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Can I Do My 2012 Taxes Now

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Can I Do My 2012 Taxes Now

Can i do my 2012 taxes now Publication 575 - Main Content Table of Contents General InformationPension. Can i do my 2012 taxes now Annuity. Can i do my 2012 taxes now Qualified employee plan. Can i do my 2012 taxes now Qualified employee annuity. Can i do my 2012 taxes now Designated Roth account. Can i do my 2012 taxes now Tax-sheltered annuity plan. Can i do my 2012 taxes now Fixed-period annuities. Can i do my 2012 taxes now Annuities for a single life. Can i do my 2012 taxes now Joint and survivor annuities. Can i do my 2012 taxes now Variable annuities. Can i do my 2012 taxes now Disability pensions. Can i do my 2012 taxes now Variable Annuities Section 457 Deferred Compensation Plans Disability Pensions Insurance Premiums for Retired Public Safety Officers Railroad Retirement Benefits Withholding Tax and Estimated Tax Cost (Investment in the Contract)Foreign employment contributions while a nonresident alien. Can i do my 2012 taxes now Taxation of Periodic PaymentsPeriod of participation. Can i do my 2012 taxes now Fully Taxable Payments Partly Taxable Payments Taxation of Nonperiodic PaymentsFiguring the Taxable Amount Loans Treated as Distributions Transfers of Annuity Contracts Lump-Sum Distributions RolloversExceptions. Can i do my 2012 taxes now No tax withheld. Can i do my 2012 taxes now Partial rollovers. Can i do my 2012 taxes now Frozen deposits. Can i do my 2012 taxes now Reasonable period of time. Can i do my 2012 taxes now 20% Mandatory withholding. Can i do my 2012 taxes now How to report. Can i do my 2012 taxes now How to report. Can i do my 2012 taxes now Special rule for Roth IRAs and designated Roth accounts. Can i do my 2012 taxes now Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and BeneficiariesGuaranteed payments. Can i do my 2012 taxes now How To Get Tax HelpLow Income Taxpayer Clinics General Information Definitions. Can i do my 2012 taxes now   Some of the terms used in this publication are defined in the following paragraphs. Can i do my 2012 taxes now Pension. Can i do my 2012 taxes now   A pension is generally a series of definitely determinable payments made to you after you retire from work. Can i do my 2012 taxes now Pension payments are made regularly and are based on such factors as years of service and prior compensation. Can i do my 2012 taxes now Annuity. Can i do my 2012 taxes now   An annuity is a series of payments under a contract made at regular intervals over a period of more than one full year. Can i do my 2012 taxes now They can be either fixed (under which you receive a definite amount) or variable (not fixed). Can i do my 2012 taxes now You can buy the contract alone or with the help of your employer. Can i do my 2012 taxes now Qualified employee plan. Can i do my 2012 taxes now   A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries and that meets Internal Revenue Code requirements. Can i do my 2012 taxes now It qualifies for special tax benefits, such as tax deferral for employer contributions and capital gain treatment or the 10-year tax option for lump-sum distributions (if participants qualify). Can i do my 2012 taxes now To determine whether your plan is a qualified plan, check with your employer or the plan administrator. Can i do my 2012 taxes now Qualified employee annuity. Can i do my 2012 taxes now   A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Can i do my 2012 taxes now Designated Roth account. Can i do my 2012 taxes now   A designated Roth account is a separate account created under a qualified Roth contribution program to which participants may elect to have part or all of their elective deferrals to a 401(k), 403(b), or 457(b) plan designated as Roth contributions. Can i do my 2012 taxes now Elective deferrals that are designated as Roth contributions are included in your income. Can i do my 2012 taxes now However, qualified distributions (explained later) are not included in your income. Can i do my 2012 taxes now You should check with your plan administrator to determine if your plan will accept designated Roth contributions. Can i do my 2012 taxes now Tax-sheltered annuity plan. Can i do my 2012 taxes now   A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. Can i do my 2012 taxes now Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants. Can i do my 2012 taxes now Types of pensions and annuities. Can i do my 2012 taxes now   Pensions and annuities include the following types. Can i do my 2012 taxes now Fixed-period annuities. Can i do my 2012 taxes now   You receive definite amounts at regular intervals for a specified length of time. Can i do my 2012 taxes now Annuities for a single life. Can i do my 2012 taxes now   You receive definite amounts at regular intervals for life. Can i do my 2012 taxes now The payments end at death. Can i do my 2012 taxes now Joint and survivor annuities. Can i do my 2012 taxes now   The first annuitant receives a definite amount at regular intervals for life. Can i do my 2012 taxes now After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Can i do my 2012 taxes now The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Can i do my 2012 taxes now Variable annuities. Can i do my 2012 taxes now   You receive payments that may vary in amount for a specified length of time or for life. Can i do my 2012 taxes now The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund. Can i do my 2012 taxes now Disability pensions. Can i do my 2012 taxes now   You receive disability payments because you retired on disability and have not reached minimum retirement age. Can i do my 2012 taxes now More than one program. Can i do my 2012 taxes now   You may receive employee plan benefits from more than one program under a single trust or plan of your employer. Can i do my 2012 taxes now If you participate in more than one program, you may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. Can i do my 2012 taxes now Also, you may be considered to have received more than one pension or annuity. Can i do my 2012 taxes now Your former employer or the plan administrator should be able to tell you if you have more than one contract. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now Your employer set up a noncontributory profit-sharing plan for its employees. Can i do my 2012 taxes now The plan provides that the amount held in the account of each participant will be paid when that participant retires. Can i do my 2012 taxes now Your employer also set up a contributory defined benefit pension plan for its employees providing for the payment of a lifetime pension to each participant after retirement. Can i do my 2012 taxes now The amount of any distribution from the profit-sharing plan depends on the contributions (including allocated forfeitures) made for the participant and the earnings from those contributions. Can i do my 2012 taxes now Under the pension plan, however, a formula determines the amount of the pension benefits. Can i do my 2012 taxes now The amount of contributions is the amount necessary to provide that pension. Can i do my 2012 taxes now Each plan is a separate program and a separate contract. Can i do my 2012 taxes now If you get benefits from these plans, you must account for each separately, even though the benefits from both may be included in the same check. Can i do my 2012 taxes now Distributions from a designated Roth account are treated separately from other distributions from the plan. Can i do my 2012 taxes now Qualified domestic relations order (QDRO). Can i do my 2012 taxes now   A QDRO is a judgment, decree, or order relating to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of a participant in a retirement plan. Can i do my 2012 taxes now The QDRO must contain certain specific information, such as the name and last known mailing address of the participant and each alternate payee, and the amount or percentage of the participant's benefits to be paid to each alternate payee. Can i do my 2012 taxes now A QDRO may not award an amount or form of benefit that is not available under the plan. Can i do my 2012 taxes now   A spouse or former spouse who receives part of the benefits from a retirement plan under a QDRO reports the payments received as if he or she were a plan participant. Can i do my 2012 taxes now The spouse or former spouse is allocated a share of the participant's cost (investment in the contract) equal to the cost times a fraction. Can i do my 2012 taxes now The numerator of the fraction is the present value of the benefits payable to the spouse or former spouse. Can i do my 2012 taxes now The denominator is the present value of all benefits payable to the participant. Can i do my 2012 taxes now   A distribution that is paid to a child or other dependent under a QDRO is taxed to the plan participant. Can i do my 2012 taxes now Variable Annuities The tax rules in this publication apply both to annuities that provide fixed payments and to annuities that provide payments that vary in amount based on investment results or other factors. Can i do my 2012 taxes now For example, they apply to commercial variable annuity contracts, whether bought by an employee retirement plan for its participants or bought directly from the issuer by an individual investor. Can i do my 2012 taxes now Under these contracts, the owner can generally allocate the purchase payments among several types of investment portfolios or mutual funds and the contract value is determined by the performance of those investments. Can i do my 2012 taxes now The earnings are not taxed until distributed either in a withdrawal or in annuity payments. Can i do my 2012 taxes now The taxable part of a distribution is treated as ordinary income. Can i do my 2012 taxes now Net investment income tax. Can i do my 2012 taxes now   Beginning in 2013, annuities under a nonqualified plan are included in calculating your net investment income for the net investment income tax (NIIT). Can i do my 2012 taxes now For information see the Instructions for Form 8960, Net Investment Income Tax — Individuals, Estates and Trusts. Can i do my 2012 taxes now For information on the tax treatment of a transfer or exchange of a variable annuity contract, see Transfers of Annuity Contracts under Taxation of Nonperiodic Payments, later. Can i do my 2012 taxes now Withdrawals. Can i do my 2012 taxes now   If you withdraw funds before your annuity starting date and your annuity is under a qualified retirement plan, a ratable part of the amount withdrawn is tax free. Can i do my 2012 taxes now The tax-free part is based on the ratio of your cost (investment in the contract) to your account balance under the plan. Can i do my 2012 taxes now   If your annuity is under a nonqualified plan (including a contract you bought directly from the issuer), the amount withdrawn is allocated first to earnings (the taxable part) and then to your cost (the tax-free part). Can i do my 2012 taxes now However, if you bought your annuity contract before August 14, 1982, a different allocation applies to the investment before that date and the earnings on that investment. Can i do my 2012 taxes now To the extent the amount withdrawn does not exceed that investment and earnings, it is allocated first to your cost (the tax-free part) and then to earnings (the taxable part). Can i do my 2012 taxes now   If you withdraw funds (other than as an annuity) on or after your annuity starting date, the entire amount withdrawn is generally taxable. Can i do my 2012 taxes now   The amount you receive in a full surrender of your annuity contract at any time is tax free to the extent of any cost that you have not previously recovered tax free. Can i do my 2012 taxes now The rest is taxable. Can i do my 2012 taxes now   For more information on the tax treatment of withdrawals, see Taxation of Nonperiodic Payments , later. Can i do my 2012 taxes now If you withdraw funds from your annuity before you reach age 59½, also see Tax on Early Distributions under Special Additional Taxes, later. Can i do my 2012 taxes now Annuity payments. Can i do my 2012 taxes now   If you receive annuity payments under a variable annuity plan or contract, you recover your cost tax free under either the Simplified Method or the General Rule, as explained under Taxation of Periodic Payments , later. Can i do my 2012 taxes now For a variable annuity paid under a qualified plan, you generally must use the Simplified Method. Can i do my 2012 taxes now For a variable annuity paid under a nonqualified plan (including a contract you bought directly from the issuer), you must use a special computation under the General Rule. Can i do my 2012 taxes now For more information, see Variable annuities in Publication 939 under Computation Under the General Rule. Can i do my 2012 taxes now Death benefits. Can i do my 2012 taxes now    If you receive a single-sum distribution from a variable annuity contract because of the death of the owner or annuitant, the distribution is generally taxable only to the extent it is more than the unrecovered cost of the contract. Can i do my 2012 taxes now If you choose to receive an annuity, the payments are subject to tax as described above. Can i do my 2012 taxes now If the contract provides a joint and survivor annuity and the primary annuitant had received annuity payments before death, you figure the tax-free part of annuity payments you receive as the survivor in the same way the primary annuitant did. Can i do my 2012 taxes now See Survivors and Beneficiaries , later. Can i do my 2012 taxes now Section 457 Deferred Compensation Plans If you work for a state or local government or for a tax-exempt organization, you may be able to participate in a section 457 deferred compensation plan. Can i do my 2012 taxes now If your plan is an eligible plan, you are not taxed currently on pay that is deferred under the plan or on any earnings from the plan's investment of the deferred pay. Can i do my 2012 taxes now You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. Can i do my 2012 taxes now You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. Can i do my 2012 taxes now Your 457(b) plan may have a designated Roth account option. Can i do my 2012 taxes now If so, you may be able to roll over amounts to the designated Roth account or make contributions. Can i do my 2012 taxes now Elective deferrals to a designated Roth account are included in your income. Can i do my 2012 taxes now Qualified distributions (explained later) are not included in your income. Can i do my 2012 taxes now See the Designated Roth accounts discussion under Taxation of Periodic Payments, later. Can i do my 2012 taxes now This publication covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. Can i do my 2012 taxes now For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525. Can i do my 2012 taxes now Is your plan eligible?   To find out if your plan is an eligible plan, check with your employer. Can i do my 2012 taxes now Plans that are not eligible section 457 plans include the following: Bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plans. Can i do my 2012 taxes now Nonelective deferred compensation plans for nonemployees (independent contractors). Can i do my 2012 taxes now Deferred compensation plans maintained by churches. Can i do my 2012 taxes now Length of service award plans for bona fide volunteer firefighters and emergency medical personnel. Can i do my 2012 taxes now An exception applies if the total amount paid to a volunteer exceeds $3,000 for any year of service. Can i do my 2012 taxes now Disability Pensions If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. Can i do my 2012 taxes now You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. Can i do my 2012 taxes now Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Can i do my 2012 taxes now You may be entitled to a tax credit if you were permanently and totally disabled when you retired. Can i do my 2012 taxes now For information on this credit, see Publication 524. Can i do my 2012 taxes now Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Can i do my 2012 taxes now Report the payments on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. Can i do my 2012 taxes now Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income. Can i do my 2012 taxes now For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. Can i do my 2012 taxes now Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. Can i do my 2012 taxes now The premiums can be for coverage for you, your spouse, or dependents. Can i do my 2012 taxes now The distribution must be made directly from the plan to the insurance provider. Can i do my 2012 taxes now You can exclude from income the smaller of the amount of the insurance premiums or $3,000. Can i do my 2012 taxes now You can only make this election for amounts that would otherwise be included in your income. Can i do my 2012 taxes now The amount excluded from your income cannot be used to claim a medical expense deduction. Can i do my 2012 taxes now An eligible retirement plan is a governmental plan that is: a qualified trust, a section 403(a) plan, a section 403(b) annuity, or a section 457(b) plan. Can i do my 2012 taxes now If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. Can i do my 2012 taxes now The amount shown in box 2a of Form 1099-R does not reflect this exclusion. Can i do my 2012 taxes now Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Can i do my 2012 taxes now Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Can i do my 2012 taxes now Enter “PSO” next to the appropriate line on which you report the taxable amount. Can i do my 2012 taxes now If you are retired on disability and reporting your disability pension on line 7 of Form 1040 or Form 1040A, or line 8 of Form 1040NR, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to the applicable line. Can i do my 2012 taxes now Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. Can i do my 2012 taxes now These categories are treated differently for income tax purposes. Can i do my 2012 taxes now The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. Can i do my 2012 taxes now This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and you treat it for tax purposes like social security benefits. Can i do my 2012 taxes now If you received, repaid, or had tax withheld from the SSEB portion of tier 1 benefits during 2013, you will receive Form RRB-1099, Payments by the Railroad Retirement Board (or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, if you are a nonresident alien) from the U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Railroad Retirement Board (RRB). Can i do my 2012 taxes now For more information about the tax treatment of the SSEB portion of tier 1 benefits and Forms RRB-1099 and RRB-1042S, see Publication 915. Can i do my 2012 taxes now The second category contains the rest of the tier 1 railroad retirement benefits, called the non-social security equivalent benefit (NSSEB). Can i do my 2012 taxes now It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. Can i do my 2012 taxes now Treat this category of benefits, shown on Form RRB-1099-R, as an amount received from a qualified employee plan. Can i do my 2012 taxes now This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. Can i do my 2012 taxes now (The NSSEB and tier 2 benefits, less certain repayments, are combined into one amount called the Contributory Amount Paid on Form RRB-1099-R. Can i do my 2012 taxes now ) Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. Can i do my 2012 taxes now See Taxation of Periodic Payments , later, for information on how to report your benefits and how to recover the employee contributions tax free. Can i do my 2012 taxes now Form RRB-1099-R is used for U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizens, resident aliens, and nonresident aliens. Can i do my 2012 taxes now Nonresident aliens. Can i do my 2012 taxes now   A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Can i do my 2012 taxes now Nonresident aliens are subject to mandatory U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now tax withholding unless exempt under a tax treaty between the United States and their country of legal residency. Can i do my 2012 taxes now A tax treaty exemption may reduce or eliminate tax withholding from railroad retirement benefits. Can i do my 2012 taxes now See Tax withholding next for more information. Can i do my 2012 taxes now   If you are a nonresident alien and your tax withholding rate changed or your country of legal residence changed during the year, you may receive more than one Form RRB-1042S or Form RRB-1099-R. Can i do my 2012 taxes now To determine your total benefits paid or repaid and total tax withheld for the year, you should add the amounts shown on all forms you received for that year. Can i do my 2012 taxes now For information on filing requirements for aliens, see Publication 519, U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Tax Guide for Aliens. Can i do my 2012 taxes now For information on tax treaties between the United States and other countries that may reduce or eliminate U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now tax on your benefits, see Publication 901, U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Tax Treaties. Can i do my 2012 taxes now Tax withholding. Can i do my 2012 taxes now   To request or change your income tax withholding from SSEB payments, U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizens should contact the IRS for Form W-4V, Voluntary Withholding Request, and file it with the RRB. Can i do my 2012 taxes now To elect, revoke, or change your income tax withholding from NSSEB, tier 2, VDB, and supplemental annuity payments received, use Form RRB W-4P, Withholding Certificate for Railroad Retirement Payments. Can i do my 2012 taxes now If you are a nonresident alien or a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizen living abroad, you should provide Form RRB-1001, Nonresident Questionnaire, to the RRB to furnish citizenship and residency information and to claim any treaty exemption from U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now tax withholding. Can i do my 2012 taxes now Nonresident U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizens cannot elect to be exempt from withholding on payments delivered outside of the U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Help from the RRB. Can i do my 2012 taxes now   To request an RRB form or to get help with questions about an RRB benefit, you should contact your nearest RRB field office if you reside in the United States (call 1-877-772-5772 for the nearest field office) or U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now consulate/Embassy if you reside outside the United States. Can i do my 2012 taxes now You can visit the RRB on the Internet at www. Can i do my 2012 taxes now rrb. Can i do my 2012 taxes now gov. Can i do my 2012 taxes now Form RRB-1099-R. Can i do my 2012 taxes now   The following discussion explains the items shown on Form RRB-1099-R. Can i do my 2012 taxes now The amounts shown on this form are before any deduction for: Federal income tax withholding, Medicare premiums, Legal process garnishment payments, Recovery of a prior year overpayment of an NSSEB, tier 2 benefit, VDB, or supplemental annuity benefit, or Recovery of Railroad Unemployment Insurance Act benefits received while awaiting payment of your railroad retirement annuity. Can i do my 2012 taxes now   The amounts shown on this form are after any offset for: Social Security benefits, Age reduction, Public Service pensions or public disability benefits, Dual railroad retirement entitlement under another RRB claim number, Work deductions, Legal process partition deductions, Actuarial adjustment, Annuity waiver, or Recovery of a current-year overpayment of NSSEB, tier 2, VDB, or supplemental annuity benefits. Can i do my 2012 taxes now   The amounts shown on Form RRB-1099-R do not reflect any special rules, such as capital gain treatment or the special 10-year tax option for lump-sum payments, or tax-free rollovers. Can i do my 2012 taxes now To determine if any of these rules apply to your benefits, see the discussions about them later. Can i do my 2012 taxes now   Generally, amounts shown on your Form RRB-1099-R are considered a normal distribution. Can i do my 2012 taxes now Use distribution code “7” if you are asked for a distribution code. Can i do my 2012 taxes now Distribution codes are not shown on Form RRB-1099-R. Can i do my 2012 taxes now   There are three copies of this form. Can i do my 2012 taxes now Copy B is to be included with your income tax return if federal income tax is withheld. Can i do my 2012 taxes now Copy C is for your own records. Can i do my 2012 taxes now Copy 2 is filed with your state, city, or local income tax return, when required. Can i do my 2012 taxes now See the illustrated Copy B (Form RRB-1099-R) above. Can i do my 2012 taxes now       Each beneficiary will receive his or her own Form RRB-1099-R. Can i do my 2012 taxes now If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099-R. Can i do my 2012 taxes now So that you get your form timely, make sure the RRB always has your current mailing address. Can i do my 2012 taxes now Please click here for the text description of the image. Can i do my 2012 taxes now Form RRB-1099-R Box 1—Claim Number and Payee Code. Can i do my 2012 taxes now   Your claim number is a six- or nine-digit number preceded by an alphabetical prefix. Can i do my 2012 taxes now This is the number under which the RRB paid your benefits. Can i do my 2012 taxes now Your payee code follows your claim number and is the last number in this box. Can i do my 2012 taxes now It is used by the RRB to identify you under your claim number. Can i do my 2012 taxes now In all your correspondence with the RRB, be sure to use the claim number and payee code shown in this box. Can i do my 2012 taxes now Box 2—Recipient's Identification Number. Can i do my 2012 taxes now   This is the recipient's U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now taxpayer identification number. Can i do my 2012 taxes now It is the social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient. Can i do my 2012 taxes now If you are a resident or nonresident alien who must furnish a taxpayer identification number to the IRS and are not eligible to obtain an SSN, use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN. Can i do my 2012 taxes now The Instructions for Form W-7 explain how and when to apply. Can i do my 2012 taxes now Box 3—Employee Contributions. Can i do my 2012 taxes now   This is the amount of taxes withheld from the railroad employee's earnings that exceeds the amount of taxes that would have been withheld had the earnings been covered under the social security system. Can i do my 2012 taxes now This amount is the employee's cost that you use to figure the tax-free part of the NSSEB and tier 2 benefit you received (the amount shown in box 4). Can i do my 2012 taxes now (For information on how to figure the tax-free part, see Partly Taxable Payments under Taxation of Periodic Payments, later. Can i do my 2012 taxes now ) The amount shown is the total employee contribution amount, not reduced by any amounts that the RRB calculated as previously recovered. Can i do my 2012 taxes now It is the latest amount reported for 2013 and may have increased or decreased from a previous Form RRB-1099-R. Can i do my 2012 taxes now If this amount has changed, the change is retroactive. Can i do my 2012 taxes now You may need to refigure the tax-free part of your NSSEB/tier 2 benefit for 2013 and prior tax years. Can i do my 2012 taxes now If this box is blank, it means that the amount of your NSSEB and tier 2 payments shown in box 4 is fully taxable. Can i do my 2012 taxes now    If you had a previous annuity entitlement that ended and you are figuring the tax-free part of your NSSEB/tier 2 benefit for your current annuity entitlement, you should contact the RRB for confirmation of your correct employee contribution amount. Can i do my 2012 taxes now Box 4—Contributory Amount Paid. Can i do my 2012 taxes now   This is the gross amount of the NSSEB and tier 2 benefit you received in 2013, less any 2013 benefits you repaid in 2013. Can i do my 2012 taxes now (Any benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Can i do my 2012 taxes now ) This amount is the total contributory pension paid in 2013. Can i do my 2012 taxes now It may be partly taxable and partly tax free or fully taxable. Can i do my 2012 taxes now If you determine you are eligible to compute a tax-free part as explained later in Partly Taxable Payments under Taxation of Periodic Payments, use the latest reported employee contribution amount shown in box 3 as the cost. Can i do my 2012 taxes now Box 5—Vested Dual Benefit. Can i do my 2012 taxes now   This is the gross amount of vested dual benefit (VDB) payments paid in 2013, less any 2013 VDB payments you repaid in 2013. Can i do my 2012 taxes now It is fully taxable. Can i do my 2012 taxes now VDB payments you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Can i do my 2012 taxes now Note. Can i do my 2012 taxes now The amounts shown in boxes 4 and 5 may represent payments for 2013 and/or other years after 1983. Can i do my 2012 taxes now Box 6—Supplemental Annuity. Can i do my 2012 taxes now   This is the gross amount of supplemental annuity benefits paid in 2013, less any 2013 supplemental annuity benefits you repaid in 2013. Can i do my 2012 taxes now It is fully taxable. Can i do my 2012 taxes now Supplemental annuity benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Can i do my 2012 taxes now Box 7—Total Gross Paid. Can i do my 2012 taxes now   This is the sum of boxes 4, 5, and 6. Can i do my 2012 taxes now The amount represents the total pension paid in 2013. Can i do my 2012 taxes now Include this amount on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Can i do my 2012 taxes now Box 8—Repayments. Can i do my 2012 taxes now   This amount represents any NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit you repaid to the RRB in 2013 for years before 2013 or for unknown years. Can i do my 2012 taxes now The amount shown in this box has not been deducted from the amounts shown in boxes 4, 5, and 6. Can i do my 2012 taxes now It only includes repayments of benefits that were taxable to you. Can i do my 2012 taxes now This means it only includes repayments in 2013 of NSSEB benefits paid after 1985, tier 2 and VDB benefits paid after 1983, and supplemental annuity benefits paid in any year. Can i do my 2012 taxes now If you included the benefits in your income in the year you received them, you may be able to deduct the repaid amount. Can i do my 2012 taxes now For more information about repayments, see Repayment of benefits received in an earlier year , later. Can i do my 2012 taxes now    You may have repaid an overpayment of benefits by returning a payment, by making a payment, or by having an amount withheld from your railroad retirement annuity payment. Can i do my 2012 taxes now Box 9—Federal Income Tax Withheld. Can i do my 2012 taxes now   This is the total federal income tax withheld from your NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit. Can i do my 2012 taxes now Include this on your income tax return as tax withheld. Can i do my 2012 taxes now If you are a nonresident alien and your tax withholding rate and/or country of legal residence changed during 2013, you will receive more than one Form RRB-1099-R for 2013. Can i do my 2012 taxes now Determine the total amount of U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now federal income tax withheld from your 2013 RRB NSSEB, tier 2, VDB, and supplemental annuity payments by adding the amounts in box 9 of all original 2013 Forms RRB-1099-R, or the latest corrected or duplicate Forms RRB-1099-R you receive. Can i do my 2012 taxes now Box 10—Rate of Tax. Can i do my 2012 taxes now   If you are taxed as a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizen or resident alien, this box does not apply to you. Can i do my 2012 taxes now If you are a nonresident alien, an entry in this box indicates the rate at which tax was withheld on the NSSEB, tier 2, VDB, and supplemental annuity payments that were paid to you in 2013. Can i do my 2012 taxes now If you are a nonresident alien whose tax was withheld at more than one rate during 2013, you will receive a separate Form RRB-1099-R for each rate change during 2013. Can i do my 2012 taxes now Box 11—Country. Can i do my 2012 taxes now   If you are taxed as a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizen or resident alien, this box does not apply to you. Can i do my 2012 taxes now If you are a nonresident alien, an entry in this box indicates the country of which you were a resident for tax purposes at the time you received railroad retirement payments in 2013. Can i do my 2012 taxes now If you are a nonresident alien who was a resident of more than one country during 2013, you will receive a separate Form RRB-1099-R for each country of residence during 2013. Can i do my 2012 taxes now Box 12—Medicare Premium Total. Can i do my 2012 taxes now   This is for information purposes only. Can i do my 2012 taxes now The amount shown in this box represents the total amount of Part B Medicare premiums deducted from your railroad retirement annuity payments in 2013. Can i do my 2012 taxes now Medicare premium refunds are not included in the Medicare total. Can i do my 2012 taxes now The Medicare total is normally shown on Form RRB-1099 (if you are a citizen or resident alien of the United States) or Form RRB-1042S (if you are a nonresident alien). Can i do my 2012 taxes now However, if Form RRB-1099 or Form RRB-1042S is not required for 2013, then this total will be shown on Form RRB-1099-R. Can i do my 2012 taxes now If your Medicare premiums were deducted from your social security benefits, paid by a third party, refunded to you, and/or you paid the premiums by direct billing, your Medicare total will not be shown in this box. Can i do my 2012 taxes now Repayment of benefits received in an earlier year. Can i do my 2012 taxes now   If you had to repay any railroad retirement benefits that you had included in your income in an earlier year because at that time you thought you had an unrestricted right to it, you can deduct the amount you repaid in the year in which you repaid it. Can i do my 2012 taxes now   If you repaid $3,000 or less in 2013, deduct it on Schedule A (Form 1040), line 23. Can i do my 2012 taxes now The 2%-of-adjusted-gross-income limit applies to this deduction. Can i do my 2012 taxes now You cannot take this deduction if you file Form 1040A. Can i do my 2012 taxes now    If you repaid more than $3,000 in 2013, you can either take a deduction for the amount repaid on Schedule A (Form 1040), line 28 or you can take a credit against your tax. Can i do my 2012 taxes now For more information, see Repayments in Publication 525. Can i do my 2012 taxes now Withholding Tax and Estimated Tax Your retirement plan distributions are subject to federal income tax withholding. Can i do my 2012 taxes now However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. Can i do my 2012 taxes now (These are distributions, described later under Rollovers, that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. Can i do my 2012 taxes now ) If you choose not to have tax withheld or if you do not have enough tax withheld, you may have to make estimated tax payments. Can i do my 2012 taxes now See Estimated tax , later. Can i do my 2012 taxes now The withholding rules apply to the taxable part of payments you receive from: An employer pension, annuity, profit-sharing, or stock bonus plan, Any other deferred compensation plan, A traditional individual retirement arrangement (IRA), or A commercial annuity. Can i do my 2012 taxes now For this purpose, a commercial annuity means an annuity, endowment, or life insurance contract issued by an insurance company. Can i do my 2012 taxes now There will be no withholding on any part of a distribution where it is reasonable to believe that it will not be includible in gross income. Can i do my 2012 taxes now Choosing no withholding. Can i do my 2012 taxes now   You can choose not to have income tax withheld from retirement plan payments unless they are eligible rollover distributions. Can i do my 2012 taxes now You can make this choice on Form W-4P for periodic and nonperiodic payments. Can i do my 2012 taxes now This choice generally remains in effect until you revoke it. Can i do my 2012 taxes now   The payer will ignore your choice not to have tax withheld if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer, before the payment is made, that you gave an incorrect social security number. Can i do my 2012 taxes now   To choose not to have tax withheld, a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizen or resident alien must give the payer a home address in the United States or its possessions. Can i do my 2012 taxes now Without that address, the payer must withhold tax. Can i do my 2012 taxes now For example, the payer has to withhold tax if the recipient has provided a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now address for a nominee, trustee, or agent to whom the benefits are delivered, but has not provided his or her own U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now home address. Can i do my 2012 taxes now   If you do not give the payer a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to the payer that you are not a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizen, a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now resident alien, or someone who left the country to avoid tax. Can i do my 2012 taxes now But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Can i do my 2012 taxes now This 30% rate will not apply if you are exempt or subject to a reduced rate by treaty. Can i do my 2012 taxes now For details, get Publication 519. Can i do my 2012 taxes now Periodic payments. Can i do my 2012 taxes now   Unless you choose no withholding, your annuity or similar periodic payments (other than eligible rollover distributions) will be treated like wages for withholding purposes. Can i do my 2012 taxes now 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). Can i do my 2012 taxes now You should give the payer a completed withholding certificate (Form W-4P or a similar form provided by the payer). Can i do my 2012 taxes now If you do not, tax will be withheld as if you were married and claiming three withholding allowances. Can i do my 2012 taxes now   Tax will be withheld as if you were single and were claiming no withholding allowances if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer (before any payment is made) that you gave an incorrect social security number. Can i do my 2012 taxes now   You must file a new withholding certificate to change the amount of withholding. Can i do my 2012 taxes now Nonperiodic distributions. Can i do my 2012 taxes now    Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that is not an eligible rollover distribution is 10% of the distribution. Can i do my 2012 taxes now You can also ask the payer to withhold an additional amount using Form W-4P. Can i do my 2012 taxes now The part of any loan treated as a distribution (except an offset amount to repay the loan), explained later, is subject to withholding under this rule. Can i do my 2012 taxes now Eligible rollover distribution. Can i do my 2012 taxes now    If you receive an eligible rollover distribution, 20% of it generally will be withheld for income tax. Can i do my 2012 taxes now You cannot choose not to have tax withheld from an eligible rollover distribution. Can i do my 2012 taxes now However, tax will not be withheld if you have the plan administrator pay the eligible rollover distribution directly to another qualified plan or an IRA in a direct rollover. Can i do my 2012 taxes now For more information about eligible rollover distributions, see Rollovers , later. Can i do my 2012 taxes now Estimated tax. Can i do my 2012 taxes now   Your estimated tax is the total of your expected income tax, self-employment tax, and certain other taxes for the year, minus your expected credits and withheld tax. Can i do my 2012 taxes now Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 return, or 100% of the tax shown on your 2013 return. Can i do my 2012 taxes now If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. Can i do my 2012 taxes now For more information, get Publication 505, Tax Withholding and Estimated Tax. Can i do my 2012 taxes now In figuring your withholding or estimated tax, remember that a part of your monthly social security or equivalent tier 1 railroad retirement benefits may be taxable. Can i do my 2012 taxes now See Publication 915. Can i do my 2012 taxes now You can choose to have income tax withheld from those benefits. Can i do my 2012 taxes now Use Form W-4V to make this choice. Can i do my 2012 taxes now Cost (Investment in the Contract) Distributions from your pension or annuity plan may include amounts treated as a recovery of your cost (investment in the contract). Can i do my 2012 taxes now If any part of a distribution is treated as a recovery of your cost under the rules explained in this publication, that part is tax free. Can i do my 2012 taxes now Therefore, the first step in figuring how much of a distribution is taxable is to determine the cost of your pension or annuity. Can i do my 2012 taxes now In general, your cost is your net investment in the contract as of the annuity starting date (or the date of the distribution, if earlier). Can i do my 2012 taxes now To find this amount, you must first figure the total premiums, contributions, or other amounts you paid. Can i do my 2012 taxes now This includes the amounts your employer contributed that were taxable to you when paid. Can i do my 2012 taxes now (However, see Foreign employment contributions , later. Can i do my 2012 taxes now ) It does not include amounts withheld from your pay on a tax-deferred basis (money that was taken out of your gross pay before taxes were deducted). Can i do my 2012 taxes now It also does not include amounts you contributed for health and accident benefits (including any additional premiums paid for double indemnity or disability benefits). Can i do my 2012 taxes now From this total cost you must subtract the following amounts. Can i do my 2012 taxes now Any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income and that you received by the later of the annuity starting date or the date on which you received your first payment. Can i do my 2012 taxes now Any other tax-free amounts you received under the contract or plan by the later of the dates in (1). Can i do my 2012 taxes now If you must use the Simplified Method for your annuity payments, the tax-free part of any single-sum payment received in connection with the start of the annuity payments, regardless of when you received it. Can i do my 2012 taxes now (See Simplified Method , later, for information on its required use. Can i do my 2012 taxes now ) If you use the General Rule for your annuity payments, the value of the refund feature in your annuity contract. Can i do my 2012 taxes now (See General Rule , later, for information on its use. Can i do my 2012 taxes now ) Your annuity contract has a refund feature if the annuity payments are for your life (or the lives of you and your survivor) and payments in the nature of a refund of the annuity's cost will be made to your beneficiary or estate if all annuitants die before a stated amount or a stated number of payments are made. Can i do my 2012 taxes now For more information, see Publication 939. Can i do my 2012 taxes now The tax treatment of the items described in (1) through (3) is discussed later under Taxation of Nonperiodic Payments . Can i do my 2012 taxes now Form 1099-R. Can i do my 2012 taxes now If you began receiving periodic payments of a life annuity in 2013, the payer should show your total contributions to the plan in box 9b of your 2013 Form 1099-R. Can i do my 2012 taxes now Annuity starting date defined. Can i do my 2012 taxes now   Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now 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. Can i do my 2012 taxes now The annuity starting date is July 1. Can i do my 2012 taxes now This is the date you use in figuring the cost of the contract and selecting the appropriate number from Table 1 for line 3 of the Simplified Method Worksheet. Can i do my 2012 taxes now Designated Roth accounts. Can i do my 2012 taxes now   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. Can i do my 2012 taxes now Your cost will also include any in-plan Roth rollovers you included in income. Can i do my 2012 taxes now Foreign employment contributions. Can i do my 2012 taxes now   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. Can i do my 2012 taxes now The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (not including the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) but only if the contributions would be excludible from your gross income had they been paid directly to you. Can i do my 2012 taxes now Foreign employment contributions while a nonresident alien. Can i do my 2012 taxes now   In determining your cost, special rules apply if you are a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now citizen or resident alien who received distributions in 2013 from a plan to which contributions were made while you were a nonresident alien. Can i do my 2012 taxes now Your contributions and your employer's contributions are not included in your cost if the contribution: Was made based on compensation which was for services performed outside the United States while you were a nonresident alien, and Was not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if paid as cash compensation when the services were performed. Can i do my 2012 taxes now Taxation of Periodic Payments This section explains how the periodic payments you receive from a pension or annuity plan are taxed. Can i do my 2012 taxes now 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). Can i do my 2012 taxes now These payments are also known as amounts received as an annuity. Can i do my 2012 taxes now If you receive an amount from your plan that is not a periodic payment, see Taxation of Nonperiodic Payments , later. Can i do my 2012 taxes now In general, you can recover the cost of your pension or annuity tax free over the period you are to receive the payments. Can i do my 2012 taxes now The amount of each payment that is more than the part that represents your cost is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Can i do my 2012 taxes now Designated Roth accounts. Can i do my 2012 taxes now   If you receive a qualified distribution from a designated Roth account, the distribution is not included in your gross income. Can i do my 2012 taxes now This applies to both your cost in the account and income earned on that account. Can i do my 2012 taxes now A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. Can i do my 2012 taxes now   If the distribution is not a qualified distribution, the rules discussed in this section apply. Can i do my 2012 taxes now The designated Roth account is treated as a separate contract. Can i do my 2012 taxes now Period of participation. Can i do my 2012 taxes now   The 5-tax-year period of participation is the 5-tax-year period beginning with the first tax year for which the participant made a designated Roth contribution to the plan. Can i do my 2012 taxes now Therefore, for designated Roth contributions made for 2013, the first year for which a qualified distribution can be made is 2018. Can i do my 2012 taxes now   However, if a direct rollover is made to the plan from a designated Roth account under another plan, the 5-tax-year period for the recipient plan begins with the first tax year for which the participant first had designated Roth contributions made to the other plan. Can i do my 2012 taxes now   Your 401(k), 403(b), or 457(b) plan may permit you to roll over amounts from those plans to a designated Roth account within the same plan. Can i do my 2012 taxes now This is known as an in-plan Roth rollover. Can i do my 2012 taxes now For more details, see In-plan Roth rollovers , later. Can i do my 2012 taxes now Fully Taxable Payments The pension or annuity payments that you receive are fully taxable if you have no cost in the contract because any of the following situations applies to you (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Can i do my 2012 taxes now You did not pay anything or are not considered to have paid anything for your pension or annuity. Can i do my 2012 taxes now Amounts withheld from your pay on a tax-deferred basis are not considered part of the cost of the pension or annuity payment. Can i do my 2012 taxes now Your employer did not withhold contributions from your salary. Can i do my 2012 taxes now You got back all of your contributions tax free in prior years (however, see Exclusion not limited to cost under Partly Taxable Payments, later). Can i do my 2012 taxes now Report the total amount you got on Form 1040, line 16b; Form 1040A, line 12b; or on Form 1040NR, line 17b. Can i do my 2012 taxes now You should make no entry on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Can i do my 2012 taxes now Deductible voluntary employee contributions. Can i do my 2012 taxes now   Distributions you receive that are based on your accumulated deductible voluntary employee contributions are generally fully taxable in the year distributed to you. Can i do my 2012 taxes now Accumulated deductible voluntary employee contributions include net earnings on the contributions. Can i do my 2012 taxes now If distributed as part of a lump sum, they do not qualify for the 10-year tax option or capital gain treatment, explained later. Can i do my 2012 taxes now Partly Taxable Payments If you have a cost to recover from your pension or annuity plan (see Cost (Investment in the Contract) , earlier), you can exclude part of each annuity payment from income as a recovery of your cost. Can i do my 2012 taxes now This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. Can i do my 2012 taxes now The rest of each payment is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Can i do my 2012 taxes now You figure the tax-free part of the payment using one of the following methods. Can i do my 2012 taxes now Simplified Method. Can i do my 2012 taxes now You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). Can i do my 2012 taxes now You cannot use this method if your annuity is paid under a nonqualified plan. Can i do my 2012 taxes now General Rule. Can i do my 2012 taxes now You must use this method if your annuity is paid under a nonqualified plan. Can i do my 2012 taxes now You generally cannot use this method if your annuity is paid under a qualified plan. Can i do my 2012 taxes now You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. Can i do my 2012 taxes now If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. Can i do my 2012 taxes now Qualified plan annuity starting before November 19, 1996. Can i do my 2012 taxes now   If your annuity is paid under a qualified plan and your annuity starting date (defined earlier under Cost (Investment in the Contract) ) is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the Simplified Method or the General Rule. Can i do my 2012 taxes now If your annuity starting date is before July 2, 1986, you use the General Rule unless your annuity qualified for the Three-Year Rule. Can i do my 2012 taxes now If you used the Three-Year Rule (which was repealed for annuities starting after July 1, 1986), your annuity payments are generally now fully taxable. Can i do my 2012 taxes now Exclusion limit. Can i do my 2012 taxes now   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Can i do my 2012 taxes now Once your annuity starting date is determined, it does not change. Can i do my 2012 taxes now If you calculate the taxable portion of your annuity payments using the simplified method worksheet, the annuity starting date determines the recovery period for your cost. Can i do my 2012 taxes now That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. Can i do my 2012 taxes now Exclusion limited to cost. Can i do my 2012 taxes now   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost cannot exceed your total cost. Can i do my 2012 taxes now Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Can i do my 2012 taxes now This deduction is not subject to the 2%-of-adjusted-gross-income limit. Can i do my 2012 taxes now Example 1. Can i do my 2012 taxes now Your annuity starting date is after 1986, and you exclude $100 a month ($1,200 a year) under the Simplified Method. Can i do my 2012 taxes now The total cost of your annuity is $12,000. Can i do my 2012 taxes now Your exclusion ends when you have recovered your cost tax free, that is, after 10 years (120 months). Can i do my 2012 taxes now After that, your annuity payments are generally fully taxable. Can i do my 2012 taxes now Example 2. Can i do my 2012 taxes now The facts are the same as in Example 1, except you die (with no surviving annuitant) after the eighth year of retirement. Can i do my 2012 taxes now You have recovered tax free only $9,600 (8 × $1,200) of your cost. Can i do my 2012 taxes now An itemized deduction for your unrecovered cost of $2,400 ($12,000 – $9,600) can be taken on your final return. Can i do my 2012 taxes now Exclusion not limited to cost. Can i do my 2012 taxes now   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. Can i do my 2012 taxes now If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. Can i do my 2012 taxes now The total exclusion may be more than your cost. Can i do my 2012 taxes now Simplified Method Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. Can i do my 2012 taxes now For an annuity that is payable for the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. Can i do my 2012 taxes now For any other annuity, this number is the number of monthly annuity payments under the contract. Can i do my 2012 taxes now Who must use the Simplified Method. Can i do my 2012 taxes now   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions. Can i do my 2012 taxes now You receive your pension or annuity payments from any of the following plans. Can i do my 2012 taxes now A qualified employee plan. Can i do my 2012 taxes now A qualified employee annuity. Can i do my 2012 taxes now A tax-sheltered annuity plan (403(b) plan). Can i do my 2012 taxes now On your annuity starting date, at least one of the following conditions applies to you. Can i do my 2012 taxes now You are under age 75. Can i do my 2012 taxes now You are entitled to less than 5 years of guaranteed payments. Can i do my 2012 taxes now Guaranteed payments. Can i do my 2012 taxes now   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. Can i do my 2012 taxes now If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. Can i do my 2012 taxes now Annuity starting before November 19, 1996. Can i do my 2012 taxes now   If your annuity starting date is after July 1, 1986, and before November 19, 1996, and you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. Can i do my 2012 taxes now You could have chosen to use the Simplified Method if your annuity is payable for your life (or the lives of you and your survivor annuitant) and you met both of the conditions listed earlier under Who must use the Simplified Method . Can i do my 2012 taxes now Who cannot use the Simplified Method. Can i do my 2012 taxes now   You cannot use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. Can i do my 2012 taxes now See General Rule , later. Can i do my 2012 taxes now How to use the Simplified Method. Can i do my 2012 taxes now    Complete Worksheet A in the back of this publication to figure your taxable annuity for 2013. Can i do my 2012 taxes now Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. Can i do my 2012 taxes now   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. Can i do my 2012 taxes now How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. Can i do my 2012 taxes now For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. Can i do my 2012 taxes now    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. Can i do my 2012 taxes now Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. Can i do my 2012 taxes now Single-life annuity. Can i do my 2012 taxes now   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. Can i do my 2012 taxes now Enter on line 3 the number shown for your age on your annuity starting date. Can i do my 2012 taxes now This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Can i do my 2012 taxes now Multiple-lives annuity. Can i do my 2012 taxes now   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. Can i do my 2012 taxes now Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. Can i do my 2012 taxes now For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. Can i do my 2012 taxes now For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. Can i do my 2012 taxes now Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. Can i do my 2012 taxes now   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. Can i do my 2012 taxes now Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. Can i do my 2012 taxes now This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Can i do my 2012 taxes now Fixed-period annuity. Can i do my 2012 taxes now   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. Can i do my 2012 taxes now Line 6. Can i do my 2012 taxes now   The amount on line 6 should include all amounts that could have been recovered in prior years. Can i do my 2012 taxes now If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now Bill Smith, age 65, began receiving retirement benefits in 2013 under a joint and survivor annuity. Can i do my 2012 taxes now Bill's annuity starting date is January 1, 2013. Can i do my 2012 taxes now The benefits are to be paid for the joint lives of Bill and his wife, Kathy, age 65. Can i do my 2012 taxes now Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. Can i do my 2012 taxes now Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. Can i do my 2012 taxes now Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. Can i do my 2012 taxes now Because his annuity is payable over the lives of more than one annuitant, he uses his and Kathy's combined ages and Table 2 at the bottom of Worksheet A in completing line 3 of the worksheet. Can i do my 2012 taxes now His completed worksheet is shown later. Can i do my 2012 taxes now Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. Can i do my 2012 taxes now Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. Can i do my 2012 taxes now The full amount of any annuity payments received after 310 payments are paid must be included in gross income. Can i do my 2012 taxes now If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. Can i do my 2012 taxes now This deduction is not subject to the 2%-of-adjusted-gross-income limit. Can i do my 2012 taxes now Worksheet A. Can i do my 2012 taxes now Simplified Method Worksheet for Bill Smith 1. Can i do my 2012 taxes now Enter the total pension or annuity payments received this year. Can i do my 2012 taxes now Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Can i do my 2012 taxes now $14,400 2. Can i do my 2012 taxes now Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. Can i do my 2012 taxes now * See Cost (Investment in the Contract) , earlier 2. Can i do my 2012 taxes now 31,000   Note. Can i do my 2012 taxes now If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Can i do my 2012 taxes now Otherwise, go to line 3. Can i do my 2012 taxes now     3. Can i do my 2012 taxes now Enter the appropriate number from Table 1 below. Can i do my 2012 taxes now But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. Can i do my 2012 taxes now 310 4. Can i do my 2012 taxes now Divide line 2 by the number on line 3 4. Can i do my 2012 taxes now 100 5. Can i do my 2012 taxes now Multiply line 4 by the number of months for which this year's payments were made. Can i do my 2012 taxes now If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Can i do my 2012 taxes now Otherwise, go to line 6 5. Can i do my 2012 taxes now 1,200 6. Can i do my 2012 taxes now Enter any amount previously recovered tax free in years after 1986. Can i do my 2012 taxes now This is the amount shown on line 10 of your worksheet for last year 6. Can i do my 2012 taxes now -0- 7. Can i do my 2012 taxes now Subtract line 6 from line 2 7. Can i do my 2012 taxes now 31,000 8. Can i do my 2012 taxes now Enter the smaller of line 5 or line 7 8. Can i do my 2012 taxes now 1,200 9. Can i do my 2012 taxes now Taxable amount for year. Can i do my 2012 taxes now Subtract line 8 from line 1. Can i do my 2012 taxes now Enter the result, but not less than zero. Can i do my 2012 taxes now Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Can i do my 2012 taxes now Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Can i do my 2012 taxes now If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. Can i do my 2012 taxes now $13,200 10. Can i do my 2012 taxes now Was your annuity starting date before 1987? □ Yes. Can i do my 2012 taxes now STOP. Can i do my 2012 taxes now Do not complete the rest of this worksheet. Can i do my 2012 taxes now  ☑ No. Can i do my 2012 taxes now Add lines 6 and 8. Can i do my 2012 taxes now This is the amount you have recovered tax free through 2013. Can i do my 2012 taxes now You will need this number if you need to fill out this worksheet next year 10. Can i do my 2012 taxes now 1,200 11. Can i do my 2012 taxes now Balance of cost to be recovered. Can i do my 2012 taxes now Subtract line 10 from line 2. Can i do my 2012 taxes now If zero, you will not have to complete this worksheet next year. Can i do my 2012 taxes now The payments you receive next year will generally be fully taxable 11. Can i do my 2012 taxes now $29,800         * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Can i do my 2012 taxes now           Table 1 for Line 3 Above       AND your annuity starting date was—     IF the age at annuity starting date was. Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now BEFORE November 19, 1996, enter on line 3. Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now AFTER November 18, 1996, enter on line 3. Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now     55 or under 300 360     56-60 260 310     61-65 240 260     66-70 170 210     71 or older 120 160     Table 2 for Line 3 Above     IF the combined ages at  annuity starting date were. Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now THEN enter on line 3. Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now     110 or under   410     111-120   360     121-130   310     131-140   260     141 or older   210   Multiple annuitants. Can i do my 2012 taxes now   If you and one or more other annuitants receive payments at the same time, you exclude from each annuity payment a pro rata share of the monthly tax-free amount. Can i do my 2012 taxes now Figure your share by taking the following steps. Can i do my 2012 taxes now Complete your worksheet through line 4 to figure the monthly tax-free amount. Can i do my 2012 taxes now Divide the amount of your monthly payment by the total amount of the monthly payments to all annuitants. Can i do my 2012 taxes now Multiply the amount on line 4 of your worksheet by the amount figured in (2) above. Can i do my 2012 taxes now The result is your share of the monthly tax-free amount. Can i do my 2012 taxes now   Replace the amount on line 4 of the worksheet with the result in (3) above. Can i do my 2012 taxes now Enter that amount on line 4 of your worksheet each year. Can i do my 2012 taxes now General Rule Under the General Rule, you determine the tax-free part of each annuity payment based on the ratio of the cost of the contract to the total expected return. Can i do my 2012 taxes now Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Can i do my 2012 taxes now To figure it, you must use life expectancy (actuarial) tables prescribed by the IRS. Can i do my 2012 taxes now Who must use the General Rule. Can i do my 2012 taxes now   You must use the General Rule if you receive pension or annuity payments from: A nonqualified plan (such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan), or A qualified plan if you are age 75 or older on your annuity starting date and your annuity payments are guaranteed for at least 5 years. Can i do my 2012 taxes now Annuity starting before November 19, 1996. Can i do my 2012 taxes now   If your annuity starting date is after July 1, 1986, and before November 19, 1996, you had to use the General Rule for either circumstance just described. Can i do my 2012 taxes now You also had to use it for any fixed-period annuity. Can i do my 2012 taxes now If you did not have to use the General Rule, you could have chosen to use it. Can i do my 2012 taxes now If your annuity starting date is before July 2, 1986, you had to use the General Rule unless you could use the Three-Year Rule. Can i do my 2012 taxes now   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. Can i do my 2012 taxes now Who cannot use the General Rule. Can i do my 2012 taxes now   You cannot use the General Rule if you receive your pension or annuity from a qualified plan and none of the circumstances described in the preceding discussions apply to you. Can i do my 2012 taxes now See Simplified Method , earlier. Can i do my 2012 taxes now More information. Can i do my 2012 taxes now   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. Can i do my 2012 taxes now Taxation of Nonperiodic Payments This section of the publication explains how any nonperiodic distributions you receive under a pension or annuity plan are taxed. Can i do my 2012 taxes now Nonperiodic distributions are also known as amounts not received as an annuity. Can i do my 2012 taxes now They include all payments other than periodic payments and corrective distributions. Can i do my 2012 taxes now For example, the following items are treated as nonperiodic distributions. Can i do my 2012 taxes now Cash withdrawals. Can i do my 2012 taxes now Distributions of current earnings (dividends) on your investment. Can i do my 2012 taxes now However, do not include these distributions in your income to the extent the insurer keeps them to pay premiums or other consideration for the contract. Can i do my 2012 taxes now Certain loans. Can i do my 2012 taxes now See Loans Treated as Distributions , later. Can i do my 2012 taxes now The value of annuity contracts transferred without full and adequate consideration. Can i do my 2012 taxes now See Transfers of Annuity Contracts , later. Can i do my 2012 taxes now Corrective distributions of excess plan contributions. Can i do my 2012 taxes now   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. Can i do my 2012 taxes now To correct an excess, your plan may distribute it to you (along with any income earned on the excess). Can i do my 2012 taxes now Although the plan reports the corrective distributions on Form 1099-R, the distribution is not treated as a nonperiodic distribution from the plan. Can i do my 2012 taxes now It is not subject to the allocation rules explained in the following discussion, it cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Can i do my 2012 taxes now    If your retirement plan made a corrective distribution of excess amounts (excess deferrals, excess contributions, or excess annual additions), your Form 1099-R should have the code “8,” “B,” “P,” or “E” in box 7. Can i do my 2012 taxes now   For information on plan contribution limits and how to report corrective distributions of excess contributions, see Retirement Plan Contributions under Employee Compensation in Publication 525. Can i do my 2012 taxes now Figuring the Taxable Amount How you figure the taxable amount of a nonperiodic distribution depends on whether it is made before the annuity starting date, or on or after the annuity starting date. Can i do my 2012 taxes now If it is made before the annuity starting date, its tax treatment also depends on whether it is made under a qualified or nonqualified plan. Can i do my 2012 taxes now If it is made under a nonqualified plan, its tax treatment depends on whether it fully discharges the contract, is received under certain life insurance or endowment contracts, or is allocable to an investment you made before August 14, 1982. Can i do my 2012 taxes now You may be able to roll over the taxable amount of a nonperiodic distribution from a qualified retirement plan into another qualified retirement plan or a traditional IRA tax free. Can i do my 2012 taxes now See Rollovers, later. Can i do my 2012 taxes now If you do not make a tax-free rollover and the distribution qualifies as a lump-sum distribution, you may be able to elect an optional method of figuring the tax on the taxable amount. Can i do my 2012 taxes now See Lump-Sum Distributions, later. Can i do my 2012 taxes now Annuity starting date. Can i do my 2012 taxes now   The annuity starting date is either the first day of the first period for which you receive an annuity payment under the contract or the date on which the obligation under the contract becomes fixed, whichever is later. Can i do my 2012 taxes now Distributions of employer securities. Can i do my 2012 taxes now    If you receive a distribution of employer securities from a qualified retirement plan, you may be able to defer the tax on the net unrealized appreciation (NUA) in the securities. Can i do my 2012 taxes now The NUA is the net increase in the securities' value while they were in the trust. Can i do my 2012 taxes now This tax deferral applies to distributions of the employer corporation's stocks, bonds, registered debentures, and debentures with interest coupons attached. Can i do my 2012 taxes now   If the distribution is a lump-sum distribution, tax is deferred on all of the NUA unless you choose to include it in your income for the year of the distribution. Can i do my 2012 taxes now    A lump-sum distribution for this purpose is the distribution or payment of a plan participant's entire balance (within a single tax year) from all of the employer's qualified plans of one kind (pension, profit-sharing, or stock bonus plans), but only if paid: Because of the plan participant's death, After the participant reaches age 59½, Because the participant, if an employee, separates from service, or After the participant, if a self-employed individual, becomes totally and permanently disabled. Can i do my 2012 taxes now    If you choose to include NUA in your income for the year of the distribution and the participant was born before January 2, 1936, you may be able to figure the tax on the NUA using the optional methods described und
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Office of the Attorney General

Website: Office of the Attorney General

Address: Office of the Attorney General
Bureau of Consumer Protection
Strawberry Square, 15th Floor
Harrisburg, PA 17120

Phone Number: 717-787-3391

Toll-free: 1-800-441-2555 (PA) 1-888-520-6680 (Home Improvement)

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Regional Consumer Protection Offices

Erie Regional Office - Office of the Attorney General

Website: Erie Regional Office - Office of the Attorney General

Address: Erie Regional Office - Office of the Attorney General
Bureau of Consumer Protection
1001 State St., 10th Floor
Erie, PA 16501

Phone Number: 814-871-4371

Philadelphia Regional Office - Office of the Attorney General

Website: Philadelphia Regional Office - Office of the Attorney General

Address: Philadelphia Regional Office - Office of the Attorney General
Bureau of Consumer Protection
21 S. 12th St., 2nd Floor
Philadelphia, PA 19107

Phone Number: 215-560-2414

Pittsburgh Regional Office - Bureau of Consumer Protection

Website: Pittsburgh Regional Office - Bureau of Consumer Protection

Address: Pittsburgh Regional Office - Bureau of Consumer Protection
Bureau of Consumer Protection
Manor Complex, 6th Floor
564 Forbes Ave.
Pittsburgh, PA 15219

Phone Number: 412-565-5135

Scranton Regional Office of the Attorney General

Website: Scranton Regional Office of the Attorney General

Address: Scranton Regional Office of the Attorney General
Bureau of Consumer Protection
100 Samter Building
101 Penn Ave.
Scranton, PA 18503

Phone Number: 570-963-4913

State College Regional Office of the Attorney General

Website: State College Regional Office of the Attorney General

Address: State College Regional Office of the Attorney General
Bureau of Consumer Protection
444 E. College Ave., Suite 440
State College, PA 16801

Phone Number: 814-863-3900

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County Consumer Protection Offices

Bucks County Department of Consumer Protection

Website: Bucks County Department of Consumer Protection

Address: Bucks County Department of Consumer Protection
50 N. Main St.
Doylestown, PA 18901

Phone Number: 215-348-7442

Delaware County Consumer Affairs

Website: Delaware County Consumer Affairs

Address: Delaware County Consumer Affairs
201 W. Front St.
Government Center Building
Media, PA 19063

Phone Number: 610-891-4865

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Banking

Website: Department of Banking

Address: Department of Banking
Consumer Services
17 N. Second St., Suite 1300
Harrisburg, PA 17101-2290

Phone Number: 717-787-1854

Toll-free: 1-800-722-2657

TTY: 1-800-679-5070

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Insurance Department

Website: Insurance Department

Address: Insurance Department
Consumer Services
1209 Strawberry Square
Harrisburg, PA 17120

Phone Number: 717-787-2317

Toll-free: 1-877-881-6388 (PA)

TTY: 717-783-3898

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Securities Commission

Website: Securities Commission

Address: Securities Commission
17 N. 2nd St., Suite 1300
Harrisburg, PA 17101

Phone Number: 717-787-1854

Toll-free: 1-800-722-2657 (PA)

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Pennsylvania Office of Consumer Advocate

Website: Pennsylvania Office of Consumer Advocate

Address: Pennsylvania Office of Consumer Advocate
Office of the Attorney General
555 Walnut St.
5th Floor, Forum Place
Harrisburg, PA 17101-1923

Phone Number: 717-783-5048

Toll-free: 1-800-684-6560 (PA)

Public Utility Commission

Website: Public Utility Commission

Address: Public Utility Commission
Bureau of Consumer Services
PO Box 3265
Harrisburg, PA 17105-3265

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The Can I Do My 2012 Taxes Now

Can i do my 2012 taxes now 1. Can i do my 2012 taxes now   Investment Income Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: General InformationSSN for joint account. Can i do my 2012 taxes now Custodian account for your child. Can i do my 2012 taxes now Penalty for failure to supply SSN. Can i do my 2012 taxes now Certification. Can i do my 2012 taxes now Underreported interest and dividends. Can i do my 2012 taxes now How to stop backup withholding due to underreporting. Can i do my 2012 taxes now How to stop backup withholding due to an incorrect identification number. Can i do my 2012 taxes now Reporting backup withholding. Can i do my 2012 taxes now Nonresident aliens. Can i do my 2012 taxes now Penalties. Can i do my 2012 taxes now Savings account with parent as trustee. Can i do my 2012 taxes now Interest IncomeInterest not reported on Form 1099-INT. Can i do my 2012 taxes now Nominees. Can i do my 2012 taxes now Incorrect amount. Can i do my 2012 taxes now Information reporting requirement. Can i do my 2012 taxes now Taxable Interest — General Below-Market Loans U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Savings Bonds U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Treasury Bills, Notes, and Bonds Bonds Sold Between Interest Dates Insurance State or Local Government Obligations Discount on Debt InstrumentsOriginal Issue Discount (OID) Market Discount Bonds Discount on Short-Term Obligations Election To Report All Interest as OID When To Report Interest IncomeConstructive receipt. Can i do my 2012 taxes now How To Report Interest IncomeSchedule B (Form 1040A or 1040). Can i do my 2012 taxes now Worksheet for savings bonds distributed from a retirement or profit-sharing plan. Can i do my 2012 taxes now File Form 1099-INT with the IRS. Can i do my 2012 taxes now Dividends and Other DistributionsDividends not reported on Form 1099-DIV. Can i do my 2012 taxes now Nominees. Can i do my 2012 taxes now Ordinary Dividends Capital Gain Distributions Nondividend Distributions Liquidating Distributions Distributions of Stock and Stock Rights Other Distributions How To Report Dividend IncomeElection. Can i do my 2012 taxes now Independent contractor. Can i do my 2012 taxes now Investment interest deducted. Can i do my 2012 taxes now Exception 1. Can i do my 2012 taxes now Exception 2. Can i do my 2012 taxes now Undistributed capital gains. Can i do my 2012 taxes now File Form 1099-DIV with the IRS. Can i do my 2012 taxes now Stripped Preferred Stock REMICs, FASITs, and Other CDOsREMICs Collateralized Debt Obligations (CDOs) FASITs S CorporationsLimit on losses and deductions. Can i do my 2012 taxes now Passive activity losses. Can i do my 2012 taxes now Form 8582. Can i do my 2012 taxes now Investment ClubsInvestments in name of member. Can i do my 2012 taxes now Tax Treatment of the Club Topics - This chapter discusses: Interest Income , Discount on Debt Instruments , When To Report Interest Income , How To Report Interest Income , Dividends and Other Distributions , How To Report Dividend Income , Stripped Preferred Stock , Real estate mortgage investment conduits (REMICs), financial asset securitization investment trusts (FASITs), and other collateralized debt obligations (CDOs) , S Corporations , and Investment Clubs . Can i do my 2012 taxes now Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 537 Installment Sales 590 Individual Retirement Arrangements (IRAs) 925 Passive Activity and At-Risk Rules 1212 Guide to Original Issue Discount (OID) Instruments Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends Schedule D (Form 1040) Capital Gains and Losses 1040 U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Individual Income Tax Return 1040A U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1099 General Instructions for Certain Information Returns 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 3115 Application for Change in Accounting Method 6251 Alternative Minimum Tax — Individuals 8582 Passive Activity Loss Limitations 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends 8815 Exclusion of Interest From Series EE and I U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Savings Bonds Issued After 1989 8818 Optional Form To Record Redemption of Series EE and I U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Savings Bonds Issued After 1989 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets 8960 Net Investment Income Tax—Individuals, Estates, and Trusts See chapter 5, How To Get Tax Help , for information about getting these publications and forms. Can i do my 2012 taxes now General Information A few items of general interest are covered here. Can i do my 2012 taxes now Recordkeeping. Can i do my 2012 taxes now You should keep a list showing sources and investment income amounts you receive during the year. Can i do my 2012 taxes now Also keep the forms you receive showing your investment income (Forms 1099-INT, Interest Income, and 1099-DIV, Dividends and Distributions, for example) as an important part of your records. Can i do my 2012 taxes now Net investment income tax (NIIT). Can i do my 2012 taxes now   Beginning in 2013, you may be subject to the NIIT. Can i do my 2012 taxes now The NIIT is a 3. Can i do my 2012 taxes now 8% tax on the lesser of your net investment income or the amount of your modified adjusted gross income (MAGI) that is over a threshold amount based on your filing status. Can i do my 2012 taxes now    Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household (with qualifying person) $200,000 Qualifying Widow(er) with dependent child $250,000    For more information, see Form 8960 and Instructions for Form 8960. Can i do my 2012 taxes now Tax on unearned income of certain children. Can i do my 2012 taxes now   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. Can i do my 2012 taxes now This may happen if all of the following are true. Can i do my 2012 taxes now The child had more than $2,000 of unearned income. Can i do my 2012 taxes now The child is required to file a tax return. Can i do my 2012 taxes now The child was: Under age 18 at the end of 2013, Age 18 at the end of 2013 and did not have earned income that was more than half of the child's support, or A full-time student over age 18 and under age 24 at the end of 2013 and did not have earned income that was more than half of the child's support. Can i do my 2012 taxes now At least one of the child's parents was alive at the end of 2013. Can i do my 2012 taxes now The child does not file a joint return for 2013. Can i do my 2012 taxes now A child born on January 1, 1996, is considered to be age 18 at the end of 2013; a child born on January 1, 1995, is considered to be age 19 at the end of 2013; a child born on January 1, 1990, is considered to be age 24 at the end of 2013. Can i do my 2012 taxes now   If all of these statements are true, Form 8615 must be completed and attached to the child's tax return. Can i do my 2012 taxes now If any of these statements is not true, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Can i do my 2012 taxes now    However, the parent can choose to include the child's interest and dividends on the parent's return if certain requirements are met. Can i do my 2012 taxes now Use Form 8814 for this purpose. Can i do my 2012 taxes now   For more information about the tax on unearned income of children and the parents' election, see Publication 929, Tax Rules for Children and Dependents. Can i do my 2012 taxes now Beneficiary of an estate or trust. Can i do my 2012 taxes now   Interest, dividends, and other investment income you receive as a beneficiary of an estate or trust is generally taxable income. Can i do my 2012 taxes now You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Can i do my 2012 taxes now , from the fiduciary. Can i do my 2012 taxes now Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. Can i do my 2012 taxes now Social security number (SSN). Can i do my 2012 taxes now   You must give your name and SSN or individual tax identification number (ITIN) to any person required by federal tax law to make a return, statement, or other document that relates to you. Can i do my 2012 taxes now This includes payers of interest and dividends. Can i do my 2012 taxes now If you do not give your SSN or ITIN to the payer of interest, you may have to pay a penalty. Can i do my 2012 taxes now SSN for joint account. Can i do my 2012 taxes now   If the funds in a joint account belong to one person, list that person's name first on the account and give that person's SSN to the payer. Can i do my 2012 taxes now (For information on who owns the funds in a joint account, see Joint accounts , later. Can i do my 2012 taxes now ) If the joint account contains combined funds, give the SSN of the person whose name is listed first on the account. Can i do my 2012 taxes now This is because only one name and SSN can be shown on Form 1099. Can i do my 2012 taxes now   These rules apply both to joint ownership by a married couple and to joint ownership by other individuals. Can i do my 2012 taxes now For example, if you open a joint savings account with your child using funds belonging to the child, list the child's name first on the account and give the child's SSN. Can i do my 2012 taxes now Custodian account for your child. Can i do my 2012 taxes now   If your child is the actual owner of an account that is recorded in your name as custodian for the child, give the child's SSN to the payer. Can i do my 2012 taxes now For example, you must give your child's SSN to the payer of dividends on stock owned by your child, even though the dividends are paid to you as custodian. Can i do my 2012 taxes now Penalty for failure to supply SSN. Can i do my 2012 taxes now   You will be subject to a penalty if, when required, you fail to: Include your SSN on any return, statement, or other document, Give your SSN to another person who must include it on any return, statement, or other document, or Include the SSN of another person on any return, statement, or other document. Can i do my 2012 taxes now The penalty is $50 for each failure up to a maximum penalty of $100,000 for any calendar year. Can i do my 2012 taxes now   You will not be subject to this penalty if you can show that your failure to provide the SSN was due to reasonable cause and not to willful neglect. Can i do my 2012 taxes now   If you fail to supply an SSN, you may also be subject to backup withholding. Can i do my 2012 taxes now Backup withholding. Can i do my 2012 taxes now   Your investment income is generally not subject to regular withholding. Can i do my 2012 taxes now However, it may be subject to backup withholding to ensure that income tax is collected on the income. Can i do my 2012 taxes now Under backup withholding, the bank, broker, or other payer of interest, original issue discount (OID), dividends, cash patronage dividends, or royalties must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. Can i do my 2012 taxes now   Backup withholding applies if: You do not give the payer your identification number (either a social security number or an employer identification number) in the required manner, The IRS notifies the payer that you gave an incorrect identification number, The IRS notifies the payer that you are subject to backup withholding on interest or dividends because you have underreported interest or dividends on your income tax return, or You are required, but fail, to certify that you are not subject to backup withholding for the reason described in (3). Can i do my 2012 taxes now Certification. Can i do my 2012 taxes now   For new accounts paying interest or dividends, you must certify under penalties of perjury that your SSN is correct and that you are not subject to backup withholding. Can i do my 2012 taxes now Your payer will give you a Form W-9, Request for Taxpayer Identification Number and Certification, or similar form, to make this certification. Can i do my 2012 taxes now If you fail to make this certification, backup withholding may begin immediately on your new account or investment. Can i do my 2012 taxes now Underreported interest and dividends. Can i do my 2012 taxes now   You will be considered to have underreported your interest and dividends if the IRS has determined for a tax year that: You failed to include any part of a reportable interest or dividend payment required to be shown on your return, or You were required to file a return and to include a reportable interest or dividend payment on that return, but you failed to file the return. Can i do my 2012 taxes now How to stop backup withholding due to underreporting. Can i do my 2012 taxes now   If you have been notified that you underreported interest or dividends, you can request a determination from the IRS to prevent backup withholding from starting or to stop backup withholding once it has begun. Can i do my 2012 taxes now You must show that at least one of the following situations applies. Can i do my 2012 taxes now No underreporting occurred. Can i do my 2012 taxes now You have a bona fide dispute with the IRS about whether underreporting occurred. Can i do my 2012 taxes now Backup withholding will cause or is causing an undue hardship, and it is unlikely that you will underreport interest and dividends in the future. Can i do my 2012 taxes now You have corrected the underreporting by filing a return if you did not previously file one and by paying all taxes, penalties, and interest due for any underreported interest or dividend payments. Can i do my 2012 taxes now   If the IRS determines that backup withholding should stop, it will provide you with a certification and will notify the payers who were sent notices earlier. Can i do my 2012 taxes now How to stop backup withholding due to an incorrect identification number. Can i do my 2012 taxes now   If you have been notified by a payer that you are subject to backup withholding because you have provided an incorrect SSN or employer identification number, you can stop it by following the instructions the payer gives you. Can i do my 2012 taxes now Reporting backup withholding. Can i do my 2012 taxes now   If backup withholding is deducted from your interest or dividend income or other reportable payment, the bank or other business must give you an information return for the year (for example, a Form 1099-INT) indicating the amount withheld. Can i do my 2012 taxes now The information return will show any backup withholding as “Federal income tax withheld. Can i do my 2012 taxes now ” Nonresident aliens. Can i do my 2012 taxes now    Generally, payments made to nonresident aliens are not subject to backup withholding. Can i do my 2012 taxes now You can use Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, to certify exempt status. Can i do my 2012 taxes now However, this does not exempt you from the 30% (or lower treaty) withholding rate that may apply to your investment income. Can i do my 2012 taxes now For information on the 30% rate, see Publication 519, U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Tax Guide for Aliens. Can i do my 2012 taxes now Penalties. Can i do my 2012 taxes now   There are civil and criminal penalties for giving false information to avoid backup withholding. Can i do my 2012 taxes now The civil penalty is $500. Can i do my 2012 taxes now The criminal penalty, upon conviction, is a fine of up to $1,000, or imprisonment of up to 1 year, or both. Can i do my 2012 taxes now Where to report investment income. Can i do my 2012 taxes now   Table 1-1 gives an overview of the forms and schedules to use to report some common types of investment income. Can i do my 2012 taxes now But see the rest of this publication for detailed information about reporting investment income. Can i do my 2012 taxes now Joint accounts. Can i do my 2012 taxes now   If two or more persons hold property (such as a savings account, bond, or stock) as joint tenants, tenants by the entirety, or tenants in common, each person's share of any interest or dividends from the property is determined by local law. Can i do my 2012 taxes now Community property states. Can i do my 2012 taxes now   If you are married and receive a distribution that is community income, one-half of the distribution is generally considered to be received by each spouse. Can i do my 2012 taxes now If you file separate returns, you must each report one-half of any taxable distribution. Can i do my 2012 taxes now See Publication 555, Community Property, for more information on community income. Can i do my 2012 taxes now   If the distribution is not considered community property and you and your spouse file separate returns, each of you must report your separate taxable distributions. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now You and your spouse have a joint money market account. Can i do my 2012 taxes now Under state law, half the income from the account belongs to you, and half belongs to your spouse. Can i do my 2012 taxes now If you file separate returns, you each report half the income. Can i do my 2012 taxes now Income from property given to a child. Can i do my 2012 taxes now   Property you give as a parent to your child under the Model Gifts of Securities to Minors Act, the Uniform Gifts to Minors Act, or any similar law becomes the child's property. Can i do my 2012 taxes now   Income from the property is taxable to the child, except that any part used to satisfy a legal obligation to support the child is taxable to the parent or guardian having that legal obligation. Can i do my 2012 taxes now Savings account with parent as trustee. Can i do my 2012 taxes now   Interest income from a savings account opened for a minor child, but placed in the name and subject to the order of the parents as trustees, is taxable to the child if, under the law of the state in which the child resides, both of the following are true. Can i do my 2012 taxes now The savings account legally belongs to the child. Can i do my 2012 taxes now The parents are not legally permitted to use any of the funds to support the child. Can i do my 2012 taxes now Table 1-1. Can i do my 2012 taxes now Where To Report Common Types of Investment Income (For detailed information about reporting investment income, see the rest of this publication, especially How To Report Interest Income and How To Report Dividend Income in chapter 1. Can i do my 2012 taxes now ) Type of Income If you file Form 1040, report on . Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now If you can file Form 1040A, report on . Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now If you can file Form 1040EZ, report on . Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now Tax-exempt interest (Form 1099-INT, box 8) Line 8b Line 8b Space to the left of line 2 (enter “TEI” and the amount) Taxable interest that totals $1,500 or less Line 8a (You may need to file Schedule B as well. Can i do my 2012 taxes now ) Line 8a (You may need to file Schedule B as well. Can i do my 2012 taxes now ) Line 2 Taxable interest that totals more than $1,500 Line 8a; also use Schedule B, line 1 Line 8a; also use Schedule B, line 1   Savings bond interest you will exclude because of higher education expenses Schedule B; also use Form 8815 Schedule B; also use Form 8815   Ordinary dividends that total $1,500 or less Line 9a (You may need to file Schedule B as well. Can i do my 2012 taxes now ) Line 9a (You may need to file Schedule B as well. Can i do my 2012 taxes now )   Ordinary dividends that total more than $1,500 Line 9a; also use Schedule B, line 5 Line 9a; also use Schedule B, line 5   Qualified dividends (if you do not have to file Schedule D) Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 2 Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 2   Qualified dividends (if you have to file Schedule D) Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet, line 2 You cannot use Form 1040A    You cannot use Form 1040EZ Capital gain distributions (if you do not have to file Schedule D) Line 13; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 3 Line 10; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 3   Capital gain distributions (if you have to file Schedule D) Schedule D, line 13; also use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet     Section 1250, 1202, or collectibles gain (Form 1099-DIV, box 2b, 2c, or 2d) Form 8949 and Schedule D     Nondividend distributions (Form 1099-DIV, box 3) Generally not reported*     Undistributed capital gains (Form 2439, boxes 1a - 1d) Schedule D     Gain or loss from sales of stocks or bonds Line 13; also use Form 8949, Schedule D, and the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet You cannot use Form 1040A   Gain or loss from exchanges of like-kind investment property Line 13; also use Schedule D, Form 8824, and the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet     *Report any amounts in excess of your basis in your mutual fund shares on Form 8949. Can i do my 2012 taxes now Use Part II if you held the shares more than 1 year. Can i do my 2012 taxes now Use Part I if you held your mutual fund shares 1 year or less. Can i do my 2012 taxes now For details on Form 8949, see Reporting Capital Gains and Losses in chapter 4, and the Instructions for Form 8949. Can i do my 2012 taxes now Accuracy-related penalty. Can i do my 2012 taxes now   An accuracy-related penalty of 20% can be charged for underpayments of tax due to negligence or disregard of rules or regulations or substantial understatement of tax. Can i do my 2012 taxes now For information on the penalty and any interest that applies, see Penalties in chapter 2. Can i do my 2012 taxes now Interest Income This section discusses the tax treatment of different types of interest income. Can i do my 2012 taxes now In general, any interest that you receive or that is credited to your account and can be withdrawn is taxable income. Can i do my 2012 taxes now (It does not have to be entered in your passbook. Can i do my 2012 taxes now ) Exceptions to this rule are discussed later. Can i do my 2012 taxes now Form 1099-INT. Can i do my 2012 taxes now   Interest income is generally reported to you on Form 1099-INT, or a similar statement, by banks, savings and loans, and other payers of interest. Can i do my 2012 taxes now This form shows you the interest you received during the year. Can i do my 2012 taxes now Keep this form for your records. Can i do my 2012 taxes now You do not have to attach it to your tax return. Can i do my 2012 taxes now   Report on your tax return the total interest income you receive for the tax year. Can i do my 2012 taxes now Interest not reported on Form 1099-INT. Can i do my 2012 taxes now   Even if you do not receive Form 1099-INT, you must still report all of your interest income. Can i do my 2012 taxes now For example, you may receive distributive shares of interest from partnerships or S corporations. Can i do my 2012 taxes now This interest is reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Can i do my 2012 taxes now , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. Can i do my 2012 taxes now Nominees. Can i do my 2012 taxes now   Generally, if someone receives interest as a nominee for you, that person must give you a Form 1099-INT showing the interest received on your behalf. Can i do my 2012 taxes now   If you receive a Form 1099-INT that includes amounts belonging to another person, see the discussion on Nominee distributions , later, under How To Report Interest Income. Can i do my 2012 taxes now Incorrect amount. Can i do my 2012 taxes now   If you receive a Form 1099-INT that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. Can i do my 2012 taxes now The new Form 1099-INT you receive will be marked “Corrected. Can i do my 2012 taxes now ” Form 1099-OID. Can i do my 2012 taxes now   Reportable interest income also may be shown on Form 1099-OID, Original Issue Discount. Can i do my 2012 taxes now For more information about amounts shown on this form, see Original Issue Discount (OID) , later in this chapter. Can i do my 2012 taxes now Exempt-interest dividends. Can i do my 2012 taxes now   Exempt-interest dividends you receive from a mutual fund or other regulated investment company, including those received from a qualified fund of funds in any tax year beginning after December 22, 2010, are not included in your taxable income. Can i do my 2012 taxes now (However, see Information reporting requirement , next. Can i do my 2012 taxes now ) Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. Can i do my 2012 taxes now You do not reduce your basis for distributions that are exempt-interest dividends. Can i do my 2012 taxes now Information reporting requirement. Can i do my 2012 taxes now   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file. Can i do my 2012 taxes now This is an information reporting requirement and does not change the exempt-interest dividends into taxable income. Can i do my 2012 taxes now See How To Report Interest Income , later. Can i do my 2012 taxes now Note. Can i do my 2012 taxes now Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. Can i do my 2012 taxes now The exempt-interest dividends subject to the alternative minimum tax are shown in box 11 of Form 1099-DIV. Can i do my 2012 taxes now See Form 6251 and its instructions for more information about this tax. Can i do my 2012 taxes now Private activity bonds are discussed later under State or Local Government Obligations. Can i do my 2012 taxes now Interest on VA dividends. Can i do my 2012 taxes now   Interest on insurance dividends left on deposit with the Department of Veterans Affairs (VA) is not taxable. Can i do my 2012 taxes now This includes interest paid on dividends on converted United States Government Life Insurance policies and on National Service Life Insurance policies. Can i do my 2012 taxes now Individual retirement arrangements (IRAs). Can i do my 2012 taxes now   Interest on a Roth IRA generally is not taxable. Can i do my 2012 taxes now Interest on a traditional IRA is tax deferred. Can i do my 2012 taxes now You generally do not include it in your income until you make withdrawals from the IRA. Can i do my 2012 taxes now See Publication 590 for more information. Can i do my 2012 taxes now Taxable Interest — General Taxable interest includes interest you receive from bank accounts, loans you make to others, and other sources. Can i do my 2012 taxes now The following are some sources of taxable interest. Can i do my 2012 taxes now Dividends that are actually interest. Can i do my 2012 taxes now   Certain distributions commonly called dividends are actually interest. Can i do my 2012 taxes now You must report as interest so-called “dividends” on deposits or on share accounts in: Cooperative banks, Credit unions, Domestic building and loan associations, Domestic savings and loan associations, Federal savings and loan associations, and Mutual savings banks. Can i do my 2012 taxes now  The “dividends” will be shown as interest income on Form 1099-INT. Can i do my 2012 taxes now Money market funds. Can i do my 2012 taxes now   Money market funds are offered by nonbank financial institutions such as mutual funds and stock brokerage houses, and pay dividends. Can i do my 2012 taxes now Generally, amounts you receive from money market funds should be reported as dividends, not as interest. Can i do my 2012 taxes now Certificates of deposit and other deferred interest accounts. Can i do my 2012 taxes now   If you open any of these accounts, interest may be paid at fixed intervals of 1 year or less during the term of the account. Can i do my 2012 taxes now You generally must include this interest in your income when you actually receive it or are entitled to receive it without paying a substantial penalty. Can i do my 2012 taxes now The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. Can i do my 2012 taxes now If interest is deferred for more than 1 year, see Original Issue Discount (OID) , later. Can i do my 2012 taxes now Interest subject to penalty for early withdrawal. Can i do my 2012 taxes now   If you withdraw funds from a deferred interest account before maturity, you may have to pay a penalty. Can i do my 2012 taxes now You must report the total amount of interest paid or credited to your account during the year, without subtracting the penalty. Can i do my 2012 taxes now See Penalty on early withdrawal of savings under How To Report Interest Income, later, for more information on how to report the interest and deduct the penalty. Can i do my 2012 taxes now Money borrowed to invest in certificate of deposit. Can i do my 2012 taxes now   The interest you pay on money borrowed from a bank or savings institution to meet the minimum deposit required for a certificate of deposit from the institution and the interest you earn on the certificate are two separate items. Can i do my 2012 taxes now You must report the total interest you earn on the certificate in your income. Can i do my 2012 taxes now If you itemize deductions, you can deduct the interest you pay as investment interest, up to the amount of your net investment income. Can i do my 2012 taxes now See Interest Expenses in chapter 3. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now You deposited $5,000 with a bank and borrowed $5,000 from the bank to make up the $10,000 minimum deposit required to buy a 6-month certificate of deposit. Can i do my 2012 taxes now The certificate earned $575 at maturity in 2013, but you received only $265, which represented the $575 you earned minus $310 interest charged on your $5,000 loan. Can i do my 2012 taxes now The bank gives you a Form 1099-INT for 2013 showing the $575 interest you earned. Can i do my 2012 taxes now The bank also gives you a statement showing that you paid $310 interest for 2013. Can i do my 2012 taxes now You must include the $575 in your income. Can i do my 2012 taxes now If you itemize your deductions on Schedule A (Form 1040), Itemized Deductions, you can deduct $310, subject to the net investment income limit. Can i do my 2012 taxes now Gift for opening account. Can i do my 2012 taxes now   If you receive noncash gifts or services for making deposits or for opening an account in a savings institution, you may have to report the value as interest. Can i do my 2012 taxes now   For deposits of less than $5,000, gifts or services valued at more than $10 must be reported as interest. Can i do my 2012 taxes now For deposits of $5,000 or more, gifts or services valued at more than $20 must be reported as interest. Can i do my 2012 taxes now The value is determined by the cost to the financial institution. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now You open a savings account at your local bank and deposit $800. Can i do my 2012 taxes now The account earns $20 interest. Can i do my 2012 taxes now You also receive a $15 calculator. Can i do my 2012 taxes now If no other interest is credited to your account during the year, the Form 1099-INT you receive will show $35 interest for the year. Can i do my 2012 taxes now You must report $35 interest income on your tax return. Can i do my 2012 taxes now Interest on insurance dividends. Can i do my 2012 taxes now   Interest on insurance dividends left on deposit with an insurance company that can be withdrawn annually is taxable to you in the year it is credited to your account. Can i do my 2012 taxes now However, if you can withdraw it only on the anniversary date of the policy (or other specified date), the interest is taxable in the year that date occurs. Can i do my 2012 taxes now Prepaid insurance premiums. Can i do my 2012 taxes now   Any increase in the value of prepaid insurance premiums, advance premiums, or premium deposit funds is interest if it is applied to the payment of premiums due on insurance policies or made available for you to withdraw. Can i do my 2012 taxes now U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now obligations. Can i do my 2012 taxes now   Interest on U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now obligations, such as U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Treasury bills, notes, and bonds, issued by any agency or instrumentality of the United States is taxable for federal income tax purposes. Can i do my 2012 taxes now Interest on tax refunds. Can i do my 2012 taxes now   Interest you receive on tax refunds is taxable income. Can i do my 2012 taxes now Interest on condemnation award. Can i do my 2012 taxes now   If the condemning authority pays you interest to compensate you for a delay in payment of an award, the interest is taxable. Can i do my 2012 taxes now Installment sale payments. Can i do my 2012 taxes now   If a contract for the sale or exchange of property provides for deferred payments, it also usually provides for interest payable with the deferred payments. Can i do my 2012 taxes now That interest is taxable when you receive it. Can i do my 2012 taxes now If little or no interest is provided for in a deferred payment contract, part of each payment may be treated as interest. Can i do my 2012 taxes now See Unstated Interest and Original Issue Discount (OID) in Publication 537. Can i do my 2012 taxes now Interest on annuity contract. Can i do my 2012 taxes now   Accumulated interest on an annuity contract you sell before its maturity date is taxable. Can i do my 2012 taxes now Usurious interest. Can i do my 2012 taxes now   Usurious interest is interest charged at an illegal rate. Can i do my 2012 taxes now This is taxable as interest unless state law automatically changes it to a payment on the principal. Can i do my 2012 taxes now Interest income on frozen deposits. Can i do my 2012 taxes now   Exclude from your gross income interest on frozen deposits. Can i do my 2012 taxes now A deposit is frozen if, at the end of the year, you cannot withdraw any part of the deposit because: The financial institution is bankrupt or insolvent, or The state in which the institution is located has placed limits on withdrawals because other financial institutions in the state are bankrupt or insolvent. Can i do my 2012 taxes now   The amount of interest you must exclude is the interest that was credited on the frozen deposits minus the sum of: The net amount you withdrew from these deposits during the year, and The amount you could have withdrawn as of the end of the year (not reduced by any penalty for premature withdrawals of a time deposit). Can i do my 2012 taxes now If you receive a Form 1099-INT for interest income on deposits that were frozen at the end of 2013, see Frozen deposits under How To Report Interest Income for information about reporting this interest income exclusion on your tax return. Can i do my 2012 taxes now   The interest you exclude is treated as credited to your account in the following year. Can i do my 2012 taxes now You must include it in income in the year you can withdraw it. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now $100 of interest was credited on your frozen deposit during the year. Can i do my 2012 taxes now You withdrew $80 but could not withdraw any more as of the end of the year. Can i do my 2012 taxes now You must include $80 in your income and exclude $20 from your income for the year. Can i do my 2012 taxes now You must include the $20 in your income for the year you can withdraw it. Can i do my 2012 taxes now Bonds traded flat. Can i do my 2012 taxes now    If you buy a bond at a discount when interest has been defaulted or when the interest has accrued but has not been paid, the transaction is described as trading a bond flat. Can i do my 2012 taxes now The defaulted or unpaid interest is not income and is not taxable as interest if paid later. Can i do my 2012 taxes now When you receive a payment of that interest, it is a return of capital that reduces the remaining cost basis of your bond. Can i do my 2012 taxes now Interest that accrues after the date of purchase, however, is taxable interest income for the year received or accrued. Can i do my 2012 taxes now See Bonds Sold Between Interest Dates , later in this chapter. Can i do my 2012 taxes now Below-Market Loans If you make a below-market gift or demand loan, you must report as interest income any forgone interest (defined later) from that loan. Can i do my 2012 taxes now The below-market loan rules and exceptions are described in this section. Can i do my 2012 taxes now For more information, see section 7872 of the Internal Revenue Code and its regulations. Can i do my 2012 taxes now If you receive a below-market loan, you may be able to deduct the forgone interest as well as any interest you actually paid, but not if it is personal interest. Can i do my 2012 taxes now Loans subject to the rules. Can i do my 2012 taxes now   The rules for below-market loans apply to: Gift loans, Pay-related loans, Corporation-shareholder loans, Tax avoidance loans, and Certain loans made to qualified continuing care facilities under a continuing care contract. Can i do my 2012 taxes now A pay-related loan is any below-market loan between an employer and an employee or between an independent contractor and a person for whom the contractor provides services. Can i do my 2012 taxes now A tax avoidance loan is any below-market loan where the avoidance of federal tax is one of the main purposes of the interest arrangement. Can i do my 2012 taxes now Forgone interest. Can i do my 2012 taxes now   For any period, forgone interest is: The amount of interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. Can i do my 2012 taxes now Applicable federal rate. Can i do my 2012 taxes now   Applicable federal rates are published by the IRS each month in the Internal Revenue Bulletin. Can i do my 2012 taxes now Some IRS offices have these bulletins available for research. Can i do my 2012 taxes now See chapter 5, How To Get Tax Help , for other ways to get this information. Can i do my 2012 taxes now Rules for below-market loans. Can i do my 2012 taxes now   The rules that apply to a below-market loan depend on whether the loan is a gift loan, demand loan, or term loan. Can i do my 2012 taxes now Gift and demand loans. Can i do my 2012 taxes now   A gift loan is any below-market loan where the forgone interest is in the nature of a gift. Can i do my 2012 taxes now   A demand loan is a loan payable in full at any time upon demand by the lender. Can i do my 2012 taxes now A demand loan is a below-market loan if no interest is charged or if interest is charged at a rate below the applicable federal rate. Can i do my 2012 taxes now   A demand loan or gift loan that is a below-market loan is generally treated as an arm's-length transaction in which the lender is treated as having made: A loan to the borrower in exchange for a note that requires the payment of interest at the applicable federal rate, and An additional payment to the borrower in an amount equal to the forgone interest. Can i do my 2012 taxes now The borrower is generally treated as transferring the additional payment back to the lender as interest. Can i do my 2012 taxes now The lender must report that amount as interest income. Can i do my 2012 taxes now   The lender's additional payment to the borrower is treated as a gift, dividend, contribution to capital, pay for services, or other payment, depending on the substance of the transaction. Can i do my 2012 taxes now The borrower may have to report this payment as taxable income, depending on its classification. Can i do my 2012 taxes now These transfers are considered to occur annually, generally on December 31. Can i do my 2012 taxes now Term loans. Can i do my 2012 taxes now   A term loan is any loan that is not a demand loan. Can i do my 2012 taxes now A term loan is a below-market loan if the amount of the loan is more than the present value of all payments due under the loan. Can i do my 2012 taxes now   A lender who makes a below-market term loan other than a gift loan is treated as transferring an additional lump-sum cash payment to the borrower (as a dividend, contribution to capital, etc. Can i do my 2012 taxes now ) on the date the loan is made. Can i do my 2012 taxes now The amount of this payment is the amount of the loan minus the present value, at the applicable federal rate, of all payments due under the loan. Can i do my 2012 taxes now An equal amount is treated as original issue discount (OID). Can i do my 2012 taxes now The lender must report the annual part of the OID as interest income. Can i do my 2012 taxes now The borrower may be able to deduct the OID as interest expense. Can i do my 2012 taxes now See Original Issue Discount (OID) , later. Can i do my 2012 taxes now Exceptions to the below-market loan rules. Can i do my 2012 taxes now   Exceptions to the below-market loan rules are discussed here. Can i do my 2012 taxes now Exception for loans of $10,000 or less. Can i do my 2012 taxes now   The rules for below-market loans do not apply to any day on which the total outstanding amount of loans between the borrower and lender is $10,000 or less. Can i do my 2012 taxes now This exception applies only to: Gift loans between individuals if the gift loan is not directly used to buy or carry income-producing assets, and Pay-related loans or corporation-shareholder loans if the avoidance of federal tax is not a principal purpose of the interest arrangement. Can i do my 2012 taxes now This exception does not apply to a term loan described in (2) earlier that previously has been subject to the below-market loan rules. Can i do my 2012 taxes now Those rules will continue to apply even if the outstanding balance is reduced to $10,000 or less. Can i do my 2012 taxes now Exception for loans to continuing care facilities. Can i do my 2012 taxes now   Loans to qualified continuing care facilities under continuing care contracts are not subject to the rules for below-market loans for the calendar year if the lender or the lender's spouse is age 62 or older at the end of the year. Can i do my 2012 taxes now For the definitions of qualified continuing care facility and continuing care contract, see Internal Revenue Code section 7872(h). Can i do my 2012 taxes now Exception for loans without significant tax effect. Can i do my 2012 taxes now   Loans are excluded from the below-market loan rules if their interest arrangements do not have a significant effect on the federal tax liability of the borrower or the lender. Can i do my 2012 taxes now These loans include: Loans made available by the lender to the general public on the same terms and conditions that are consistent with the lender's customary business practice; Loans subsidized by a federal, state, or municipal government that are made available under a program of general application to the public; Certain employee-relocation loans; Certain loans from a foreign person, unless the interest income would be effectively connected with the conduct of a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now trade or business and would not be exempt from U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now tax under an income tax treaty; Gift loans to a charitable organization, contributions to which are deductible, if the total outstanding amount of loans between the organization and lender is $250,000 or less at all times during the tax year; and Other loans on which the interest arrangement can be shown to have no significant effect on the federal tax liability of the lender or the borrower. Can i do my 2012 taxes now For a loan described in (6) above, all the facts and circumstances are used to determine if the interest arrangement has a significant effect on the federal tax liability of the lender or borrower. Can i do my 2012 taxes now Some factors to be considered are: Whether items of income and deduction generated by the loan offset each other; The amount of these items; The cost to you of complying with the below-market loan rules, if they were to apply; and Any reasons other than taxes for structuring the transaction as a below-market loan. Can i do my 2012 taxes now If you structure a transaction to meet this exception and one of the principal purposes of that structure is the avoidance of federal tax, the loan will be considered a tax-avoidance loan, and this exception will not apply. Can i do my 2012 taxes now Limit on forgone interest for gift loans of $100,000 or less. Can i do my 2012 taxes now   For gift loans between individuals, if the outstanding loans between the lender and borrower total $100,000 or less, the forgone interest to be included in income by the lender and deducted by the borrower is limited to the amount of the borrower's net investment income for the year. Can i do my 2012 taxes now If the borrower's net investment income is $1,000 or less, it is treated as zero. Can i do my 2012 taxes now This limit does not apply to a loan if the avoidance of federal tax is one of the main purposes of the interest arrangement. Can i do my 2012 taxes now Effective dates. Can i do my 2012 taxes now    These rules apply to term loans made after June 6, 1984, and to demand loans outstanding after that date. Can i do my 2012 taxes now U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Savings Bonds This section provides tax information on U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds. Can i do my 2012 taxes now It explains how to report the interest income on these bonds and how to treat transfers of these bonds. Can i do my 2012 taxes now U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds currently offered to individuals include Series EE bonds and Series I bonds. Can i do my 2012 taxes now For other information on U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds, write to:  For Series HH/H: Bureau of the Fiscal Service Division of Customer Assistance P. Can i do my 2012 taxes now O. Can i do my 2012 taxes now Box 2186 Parkersburg, WV 26106-2186  For Series EE and I paper savings bonds: Bureau of the Fiscal Service Division of Customer Assistance P. Can i do my 2012 taxes now O. Can i do my 2012 taxes now Box 7012 Parkersburg, WV 26106-7012  For Series EE and I electronic bonds: Bureau of the Fiscal Service  Division of Customer Assistance P. Can i do my 2012 taxes now O. Can i do my 2012 taxes now Box 7015 Parkersburg, WV 26106-7015 Or, on the Internet, visit: www. Can i do my 2012 taxes now treasurydirect. Can i do my 2012 taxes now gov/indiv/indiv. Can i do my 2012 taxes now htm. Can i do my 2012 taxes now Accrual method taxpayers. Can i do my 2012 taxes now   If you use an accrual method of accounting, you must report interest on U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds each year as it accrues. Can i do my 2012 taxes now You cannot postpone reporting interest until you receive it or until the bonds mature. Can i do my 2012 taxes now Cash method taxpayers. Can i do my 2012 taxes now   If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds when you receive it. Can i do my 2012 taxes now But see Reporting options for cash method taxpayers , later. Can i do my 2012 taxes now Series HH bonds. Can i do my 2012 taxes now   These bonds were issued at face value. Can i do my 2012 taxes now Interest is paid twice a year by direct deposit to your bank account. Can i do my 2012 taxes now If you are a cash method taxpayer, you must report interest on these bonds as income in the year you receive it. Can i do my 2012 taxes now   Series HH bonds were first offered in 1980 and last offered in August 2004. Can i do my 2012 taxes now Before 1980, series H bonds were issued. Can i do my 2012 taxes now Series H bonds are treated the same as series HH bonds. Can i do my 2012 taxes now If you are a cash method taxpayer, you must report the interest when you receive it. Can i do my 2012 taxes now   Series H bonds have a maturity period of 30 years. Can i do my 2012 taxes now Series HH bonds mature in 20 years. Can i do my 2012 taxes now The last series H bonds matured in 2009. Can i do my 2012 taxes now The last series HH bonds will mature in 2024. Can i do my 2012 taxes now Series EE and series I bonds. Can i do my 2012 taxes now   Interest on these bonds is payable when you redeem the bonds. Can i do my 2012 taxes now The difference between the purchase price and the redemption value is taxable interest. Can i do my 2012 taxes now Series EE bonds. Can i do my 2012 taxes now   Series EE bonds were first offered in January 1980 and have a maturity period of 30 years. Can i do my 2012 taxes now Before July 1980, series E bonds were issued. Can i do my 2012 taxes now The original 10-year maturity period of series E bonds has been extended to 40 years for bonds issued before December 1965 and 30 years for bonds issued after November 1965. Can i do my 2012 taxes now Paper series EE and series E bonds are issued at a discount. Can i do my 2012 taxes now The face value is payable to you at maturity. Can i do my 2012 taxes now Electronic series EE bonds are issued at their face value. Can i do my 2012 taxes now The face value plus accrued interest is payable to you at maturity. Can i do my 2012 taxes now As of January 1, 2012, paper savings bonds were no longer sold at financial institutions. Can i do my 2012 taxes now    Owners of paper series EE bonds can convert them to electronic bonds. Can i do my 2012 taxes now These converted bonds do not retain the denomination listed on the paper certificate but are posted at their purchase price (with accrued interest). Can i do my 2012 taxes now Series I bonds. Can i do my 2012 taxes now   Series I bonds were first offered in 1998. Can i do my 2012 taxes now These are inflation-indexed bonds issued at their face amount with a maturity period of 30 years. Can i do my 2012 taxes now The face value plus all accrued interest is payable to you at maturity. Can i do my 2012 taxes now Reporting options for cash method taxpayers. Can i do my 2012 taxes now   If you use the cash method of reporting income, you can report the interest on series EE, series E, and series I bonds in either of the following ways. Can i do my 2012 taxes now Method 1. Can i do my 2012 taxes now Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year in which they mature. Can i do my 2012 taxes now (However, see Savings bonds traded , later. Can i do my 2012 taxes now )  Note. Can i do my 2012 taxes now Series EE bonds issued in 1983 matured in 2013. Can i do my 2012 taxes now If you have used method 1, you generally must report the interest on these bonds on your 2013 return. Can i do my 2012 taxes now The last series E bonds were issued in 1980 and matured in 2010. Can i do my 2012 taxes now If you used method 1, you generally should have reported the interest on these bonds on your 2010 return. Can i do my 2012 taxes now Method 2. Can i do my 2012 taxes now Choose to report the increase in redemption value as interest each year. Can i do my 2012 taxes now  You must use the same method for all series EE, series E, and series I bonds you own. Can i do my 2012 taxes now If you do not choose method 2 by reporting the increase in redemption value as interest each year, you must use method 1. Can i do my 2012 taxes now If you plan to cash your bonds in the same year you will pay for higher educational expenses, you may want to use method 1 because you may be able to exclude the interest from your income. Can i do my 2012 taxes now To learn how, see Education Savings Bond Program, later. Can i do my 2012 taxes now Change from method 1. Can i do my 2012 taxes now   If you want to change your method of reporting the interest from method 1 to method 2, you can do so without permission from the IRS. Can i do my 2012 taxes now In the year of change, you must report all interest accrued to date and not previously reported for all your bonds. Can i do my 2012 taxes now   Once you choose to report the interest each year, you must continue to do so for all series EE, series E, and series I bonds you own and for any you get later, unless you request permission to change, as explained next. Can i do my 2012 taxes now Change from method 2. Can i do my 2012 taxes now   To change from method 2 to method 1, you must request permission from the IRS. Can i do my 2012 taxes now Permission for the change is automatically granted if you send the IRS a statement that meets all the following requirements. Can i do my 2012 taxes now You have typed or printed the following number at the top: “131. Can i do my 2012 taxes now ” It includes your name and social security number under “131. Can i do my 2012 taxes now ” It includes the year of change (both the beginning and ending dates). Can i do my 2012 taxes now It identifies the savings bonds for which you are requesting this change. Can i do my 2012 taxes now It includes your agreement to: Report all interest on any bonds acquired during or after the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest; and Report all interest on the bonds acquired before the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest, with the exception of the interest reported in prior tax years. Can i do my 2012 taxes now   You must attach this statement to your tax return for the year of change, which you must file by the due date (including extensions). Can i do my 2012 taxes now   You can have an automatic extension of 6 months from the due date of your return for the year of change (excluding extensions) to file the statement with an amended return. Can i do my 2012 taxes now On the statement, type or print “Filed pursuant to section 301. Can i do my 2012 taxes now 9100-2. Can i do my 2012 taxes now ” To get this extension, you must have filed your original return for the year of the change by the due date (including extensions). Can i do my 2012 taxes now    By the date you file the original statement with your return, you must also send a signed copy to the address below. Can i do my 2012 taxes now    Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) P. Can i do my 2012 taxes now O. Can i do my 2012 taxes now Box 7604 Benjamin Franklin Station Washington, DC 20044   If you use a private delivery service, send the signed copy to the address below. Can i do my 2012 taxes now Internal Revenue Service Attention: CC:IT&A  (Automatic Rulings Branch) Room 5336 1111 Constitution Avenue, NW Washington, DC 20224    Instead of filing this statement, you can request permission to change from method 2 to method 1 by filing Form 3115. Can i do my 2012 taxes now In that case, follow the form instructions for an automatic change. Can i do my 2012 taxes now No user fee is required. Can i do my 2012 taxes now Co-owners. Can i do my 2012 taxes now   If a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bond is issued in the names of co-owners, such as you and your child or you and your spouse, interest on the bond is generally taxable to the co-owner who bought the bond. Can i do my 2012 taxes now One co-owner's funds used. Can i do my 2012 taxes now   If you used your funds to buy the bond, you must pay the tax on the interest. Can i do my 2012 taxes now This is true even if you let the other co-owner redeem the bond and keep all the proceeds. Can i do my 2012 taxes now Under these circumstances, the co-owner who redeemed the bond will receive a Form 1099-INT at the time of redemption and must provide you with another Form 1099-INT showing the amount of interest from the bond taxable to you. Can i do my 2012 taxes now The co-owner who redeemed the bond is a “nominee. Can i do my 2012 taxes now ” See Nominee distributions under How To Report Interest Income, later, for more information about how a person who is a nominee reports interest income belonging to another person. Can i do my 2012 taxes now Both co-owners' funds used. Can i do my 2012 taxes now   If you and the other co-owner each contribute part of the bond's purchase price, the interest is generally taxable to each of you, in proportion to the amount each of you paid. Can i do my 2012 taxes now Community property. Can i do my 2012 taxes now   If you and your spouse live in a community property state and hold bonds as community property, one-half of the interest is considered received by each of you. Can i do my 2012 taxes now If you file separate returns, each of you generally must report one-half of the bond interest. Can i do my 2012 taxes now For more information about community property, see Publication 555. Can i do my 2012 taxes now Table 1-2. Can i do my 2012 taxes now   These rules are also shown in Table 1-2. Can i do my 2012 taxes now Child as only owner. Can i do my 2012 taxes now   Interest on U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds bought for and registered only in the name of your child is income to your child, even if you paid for the bonds and are named as beneficiary. Can i do my 2012 taxes now If the bonds are series EE, series E, or series I bonds, the interest on the bonds is income to your child in the earlier of the year the bonds are cashed or disposed of or the year the bonds mature, unless your child chooses to report the interest income each year. Can i do my 2012 taxes now Choice to report interest each year. Can i do my 2012 taxes now   The choice to report the accrued interest each year can be made either by your child or by you for your child. Can i do my 2012 taxes now This choice is made by filing an income tax return that shows all the interest earned to date, and by stating on the return that your child chooses to report the interest each year. Can i do my 2012 taxes now Either you or your child should keep a copy of this return. Can i do my 2012 taxes now   Unless your child is otherwise required to file a tax return for any year after making this choice, your child does not have to file a return only to report the annual accrual of U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bond interest under this choice. Can i do my 2012 taxes now However, see Tax on unearned income of certain children , earlier, under General Information. Can i do my 2012 taxes now Neither you nor your child can change the way you report the interest unless you request permission from the IRS, as discussed earlier under Change from method 2 . Can i do my 2012 taxes now Ownership transferred. Can i do my 2012 taxes now   If you bought series E, series EE, or series I bonds entirely with your own funds and had them reissued in your co-owner's name or beneficiary's name alone, you must include in your gross income for the year of reissue all interest that you earned on these bonds and have not previously reported. Can i do my 2012 taxes now But, if the bonds were reissued in your name alone, you do not have to report the interest accrued at that time. Can i do my 2012 taxes now   This same rule applies when bonds (other than bonds held as community property) are transferred between spouses or incident to divorce. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now You bought series EE bonds entirely with your own funds. Can i do my 2012 taxes now You did not choose to report the accrued interest each year. Can i do my 2012 taxes now Later, you transfer the bonds to your former spouse under a divorce agreement. Can i do my 2012 taxes now You must include the deferred accrued interest, from the date of the original issue of the bonds to the date of transfer, in your income in the year of transfer. Can i do my 2012 taxes now Your former spouse includes in income the interest on the bonds from the date of transfer to the date of redemption. Can i do my 2012 taxes now Table 1-2. Can i do my 2012 taxes now Who Pays the Tax on U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now Savings Bond Interest IF . Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now THEN the interest must be reported by . Can i do my 2012 taxes now . Can i do my 2012 taxes now . Can i do my 2012 taxes now you buy a bond in your name and the name of another person as co-owners, using only your own funds you. Can i do my 2012 taxes now you buy a bond in the name of another person, who is the sole owner of the bond the person for whom you bought the bond. Can i do my 2012 taxes now you and another person buy a bond as co-owners, each contributing part of the purchase price both you and the other co-owner, in proportion to the amount each paid for the bond. Can i do my 2012 taxes now you and your spouse, who live in a community property state, buy a bond that is community property you and your spouse. Can i do my 2012 taxes now If you file separate returns, both you and your spouse generally report one-half of the interest. Can i do my 2012 taxes now Purchased jointly. Can i do my 2012 taxes now   If you and a co-owner each contributed funds to buy series E, series EE, or series I bonds jointly and later have the bonds reissued in the co-owner's name alone, you must include in your gross income for the year of reissue your share of all the interest earned on the bonds that you have not previously reported. Can i do my 2012 taxes now The former co-owner does not have to include in gross income at the time of reissue his or her share of the interest earned that was not reported before the transfer. Can i do my 2012 taxes now This interest, however, as well as all interest earned after the reissue, is income to the former co-owner. Can i do my 2012 taxes now   This income-reporting rule also applies when the bonds are reissued in the name of your former co-owner and a new co-owner. Can i do my 2012 taxes now But the new co-owner will report only his or her share of the interest earned after the transfer. Can i do my 2012 taxes now   If bonds that you and a co-owner bought jointly are reissued to each of you separately in the same proportion as your contribution to the purchase price, neither you nor your co-owner has to report at that time the interest earned before the bonds were reissued. Can i do my 2012 taxes now Example 1. Can i do my 2012 taxes now You and your spouse each spent an equal amount to buy a $1,000 series EE savings bond. Can i do my 2012 taxes now The bond was issued to you and your spouse as co-owners. Can i do my 2012 taxes now You both postpone reporting interest on the bond. Can i do my 2012 taxes now You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. Can i do my 2012 taxes now At that time neither you nor your spouse has to report the interest earned to the date of reissue. Can i do my 2012 taxes now Example 2. Can i do my 2012 taxes now You bought a $1,000 series EE savings bond entirely with your own funds. Can i do my 2012 taxes now The bond was issued to you and your spouse as co-owners. Can i do my 2012 taxes now You both postponed reporting interest on the bond. Can i do my 2012 taxes now You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. Can i do my 2012 taxes now You must report half the interest earned to the date of reissue. Can i do my 2012 taxes now Transfer to a trust. Can i do my 2012 taxes now   If you own series E, series EE, or series I bonds and transfer them to a trust, giving up all rights of ownership, you must include in your income for that year the interest earned to the date of transfer if you have not already reported it. Can i do my 2012 taxes now However, if you are considered the owner of the trust and if the increase in value both before and after the transfer continues to be taxable to you, you can continue to defer reporting the interest earned each year. Can i do my 2012 taxes now You must include the total interest in your income in the year you cash or dispose of the bonds or the year the bonds finally mature, whichever is earlier. Can i do my 2012 taxes now   The same rules apply to previously unreported interest on series EE or series E bonds if the transfer to a trust consisted of series HH or series H bonds you acquired in a trade for the series EE or series E bonds. Can i do my 2012 taxes now See Savings bonds traded , later. Can i do my 2012 taxes now Decedents. Can i do my 2012 taxes now   The manner of reporting interest income on series E, series EE, or series I bonds, after the death of the owner (decedent), depends on the accounting and income-reporting methods previously used by the decedent. Can i do my 2012 taxes now Decedent who reported interest each year. Can i do my 2012 taxes now   If the bonds transferred because of death were owned by a person who used an accrual method, or who used the cash method and had chosen to report the interest each year, the interest earned in the year of death up to the date of death must be reported on that person's final return. Can i do my 2012 taxes now The person who acquires the bonds includes in income only interest earned after the date of death. Can i do my 2012 taxes now Decedent who postponed reporting interest. Can i do my 2012 taxes now   If the transferred bonds were owned by a decedent who had used the cash method and had not chosen to report the interest each year, and who had bought the bonds entirely with his or her own funds, all interest earned before death must be reported in one of the following ways. Can i do my 2012 taxes now The surviving spouse or personal representative (executor, administrator, etc. Can i do my 2012 taxes now ) who files the final income tax return of the decedent can choose to include on that return all interest earned on the bonds before the decedent's death. Can i do my 2012 taxes now The person who acquires the bonds then includes in income only interest earned after the date of death. Can i do my 2012 taxes now If the choice in (1) is not made, the interest earned up to the date of death is income in respect of the decedent and should not be included in the decedent's final return. Can i do my 2012 taxes now All interest earned both before and after the decedent's death (except any part reported by the estate on its income tax return) is income to the person who acquires the bonds. Can i do my 2012 taxes now If that person uses the cash method and does not choose to report the interest each year, he or she can postpone reporting it until the year the bonds are cashed or disposed of or the year they mature, whichever is earlier. Can i do my 2012 taxes now In the year that person reports the interest, he or she can claim a deduction for any federal estate tax paid on the part of the interest included in the decedent's estate. Can i do my 2012 taxes now For more information on income in respect of a decedent, see Publication 559, Survivors, Executors, and Administrators. Can i do my 2012 taxes now Example 1. Can i do my 2012 taxes now Your uncle, a cash method taxpayer, died and left you a $1,000 series EE bond. Can i do my 2012 taxes now He had bought the bond for $500 and had not chosen to report the interest each year. Can i do my 2012 taxes now At the date of death, interest of $200 had accrued on the bond, and its value of $700 was included in your uncle's estate. Can i do my 2012 taxes now Your uncle's executor chose not to include the $200 accrued interest in your uncle's final income tax return. Can i do my 2012 taxes now The $200 is income in respect of the decedent. Can i do my 2012 taxes now You are a cash method taxpayer and do not choose to report the interest each year as it is earned. Can i do my 2012 taxes now If you cash the bond when it reaches maturity value of $1,000, you report $500 interest income—the difference between maturity value of $1,000 and the original cost of $500. Can i do my 2012 taxes now For that year, you can deduct (as a miscellaneous itemized deduction not subject to the 2%-of-adjusted-gross-income limit) any federal estate tax paid because the $200 interest was included in your uncle's estate. Can i do my 2012 taxes now Example 2. Can i do my 2012 taxes now If, in Example 1 , the executor had chosen to include the $200 accrued interest in your uncle's final return, you would report only $300 as interest when you cashed the bond at maturity. Can i do my 2012 taxes now $300 is the interest earned after your uncle's death. Can i do my 2012 taxes now Example 3. Can i do my 2012 taxes now If, in Example 1 , you make or have made the choice to report the increase in redemption value as interest each year, you include in gross income for the year you acquire the bond all of the unreported increase in value of all series E, series EE, and series I bonds you hold, including the $200 on the bond you inherited from your uncle. Can i do my 2012 taxes now Example 4. Can i do my 2012 taxes now When your aunt died, she owned series HH bonds that she had acquired in a trade for series EE bonds. Can i do my 2012 taxes now You were the beneficiary of these bonds. Can i do my 2012 taxes now Your aunt used the cash method and did not choose to report the interest on the series EE bonds each year as it accrued. Can i do my 2012 taxes now Your aunt's executor chose not to include any interest earned before your aunt's death on her final return. Can i do my 2012 taxes now The income in respect of the decedent is the sum of the unreported interest on the series EE bonds and the interest, if any, payable on the series HH bonds but not received as of the date of your aunt's death. Can i do my 2012 taxes now You must report any interest received during the year as income on your return. Can i do my 2012 taxes now The part of the interest payable but not received before your aunt's death is income in respect of the decedent and may qualify for the estate tax deduction. Can i do my 2012 taxes now For information on when to report the interest on the series EE bonds traded, see Savings bonds traded , later. Can i do my 2012 taxes now Savings bonds distributed from a retirement or profit-sharing plan. Can i do my 2012 taxes now   If you acquire a U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bond in a taxable distribution from a retirement or profit-sharing plan, your income for the year of distribution includes the bond's redemption value (its cost plus the interest accrued before the distribution). Can i do my 2012 taxes now When you redeem the bond (whether in the year of distribution or later), your interest income includes only the interest accrued after the bond was distributed. Can i do my 2012 taxes now To figure the interest reported as a taxable distribution and your interest income when you redeem the bond, see Worksheet for savings bonds distributed from a retirement or profit-sharing plan under How To Report Interest Income, later. Can i do my 2012 taxes now Savings bonds traded. Can i do my 2012 taxes now   If you postponed reporting the interest on your series EE or series E bonds, you did not recognize taxable income when you traded the bonds for series HH or series H bonds, unless you received cash in the trade. Can i do my 2012 taxes now (You cannot trade series I bonds for series HH bonds. Can i do my 2012 taxes now After August 31, 2004, you cannot trade any other series of bonds for series HH bonds. Can i do my 2012 taxes now ) Any cash you received is income up to the amount of the interest earned on the bonds traded. Can i do my 2012 taxes now When your series HH or series H bonds mature, or if you dispose of them before maturity, you report as interest the difference between their redemption value and your cost. Can i do my 2012 taxes now Your cost is the sum of the amount you paid for the traded series EE or series E bonds plus any amount you had to pay at the time of the trade. Can i do my 2012 taxes now Example. Can i do my 2012 taxes now You traded series EE bonds (on which you postponed reporting the interest) for $2,500 in series HH bonds and $223 in cash. Can i do my 2012 taxes now You reported the $223 as taxable income on your tax return. Can i do my 2012 taxes now At the time of the trade, the series EE bonds had accrued interest of $523 and a redemption value of $2,723. Can i do my 2012 taxes now You hold the series HH bonds until maturity, when you receive $2,500. Can i do my 2012 taxes now You must report $300 as interest income in the year of maturity. Can i do my 2012 taxes now This is the difference between their redemption value, $2,500, and your cost, $2,200 (the amount you paid for the series EE bonds). Can i do my 2012 taxes now (It is also the difference between the accrued interest of $523 on the series EE bonds and the $223 cash received on the trade. Can i do my 2012 taxes now ) Choice to report interest in year of trade. Can i do my 2012 taxes now   You could have chosen to treat all of the previously unreported accrued interest on series EE or series E bonds traded for series HH bonds as income in the year of the trade. Can i do my 2012 taxes now If you made this choice, it is treated as a change from method 1. Can i do my 2012 taxes now See Change from method 1 under Series EE and series I bonds, earlier. Can i do my 2012 taxes now Form 1099-INT for U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bond interest. Can i do my 2012 taxes now   When you cash a bond, the bank or other payer that redeems it must give you a Form 1099-INT if the interest part of the payment you receive is $10 or more. Can i do my 2012 taxes now Box 3 of your Form 1099-INT should show the interest as the difference between the amount you received and the amount paid for the bond. Can i do my 2012 taxes now However, your Form 1099-INT may show more interest than you have to include on your income tax return. Can i do my 2012 taxes now For example, this may happen if any of the following are true. Can i do my 2012 taxes now You chose to report the increase in the redemption value of the bond each year. Can i do my 2012 taxes now The interest shown on your Form 1099-INT will not be reduced by amounts previously included in income. Can i do my 2012 taxes now You received the bond from a decedent. Can i do my 2012 taxes now The interest shown on your Form 1099-INT will not be reduced by any interest reported by the decedent before death, or on the decedent's final return, or by the estate on the estate's income tax return. Can i do my 2012 taxes now Ownership of the bond was transferred. Can i do my 2012 taxes now The interest shown on your Form 1099-INT will not be reduced by interest that accrued before the transfer. Can i do my 2012 taxes now You were named as a co-owner, and the other co-owner contributed funds to buy the bond. Can i do my 2012 taxes now The interest shown on your Form 1099-INT will not be reduced by the amount you received as nominee for the other co-owner. Can i do my 2012 taxes now (See Co-owners , earlier in this section, for more information about the reporting requirements. Can i do my 2012 taxes now ) You received the bond in a taxable distribution from a retirement or profit-sharing plan. Can i do my 2012 taxes now The interest shown on your Form 1099-INT will not be reduced by the interest portion of the amount taxable as a distribution from the plan and not taxable as interest. Can i do my 2012 taxes now (This amount is generally shown on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Can i do my 2012 taxes now , for the year of distribution. Can i do my 2012 taxes now )   For more information on including the correct amount of interest on your return, see U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bond interest previously reported or Nominee distributions under How To Report Interest Income, later. Can i do my 2012 taxes now    Interest on U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds is exempt from state and local taxes. Can i do my 2012 taxes now The Form 1099-INT you receive will indicate the amount that is for U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds interest in box 3. Can i do my 2012 taxes now Do not include this income on your state or local income tax return. Can i do my 2012 taxes now Education Savings Bond Program You may be able to exclude from income all or part of the interest you receive on the redemption of qualified U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds during the year if you pay qualified higher educational expenses during the same year. Can i do my 2012 taxes now This exclusion is known as the Education Savings Bond Program. Can i do my 2012 taxes now You do not qualify for this exclusion if your filing status is married filing separately. Can i do my 2012 taxes now Form 8815. Can i do my 2012 taxes now   Use Form 8815 to figure your exclusion. Can i do my 2012 taxes now Attach the form to your Form 1040 or Form 1040A. Can i do my 2012 taxes now Qualified U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds. Can i do my 2012 taxes now   A qualified U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bond is a series EE bond issued after 1989 or a series I bond. Can i do my 2012 taxes now The bond must be issued either in your name (sole owner) or in your and your spouse's names (co-owners). Can i do my 2012 taxes now You must be at least 24 years old before the bond's issue date. Can i do my 2012 taxes now For example, a bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or child. Can i do my 2012 taxes now    The issue date of a bond may be earlier than the date the bond is purchased because the issue date assigned to a bond is the first day of the month in which it is purchased. Can i do my 2012 taxes now Beneficiary. Can i do my 2012 taxes now   You can designate any individual (including a child) as a beneficiary of the bond. Can i do my 2012 taxes now Verification by IRS. Can i do my 2012 taxes now   If you claim the exclusion, the IRS will check it by using bond redemption information from the Department of Treasury. Can i do my 2012 taxes now Qualified expenses. Can i do my 2012 taxes now   Qualified higher educational expenses are tuition and fees required for you, your spouse, or your dependent (for whom you claim an exemption) to attend an eligible educational institution. Can i do my 2012 taxes now   Qualified expenses include any contribution you make to a qualified tuition program or to a Coverdell education savings account. Can i do my 2012 taxes now For information about these programs, see Publication 970, Tax Benefits for Education. Can i do my 2012 taxes now   Qualified expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Can i do my 2012 taxes now Eligible educational institutions. Can i do my 2012 taxes now   These institutions include most public, private, and nonprofit universities, colleges, and vocational schools that are accredited and eligible to participate in student aid programs run by the Department of Education. Can i do my 2012 taxes now Reduction for certain benefits. Can i do my 2012 taxes now   You must reduce your qualified higher educational expenses by all of the following tax-free benefits. Can i do my 2012 taxes now Tax-free part of scholarships and fellowships. Can i do my 2012 taxes now Expenses used to figure the tax-free portion of distributions from a Coverdell ESA. Can i do my 2012 taxes now Expenses used to figure the tax-free portion of distributions from a qualified tuition program. Can i do my 2012 taxes now Any tax-free payments (other than gifts or inheritances) received as educational assistance, such as: Veterans' educational assistance benefits, Qualified tuition reductions, or Employer-provided educational assistance. Can i do my 2012 taxes now Any expense used in figuring the American Opportunity and lifetime learning credits. Can i do my 2012 taxes now For information about these benefits, see Publication 970. Can i do my 2012 taxes now Amount excludable. Can i do my 2012 taxes now   If the total proceeds (interest and principal) from the qualified U. Can i do my 2012 taxes now S. Can i do my 2012 taxes now savings bonds you redeem during the year are not more than your adjusted qualified higher educational expenses for the year, you may be able to exclude all of the interest. Can i do my 2012 taxes now If the proceeds are more than the expenses, you may be able to exclude only part of the interest. Can i do my 2012 taxes now   To determine the excludable amount, multiply the interest part of the proceeds by a fraction. Can i do my 2012 taxes now The numer