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Download Irs Form 1040x

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Download Irs Form 1040x

Download irs form 1040x Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. Download irs form 1040x Gross monthly rate. Download irs form 1040x Your cost. Download irs form 1040x Choosing a survivor annuity after retirement. Download irs form 1040x Canceling a survivor annuity after retirement. Download irs form 1040x Annuity starting date after 1986. Download irs form 1040x Annuity starting date before 1987. Download irs form 1040x Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. Download irs form 1040x Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. Download irs form 1040x The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. Download irs form 1040x If the refund includes only your contributions, none of the refund is taxable. Download irs form 1040x If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). Download irs form 1040x If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Download irs form 1040x See Rollover Rules in Part II for information on how to make a rollover. Download irs form 1040x Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. Download irs form 1040x Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. Download irs form 1040x If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Download irs form 1040x If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. Download irs form 1040x For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Download irs form 1040x A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. Download irs form 1040x Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. Download irs form 1040x OPM will tell you how to make the choice. Download irs form 1040x The choice for no withholding remains in effect until you change it. Download irs form 1040x These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. Download irs form 1040x 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. Download irs form 1040x You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. Download irs form 1040x Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. Download irs form 1040x For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. Download irs form 1040x Form CSA 1099R. Download irs form 1040x   Form CSA 1099R is mailed to you by OPM each year. Download irs form 1040x It will show any tax you had withheld. Download irs form 1040x File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. Download irs form 1040x    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. Download irs form 1040x servicesonline. Download irs form 1040x opm. Download irs form 1040x gov. Download irs form 1040x To log in, you will need your retirement CSA claim number and your personal identification number. Download irs form 1040x Choosing no withholding on payments outside the United States. Download irs form 1040x   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. Download irs form 1040x   To choose no withholding if you are a U. Download irs form 1040x S. Download irs form 1040x citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. Download irs form 1040x Otherwise, OPM has to withhold tax. Download irs form 1040x For example, OPM must withhold if you provide a U. Download irs form 1040x S. Download irs form 1040x address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. Download irs form 1040x S. Download irs form 1040x home address. Download irs form 1040x   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. Download irs form 1040x S. Download irs form 1040x citizen, a U. Download irs form 1040x S. Download irs form 1040x resident alien, or someone who left the United States to avoid tax. Download irs form 1040x But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Download irs form 1040x For details, see Publication 519, U. Download irs form 1040x S. Download irs form 1040x Tax Guide for Aliens. Download irs form 1040x Withholding certificate. Download irs form 1040x   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. Download irs form 1040x The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. Download irs form 1040x If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. Download irs form 1040x To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Download irs form 1040x C. Download irs form 1040x calling area must call 202-606-0500). Download irs form 1040x No special form is needed. Download irs form 1040x You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. Download irs form 1040x If you have TTY/TDD equipment, call 1-855–887–4957. Download irs form 1040x If you need a PIN, call OPM's Retirement Information Office. Download irs form 1040x You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. Download irs form 1040x servicesonline. Download irs form 1040x opm. Download irs form 1040x gov. Download irs form 1040x You will need your retirement CSA or CSF claim number and your PIN. Download irs form 1040x Withholding from certain lump-sum payments. Download irs form 1040x   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. Download irs form 1040x Tax will be withheld at a 20% rate on the interest distributed. Download irs form 1040x However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. Download irs form 1040x If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. Download irs form 1040x Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. Download irs form 1040x See Rollover Rules in Part II. Download irs form 1040x If you receive only your contributions, no tax will be withheld. Download irs form 1040x Withholding from Thrift Savings Plan payments. Download irs form 1040x   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. Download irs form 1040x The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. Download irs form 1040x  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. Download irs form 1040x By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. Download irs form 1040x   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. Download irs form 1040x The above document is also available in the “Forms & Publications” section of the TSP website at www. Download irs form 1040x tsp. Download irs form 1040x gov. Download irs form 1040x Estimated tax. Download irs form 1040x   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). Download irs form 1040x The return must cover all 12 months. Download irs form 1040x   You do not have to pay estimated tax for 2014 if you were a U. Download irs form 1040x S. Download irs form 1040x citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. Download irs form 1040x   Publication 505 contains information that you can use to help you figure your estimated tax payments. Download irs form 1040x Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. Download irs form 1040x The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. Download irs form 1040x Children. Download irs form 1040x   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. Download irs form 1040x   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. Download irs form 1040x Form CSF 1099R. Download irs form 1040x   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. Download irs form 1040x It will show the total amount of the annuity you received in the past year. Download irs form 1040x It also should show, separately, the survivor annuity for a child or children. Download irs form 1040x Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. Download irs form 1040x   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. Download irs form 1040x    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. Download irs form 1040x servicesonline. Download irs form 1040x opm. Download irs form 1040x gov. Download irs form 1040x To log in you will need your retirement CSF claim number and personal identification number. Download irs form 1040x    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Download irs form 1040x C. Download irs form 1040x calling area must call 202-606-0500). Download irs form 1040x You will need your CSF claim number and your social security number when you call. Download irs form 1040x Taxable part of annuity. Download irs form 1040x   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. Download irs form 1040x To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. Download irs form 1040x Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. Download irs form 1040x If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. Download irs form 1040x However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. Download irs form 1040x Annuity statement. Download irs form 1040x   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). Download irs form 1040x You will use this information to figure the tax-free recovery of your cost. Download irs form 1040x Annuity starting date. Download irs form 1040x   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. Download irs form 1040x If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. Download irs form 1040x Gross monthly rate. Download irs form 1040x   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. Download irs form 1040x Your cost. Download irs form 1040x   Your monthly annuity payment contains an amount on which you have previously paid income tax. Download irs form 1040x This amount represents part of your contributions to the retirement plan. Download irs form 1040x Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. Download irs form 1040x   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. Download irs form 1040x If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. Download irs form 1040x (See Lump-sum credit under Alternative Annuity Option, later. Download irs form 1040x )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. Download irs form 1040x You cannot claim an interest deduction for any interest payments. Download irs form 1040x You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. Download irs form 1040x Recovering your cost tax free. Download irs form 1040x   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. Download irs form 1040x If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. Download irs form 1040x If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). Download irs form 1040x If your annuity starting date is after November 18, 1996, you must use the Simplified Method. Download irs form 1040x   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). Download irs form 1040x The tax-free part is a fixed dollar amount. Download irs form 1040x It remains the same, even if your annuity is increased. Download irs form 1040x Generally, this rule applies as long as you receive your annuity. Download irs form 1040x However, see Exclusion limit , later. Download irs form 1040x Choosing a survivor annuity after retirement. Download irs form 1040x    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. Download irs form 1040x   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. Download irs form 1040x To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. Download irs form 1040x Figure the expected return as of the date the reduced annuity begins. Download irs form 1040x For details on the General Rule, see Publication 939. Download irs form 1040x Canceling a survivor annuity after retirement. Download irs form 1040x   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. Download irs form 1040x The increased annuity does not change the cost recovery you figured at the annuity starting date. Download irs form 1040x The tax-free part of each annuity payment remains the same. Download irs form 1040x    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Download irs form 1040x C. Download irs form 1040x calling area must call 202-606-0500). Download irs form 1040x Exclusion limit. Download irs form 1040x   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Download irs form 1040x Annuity starting date after 1986. Download irs form 1040x   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. Download irs form 1040x Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. Download irs form 1040x Example. Download irs form 1040x Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. Download irs form 1040x If your cost is $12,000, the exclusion ends after 10 years (120 months). Download irs form 1040x Thereafter, your entire annuity is generally fully taxable. Download irs form 1040x Annuity starting date before 1987. Download irs form 1040x   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. Download irs form 1040x If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. Download irs form 1040x The total exclusion may be more than your cost. Download irs form 1040x Deduction of unrecovered cost. Download irs form 1040x   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. Download irs form 1040x The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). Download irs form 1040x If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. Download irs form 1040x Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. Download irs form 1040x (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. Download irs form 1040x ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. Download irs form 1040x The Simplified Method does not apply if your annuity starting date is before July 2, 1986. Download irs form 1040x Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. Download irs form 1040x This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Download irs form 1040x If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. Download irs form 1040x Worksheet A. Download irs form 1040x   Use Worksheet A. Download irs form 1040x Simplified Method (near the end of this publication), to figure your taxable annuity. Download irs form 1040x Be sure to keep the completed worksheet. Download irs form 1040x It will help you figure your taxable amounts for later years. Download irs form 1040x Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. Download irs form 1040x However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. Download irs form 1040x Line 2. Download irs form 1040x   See Your cost , earlier, for an explanation of your cost in the plan. Download irs form 1040x If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. Download irs form 1040x Line 3. Download irs form 1040x   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. Download irs form 1040x If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. Download irs form 1040x If your annuity starting date is before 1998, use Table 1. Download irs form 1040x Line 6. Download irs form 1040x   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. Download irs form 1040x If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. Download irs form 1040x Example. Download irs form 1040x Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. Download irs form 1040x His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. Download irs form 1040x He must use the Simplified Method to figure the tax-free part of his annuity benefits. Download irs form 1040x Bill's monthly annuity benefit is $1,000. Download irs form 1040x He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. Download irs form 1040x At his annuity starting date, he was 65 and Kathy was 57. Download irs form 1040x Bill's completed Worksheet A is shown later. Download irs form 1040x To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). Download irs form 1040x Bill keeps a copy of the completed worksheet for his records. Download irs form 1040x It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. Download irs form 1040x Bill's tax-free monthly amount is $100. Download irs form 1040x (See line 4 of the worksheet. Download irs form 1040x ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. Download irs form 1040x If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. Download irs form 1040x If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. Download irs form 1040x General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. Download irs form 1040x If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. Download irs form 1040x If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. Download irs form 1040x Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. Download irs form 1040x Figuring this percentage is complex and requires the use of actuarial tables. Download irs form 1040x For these tables and other information about using the General Rule, see Publication 939. Download irs form 1040x Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. Download irs form 1040x Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. Download irs form 1040x After your cost was recovered, all payments became fully taxable. Download irs form 1040x You cannot use another rule to again exclude amounts from income. Download irs form 1040x The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. Download irs form 1040x Worksheet A. Download irs form 1040x Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. Download irs form 1040x 1. Download irs form 1040x Enter the total pension or annuity payments received this year. Download irs form 1040x Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Download irs form 1040x $ 8,000 2. Download irs form 1040x Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Download irs form 1040x See Your cost in Part II, Rules for Retirees, earlier 2. Download irs form 1040x 31,000 Note: 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). Download irs form 1040x Otherwise, go to line 3. Download irs form 1040x   3. Download irs form 1040x Enter the appropriate number from Table 1 below. Download irs form 1040x 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. Download irs form 1040x 3. Download irs form 1040x 310 4. Download irs form 1040x Divide line 2 by the number on line 3 4. Download irs form 1040x 100 5. Download irs form 1040x Multiply line 4 by the number of months for which this year's payments were made. Download irs form 1040x If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Download irs form 1040x Otherwise, go to line 6 5. Download irs form 1040x 800 6. Download irs form 1040x Enter any amounts previously recovered tax free in years after 1986. Download irs form 1040x This is the amount shown on line 10 of your worksheet for last year 6. Download irs form 1040x 0 7. Download irs form 1040x Subtract line 6 from line 2 7. Download irs form 1040x 31,000 8. Download irs form 1040x Enter the smaller of line 5 or line 7 8. Download irs form 1040x 800 9. Download irs form 1040x Taxable amount for year. Download irs form 1040x Subtract line 8 from line 1. Download irs form 1040x Enter the result, but not less than zero. Download irs form 1040x Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Download irs form 1040x If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Download irs form 1040x If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Download irs form 1040x If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Download irs form 1040x $7,200 10. Download irs form 1040x Was your annuity starting date before 1987?   Yes. Download irs form 1040x Do not complete the rest of this worksheet. Download irs form 1040x    No. Download irs form 1040x Add lines 6 and 8. Download irs form 1040x This is the amount you have recovered tax free through 2013. Download irs form 1040x You will need this number if you need to fill out this worksheet next year 10. Download irs form 1040x 800 11. Download irs form 1040x Balance of cost to be recovered. Download irs form 1040x Subtract line 10 from line 2. Download irs form 1040x If zero, you will not have to complete this worksheet next year. Download irs form 1040x The payments you receive next year will generally be fully taxable 11. Download irs form 1040x $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Download irs form 1040x Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. Download irs form 1040x If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. Download irs form 1040x You are eligible to make this choice if you meet all of the following requirements. Download irs form 1040x You are retiring, but not on disability. Download irs form 1040x You have a life-threatening illness or other critical medical condition. Download irs form 1040x You do not have a former spouse entitled to court ordered benefits based on your service. Download irs form 1040x If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. Download irs form 1040x Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. Download irs form 1040x The tax-free part represents part of your cost. Download irs form 1040x The taxable part represents part of the earnings on your annuity contract. Download irs form 1040x Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. Download irs form 1040x Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. Download irs form 1040x Your taxable amount may therefore be more than the lump-sum payment you receive. Download irs form 1040x You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. Download irs form 1040x If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Download irs form 1040x See Rollover Rules , later, for information on how to make a rollover. Download irs form 1040x OPM can make a direct rollover only up to the amount of the lump-sum payment. Download irs form 1040x Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. Download irs form 1040x The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Download irs form 1040x It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. Download irs form 1040x For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Download irs form 1040x Worksheet B. Download irs form 1040x   Use Worksheet B. Download irs form 1040x Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. Download irs form 1040x Be sure to keep the completed worksheet for your records. Download irs form 1040x   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. Download irs form 1040x Lump-sum credit. Download irs form 1040x   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). Download irs form 1040x However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. Download irs form 1040x Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. Download irs form 1040x Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. Download irs form 1040x You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. Download irs form 1040x Present value of your annuity contract. Download irs form 1040x   The present value of your annuity contract is figured using actuarial tables provided by the IRS. Download irs form 1040x If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. Download irs form 1040x Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. Download irs form 1040x , NW Washington, DC 20224-0002 Example. Download irs form 1040x David Brown retired from the federal government in 2013, one month after his 55th birthday. Download irs form 1040x He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. Download irs form 1040x The present value of his annuity contract was $155,000. Download irs form 1040x The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. Download irs form 1040x The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. Download irs form 1040x See Reduced Annuity , later. Download irs form 1040x Worksheet B. Download irs form 1040x Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . Download irs form 1040x  1. Download irs form 1040x Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. Download irs form 1040x $ 31,000 2. Download irs form 1040x Enter the present value of your annuity contract 2. Download irs form 1040x 155,000 3. Download irs form 1040x Divide line 1 by line 2 3. Download irs form 1040x . Download irs form 1040x 20 4. Download irs form 1040x Tax-free amount. Download irs form 1040x Multiply line 1 by line 3. Download irs form 1040x (Caution: Do not include this amount on line 6 of Worksheet A in this publication. Download irs form 1040x ) 4. Download irs form 1040x $6,200 5. Download irs form 1040x Taxable amount (net cost in the plan). Download irs form 1040x Subtract line 4 from line 1. Download irs form 1040x Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Download irs form 1040x Also, enter this amount on line 2 of Worksheet A in this publication. Download irs form 1040x 5. Download irs form 1040x $24,800   Lump-sum payment in installments. Download irs form 1040x   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. Download irs form 1040x You will receive the first installment after you make the choice upon retirement. Download irs form 1040x The second installment will be paid to you, with interest, in the next calendar year. Download irs form 1040x (Exceptions to the installment rule are provided for cases of critical medical need. Download irs form 1040x )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. Download irs form 1040x If the payment has a tax-free part, you must treat the taxable part as received first. Download irs form 1040x How to report. Download irs form 1040x   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Download irs form 1040x Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. Download irs form 1040x    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. Download irs form 1040x Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. Download irs form 1040x These annuity payments each will have a tax-free and a taxable part. Download irs form 1040x To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). Download irs form 1040x For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. Download irs form 1040x To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. Download irs form 1040x Enter as your net cost on line 2 the amount from Worksheet B, line 5. Download irs form 1040x Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Download irs form 1040x Example. Download irs form 1040x The facts are the same as in the example for David Brown in the preceding discussion. Download irs form 1040x In addition, David received 10 annuity payments in 2013 of $1,200 each. Download irs form 1040x Using Worksheet A, he figures the taxable part of his annuity payments. Download irs form 1040x He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. Download irs form 1040x His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). Download irs form 1040x He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. Download irs form 1040x David's filled-in Worksheet A is shown on the next page. Download irs form 1040x Worksheet A. Download irs form 1040x Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . Download irs form 1040x 1. Download irs form 1040x Enter the total pension or annuity payments received this year. Download irs form 1040x Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Download irs form 1040x $ 12,000 2. Download irs form 1040x Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Download irs form 1040x See Your cost in Part II, Rules for Retirees, earlier 2. Download irs form 1040x 24,800 Note: 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). Download irs form 1040x Otherwise, go to line 3. Download irs form 1040x   3. Download irs form 1040x Enter the appropriate number from Table 1 below. Download irs form 1040x 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. Download irs form 1040x 3. Download irs form 1040x 360 4. Download irs form 1040x Divide line 2 by the number on line 3 4. Download irs form 1040x 68. Download irs form 1040x 89 5. Download irs form 1040x Multiply line 4 by the number of months for which this year's payments were made. Download irs form 1040x If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Download irs form 1040x Otherwise, go to line 6 5. Download irs form 1040x 688. Download irs form 1040x 90 6. Download irs form 1040x Enter any amounts previously recovered tax free in years after 1986. Download irs form 1040x This is the amount shown on line 10 of your worksheet for last year 6. Download irs form 1040x 0 7. Download irs form 1040x Subtract line 6 from line 2 7. Download irs form 1040x 24,800 8. Download irs form 1040x Enter the smaller of line 5 or line 7 8. Download irs form 1040x 688. Download irs form 1040x 90 9. Download irs form 1040x Taxable amount for year. Download irs form 1040x Subtract line 8 from line 1. Download irs form 1040x Enter the result, but not less than zero. Download irs form 1040x Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Download irs form 1040x If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Download irs form 1040x If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Download irs form 1040x If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Download irs form 1040x $11,311. Download irs form 1040x 10 10. Download irs form 1040x Was your annuity starting date before 1987?   Yes. Download irs form 1040x Do not complete the rest of this worksheet. Download irs form 1040x    No. Download irs form 1040x Add lines 6 and 8. Download irs form 1040x This is the amount you have recovered tax free through 2013. Download irs form 1040x You will need this number if you need to fill out this worksheet next year 10. Download irs form 1040x 688. Download irs form 1040x 90 11. Download irs form 1040x Balance of cost to be recovered. Download irs form 1040x Subtract line 10 from line 2. Download irs form 1040x If zero, you will not have to complete this worksheet next year. Download irs form 1040x The payments you receive next year will generally be fully taxable 11. Download irs form 1040x $24,111. Download irs form 1040x 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Download irs form 1040x Reemployment after choosing the alternative annuity option. Download irs form 1040x If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. Download irs form 1040x If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. Download irs form 1040x Annuity starting date before November 19, 1996. Download irs form 1040x   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. Download irs form 1040x Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. Download irs form 1040x However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Download irs form 1040x Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. Download irs form 1040x The gift may be taxable for gift tax purposes. Download irs form 1040x The value of the gift is equal to the value of the annuity. Download irs form 1040x Joint and survivor annuity. Download irs form 1040x   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. Download irs form 1040x This will eliminate any gift tax liability with regard to that gift. Download irs form 1040x   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. Download irs form 1040x This may result in a taxable gift. Download irs form 1040x More information. Download irs form 1040x   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. Download irs form 1040x Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. Download irs form 1040x Annual leave. Download irs form 1040x   A payment for accrued annual leave received on retirement is a salary payment. Download irs form 1040x It is taxable as wages in the tax year you receive it. Download irs form 1040x Voluntary contributions. Download irs form 1040x   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. Download irs form 1040x They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. Download irs form 1040x Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. Download irs form 1040x See Thrift Savings Plan , later. Download irs form 1040x Additional annuity benefit. Download irs form 1040x   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. Download irs form 1040x This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. Download irs form 1040x It does not matter that you receive only one monthly check covering both benefits. Download irs form 1040x Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. Download irs form 1040x   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. Download irs form 1040x Refund of voluntary contributions. Download irs form 1040x   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. Download irs form 1040x If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. Download irs form 1040x See Rollover Rules , later. Download irs form 1040x The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Download irs form 1040x It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. Download irs form 1040x For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Download irs form 1040x Community property laws. Download irs form 1040x   State community property laws apply to your annuity. Download irs form 1040x These laws will affect your income tax only if you file a return separately from your spouse. Download irs form 1040x   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. Download irs form 1040x Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. Download irs form 1040x   At any time, you have only one domicile even though you may have more than one home. Download irs form 1040x Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Download irs form 1040x The question of your domicile is mainly a matter of your intentions as indicated by your actions. Download irs form 1040x   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. Download irs form 1040x The division is based on your periods of service and domicile in community and noncommunity property states while you were married. Download irs form 1040x   For more information, see Publication 555, Community Property. Download irs form 1040x Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. Download irs form 1040x The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. Download irs form 1040x This amount is taxable as wages. Download irs form 1040x Your annuity will continue to be taxed just as it was before. Download irs form 1040x If you are still recovering your cost, you continue to do so. Download irs form 1040x If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. Download irs form 1040x Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. Download irs form 1040x A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Download irs form 1040x Special rule for figuring your total contributions. Download irs form 1040x   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. Download irs form 1040x You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. Download irs form 1040x For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. Download irs form 1040x Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. Download irs form 1040x   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. Download irs form 1040x Limit on taxable amount. Download irs form 1040x   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. Download irs form 1040x Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. Download irs form 1040x The numerator of the fraction is the retiree's total U. Download irs form 1040x S. Download irs form 1040x Government basic pay, other than tax-exempt pay for services performed outside the United States. Download irs form 1040x The denominator is the retiree's total U. Download irs form 1040x S. Download irs form 1040x Government basic pay for all services. Download irs form 1040x    Basic pay includes regular pay plus any standby differential. Download irs form 1040x It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. Download irs form 1040x   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. Download irs form 1040x (For an annuity, first complete Worksheet A in this publication. Download irs form 1040x ) Worksheet C. Download irs form 1040x Limited Taxable Amount for Nonresident Alien 1. Download irs form 1040x Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Download irs form 1040x   2. Download irs form 1040x Enter the total U. Download irs form 1040x S. Download irs form 1040x Government basic pay other than tax-exempt pay for services performed outside the United States 2. Download irs form 1040x   3. Download irs form 1040x Enter the total U. Download irs form 1040x S. Download irs form 1040x Government basic pay for all services 3. Download irs form 1040x   4. Download irs form 1040x Divide line 2 by line 3 4. Download irs form 1040x   5. Download irs form 1040x Limited taxable amount. Download irs form 1040x Multiply line 1 by line 4. Download irs form 1040x Enter this amount on Form 1040NR, line 17b 5. Download irs form 1040x   Example 1. Download irs form 1040x You are a nonresident alien who performed all services for the U. Download irs form 1040x S. Download irs form 1040x Government abroad as a nonresident alien. Download irs form 1040x You retired and began to receive a monthly annuity of $200. Download irs form 1040x Your total basic pay for all services for the U. Download irs form 1040x S. Download irs form 1040x Government was $100,000. Download irs form 1040x All of your basic pay was tax exempt because it was not U. Download irs form 1040x S. Download irs form 1040x source income. Download irs form 1040x The taxable amount of your annuity using Worksheet A in this publication is $720. Download irs form 1040x You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Download irs form 1040x Worksheet C. Download irs form 1040x Limited Taxable Amount for Nonresident Alien — Example 1 1. Download irs form 1040x Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Download irs form 1040x $ 720 2. Download irs form 1040x Enter the total U. Download irs form 1040x S. Download irs form 1040x Government basic pay other than tax-exempt pay for services performed outside the United States 2. Download irs form 1040x 0 3. Download irs form 1040x Enter the total U. Download irs form 1040x S. Download irs form 1040x Government basic pay for all services 3. Download irs form 1040x 100,000 4. Download irs form 1040x Divide line 2 by line 3 4. Download irs form 1040x 0 5. Download irs form 1040x Limited taxable amount. Download irs form 1040x Multiply line 1 by line 4. Download irs form 1040x Enter this amount on Form 1040NR, line 17b 5. Download irs form 1040x 0 Example 2. Download irs form 1040x You are a nonresident alien who performed services for the U. Download irs form 1040x S. Download irs form 1040x Government as a nonresident alien both within the United States and abroad. Download irs form 1040x You retired and began to receive a monthly annuity of $240. Download irs form 1040x Your total basic pay for your services for the U. Download irs form 1040x S. Download irs form 1040x Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. Download irs form 1040x The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. Download irs form 1040x S. Download irs form 1040x source income. Download irs form 1040x The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. Download irs form 1040x You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Download irs form 1040x Worksheet C. Download irs form 1040x Limited Taxable Amount for Nonresident Alien — Example 2 1. Download irs form 1040x Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Download irs form 1040x $ 1,980 2. Download irs form 1040x Enter the total U. Download irs form 1040x S. Download irs form 1040x Government basic pay other than tax-exempt pay for services performed outside the United States 2. Download irs form 1040x 40,000 3. Download irs form 1040x Enter the total U. Download irs form 1040x S. Download irs form 1040x Government basic pay for all services 3. Download irs form 1040x 120,000 4. Download irs form 1040x Divide line 2 by line 3 4. Download irs form 1040x . Download irs form 1040x 333 5. Download irs form 1040x Limited taxable amount. Download irs form 1040x Multiply line 1 by line 4. Download irs form 1040x Enter this amount on Form 1040NR, line 17b 5. Download irs form 1040x 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. Download irs form 1040x (However, see Roth TSP balance and Uniformed services TSP accounts, next. Download irs form 1040x ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. Download irs form 1040x The way that you withdraw your account balance determines when you must pay the tax. Download irs form 1040x Roth TSP balance. Download irs form 1040x   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. Download irs form 1040x This means Roth TSP contributions are included in your income. Download irs form 1040x The contribution limits are the same as the traditional TSP. Download irs form 1040x You can elect to have part or all of your TSP contributions designated as a Roth TSP. Download irs form 1040x Agency contributions will be part of your traditional TSP balance. Download irs form 1040x Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. Download irs form 1040x   Qualified distributions from your Roth TSP are not included in income. Download irs form 1040x This applies to both your cost in the account and income earned on that account. Download irs form 1040x 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. Download irs form 1040x   For more information, go to the TSP website, www. Download irs form 1040x tsp. Download irs form 1040x gov, or the TSP Service Office. Download irs form 1040x See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. Download irs form 1040x Uniformed services TSP accounts. Download irs form 1040x   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. Download irs form 1040x However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. Download irs form 1040x See Roth TSP balance discussed previously to get more information about Roth contributions. Download irs form 1040x The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. Download irs form 1040x You can get more information from the TSP website, www. Download irs form 1040x tsp. Download irs form 1040x gov, or the TSP Service Office. Download irs form 1040x Direct rollover by the TSP. Download irs form 1040x   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. Download irs form 1040x However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Download irs form 1040x Also, see Rollover Rules , later. Download irs form 1040x Direct rollover by the TSP to a Roth IRA. Download irs form 1040x   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. Download irs form 1040x However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Download irs form 1040x Also, see Rollovers to Roth IRAs for more information, later. Download irs form 1040x Note. Download irs form 1040x A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. Download irs form 1040x This is because you already paid tax on those contributions. Download irs form 1040x You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. Download irs form 1040x TSP annuity. Download irs form 1040x   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. Download irs form 1040x The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. Download irs form 1040x However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. Download irs form 1040x See Roth TSP balance , earlier. Download irs form 1040x This is because you already paid tax on those contributions. Download irs form 1040x Cash withdrawals. Download irs form 1040x   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. Download irs form 1040x (See Rollover Rules , later. Download irs form 1040x ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. Download irs form 1040x See Lump-Sum Distributions in Publication 575 for details. Download irs form 1040x However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. Download irs form 1040x See Roth TSP balance , earlier. Download irs form 1040x    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. Download irs form 1040x   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. Download irs form 1040x If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. Download irs form 1040x See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. Download irs form 1040x However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. Download irs form 1040x See Roth TSP balance , earlier, for a discussion of those conditions. Download irs form 1040x Tax on early distributions. Download irs form 1040x   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. Download irs form 1040x However, this additional tax does not apply in certain situations, including any of the following. Download irs form 1040x You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. Download irs form 1040x You choose to receive your account balance in monthly payments based on your life expectancy. Download irs form 1040x You are totally and permanently disabled. Download irs form 1040x You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). Download irs form 1040x The earnings may be subject to the 10% tax depending on whether you met certain conditions. Download irs form 1040x See Roth TSP balance , earlier. Download irs form 1040x   For more information, see Tax on Early Distributions in Publication 575. Download irs form 1040x Outstanding loan. Download irs form 1040x   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. Download irs form 1040x The distribution also may be subject to the additional 10% tax on early distributions. Download irs form 1040x However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. Download irs form 1040x See Rollover Rules , later. Download irs form 1040x   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. Download irs form 1040x However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. Download irs form 1040x See Roth TSP balance , earlier. Download irs form 1040x More information. Download irs form 1040x   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. Download irs form 1040x Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). Download irs form 1040x    The above documents are also available on the TSP website at www. Download irs form 1040x tsp. Download irs form 1040x gov. Download irs form 1040x Select “Forms & Publications. Download irs form 1040x ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. Download irs form 1040x You do not include the amount rolled over in your income, and you cannot take a deduction for it. Download irs form 1040x The amount rolled over is taxed later as the new program pays that amount to you. Download irs form 1040x If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. Download irs form 1040x However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. Download irs form 1040x To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. Download irs form 1040x You can also roll over a distribution from a qualified retirement plan into a Roth IRA. Download irs form 1040x Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. Download irs form 1040x See Rollovers to Roth IRAs , later, for more information. Download irs form 1040x Qualified retirement plan. Download irs form 1040x   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. Download irs form 1040x The CSRS, FERS, and TSP are considered qualified retirement plans. Download irs form 1040x Distributions eligible for rollover treatment. Download irs form 1040x   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. Download irs form 1040x You cannot roll over any part of your CSRS or FERS annuity payments. Download irs form 1040x   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. Download irs form 1040x   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. Download irs form 1040x However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. Download irs form 1040x Direct rollover option. Download irs form 1040x   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. Download irs form 1040x   There is an automatic rollover requirement for mandatory distributions. Download irs form 1040x A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. Download irs form 1040x The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. Download irs form 1040x You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. Download irs form 1040x If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. Download irs form 1040x No tax withheld. Download irs form 1040x   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. Download irs form 1040x However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. Download irs form 1040x Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. Download irs form 1040x Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. Download irs form 1040x Payment to you option. Download irs form 1040x   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. Download irs form 1040x However, the full amount is treated as distributed to you even though you actually receive only 80%. Download irs form 1040x You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. Download irs form 1040x Rollovers to Roth IRAs are generally included in income. Download irs form 1040x Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. Download irs form 1040x If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. Download irs form 1040x However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). Download irs form 1040x Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. Download irs form 1040x See Roth TSP balance , earlier. Download irs form 1040x Also, see Tax on Early Distributions in Publication 575. Download irs form 1040x Exception to withholding. Download irs form 1040x   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. Download irs form 1040x Partial rollovers. Download irs form 1040x   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. Download irs form 1040x See Lump-Sum Distributions in Publication 575. Download irs form 1040x However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. Download irs form 1040x Rolling over more than amount received. Download irs form 1040x   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). Download irs form 1040x Example. Download irs form 1040x You left government service at age 53. Download irs form 1040x On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
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Section 7216 Information Center

Final Treasury Regulations on rules and consent requirements relating to the disclosure or use of tax return information by tax return preparers became effective Dec. 28, 2012. For additional information about how these apply to services and education related to the Affordable Care Act, please see our questions and answers.

 For further information, see Rev Proc 2013-14 and Rev Proc 2013-19

On December 30, 2009, the IRS issued proposed and temporary regulations (effective January 4, 2010) and related revenue rulings addressing the use or disclosure of tax return information by tax return preparers. The regulations and related revenue rulings under section 7216 enable tax return preparers to more effectively provide a range of services that taxpayers would ordinarily expect from tax return preparers.

Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations Amendments to the Section 7216 Regulations—Disclosure or Use of Information by Preparers of Returns

Revision to Section 301.7216-2 Guidance

Description of the Guidance:
These final and temporary regulations provide updated guidance regarding the disclosure and use of tax return information by tax return preparers without taxpayer consent. These regulations expand the information tax return preparers may compile, maintain, and use in lists for solicitation of tax return business under section 301.7216-2(n) to include taxpayer entity classification or type and tax return form number. These regulations clarify that the section 301.7216-2(n) lists may not be used to solicit non-tax return preparation services.  These regulations also clarify the phrase “tax information” in section 301.7216-2(n) by replacing that phrase with “tax information and general business or economic analysis for educational purposes.  These regulations further clarify that due diligence performed in contemplation of a sale or other disposition of a tax return preparation business is “in connection with” the sale or other disposition of the section 301.7216-2(n) list compiler’s tax return business” and that tax return information made available for due diligence purposes is a disclosure of that information, not a transfer of that information.  These regulations adopt the guidance provided in Notice 2009-13 related to section 301.7216-2(p) allowing certain expanded disclosures and uses of statistical compilations, subject to specific prohibitions, provided that the statistical compilations are anonymous as to taxpayer identity and contain data from at least 10 tax returns. Finally, these regulations allow the disclosure of tax return information to the extent necessary to accomplish required legal or ethical conflict reviews to avoid client conflicts of interest.  These regulations also include specific restrictions and prohibitions applicable to the expanded uses and disclosures that are designed to appropriately balance taxpayer rights provided by section 7216 and its regulations without compromising those rights.

Revenue Ruling 2010-4

(Provides guidance on whether a tax return preparer is liable for criminal and civil penalties under Internal Revenue Code sections 7216 and 6713 when the tax return preparer uses tax return information to contact taxpayers to inform them of changes in tax law that could affect the taxpayers’ income tax liability reported in tax returns previously prepared or processed by the tax return preparer; uses tax return information to determine which taxpayers’ future income tax return filing obligations may be affected by a prospective change in tax rule or regulation and to contact such taxpayers to notify them of the changed rule or regulation, explain how the change may affect them, and advise them with regard to actions they may take in response to the change; or discloses tax return information contained in the list permitted to be maintained by the tax return preparer under section 301.7216-2(n) to a third-party service provider that creates, publishes, or distributes, by mail or e-mail, tax information and general business and economic information or analysis for educational purposes or for purposes of soliciting additional tax return preparation services for the tax return preparer, for the purpose of obtaining the ‘newsletter’ creation, publication, and or distribution services offered by the third-party service provider.)

Revenue Ruling 2010-5

(Provides guidance on whether a tax return preparer is liable for criminal and civil penalties under Internal Revenue Code sections 7216 and 6713 when the tax return preparer discloses (1) to a professional liability insurance carrier tax return information required by the insurance carrier to obtain or maintain professional liability insurance coverage; (2) to a professional liability insurance carrier tax return information required by the insurance carrier to promptly and accurately report a claim or a potential claim against the tax return preparer, or to aid in the investigation of a claim or potential claim against the tax return preparer; (3) to a professional liability insurance carrier tax return information to the preparer’s professional liability insurance carrier in order to obtain legal representation under the terms of the insurance policy; or (4) tax return information to an unrelated attorney for the purpose of evaluating a claim or potential claim against the tax return preparer.)

News Releases:

IRS Issues Proposed Regulations Adjusting Use of Some Taxpayer Information (Released December 30, 2009)

How Do I?

Section 7216 Frequently Asked Questions

Aids to Preparing Section 7216 Consent Forms

Archived Information:

Section 7216 Updated Rules for Tax Preparers (Updated 12/18/2008)

Page Last Reviewed or Updated: 27-Feb-2014

The Download Irs Form 1040x

Download irs form 1040x Index Symbols $10,000, cash payments over, Introduction A Assistance (see Tax help) C Cash transactions over $10,000, Introduction F Form, Who Must File Form 8300? 8300, Who Must File Form 8300? Free tax services, How To Get Tax Help H Help (see Tax help) M More information (see Tax help) P Publications (see Tax help) R Reporting cash payments over $10,000, Introduction T Tax help, How To Get Tax Help Taxpayer Advocate, Taxpayer Advocate Service. Download irs form 1040x TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications