of your self-employment tax. 1040 ez online   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. 1040 ez online Nontaxable combat pay. 1040 ez online   For IRA purposes, if you were a member of the U. 1040 ez online S. 1040 ez online Armed Forces, your compensation includes any nontaxable combat pay you receive. 1040 ez online What is not compensation?   Compensation does not include any of the following items. 1040 ez online Earnings and profits from property, such as rental income, interest income, and dividend income. 1040 ez online Pension or annuity income. 1040 ez online Deferred compensation received (compensation payments postponed from a past year). 1040 ez online Income from a partnership for which you do not provide services that are a material income-producing factor. 1040 ez online Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. 1040 ez online Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. 1040 ez online When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. 1040 ez online However, the time for making contributions for any year is limited. 1040 ez online See When Can Contributions Be Made , later. 1040 ez online You can open different kinds of IRAs with a variety of organizations. 1040 ez online You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. 1040 ez online You can also open an IRA through your stockbroker. 1040 ez online Any IRA must meet Internal Revenue Code requirements. 1040 ez online Kinds of traditional IRAs. 1040 ez online   Your traditional IRA can be an individual retirement account or annuity. 1040 ez online It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. 1040 ez online How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. 1040 ez online These limits and other rules are explained below. 1040 ez online Community property laws. 1040 ez online   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. 1040 ez online This is the rule even in states with community property laws. 1040 ez online Brokers' commissions. 1040 ez online   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. 1040 ez online Trustees' fees. 1040 ez online   Trustees' administrative fees are not subject to the contribution limit. 1040 ez online Qualified reservist repayments. 1040 ez online   If you are (or were) a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions you received. 1040 ez online You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. 1040 ez online To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or similar arrangement. 1040 ez online   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. 1040 ez online Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. 1040 ez online (See Roth IRAs, later. 1040 ez online ) General limit. 1040 ez online   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. 1040 ez online $5,500 ($6,500 if you are 50 or older). 1040 ez online Your taxable compensation (defined earlier) for the year. 1040 ez online This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. 1040 ez online (See Nondeductible Contributions , later. 1040 ez online ) Qualified reservist repayments do not affect this limit. 1040 ez online Example 1. 1040 ez online Betty, who is 34 years old and single, earned $24,000 in 2013. 1040 ez online Her IRA contributions for 2013 are limited to $5,500. 1040 ez online Example 2. 1040 ez online John, an unmarried college student working part time, earned $3,500 in 2013. 1040 ez online His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. 1040 ez online Kay Bailey Hutchison Spousal IRA limit. 1040 ez online   For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following amounts. 1040 ez online $5,500 ($6,500 if you are 50 or older). 1040 ez online The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. 1040 ez online Your spouse's IRA contribution for the year to a traditional IRA. 1040 ez online Any contribution for the year to a Roth IRA on behalf of your spouse. 1040 ez online This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). 1040 ez online When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). 1040 ez online Contributions must be in the form of money (cash, check, or money order). 1040 ez online Property cannot be contributed. 1040 ez online Contributions must be made by due date. 1040 ez online   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. 1040 ez online Age 70½ rule. 1040 ez online   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. 1040 ez online   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. 1040 ez online If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. 1040 ez online Designating year for which contribution is made. 1040 ez online   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. 1040 ez online If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). 1040 ez online Filing before a contribution is made. 1040 ez online   You can file your return claiming a traditional IRA contribution before the contribution is actually made. 1040 ez online Generally, the contribution must be made by the due date of your return, not including extensions. 1040 ez online Contributions not required. 1040 ez online   You do not have to contribute to your traditional IRA for every tax year, even if you can. 1040 ez online How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if it applies). 1040 ez online However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. 1040 ez online See Limit If Covered by Employer Plan , later. 1040 ez online You may be able to claim a credit for contributions to your traditional IRA. 1040 ez online For more information, see chapter 37. 1040 ez online Trustees' fees. 1040 ez online   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. 1040 ez online However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). 1040 ez online See chapter 28. 1040 ez online Brokers' commissions. 1040 ez online   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. 1040 ez online Full deduction. 1040 ez online   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). 1040 ez online 100% of your compensation. 1040 ez online This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. 1040 ez online Kay Bailey Hutchison Spousal IRA. 1040 ez online   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of the following amounts. 1040 ez online $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). 1040 ez online The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. 1040 ez online The IRA deduction for the year of the spouse with the greater compensation. 1040 ez online Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. 1040 ez online Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. 1040 ez online This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. 1040 ez online Note. 1040 ez online If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. 1040 ez online After a divorce or legal separation, you can deduct only contributions to your own IRA. 1040 ez online Your deductions are subject to the rules for single individuals. 1040 ez online Covered by an employer retirement plan. 1040 ez online   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. 1040 ez online This is discussed later under Limit If Covered by Employer Plan . 1040 ez online Limits on the amount you can deduct do not affect the amount that can be contributed. 1040 ez online See Nondeductible Contributions , later. 1040 ez online Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. 1040 ez online The “Retirement plan” box should be checked if you were covered. 1040 ez online Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. 1040 ez online If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. 1040 ez online Federal judges. 1040 ez online   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. 1040 ez online For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. 1040 ez online These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. 1040 ez online Tax year. 1040 ez online   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. 1040 ez online For almost all people, the tax year is the calendar year. 1040 ez online Defined contribution plan. 1040 ez online   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. 1040 ez online   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. 1040 ez online Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. 1040 ez online Defined benefit plan. 1040 ez online   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. 1040 ez online This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. 1040 ez online   A defined benefit plan is any plan that is not a defined contribution plan. 1040 ez online Defined benefit plans include pension plans and annuity plans. 1040 ez online No vested interest. 1040 ez online   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. 1040 ez online Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. 1040 ez online Social security or railroad retirement. 1040 ez online   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. 1040 ez online Benefits from a previous employer's plan. 1040 ez online   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. 1040 ez online Reservists. 1040 ez online   If the only reason you participate in a plan is because you are a member of a reserve unit of the armed forces, you may not be covered by the plan. 1040 ez online You are not covered by the plan if both of the following conditions are met. 1040 ez online The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. 1040 ez online You did not serve more than 90 days on active duty during the year (not counting duty for training). 1040 ez online Volunteer firefighters. 1040 ez online   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. 1040 ez online You are not covered by the plan if both of the following conditions are met. 1040 ez online The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. 1040 ez online Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. 1040 ez online Limit If Covered by Employer Plan If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. 1040 ez online Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. 1040 ez online These amounts vary depending on your filing status. 1040 ez online To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. 1040 ez online See Filing status and Modified adjusted gross income (AGI) , later. 1040 ez online Then use Table 17-1 or 17-2 to determine if the phaseout applies. 1040 ez online Social security recipients. 1040 ez online   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. 1040 ez online You received social security benefits. 1040 ez online You received taxable compensation. 1040 ez online Contributions were made to your traditional IRA. 1040 ez online You or your spouse was covered by an employer retirement plan. 1040 ez online Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. 1040 ez online Deduction phaseout. 1040 ez online   If you were covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI as shown in Table 17-1. 1040 ez online Table 17-1. 1040 ez online Effect of Modified AGI1 on Deduction if You Are Covered by Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. 1040 ez online IF your filing status is. 1040 ez online . 1040 ez online . 1040 ez online   AND your modified AGI is. 1040 ez online . 1040 ez online . 1040 ez online   THEN you can take. 1040 ez online . 1040 ez online . 1040 ez online single   or  head of household   $59,000 or less   a full deduction. 1040 ez online   more than $59,000 but less than $69,000   a partial deduction. 1040 ez online   $69,000 or more   no deduction. 1040 ez online married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. 1040 ez online   more than $95,000 but less than $115,000   a partial deduction. 1040 ez online   $115,000 or more   no deduction. 1040 ez online married filing separately2   less than $10,000   a partial deduction. 1040 ez online   $10,000 or more   no deduction. 1040 ez online 1Modified AGI (adjusted gross income). 1040 ez online See Modified adjusted gross income (AGI) . 1040 ez online 2If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” column). 1040 ez online If your spouse is covered. 1040 ez online   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 17-2. 1040 ez online Filing status. 1040 ez online   Your filing status depends primarily on your marital status. 1040 ez online For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. 1040 ez online If you need more information on filing status, see chapter 2. 1040 ez online Lived apart from spouse. 1040 ez online   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. 1040 ez online Table 17-2. 1040 ez online Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. 1040 ez online IF your filing status is. 1040 ez online . 1040 ez online . 1040 ez online   AND your modified AGI is. 1040 ez online . 1040 ez online . 1040 ez online   THEN you can take. 1040 ez online . 1040 ez online . 1040 ez online single, head of household, or qualifying widow(er)   any amount   a full deduction. 1040 ez online married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. 1040 ez online married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. 1040 ez online   more than $178,000 but less than $188,000   a partial deduction. 