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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Amended 1040

Printable 1040ez FormIrs Tax Forms 1040ezForm 1040x Amended Us Individual Income Tax ReturnAmended Return 1040xFederal 1040x FormIrs 1040 Ez FormAarp Tax Aide1040ez Fillable FormFree Tax Filing 2013 TurbotaxAmending 2012 Federal Tax ReturnVita Tax PreparerWww Taxslayer Com MilitaryIrs Forms 2010Free Tax Usa Com2012 Form 1040aHow Can I Efile My State Taxes For FreeH&r Block Free FileHow To File Just State Taxes2012 Form 1040ez1040 Ez Form 2011Amend A 2013 Tax ReturnUnemployed Tax ReturnTax Forms 1040 EzIrs Gov 2012 Tax FormsWhere Do I File 2011 TaxesIrs 2012 Form 1040aFile Taxes From 2011Irs Tax Forms For 2012Amend 10402010 Tax Forms Instructions1040 Ez InstructionsCan I File State Taxes For FreeEfile 1040 Ez2012 Ez Form2011 Form 1040Refile 2012 TaxesFile 2005 Taxes OnlineIrs Form 1040 2012Https Www Freefilefillableforms Com1040 Tax Forms Printable

Amended 1040

Amended 1040 10. Amended 1040   Business Bad Debts Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Definition of Business Bad DebtAccrual method. Amended 1040 Cash method. Amended 1040 Debt acquired from a decedent. Amended 1040 Liquidation. Amended 1040 Types of Business Bad Debts When a Debt Becomes Worthless How To Claim a Business Bad DebtSpecific Charge-Off Method Nonaccrual-Experience Method Recovery of a Bad DebtNet operating loss (NOL) carryover. Amended 1040 Introduction You have a bad debt if you cannot collect money owed to you. Amended 1040 A bad debt is either a business bad debt or a nonbusiness bad debt. Amended 1040 This chapter discusses only business bad debts. Amended 1040 Generally, a business bad debt is one that comes from operating your trade or business. Amended 1040 You can deduct business bad debts on Schedule C (Form 1040) or your applicable business income tax return. Amended 1040 All other bad debts are nonbusiness bad debts and are deductible only as short-term capital losses. Amended 1040 For more information on nonbusiness bad debts, see Publication 550. Amended 1040 Topics - This chapter discusses: Definition of business bad debt When a debt becomes worthless How to claim a business bad debt Recovery of a bad debt Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 556 Examination of Returns, Appeal Rights, and Claims for Refund Form (and Instructions) Schedule C (Form 1040) Profit or Loss From Business 1040X Amended U. Amended 1040 S. Amended 1040 Individual Income Tax Return 1045 Application for Tentative Refund 1139 Corporation Application for Tentative Refund 3115 Application for Change in Accounting Method See chapter 12 for information about getting publications and forms. Amended 1040 Definition of Business Bad Debt A business bad debt is a loss from the worthlessness of a debt that was either: Created or acquired in your trade or business, or Closely related to your trade or business when it became partly or totally worthless. Amended 1040 A debt is closely related to your trade or business if your primary motive for incurring the debt is business related. Amended 1040 Bad debts of a corporation (other than an S corporation) are always business bad debts. Amended 1040 Credit sales. Amended 1040   Business bad debts are mainly the result of credit sales to customers. Amended 1040 Goods that have been sold, but not yet paid for, and services that have been performed, but not yet paid for, are recorded in your books as either accounts receivable or notes receivable. Amended 1040 After a reasonable period of time, if you have tried to collect the amount due, but are unable to do so, the uncollectible part becomes a business bad debt. Amended 1040   Accounts or notes receivable valued at fair market value (FMV) when received are deductible only at that value, even though the FMV may be less than the face value. Amended 1040 If you purchased an account receivable for less than its face value, and the receivable subsequently becomes worthless, the most you are allowed to deduct is the amount you paid to acquire it. Amended 1040    You can claim a business bad debt deduction only if the amount owed to you was previously included in gross income. Amended 1040 This applies to amounts owed to you from all sources of taxable income, including sales, services, rents, and interest. Amended 1040 Accrual method. Amended 1040   If you use the accrual method of accounting, you generally report income as you earn it. Amended 1040 You can only claim a bad debt deduction for an uncollectible receivable if you have previously included the uncollectible amount in income. Amended 1040   If you qualify, you can use the nonaccrual-experience method of accounting discussed later. Amended 1040 Under this method, you do not have to accrue income that, based on your experience, you do not expect to collect. Amended 1040 Cash method. Amended 1040   If you use the cash method of accounting, you generally report income when you receive payment. Amended 1040 You cannot claim a bad debt deduction for amounts owed to you because you never included those amounts in income. Amended 1040 For example, a cash basis architect cannot claim a bad debt deduction if a client fails to pay the bill because the architect's fee was never included in income. Amended 1040 Debts from a former business. Amended 1040   If you sell your business but retain its receivables, these debts are business debts because they arose out of your trade or business. Amended 1040 If any of these receivables subsequently become worthless, the loss is still a business bad debt. Amended 1040 Debt acquired from a decedent. Amended 1040   The character of a loss from debts of a business acquired from a decedent is determined in the same way as debts acquired on the purchase of a business. Amended 1040 The executor of the decedent's estate treats any loss from the debts as a business bad debt if the debts were closely related to the decedent's trade or business when they became worthless. Amended 1040 Otherwise, a loss from these debts becomes a nonbusiness bad debt for the decedent's estate. Amended 1040 Liquidation. Amended 1040   If you liquidate your business and some of the accounts receivable that you retain become worthless, they become business bad debts. Amended 1040 Types of Business Bad Debts Business bad debts may result from the following. Amended 1040 Loans to clients and suppliers. Amended 1040   If you loan money to a client, supplier, employee, or distributor for a business reason and you are unable to collect the loan after attempting to do so, you have a business bad debt. Amended 1040 Debts owed by political parties. Amended 1040   If a political party (or other organization that accepts contributions or spends money to influence elections) owes you money and the debt becomes worthless, you can claim a bad debt deduction only if all of the following requirements are met. Amended 1040 You use the accrual method of accounting. Amended 1040 The debt arose from the sale of goods or services in the ordinary course of your trade or business. Amended 1040 More than 30% of your receivables accrued in the year of the sale were from sales to political parties. Amended 1040 You made substantial and continuing efforts to collect on the debt. Amended 1040 Loan or capital contribution. Amended 1040   You cannot claim a bad debt deduction for a loan you made to a corporation if, based on the facts and circumstances, the loan is actually a contribution to capital. Amended 1040 Debts of an insolvent partner. Amended 1040   If your business partnership breaks up and one of your former partners becomes insolvent, you may have to pay more than your pro rata share of the partnership's debts. Amended 1040 If you pay any part of the insolvent partner's share of the debts, you can claim a bad debt deduction for the amount you paid that is attributable to the insolvent partner's share. Amended 1040 Business loan guarantee. Amended 1040   If you guarantee a debt that subsequently becomes worthless, the debt can qualify as a business bad debt if all the following requirements are met. Amended 1040 You made the guarantee in the course of your trade or business. Amended 1040 You have a legal duty to pay the debt. Amended 1040 You made the guarantee before the debt became worthless. Amended 1040 You meet this requirement if you reasonably expected you would not have to pay the debt without full reimbursement from the borrower. Amended 1040 You received reasonable consideration for making the guarantee. Amended 1040 You meet this requirement if you made the guarantee in accord with normal business practice or for a good faith business purpose. Amended 1040 Example. Amended 1040 Jane Zayne owns the Zayne Dress Company. Amended 1040 She guaranteed payment of a $20,000 note for Elegant Fashions, a dress outlet. Amended 1040 Elegant Fashions is one of Zayne's largest clients. Amended 1040 Elegant Fashions later defaulted on the loan. Amended 1040 As a result, Ms. Amended 1040 Zayne paid the remaining balance of the loan in full to the bank. Amended 1040 She can claim a business bad debt deduction only for the amount she paid, since her guarantee was made in the course of her trade or business for a good faith business purpose. Amended 1040 She was motivated by the desire to retain one of her better clients and keep a sales outlet. Amended 1040 Deductible in the year paid. Amended 1040   If you make a payment on a loan you guaranteed, you can deduct it in the year paid, unless you have rights against the borrower. Amended 1040 Rights against a borrower. Amended 1040   When you make payment on a loan you guaranteed, you may have the right to take the place of the lender. Amended 1040 The debt is then owed to you. Amended 1040 If you have this right, or some other right to demand payment from the borrower, you cannot claim a bad debt deduction until these rights become partly or totally worthless. Amended 1040 Joint debtor. Amended 1040   If two or more debtors jointly owe you money, your inability to collect from one does not enable you to deduct a proportionate amount as a bad debt. Amended 1040 Sale of mortgaged property. Amended 1040   If mortgaged or pledged property is sold for less than the debt, the unpaid, uncollectible balance of the debt is a bad debt. Amended 1040 When a Debt Becomes Worthless A debt becomes worthless when there is no longer any chance the amount owed will be paid. Amended 1040 This may occur when the debt is due or prior to that date. Amended 1040 To demonstrate worthlessness, you must only show that you have taken reasonable steps to collect the debt but were unable to do so. Amended 1040 It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. Amended 1040 Bankruptcy of your debtor is generally good evidence of the worthlessness of at least a part of an unsecured and unpreferred debt. Amended 1040 Property received for debt. Amended 1040   If you receive property in partial settlement of a debt, reduce the debt by the property's FMV, which becomes the property's basis. Amended 1040 You can deduct the remaining debt as a bad debt if and when it becomes worthless. Amended 1040   If you later sell the property for more than its basis, any gain on the sale is due to the appreciation of the property. Amended 1040 It is not a recovery of a bad debt. Amended 1040 For information on the sale of an asset, see Publication 544. Amended 1040 How To Claim a Business Bad Debt There are two methods to claim a business bad debt. Amended 1040 The specific charge-off method. Amended 1040 The nonaccrual-experience method. Amended 1040 Generally, you must use the specific charge-off method. Amended 1040 However, you may use the nonaccrual-experience method if you meet the requirements discussed later under Nonaccrual-Experience Method . Amended 1040 Specific Charge-Off Method If you use the specific charge-off method, you can deduct specific business bad debts that become either partly or totally worthless during the tax year. Amended 1040 However, with respect to partly worthless bad debts, your deduction is limited to the amount you charged off on your books during the year. Amended 1040 Partly worthless debts. Amended 1040   You can deduct specific bad debts that become partly uncollectible during the tax year. Amended 1040 Your tax deduction is limited to the amount you charge off on your books during the year. Amended 1040 You do not have to charge off and deduct your partly worthless debts annually. Amended 1040 You can delay the charge off until a later year. Amended 1040 However, you cannot deduct any part of a debt after the year it becomes totally worthless. Amended 1040 Significantly modified debt. Amended 1040   An exception to the charge-off rule exists for debt which has been significantly modified and on which the holder recognized gain. Amended 1040 For more information, see Regulations section 1. Amended 1040 166-3(a)(3). Amended 1040 Deduction disallowed. Amended 1040   Generally, you can claim a partial bad debt deduction only in the year you make the charge-off on your books. Amended 1040 If, under audit, the IRS does not allow your deduction and the debt becomes partly worthless in a later tax year, you can deduct the amount you charged off in that year plus the disallowed amount charged off in the earlier year. Amended 1040 The charge-off in the earlier year, unless reversed on your books, fulfills the charge-off requirement for the later year. Amended 1040 Totally worthless debts. Amended 1040   If a debt becomes totally worthless in the current tax year, you can deduct the entire amount, less any amount deducted in an earlier tax year when the debt was only partly worthless. Amended 1040   You do not have to make an actual charge-off on your books to claim a bad debt deduction for a totally worthless debt. Amended 1040 However, you may want to do so. Amended 1040 If you do not and the IRS later rules the debt is only partly worthless, you will not be allowed a deduction for the debt in that tax year because a deduction of a partly worthless bad debt is limited to the amount actually charged off. Amended 1040 See Partly worthless debts, earlier. Amended 1040 Filing a claim for refund. Amended 1040   If you did not deduct a bad debt on your original return for the year it became worthless, you can file a claim for a credit or refund. Amended 1040 If the bad debt was totally worthless, you must file the claim by the later of the following dates. Amended 1040 7 years from the date your original return was due (not including extensions). Amended 1040 2 years from the date you paid the tax. Amended 1040   If the claim is for a partly worthless bad debt, you must file the claim by the later of the following dates. Amended 1040 3 years from the date you filed your original return. Amended 1040 2 years from the date you paid the tax. Amended 1040 You may have longer to file the claim if you were unable to manage your financial affairs due to a physical or mental impairment. Amended 1040 Such an impairment requires proof of existence. Amended 1040   For details and more information about filing a claim, see Publication 556. Amended 1040 Use one of the following forms to file a claim. Amended 1040 For more information, see the instructions for the applicable form. Amended 1040 Table 10-1. Amended 1040 Forms Used To File a Claim IF you filed as a. Amended 1040 . Amended 1040 . Amended 1040 THEN file. Amended 1040 . Amended 1040 . Amended 1040 Sole proprietor or farmer Form 1040X Corporation Form 1120X S corporation Form 1120S and check box H(4) Partnership Form 1065X if filing on paper or  Form 1065 and check box G(5) if filing electronically Nonaccrual-Experience Method If you use an accrual method of accounting and qualify under the rules explained in this section, you can use the nonaccrual-experience method for bad debts. Amended 1040 Under this method, you do not accrue service related income you expect to be uncollectible. Amended 1040 Because the expected uncollectible amounts are not included in income, these amounts are not later deducted from income. Amended 1040 Generally, you can use the nonaccrual-experience method for accounts receivable for services you performed only if: The services are provided in the fields of accounting, actuarial science, architecture, consulting, engineering, health, law, or the performing arts, or You meet the $5 million gross receipts test for all prior years. Amended 1040 Service related income. Amended 1040   You can use the nonaccrual-experience method only for amounts earned by performing services. Amended 1040 You cannot use this method for amounts owed to you from activities such as lending money, selling goods, or acquiring receivables or other rights to receive payment. Amended 1040 Gross receipts test. Amended 1040   To find out if you meet the $5 million gross receipts test for all prior years, you must figure the average annual gross receipts for each prior year. Amended 1040 If your average annual gross receipts for any year exceeds $5 million, you cannot use the non-accural experience method. Amended 1040   The average annual gross receipts for any year is the average of gross receipts from the year in question and the 2 previous years. Amended 1040 For example, if you were figuring the average annual gross receipts for 2013, you would average your gross receipts for 2011, 2012, and 2013. Amended 1040 Interest or penalty charged. Amended 1040   Generally, you cannot use the nonaccrual-experience method for amounts due on which you charge interest or a late payment penalty. Amended 1040 However, do not treat a discount offered for early payment as the charging of interest or a penalty if both the following apply. Amended 1040 You otherwise accrue the full amount due as gross income at the time you provide the services. Amended 1040 You treat the discount allowed for early payment as an adjustment to gross income in the year of payment. Amended 1040 Change in accounting method. Amended 1040   Generally, you must obtain consent to change to a nonaccrual-experience method (other than one of the safe harbor methods) or to change from one method to another. Amended 1040 See Form 3115 and the Instructions for Form 3115 for more information. Amended 1040 Recovery of a Bad Debt If you claim a deduction for a bad debt on your income tax return and later recover (collect) all or part of it, you may have to include all or part of the recovery in gross income. Amended 1040 The amount you include is limited to the amount you actually deducted. Amended 1040 However, you can exclude the amount deducted that did not reduce your tax. Amended 1040 Report the recovery as “Other income” on the appropriate business form or schedule. Amended 1040 See Recoveries in Publication 525 for more information. Amended 1040 Net operating loss (NOL) carryover. Amended 1040   If a bad debt deduction increases an NOL carryover that has not expired before the beginning of the tax year in which the recovery takes place, you treat the deduction as having reduced your tax. Amended 1040 A bad debt deduction that contributes to a NOL helps lower taxes in the year to which you carry the NOL. Amended 1040 For more information about NOLs, see Publication 536. Amended 1040 Also, see the Instructions for Form 1045, and the Instructions for Form 1139. Amended 1040 Prev  Up  Next   Home   More Online Publications
Español

The only proven way to help you lose weight is to burn more calories than you consume. If you need to lose weight, talk with your doctor about the options that are best for you. Most health experts agree that the best and safest way to lose weight is to modestly cut calories, eat a balanced diet, and exercise. People usually do best when they reduce their usual calorie intake or increase the calories they use by 500-1,000 per day. This allows you to eat enough for good nutrition yet lose about one to two pounds a week. Steer clear of harmful tactics such as smoking, fasting, purging, or abusing laxatives.

Avoid fad diets and other weight loss programs that promise fast results or limit your food choices. Ask yourself the following:

  • How does the product or service work? Does the program emphasize diet, exercise or a combination of both?
  • How much will it cost? Ask for an itemized list that includes membership fees and fees for weekly visits. Ask if there are extra fees for diagnostic tests, food, dietary supplements, or other products in the program.
  • How well does it work? Ask to see the studies that back up success claims. Look for how many people completed the program, how much weight they lost, and how long they kept the weight off.
  • What are the risks? Get details about possible side effects. Check with your doctor before you take prescriptions, over-the-counter weight loss drugs, or dietary supplements. Diets that require drastic food restriction should be under the supervision of a physician.
  • How many calories will you eat each day? For diets under 1,500 calories, be sure to check with your doctor to make sure you get all your nutrients.
  • What are the staff qualifications? Ask about their training and experience.
  • What type of attention will you receive? Will you get individual counseling or group support? How often?

Complaints concerning fraudulent weight loss claims should be directed to the Federal Trade Commission.

Cancelling Gym Memberships

Signing up for a gym membership can be a great step, but it is important to know what commitments you are making before you sign on the dotted line. For example:

  • Read the contract. Pay attention to cancellation policies, including whether there is an "exit fee" for breaking the agreement.
  • Know your state's laws. Many states have consumer protections that offer a "cooling-off period" during which you can back out of contracts, including gym memberships. However, these laws vary from state to state.
  • Know your gym's rules. Some gyms grant waivers if you are temporarily incapacitated, out of the area for an extended period, or move a certain distance away. These rules vary from gym to gym.
  • Cancel in writing
  • Always put your intention to cancel in writing, even if you are advised that is not necessary, and keep a copy of your letter. Make sure you follow the advance notice requirements in your contract.

The Amended 1040

Amended 1040 Publication 939 - Main Content Table of Contents General Information Taxation of Periodic PaymentsInvestment in the Contract Expected Return Computation Under the General Rule How To Use Actuarial TablesUnisex Annuity Tables Special Elections Worksheets for Determining Taxable Annuity Actuarial Tables Requesting a Ruling on Taxation of Annuity How To Get Tax HelpLow Income Taxpayer Clinics General Information Some of the terms used in this publication are defined in the following paragraphs. Amended 1040 A pension is generally a series of payments made to you after you retire from work. Amended 1040 Pension payments are made regularly and are for past services with an employer. Amended 1040 An annuity is a series of payments under a contract. Amended 1040 You can buy the contract alone or you can buy it with the help of your employer. Amended 1040 Annuity payments are made regularly for more than one full year. Amended 1040 Note. Amended 1040 Distributions from pensions and annuities follow the same rules as outlined in this publication unless otherwise noted. Amended 1040 Types of pensions and annuities. Amended 1040   Particular types of pensions and annuities include: Fixed period annuities. Amended 1040 You receive definite amounts at regular intervals for a definite length of time. Amended 1040 Annuities for a single life. Amended 1040 You receive definite amounts at regular intervals for life. Amended 1040 The payments end at death. Amended 1040 Joint and survivor annuities. Amended 1040 The first annuitant receives a definite amount at regular intervals for life. Amended 1040 After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Amended 1040 The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Amended 1040 Variable annuities. Amended 1040 You receive payments that may vary in amount for a definite length of time or for life. Amended 1040 The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds or cost-of-living indexes. Amended 1040 Disability pensions. Amended 1040 You are under minimum retirement age and receive payments because you retired on disability. Amended 1040 If, at the time of your retirement, you were permanently and totally disabled, you may be eligible for the credit for the elderly or the disabled discussed in Publication 524. Amended 1040 If your annuity starting date is after November 18, 1996, the General Rule cannot be used for the following qualified plans. Amended 1040 A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries. Amended 1040 This plan must meet Internal Revenue Code requirements. Amended 1040 It qualifies for special tax benefits, including tax deferral for employer contributions and rollover distributions. Amended 1040 However, you must use the General Rule if you were 75 or over and the annuity payments are guaranteed for more than 5 years. Amended 1040 A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Amended 1040 A tax-sheltered annuity is a special annuity plan or contract purchased for an employee of a public school or tax-exempt organization. Amended 1040   The General Rule is used to figure the tax treatment of various types of pensions and annuities, including nonqualified employee plans. Amended 1040 A nonqualified employee plan is an employer's plan that does not meet Internal Revenue Code requirements. Amended 1040 It does not qualify for most of the tax benefits of a qualified plan. Amended 1040 Annuity worksheets. Amended 1040   The worksheets found near the end of the text of this publication may be useful to you in figuring the taxable part of your annuity. Amended 1040 Request for a ruling. Amended 1040   If you are unable to determine the income tax treatment of your pension or annuity, you may ask the Internal Revenue Service to figure the taxable part of your annuity payments. Amended 1040 This is treated as a request for a ruling. Amended 1040 See Requesting a Ruling on Taxation of Annuity near the end of this publication. Amended 1040 Withholding tax and estimated tax. Amended 1040   Your pension or annuity is subject to federal income tax withholding unless you choose not to have tax withheld. Amended 1040 If you choose not to have tax withheld from your pension or annuity, or if you do not have enough income tax withheld, you may have to make estimated tax payments. Amended 1040 Taxation of Periodic Payments This section explains how the periodic payments you receive under a pension or annuity plan are taxed under the General Rule. Amended 1040 Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Amended 1040 These payments are also known as amounts received as an annuity. Amended 1040 If you receive an amount from your plan that is a nonperiodic payment (amount not received as an annuity), see Taxation of Nonperiodic Payments in Publication 575. Amended 1040 In general, you can recover your net cost of the pension or annuity tax free over the period you are to receive the payments. Amended 1040 The amount of each payment that is more than the part that represents your net cost is taxable. Amended 1040 Under the General Rule, the part of each annuity payment that represents your net cost is in the same proportion that your investment in the contract is to your expected return. Amended 1040 These terms are explained in the following discussions. Amended 1040 Investment in the Contract In figuring how much of your pension or annuity is taxable under the General Rule, you must figure your investment in the contract. Amended 1040 First, find your net cost of the contract as of the annuity starting date (defined later). Amended 1040 To find this amount, you must first figure the total premiums, contributions, or other amounts paid. Amended 1040 This includes the amounts your employer contributed if you were required to include these amounts in income. Amended 1040 It also includes amounts you actually contributed (except amounts for health and accident benefits and deductible voluntary employee contributions). Amended 1040 From this total cost you subtract: Any refunded premiums, rebates, dividends, or unrepaid loans (any of which were not included in your income) that you received by the later of the annuity starting date or the date on which you received your first payment. Amended 1040 Any additional premiums paid for double indemnity or disability benefits. Amended 1040 Any other tax-free amounts you received under the contract or plan before the later of the dates in (1). Amended 1040 The annuity starting date   is the later of the first day of the first period for which you receive payment under the contract or the date on which the obligation under the contract becomes fixed. Amended 1040 Example. Amended 1040 On January 1 you completed all your payments required under an annuity contract providing for monthly payments starting on August 1, for the period beginning July 1. Amended 1040 The annuity starting date is July 1. Amended 1040 This is the date you use in figuring your investment in the contract and your expected return (discussed later). Amended 1040 Adjustments If any of the following items apply, adjust (add or subtract) your total cost to find your net cost. Amended 1040 Foreign employment. Amended 1040   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. Amended 1040 The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (without regard to the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer on your behalf if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) if the contributions would be excludible from your gross income had they been paid directly to you. Amended 1040 Foreign employment contributions while a nonresident alien. Amended 1040   In determining your cost, special rules apply if you are a U. Amended 1040 S. Amended 1040 citizen or resident alien who received distributions from a plan to which contributions were made while you were a nonresident alien. Amended 1040 Your contributions and your employer's contributions are not included in your cost if the contributions: Were made based on compensation which was for services performed outside the United States which you were a nonresident alien, and Were not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if they had been paid as cash compensation when the services were performed. Amended 1040 Death benefit exclusion. Amended 1040   If you are the beneficiary of a deceased employee (or former employee), who died before August 21, 1996, you may qualify for a death benefit exclusion of up to $5,000. Amended 1040 The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion. Amended 1040 How to adjust your total cost. Amended 1040   If you are eligible, treat the amount of any allowable death benefit exclusion as additional cost paid by the employee. Amended 1040 Add it to the cost or unrecovered cost of the annuity at the annuity starting date. Amended 1040 See Example 3 under Computation Under General Rule for an illustration of the adjustment to the cost of the contract. Amended 1040 Net cost. Amended 1040   Your total cost plus certain adjustments and minus other amounts already recovered before the annuity starting date is your net cost. Amended 1040 This is the unrecovered investment in the contract as of the annuity starting date. Amended 1040 If your annuity starting date is after 1986, this is the maximum amount that you may recover tax free under the contract. Amended 1040 Refund feature. Amended 1040   Adjustment for the value of the refund feature is only applicable when you report your pension or annuity under the General Rule. Amended 1040 Your annuity contract has a refund feature if: The expected return ( discussed later) of an annuity depends entirely or partly on the life of one or more individuals, The contract provides that payments will be made to a beneficiary or the estate of an annuitant on or after the death of the annuitant if a stated amount or a stated number of payments has not been paid to the annuitant or annuitants before death, and The payments are a refund of the amount you paid for the annuity contract. Amended 1040   If your annuity has a refund feature, you must reduce your net cost of the contract by the value of the refund feature (figured using Table III or VII at the end of this publication, also see How To Use Actuarial Tables , later) to find the investment in the contract. Amended 1040 Zero value of refund feature. Amended 1040   For a joint and survivor annuity, the value of the refund feature is zero if: Both annuitants are age 74 or younger, The payments are guaranteed for less than 2½ years, and The survivor's annuity is at least 50% of the first annuitant's annuity. Amended 1040   For a single-life annuity without survivor benefit, the value of the refund feature is zero if: The payments are guaranteed for less than 2½ years, and The annuitant is: Age 57 or younger (if using the new (unisex) annuity tables), Age 42 or younger (if male and using the old annuity tables), or Age 47 or younger (if female and using the old annuity tables). Amended 1040   If you do not meet these requirements, you will have to figure the value of the refund feature, as explained in the following discussion. Amended 1040 Examples. Amended 1040 The first example shows how to figure the value of the refund feature when there is only one beneficiary. Amended 1040 Example 2 shows how to figure the value of the refund feature when the contract provides, in addition to a whole life annuity, one or more temporary life annuities for the lives of children. Amended 1040 In both examples, the taxpayer elects to use Tables V through VIII. Amended 1040 If you need the value of the refund feature for a joint and survivor annuity, write to the Internal Revenue Service as explained under Requesting a Ruling on Taxation of Annuity near the end of this publication. Amended 1040 Example 1. Amended 1040 At age 65, Barbara bought for $21,053 an annuity with a refund feature. Amended 1040 She will get $100 a month for life. Amended 1040 Barbara's contract provides that if she does not live long enough to recover the full $21,053, similar payments will be made to her surviving beneficiary until a total of $21,053 has been paid under the contract. Amended 1040 In this case, the contract cost and the total guaranteed return are the same ($21,053). Amended 1040 Barbara's investment in the contract is figured as follows: Net cost $21,053 Amount to be received annually $1,200   Number of years for which payment is guaranteed ($21,053 divided by $1,200) 17. Amended 1040 54   Rounded to nearest whole number of years 18   Percentage from Actuarial Table VII for age 65 with 18 years of guaranteed payments 15%   Value of the refund feature (rounded to the nearest dollar)—15% of $21,053 3,158 Investment in the contract, adjusted for value of refund feature $17,895       If the total guaranteed return were less than the $21,053 net cost of the contract, Barbara would apply the appropriate percentage from the tables to the lesser amount. Amended 1040 For example, if the contract guaranteed the $100 monthly payments for 17 years to Barbara's estate or beneficiary if she were to die before receiving all the payments for that period, the total guaranteed return would be $20,400 ($100 × 12 × 17 years). Amended 1040 In this case, the value of the refund feature would be $2,856 (14% of $20,400) and Barbara's investment in the contract would be $18,197 ($21,053 minus $2,856) instead of $17,895. Amended 1040 Example 2. Amended 1040 John died while still employed. Amended 1040 His widow, Eleanor, age 48, receives $171 a month for the rest of her life. Amended 1040 John's son, Elmer, age 9, receives $50 a month until he reaches age 18. Amended 1040 John's contributions to the retirement fund totaled $7,559. Amended 1040 45, with interest on those contributions of $1,602. Amended 1040 53. Amended 1040 The guarantee or total refund feature of the contract is $9,161. Amended 1040 98 ($7,559. Amended 1040 45 plus $1,602. Amended 1040 53). Amended 1040 The adjustment in the investment in the contract is figured as follows: A) Expected return:*       1) Widow's expected return:         Annual annuity ($171 × 12) $2,052       Multiplied by factor from Table V         (nearest age 48) 34. Amended 1040 9 $71,614. Amended 1040 80   2) Child's expected return:         Annual annuity ($50 × 12) $600       Multiplied by factor from         Table VIII (nearest age 9         for term of 9 years) 9. Amended 1040 0 5,400. Amended 1040 00   3) Total expected return   $77,014. Amended 1040 80 B) Adjustment for refund feature:       1) Contributions (net cost) $7,559. Amended 1040 45   2) Guaranteed amount (contributions of $7,559. Amended 1040 45 plus interest of $1,602. Amended 1040 53) $9,161. Amended 1040 98   3) Minus: Expected return under child's (temporary life) annuity (A(2)) 5,400. Amended 1040 00   4) Net guaranteed amount $3,761. Amended 1040 98   5) Multiple from Table VII (nearest age 48 for 2 years duration (recovery of $3,761. Amended 1040 98 at $171 a month to nearest whole year)) 0%   6) Adjustment required for value of refund feature rounded to the nearest whole dollar  (0% × $3,761. Amended 1040 98, the smaller of B(3) or B(6)) 0 *Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Amended 1040 See the discussion of expected return, later in this publication. Amended 1040 Free IRS help. Amended 1040   If you need to request assistance to figure the value of the refund feature, see Requesting a Ruling on Taxation of Annuity near the end of this publication. Amended 1040 Expected Return Your expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Amended 1040 The following discussions explain how to figure the expected return with each type of annuity. Amended 1040 A person's age, for purposes of figuring the expected return, is the age at the birthday nearest to the annuity starting date. Amended 1040 Fixed period annuity. Amended 1040   If you will get annuity payments for a fixed number of years, without regard to your life expectancy, you must figure your expected return based on that fixed number of years. Amended 1040 It is the total amount you will get beginning at the annuity starting date. Amended 1040 You will receive specific periodic payments for a definite period of time, such as a fixed number of months (but not less than 13). Amended 1040 To figure your expected return, multiply the fixed number of months for which payments are to be made by the amount of the payment specified for each period. Amended 1040 Single life annuity. Amended 1040   If you are to get annuity payments for the rest of your life, find your expected return as follows. Amended 1040 You must multiply the amount of the annual payment by a multiple based on your life expectancy as of the annuity starting date. Amended 1040 These multiples are set out in actuarial Tables I and V near the end of this publication (see How To Use Actuarial Tables , later). Amended 1040   You may need to adjust these multiples if the payments are made quarterly, semiannually, or annually. Amended 1040 See Adjustments to Tables I, II, V, VI, and VIA following Table I. Amended 1040 Example. Amended 1040 Henry bought an annuity contract that will give him an annuity of $500 a month for his life. Amended 1040 If at the annuity starting date Henry's nearest birthday is 66, the expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table V, age 66 × 19. Amended 1040 2 Expected return $115,200 If the payments were to be made to Henry quarterly and the first payment was made one full month after the annuity starting date, Henry would adjust the 19. Amended 1040 2 multiple by +. Amended 1040 1. Amended 1040 His expected return would then be $115,800 ($6,000 × 19. Amended 1040 3). Amended 1040 Annuity for shorter of life or specified period. Amended 1040   With this type of annuity, you are to get annuity payments either for the rest of your life or until the end of a specified period, whichever period is shorter. Amended 1040 To figure your expected return, multiply the amount of your annual payment by a multiple in Table IV or VIII for temporary life annuities. Amended 1040 Find the proper multiple based on your sex (if using Table IV), your age at the annuity starting date, and the nearest whole number of years in the specified period. Amended 1040 Example. Amended 1040 Harriet purchased an annuity this year that will pay her $200 each month for five years or until she dies, whichever period is shorter. Amended 1040 She was age 65 at her birthday nearest the annuity starting date. Amended 1040 She figures the expected return as follows: Annual payment ($200 × 12 months) $2,400 Multiple shown in Table VIII, age 65, 5-year term × 4. Amended 1040 9 Expected return $11,760 She uses Table VIII (not Table IV) because all her contributions were made after June 30, 1986. Amended 1040 See Special Elections, later. Amended 1040 Joint and survivor annuities. Amended 1040   If you have an annuity that pays you a periodic income for life and after your death provides an identical lifetime periodic income to your spouse (or some other person), you figure the expected return based on your combined life expectancies. Amended 1040 To figure the expected return, multiply the annual payment by a multiple in Table II or VI based on your joint life expectancies. Amended 1040 If your payments are made quarterly, semiannually, or annually, you may need to adjust these multiples. Amended 1040 See Adjustments to Tables I, II, V, VI, and VIA following Table I near the end of this publication. Amended 1040 Example. Amended 1040 John bought a joint and survivor annuity providing payments of $500 a month for his life, and, after his death, $500 a month for the remainder of his wife's life. Amended 1040 At John's annuity starting date, his age at his nearest birthday is 70 and his wife's at her nearest birthday is 67. Amended 1040 The expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table VI, ages 67 and 70 × 22. Amended 1040 0 Expected return $132,000 Different payments to survivor. Amended 1040   If your contract provides that payments to a survivor annuitant will be different from the amount you receive, you must use a computation which accounts for both the joint lives of the annuitants and the life of the survivor. Amended 1040 Example 1. Amended 1040 Gerald bought a contract providing for payments to him of $500 a month for life and, after his death, payments to his wife, Mary, of $350 a month for life. Amended 1040 If, at the annuity starting date, Gerald's nearest birthday is 70 and Mary's is 67, the expected return under the contract is figured as follows: Combined multiple for Gerald and Mary, ages 70 and 67 (from Table VI)   22. Amended 1040 0 Multiple for Gerald, age 70 (from Table V)   16. Amended 1040 0 Difference: Multiple applicable to Mary   6. Amended 1040 0 Gerald's annual payment ($500 × 12) $6,000   Gerald's multiple 16. Amended 1040 0   Gerald's expected return   $96,000 Mary's annual payment ($350 × 12) $4,200   Mary's multiple 6. Amended 1040 0   Mary's expected return   25,200 Total expected return under the contract   $121,200 Example 2. Amended 1040 Your husband died while still employed. Amended 1040 Under the terms of his employer's retirement plan, you are entitled to get an immediate annuity of $400 a month for the rest of your life or until you remarry. Amended 1040 Your daughters, Marie and Jean, are each entitled to immediate temporary life annuities of $150 a month until they reach age 18. Amended 1040 You were 50 years old at the annuity starting date. Amended 1040 Marie was 16 and Jean was 14. Amended 1040 Using the multiples shown in Tables V and VIII at the end of this publication, the total expected return on the annuity starting date is $169,680, figured as follows: Widow, age 50 (multiple from Table V—33. Amended 1040 1 × $4,800 annual payment) $158,880 Marie, age 16 for 2 years duration (multiple from Table VIII—2. Amended 1040 0 × $1,800 annual payment) 3,600 Jean, age 14 for 4 years duration (multiple from Table VIII—4. Amended 1040 0 × $1,800 annual payment) 7,200 Total expected return $169,680 No computation of expected return is made based on your husband's age at the date of death because he died before the annuity starting date. Amended 1040 Computation Under the General Rule Note. Amended 1040 Variable annuities use a different computation for determining the exclusion amounts. Amended 1040 See Variable annuities later. Amended 1040 Under the General Rule, you figure the taxable part of your annuity by using the following steps: Step 1. Amended 1040   Figure the amount of your investment in the contract, including any adjustments for the refund feature and the death benefit exclusion, if applicable. Amended 1040 See Death benefit exclusion , earlier. Amended 1040 Step 2. Amended 1040   Figure your expected return. Amended 1040 Step 3. Amended 1040   Divide Step 1 by Step 2 and round to three decimal places. Amended 1040 This will give you the exclusion percentage. Amended 1040 Step 4. Amended 1040   Multiply the exclusion percentage by the first regular periodic payment. Amended 1040 The result is the tax-free part of each pension or annuity payment. Amended 1040   The tax-free part remains the same even if the total payment increases due to variation in the annuity amount such as cost of living increases, or you outlive the life expectancy factor used. Amended 1040 However, if your annuity starting date is after 1986, the total amount of annuity income that is tax free over the years cannot exceed your net cost. Amended 1040   Each annuitant applies the same exclusion percentage to his or her initial payment called for in the contract. Amended 1040 Step 5. Amended 1040   Multiply the tax-free part of each payment (step 4) by the number of payments received during the year. Amended 1040 This will give you the tax-free part of the total payment for the year. Amended 1040    In the first year of your annuity, your first payment or part of your first payment may be for a fraction of the payment period. Amended 1040 This fractional amount is multiplied by your exclusion percentage to get the tax-free part. Amended 1040 Step 6. Amended 1040   Subtract the tax-free part from the total payment you received. Amended 1040 The rest is the taxable part of your pension or annuity. Amended 1040 Example 1. Amended 1040 You purchased an annuity with an investment in the contract of $10,800. Amended 1040 Under its terms, the annuity will pay you $100 a month for life. Amended 1040 The multiple for your age (age 65) is 20. Amended 1040 0 as shown in Table V. Amended 1040 Your expected return is $24,000 (20 × 12 × $100). Amended 1040 Your cost of $10,800, divided by your expected return of $24,000, equals 45. Amended 1040 0%. Amended 1040 This is the percentage you will not have to include in income. Amended 1040 Each year, until your net cost is recovered, $540 (45% of $1,200) will be tax free and you will include $660 ($1,200 − $540) in your income. Amended 1040 If you had received only six payments of $100 ($600) during the year, your exclusion would have been $270 (45% of $100 × 6 payments). Amended 1040 Example 2. Amended 1040 Gerald bought a joint and survivor annuity. Amended 1040 Gerald's investment in the contract is $62,712 and the expected return is $121,200. Amended 1040 The exclusion percentage is 51. Amended 1040 7% ($62,712 ÷ $121,200). Amended 1040 Gerald will receive $500 a month ($6,000 a year). Amended 1040 Each year, until his net cost is recovered, $3,102 (51. Amended 1040 7% of his total payments received of $6,000) will be tax free and $2,898 ($6,000 − $3,102) will be included in his income. Amended 1040 If Gerald dies, his wife will receive $350 a month ($4,200 a year). Amended 1040 If Gerald had not recovered all of his net cost before his death, his wife will use the same exclusion percentage (51. Amended 1040 7%). Amended 1040 Each year, until the entire net cost is recovered, his wife will receive $2,171. Amended 1040 40 (51. Amended 1040 7% of her payments received of $4,200) tax free. Amended 1040 She will include $2,028. Amended 1040 60 ($4,200 − $2,171. Amended 1040 40) in her income tax return. Amended 1040 Example 3. Amended 1040 Using the same facts as Example 2 under Different payments to survivor, you are to receive an annual annuity of $4,800 until you die or remarry. Amended 1040 Your two daughters each receive annual annuities of $1,800 until they reach age 18. Amended 1040 Your husband contributed $25,576 to the plan. Amended 1040 You are eligible for the $5,000 death benefit exclusion because your husband died before August 21, 1996. Amended 1040 Adjusted Investment in the Contract Contributions $25,576 Plus: Death benefit exclusion 5,000 Adjusted investment in the contract $30,576 The total expected return, as previously figured (in Example 2 under Different payments to survivor), is $169,680. Amended 1040 The exclusion percentage of 18. Amended 1040 0% ($30,576 ÷ $169,680) applies to the annuity payments you and each of your daughters receive. Amended 1040 Each full year $864 (18. Amended 1040 0% × $4,800) will be tax free to you, and you must include $3,936 in your income tax return. Amended 1040 Each year, until age 18, $324 (18. Amended 1040 0% × $1,800) of each of your daughters' payments will be tax free and each must include the balance, $1,476, as income on her own income tax return. Amended 1040 Part-year payments. Amended 1040   If you receive payments for only part of a year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments received during the year. Amended 1040   If you receive amounts during the year that represent 12 payments, one for each month in that year, and an amount that represents payments for months in a prior year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments the amounts received represent. Amended 1040 For instance, if you received amounts during the year that represent the 12 payments for that year plus an amount that represents three payments for a prior year, multiply that amount by the 15 (12 + 3) payments received that the year. Amended 1040   If you received a fractional payment, follow Step 5, discussed earlier. Amended 1040 This gives you the tax-free part of your total payment. Amended 1040 Example. Amended 1040 On September 28, Mary bought an annuity contract for $22,050 that will give her $125 a month for life, beginning October 30. Amended 1040 The applicable multiple from Table V is 23. Amended 1040 3 (age 61). Amended 1040 Her expected return is $34,950 ($125 × 12 × 23. Amended 1040 3). Amended 1040 Mary's investment in the contract of $22,050, divided by her expected return of $34,950, equals 63. Amended 1040 1%. Amended 1040 Each payment received will consist of 63. Amended 1040 1% return of cost and 36. Amended 1040 9% taxable income, until her net cost of the contract is fully recovered. Amended 1040 During the first year, Mary received three payments of $125, or $375, of which $236. Amended 1040 63 (63. Amended 1040 1% × $375) is a return of cost. Amended 1040 The remaining $138. Amended 1040 37 is included in income. Amended 1040 Increase in annuity payments. Amended 1040   The tax-free amount remains the same as the amount figured at the annuity starting date, even if the payment increases. Amended 1040 All increases in the installment payments are fully taxable. Amended 1040   However, if your annuity payments are scheduled to increase at a definite date in the future you must figure the expected return for that annuity using the method described in section 1. Amended 1040 72-5(a)(5) of the regulations. Amended 1040 Example. Amended 1040 Joe's wife died while she was still employed and, as her beneficiary, he began receiving an annuity of $147 per month. Amended 1040 In figuring the taxable part, Joe elects to use Tables V through VIII. Amended 1040 The cost of the contract was $7,938, consisting of the sum of his wife's net contributions, adjusted for any refund feature. Amended 1040 His expected return as of the annuity starting date is $35,280 (age 65, multiple of 20. Amended 1040 0 × $1,764 annual payment). Amended 1040 The exclusion percentage is $7,938 ÷ $35,280, or 22. Amended 1040 5%. Amended 1040 During the year he received 11 monthly payments of $147, or $1,617. Amended 1040 Of this amount, 22. Amended 1040 5% × $147 × 11 ($363. Amended 1040 83) is tax free as a return of cost and the balance of $1,253. Amended 1040 17 is taxable. Amended 1040 Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 × $166). Amended 1040 The tax-free part is still only 22. Amended 1040 5% of the annuity payments as of the annuity starting date (22. Amended 1040 5% × $147 × 12 = $396. Amended 1040 90 for a full year). Amended 1040 The increase of $228 ($1,992 − $1,764 (12 × $147)) is fully taxable. Amended 1040 Variable annuities. Amended 1040   For variable annuity payments, figure the amount of each payment that is tax free by dividing your investment in the contract (adjusted for any refund feature) by the total number of periodic payments you expect to get under the contract. Amended 1040   If the annuity is for a definite period, you determine the total number of payments by multiplying the number of payments to be made each year by the number of years you will receive payments. Amended 1040 If the annuity is for life, you determine the total number of payments by using a multiple from the appropriate actuarial table. Amended 1040 Example. Amended 1040 Frank purchased a variable annuity at age 65. Amended 1040 The total cost of the contract was $12,000. Amended 1040 The annuity starting date is January 1 of the year of purchase. Amended 1040 His annuity will be paid, starting July 1, in variable annual installments for his life. Amended 1040 The tax-free amount of each payment, until he has recovered his cost of his contract, is: Investment in the contract $12,000 Number of expected annual payments (multiple for age 65 from Table V) 20 Tax-free amount of each payment ($12,000 ÷ 20) $600 If Frank's first payment is $920, he includes only $320 ($920 − $600) in his gross income. Amended 1040   If the tax-free amount for a year is more than the payments you receive in that year, you may choose, when you receive the next payment, to refigure the tax-free part. Amended 1040 Divide the amount of the periodic tax-free part that is more than the payment you received by the remaining number of payments you expect. Amended 1040 The result is added to the previously figured periodic tax-free part. Amended 1040 The sum is the amount of each future payment that will be tax free. Amended 1040 Example. Amended 1040 Using the facts of the previous example about Frank, assume that after Frank's $920 payment, he received $500 in the following year, and $1,200 in the year after that. Amended 1040 Frank does not pay tax on the $500 (second year) payment because $600 of each annual pension payment is tax free. Amended 1040 Since the $500 payment is less than the $600 annual tax-free amount, he may choose to refigure his tax-free part when he receives his $1,200 (third year) payment, as follows: Amount tax free in second year $600. Amended 1040 00 Amount received in second year 500. Amended 1040 00 Difference $100. Amended 1040 00 Number of remaining payments after the first 2 payments (age 67, from Table V) 18. Amended 1040 4 Amount to be added to previously determined annual tax-free part ($100 ÷ 18. Amended 1040 4) $5. Amended 1040 43 Revised annual tax-free part for third and later years ($600 + $5. Amended 1040 43) $605. Amended 1040 43 Amount taxable in third year ($1,200 − $605. Amended 1040 43) $594. Amended 1040 57 If you choose to refigure your tax-free amount,   you must file a statement with your income tax return stating that you are refiguring the tax-free amount in accordance with the rules of section 1. Amended 1040 72–4(d)(3) of the Income Tax Regulations. Amended 1040 The statement must also show the following information: The annuity starting date and your age on that date. Amended 1040 The first day of the first period for which you received an annuity payment in the current year. Amended 1040 Your investment in the contract as originally figured. Amended 1040 The total of all amounts received tax free under the annuity from the annuity starting date through the first day of the first period for which you received an annuity payment in the current tax year. Amended 1040 Exclusion Limits Your annuity starting date determines the total amount of annuity income that you can exclude from income over the years. Amended 1040 Exclusion limited to net cost. Amended 1040   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a return of your cost cannot exceed your net cost (figured without any reduction for a refund feature). Amended 1040 This is the unrecovered investment in the contract as of the annuity starting date. Amended 1040   If your annuity starting date is after July 1, 1986, any unrecovered net cost at your (or last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Amended 1040 This deduction is not subject to the 2%-of-adjusted-gross-income limit. Amended 1040 Example 1. Amended 1040 Your annuity starting date is after 1986. Amended 1040 Your total cost is $12,500, and your net cost is $10,000, taking into account certain adjustments. Amended 1040 There is no refund feature. Amended 1040 Your monthly annuity payment is $833. Amended 1040 33. Amended 1040 Your exclusion ratio is 12% and you exclude $100 a month. Amended 1040 Your exclusion ends after 100 months, when you have excluded your net cost of $10,000. Amended 1040 Thereafter, your annuity payments are fully taxable. Amended 1040 Example 2. Amended 1040 The facts are the same as in Example 1, except that there is a refund feature, and you die after 5 years with no surviving annuitant. Amended 1040 The adjustment for the refund feature is $1,000, so the investment in the contract is $9,000. Amended 1040 The exclusion ratio is 10. Amended 1040 8%, and your monthly exclusion is $90. Amended 1040 After 5 years (60 months), you have recovered tax free only $5,400 ($90 x 60). Amended 1040 An itemized deduction for the unrecovered net cost of $4,600 ($10,000 net cost minus $5,400) may be taken on your final income tax return. Amended 1040 Your unrecovered investment is determined without regard to the refund feature adjustment, discussed earlier, under Adjustments. Amended 1040 Exclusion not limited to net cost. Amended 1040   If your annuity starting date was before 1987, you could continue to take your monthly exclusion for as long as you receive your annuity. Amended 1040 If you choose a joint and survivor annuity, your survivor continues to take the survivor's exclusion figured as of the annuity starting date. Amended 1040 The total exclusion may be more than your investment in the contract. Amended 1040 How To Use Actuarial Tables In figuring, under the General Rule, the taxable part of your annuity payments that you are to get for the rest of your life (rather than for a fixed number of years), you must use one or more of the actuarial tables in this publication. Amended 1040 Unisex Annuity Tables Effective July 1, 1986, the Internal Revenue Service adopted new annuity Tables V through VIII, in which your sex is not considered when determining the applicable factor. Amended 1040 These tables correspond to the old Tables I through IV. Amended 1040 In general, Tables V through VIII must be used if you made contributions to the retirement plan after June 30, 1986. Amended 1040 If you made no contributions to the plan after June 30, 1986, generally you must use only Tables I through IV. Amended 1040 However, if you received an annuity payment after June 30, 1986, you may elect to use Tables V through VIII (see Annuity received after June 30, 1986, later). Amended 1040 Special Elections Although you generally must use Tables V through VIII if you made contributions to the retirement plan after June 30, 1986, and Tables I through IV if you made no contributions after June 30, 1986, you can make the following special elections to select which tables to use. Amended 1040 Contributions made both before July 1986 and after June 1986. Amended 1040   If you made contributions to the retirement plan both before July 1986 and after June 1986, you may elect to use Tables I through IV for the pre-July 1986 cost of the contract, and Tables V through VIII for the post-June 1986 cost. Amended 1040 (See the examples below. Amended 1040 )    Making the election. Amended 1040 Attach this statement to your income tax return for the first year in which you receive an annuity:    “I elect to apply the provisions of paragraph (d) of section 1. Amended 1040 72–6 of the Income Tax Regulations. Amended 1040 ”   The statement must also include your name, address, social security number, and the amount of the pre-July 1986 investment in the contract. Amended 1040   If your investment in the contract includes post-June 1986 contributions to the plan, and you do not make the election to use Tables I through IV and Tables V through VIII, then you can only use Tables V through VIII in figuring the taxable part of your annuity. Amended 1040 You must also use Tables V through VIII if you are unable or do not wish to determine the portions of your contributions which were made before July 1, 1986, and after June 30, 1986. Amended 1040    Advantages of election. Amended 1040 In general, a lesser amount of each annual annuity payment is taxable if you separately figure your exclusion ratio for pre-July 1986 and post-June 1986 contributions. Amended 1040    If you intend to make this election, save your records that substantiate your pre-July 1986 and post-June 1986 contributions. Amended 1040 If the death benefit exclusion applies (see discussion, earlier), you do not have to apportion it between the pre-July 1986 and the post-June 1986 investment in the contract. Amended 1040   The following examples illustrate the separate computations required if you elect to use Tables I through IV for your pre-July 1986 investment in the contract and Tables V through VIII for your post-June 1986 investment in the contract. Amended 1040 Example 1. Amended 1040 Bill, who is single, contributed $42,000 to the retirement plan and will receive an annual annuity of $24,000 for life. Amended 1040 Payment of the $42,000 contribution is guaranteed under a refund feature. Amended 1040 Bill is 55 years old as of the annuity starting date. Amended 1040 For figuring the taxable part of Bill's annuity, he chose to make separate computations for his pre-July 1986 investment in the contract of $41,300, and for his post-June 1986 investment in the contract of $700. Amended 1040       Pre- July 1986   Post- June 1986 A. Amended 1040 Adjustment for refund feature         1) Net cost $41,300   $700   2) Annual annuity—$24,000  ($41,300/$42,000 × $24,000) $23,600       ($700/$42,000 × $24,000)     $400   3) Guarantee under contract $41,300   $700   4) No. Amended 1040 of years payments  guaranteed (rounded), A(3) ÷ A(2) 2   2   5) Applicable percentage from  Tables III and VII 1%   0%   6) Adjustment for value of refund  feature, A(5) × smaller of A(1)  or A(3) $413   $0 B. Amended 1040 Investment in the contract         1) Net cost $41,300   $700   2) Minus: Amount in A(6) 413   0   3) Investment in the contract $40,887   $700 C. Amended 1040 Expected return         1) Annual annuity receivable $24,000   $24,000   2) Multiples from Tables I and V 21. Amended 1040 7   28. Amended 1040 6   3) Expected return, C(1) × C(2) $520,800   $686,400 D. Amended 1040 Tax-free part of annuity         1) Exclusion ratio as decimal,  B(3) ÷ C(3) . Amended 1040 079   . Amended 1040 001   2) Tax-free part, C(1) × D(1) $1,896   $24 The tax-free part of Bill's total annuity is $1,920 ($1,896 plus $24). Amended 1040 The taxable part of his annuity is $22,080 ($24,000 minus $1,920). Amended 1040 If the annuity starting date is after 1986, the exclusion over the years cannot exceed the net cost (figured without any reduction for a refund feature). Amended 1040 Example 2. Amended 1040 Al is age 62 at his nearest birthday to the annuity starting date. Amended 1040 Al's wife is age 60 at her nearest birthday to the annuity starting date. Amended 1040 The joint and survivor annuity pays $1,000 per month to Al for life, and $500 per month to Al's surviving wife after his death. Amended 1040 The pre-July 1986 investment in the contract is $53,100 and the post-June 1986 investment in the contract is $7,000. Amended 1040 Al makes the election described in Example 1 . Amended 1040 For purposes of this example, assume the refund feature adjustment is zero. Amended 1040 If an adjustment is required, IRS will figure the amount. Amended 1040 See Requesting a Ruling on Taxation of Annuity near the end of this publication. Amended 1040       Pre-  July 1986   Post-  June 1986 A. Amended 1040 Adjustment for refund feature         1) Net cost $53,100   $7,000   2) Annual annuity—$12,000  ($53,100/$60,100 × $12,000) $10,602       ($7,000/$60,100 × $12,000)     $1,398   3) Guaranteed under the contract $53,100   $7,000   4) Number of years guaranteed,  rounded, A(3) ÷ A(2) 5   5   5) Applicable percentages 0%   0%   6) Refund feature adjustment, A(5) × smaller of A(1) or A(3) 0   0 B. Amended 1040 Investment in the contract         1) Net cost $53,100   $7,000   2) Refund feature adjustment 0   0   3) Investment in the contract adjusted for refund feature $53,100   $7,000 C. Amended 1040 Expected return         1) Multiple for both annuitants from Tables II and VI 25. Amended 1040 4   28. Amended 1040 8   2) Multiple for first annuitant from Tables I and V 16. Amended 1040 9   22. Amended 1040 5   3) Multiple applicable to surviving annuitant, subtract C(2) from C(1) 8. Amended 1040 5   6. Amended 1040 3   4) Annual annuity to surviving annuitant $6,000   $6,000   5) Portion of expected return for surviving annuitant, C(4) × C(3) $51,000   $37,800   6) Annual annuity to first annuitant $12,000   $12,000   7) Plus: Portion of expected return for first annuitant, C(6) × C(2) $202,800   $270,000   8) Expected return for both annuitants, C(5) + C(7) $253,800   $307,800 D. Amended 1040 Tax-free part of annuity         1) Exclusion ratio as a decimal, B(3) ÷ C(8) . Amended 1040 209   . Amended 1040 023   2) Retiree's tax-free part of annuity, C(6) × D(1) $2,508   $276   3) Survivor's tax-free part of annuity, C(4) × D(1) $1,254   $138 The tax-free part of Al's total annuity is $2,784 ($2,508 + $276). Amended 1040 The taxable part of his annuity is $9,216 ($12,000 − $2,784). Amended 1040 The exclusion over the years cannot exceed the net cost of the contract (figured without any reduction for a refund feature) if the annuity starting date is after 1986. Amended 1040 After Al's death, his widow will apply the same exclusion percentages (20. Amended 1040 9% and 2. Amended 1040 3%) to her annual annuity of $6,000 to figure the tax-free part of her annuity. Amended 1040 Annuity received after June 30, 1986. Amended 1040   If you receive an annuity payment after June 30, 1986, (regardless of your annuity starting date), you may elect to treat the entire cost of the contract as post-June 1986 cost (even if you made no post-June 1986 contributions to the plan) and use Tables V through VIII. Amended 1040 Once made, you cannot revoke the election, which will apply to all payments during the year and in any later year. Amended 1040    Make the election by attaching the following statement to your income tax return. Amended 1040    “I elect, under section 1. Amended 1040 72–9 of the Income Tax Regulations, to treat my entire cost of the contract as a post-June 1986 cost of the plan. Amended 1040 ”   The statement must also include your name, address, and social security number. Amended 1040   You should also indicate you are making this election if you are unable or do not wish to determine the parts of your contributions which were made before July 1, 1986, and after June 30, 1986. Amended 1040 Disqualifying form of payment or settlement. Amended 1040   If your annuity starting date is after June 30, 1986, and the contract provides for a disqualifying form of payment or settlement, such as an option to receive a lump sum in full discharge of the obligation under the contract, the entire investment in the contract is treated as post-June 1986 investment in the contract. Amended 1040 See regulations section 1. Amended 1040 72–6(d)(3) for additional examples of disqualifying forms of payment or settlement. Amended 1040 You can find the Income Tax Regulations in many libraries and at Internal Revenue Service Offices. Amended 1040 Worksheets for Determining Taxable Annuity Worksheets I and II. Amended 1040   Worksheets I and II follow for determining your taxable annuity under Regulations Section 1. Amended 1040 72–6(d)(6) Election. Amended 1040 Worksheet I For Determining Taxable Annuity Under Regulations Section 1. Amended 1040 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity               Pre-July 1986   Post-June 1986 A. Amended 1040   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Amended 1040 )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)   Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages* from Tables III and VII                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Amended 1040 If not, the IRS will calculate the refund feature percentage. Amended 1040             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Amended 1040   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund feature:                   B(1) minus B(2)                             C. Amended 1040   Expected Return             1)   Annual Annuity:                   12 times monthly annuity**             2)   Expected return multiples from Tables I and V             3)     Expected return:                   C(1) times C(2)                             D. Amended 1040   Tax-Free Part of Annuity             1)     Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(3)             2)     Tax-free part of annuity:                   C(1) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Amended 1040     Worksheet II For Determining Taxable Annuity Under Regulations Section 1. Amended 1040 72-6(d)(6) Election For Joint and Survivor Annuity               Pre-July 1986   Post-June 1986 A. Amended 1040   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Amended 1040 )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)     Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages*                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Amended 1040 If not, the IRS will calculate the refund feature percentage. Amended 1040             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Amended 1040   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund future:                   B(1) minus B(2)                             C. Amended 1040   Expected Return             1)   Multiples for both annuitants, Tables II and VI             2)   Multiple for retiree. Amended 1040 Tables I and VI             3)   Multiple for survivor:                   C(1) minus C(2)             4)   Annual annuity to survivor:                   12 times potential monthly rate for survivor**             5)   Expected return for survivor:                   C(3) times C(4)             6)   Annual annuity to retiree:                   12 times monthly rate for retiree**             7)   Expected return for retiree:                   C(2) times C(6)             8)   Total expected return:                   C(5) plus C(7)                             D. Amended 1040   Tax-Free Part of Annuity             1)   Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(8)             2)   Retiree's tax-free part of annuity:                   C(6) times D(1)             3)   Survivor's tax-free part of annuity, if surviving after death of retiree:                   C(4) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Amended 1040   Actuarial Tables Please click here for the text description of the image. Amended 1040 Actuarial Tables Please click here for the text description of the image. Amended 1040 Actuarial Tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Please click here for the text description of the image. Amended 1040 Actuarial tables Requesting a Ruling on Taxation of Annuity If you are a retiree, or the survivor of an employee or retiree, you may ask the Internal Revenue Service to help you determine the taxation of your annuity. Amended 1040 If you make this request, you are asking for a ruling. Amended 1040 User fee. Amended 1040   Under the law in effect at the time this publication went to print, the IRS must charge a user fee for all ruling requests. Amended 1040 You should call the IRS for the proper fee. Amended 1040 A request solely for the value of the refund feature is not treated as a ruling request and requires no fee. Amended 1040 Send your request to:     Internal Revenue Service  Attention: EP Letter Rulings P. Amended 1040 O. Amended 1040 Box 27063 McPherson Station Washington, DC 20038 The user fee is allowed as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit. Amended 1040 When to make the request. Amended 1040   Please note that requests sent between February 1 and April 15 may experience some delay. Amended 1040 We process requests in the order received, and we will reply to your request as soon as we can process it. Amended 1040 If you do not receive your ruling by the required filing date, you may use Form 4868, Application for Automatic Extension of Time To File U. Amended 1040 S. Amended 1040 Individual Income Tax Return, to get an extension of time to file. Amended 1040 Information you must furnish. Amended 1040   You must furnish the information listed below so the IRS can comply with your request. Amended 1040 Failure to furnish the information will result in a delay in processing your request. Amended 1040 Please send only copies of the following documents, as the IRS retains all material sent for its records: A letter explaining the question(s) you wish to have resolved or the information you need from the ruling. Amended 1040 Copies of any documents showing distributions, annuity rates, and annuity options available to you. Amended 1040 A copy of any Form 1099–R you received since your annuity began. Amended 1040 A statement indicating whether you have filed your return for the year for which you are making the request. Amended 1040 If you have requested an extension of time to file that return, please indicate the extension date. Amended 1040 Your daytime phone number. Amended 1040 Your current mailing address. Amended 1040 A power of attorney if someone other than you, an attorney, a certified public accountant, or an enrolled agent is signing this request. Amended 1040 Form 2848, Power of Attorney and Declaration of Representative, may be used for this purpose. Amended 1040 A completed Tax Information Sheet (or facsimile) shown on the next page. Amended 1040 Sign and date the Disclosure and Perjury Statement (or facsimile) at the end of the tax information sheet. Amended 1040 This statement must be signed by the retiree or the survivor annuitant. Amended 1040 It cannot be signed by a representative. Amended 1040 Tax Information Sheet Please click here for the text description of the image. Amended 1040 Tax Information Sheet Please click here for the text description of the image. Amended 1040 Tax Information Sheet (continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Amended 1040 Free help with your tax return. Amended 1040   You can get free help preparing your return nationwide from IRS-certified volunteers. Amended 1040 The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Amended 1040 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Amended 1040 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. Amended 1040 In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Amended 1040 To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Amended 1040 gov, download the IRS2Go app, or call 1-800-906-9887. Amended 1040   As part of the TCE program, AARP offers the Tax-Aide counseling program. Amended 1040 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Amended 1040 aarp. Amended 1040 org/money/taxaide or call 1-888-227-7669. Amended 1040 For more information on these programs, go to IRS. Amended 1040 gov and enter “VITA” in the search box. Amended 1040 Internet. Amended 1040    IRS. Amended 1040 gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Amended 1040 Download the free IRS2Go app from the iTunes app store or from Google Play. Amended 1040 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. Amended 1040 Check the status of your 2013 refund with the Where's My Refund? application on IRS. Amended 1040 gov or download the IRS2Go app and select the Refund Status option. Amended 1040 The IRS issues more than 9 out of 10 refunds in less than 21 days. Amended 1040 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. Amended 1040 You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Amended 1040 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Amended 1040 Use the Interactive Tax Assistant (ITA) to research your tax questions. Amended 1040 No need to wait on the phone or stand in line. Amended 1040 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. Amended 1040 When you reach the response screen, you can print the entire interview and the final response for your records. Amended 1040 New subject areas are added on a regular basis. Amended 1040  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Amended 1040 gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Amended 1040 You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Amended 1040 The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Amended 1040 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. Amended 1040 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. Amended 1040 You can also ask the IRS to mail a return or an account transcript to you. Amended 1040 Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Amended 1040 gov or by calling 1-800-908-9946. Amended 1040 Tax return and tax account transcripts are generally available for the current year and the past three years. Amended 1040 Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Amended 1040 Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Amended 1040 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. Amended 1040 Check the status of your amended return using Where's My Amended Return? Go to IRS. Amended 1040 gov and enter Where's My Amended Return? in the search box. Amended 1040 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Amended 1040 It can take up to 3 weeks from the date you mailed it to show up in our system. Amended 1040 Make a payment using one of several safe and convenient electronic payment options available on IRS. Amended 1040 gov. Amended 1040 Select the Payment tab on the front page of IRS. Amended 1040 gov for more information. Amended 1040 Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Amended 1040 Figure your income tax withholding with the IRS Withholding Calculator on IRS. Amended 1040 gov. Amended 1040 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. Amended 1040 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Amended 1040 gov. Amended 1040 Request an Electronic Filing PIN by going to IRS. Amended 1040 gov and entering Electronic Filing PIN in the search box. Amended 1040 Download forms, instructions and publications, including accessible versions for people with disabilities. Amended 1040 Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Amended 1040 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Amended 1040 An employee can answer questions about your tax account or help you set up a payment plan. Amended 1040 Before you visit, check the Office Locator on IRS. Amended 1040 gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Amended 1040 If you have a special need, such as a disability, you can request an appointment. Amended 1040 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Amended 1040 Apply for an Employer Identification Number (EIN). Amended 1040 Go to IRS. Amended 1040 gov and enter Apply for an EIN in the search box. Amended 1040 Read the Internal Revenue Code, regulations, or other official guidance. Amended 1040 Read Internal Revenue Bulletins. Amended 1040 Sign up to receive local and national tax news and more by email. Amended 1040 Just click on “subscriptions” above the search box on IRS. Amended 1040 gov and choose from a variety of options. Amended 1040    Phone. Amended 1040 You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Amended 1040 Download the free IRS2Go app from the iTunes app store or from Google Play. Amended 1040 Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Amended 1040 gov, or download the IRS2Go app. Amended 1040 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. Amended 1040 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Amended 1040 Mos