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2010incometax Forms

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2010incometax Forms

2010incometax forms 11. 2010incometax forms   Beneficios del Seguro Social y Beneficios Equivalentes de la Jubilación para Empleados Ferroviarios Table of Contents Introduction Useful Items - You may want to see: ¿Está Sujeta a Impuestos Alguna Parte de los Beneficios? Cómo Declarar los Beneficios¿Cuánto Está Sujeto a Impuestos? Ejemplos Deducciones Relacionadas con los BeneficiosReintegros Superiores a los Beneficios Brutos Introduction Este capítulo explica las reglas del impuesto federal sobre el ingreso para los beneficios del Seguro Social y beneficios equivalentes de la jubilación para empleados ferroviarios de nivel 1. 2010incometax forms Explica los siguientes temas: Cómo determinar si los beneficios están sujetos a impuestos. 2010incometax forms Cómo usar la hoja de trabajo de beneficios del Seguro Social (con ejemplos). 2010incometax forms Cómo declarar los beneficios sujetos a impuestos. 2010incometax forms Cómo tratar reintegros superiores a los beneficios recibidos durante el año. 2010incometax forms Los beneficios del Seguro Social incluyen los beneficios mensuales de jubilación, para el sobreviviente y de incapacidad. 2010incometax forms Éstos no incluyen pagos del Supplemental Security Income (Ingreso de seguridad suplementario o SSI, por sus siglas en inglés), los cuales no están sujetos a impuestos. 2010incometax forms Los beneficios equivalentes de la jubilación de empleados ferroviarios de nivel 1 son la parte de los beneficios de nivel 1 que un empleado ferroviario o beneficiario habría tenido derecho a recibir conforme al sistema del Seguro Social. 2010incometax forms Éstos se conocen habitualmente como el Social Security equivalent benefit (beneficio equivalente al Seguro Social o SSEB, por sus siglas en inglés) de los beneficios de nivel 1. 2010incometax forms Si recibió estos beneficios durante el año 2013, debería haber recibido un Formulario SSA-1099, Social Security Benefit Statement (Declaración de beneficios del Seguro Social), en inglés, o un Formulario RRB-1099, Payments by the Railroad Retirement Board (Pagos efectuados por la Junta de Jubilación Ferroviaria), en inglés. 2010incometax forms Estos formularios muestran las cantidades recibidas y reintegradas y los impuestos retenidos durante el año. 2010incometax forms Tal vez reciba más de uno de estos formularios para el mismo año. 2010incometax forms Debe sumar las cantidades que aparezcan en todos los Formularios SSA-1099 y los Formularios RRB-1099 que reciba para el año para determinar las cantidades totales recibidas y reintegradas, y los impuestos retenidos durante ese año. 2010incometax forms Consulte el Appendix (Apéndice) al final de la Publicación 915, Social Security and Equivalent Railroad Retirement Benefits (Beneficios del Seguro Social y beneficios equivalentes de jubilación para empleados ferroviarios), en inglés, para más información. 2010incometax forms Nota: El uso del término “beneficios” en este capítulo corresponde tanto a los beneficios del Seguro Social como a la parte del SSEB de los beneficios de jubilación de empleados ferroviarios de nivel 1. 2010incometax forms Lo que no cubre este capítulo. 2010incometax forms   Este capítulo no cubre las reglas tributarias para los siguientes beneficios de jubilación de empleados ferroviarios: Parte de los beneficios no equivalentes al Seguro Social (NSSEB, por sus siglas en inglés) de los beneficios de nivel 1. 2010incometax forms Beneficios de nivel 2. 2010incometax forms Beneficios dobles adquiridos. 2010incometax forms Beneficios suplementarios de anualidad. 2010incometax forms Para obtener información acerca de estos beneficios, consulte la Publicación 575, Pension and Annuity Income (Ingresos de pensiones y anualidades), en inglés. 2010incometax forms   Este capítulo no cubre las reglas tributarias para los beneficios del Seguro Social declarados en el Formulario SSA-1042S, Social Security Benefit Statement (Declaración de beneficios del Seguro Social), o Formulario RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board (Declaración para destinatarios extranjeros no residentes de: Pagos efectuados por la Junta de Jubilación Ferroviaria), en inglés. 2010incometax forms Para información sobre estos beneficios, vea la Publicación 519, U. 2010incometax forms S. 2010incometax forms Tax Guide for Aliens (Guía sobre los impuestos estadounidenses para extranjeros), en inglés, y la Publicación 915, en inglés. 2010incometax forms   Este capítulo tampoco cubre las reglas tributarias sobre los beneficios extranjeros del Seguro Social. 2010incometax forms Estos beneficios están sujetos a impuestos como anualidades, a menos que estén exentos de impuestos estadounidenses o sean tratados como beneficios del Seguro Social estadounidense conforme a un tratado tributario. 2010incometax forms Useful Items - You may want to see: Publicación 505 Tax Withholding and Estimated Tax (Retención del impuesto e impuesto estimado), en inglés 575 Pension and Annuity Income (Ingresos de pensiones y anualidades), en inglés 590 Individual Retirement Arrangements (IRAs) (Arreglos de ahorros para la jubilación (Arreglos IRA)), en inglés 915 Social Security and Equivalent Railroad Retirement Benefits (Beneficios del Seguro Social y beneficios equivalentes de jubilación para empleados ferroviarios), en inglés Formularios (e Instrucciones) 1040-ES Estimated Tax for Individuals (Impuesto estimado para las personas físicas), en inglés SSA-1099 Social Security Benefit Statement (Declaración de beneficios del Seguro Social), en inglés RRB-1099 Payments by the Railroad Retirement Board (Pagos efectuados por la Junta de Jubilación Ferroviaria), en inglés W-4V Voluntary Withholding Request (Solicitud de retención voluntaria), en inglés ¿Está Sujeta a Impuestos Alguna Parte de los Beneficios? Para saber si alguna parte de los beneficios puede estar sujeta a impuestos, compare la cantidad base de su estado civil para efectos de la declaración con el total de: La mitad de los beneficios, más Todos los demás ingresos, incluidos los intereses exentos de impuestos. 2010incometax forms Al hacer esta comparación, no reste de los demás ingresos ninguna de las siguientes exclusiones: Intereses sobre bonos de ahorros estadounidenses calificados; Beneficios por adopción proporcionados por el empleador; Ingresos devengados en el extranjero o vivienda en el extranjero ni Ingresos devengados por residentes bona fide de la Samoa Estadounidense o Puerto Rico. 2010incometax forms Beneficios por hijos. 2010incometax forms   Las reglas en este capítulo corresponden a beneficios recibidos por hijos. 2010incometax forms Vea A quién se le cobran impuestos , más adelante. 2010incometax forms Cómo calcular el ingreso total. 2010incometax forms   Para calcular el total de la mitad de los beneficios más otros ingresos, use la Hoja de Trabajo 11-1 que aparece más adelante en este capítulo. 2010incometax forms Si el total es mayor que la cantidad base, es posible que parte de los beneficios esté sujeta a impuestos. 2010incometax forms    Si es casado y presenta una declaración conjunta para el año 2013, usted y su cónyuge tienen que sumar sus ingresos y beneficios para calcular si alguna parte de la suma de éstos está sujeta a impuestos. 2010incometax forms Aun si su cónyuge no recibió beneficios, tiene que sumar el ingreso de su cónyuge al suyo para calcular si alguna parte de los beneficios está sujeta a impuestos. 2010incometax forms    Si el único ingreso que recibió durante el año 2013 fue del Seguro Social o la parte del SSEB de los beneficios de jubilación para empleados ferroviarios de nivel 1, los beneficios no están, por lo general, sujetos a impuestos y probablemente no tenga que presentar una declaración. 2010incometax forms Si tiene ingresos además de beneficios, tal vez tenga que presentar una declaración aun si ninguna parte de los beneficios está sujeta a impuestos. 2010incometax forms Cantidad base. 2010incometax forms   La cantidad base es: $25,000 si es soltero, cabeza de familia o viudo que reúne los requisitos; $25,000 si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013; $32,000 si es casado que presenta una declaración conjunta o $-0- si es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento durante el año 2013. 2010incometax forms Hoja de Trabajo 11-1. 2010incometax forms    Puede usar la Hoja de Trabajo 11-1 para calcular la cantidad de ingresos y compararla con la cantidad base. 2010incometax forms Ésta es una manera rápida de averiguar si alguna parte de sus beneficios está sujeta a impuestos. 2010incometax forms Hoja de Trabajo 11-1. 2010incometax forms Una Manera Rápida de Averiguar si sus Beneficios Podrían Estar Sujetos a Impuestos A. 2010incometax forms Anote la cantidad del recuadro 5 de todos los Formularios SSA-1099 y RRB-1099. 2010incometax forms Incluya la cantidad total de los pagos de beneficios en suma global recibidos en el año 2013, para el año 2013 y años anteriores. 2010incometax forms Si recibió más de un formulario, sume las cantidades del recuadro 5 y anote el total. 2010incometax forms A. 2010incometax forms   Nota: Si la cantidad de la línea A es cero o menos, deténgase aquí; ninguna parte de los beneficios está sujeta a impuestos este año. 2010incometax forms B. 2010incometax forms Anote la mitad de la cantidad de la línea A B. 2010incometax forms   C. 2010incometax forms Anote las pensiones, salarios, intereses, dividendos y otros ingresos sujetos a impuestos C. 2010incometax forms   D. 2010incometax forms Anote todos los ingresos de intereses exentos de impuestos (como intereses de bonos municipales) más toda exclusión de los ingresos (enumerados anteriormente) . 2010incometax forms D. 2010incometax forms   E. 2010incometax forms Sume las líneas B, C y D E. 2010incometax forms   Nota: Compare la cantidad de la línea E con la cantidad base correspondiente a su estado civil para efectos de la declaración. 2010incometax forms Si la cantidad de la línea E es igual o menor que la cantidad base correspondiente a su estado civil, ninguna parte de sus beneficios está sujeta a impuestos este año. 2010incometax forms Si la cantidad de la línea E es mayor que la cantidad base, alguna parte de sus beneficios podría estar sujeta a impuestos. 2010incometax forms Tiene que completar la Hoja de Trabajo 1 de la Publicación 915, en inglés (o la Social Security Benefits Worksheet (Hoja de trabajo para beneficios del Seguro Social) de las instrucciones del formulario para la declaración de impuestos que usted presenta). 2010incometax forms Si ninguna parte de los beneficios está sujeta a impuestos, pero igual tiene que presentar una declaración, vea más adelante Beneficios no sujetos a impuestos , bajo Cómo Declarar los Beneficios. 2010incometax forms Ejemplo. 2010incometax forms Usted y su cónyuge (ambos mayores de 65 años de edad) presentan una declaración conjunta para el año 2013 y ambos recibieron beneficios del Seguro Social durante el año. 2010incometax forms En enero del año 2014, usted recibió un Formulario SSA-1099 que muestra beneficios netos de $7,500 en el recuadro 5. 2010incometax forms Su cónyuge recibió un Formulario SSA-1099 que muestra beneficios netos de $3,500 en el recuadro 5. 2010incometax forms Además, usted recibió una pensión sujeta a impuestos de $22,800 e ingresos de intereses de $500. 2010incometax forms No tuvo ningún ingreso de intereses exentos de impuestos. 2010incometax forms Sus beneficios no están sujetos a impuestos para el año 2013 debido a que su ingreso, según lo calculado en la Hoja de Trabajo 11-1 completada, no es mayor que la cantidad base ($32,000) para una persona casada que presenta una declaración conjunta. 2010incometax forms Aunque ninguna cantidad de sus beneficios está sujeta a impuestos, usted tiene que presentar una declaración para el año 2013 debido a que su ingreso bruto sujeto a impuestos ($23,300) excede de la cantidad mínima requerida para la presentación de la declaración correspondiente a su estado civil para efectos de la declaración. 2010incometax forms Hoja de Trabajo 11-1 completada. 2010incometax forms Una Manera Rápida de Averiguar si sus Beneficios Podrían Estar Sujetos a Impuestos A. 2010incometax forms Anote la cantidad del recuadro 5 de todos los Formularios SSA-1099 y RRB-1099. 2010incometax forms Incluya la cantidad total de los pagos de beneficios en suma global recibidos en el año 2013, para el año 2013 y años anteriores. 2010incometax forms Si recibió más de un formulario, sume las cantidades del recuadro 5 y anote el total. 2010incometax forms A. 2010incometax forms $ 11,000 Nota: Si la cantidad de la línea A es cero o menos, deténgase aquí; ninguna parte de los beneficios está sujeta a impuestos este año. 2010incometax forms B. 2010incometax forms Anote la mitad de la cantidad de la línea A B. 2010incometax forms 5,500 C. 2010incometax forms Anote las pensiones, salarios, intereses, dividendos y otros ingresos sujetos a impuestos C. 2010incometax forms 23,300 D. 2010incometax forms Anote todos los ingresos de intereses exentos de impuestos (como intereses de bonos municipales) más toda exclusión de los ingresos (enumerados anteriormente). 2010incometax forms D. 2010incometax forms -0- E. 2010incometax forms Sume las líneas B, C y D E. 2010incometax forms $28,800 Nota: Compare la cantidad de la línea E con la cantidad base correspondiente a su estado civil para efectos de la declaración. 2010incometax forms Si la cantidad de la línea E es igual o menor que la cantidad base correspondiente a su estado civil, ninguna parte de sus beneficios está sujeta a impuestos este año. 2010incometax forms Si la cantidad de la línea E es mayor que la cantidad base, alguna parte de sus beneficios podría estar sujeta a impuestos. 2010incometax forms Tiene que completar la Hoja de Trabajo 1 de la Publicación 915, en inglés (o la Social Security Benefits Worksheet (Hoja de trabajo para beneficios del Seguro Social) de las instrucciones del formulario para la declaración de impuestos que usted presenta). 2010incometax forms Si ninguna parte de los beneficios está sujeta a impuestos, pero igual tiene que presentar una declaración, vea más adelante Beneficios no sujetos a impuestos , bajo Cómo Declarar los Beneficios. 2010incometax forms A quién se le cobran impuestos. 2010incometax forms   Los beneficios se incluyen en los ingresos sujetos a impuestos (según estén sujetos a impuestos) de la persona que tiene derecho legal a recibirlos. 2010incometax forms Por ejemplo, si usted y su hijo reciben beneficios, pero el cheque de su hijo está a nombre de usted, tiene que usar sólo la parte de los beneficios que le corresponde a usted para ver si alguna parte de los beneficios en su caso está sujeta a impuestos. 2010incometax forms La mitad de la parte correspondiente a su hijo tiene que sumarse a los demás ingresos de su hijo para saber si alguna parte de esos beneficios está sujeta a impuestos para su hijo. 2010incometax forms Reintegro de beneficios. 2010incometax forms   Todo reintegro de beneficios que usted haya hecho durante el año 2013 tiene que restarse de los beneficios brutos que recibió en el año 2013. 2010incometax forms No importa si el reintegro fue por beneficios recibidos en el año 2013 o en un año anterior. 2010incometax forms Si el reintegro fue mayor que los beneficios brutos recibidos en el año 2013, consulte Reintegros Superiores a los Beneficios Brutos , más adelante. 2010incometax forms   Los beneficios brutos aparecen en el recuadro 3 del Formulario SSA-1099 o RRB-1099. 2010incometax forms Los reintegros aparecen en el recuadro 4. 2010incometax forms La cantidad del recuadro 5 muestra los beneficios netos del año 2013 (recuadro 3 menos recuadro 4). 2010incometax forms Use la cantidad del recuadro 5 para calcular si alguna parte de sus beneficios está sujeta a impuestos. 2010incometax forms Retención de impuestos e impuesto estimado. 2010incometax forms   Puede optar por que se haga la retención del impuesto federal sobre el ingreso de sus beneficios del Seguro Social y/o de la parte del SSEB de sus beneficios de jubilación para empleados ferroviarios de nivel 1. 2010incometax forms Si opta por hacerlo, tiene que completar un Formulario W-4V. 2010incometax forms   Si opta por no hacer la retención del impuesto sobre el ingreso, tal vez tenga que solicitar la retención adicional de otros ingresos o pagar un impuesto estimado durante el año. 2010incometax forms Para más detalles, consulte la Publicación 505 o las instrucciones para el Formulario 1040-ES, ambas en inglés. 2010incometax forms Cómo Declarar los Beneficios Si parte de sus beneficios está sujeta a impuestos, tiene que usar el Formulario 1040 o el Formulario 1040A. 2010incometax forms No puede usar el Formulario 1040EZ. 2010incometax forms Cómo hacer la declaración en el Formulario 1040. 2010incometax forms   Declare los beneficios netos (la cantidad total del recuadro 5 de todos los Formularios SSA-1099 y de los Formularios RRB-1099) en la línea 20a y la parte sujeta a impuestos en la línea 20b. 2010incometax forms Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote también “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a. 2010incometax forms Cómo hacer la declaración en el Formulario 1040A. 2010incometax forms   Declare los beneficios netos (la cantidad total del recuadro 5 de todos los Formularios SSA-1099 y de los Formularios RRB-1099) en la línea 14a y la parte sujeta a impuestos en la línea 14b. 2010incometax forms Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote también “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 14a. 2010incometax forms Beneficios no sujetos a impuestos. 2010incometax forms   Si presenta el Formulario 1040EZ, no declare beneficios en su declaración de impuestos. 2010incometax forms Si presenta el Formulario 1040 o Formulario 1040A, declare sus beneficios netos (la cantidad total del recuadro 5 de todos sus Formularios SSA-1099 y Formularios RRB-1099) en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. 2010incometax forms Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. 2010incometax forms Si es casado que presenta la declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote también “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. 2010incometax forms ¿Cuánto Está Sujeto a Impuestos? Si parte de sus beneficios está sujeta a impuestos, dicha cantidad depende de la cantidad total de los beneficios y otros ingresos. 2010incometax forms Normalmente, cuanto más alta sea esa cantidad total, mayor es la parte sujeta a impuestos de los beneficios. 2010incometax forms Máxima parte sujeta a impuestos. 2010incometax forms   Por lo general, hasta el 50% de los beneficios están sujetos a impuestos. 2010incometax forms Sin embargo, hasta el 85% de los beneficios pueden estar sujetos a impuestos si en su caso se da alguna de las siguientes situaciones: El total de la mitad de los beneficios más todos los demás ingresos es mayor de $34,000 ($44,000 si es casado que presenta una declaración conjunta). 2010incometax forms Es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento durante el año 2013. 2010incometax forms Qué hoja de trabajo debe usar. 2010incometax forms   En las instrucciones del Formulario 1040 o del Formulario 1040A hay una hoja de trabajo para calcular los beneficios sujetos a impuestos. 2010incometax forms Puede usar esa hoja de trabajo o la Hoja de Trabajo 1 de la Publicación 915, en inglés, a menos que alguna de las siguientes situaciones corresponda a su caso: Hizo aportaciones a un arreglo de ahorros para la jubilación (IRA, por sus siglas en inglés) tradicional y usted o su cónyuge está cubierto por un plan de jubilación del trabajo. 2010incometax forms En esta situación, usted tiene que usar las hojas de trabajo especiales del Appendix (Apéndice) B de la Publicación 590, en inglés, para calcular la deducción por un arreglo IRA y los beneficios sujetos a impuestos. 2010incometax forms La situación (1) no le corresponde y usted declara una exclusión por intereses sobre los bonos de ahorros estadounidenses calificados (Formulario 8815), beneficios por adopción (Formulario 8839), ingresos devengados en el extranjero o vivienda en el extranjero (Formulario 2555 o Formulario 2555-EZ), o ingresos devengados en la Samoa Estadounidense (Formulario 4563) o Puerto Rico declarados por residentes bona fide. 2010incometax forms En esta situación, se tiene que usar la Hoja de Trabajo 1 de la Publicación 915, en inglés, para calcular los beneficios sujetos a impuestos. 2010incometax forms Recibió un pago de suma global por un año anterior. 2010incometax forms En esta situación, complete además la Hoja de Trabajo 2 ó 3 y la Hoja de Trabajo 4 de la Publicación 915, en inglés. 2010incometax forms Consulte Elección de suma global , tema que aparece a continuación. 2010incometax forms Elección de suma global. 2010incometax forms   Tiene que incluir la parte sujeta a impuestos de un pago de suma global (retroactivo) de beneficios recibidos en el año 2013 en los ingresos del año 2013, aun si el pago incluye beneficios de un año anterior. 2010incometax forms    Este pago global de beneficios no debe confundirse con el pago global de beneficios por fallecimiento que la SSA y la RRB pagan a muchos de sus beneficiarios. 2010incometax forms Ninguna parte del pago global de beneficios por fallecimiento está sujeta a impuestos. 2010incometax forms   Generalmente, se usa el ingreso del año 2013 para calcular la parte sujeta a impuestos del total de beneficios recibidos en el año 2013. 2010incometax forms Sin embargo, tal vez pueda calcular la parte sujeta a impuestos de un pago de suma global de un año anterior por separado, mediante el uso del ingreso del año anterior. 2010incometax forms Puede optar por este método si eso reduce los beneficios sujetos a impuestos. 2010incometax forms Cómo elegir su opción. 2010incometax forms   Si recibió un pago global de beneficios en el año 2013 que incluya beneficios de uno o más años anteriores, siga las instrucciones de la Publicación 915 bajo Lump-Sum Election (Elección de suma global) para saber si dicha elección reducirá sus beneficios sujetos a impuestos. 2010incometax forms Ese análisis también explica cómo elegir la opción que le sea de mayor beneficio. 2010incometax forms    Debido a que los beneficios sujetos a impuestos de ese año anterior se incluyen en el ingreso del año 2013, no es necesario realizar ningún ajuste en la declaración del año anterior. 2010incometax forms No presente una declaración enmendada del año anterior. 2010incometax forms Ejemplos Los siguientes son algunos ejemplos que puede usar como guía para calcular la parte sujeta a impuestos de sus beneficios. 2010incometax forms Ejemplo 1. 2010incometax forms Jorge Blanco es soltero y presenta el Formulario 1040 para el año 2013. 2010incometax forms Jorge recibió los siguientes ingresos en el año 2013: Pensión íntegramente sujeta a impuestos $18,600 Salario de trabajo a tiempo parcial 9,400 Ingreso de intereses sujeto a impuestos 990 Total $28,990 Además, Jorge recibió beneficios del Seguro Social durante el año 2013. 2010incometax forms El Formulario SSA-1099 que recibió en enero del año 2014 muestra $5,980 en el recuadro 5. 2010incometax forms Para calcular sus beneficios sujetos a impuestos, Jorge completa la hoja de trabajo que aparece aquí. 2010incometax forms Hoja de Trabajo 1 completada. 2010incometax forms Cómo Calcular los Beneficios Sujetos a Impuestos 1. 2010incometax forms Anote la cantidad total del recuadro 5 de TODOS los Formularios SSA-1099 y RRB-1099. 2010incometax forms Además, anote esta cantidad en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. 2010incometax forms $5,980 2. 2010incometax forms Anote la mitad de la línea 1. 2010incometax forms 2,990 3. 2010incometax forms Sume el total de las cantidades del:     Formulario 1040: Líneas 7, 8a, 9a, 10 a 14, 15b, 16b, 17 a 19 y 21. 2010incometax forms     Formulario 1040A: Líneas 7, 8a, 9a, 10, 11b, 12b y 13 28,990 4. 2010incometax forms Anote la cantidad, si la hubiera, de la línea 8b del Formulario 1040 o del Formulario 1040A. 2010incometax forms -0- 5. 2010incometax forms Anote el total de toda exclusión/ajuste por:     • Beneficios por adopción (línea 28 del Formulario 8839),     • Ingresos devengados en el extranjero o vivienda en el extranjero (líneas 45 y 50 del Formulario 2555 o línea 18 del Formulario 2555-EZ) y     • Ciertos ingresos de residentes bona fide de la Samoa Estadounidense (línea 15 del Formulario 4563) o de Puerto Rico . 2010incometax forms . 2010incometax forms -0- 6. 2010incometax forms Sume las líneas 2, 3, 4 y 5 31,980 7. 2010incometax forms Declarantes que presentan el Formulario 1040: Anote la cantidad de las líneas 23 a 32 del Formulario 1040 y toda cantidad que se haya anotado en la línea de puntos directamente al lado de la línea 36 del Formulario 1040. 2010incometax forms     Declarantes que presentan el Formulario 1040A: Anote la cantidad de las líneas 16 y 17 del Formulario 1040A. 2010incometax forms -0- 8. 2010incometax forms ¿Es la cantidad de la línea 7 menor que la cantidad de la línea 6?     No. 2010incometax forms Ninguna parte de los beneficios del Seguro Social está sujeta a impuestos. 2010incometax forms Anote -0- en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. 2010incometax forms   Sí. 2010incometax forms Reste la línea 7 de la línea 6 31,980 9. 2010incometax forms Si es: Casado que presenta una declaración conjunta, anote $32,000. 2010incometax forms Soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote $25,000. 2010incometax forms 25,000   Nota: Si es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento del año 2013, omita las líneas 9 a 16; multiplique la línea 8 por 85% (0. 2010incometax forms 85) y anote el resultado en la línea 17. 2010incometax forms Luego, pase a la línea 18. 2010incometax forms   10. 2010incometax forms ¿Es la cantidad de la línea 9 menor que la cantidad de la línea 8?     No. 2010incometax forms Ninguna parte de los beneficios está sujeta a impuestos. 2010incometax forms Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. 2010incometax forms Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, asegúrese de haber anotado “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a del Formulario 1040 o la línea 14a del Formulario 1040A. 2010incometax forms     Sí. 2010incometax forms Reste la línea 9 de la línea 8 6,980 11. 2010incometax forms Anote $12,000 si es casado que presenta una declaración conjunta; $9,000 si es soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013. 2010incometax forms 9,000 12. 2010incometax forms Reste la línea 11 de la línea 10. 2010incometax forms Si el resultado es cero o menos, anote “-0-”. 2010incometax forms -0- 13. 2010incometax forms De las líneas 10 y 11, anote la que sea menor 6,980 14. 2010incometax forms Anote la mitad de la línea 13. 2010incometax forms 3,490 15. 2010incometax forms De las líneas 2 y 14, anote la que sea menor 2,990 16. 2010incometax forms Multiplique la línea 12 por 85% (0. 2010incometax forms 85). 2010incometax forms Si la línea 12 es cero, anote “-0-”. 2010incometax forms -0- 17. 2010incometax forms Sume las líneas 15 y 16. 2010incometax forms 2,990 18. 2010incometax forms Multiplique la línea 1 por 85% (0. 2010incometax forms 85). 2010incometax forms 5,083 19. 2010incometax forms Beneficios sujetos a impuestos. 2010incometax forms De las líneas 17 y 18, anote la que sea menor. 2010incometax forms Además, anote esta cantidad en la línea 20b del Formulario 1040 o la línea 14b del Formulario 1040A. 2010incometax forms $2,990       La cantidad de la línea 19 de la hoja de trabajo de Jorge muestra que $2,990 de sus beneficios del Seguro Social están sujetos a impuestos. 2010incometax forms En la línea 20a de su Formulario 1040, Jorge anota sus beneficios netos de $5,980. 2010incometax forms En la línea 20b, anota beneficios sujetos a impuestos de $2,990. 2010incometax forms   Ejemplo 2. 2010incometax forms Raimundo y Alicia García presentan una declaración conjunta en el Formulario 1040A para el año 2013. 2010incometax forms Raimundo está jubilado y recibió una pensión íntegramente sujeta a impuestos de $15,500. 2010incometax forms Además, recibió beneficios del Seguro Social y su Formulario SSA-1099 para el año 2013 muestra beneficios netos de $5,600 en el recuadro 5. 2010incometax forms Alicia trabajó durante el año y tuvo un salario de $14,000. 2010incometax forms Ella efectuó un pago deducible a su arreglo IRA de $1,000. 2010incometax forms Raimundo y Alicia tienen dos cuentas de ahorros con un total de $250 de ingresos de intereses sujetos a impuestos. 2010incometax forms Ellos completan la Hoja de Trabajo 1, anotando $29,750 ($15,500 + $14,000 + $250) en la línea 3. 2010incometax forms Ellos descubren que ninguna parte de los beneficios del Seguro Social de Raimundo está sujeta a impuestos. 2010incometax forms En el Formulario 1040A, anotan $5,600 en la línea 14a y “-0-” en la línea 14b. 2010incometax forms Hoja de Trabajo 1 completada. 2010incometax forms Cómo Calcular los Beneficios Sujetos a Impuestos 1. 2010incometax forms Anote la cantidad total del recuadro 5 de TODOS los Formularios SSA-1099 y RRB-1099. 2010incometax forms Además, anote esta cantidad en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. 2010incometax forms $5,600 2. 2010incometax forms Anote la mitad de la línea 1. 2010incometax forms 2,800 3. 2010incometax forms Sume el total de las cantidades del:     Formulario 1040: Líneas 7, 8a, 9a, 10 a 14, 15b, 16b,17 a 19 y 21. 2010incometax forms     Formulario 1040A: Líneas 7, 8a, 9a, 10, 11b, 12b y 13 29,750 4. 2010incometax forms Anote la cantidad, si la hubiera, de la línea 8b del Formulario 1040 o del Formulario 1040A. 2010incometax forms -0- 5. 2010incometax forms Anote el total de toda exclusión/ajuste por:     • Beneficios por adopción (línea 28 del Formulario 8839),     • Ingresos devengados en el extranjero o vivienda en el extranjero (líneas 45 y 50 del Formulario 2555 o línea 18 del Formulario 2555-EZ) y     • Ciertos ingresos de residentes bona fide de la Samoa Estadounidense (línea 15 del Formulario 4563) o de Puerto Rico -0- 6. 2010incometax forms Sume las líneas 2, 3, 4 y 5 32,550 7. 2010incometax forms Declarantes que presentan el Formulario 1040: Anote la cantidad de las líneas 23 a 32 del Formulario 1040 y toda cantidad que se haya anotado en la línea de puntos directamente al lado de la línea 36 del Formulario 1040. 2010incometax forms     Declarantes que presentan el Formulario 1040A: Anote la cantidad de las líneas 16 y 17 del Formulario 1040A. 2010incometax forms 1,000 8. 2010incometax forms ¿Es la cantidad de la línea 7 menor que la cantidad de la línea 6?     No. 2010incometax forms Ninguna parte de los beneficios del Seguro Social está sujeta a impuestos. 2010incometax forms Anote -0- en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. 2010incometax forms   Sí. 2010incometax forms Reste la línea 7 de la línea 6 31,550 9. 2010incometax forms Si es: Casado que presenta una declaración conjunta, anote $32,000. 2010incometax forms Soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote $25,000. 2010incometax forms 32,000   Nota: Si es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento del año 2013, omita las líneas 9 a 16; multiplique la línea 8 por 85% (0. 2010incometax forms 85) y anote el resultado en la línea 17. 2010incometax forms Luego, pase a la línea 18. 2010incometax forms   10. 2010incometax forms ¿Es la cantidad de la línea 9 menor que la cantidad de la línea 8?     No. 2010incometax forms Ninguna parte de los beneficios está sujeta a impuestos. 2010incometax forms Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. 2010incometax forms Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, asegúrese de haber anotado “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a del Formulario 1040 o la línea 14a del Formulario 1040A. 2010incometax forms     Sí. 2010incometax forms Reste la línea 9 de la línea 8   11. 2010incometax forms Anote $12,000 si es casado que presenta una declaración conjunta; $9,000 si es soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013. 2010incometax forms   12. 2010incometax forms Reste la línea 11 de la línea 10. 2010incometax forms Si el resultado es cero o menos, anote “-0-”. 2010incometax forms   13. 2010incometax forms De las líneas 10 y 11, anote la que sea menor   14. 2010incometax forms Anote la mitad de la línea 13. 2010incometax forms   15. 2010incometax forms De las líneas 2 y 14, anote la que sea menor   16. 2010incometax forms Multiplique la línea 12 por 85% (0. 2010incometax forms 85). 2010incometax forms Si la línea 12 es cero, anote “-0-”. 2010incometax forms   17. 2010incometax forms Sume las líneas 15 y 16. 2010incometax forms   18. 2010incometax forms Multiplique la línea 1 por 85% (0. 2010incometax forms 85). 2010incometax forms   19. 2010incometax forms Beneficios sujetos a impuestos. 2010incometax forms De las líneas 17 y 18, anote la que sea menor. 2010incometax forms Además, anote esta cantidad en la línea 20b del Formulario 1040 o la línea 14b del Formulario 1040A. 2010incometax forms   Ejemplo 3. 2010incometax forms José y Beatriz Pérez presentan una declaración conjunta en el Formulario 1040 del año 2013. 2010incometax forms José es empleado ferroviario jubilado y en el año 2013 recibió la parte de beneficios equivalentes del Seguro Social (SSEB, por sus siglas en inglés) de los beneficios de jubilación para empleados ferroviarios de nivel 1. 2010incometax forms El Formulario RRB-1099 de José muestra $10,000 en el recuadro 5. 2010incometax forms Beatriz es funcionaria del gobierno jubilada y recibe una pensión íntegramente sujeta a impuestos de $38,000. 2010incometax forms Ellos tuvieron $2,300 de ingresos de intereses sujetos a impuestos más $200 de intereses sobre bonos de ahorros estadounidenses calificados. 2010incometax forms Los intereses sobre bonos de ahorros cumplieron las condiciones de la exclusión. 2010incometax forms Calculan sus beneficios sujetos a impuestos completando la Hoja de Trabajo 1. 2010incometax forms Ya que han recibido intereses sobre bonos de ahorros estadounidenses calificados, siguen las instrucciones en la primera parte de la hoja de trabajo y, en la línea 3 de la misma, anotan la cantidad de la línea 2 del Anexo B (Formulario 1040A o del Formulario 1040) en vez de anotar la cantidad de la línea 8a del Formulario 1040. 2010incometax forms En la línea 3 de la hoja de trabajo, anotan $40,500 ($38,000 + $2,500). 2010incometax forms Hoja de Trabajo 1 completada. 2010incometax forms Cómo Calcular los Beneficios Sujetos a Impuestos Tenga en cuenta los siguientes puntos antes de completar esta hoja de trabajo: • Si es casado que presenta una declaración por separado y no vivió con su cónyuge durante todo el año 2013, anote “D” a la derecha de la palabra “benefits” (beneficios) en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. 2010incometax forms • No utilice esta hoja de trabajo si reintegró beneficios en el año 2013 y el total de estos reintegros (el recuadro 4 de los Formularios SSA-1099 y RRB-1099) era mayor que los beneficios brutos que recibió para el año 2013 (el recuadro 3 de los Formularios SSA-1099 y RRB-1099). 2010incometax forms Ninguna parte de los beneficios está sujeta a impuestos para el año 2013. 2010incometax forms Para información adicional, vea Reintegros Superiores a los Beneficios Brutos . 2010incometax forms • Si presenta el Formulario 8815, Exclusion of Interest From Series EE and I U. 2010incometax forms S. 2010incometax forms Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de los bonos de ahorros estadounidenses calificados de las series EE e I emitidos después de 1989), no anote en la línea 3 de esta hoja de trabajo la cantidad de la línea 8a del Formulario 1040 o de la línea 3 del Formulario 1040A. 2010incometax forms En lugar de ello, anote la cantidad de la línea 2 del Anexo B del Formulario 1040A o Formulario 1040. 2010incometax forms       1. 2010incometax forms Anote la cantidad total del recuadro 5 de TODOS los Formularios SSA-1099 y RRB-1099. 2010incometax forms Además, anote esta cantidad en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. 2010incometax forms $10,000 2. 2010incometax forms Anote la mitad de la línea 1. 2010incometax forms 5,000 3. 2010incometax forms Sume el total de las cantidades del:     Formulario 1040: Líneas 7, 8a, 9a, 10 a 14, 15b, 16b, 17 a 19 y 21. 2010incometax forms     Formulario 1040A: Líneas 7, 8a, 9a, 10, 11b, 12b y 13 40,500 4. 2010incometax forms Anote la cantidad, si la hubiera, de la línea 8b del Formulario 1040 o del Formulario 1040A. 2010incometax forms -0- 5. 2010incometax forms Anote el total de toda exclusión/ajuste por:     • Beneficios por adopción (línea 28 del Formulario 8839),     • Ingresos devengados en el extranjero o vivienda en el extranjero (líneas 45 y 50 del Formulario 2555 o línea 18 del Formulario 2555-EZ) y     • Ciertos ingresos de residentes bona fide de la Samoa Estadounidense (línea 15 del Formulario 4563) o de Puerto Rico . 2010incometax forms . 2010incometax forms -0- 6. 2010incometax forms Sume las líneas 2, 3, 4 y 5 45,500 7. 2010incometax forms Declarantes que presentan el Formulario 1040: Anote la cantidad de las líneas 23 a 32 del Formulario 1040, y toda cantidad que se haya anotado en la línea de puntos directamente al lado de la línea 36 del Formulario 1040. 2010incometax forms     Declarantes que presentan el Formulario 1040A: Anote la cantidad de las líneas 16 y 17 del Formulario 1040A. 2010incometax forms -0- 8. 2010incometax forms ¿Es la cantidad de la línea 7 menor que la cantidad de la línea 6?     No. 2010incometax forms Ninguna parte de los beneficios del Seguro Social está sujeta a impuestos. 2010incometax forms Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. 2010incometax forms   Sí. 2010incometax forms Reste la línea 7 de la línea 6 45,500 9. 2010incometax forms Si es: Casado que presenta una declaración conjunta, anote $32,000. 2010incometax forms Soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote $25,000. 2010incometax forms 32,000   Nota: Si es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento del año 2013, omita las líneas 9 a 16; multiplique la línea 8 por 85% (0. 2010incometax forms 85) y anote el resultado en la línea 17. 2010incometax forms Luego, pase a la línea 18. 2010incometax forms   10. 2010incometax forms ¿Es la cantidad de la línea 9 menor que la cantidad de la línea 8?     No. 2010incometax forms Ninguna parte de los beneficios está sujeta a impuestos. 2010incometax forms Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. 2010incometax forms Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, asegúrese de haber anotado “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a del Formulario 1040 o la línea 14a del Formulario 1040A. 2010incometax forms     Sí. 2010incometax forms Reste la línea 9 de la línea 8 13,500 11. 2010incometax forms Anote $12,000 si es casado que presenta una declaración conjunta; $9,000 si es soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013. 2010incometax forms 12,000 12. 2010incometax forms Reste la línea 11 de la línea 10. 2010incometax forms Si el resultado es cero o menos, anote “-0-”. 2010incometax forms 1,500 13. 2010incometax forms De las líneas 10 y 11, anote la que sea menor 12,000 14. 2010incometax forms Anote la mitad de la línea 13. 2010incometax forms 6,000 15. 2010incometax forms De las líneas 2 y 14, anote la que sea menor 5,000 16. 2010incometax forms Multiplique la línea 12 por 85% (0. 2010incometax forms 85). 2010incometax forms Si la línea 12 es cero, anote “-0-”. 2010incometax forms 1,275 17. 2010incometax forms Sume las líneas 15 y 16. 2010incometax forms 6,275 18. 2010incometax forms Multiplique la línea 1 por 85% (0. 2010incometax forms 85). 2010incometax forms 8,500 19. 2010incometax forms Beneficios sujetos a impuestos. 2010incometax forms De las líneas 17 y 18, anote la que sea menor. 2010incometax forms Además, anote esta cantidad en la línea 20b del Formulario 1040 o la línea 14b del Formulario 1040A. 2010incometax forms $6,275 Más del 50% de los beneficios netos de José están sujetos a impuestos debido a que el ingreso de la línea 8 de la hoja de trabajo ($45,500) es mayor que $44,000. 2010incometax forms José y Beatriz anotan $10,000 en la línea 20a del Formulario 1040 y $6,275 en la línea 20b del Formulario 1040. 2010incometax forms Deducciones Relacionadas con los Beneficios Tal vez tenga derecho a deducir ciertas cantidades relacionadas con los beneficios que reciba. 2010incometax forms Pagos por incapacidad. 2010incometax forms   Tal vez haya recibido pagos por incapacidad de su empleador o de una compañía de seguros que usted incluyó como ingresos en la declaración de impuestos de algún año anterior. 2010incometax forms Si recibió un pago de suma global de la SSA o de la RRB, y tuvo que reintegrar al empleador o compañía de seguros los pagos por incapacidad, puede declarar una deducción detallada por la parte de los pagos que incluyó en los ingresos brutos de ese año anterior. 2010incometax forms Si la cantidad que reintegra es más de $3,000, tal vez pueda reclamar un crédito tributario en su lugar. 2010incometax forms Declare la deducción o crédito de la misma manera que se explica bajo Reintegros Superiores a los Beneficios Brutos , más adelante. 2010incometax forms Gastos por asuntos legales. 2010incometax forms   Normalmente se pueden deducir gastos por asuntos legales pagados, o en los que haya incurrido, para producir o cobrar ingresos sujetos a impuestos o relacionados con la determinación, el cobro o el reembolso de algún impuesto. 2010incometax forms   Los gastos por asuntos legales por el cobro de la parte sujeta a impuestos de sus beneficios son deducibles como una deducción miscelánea detallada en la línea 23 del Anexo A (Formulario 1040). 2010incometax forms Reintegros Superiores a los Beneficios Brutos En algunas situaciones, el Formulario SSA-1099 o el Formulario RRB-1099 mostrará que el total de los beneficios reintegrados (recuadro 4) es superior a los beneficios brutos (recuadro 3) recibidos. 2010incometax forms Si esto ocurre, los beneficios netos del recuadro 5 serán una cifra negativa (una cifra entre paréntesis) y ninguna parte de los beneficios estará sujeta a impuestos. 2010incometax forms No use una hoja de trabajo en este caso. 2010incometax forms Si recibe más de un formulario, una cifra negativa en el recuadro 5 de un formulario compensa una cifra positiva en el recuadro 5 de otro formulario para ese mismo año. 2010incometax forms Si tiene alguna duda acerca de esta cifra negativa, comuníquese con la oficina local de la SSA o la oficina regional de la RRB. 2010incometax forms Declaración conjunta. 2010incometax forms   Si usted y su cónyuge presentan una declaración conjunta y su Formulario SSA-1099 o RRB-1099 tiene una cifra negativa en el recuadro 5, pero la de su cónyuge no, reste la cantidad del recuadro 5 de su formulario de la cantidad del recuadro 5 del formulario de su cónyuge. 2010incometax forms Esto se hace para obtener los beneficios netos al calcular si está sujeta a impuestos la suma de sus beneficios y los de su cónyuge. 2010incometax forms Ejemplo. 2010incometax forms Juan y María presentan una declaración conjunta para el año 2013. 2010incometax forms Juan recibió el Formulario SSA-1099 que muestra $3,000 en el recuadro 5. 2010incometax forms María también recibió el Formulario SSA-1099 y la cantidad en el recuadro 5 fue ($500). 2010incometax forms Juan y María anotarán $2,500 ($3,000 menos $500) en concepto de beneficios netos al calcular si alguna parte de la suma de sus beneficios está sujeta a impuestos. 2010incometax forms Reintegro de beneficios recibidos en un año anterior. 2010incometax forms   Si la cantidad total que aparece en el recuadro 5 de todos los Formularios SSA-1099 y RRB-1099 es una cifra negativa, puede declarar una deducción detallada por la parte de esta cifra negativa que representa los beneficios que usted incluyó en el ingreso bruto de un año anterior. 2010incometax forms Deducción de $3,000 o menos. 2010incometax forms   Si esta deducción es $3,000 o menos, está sujeta al límite del 2% del ingreso bruto ajustado que corresponde a ciertas deducciones misceláneas detalladas. 2010incometax forms Reclámela en la línea 23 del Anexo A (Formulario 1040). 2010incometax forms Deducción de más de $3,000. 2010incometax forms    Si esta deducción es superior a $3,000, usted debe calcular el impuesto de dos maneras: Calcule el impuesto para el año 2013 con la deducción detallada incluida en la línea 28 del Anexo A. 2010incometax forms Calcule el impuesto para el año 2013 en los pasos siguientes: Calcule el impuesto sin la deducción detallada incluida en la línea 28 del Anexo A. 2010incometax forms Para cada año después de 1983 para el cual una parte de la cifra negativa representa un reintegro de beneficios, vuelva a calcular los beneficios sujetos a impuestos como si el total de éstos para el año hubiera sido reducido por aquella parte de la cifra negativa. 2010incometax forms Luego, vuelva a calcular el impuesto para ese año. 2010incometax forms Reste el total de las cantidades de impuestos recalculadas en el apartado (b) del total de las cantidades de impuestos reales. 2010incometax forms Reste el resultado del apartado (c) del resultado del apartado (a). 2010incometax forms Compare el impuesto calculado con los métodos (1) y (2). 2010incometax forms Su impuesto para el año 2013 es la menor de las dos cantidades. 2010incometax forms Si el método (1) genera menos impuestos, declare la deducción detallada en la línea 28 del Anexo A (Formulario 1040). 2010incometax forms Si el método (2) genera menos impuestos, tome un crédito por la cantidad del paso 2(c), indicado anteriormente, en la línea 71 del Formulario 1040. 2010incometax forms Marque el recuadro d y escriba “ I. 2010incometax forms R. 2010incometax forms C. 2010incometax forms 1341 ” en el espacio al lado de ese recuadro. 2010incometax forms Si ambos métodos generan el mismo impuesto, deduzca el reintegro de la línea 28 del Anexo A (Formulario 1040). 2010incometax forms Prev  Up  Next   Home   More Online Publications
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Understanding your CP21E Notice

As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes.

Tax publications you may find useful

How to get help

Calling the toll free number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice and audit report carefully ― these will explain why you owe money on your taxes.
  • Pay the amount owed by the date on the notice's payment coupon.
  • Make payment arrangements if you can't pay the full amount you owe.
  • Contact us if you disagree with the change(s) we made.
  • Correct the copy of your tax return that you kept for your records.

You may want to...


Answers to Common Questions

What should I do if I disagree with the changes you made?
If you've information relevant to your audit that we've not already considered and you've not already paid your bill in full, you may request an Audit Reconsideration. Refer to Publication 3598, What You Should Know About the Audit Reconsideration Process for additional information.

If you've already paid the amount due in full, you must file a formal claim using Form 1040X, Amended U.S. Individual Income Tax Return.

If you don't have additional information to provide, but you disagree with the results of your audit, you may appeal your case to the Appeals Office of the IRS. Refer to Publication 5, Your Appeal Rights and How To Prepare a Protest If You Don’t Agree for additional information.

What happens if I can't pay the full amount I owe?
You can arrange to make a payment plan with us if you can't pay the full amount you owe.

Am I charged interest on the money I owe?
If you don't full pay the amount you owe by the date on the payment coupon, interest will accrue on the unpaid balance after that date.

Will I receive a penalty if I can’t pay the full amount?
Yes, you'll receive a late payment penalty. You can contact us at the number listed on your notice if you’re unable to pay the full amount shown in your specific notice because of circumstances beyond your control. Contact us by the due date of your payment and, depending on your situation, we may be able to remove the penalty.

Can I set up a payment plan?
Yes. Call the toll-free number listed on the top right corner of your notice to discuss payment options or check out more information on payment options and how to make a payment arrangement.

There are other options, such as paying by credit card. Note: There may be a fee to pay by credit card.

What if I need to make another correction to my account?
You'll need to file Form 1040X, Amended U.S. Individual Income Tax Return.

What if I have tried to get answers and after contacting IRS several times have not been successful?
Call Taxpayer Advocate at 1-877-777-4778 or for TTY/TDD 1-800-829-4059.

The changes you have proposed are the result of actions by my spouse that I knew nothing about. Am I responsible for paying this bill?
You may qualify for innocent spouse relief. To request relief, you must file Form 8857, Request for Innocent Spouse Relief no later than 2 years after the date on which the IRS first attempted to collect the tax from you. Refer to Publication 971, Innocent Spouse Relief for additional information.

Page Last Reviewed or Updated: 26-Feb-2014

The 2010incometax Forms

2010incometax forms Publication 575 - Main Content Table of Contents General InformationPension. 2010incometax forms Annuity. 2010incometax forms Qualified employee plan. 2010incometax forms Qualified employee annuity. 2010incometax forms Designated Roth account. 2010incometax forms Tax-sheltered annuity plan. 2010incometax forms Fixed-period annuities. 2010incometax forms Annuities for a single life. 2010incometax forms Joint and survivor annuities. 2010incometax forms Variable annuities. 2010incometax forms Disability pensions. 2010incometax forms Variable Annuities Section 457 Deferred Compensation Plans Disability Pensions Insurance Premiums for Retired Public Safety Officers Railroad Retirement Benefits Withholding Tax and Estimated Tax Cost (Investment in the Contract)Foreign employment contributions while a nonresident alien. 2010incometax forms Taxation of Periodic PaymentsPeriod of participation. 2010incometax forms Fully Taxable Payments Partly Taxable Payments Taxation of Nonperiodic PaymentsFiguring the Taxable Amount Loans Treated as Distributions Transfers of Annuity Contracts Lump-Sum Distributions RolloversExceptions. 2010incometax forms No tax withheld. 2010incometax forms Partial rollovers. 2010incometax forms Frozen deposits. 2010incometax forms Reasonable period of time. 2010incometax forms 20% Mandatory withholding. 2010incometax forms How to report. 2010incometax forms How to report. 2010incometax forms Special rule for Roth IRAs and designated Roth accounts. 2010incometax forms Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and BeneficiariesGuaranteed payments. 2010incometax forms How To Get Tax HelpLow Income Taxpayer Clinics General Information Definitions. 2010incometax forms   Some of the terms used in this publication are defined in the following paragraphs. 2010incometax forms Pension. 2010incometax forms   A pension is generally a series of definitely determinable payments made to you after you retire from work. 2010incometax forms Pension payments are made regularly and are based on such factors as years of service and prior compensation. 2010incometax forms Annuity. 2010incometax forms   An annuity is a series of payments under a contract made at regular intervals over a period of more than one full year. 2010incometax forms They can be either fixed (under which you receive a definite amount) or variable (not fixed). 2010incometax forms You can buy the contract alone or with the help of your employer. 2010incometax forms Qualified employee plan. 2010incometax forms   A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries and that meets Internal Revenue Code requirements. 2010incometax forms It qualifies for special tax benefits, such as tax deferral for employer contributions and capital gain treatment or the 10-year tax option for lump-sum distributions (if participants qualify). 2010incometax forms To determine whether your plan is a qualified plan, check with your employer or the plan administrator. 2010incometax forms Qualified employee annuity. 2010incometax forms   A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. 2010incometax forms Designated Roth account. 2010incometax forms   A designated Roth account is a separate account created under a qualified Roth contribution program to which participants may elect to have part or all of their elective deferrals to a 401(k), 403(b), or 457(b) plan designated as Roth contributions. 2010incometax forms Elective deferrals that are designated as Roth contributions are included in your income. 2010incometax forms However, qualified distributions (explained later) are not included in your income. 2010incometax forms You should check with your plan administrator to determine if your plan will accept designated Roth contributions. 2010incometax forms Tax-sheltered annuity plan. 2010incometax forms   A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. 2010incometax forms Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants. 2010incometax forms Types of pensions and annuities. 2010incometax forms   Pensions and annuities include the following types. 2010incometax forms Fixed-period annuities. 2010incometax forms   You receive definite amounts at regular intervals for a specified length of time. 2010incometax forms Annuities for a single life. 2010incometax forms   You receive definite amounts at regular intervals for life. 2010incometax forms The payments end at death. 2010incometax forms Joint and survivor annuities. 2010incometax forms   The first annuitant receives a definite amount at regular intervals for life. 2010incometax forms After he or she dies, a second annuitant receives a definite amount at regular intervals for life. 2010incometax forms The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. 2010incometax forms Variable annuities. 2010incometax forms   You receive payments that may vary in amount for a specified length of time or for life. 2010incometax forms The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund. 2010incometax forms Disability pensions. 2010incometax forms   You receive disability payments because you retired on disability and have not reached minimum retirement age. 2010incometax forms More than one program. 2010incometax forms   You may receive employee plan benefits from more than one program under a single trust or plan of your employer. 2010incometax forms If you participate in more than one program, you may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. 2010incometax forms Also, you may be considered to have received more than one pension or annuity. 2010incometax forms Your former employer or the plan administrator should be able to tell you if you have more than one contract. 2010incometax forms Example. 2010incometax forms Your employer set up a noncontributory profit-sharing plan for its employees. 2010incometax forms The plan provides that the amount held in the account of each participant will be paid when that participant retires. 2010incometax forms Your employer also set up a contributory defined benefit pension plan for its employees providing for the payment of a lifetime pension to each participant after retirement. 2010incometax forms The amount of any distribution from the profit-sharing plan depends on the contributions (including allocated forfeitures) made for the participant and the earnings from those contributions. 2010incometax forms Under the pension plan, however, a formula determines the amount of the pension benefits. 2010incometax forms The amount of contributions is the amount necessary to provide that pension. 2010incometax forms Each plan is a separate program and a separate contract. 2010incometax forms If you get benefits from these plans, you must account for each separately, even though the benefits from both may be included in the same check. 2010incometax forms Distributions from a designated Roth account are treated separately from other distributions from the plan. 2010incometax forms Qualified domestic relations order (QDRO). 2010incometax forms   A QDRO is a judgment, decree, or order relating to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of a participant in a retirement plan. 2010incometax forms The QDRO must contain certain specific information, such as the name and last known mailing address of the participant and each alternate payee, and the amount or percentage of the participant's benefits to be paid to each alternate payee. 2010incometax forms A QDRO may not award an amount or form of benefit that is not available under the plan. 2010incometax forms   A spouse or former spouse who receives part of the benefits from a retirement plan under a QDRO reports the payments received as if he or she were a plan participant. 2010incometax forms The spouse or former spouse is allocated a share of the participant's cost (investment in the contract) equal to the cost times a fraction. 2010incometax forms The numerator of the fraction is the present value of the benefits payable to the spouse or former spouse. 2010incometax forms The denominator is the present value of all benefits payable to the participant. 2010incometax forms   A distribution that is paid to a child or other dependent under a QDRO is taxed to the plan participant. 2010incometax forms Variable Annuities The tax rules in this publication apply both to annuities that provide fixed payments and to annuities that provide payments that vary in amount based on investment results or other factors. 2010incometax forms For example, they apply to commercial variable annuity contracts, whether bought by an employee retirement plan for its participants or bought directly from the issuer by an individual investor. 2010incometax forms Under these contracts, the owner can generally allocate the purchase payments among several types of investment portfolios or mutual funds and the contract value is determined by the performance of those investments. 2010incometax forms The earnings are not taxed until distributed either in a withdrawal or in annuity payments. 2010incometax forms The taxable part of a distribution is treated as ordinary income. 2010incometax forms Net investment income tax. 2010incometax forms   Beginning in 2013, annuities under a nonqualified plan are included in calculating your net investment income for the net investment income tax (NIIT). 2010incometax forms For information see the Instructions for Form 8960, Net Investment Income Tax — Individuals, Estates and Trusts. 2010incometax forms For information on the tax treatment of a transfer or exchange of a variable annuity contract, see Transfers of Annuity Contracts under Taxation of Nonperiodic Payments, later. 2010incometax forms Withdrawals. 2010incometax forms   If you withdraw funds before your annuity starting date and your annuity is under a qualified retirement plan, a ratable part of the amount withdrawn is tax free. 2010incometax forms The tax-free part is based on the ratio of your cost (investment in the contract) to your account balance under the plan. 2010incometax forms   If your annuity is under a nonqualified plan (including a contract you bought directly from the issuer), the amount withdrawn is allocated first to earnings (the taxable part) and then to your cost (the tax-free part). 2010incometax forms However, if you bought your annuity contract before August 14, 1982, a different allocation applies to the investment before that date and the earnings on that investment. 2010incometax forms To the extent the amount withdrawn does not exceed that investment and earnings, it is allocated first to your cost (the tax-free part) and then to earnings (the taxable part). 2010incometax forms   If you withdraw funds (other than as an annuity) on or after your annuity starting date, the entire amount withdrawn is generally taxable. 2010incometax forms   The amount you receive in a full surrender of your annuity contract at any time is tax free to the extent of any cost that you have not previously recovered tax free. 2010incometax forms The rest is taxable. 2010incometax forms   For more information on the tax treatment of withdrawals, see Taxation of Nonperiodic Payments , later. 2010incometax forms If you withdraw funds from your annuity before you reach age 59½, also see Tax on Early Distributions under Special Additional Taxes, later. 2010incometax forms Annuity payments. 2010incometax forms   If you receive annuity payments under a variable annuity plan or contract, you recover your cost tax free under either the Simplified Method or the General Rule, as explained under Taxation of Periodic Payments , later. 2010incometax forms For a variable annuity paid under a qualified plan, you generally must use the Simplified Method. 2010incometax forms For a variable annuity paid under a nonqualified plan (including a contract you bought directly from the issuer), you must use a special computation under the General Rule. 2010incometax forms For more information, see Variable annuities in Publication 939 under Computation Under the General Rule. 2010incometax forms Death benefits. 2010incometax forms    If you receive a single-sum distribution from a variable annuity contract because of the death of the owner or annuitant, the distribution is generally taxable only to the extent it is more than the unrecovered cost of the contract. 2010incometax forms If you choose to receive an annuity, the payments are subject to tax as described above. 2010incometax forms If the contract provides a joint and survivor annuity and the primary annuitant had received annuity payments before death, you figure the tax-free part of annuity payments you receive as the survivor in the same way the primary annuitant did. 2010incometax forms See Survivors and Beneficiaries , later. 2010incometax forms Section 457 Deferred Compensation Plans If you work for a state or local government or for a tax-exempt organization, you may be able to participate in a section 457 deferred compensation plan. 2010incometax forms If your plan is an eligible plan, you are not taxed currently on pay that is deferred under the plan or on any earnings from the plan's investment of the deferred pay. 2010incometax forms You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. 2010incometax forms You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. 2010incometax forms Your 457(b) plan may have a designated Roth account option. 2010incometax forms If so, you may be able to roll over amounts to the designated Roth account or make contributions. 2010incometax forms Elective deferrals to a designated Roth account are included in your income. 2010incometax forms Qualified distributions (explained later) are not included in your income. 2010incometax forms See the Designated Roth accounts discussion under Taxation of Periodic Payments, later. 2010incometax forms This publication covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. 2010incometax forms For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525. 2010incometax forms Is your plan eligible?   To find out if your plan is an eligible plan, check with your employer. 2010incometax forms Plans that are not eligible section 457 plans include the following: Bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plans. 2010incometax forms Nonelective deferred compensation plans for nonemployees (independent contractors). 2010incometax forms Deferred compensation plans maintained by churches. 2010incometax forms Length of service award plans for bona fide volunteer firefighters and emergency medical personnel. 2010incometax forms An exception applies if the total amount paid to a volunteer exceeds $3,000 for any year of service. 2010incometax forms Disability Pensions If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. 2010incometax forms You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. 2010incometax forms Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 2010incometax forms You may be entitled to a tax credit if you were permanently and totally disabled when you retired. 2010incometax forms For information on this credit, see Publication 524. 2010incometax forms Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 2010incometax forms Report the payments on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. 2010incometax forms Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income. 2010incometax forms For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. 2010incometax forms Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. 2010incometax forms The premiums can be for coverage for you, your spouse, or dependents. 2010incometax forms The distribution must be made directly from the plan to the insurance provider. 2010incometax forms You can exclude from income the smaller of the amount of the insurance premiums or $3,000. 2010incometax forms You can only make this election for amounts that would otherwise be included in your income. 2010incometax forms The amount excluded from your income cannot be used to claim a medical expense deduction. 2010incometax forms An eligible retirement plan is a governmental plan that is: a qualified trust, a section 403(a) plan, a section 403(b) annuity, or a section 457(b) plan. 2010incometax forms If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. 2010incometax forms The amount shown in box 2a of Form 1099-R does not reflect this exclusion. 2010incometax forms Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 2010incometax forms Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2010incometax forms Enter “PSO” next to the appropriate line on which you report the taxable amount. 2010incometax forms If you are retired on disability and reporting your disability pension on line 7 of Form 1040 or Form 1040A, or line 8 of Form 1040NR, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to the applicable line. 2010incometax forms Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. 2010incometax forms These categories are treated differently for income tax purposes. 2010incometax forms The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. 2010incometax forms This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and you treat it for tax purposes like social security benefits. 2010incometax forms If you received, repaid, or had tax withheld from the SSEB portion of tier 1 benefits during 2013, you will receive Form RRB-1099, Payments by the Railroad Retirement Board (or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, if you are a nonresident alien) from the U. 2010incometax forms S. 2010incometax forms Railroad Retirement Board (RRB). 2010incometax forms For more information about the tax treatment of the SSEB portion of tier 1 benefits and Forms RRB-1099 and RRB-1042S, see Publication 915. 2010incometax forms The second category contains the rest of the tier 1 railroad retirement benefits, called the non-social security equivalent benefit (NSSEB). 2010incometax forms It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. 2010incometax forms Treat this category of benefits, shown on Form RRB-1099-R, as an amount received from a qualified employee plan. 2010incometax forms This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. 2010incometax forms (The NSSEB and tier 2 benefits, less certain repayments, are combined into one amount called the Contributory Amount Paid on Form RRB-1099-R. 2010incometax forms ) Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. 2010incometax forms See Taxation of Periodic Payments , later, for information on how to report your benefits and how to recover the employee contributions tax free. 2010incometax forms Form RRB-1099-R is used for U. 2010incometax forms S. 2010incometax forms citizens, resident aliens, and nonresident aliens. 2010incometax forms Nonresident aliens. 2010incometax forms   A nonresident alien is an individual who is not a citizen or a resident alien of the United States. 2010incometax forms Nonresident aliens are subject to mandatory U. 2010incometax forms S. 2010incometax forms tax withholding unless exempt under a tax treaty between the United States and their country of legal residency. 2010incometax forms A tax treaty exemption may reduce or eliminate tax withholding from railroad retirement benefits. 2010incometax forms See Tax withholding next for more information. 2010incometax forms   If you are a nonresident alien and your tax withholding rate changed or your country of legal residence changed during the year, you may receive more than one Form RRB-1042S or Form RRB-1099-R. 2010incometax forms To determine your total benefits paid or repaid and total tax withheld for the year, you should add the amounts shown on all forms you received for that year. 2010incometax forms For information on filing requirements for aliens, see Publication 519, U. 2010incometax forms S. 2010incometax forms Tax Guide for Aliens. 2010incometax forms For information on tax treaties between the United States and other countries that may reduce or eliminate U. 2010incometax forms S. 2010incometax forms tax on your benefits, see Publication 901, U. 2010incometax forms S. 2010incometax forms Tax Treaties. 2010incometax forms Tax withholding. 2010incometax forms   To request or change your income tax withholding from SSEB payments, U. 2010incometax forms S. 2010incometax forms citizens should contact the IRS for Form W-4V, Voluntary Withholding Request, and file it with the RRB. 2010incometax forms To elect, revoke, or change your income tax withholding from NSSEB, tier 2, VDB, and supplemental annuity payments received, use Form RRB W-4P, Withholding Certificate for Railroad Retirement Payments. 2010incometax forms If you are a nonresident alien or a U. 2010incometax forms S. 2010incometax forms citizen living abroad, you should provide Form RRB-1001, Nonresident Questionnaire, to the RRB to furnish citizenship and residency information and to claim any treaty exemption from U. 2010incometax forms S. 2010incometax forms tax withholding. 2010incometax forms Nonresident U. 2010incometax forms S. 2010incometax forms citizens cannot elect to be exempt from withholding on payments delivered outside of the U. 2010incometax forms S. 2010incometax forms Help from the RRB. 2010incometax forms   To request an RRB form or to get help with questions about an RRB benefit, you should contact your nearest RRB field office if you reside in the United States (call 1-877-772-5772 for the nearest field office) or U. 2010incometax forms S. 2010incometax forms consulate/Embassy if you reside outside the United States. 2010incometax forms You can visit the RRB on the Internet at www. 2010incometax forms rrb. 2010incometax forms gov. 2010incometax forms Form RRB-1099-R. 2010incometax forms   The following discussion explains the items shown on Form RRB-1099-R. 2010incometax forms The amounts shown on this form are before any deduction for: Federal income tax withholding, Medicare premiums, Legal process garnishment payments, Recovery of a prior year overpayment of an NSSEB, tier 2 benefit, VDB, or supplemental annuity benefit, or Recovery of Railroad Unemployment Insurance Act benefits received while awaiting payment of your railroad retirement annuity. 2010incometax forms   The amounts shown on this form are after any offset for: Social Security benefits, Age reduction, Public Service pensions or public disability benefits, Dual railroad retirement entitlement under another RRB claim number, Work deductions, Legal process partition deductions, Actuarial adjustment, Annuity waiver, or Recovery of a current-year overpayment of NSSEB, tier 2, VDB, or supplemental annuity benefits. 2010incometax forms   The amounts shown on Form RRB-1099-R do not reflect any special rules, such as capital gain treatment or the special 10-year tax option for lump-sum payments, or tax-free rollovers. 2010incometax forms To determine if any of these rules apply to your benefits, see the discussions about them later. 2010incometax forms   Generally, amounts shown on your Form RRB-1099-R are considered a normal distribution. 2010incometax forms Use distribution code “7” if you are asked for a distribution code. 2010incometax forms Distribution codes are not shown on Form RRB-1099-R. 2010incometax forms   There are three copies of this form. 2010incometax forms Copy B is to be included with your income tax return if federal income tax is withheld. 2010incometax forms Copy C is for your own records. 2010incometax forms Copy 2 is filed with your state, city, or local income tax return, when required. 2010incometax forms See the illustrated Copy B (Form RRB-1099-R) above. 2010incometax forms       Each beneficiary will receive his or her own Form RRB-1099-R. 2010incometax forms If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099-R. 2010incometax forms So that you get your form timely, make sure the RRB always has your current mailing address. 2010incometax forms Please click here for the text description of the image. 2010incometax forms Form RRB-1099-R Box 1—Claim Number and Payee Code. 2010incometax forms   Your claim number is a six- or nine-digit number preceded by an alphabetical prefix. 2010incometax forms This is the number under which the RRB paid your benefits. 2010incometax forms Your payee code follows your claim number and is the last number in this box. 2010incometax forms It is used by the RRB to identify you under your claim number. 2010incometax forms In all your correspondence with the RRB, be sure to use the claim number and payee code shown in this box. 2010incometax forms Box 2—Recipient's Identification Number. 2010incometax forms   This is the recipient's U. 2010incometax forms S. 2010incometax forms taxpayer identification number. 2010incometax forms It is the social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient. 2010incometax forms If you are a resident or nonresident alien who must furnish a taxpayer identification number to the IRS and are not eligible to obtain an SSN, use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN. 2010incometax forms The Instructions for Form W-7 explain how and when to apply. 2010incometax forms Box 3—Employee Contributions. 2010incometax forms   This is the amount of taxes withheld from the railroad employee's earnings that exceeds the amount of taxes that would have been withheld had the earnings been covered under the social security system. 2010incometax forms This amount is the employee's cost that you use to figure the tax-free part of the NSSEB and tier 2 benefit you received (the amount shown in box 4). 2010incometax forms (For information on how to figure the tax-free part, see Partly Taxable Payments under Taxation of Periodic Payments, later. 2010incometax forms ) The amount shown is the total employee contribution amount, not reduced by any amounts that the RRB calculated as previously recovered. 2010incometax forms It is the latest amount reported for 2013 and may have increased or decreased from a previous Form RRB-1099-R. 2010incometax forms If this amount has changed, the change is retroactive. 2010incometax forms You may need to refigure the tax-free part of your NSSEB/tier 2 benefit for 2013 and prior tax years. 2010incometax forms If this box is blank, it means that the amount of your NSSEB and tier 2 payments shown in box 4 is fully taxable. 2010incometax forms    If you had a previous annuity entitlement that ended and you are figuring the tax-free part of your NSSEB/tier 2 benefit for your current annuity entitlement, you should contact the RRB for confirmation of your correct employee contribution amount. 2010incometax forms Box 4—Contributory Amount Paid. 2010incometax forms   This is the gross amount of the NSSEB and tier 2 benefit you received in 2013, less any 2013 benefits you repaid in 2013. 2010incometax forms (Any benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. 2010incometax forms ) This amount is the total contributory pension paid in 2013. 2010incometax forms It may be partly taxable and partly tax free or fully taxable. 2010incometax forms If you determine you are eligible to compute a tax-free part as explained later in Partly Taxable Payments under Taxation of Periodic Payments, use the latest reported employee contribution amount shown in box 3 as the cost. 2010incometax forms Box 5—Vested Dual Benefit. 2010incometax forms   This is the gross amount of vested dual benefit (VDB) payments paid in 2013, less any 2013 VDB payments you repaid in 2013. 2010incometax forms It is fully taxable. 2010incometax forms VDB payments you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. 2010incometax forms Note. 2010incometax forms The amounts shown in boxes 4 and 5 may represent payments for 2013 and/or other years after 1983. 2010incometax forms Box 6—Supplemental Annuity. 2010incometax forms   This is the gross amount of supplemental annuity benefits paid in 2013, less any 2013 supplemental annuity benefits you repaid in 2013. 2010incometax forms It is fully taxable. 2010incometax forms Supplemental annuity benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. 2010incometax forms Box 7—Total Gross Paid. 2010incometax forms   This is the sum of boxes 4, 5, and 6. 2010incometax forms The amount represents the total pension paid in 2013. 2010incometax forms Include this amount on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 2010incometax forms Box 8—Repayments. 2010incometax forms   This amount represents any NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit you repaid to the RRB in 2013 for years before 2013 or for unknown years. 2010incometax forms The amount shown in this box has not been deducted from the amounts shown in boxes 4, 5, and 6. 2010incometax forms It only includes repayments of benefits that were taxable to you. 2010incometax forms This means it only includes repayments in 2013 of NSSEB benefits paid after 1985, tier 2 and VDB benefits paid after 1983, and supplemental annuity benefits paid in any year. 2010incometax forms If you included the benefits in your income in the year you received them, you may be able to deduct the repaid amount. 2010incometax forms For more information about repayments, see Repayment of benefits received in an earlier year , later. 2010incometax forms    You may have repaid an overpayment of benefits by returning a payment, by making a payment, or by having an amount withheld from your railroad retirement annuity payment. 2010incometax forms Box 9—Federal Income Tax Withheld. 2010incometax forms   This is the total federal income tax withheld from your NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit. 2010incometax forms Include this on your income tax return as tax withheld. 2010incometax forms If you are a nonresident alien and your tax withholding rate and/or country of legal residence changed during 2013, you will receive more than one Form RRB-1099-R for 2013. 2010incometax forms Determine the total amount of U. 2010incometax forms S. 2010incometax forms federal income tax withheld from your 2013 RRB NSSEB, tier 2, VDB, and supplemental annuity payments by adding the amounts in box 9 of all original 2013 Forms RRB-1099-R, or the latest corrected or duplicate Forms RRB-1099-R you receive. 2010incometax forms Box 10—Rate of Tax. 2010incometax forms   If you are taxed as a U. 2010incometax forms S. 2010incometax forms citizen or resident alien, this box does not apply to you. 2010incometax forms If you are a nonresident alien, an entry in this box indicates the rate at which tax was withheld on the NSSEB, tier 2, VDB, and supplemental annuity payments that were paid to you in 2013. 2010incometax forms If you are a nonresident alien whose tax was withheld at more than one rate during 2013, you will receive a separate Form RRB-1099-R for each rate change during 2013. 2010incometax forms Box 11—Country. 2010incometax forms   If you are taxed as a U. 2010incometax forms S. 2010incometax forms citizen or resident alien, this box does not apply to you. 2010incometax forms If you are a nonresident alien, an entry in this box indicates the country of which you were a resident for tax purposes at the time you received railroad retirement payments in 2013. 2010incometax forms If you are a nonresident alien who was a resident of more than one country during 2013, you will receive a separate Form RRB-1099-R for each country of residence during 2013. 2010incometax forms Box 12—Medicare Premium Total. 2010incometax forms   This is for information purposes only. 2010incometax forms The amount shown in this box represents the total amount of Part B Medicare premiums deducted from your railroad retirement annuity payments in 2013. 2010incometax forms Medicare premium refunds are not included in the Medicare total. 2010incometax forms The Medicare total is normally shown on Form RRB-1099 (if you are a citizen or resident alien of the United States) or Form RRB-1042S (if you are a nonresident alien). 2010incometax forms However, if Form RRB-1099 or Form RRB-1042S is not required for 2013, then this total will be shown on Form RRB-1099-R. 2010incometax forms If your Medicare premiums were deducted from your social security benefits, paid by a third party, refunded to you, and/or you paid the premiums by direct billing, your Medicare total will not be shown in this box. 2010incometax forms Repayment of benefits received in an earlier year. 2010incometax forms   If you had to repay any railroad retirement benefits that you had included in your income in an earlier year because at that time you thought you had an unrestricted right to it, you can deduct the amount you repaid in the year in which you repaid it. 2010incometax forms   If you repaid $3,000 or less in 2013, deduct it on Schedule A (Form 1040), line 23. 2010incometax forms The 2%-of-adjusted-gross-income limit applies to this deduction. 2010incometax forms You cannot take this deduction if you file Form 1040A. 2010incometax forms    If you repaid more than $3,000 in 2013, you can either take a deduction for the amount repaid on Schedule A (Form 1040), line 28 or you can take a credit against your tax. 2010incometax forms For more information, see Repayments in Publication 525. 2010incometax forms Withholding Tax and Estimated Tax Your retirement plan distributions are subject to federal income tax withholding. 2010incometax forms However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. 2010incometax forms (These are distributions, described later under Rollovers, that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. 2010incometax forms ) If you choose not to have tax withheld or if you do not have enough tax withheld, you may have to make estimated tax payments. 2010incometax forms See Estimated tax , later. 2010incometax forms The withholding rules apply to the taxable part of payments you receive from: An employer pension, annuity, profit-sharing, or stock bonus plan, Any other deferred compensation plan, A traditional individual retirement arrangement (IRA), or A commercial annuity. 2010incometax forms For this purpose, a commercial annuity means an annuity, endowment, or life insurance contract issued by an insurance company. 2010incometax forms There will be no withholding on any part of a distribution where it is reasonable to believe that it will not be includible in gross income. 2010incometax forms Choosing no withholding. 2010incometax forms   You can choose not to have income tax withheld from retirement plan payments unless they are eligible rollover distributions. 2010incometax forms You can make this choice on Form W-4P for periodic and nonperiodic payments. 2010incometax forms This choice generally remains in effect until you revoke it. 2010incometax forms   The payer will ignore your choice not to have tax withheld if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer, before the payment is made, that you gave an incorrect social security number. 2010incometax forms   To choose not to have tax withheld, a U. 2010incometax forms S. 2010incometax forms citizen or resident alien must give the payer a home address in the United States or its possessions. 2010incometax forms Without that address, the payer must withhold tax. 2010incometax forms For example, the payer has to withhold tax if the recipient has provided a U. 2010incometax forms S. 2010incometax forms address for a nominee, trustee, or agent to whom the benefits are delivered, but has not provided his or her own U. 2010incometax forms S. 2010incometax forms home address. 2010incometax forms   If you do not give the payer a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to the payer that you are not a U. 2010incometax forms S. 2010incometax forms citizen, a U. 2010incometax forms S. 2010incometax forms resident alien, or someone who left the country to avoid tax. 2010incometax forms But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. 2010incometax forms This 30% rate will not apply if you are exempt or subject to a reduced rate by treaty. 2010incometax forms For details, get Publication 519. 2010incometax forms Periodic payments. 2010incometax forms   Unless you choose no withholding, your annuity or similar periodic payments (other than eligible rollover distributions) will be treated like wages for withholding purposes. 2010incometax forms Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). 2010incometax forms You should give the payer a completed withholding certificate (Form W-4P or a similar form provided by the payer). 2010incometax forms If you do not, tax will be withheld as if you were married and claiming three withholding allowances. 2010incometax forms   Tax will be withheld as if you were single and were claiming no withholding allowances if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer (before any payment is made) that you gave an incorrect social security number. 2010incometax forms   You must file a new withholding certificate to change the amount of withholding. 2010incometax forms Nonperiodic distributions. 2010incometax forms    Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that is not an eligible rollover distribution is 10% of the distribution. 2010incometax forms You can also ask the payer to withhold an additional amount using Form W-4P. 2010incometax forms The part of any loan treated as a distribution (except an offset amount to repay the loan), explained later, is subject to withholding under this rule. 2010incometax forms Eligible rollover distribution. 2010incometax forms    If you receive an eligible rollover distribution, 20% of it generally will be withheld for income tax. 2010incometax forms You cannot choose not to have tax withheld from an eligible rollover distribution. 2010incometax forms However, tax will not be withheld if you have the plan administrator pay the eligible rollover distribution directly to another qualified plan or an IRA in a direct rollover. 2010incometax forms For more information about eligible rollover distributions, see Rollovers , later. 2010incometax forms Estimated tax. 2010incometax forms   Your estimated tax is the total of your expected income tax, self-employment tax, and certain other taxes for the year, minus your expected credits and withheld tax. 2010incometax forms Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 return, or 100% of the tax shown on your 2013 return. 2010incometax forms If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. 2010incometax forms For more information, get Publication 505, Tax Withholding and Estimated Tax. 2010incometax forms In figuring your withholding or estimated tax, remember that a part of your monthly social security or equivalent tier 1 railroad retirement benefits may be taxable. 2010incometax forms See Publication 915. 2010incometax forms You can choose to have income tax withheld from those benefits. 2010incometax forms Use Form W-4V to make this choice. 2010incometax forms Cost (Investment in the Contract) Distributions from your pension or annuity plan may include amounts treated as a recovery of your cost (investment in the contract). 2010incometax forms If any part of a distribution is treated as a recovery of your cost under the rules explained in this publication, that part is tax free. 2010incometax forms Therefore, the first step in figuring how much of a distribution is taxable is to determine the cost of your pension or annuity. 2010incometax forms In general, your cost is your net investment in the contract as of the annuity starting date (or the date of the distribution, if earlier). 2010incometax forms To find this amount, you must first figure the total premiums, contributions, or other amounts you paid. 2010incometax forms This includes the amounts your employer contributed that were taxable to you when paid. 2010incometax forms (However, see Foreign employment contributions , later. 2010incometax forms ) It does not include amounts withheld from your pay on a tax-deferred basis (money that was taken out of your gross pay before taxes were deducted). 2010incometax forms It also does not include amounts you contributed for health and accident benefits (including any additional premiums paid for double indemnity or disability benefits). 2010incometax forms From this total cost you must subtract the following amounts. 2010incometax forms Any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income and that you received by the later of the annuity starting date or the date on which you received your first payment. 2010incometax forms Any other tax-free amounts you received under the contract or plan by the later of the dates in (1). 2010incometax forms If you must use the Simplified Method for your annuity payments, the tax-free part of any single-sum payment received in connection with the start of the annuity payments, regardless of when you received it. 2010incometax forms (See Simplified Method , later, for information on its required use. 2010incometax forms ) If you use the General Rule for your annuity payments, the value of the refund feature in your annuity contract. 2010incometax forms (See General Rule , later, for information on its use. 2010incometax forms ) Your annuity contract has a refund feature if the annuity payments are for your life (or the lives of you and your survivor) and payments in the nature of a refund of the annuity's cost will be made to your beneficiary or estate if all annuitants die before a stated amount or a stated number of payments are made. 2010incometax forms For more information, see Publication 939. 2010incometax forms The tax treatment of the items described in (1) through (3) is discussed later under Taxation of Nonperiodic Payments . 2010incometax forms Form 1099-R. 2010incometax forms If you began receiving periodic payments of a life annuity in 2013, the payer should show your total contributions to the plan in box 9b of your 2013 Form 1099-R. 2010incometax forms Annuity starting date defined. 2010incometax forms   Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed. 2010incometax forms Example. 2010incometax forms On January 1, you completed all your payments required under an annuity contract providing for monthly payments starting on August 1 for the period beginning July 1. 2010incometax forms The annuity starting date is July 1. 2010incometax forms This is the date you use in figuring the cost of the contract and selecting the appropriate number from Table 1 for line 3 of the Simplified Method Worksheet. 2010incometax forms Designated Roth accounts. 2010incometax forms   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. 2010incometax forms Your cost will also include any in-plan Roth rollovers you included in income. 2010incometax forms Foreign employment contributions. 2010incometax forms   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. 2010incometax forms The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (not including the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) but only if the contributions would be excludible from your gross income had they been paid directly to you. 2010incometax forms Foreign employment contributions while a nonresident alien. 2010incometax forms   In determining your cost, special rules apply if you are a U. 2010incometax forms S. 2010incometax forms citizen or resident alien who received distributions in 2013 from a plan to which contributions were made while you were a nonresident alien. 2010incometax forms Your contributions and your employer's contributions are not included in your cost if the contribution: Was made based on compensation which was for services performed outside the United States while you were a nonresident alien, and Was not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if paid as cash compensation when the services were performed. 2010incometax forms Taxation of Periodic Payments This section explains how the periodic payments you receive from a pension or annuity plan are taxed. 2010incometax forms Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). 2010incometax forms These payments are also known as amounts received as an annuity. 2010incometax forms If you receive an amount from your plan that is not a periodic payment, see Taxation of Nonperiodic Payments , later. 2010incometax forms In general, you can recover the cost of your pension or annuity tax free over the period you are to receive the payments. 2010incometax forms The amount of each payment that is more than the part that represents your cost is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). 2010incometax forms Designated Roth accounts. 2010incometax forms   If you receive a qualified distribution from a designated Roth account, the distribution is not included in your gross income. 2010incometax forms This applies to both your cost in the account and income earned on that account. 2010incometax forms A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. 2010incometax forms   If the distribution is not a qualified distribution, the rules discussed in this section apply. 2010incometax forms The designated Roth account is treated as a separate contract. 2010incometax forms Period of participation. 2010incometax forms   The 5-tax-year period of participation is the 5-tax-year period beginning with the first tax year for which the participant made a designated Roth contribution to the plan. 2010incometax forms Therefore, for designated Roth contributions made for 2013, the first year for which a qualified distribution can be made is 2018. 2010incometax forms   However, if a direct rollover is made to the plan from a designated Roth account under another plan, the 5-tax-year period for the recipient plan begins with the first tax year for which the participant first had designated Roth contributions made to the other plan. 2010incometax forms   Your 401(k), 403(b), or 457(b) plan may permit you to roll over amounts from those plans to a designated Roth account within the same plan. 2010incometax forms This is known as an in-plan Roth rollover. 2010incometax forms For more details, see In-plan Roth rollovers , later. 2010incometax forms Fully Taxable Payments The pension or annuity payments that you receive are fully taxable if you have no cost in the contract because any of the following situations applies to you (however, see Insurance Premiums for Retired Public Safety Officers , earlier). 2010incometax forms You did not pay anything or are not considered to have paid anything for your pension or annuity. 2010incometax forms Amounts withheld from your pay on a tax-deferred basis are not considered part of the cost of the pension or annuity payment. 2010incometax forms Your employer did not withhold contributions from your salary. 2010incometax forms You got back all of your contributions tax free in prior years (however, see Exclusion not limited to cost under Partly Taxable Payments, later). 2010incometax forms Report the total amount you got on Form 1040, line 16b; Form 1040A, line 12b; or on Form 1040NR, line 17b. 2010incometax forms You should make no entry on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 2010incometax forms Deductible voluntary employee contributions. 2010incometax forms   Distributions you receive that are based on your accumulated deductible voluntary employee contributions are generally fully taxable in the year distributed to you. 2010incometax forms Accumulated deductible voluntary employee contributions include net earnings on the contributions. 2010incometax forms If distributed as part of a lump sum, they do not qualify for the 10-year tax option or capital gain treatment, explained later. 2010incometax forms Partly Taxable Payments If you have a cost to recover from your pension or annuity plan (see Cost (Investment in the Contract) , earlier), you can exclude part of each annuity payment from income as a recovery of your cost. 2010incometax forms This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. 2010incometax forms The rest of each payment is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). 2010incometax forms You figure the tax-free part of the payment using one of the following methods. 2010incometax forms Simplified Method. 2010incometax forms You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). 2010incometax forms You cannot use this method if your annuity is paid under a nonqualified plan. 2010incometax forms General Rule. 2010incometax forms You must use this method if your annuity is paid under a nonqualified plan. 2010incometax forms You generally cannot use this method if your annuity is paid under a qualified plan. 2010incometax forms You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. 2010incometax forms If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. 2010incometax forms Qualified plan annuity starting before November 19, 1996. 2010incometax forms   If your annuity is paid under a qualified plan and your annuity starting date (defined earlier under Cost (Investment in the Contract) ) is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the Simplified Method or the General Rule. 2010incometax forms If your annuity starting date is before July 2, 1986, you use the General Rule unless your annuity qualified for the Three-Year Rule. 2010incometax forms If you used the Three-Year Rule (which was repealed for annuities starting after July 1, 1986), your annuity payments are generally now fully taxable. 2010incometax forms Exclusion limit. 2010incometax forms   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. 2010incometax forms Once your annuity starting date is determined, it does not change. 2010incometax forms If you calculate the taxable portion of your annuity payments using the simplified method worksheet, the annuity starting date determines the recovery period for your cost. 2010incometax forms That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. 2010incometax forms Exclusion limited to cost. 2010incometax forms   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost cannot exceed your total cost. 2010incometax forms Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. 2010incometax forms This deduction is not subject to the 2%-of-adjusted-gross-income limit. 2010incometax forms Example 1. 2010incometax forms Your annuity starting date is after 1986, and you exclude $100 a month ($1,200 a year) under the Simplified Method. 2010incometax forms The total cost of your annuity is $12,000. 2010incometax forms Your exclusion ends when you have recovered your cost tax free, that is, after 10 years (120 months). 2010incometax forms After that, your annuity payments are generally fully taxable. 2010incometax forms Example 2. 2010incometax forms The facts are the same as in Example 1, except you die (with no surviving annuitant) after the eighth year of retirement. 2010incometax forms You have recovered tax free only $9,600 (8 × $1,200) of your cost. 2010incometax forms An itemized deduction for your unrecovered cost of $2,400 ($12,000 – $9,600) can be taken on your final return. 2010incometax forms Exclusion not limited to cost. 2010incometax forms   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. 2010incometax forms If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. 2010incometax forms The total exclusion may be more than your cost. 2010incometax forms Simplified Method Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. 2010incometax forms For an annuity that is payable for the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. 2010incometax forms For any other annuity, this number is the number of monthly annuity payments under the contract. 2010incometax forms Who must use the Simplified Method. 2010incometax forms   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions. 2010incometax forms You receive your pension or annuity payments from any of the following plans. 2010incometax forms A qualified employee plan. 2010incometax forms A qualified employee annuity. 2010incometax forms A tax-sheltered annuity plan (403(b) plan). 2010incometax forms On your annuity starting date, at least one of the following conditions applies to you. 2010incometax forms You are under age 75. 2010incometax forms You are entitled to less than 5 years of guaranteed payments. 2010incometax forms Guaranteed payments. 2010incometax forms   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. 2010incometax forms If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. 2010incometax forms Annuity starting before November 19, 1996. 2010incometax forms   If your annuity starting date is after July 1, 1986, and before November 19, 1996, and you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. 2010incometax forms You could have chosen to use the Simplified Method if your annuity is payable for your life (or the lives of you and your survivor annuitant) and you met both of the conditions listed earlier under Who must use the Simplified Method . 2010incometax forms Who cannot use the Simplified Method. 2010incometax forms   You cannot use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. 2010incometax forms See General Rule , later. 2010incometax forms How to use the Simplified Method. 2010incometax forms    Complete Worksheet A in the back of this publication to figure your taxable annuity for 2013. 2010incometax forms Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. 2010incometax forms   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. 2010incometax forms How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. 2010incometax forms For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. 2010incometax forms    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. 2010incometax forms Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. 2010incometax forms Single-life annuity. 2010incometax forms   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010incometax forms Enter on line 3 the number shown for your age on your annuity starting date. 2010incometax forms This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2010incometax forms Multiple-lives annuity. 2010incometax forms   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010incometax forms Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. 2010incometax forms For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. 2010incometax forms For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. 2010incometax forms Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. 2010incometax forms   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. 2010incometax forms Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. 2010incometax forms This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2010incometax forms Fixed-period annuity. 2010incometax forms   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. 2010incometax forms Line 6. 2010incometax forms   The amount on line 6 should include all amounts that could have been recovered in prior years. 2010incometax forms If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. 2010incometax forms Example. 2010incometax forms Bill Smith, age 65, began receiving retirement benefits in 2013 under a joint and survivor annuity. 2010incometax forms Bill's annuity starting date is January 1, 2013. 2010incometax forms The benefits are to be paid for the joint lives of Bill and his wife, Kathy, age 65. 2010incometax forms Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. 2010incometax forms Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. 2010incometax forms Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. 2010incometax forms Because his annuity is payable over the lives of more than one annuitant, he uses his and Kathy's combined ages and Table 2 at the bottom of Worksheet A in completing line 3 of the worksheet. 2010incometax forms His completed worksheet is shown later. 2010incometax forms Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. 2010incometax forms Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. 2010incometax forms The full amount of any annuity payments received after 310 payments are paid must be included in gross income. 2010incometax forms If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. 2010incometax forms This deduction is not subject to the 2%-of-adjusted-gross-income limit. 2010incometax forms Worksheet A. 2010incometax forms Simplified Method Worksheet for Bill Smith 1. 2010incometax forms Enter the total pension or annuity payments received this year. 2010incometax forms Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 2010incometax forms $14,400 2. 2010incometax forms Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. 2010incometax forms * See Cost (Investment in the Contract) , earlier 2. 2010incometax forms 31,000   Note. 2010incometax forms If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 2010incometax forms Otherwise, go to line 3. 2010incometax forms     3. 2010incometax forms Enter the appropriate number from Table 1 below. 2010incometax forms But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. 2010incometax forms 310 4. 2010incometax forms Divide line 2 by the number on line 3 4. 2010incometax forms 100 5. 2010incometax forms Multiply line 4 by the number of months for which this year's payments were made. 2010incometax forms If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2010incometax forms Otherwise, go to line 6 5. 2010incometax forms 1,200 6. 2010incometax forms Enter any amount previously recovered tax free in years after 1986. 2010incometax forms This is the amount shown on line 10 of your worksheet for last year 6. 2010incometax forms -0- 7. 2010incometax forms Subtract line 6 from line 2 7. 2010incometax forms 31,000 8. 2010incometax forms Enter the smaller of line 5 or line 7 8. 2010incometax forms 1,200 9. 2010incometax forms Taxable amount for year. 2010incometax forms Subtract line 8 from line 1. 2010incometax forms Enter the result, but not less than zero. 2010incometax forms Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2010incometax forms Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 2010incometax forms If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. 2010incometax forms $13,200 10. 2010incometax forms Was your annuity starting date before 1987? □ Yes. 2010incometax forms STOP. 2010incometax forms Do not complete the rest of this worksheet. 2010incometax forms  ☑ No. 2010incometax forms Add lines 6 and 8. 2010incometax forms This is the amount you have recovered tax free through 2013. 2010incometax forms You will need this number if you need to fill out this worksheet next year 10. 2010incometax forms 1,200 11. 2010incometax forms Balance of cost to be recovered. 2010incometax forms Subtract line 10 from line 2. 2010incometax forms If zero, you will not have to complete this worksheet next year. 2010incometax forms The payments you receive next year will generally be fully taxable 11. 2010incometax forms $29,800         * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 2010incometax forms           Table 1 for Line 3 Above       AND your annuity starting date was—     IF the age at annuity starting date was. 2010incometax forms . 2010incometax forms . 2010incometax forms BEFORE November 19, 1996, enter on line 3. 2010incometax forms . 2010incometax forms . 2010incometax forms AFTER November 18, 1996, enter on line 3. 2010incometax forms . 2010incometax forms . 2010incometax forms     55 or under 300 360     56-60 260 310     61-65 240 260     66-70 170 210     71 or older 120 160     Table 2 for Line 3 Above     IF the combined ages at  annuity starting date were. 2010incometax forms . 2010incometax forms . 2010incometax forms THEN enter on line 3. 2010incometax forms . 2010incometax forms . 2010incometax forms     110 or under   410     111-120   360     121-130   310     131-140   260     141 or older   210   Multiple annuitants. 2010incometax forms   If you and one or more other annuitants receive payments at the same time, you exclude from each annuity payment a pro rata share of the monthly tax-free amount. 2010incometax forms Figure your share by taking the following steps. 2010incometax forms Complete your worksheet through line 4 to figure the monthly tax-free amount. 2010incometax forms Divide the amount of your monthly payment by the total amount of the monthly payments to all annuitants. 2010incometax forms Multiply the amount on line 4 of your worksheet by the amount figured in (2) above. 2010incometax forms The result is your share of the monthly tax-free amount. 2010incometax forms   Replace the amount on line 4 of the worksheet with the result in (3) above. 2010incometax forms Enter that amount on line 4 of your worksheet each year. 2010incometax forms General Rule Under the General Rule, you determine the tax-free part of each annuity payment based on the ratio of the cost of the contract to the total expected return. 2010incometax forms Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. 2010incometax forms To figure it, you must use life expectancy (actuarial) tables prescribed by the IRS. 2010incometax forms Who must use the General Rule. 2010incometax forms   You must use the General Rule if you receive pension or annuity payments from: A nonqualified plan (such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan), or A qualified plan if you are age 75 or older on your annuity starting date and your annuity payments are guaranteed for at least 5 years. 2010incometax forms Annuity starting before November 19, 1996. 2010incometax forms   If your annuity starting date is after July 1, 1986, and before November 19, 1996, you had to use the General Rule for either circumstance just described. 2010incometax forms You also had to use it for any fixed-period annuity. 2010incometax forms If you did not have to use the General Rule, you could have chosen to use it. 2010incometax forms If your annuity starting date is before July 2, 1986, you had to use the General Rule unless you could use the Three-Year Rule. 2010incometax forms   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. 2010incometax forms Who cannot use the General Rule. 2010incometax forms   You cannot use the General Rule if you receive your pension or annuity from a qualified plan and none of the circumstances described in the preceding discussions apply to you. 2010incometax forms See Simplified Method , earlier. 2010incometax forms More information. 2010incometax forms   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. 2010incometax forms Taxation of Nonperiodic Payments This section of the publication explains how any nonperiodic distributions you receive under a pension or annuity plan are taxed. 2010incometax forms Nonperiodic distributions are also known as amounts not received as an annuity. 2010incometax forms They include all payments other than periodic payments and corrective distributions. 2010incometax forms For example, the following items are treated as nonperiodic distributions. 2010incometax forms Cash withdrawals. 2010incometax forms Distributions of current earnings (dividends) on your investment. 2010incometax forms However, do not include these distributions in your income to the extent the insurer keeps them to pay premiums or other consideration for the contract. 2010incometax forms Certain loans. 2010incometax forms See Loans Treated as Distributions , later. 2010incometax forms The value of annuity contracts transferred without full and adequate consideration. 2010incometax forms See Transfers of Annuity Contracts , later. 2010incometax forms Corrective distributions of excess plan contributions. 2010incometax forms   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. 2010incometax forms To correct an excess, your plan may distribute it to you (along with any income earned on the excess). 2010incometax forms Although the plan reports the corrective distributions on Form 1099-R, the distribution is not treated as a nonperiodic distribution from the plan. 2010incometax forms It is not subject to the allocation rules explained in the following discussion, it cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. 2010incometax forms    If your retirement plan made a corrective distribution of excess amounts (excess deferrals, excess contributions, or excess annual additions), your Form 1099-R should have the code “8,” “B,” “P,” or “E” in box 7. 2010incometax forms   For information on plan contribution limits and how to report corrective distributions of excess contributions, see Retirement Plan Contributions under Employee Compensation in Publication 525. 2010incometax forms Figuring the Taxable Amount How you figure the taxable amount of a nonperiodic distribution depends on whether it is made before the annuity starting date, or on or after the annuity starting date. 2010incometax forms If it is made before the annuity starting date, its tax treatment also depends on whether it is made under a qualified or nonqualified plan. 2010incometax forms If it is made under a nonqualified plan, its tax treatment depends on whether it fully discharges the contract, is received under certain life insurance or endowment contracts, or is allocable to an investment you made before August 14, 1982. 2010incometax forms You may be able to roll over the taxable amount of a nonperiodic distribution from a qualified retirement plan into another qualified retirement plan or a traditional IRA tax free. 2010incometax forms See Rollovers, later. 2010incometax forms If you do not make a tax-free rollover and the distribution qualifies as a lump-sum distribution, you may be able to elect an optional method of figuring the tax on the taxable amount. 2010incometax forms See Lump-Sum Distributions, later. 2010incometax forms Annuity starting date. 2010incometax forms   The annuity starting date is either the first day of the first period for which you receive an annuity payment under the contract or the date on which the obligation under the contract becomes fixed, whichever is later. 2010incometax forms Distributions of employer securities. 2010incometax forms    If you receive a distribution of employer securities from a qualified retirement plan, you may be able to defer the tax on the net unrealized appreciation (NUA) in the securities. 2010incometax forms The NUA is the net increase in the securities' value while they were in the trust. 2010incometax forms This tax deferral applies to distributions of the employer corporation's stocks, bonds, registered debentures, and debentures with interest coupons attached. 2010incometax forms   If the distribution is a lump-sum distribution, tax is deferred on all of the NUA unless you choose to include it in your income for the year of the distribution. 2010incometax forms    A lump-sum distribution for this purpose is the distribution or payment of a plan participant's entire balance (within a single tax year) from all of the employer's qualified plans of one kind (pension, profit-sharing, or stock bonus plans), but only if paid: Because of the plan participant's death, After the participant reaches age 59½, Because the participant, if an employee, separates from service, or After the participant, if a self-employed individual, becomes totally and permanently disabled. 2010incometax forms    If you choose to include NUA in your income for the year of the distribution and the participant was born before January 2, 1936, you may be able to figure the tax on the NUA using the optional methods described und