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2012 Federal Tax Forms 1040ez

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2012 Federal Tax Forms 1040ez

2012 federal tax forms 1040ez 7. 2012 federal tax forms 1040ez   How To Get Tax Help Table of Contents Outside the U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 2012 federal tax forms 1040ez Free help with your tax return. 2012 federal tax forms 1040ez   You can get free help preparing your return nationwide from IRS-certified volunteers. 2012 federal tax forms 1040ez The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 2012 federal tax forms 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2012 federal tax forms 1040ez Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2012 federal tax forms 1040ez In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 2012 federal tax forms 1040ez To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 2012 federal tax forms 1040ez gov, download the IRS2Go app, or call 1-800-906-9887. 2012 federal tax forms 1040ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2012 federal tax forms 1040ez To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2012 federal tax forms 1040ez aarp. 2012 federal tax forms 1040ez org/money/taxaide or call 1-888-227-7669. 2012 federal tax forms 1040ez For more information on these programs, go to IRS. 2012 federal tax forms 1040ez gov and enter “VITA” in the search box. 2012 federal tax forms 1040ez Internet. 2012 federal tax forms 1040ez    IRS. 2012 federal tax forms 1040ez gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 2012 federal tax forms 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. 2012 federal tax forms 1040ez Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 2012 federal tax forms 1040ez Check the status of your 2013 refund with the Where's My Refund? application on IRS. 2012 federal tax forms 1040ez gov or download the IRS2Go app and select the Refund Status option. 2012 federal tax forms 1040ez The IRS issues more than 9 out of 10 refunds in less than 21 days. 2012 federal tax forms 1040ez Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 2012 federal tax forms 1040ez You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2012 federal tax forms 1040ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2012 federal tax forms 1040ez Use the Interactive Tax Assistant (ITA) to research your tax questions. 2012 federal tax forms 1040ez No need to wait on the phone or stand in line. 2012 federal tax forms 1040ez The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 2012 federal tax forms 1040ez When you reach the response screen, you can print the entire interview and the final response for your records. 2012 federal tax forms 1040ez New subject areas are added on a regular basis. 2012 federal tax forms 1040ez  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 2012 federal tax forms 1040ez gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 2012 federal tax forms 1040ez You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 2012 federal tax forms 1040ez The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 2012 federal tax forms 1040ez When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 2012 federal tax forms 1040ez Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 2012 federal tax forms 1040ez You can also ask the IRS to mail a return or an account transcript to you. 2012 federal tax forms 1040ez Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 2012 federal tax forms 1040ez gov or by calling 1-800-908-9946. 2012 federal tax forms 1040ez Tax return and tax account transcripts are generally available for the current year and the past three years. 2012 federal tax forms 1040ez Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 2012 federal tax forms 1040ez Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 2012 federal tax forms 1040ez If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 2012 federal tax forms 1040ez Check the status of your amended return using Where's My Amended Return? Go to IRS. 2012 federal tax forms 1040ez gov and enter Where's My Amended Return? in the search box. 2012 federal tax forms 1040ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2012 federal tax forms 1040ez It can take up to 3 weeks from the date you mailed it to show up in our system. 2012 federal tax forms 1040ez Make a payment using one of several safe and convenient electronic payment options available on IRS. 2012 federal tax forms 1040ez gov. 2012 federal tax forms 1040ez Select the Payment tab on the front page of IRS. 2012 federal tax forms 1040ez gov for more information. 2012 federal tax forms 1040ez Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 2012 federal tax forms 1040ez Figure your income tax withholding with the IRS Withholding Calculator on IRS. 2012 federal tax forms 1040ez gov. 2012 federal tax forms 1040ez Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 2012 federal tax forms 1040ez Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 2012 federal tax forms 1040ez gov. 2012 federal tax forms 1040ez Request an Electronic Filing PIN by going to IRS. 2012 federal tax forms 1040ez gov and entering Electronic Filing PIN in the search box. 2012 federal tax forms 1040ez Download forms, instructions and publications, including accessible versions for people with disabilities. 2012 federal tax forms 1040ez Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 2012 federal tax forms 1040ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 2012 federal tax forms 1040ez An employee can answer questions about your tax account or help you set up a payment plan. 2012 federal tax forms 1040ez Before you visit, check the Office Locator on IRS. 2012 federal tax forms 1040ez gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 2012 federal tax forms 1040ez If you have a special need, such as a disability, you can request an appointment. 2012 federal tax forms 1040ez Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 2012 federal tax forms 1040ez Apply for an Employer Identification Number (EIN). 2012 federal tax forms 1040ez Go to IRS. 2012 federal tax forms 1040ez gov and enter Apply for an EIN in the search box. 2012 federal tax forms 1040ez Read the Internal Revenue Code, regulations, or other official guidance. 2012 federal tax forms 1040ez Read Internal Revenue Bulletins. 2012 federal tax forms 1040ez Sign up to receive local and national tax news and more by email. 2012 federal tax forms 1040ez Just click on “subscriptions” above the search box on IRS. 2012 federal tax forms 1040ez gov and choose from a variety of options. 2012 federal tax forms 1040ez Phone. 2012 federal tax forms 1040ez    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 2012 federal tax forms 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. 2012 federal tax forms 1040ez Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 2012 federal tax forms 1040ez gov, or download the IRS2Go app. 2012 federal tax forms 1040ez Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2012 federal tax forms 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2012 federal tax forms 1040ez Most VITA and TCE sites offer free electronic filing. 2012 federal tax forms 1040ez Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 2012 federal tax forms 1040ez Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 2012 federal tax forms 1040ez Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 2012 federal tax forms 1040ez If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2012 federal tax forms 1040ez The IRS issues more than 9 out of 10 refunds in less than 21 days. 2012 federal tax forms 1040ez Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2012 federal tax forms 1040ez Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 2012 federal tax forms 1040ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2012 federal tax forms 1040ez Note, the above information is for our automated hotline. 2012 federal tax forms 1040ez Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 2012 federal tax forms 1040ez Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 2012 federal tax forms 1040ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2012 federal tax forms 1040ez It can take up to 3 weeks from the date you mailed it to show up in our system. 2012 federal tax forms 1040ez Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 2012 federal tax forms 1040ez You should receive your order within 10 business days. 2012 federal tax forms 1040ez Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 2012 federal tax forms 1040ez If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 2012 federal tax forms 1040ez Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 2012 federal tax forms 1040ez The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 2012 federal tax forms 1040ez These individuals can also contact the IRS through relay services such as the Federal Relay Service. 2012 federal tax forms 1040ez    Outside the U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez If you are outside the United States, taxpayer assistance is available by calling the following U. 2012 federal tax forms 1040ez S Embassies or consulates. 2012 federal tax forms 1040ez    Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3823 London, England (44) (20) 7894-0477 Paris, France (33) (1) 4312-2555   If you cannot contact one of these offices, taxpayer assistance is also available at (267) 941-1000 (not a toll free call). 2012 federal tax forms 1040ez   If you are in a U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez Virgin Islands) and have a tax question, you can call 1-800-829-1040. 2012 federal tax forms 1040ez Walk-in. 2012 federal tax forms 1040ez   You can find a selection of forms, publications and services — in-person. 2012 federal tax forms 1040ez Products. 2012 federal tax forms 1040ez You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2012 federal tax forms 1040ez Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2012 federal tax forms 1040ez Services. 2012 federal tax forms 1040ez You can walk in to your local TAC for face-to-face tax help. 2012 federal tax forms 1040ez An employee can answer questions about your tax account or help you set up a payment plan. 2012 federal tax forms 1040ez Before visiting, use the Office Locator tool on IRS. 2012 federal tax forms 1040ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 2012 federal tax forms 1040ez    Outside the U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez Embassies and consulates. 2012 federal tax forms 1040ez   Walk-in taxpayer assistance is available at the following U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez Embassies or consulates. 2012 federal tax forms 1040ez    Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3811 London, England (44) (20) 7894-0477 Paris, France (33) (1) 4312-2555   Please contact the office for times when assistance will be available. 2012 federal tax forms 1040ez Mail. 2012 federal tax forms 1040ez   You can send your order for forms, instructions, and publications to the address below. 2012 federal tax forms 1040ez You should receive a response within 10 business days after your request is received. 2012 federal tax forms 1040ez Internal Revenue Service 1201 N. 2012 federal tax forms 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613      Outside the U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez If you are outside the United States, you can get tax assistance by writing to the address below. 2012 federal tax forms 1040ez  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. 2012 federal tax forms 1040ez   The Taxpayer Advocate Service Is Here to Help You. 2012 federal tax forms 1040ez The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2012 federal tax forms 1040ez Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 2012 federal tax forms 1040ez   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 2012 federal tax forms 1040ez We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 2012 federal tax forms 1040ez You face (or your business is facing) an immediate threat of adverse action. 2012 federal tax forms 1040ez You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 2012 federal tax forms 1040ez   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 2012 federal tax forms 1040ez Here's why we can help: TAS is an independent organization within the IRS. 2012 federal tax forms 1040ez Our advocates know how to work with the IRS. 2012 federal tax forms 1040ez Our services are free and tailored to meet your needs. 2012 federal tax forms 1040ez We have offices in every state, the District of Columbia, and Puerto Rico. 2012 federal tax forms 1040ez   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 2012 federal tax forms 1040ez  How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 2012 federal tax forms 1040ez If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 2012 federal tax forms 1040ez Outside the U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez   If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. 2012 federal tax forms 1040ez You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Guaynabo, P. 2012 federal tax forms 1040ez R. 2012 federal tax forms 1040ez 00968-8000 Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. 2012 federal tax forms 1040ez Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 2012 federal tax forms 1040ez Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. 2012 federal tax forms 1040ez Prev  Up  Next   Home   More Online Publications
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The 2012 Federal Tax Forms 1040ez

2012 federal tax forms 1040ez 2. 2012 federal tax forms 1040ez   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. 2012 federal tax forms 1040ez Surviving spouse. 2012 federal tax forms 1040ez Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. 2012 federal tax forms 1040ez Payments from a state fund for victims of crime. 2012 federal tax forms 1040ez Home Affordable Modification Program (HAMP). 2012 federal tax forms 1040ez Mortgage assistance payments. 2012 federal tax forms 1040ez Payments to reduce cost of winter energy use. 2012 federal tax forms 1040ez Nutrition Program for the Elderly. 2012 federal tax forms 1040ez Reemployment Trade Adjustment Assistance (RTAA). 2012 federal tax forms 1040ez Generally, income is taxable unless it is specifically exempt (not taxed) by law. 2012 federal tax forms 1040ez Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. 2012 federal tax forms 1040ez Under special provisions of the law, certain items are partially or fully exempt from tax. 2012 federal tax forms 1040ez Provisions that are of special interest to older taxpayers are discussed in this chapter. 2012 federal tax forms 1040ez Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. 2012 federal tax forms 1040ez In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. 2012 federal tax forms 1040ez You need not receive the compensation in cash for it to be taxable. 2012 federal tax forms 1040ez Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. 2012 federal tax forms 1040ez Volunteer work. 2012 federal tax forms 1040ez   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. 2012 federal tax forms 1040ez Retired Senior Volunteer Program (RSVP). 2012 federal tax forms 1040ez Foster Grandparent Program. 2012 federal tax forms 1040ez Senior Companion Program. 2012 federal tax forms 1040ez Service Corps of Retired Executives (SCORE). 2012 federal tax forms 1040ez Unemployment compensation. 2012 federal tax forms 1040ez   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. 2012 federal tax forms 1040ez More information. 2012 federal tax forms 1040ez   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. 2012 federal tax forms 1040ez Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. 2012 federal tax forms 1040ez A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. 2012 federal tax forms 1040ez A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. 2012 federal tax forms 1040ez A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. 2012 federal tax forms 1040ez More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. 2012 federal tax forms 1040ez Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. 2012 federal tax forms 1040ez Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. 2012 federal tax forms 1040ez These are discussed in Publication 590. 2012 federal tax forms 1040ez If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. 2012 federal tax forms 1040ez If you do not file Form 8606 with your return, you may have to pay a $50 penalty. 2012 federal tax forms 1040ez Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 2012 federal tax forms 1040ez Early distributions. 2012 federal tax forms 1040ez   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. 2012 federal tax forms 1040ez You must include early distributions of taxable amounts in your gross income. 2012 federal tax forms 1040ez These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. 2012 federal tax forms 1040ez For purposes of the additional 10% tax, an IRA is a qualified retirement plan. 2012 federal tax forms 1040ez For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. 2012 federal tax forms 1040ez After age 59½ and before age 70½. 2012 federal tax forms 1040ez   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. 2012 federal tax forms 1040ez Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. 2012 federal tax forms 1040ez Required distributions. 2012 federal tax forms 1040ez   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. 2012 federal tax forms 1040ez See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. 2012 federal tax forms 1040ez If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. 2012 federal tax forms 1040ez For purposes of the 50% excise tax, an IRA is a qualified retirement plan. 2012 federal tax forms 1040ez For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. 2012 federal tax forms 1040ez See also Excess Accumulations (Insufficient Distributions) in Publication 590. 2012 federal tax forms 1040ez Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. 2012 federal tax forms 1040ez However, see Insurance Premiums for Retired Public Safety Officers , later. 2012 federal tax forms 1040ez If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez The rest of each payment is taxable. 2012 federal tax forms 1040ez However, see Insurance Premiums for Retired Public Safety Officers , later. 2012 federal tax forms 1040ez You figure the tax-free part of the payment using one of the following methods. 2012 federal tax forms 1040ez Simplified Method. 2012 federal tax forms 1040ez 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). 2012 federal tax forms 1040ez You cannot use this method if your annuity is paid under a nonqualified plan. 2012 federal tax forms 1040ez General Rule. 2012 federal tax forms 1040ez You must use this method if your annuity is paid under a nonqualified plan. 2012 federal tax forms 1040ez You generally cannot use this method if your annuity is paid under a qualified plan. 2012 federal tax forms 1040ez Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez Exclusion limit. 2012 federal tax forms 1040ez   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. 2012 federal tax forms 1040ez   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez The total exclusion may be more than your cost. 2012 federal tax forms 1040ez Cost. 2012 federal tax forms 1040ez   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). 2012 federal tax forms 1040ez Your total cost in the plan includes everything that you paid. 2012 federal tax forms 1040ez It also includes amounts your employer contributed that were taxable to you when paid. 2012 federal tax forms 1040ez However, see Foreign employment contributions , later. 2012 federal tax forms 1040ez   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. 2012 federal tax forms 1040ez   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. 2012 federal tax forms 1040ez    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2012 federal tax forms 1040ez , that you receive. 2012 federal tax forms 1040ez Foreign employment contributions. 2012 federal tax forms 1040ez   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. 2012 federal tax forms 1040ez For details, see Foreign employment contributions in Publication 575. 2012 federal tax forms 1040ez Withholding. 2012 federal tax forms 1040ez   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. 2012 federal tax forms 1040ez However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. 2012 federal tax forms 1040ez (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. 2012 federal tax forms 1040ez ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. 2012 federal tax forms 1040ez   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. 2012 federal tax forms 1040ez Simplified Method. 2012 federal tax forms 1040ez   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. 2012 federal tax forms 1040ez For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. 2012 federal tax forms 1040ez For any other annuity, this number is the number of monthly annuity payments under the contract. 2012 federal tax forms 1040ez Who must use the Simplified Method. 2012 federal tax forms 1040ez   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). 2012 federal tax forms 1040ez   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. 2012 federal tax forms 1040ez If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. 2012 federal tax forms 1040ez Guaranteed payments. 2012 federal tax forms 1040ez   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. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez Who cannot use the Simplified Method. 2012 federal tax forms 1040ez   You cannot use the Simplified Method and 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 you are entitled to at least 5 years of guaranteed payments (defined above). 2012 federal tax forms 1040ez   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. 2012 federal tax forms 1040ez If you did not have to use the General Rule, you could have chosen to use it. 2012 federal tax forms 1040ez You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. 2012 federal tax forms 1040ez   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. 2012 federal tax forms 1040ez   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. 2012 federal tax forms 1040ez Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. 2012 federal tax forms 1040ez   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. 2012 federal tax forms 1040ez How to use the Simplified Method. 2012 federal tax forms 1040ez   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. 2012 federal tax forms 1040ez Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. 2012 federal tax forms 1040ez   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. 2012 federal tax forms 1040ez How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez    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. 2012 federal tax forms 1040ez Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. 2012 federal tax forms 1040ez Single-life annuity. 2012 federal tax forms 1040ez   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. 2012 federal tax forms 1040ez Enter on line 3 the number shown for your age on your annuity starting date. 2012 federal tax forms 1040ez This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2012 federal tax forms 1040ez Multiple-lives annuity. 2012 federal tax forms 1040ez   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. 2012 federal tax forms 1040ez Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. 2012 federal tax forms 1040ez   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2012 federal tax forms 1040ez Fixed-period annuities. 2012 federal tax forms 1040ez   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. 2012 federal tax forms 1040ez Line 6. 2012 federal tax forms 1040ez   The amount on line 6 should include all amounts that could have been recovered in prior years. 2012 federal tax forms 1040ez If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. 2012 federal tax forms 1040ez    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. 2012 federal tax forms 1040ez Example. 2012 federal tax forms 1040ez Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. 2012 federal tax forms 1040ez Bill's annuity starting date is January 1, 2013. 2012 federal tax forms 1040ez The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. 2012 federal tax forms 1040ez Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. 2012 federal tax forms 1040ez You can find a blank version of this worksheet in Publication 575. 2012 federal tax forms 1040ez (The references in the illustrated worksheet are to sections in Publication 575). 2012 federal tax forms 1040ez His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. 2012 federal tax forms 1040ez Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). 2012 federal tax forms 1040ez Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. 2012 federal tax forms 1040ez The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez This deduction is not subject to the 2%-of-adjusted-gross-income limit. 2012 federal tax forms 1040ez Worksheet 2-A. 2012 federal tax forms 1040ez Simplified Method Worksheet—Illustrated 1. 2012 federal tax forms 1040ez Enter the total pension or annuity payments received this year. 2012 federal tax forms 1040ez Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 2012 federal tax forms 1040ez $ 14,400 2. 2012 federal tax forms 1040ez Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. 2012 federal tax forms 1040ez 31,000   Note. 2012 federal tax forms 1040ez 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). 2012 federal tax forms 1040ez Otherwise, go to line 3. 2012 federal tax forms 1040ez     3. 2012 federal tax forms 1040ez Enter the appropriate number from Table 1 below. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez 310 4. 2012 federal tax forms 1040ez Divide line 2 by the number on line 3 4. 2012 federal tax forms 1040ez 100 5. 2012 federal tax forms 1040ez Multiply line 4 by the number of months for which this year's payments were made. 2012 federal tax forms 1040ez If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2012 federal tax forms 1040ez Otherwise, go to line 6 5. 2012 federal tax forms 1040ez 1,200 6. 2012 federal tax forms 1040ez Enter any amount previously recovered tax free in years after 1986. 2012 federal tax forms 1040ez This is the amount shown on line 10 of your worksheet for last year 6. 2012 federal tax forms 1040ez 0 7. 2012 federal tax forms 1040ez Subtract line 6 from line 2 7. 2012 federal tax forms 1040ez 31,000 8. 2012 federal tax forms 1040ez Enter the smaller of line 5 or line 7 8. 2012 federal tax forms 1040ez 1,200 9. 2012 federal tax forms 1040ez Taxable amount for year. 2012 federal tax forms 1040ez Subtract line 8 from line 1. 2012 federal tax forms 1040ez Enter the result, but not less than zero. 2012 federal tax forms 1040ez Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2012 federal tax forms 1040ez Note. 2012 federal tax forms 1040ez If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez 9. 2012 federal tax forms 1040ez $ 13,200 10. 2012 federal tax forms 1040ez Was your annuity starting date before 1987? □ Yes. 2012 federal tax forms 1040ez STOP. 2012 federal tax forms 1040ez Do not complete the rest of this worksheet. 2012 federal tax forms 1040ez  ☑ No. 2012 federal tax forms 1040ez Add lines 6 and 8. 2012 federal tax forms 1040ez This is the amount you have recovered tax free through 2013. 2012 federal tax forms 1040ez You will need this number if you need to fill out this worksheet next year. 2012 federal tax forms 1040ez 10. 2012 federal tax forms 1040ez 1,200 11. 2012 federal tax forms 1040ez Balance of cost to be recovered. 2012 federal tax forms 1040ez Subtract line 10 from line 2. 2012 federal tax forms 1040ez If zero, you will not have to complete this worksheet next year. 2012 federal tax forms 1040ez The payments you receive next year will generally be fully taxable 11. 2012 federal tax forms 1040ez $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 2012 federal tax forms 1040ez   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez   BEFORE November 19, 1996, enter on line 3 . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez AFTER November 18, 1996, enter on line 3 . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez   THEN enter on line 3 . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez . 2012 federal tax forms 1040ez         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. 2012 federal tax forms 1040ez   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. 2012 federal tax forms 1040ez   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. 2012 federal tax forms 1040ez The retiree's cost has already been recovered tax free. 2012 federal tax forms 1040ez   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. 2012 federal tax forms 1040ez The resulting tax-free amount will then remain fixed. 2012 federal tax forms 1040ez Any increases in the survivor annuity are fully taxable. 2012 federal tax forms 1040ez   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. 2012 federal tax forms 1040ez See Simplified Method , earlier. 2012 federal tax forms 1040ez How to report. 2012 federal tax forms 1040ez   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. 2012 federal tax forms 1040ez If your pension or annuity is fully taxable, enter it on line 16b. 2012 federal tax forms 1040ez Do not make an entry on line 16a. 2012 federal tax forms 1040ez   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. 2012 federal tax forms 1040ez If your pension or annuity is fully taxable, enter it on line 12b. 2012 federal tax forms 1040ez Do not make an entry on line 12a. 2012 federal tax forms 1040ez   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. 2012 federal tax forms 1040ez If your pension or annuity is fully taxable, enter it on line 17b. 2012 federal tax forms 1040ez Do not make an entry on line 17a. 2012 federal tax forms 1040ez Example. 2012 federal tax forms 1040ez You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. 2012 federal tax forms 1040ez You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). 2012 federal tax forms 1040ez The entire $1,200 is taxable. 2012 federal tax forms 1040ez You include $1,200 only on Form 1040, line 16b. 2012 federal tax forms 1040ez Joint return. 2012 federal tax forms 1040ez   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. 2012 federal tax forms 1040ez Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. 2012 federal tax forms 1040ez Form 1099-R. 2012 federal tax forms 1040ez   You should receive a Form 1099-R for your pension or annuity. 2012 federal tax forms 1040ez Form 1099-R shows your pension or annuity for the year and any income tax withheld. 2012 federal tax forms 1040ez You should receive a Form W-2 if you receive distributions from certain nonqualified plans. 2012 federal tax forms 1040ez You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. 2012 federal tax forms 1040ez Generally, you should be sent these forms by January 31, 2014. 2012 federal tax forms 1040ez Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. 2012 federal tax forms 1040ez Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. 2012 federal tax forms 1040ez For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. 2012 federal tax forms 1040ez The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. 2012 federal tax forms 1040ez See Tax on Early Distributions, later. 2012 federal tax forms 1040ez Lump-sum distributions. 2012 federal tax forms 1040ez   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. 2012 federal tax forms 1040ez The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. 2012 federal tax forms 1040ez The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. 2012 federal tax forms 1040ez You may be able to use the 10-year tax option to figure tax on the ordinary income part. 2012 federal tax forms 1040ez Form 1099-R. 2012 federal tax forms 1040ez   If you receive a total distribution from a plan, you should receive a Form 1099-R. 2012 federal tax forms 1040ez If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. 2012 federal tax forms 1040ez The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. 2012 federal tax forms 1040ez More information. 2012 federal tax forms 1040ez   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. 2012 federal tax forms 1040ez Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. 2012 federal tax forms 1040ez The tax applies to the taxable part of the distribution. 2012 federal tax forms 1040ez For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). 2012 federal tax forms 1040ez  An IRA is also a qualified retirement plan for purposes of this tax. 2012 federal tax forms 1040ez General exceptions to tax. 2012 federal tax forms 1040ez   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. 2012 federal tax forms 1040ez Additional exceptions. 2012 federal tax forms 1040ez   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. 2012 federal tax forms 1040ez See Publication 575 for details. 2012 federal tax forms 1040ez Reporting tax. 2012 federal tax forms 1040ez   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. 2012 federal tax forms 1040ez 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. 2012 federal tax forms 1040ez See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. 2012 federal tax forms 1040ez Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. 2012 federal tax forms 1040ez Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. 2012 federal tax forms 1040ez However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. 2012 federal tax forms 1040ez For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). 2012 federal tax forms 1040ez  An IRA is also a qualified retirement plan for purposes of this tax. 2012 federal tax forms 1040ez An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. 2012 federal tax forms 1040ez 5% owners. 2012 federal tax forms 1040ez   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. 2012 federal tax forms 1040ez See Publication 575 for more information. 2012 federal tax forms 1040ez Amount of tax. 2012 federal tax forms 1040ez   If you do not receive the required minimum distribution, you are subject to an additional tax. 2012 federal tax forms 1040ez The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. 2012 federal tax forms 1040ez You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. 2012 federal tax forms 1040ez Form 5329. 2012 federal tax forms 1040ez   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. 2012 federal tax forms 1040ez Additional information. 2012 federal tax forms 1040ez   For more detailed information on the tax on excess accumulation, see Publication 575. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez The premiums can be for coverage for you, your spouse, or dependent(s). 2012 federal tax forms 1040ez The distribution must be made directly from the plan to the insurance provider. 2012 federal tax forms 1040ez You can exclude from income the smaller of the amount of the insurance premiums or $3,000. 2012 federal tax forms 1040ez You can only make this election for amounts that would otherwise be included in your income. 2012 federal tax forms 1040ez The amount excluded from your income cannot be used to claim a medical expense deduction. 2012 federal tax forms 1040ez An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. 2012 federal tax forms 1040ez If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. 2012 federal tax forms 1040ez The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. 2012 federal tax forms 1040ez Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 2012 federal tax forms 1040ez Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2012 federal tax forms 1040ez Enter “PSO” next to the appropriate line on which you report the taxable amount. 2012 federal tax forms 1040ez Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. 2012 federal tax forms 1040ez These categories are treated differently for income tax purposes. 2012 federal tax forms 1040ez Social security equivalent benefits. 2012 federal tax forms 1040ez   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. 2012 federal tax forms 1040ez This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. 2012 federal tax forms 1040ez (See Social Security and Equivalent Railroad Retirement Benefits , later. 2012 federal tax forms 1040ez ) Non-social security equivalent benefits. 2012 federal tax forms 1040ez   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). 2012 federal tax forms 1040ez It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. 2012 federal tax forms 1040ez This category of benefits is treated as an amount received from a qualified employee plan. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. 2012 federal tax forms 1040ez More information. 2012 federal tax forms 1040ez   For more information about railroad retirement benefits, see Publication 575. 2012 federal tax forms 1040ez Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. 2012 federal tax forms 1040ez But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. 2012 federal tax forms 1040ez For more information, including information about veterans' benefits and insurance, see Publication 525. 2012 federal tax forms 1040ez Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. 2012 federal tax forms 1040ez Social security benefits include monthly retirement, survivor, and disability benefits. 2012 federal tax forms 1040ez They do not include supplemental security income (SSI) payments, which are not taxable. 2012 federal tax forms 1040ez Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. 2012 federal tax forms 1040ez They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. 2012 federal tax forms 1040ez If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. 2012 federal tax forms 1040ez Are Any of Your Benefits Taxable? Note. 2012 federal tax forms 1040ez When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. 2012 federal tax forms 1040ez  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. 2012 federal tax forms 1040ez When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. 2012 federal tax forms 1040ez Figuring total income. 2012 federal tax forms 1040ez   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. 2012 federal tax forms 1040ez If that total amount is more than your base amount, part of your benefits may be taxable. 2012 federal tax forms 1040ez If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. 2012 federal tax forms 1040ez Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. 2012 federal tax forms 1040ez If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. 2012 federal tax forms 1040ez If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. 2012 federal tax forms 1040ez Worksheet 2-B. 2012 federal tax forms 1040ez A Quick Way To Check if Your Benefits May Be Taxable A. 2012 federal tax forms 1040ez Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2012 federal tax forms 1040ez Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. 2012 federal tax forms 1040ez (If you received more than one form, combine the amounts from box 5  and enter the total. 2012 federal tax forms 1040ez ) A. 2012 federal tax forms 1040ez     Note. 2012 federal tax forms 1040ez If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. 2012 federal tax forms 1040ez     B. 2012 federal tax forms 1040ez Enter one-half of the amount on line A B. 2012 federal tax forms 1040ez   C. 2012 federal tax forms 1040ez Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2012 federal tax forms 1040ez   D. 2012 federal tax forms 1040ez Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. 2012 federal tax forms 1040ez   E. 2012 federal tax forms 1040ez Add lines B, C, and D and enter the total E. 2012 federal tax forms 1040ez   F. 2012 federal tax forms 1040ez If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. 2012 federal tax forms 1040ez   G. 2012 federal tax forms 1040ez Is the amount on line F less than or equal to the amount on line E? □ No. 2012 federal tax forms 1040ez None of your benefits are taxable this year. 2012 federal tax forms 1040ez  □ Yes. 2012 federal tax forms 1040ez Some of your benefits may be taxable. 2012 federal tax forms 1040ez To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. 2012 federal tax forms 1040ez     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. 2012 federal tax forms 1040ez Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. 2012 federal tax forms 1040ez It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. 2012 federal tax forms 1040ez If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. 2012 federal tax forms 1040ez Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. 2012 federal tax forms 1040ez Your repayments are shown in box 4. 2012 federal tax forms 1040ez The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). 2012 federal tax forms 1040ez Use the amount in box 5 to figure whether any of your benefits are taxable. 2012 federal tax forms 1040ez Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. 2012 federal tax forms 1040ez If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. 2012 federal tax forms 1040ez If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. 2012 federal tax forms 1040ez For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. 2012 federal tax forms 1040ez How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. 2012 federal tax forms 1040ez Generally, the higher that total amount, the greater the taxable part of your benefits. 2012 federal tax forms 1040ez Maximum taxable part. 2012 federal tax forms 1040ez   The taxable part of your benefits usually cannot be more than 50%. 2012 federal tax forms 1040ez However, up to 85% of your benefits can be taxable if either of the following situations applies to you. 2012 federal tax forms 1040ez The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). 2012 federal tax forms 1040ez You are married filing separately and lived with your spouse at any time during 2013. 2012 federal tax forms 1040ez   If you are a nonresident alien, 85% of your benefits are taxable. 2012 federal tax forms 1040ez However, this income is exempt under some tax treaties. 2012 federal tax forms 1040ez Which worksheet to use. 2012 federal tax forms 1040ez   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. 2012 federal tax forms 1040ez However, you will need to use a different worksheet(s) if any of the following situations applies to you. 2012 federal tax forms 1040ez You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. 2012 federal tax forms 1040ez In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. 2012 federal tax forms 1040ez Situation (1) does not apply and you take one or more of the following exclusions. 2012 federal tax forms 1040ez Interest from qualified U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez savings bonds (Form 8815). 2012 federal tax forms 1040ez Employer-provided adoption benefits (Form 8839). 2012 federal tax forms 1040ez Foreign earned income or housing (Form 2555 or Form 2555-EZ). 2012 federal tax forms 1040ez Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. 2012 federal tax forms 1040ez In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. 2012 federal tax forms 1040ez You received a lump-sum payment for an earlier year. 2012 federal tax forms 1040ez In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. 2012 federal tax forms 1040ez See Lump-Sum Election , later. 2012 federal tax forms 1040ez How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. 2012 federal tax forms 1040ez You cannot use Form 1040EZ. 2012 federal tax forms 1040ez Reporting on Form 1040. 2012 federal tax forms 1040ez   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. 2012 federal tax forms 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. 2012 federal tax forms 1040ez Reporting on Form 1040A. 2012 federal tax forms 1040ez   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. 2012 federal tax forms 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. 2012 federal tax forms 1040ez Reporting on Form 1040NR. 2012 federal tax forms 1040ez   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. 2012 federal tax forms 1040ez Benefits not taxable. 2012 federal tax forms 1040ez   If you are filing Form 1040EZ, do not report any benefits on your tax return. 2012 federal tax forms 1040ez If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. 2012 federal tax forms 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2012 federal tax forms 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. 2012 federal tax forms 1040ez Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. 2012 federal tax forms 1040ez This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. 2012 federal tax forms 1040ez No part of the lump-sum death benefit is subject to tax. 2012 federal tax forms 1040ez For more information about the lump-sum death benefit, visit the Social Security Administration website at www. 2012 federal tax forms 1040ez SSA. 2012 federal tax forms 1040ez gov, and use keyword: death benefit. 2012 federal tax forms 1040ez Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. 2012 federal tax forms 1040ez However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. 2012 federal tax forms 1040ez You can elect this method if it lowers your taxable benefits. 2012 federal tax forms 1040ez See Publication 915 for more information. 2012 federal tax forms 1040ez Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. 2012 federal tax forms 1040ez If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. 2012 federal tax forms 1040ez If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. 2012 federal tax forms 1040ez If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. 2012 federal tax forms 1040ez S. 2012 federal tax forms 1040ez Railroad Retirement Board field office. 2012 federal tax forms 1040ez Joint return. 2012 federal tax forms 1040ez   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. 2012 federal tax forms 1040ez You do this to get your net benefits when figuring if your combined benefits are taxable. 2012 federal tax forms 1040ez Repayment of benefits received in an earlier year. 2012 federal tax forms 1040ez   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. 2012 federal tax forms 1040ez   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. 2012 federal tax forms 1040ez Claim it on Schedule A (Form 1040), line 23. 2012 federal tax forms 1040ez   If this deduction is more than $3,000, you have to follow some special instructions. 2012 federal tax forms 1040ez See Publication 915 for those instructions. 2012 federal tax forms 1040ez Sickness and Injury Benefits Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. 2012 federal tax forms 1040ez If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. 2012 federal tax forms 1040ez However, certain payments may not be taxable to you. 2012 federal tax forms 1040ez Some of these payments are discussed later in this section. 2012 federal tax forms 1040ez Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. 2012 federal tax forms 1040ez Cost paid by you. 2012 federal tax forms 1040ez   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. 2012 federal tax forms 1040ez If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. 2012 federal tax forms 1040ez Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. 2012 federal tax forms 1040ez 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. 2012 federal tax forms 1040ez Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 2012 federal tax forms 1040ez If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. 2012 federal tax forms 1040ez See Credit for the Elderly or the Disabled, later. 2012 federal tax forms 1040ez For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. 2012 federal tax forms 1040ez Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 2012 federal tax forms 1040ez Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. 2012 federal tax forms 1040ez For more information on pensions and annuities, see Publication 575. 2012 federal tax forms 1040ez Retirement and profit-sharing plans. 2012 federal tax forms 1040ez   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. 2012 federal tax forms 1040ez The payments must be reported as a pension or annuity. 2012 federal tax forms 1040ez Accrued leave payment. 2012 federal tax forms 1040ez   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 2012 federal tax forms 1040ez The payment is not a disability payment. 2012 federal tax forms 1040ez Include it in your income in the tax year you receive it. 2012 federal tax forms 1040ez Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. 2012 federal tax forms 1040ez Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. 2012 federal tax forms 1040ez However, the amount you can exclude may be limited. 2012 federal tax forms 1040ez Long-term care insurance contracts are discussed in more detail in Publication 525. 2012 federal tax forms 1040ez Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. 2012 federal tax forms 1040ez The exemption also applies to your survivors. 2012 federal tax forms 1040ez The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. 2012 federal tax forms 1040ez If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2012 federal tax forms 1040ez For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 2012 federal tax forms 1040ez Return to work. 2012 federal tax forms 1040ez   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. 2012 federal tax forms 1040ez Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. 2012 federal tax forms 1040ez Federal Employees' Compensation Act (FECA). 2012 federal tax forms 1040ez   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. 2012 federal tax forms 1040ez However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. 2012 federal tax forms 1040ez Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. 2012 federal tax forms 1040ez Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. 2012 federal tax forms 1040ez    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2012 federal tax forms 1040ez For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 2012 federal tax forms 1040ez Other compensation. 2012 federal tax forms 1040ez   Many other amounts you receive as compensation for sickness or injury are not taxable. 2012 federal tax forms 1040ez These include the following amounts. 2012 federal tax forms 1040ez Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. 2012 federal tax forms 1040ez Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. 2012 federal tax forms 1040ez Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). 2012 federal tax forms 1040ez This compensation must be based only on the injury and not on the period of your absence from work. 2012 federal tax forms 1040ez These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. 2012 federal tax forms 1040ez Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. 2012 federal tax forms 1040ez This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. 2012 federal tax forms 1040ez Proceeds not received in installments. 2012 federal tax forms 1040ez   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. 2012 federal tax forms 1040ez If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. 2012 federal tax forms 1040ez Proceeds received in installments. 2012 federal tax forms 1040ez   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. 2012 federal tax forms 1040ez   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. 2012 federal tax forms 1040ez Include anything over this excluded part in your income as interest. 2012 federal tax forms 1040ez Installments for life. 2012 federal tax forms 1040ez   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. 2012 federal tax forms 1040ez If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. 2012 federal tax forms 1040ez Surviving spouse. 2012 federal tax forms 1040ez   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. 2012 federal tax forms 1040ez If you remarry, you can continue to take the exclusion. 2012 federal tax forms 1040ez Surrender of policy for cash. 2012 federal tax forms 1040ez   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. 2012 federal tax forms 1040ez In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. 2012 federal tax forms 1040ez You should receive a Form 1099-R showing the total proceeds and the taxable part. 2012 federal tax forms 1040ez Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. 2012 federal tax forms 1040ez Endowment Contract Proceeds An endowment contract is a policy that pays over to you a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. 2012 federal tax forms 1040ez Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. 2012 federal tax forms 1040ez To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. 2012 federal tax forms 1040ez Include in your income the part of the lump-sum payment that is more than your cost. 2012 federal tax forms 1040ez Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. 2012 federal tax forms 1040ez The tax treatment of an annuity is explained in Publication 575. 2012 federal tax forms 1040ez For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. 2012 federal tax forms 1040ez This election must be made within 60 days after the lump-sum payment first becomes payable to you. 2012 federal tax forms 1040ez Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. 2012 federal tax forms 1040ez However, see Exception , later. 2012 federal tax forms 1040ez For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. 2012 federal tax forms 1040ez Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. 2012 federal tax forms 1040ez In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. 2012 federal tax forms 1040ez Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill. 2012 federal tax forms 1040ez To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. 2012 federal tax forms 1040ez Terminally or chronically ill defined. 2012 federal tax forms 1040ez   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. 2012 federal tax forms 1040ez A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. 2012 federal tax forms 1040ez The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. 2012 federal tax forms 1040ez The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. 2012 federal tax forms 1040ez Exception. 2012 federal tax forms 1040ez   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. 2012 federal tax forms 1040ez Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. 2012 federal tax forms 1040ez Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. 2012 federal tax forms 1040ez You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. 2012 federal tax forms 1040ez Main home. 2012 federal tax forms 1040ez   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. 2012 federal tax forms 1040ez Repaying the first-time homebuyer credit because you sold your home. 2012 federal tax forms 1040ez   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. 2012 federal tax forms 1040ez For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. 2012 federal tax forms 1040ez   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. 2012 federal tax forms 1040ez If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. 2012 federal tax forms 1040ez If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. 2012 federal tax forms 1040ez   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. 2012 federal tax forms 1040ez Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. 2012 federal tax forms 1040ez You meet the ownership test. 2012 federal tax forms 1040ez You meet the use test. 2012 federal tax forms 1040ez During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. 2012 federal tax forms 1040ez You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . 2012 federal tax forms 1040ez Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. 2012 federal tax forms 1040ez This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). 2012 federal tax forms 1040ez Exception to ownership and use tests. 2012 federal tax forms 1040ez   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. 2012 federal tax forms 1040ez Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. 2012 federal tax forms 1040ez The maximum amount you can exclude will be reduced. 2012 federal tax forms 1040ez See Publication 523, Selling Your Home, for more information. 2012 federal tax forms 1040ez Exception to use test for individuals with a disability. 2012 federal tax forms 1040ez   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. 2012 federal tax forms 1040ez Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. 2012 federal tax forms 1040ez   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. 2012 federal tax forms 1040ez Exception to ownership test for property acquired in a like-kind exchange. 2012 federal tax forms 1040ez   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. 2012 federal tax forms 1040ez This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. 2012 federal tax forms 1040ez A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. 2012 federal tax forms 1040ez See Publication 523 for more information. 2012 federal tax forms 1040ez Period of nonqualified use. 2012 federal tax forms 1040ez   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. 2012 federal tax forms 1040ez Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. 2012 federal tax forms 1040ez See Publication 523 for more information. 2012 federal tax forms 1040ez Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. 2012 federal tax forms 1040ez However, see Special rules for joint returns , next. 2012 federal tax forms 1040ez Special rules for joint returns. 2012 federal tax forms 1040ez   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. 2012 federal tax forms 1040ez You are married and file a joint return for the year. 2012 federal tax forms 1040ez Either you or your spouse meets the ownership test. 2012 federal tax forms 1040ez Both you and your spouse meet the use test. 2012 federal tax forms 1040ez During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. 2012 federal tax forms 1040ez Sale of home by surviving spouse. 2012 federal tax forms 1040ez   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. 2012 federal tax forms 1040ez   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. 2012 federal tax forms 1040ez The sale or exchange took place no more than 2 years after the date of death of your spouse. 2012 federal tax forms 1040ez You have not remarried. 2012 federal tax forms 1040ez You and your spouse met the use test at the time of your spouse's death. 2012 federal tax forms 1040ez You or your spouse met the ownership test at the time of your spouse's death. 2012 federal tax forms 1040ez Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. 2012 federal tax forms 1040ez Home transferred from spouse. 2012 federal tax forms 1040ez   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. 2012 federal tax forms 1040ez Use of home after divorce. 2012 federal tax forms 1040ez   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. 2012 federal tax forms 1040ez Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. 2012 federal tax forms 1040ez However, you must meet the ownership and use tests. 2012 federal tax forms 1040ez See Publication 523 for more information. 2012 federal tax forms 1040ez Depreciation after May 6, 1997. 2012 federal tax forms 1040ez   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. 2012 federal tax forms 1040ez See Publication 523 for more information. 2012 federal tax forms 1040ez Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. 2012 federal tax forms 1040ez If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. 2012 federal tax forms 1040ez Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. 2012 federal tax forms 1040ez If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. 2012 federal tax forms 1040ez See Publication 523 for more information. 2012 federal tax forms 1040ez Reverse Mortgages A revers