1040 ez online   $188,000 or more   no deduction. 1040 ez online married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. 1040 ez online   $10,000 or more   no deduction. 1040 ez online 1Modified AGI (adjusted gross income). 1040 ez online See Modified adjusted gross income (AGI) . 1040 ez online 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. 1040 ez online Modified adjusted gross income (AGI). 1040 ez online   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. 1040 ez online If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. 1040 ez online You may be able to use Worksheet 17-1 to figure your modified AGI. 1040 ez online    Do not assume that your modified AGI is the same as your compensation. 1040 ez online Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. 1040 ez online Form 1040. 1040 ez online   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. 1040 ez online IRA deduction. 1040 ez online Student loan interest deduction. 1040 ez online Tuition and fees deduction. 1040 ez online Domestic production activities deduction. 1040 ez online Foreign earned income exclusion. 1040 ez online Foreign housing exclusion or deduction. 1040 ez online Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. 1040 ez online S. 1040 ez online Savings Bonds Issued After 1989. 1040 ez online Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. 1040 ez online This is your modified AGI. 1040 ez online Form 1040A. 1040 ez online   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. 1040 ez online IRA deduction. 1040 ez online Student loan interest deduction. 1040 ez online Tuition and fees deduction. 1040 ez online Exclusion of qualified savings bond interest shown on Form 8815. 1040 ez online This is your modified AGI. 1040 ez online Both contributions for 2013 and distributions in 2013. 1040 ez online   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. 1040 ez online You received distributions in 2013 from one or more traditional IRAs. 1040 ez online You made contributions to a traditional IRA for 2013. 1040 ez online Some of those contributions may be nondeductible contributions. 1040 ez online If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. 1040 ez online To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. 1040 ez online   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. 1040 ez online    How to figure your reduced IRA deduction. 1040 ez online   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. 1040 ez online Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. 1040 ez online Worksheet 17-1. 1040 ez online Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. 1040 ez online 1. 1040 ez online Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. 1040 ez online   2. 1040 ez online Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. 1040 ez online   3. 1040 ez online Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. 1040 ez online   4. 1040 ez online Enter any domestic production activities deduction from Form 1040, line 35 4. 1040 ez online   5. 1040 ez online Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. 1040 ez online   6. 1040 ez online Enter any foreign housing deduction from Form 2555, line 50 6. 1040 ez online   7. 1040 ez online Enter any excludable savings bond interest from Form 8815, line 14 7. 1040 ez online   8. 1040 ez online Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. 1040 ez online   9. 1040 ez online Add lines 1 through 8. 1040 ez online This is your Modified AGI for traditional IRA purposes 9. 1040 ez online   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. 1040 ez online If you file Form 1040A, enter your IRA deduction on line 17. 1040 ez online You cannot deduct IRA contributions on Form 1040EZ. 1040 ez online Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. 1040 ez online The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. 1040 ez online Example. 1040 ez online Mike is 28 years old and single. 1040 ez online In 2013, he was covered by a retirement plan at work. 1040 ez online His salary was $57,312. 1040 ez online His modified AGI was $70,000. 1040 ez online Mike made a $5,500 IRA contribution for 2013. 1040 ez online Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. 1040 ez online He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. 1040 ez online Form 8606. 1040 ez online   To designate contributions as nondeductible, you must file Form 8606. 1040 ez online   You do not have to designate a contribution as nondeductible until you file your tax return. 1040 ez online When you file, you can even designate otherwise deductible contributions as nondeductible. 1040 ez online   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. 1040 ez online A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. 1040 ez online In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. 1040 ez online See Form 8606 under Distributions Fully or Partly Taxable, later. 1040 ez online Failure to report nondeductible contributions. 1040 ez online   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. 1040 ez online All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 1040 ez online Penalty for overstatement. 1040 ez online   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. 1040 ez online Penalty for failure to file Form 8606. 1040 ez online   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. 1040 ez online    Tax on earnings on nondeductible contributions. 1040 ez online   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. 1040 ez online See When Can You Withdraw or Use IRA Assets , later. 1040 ez online Cost basis. 1040 ez online   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. 1040 ez online Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. 1040 ez online Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. 1040 ez online A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. 1040 ez online Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. 1040 ez online Inherited from spouse. 1040 ez online   If you inherit a traditional IRA from your spouse, you generally have the following three choices. 1040 ez online You can: Treat it as your own IRA by designating yourself as the account owner. 1040 ez online Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). 1040 ez online Treat yourself as the beneficiary rather than treating the IRA as your own. 1040 ez online Treating it as your own. 1040 ez online   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. 1040 ez online You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. 1040 ez online   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. 1040 ez online Inherited from someone other than spouse. 1040 ez online   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. 1040 ez online This means that you cannot make any contributions to the IRA. 1040 ez online It also means you cannot roll over any amounts into or out of the inherited IRA. 1040 ez online However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. 1040 ez online For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. 1040 ez online Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. 1040 ez online You can make the following kinds of transfers. 1040 ez online Transfers from one trustee to another. 1040 ez online Rollovers. 1040 ez online Transfers incident to a divorce. 1040 ez online Transfers to Roth IRAs. 1040 ez online   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. 1040 ez online You can also move assets from a qualified retirement plan to a Roth IRA. 1040 ez online See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. 1040 ez online Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, is not a rollover. 1040 ez online Because there is no distribution to you, the transfer is tax free. 1040 ez online Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . 1040 ez online For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. 1040 ez online Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. 1040 ez online The contribution to the second retirement plan is called a “rollover contribution. 1040 ez online ” Note. 1040 ez online An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. 1040 ez online Kinds of rollovers to a traditional IRA. 1040 ez online   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). 1040 ez online Treatment of rollovers. 1040 ez online   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . 1040 ez online Kinds of rollovers from a traditional IRA. 1040 ez online   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. 1040 ez online These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). 1040 ez online The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). 1040 ez online Qualified plans may, but are not required to, accept such rollovers. 1040 ez online Time limit for making a rollover contribution. 1040 ez online   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. 1040 ez online The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. 1040 ez online For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 1040 ez online Extension of rollover period. 1040 ez online   If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, special rules extend the rollover period. 1040 ez online For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 1040 ez online More information. 1040 ez online   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 1040 ez online Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. 1040 ez online Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. 1040 ez online Waiting period between rollovers. 1040 ez online   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. 1040 ez online You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. 1040 ez online   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. 1040 ez online Example. 1040 ez online You have two traditional IRAs, IRA-1 and IRA-2. 1040 ez online You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). 1040 ez online You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. 1040 ez online However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. 1040 ez online This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. 1040 ez online Exception. 1040 ez online   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 1040 ez online Partial rollovers. 1040 ez online   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. 1040 ez online The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). 1040 ez online The amount you keep may be subject to the 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes? . 1040 ez online Required distributions. 1040 ez online   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. 1040 ez online Inherited IRAs. 1040 ez online   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. 1040 ez online See Treating it as your own , earlier. 1040 ez online Not inherited from spouse. 1040 ez online   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. 1040 ez online You must withdraw the IRA assets within a certain period. 1040 ez online For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. 1040 ez online Reporting rollovers from IRAs. 1040 ez online   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. 1040 ez online   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. 1040 ez online If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. 1040 ez online If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. 1040 ez online Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. 1040 ez online See your tax return instructions. 1040 ez online   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. 1040 ez online Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan; Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). 1040 ez online A qualified plan is one that meets the requirements of the Internal Revenue Code. 1040 ez online Eligible rollover distribution. 1040 ez online   Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. 1040 ez online A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). 1040 ez online A hardship distribution. 1040 ez online Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. 1040 ez online Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. 1040 ez online A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. 1040 ez online Dividends on employer securities. 1040 ez online The cost of life insurance coverage. 1040 ez online Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. 1040 ez online To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. 1040 ez online See Form 8606 under Distributions Fully or Partly Taxable, later. 1040 ez online Rollover by nonspouse beneficiary. 1040 ez online   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. 1040 ez online The IRA is treated as an inherited IRA. 1040 ez online For more information about inherited IRAs, see Inherited IRAs , earlier. 1040 ez online Reporting rollovers from employer plans. 1040 ez online    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. 1040 ez online This amount should be shown in box 1 of Form 1099-R. 1040 ez online From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. 1040 ez online From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. 1040 ez online Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. 1040 ez online Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. 1040 ez online Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. 1040 ez online The transfer is tax free. 1040 ez online For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 1040 ez online Converting From Any Traditional IRA to a Roth IRA Allowable conversions. 1040 ez online   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. 1040 ez online The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. 1040 ez online If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. 1040 ez online However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. 1040 ez online Required distributions. 1040 ez online   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). 1040 ez online Income. 1040 ez online   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. 1040 ez online These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. 1040 ez online   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. 1040 ez online   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. 1040 ez online   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. 1040 ez online See chapter 4. 1040 ez online Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. 1040 ez online This is called recharacterizing the contribution. 1040 ez online See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. 1040 ez online How to recharacterize a contribution. 1040 ez online   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. 1040 ez online If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. 1040 ez online If you recharacterize your contribution, you must do all three of the following. 1040 ez online Include in the transfer any net income allocable to the contribution. 1040 ez online If there was a loss, the net income you must transfer may be a negative amount. 1040 ez online Report the recharacterization on your tax return for the year during which the contribution was made. 1040 ez online Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. 1040 ez online No deduction allowed. 1040 ez online   You cannot deduct the contribution to the first IRA. 1040 ez online Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. 1040 ez online Required notifications. 1040 ez online   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. 1040 ez online You must make the notifications by the date of the transfer. 1040 ez online Only one notification is required if both IRAs are maintained by the same trustee. 1040 ez online The notification(s) must include all of the following information. 1040 ez online The type and amount of the contribution to the first IRA that is to be recharacterized. 1040 ez online The date on which the contribution was made to the first IRA and the year for which it was made. 1040 ez online A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. 1040 ez online The name of the trustee of the first IRA and the name of the trustee of the second IRA. 1040 ez online Any additional information needed to make the transfer. 1040 ez online Reporting a recharacterization. 1040 ez online   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. 1040 ez online You must treat the contribution as having been made to the second IRA. 1040 ez online When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. 1040 ez online Violation of the rules generally results in additional taxes in the year of violation. 1040 ez online See What Acts Result in Penalties or Additional Taxes , later. 1040 ez online Contributions returned before the due date of return. 1040 ez online   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. 1040 ez online If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. 1040 ez online You can do this if, for each contribution you withdraw, both of the following conditions apply. 1040 ez online You did not take a deduction for the contribution. 1040 ez online You withdraw any interest or other income earned on the contribution. 1040 ez online You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. 1040 ez online If there was a loss, the net income earned on the contribution may be a negative amount. 1040 ez online Note. 1040 ez online To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. 1040 ez online Earnings includible in income. 1040 ez online   You must include in income any earnings on the contributions you withdraw. 1040 ez online Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. 1040 ez online Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. 1040 ez online Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. 1040 ez online    Early distributions tax. 1040 ez online   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. 1040 ez online However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. 1040 ez online When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. 1040 ez online Eventually they must be distributed. 1040 ez online If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. 1040 ez online See Excess Accumulations (Insufficient Distributions) , later. 1040 ez online The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. 1040 ez online Required minimum distribution. 1040 ez online   The amount that must be distributed each year is referred to as the required minimum distribution. 1040 ez online Required distributions not eligible for rollover. 1040 ez online   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. 1040 ez online IRA owners. 1040 ez online   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. 1040 ez online April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. 1040 ez online Distributions by the required beginning date. 1040 ez online   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). 1040 ez online If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. 1040 ez online   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. 1040 ez online Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. 1040 ez online Distributions after the required beginning date. 1040 ez online   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. 1040 ez online    Beneficiaries. 1040 ez online   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. 1040 ez online More information. 1040 ez online   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. 1040 ez online Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. 1040 ez online Exceptions. 1040 ez online   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . 1040 ez online    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. 1040 ez online Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 1040 ez online Qualified charitable distributions (QCD). 1040 ez online   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. 1040 ez online Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. 1040 ez online See Qualified Charitable Distributions in Publication 590 for more information. 1040 ez online Ordinary income. 1040 ez online   Distributions from traditional IRAs that you include in income are taxed as ordinary income. 1040 ez online No special treatment. 1040 ez online   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. 1040 ez online Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. 1040 ez online Fully taxable. 1040 ez online   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. 1040 ez online Because you have no basis in your IRA, any distributions are fully taxable when received. 1040 ez online See Reporting taxable distributions on your return , later. 1040 ez online Partly taxable. 1040 ez online    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. 1040 ez online These nondeductible contributions are not taxed when they are distributed to you. 1040 ez online They are a return of your investment in your IRA. 1040 ez online   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. 1040 ez online If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). 1040 ez online Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. 1040 ez online Form 8606. 1040 ez online   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. 1040 ez online Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. 1040 ez online Note. 1040 ez online If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. 1040 ez online Send it to the IRS at the time and place you would otherwise file an income tax return. 1040 ez online Distributions reported on Form 1099-R. 1040 ez online   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1040 ez online , or a similar statement. 1040 ez online IRA distributions are shown in boxes 1 and 2a of Form 1099-R. 1040 ez online A number or letter code in box 7 tells you what type of distribution you received from your IRA. 1040 ez online Withholding. 1040 ez online   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. 1040 ez online See chapter 4. 1040 ez online IRA distributions delivered outside the United States. 1040 ez online   In general, if you are a U. 1040 ez online S. 1040 ez online citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. 1040 ez online Reporting taxable distributions on your return. 1040 ez online    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). 1040 ez online If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. 1040 ez online You cannot report distributions on Form 1040EZ. 1040 ez online What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. 1040 ez online There are additions to the regular tax for using your IRA funds in prohibited transactions. 1040 ez online There are also additional taxes for the following activities. 1040 ez online Investing in collectibles. 1040 ez online Making excess contributions. 1040 ez online Taking early distributions. 1040 ez online Allowing excess amounts to accumulate (failing to take required distributions). 1040 ez online There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. 1040 ez online Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. 1040 ez online Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). 1040 ez online The following are examples of prohibited transactions with a traditional IRA. 1040 ez online Borrowing money from it. 1040 ez online Selling property to it. 1040 ez online Receiving unreasonable compensation for managing it. 1040 ez online Using it as security for a loan. 1040 ez online Buying property for personal use (present or future) with IRA funds. 1040 ez online Effect on an IRA account. 1040 ez online   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. 1040 ez online Effect on you or your beneficiary. 1040 ez online   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. 1040 ez online If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. 1040 ez online For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. 1040 ez online The distribution may be subject to additional taxes or penalties. 1040 ez online Taxes on prohibited transactions. 1040 ez online   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. 1040 ez online In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. 1040 ez online More information. 1040 ez online   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. 1040 ez online Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. 1040 ez online You may have to pay the 10% additional tax on early distributions, discussed later. 1040 ez online Collectibles. 1040 ez online   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. 1040 ez online Exception. 1040 ez online    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. 1040 ez online S. 1040 ez online gold coins, or one-ounce silver coins minted by the Treasury Department. 1040 ez online It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. 1040 ez online Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. 1040 ez online For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. 1040 ez online Tax on excess contributions. 1040 ez online   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. 1040 ez online You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. 1040 ez online The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. 1040 ez online Excess contributions withdrawn by due date of return. 1040 ez online   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. 1040 ez online You must complete your withdrawal by the date your tax return for that year is due, including extensions. 1040 ez online How to treat withdrawn contributions. 1040 ez online   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. 1040 ez online No deduction was allowed for the excess contribution. 1040 ez online You withdraw the interest or other income earned on the excess contribution. 1040 ez online You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. 1040 ez online If there was a loss, the net income you must withdraw may be a negative amount. 1040 ez online How to treat withdrawn interest or other income. 1040 ez online   You must include in your gross income the interest or other income that was earned on the excess contribution. 1040 ez online Report it on your return for the year in which the excess contribution was made. 1040 ez online Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus