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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Efile Com

1040nr Tax ReturnsAmended Taxes2012 Tax Forms 1040ezIrs Forms For 2011 Tax YearCan I File My 2012 Taxes Now2012 Taxes2011 Tax PreparationWww Myfreetaxes Com SwfloridaFile My 2010 Taxes2010 1040 Ez FormWww.taxact.comEz Tax ReturnFile Federal And State Income Tax For FreeHow To File 1040xHow To File State Taxes Free1040nr Ez DownloadAmend A ReturnReview Tax Act 2010I Did Not File 2011 TaxesH And R Block Tax2012 Income Tax2012 Tax Tables Federal1040ez 2010Elderly Filing Income TaxTax Act 2012 ReturnTaxact 1040nrMyfreetaxes ReviewI Need The 1040x FormIncome Tax Form 1040ezState Tax Extension1040x 20091040ez H&r Block1040x Form 2013Amended Us Individual Income Tax ReturnTurbotax 1040x FormInstructions For Filing An Amended Tax ReturnAmend Tax ReturnWhere Can I File My 2012 Taxes For FreeIrs Gov 1040ez FormFile State Tax Only For Free

Efile Com

Efile com 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. Efile com Gross monthly rate. Efile com Your cost. Efile com Choosing a survivor annuity after retirement. Efile com Canceling a survivor annuity after retirement. Efile com Annuity starting date after 1986. Efile com Annuity starting date before 1987. Efile com 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. Efile com 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. Efile com The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. Efile com If the refund includes only your contributions, none of the refund is taxable. Efile com 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). Efile com 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. Efile com See Rollover Rules in Part II for information on how to make a rollover. Efile com 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. Efile com Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. Efile com 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. Efile com 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. Efile com For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Efile com 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. Efile com 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. Efile com OPM will tell you how to make the choice. Efile com The choice for no withholding remains in effect until you change it. Efile com These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. Efile com 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. Efile com 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. Efile com 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. Efile com For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. Efile com Form CSA 1099R. Efile com   Form CSA 1099R is mailed to you by OPM each year. Efile com It will show any tax you had withheld. Efile com File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. Efile com    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. Efile com servicesonline. Efile com opm. Efile com gov. Efile com To log in, you will need your retirement CSA claim number and your personal identification number. Efile com Choosing no withholding on payments outside the United States. Efile com   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. Efile com   To choose no withholding if you are a U. Efile com S. Efile com citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. Efile com Otherwise, OPM has to withhold tax. Efile com For example, OPM must withhold if you provide a U. Efile com S. Efile com 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. Efile com S. Efile com home address. Efile com   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. Efile com S. Efile com citizen, a U. Efile com S. Efile com resident alien, or someone who left the United States to avoid tax. Efile com But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Efile com For details, see Publication 519, U. Efile com S. Efile com Tax Guide for Aliens. Efile com Withholding certificate. Efile com   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. Efile com The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. Efile com If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. Efile com 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. Efile com C. Efile com calling area must call 202-606-0500). Efile com No special form is needed. Efile com You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. Efile com If you have TTY/TDD equipment, call 1-855–887–4957. Efile com If you need a PIN, call OPM's Retirement Information Office. Efile com You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. Efile com servicesonline. Efile com opm. Efile com gov. Efile com You will need your retirement CSA or CSF claim number and your PIN. Efile com Withholding from certain lump-sum payments. Efile com   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. Efile com Tax will be withheld at a 20% rate on the interest distributed. Efile com However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. Efile com If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. Efile com Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. Efile com See Rollover Rules in Part II. Efile com If you receive only your contributions, no tax will be withheld. Efile com Withholding from Thrift Savings Plan payments. Efile com   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. Efile com 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. Efile com  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. Efile com 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. Efile com   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. Efile com The above document is also available in the “Forms & Publications” section of the TSP website at www. Efile com tsp. Efile com gov. Efile com Estimated tax. Efile com   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)). Efile com The return must cover all 12 months. Efile com   You do not have to pay estimated tax for 2014 if you were a U. Efile com S. Efile com citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. Efile com   Publication 505 contains information that you can use to help you figure your estimated tax payments. Efile com 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. Efile com The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. Efile com Children. Efile com   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. Efile com   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. Efile com Form CSF 1099R. Efile com   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. Efile com It will show the total amount of the annuity you received in the past year. Efile com It also should show, separately, the survivor annuity for a child or children. Efile com Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. Efile com   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. Efile com    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. Efile com servicesonline. Efile com opm. Efile com gov. Efile com To log in you will need your retirement CSF claim number and personal identification number. Efile com    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. Efile com C. Efile com calling area must call 202-606-0500). Efile com You will need your CSF claim number and your social security number when you call. Efile com Taxable part of annuity. Efile com   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. Efile com 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. Efile com Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. Efile com 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. Efile com 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. Efile com Annuity statement. Efile com   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). Efile com You will use this information to figure the tax-free recovery of your cost. Efile com Annuity starting date. Efile com   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. Efile com 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. Efile com Gross monthly rate. Efile com   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. Efile com Your cost. Efile com   Your monthly annuity payment contains an amount on which you have previously paid income tax. Efile com This amount represents part of your contributions to the retirement plan. Efile com 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. Efile com   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. Efile com If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. Efile com (See Lump-sum credit under Alternative Annuity Option, later. Efile com )   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. Efile com You cannot claim an interest deduction for any interest payments. Efile com You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. Efile com Recovering your cost tax free. Efile com   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. Efile com 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. Efile com 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). Efile com If your annuity starting date is after November 18, 1996, you must use the Simplified Method. Efile com   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). Efile com The tax-free part is a fixed dollar amount. Efile com It remains the same, even if your annuity is increased. Efile com Generally, this rule applies as long as you receive your annuity. Efile com However, see Exclusion limit , later. Efile com Choosing a survivor annuity after retirement. Efile com    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. Efile com   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. Efile com To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. Efile com Figure the expected return as of the date the reduced annuity begins. Efile com For details on the General Rule, see Publication 939. Efile com Canceling a survivor annuity after retirement. Efile com   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. Efile com The increased annuity does not change the cost recovery you figured at the annuity starting date. Efile com The tax-free part of each annuity payment remains the same. Efile com    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. Efile com C. Efile com calling area must call 202-606-0500). Efile com Exclusion limit. Efile com   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Efile com Annuity starting date after 1986. Efile com   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. Efile com Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. Efile com Example. Efile com Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. Efile com If your cost is $12,000, the exclusion ends after 10 years (120 months). Efile com Thereafter, your entire annuity is generally fully taxable. Efile com Annuity starting date before 1987. Efile com   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. Efile com If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. Efile com The total exclusion may be more than your cost. Efile com Deduction of unrecovered cost. Efile com   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. Efile com 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). Efile com If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. Efile com 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. Efile com (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. Efile com ) 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. Efile com The Simplified Method does not apply if your annuity starting date is before July 2, 1986. Efile com 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. Efile com This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Efile com 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. Efile com Worksheet A. Efile com   Use Worksheet A. Efile com Simplified Method (near the end of this publication), to figure your taxable annuity. Efile com Be sure to keep the completed worksheet. Efile com It will help you figure your taxable amounts for later years. Efile com 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. Efile com However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. Efile com Line 2. Efile com   See Your cost , earlier, for an explanation of your cost in the plan. Efile com 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. Efile com Line 3. Efile com   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. Efile com 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. Efile com If your annuity starting date is before 1998, use Table 1. Efile com Line 6. Efile com   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. Efile com 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. Efile com Example. Efile com Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. Efile com 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. Efile com He must use the Simplified Method to figure the tax-free part of his annuity benefits. Efile com Bill's monthly annuity benefit is $1,000. Efile com He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. Efile com At his annuity starting date, he was 65 and Kathy was 57. Efile com Bill's completed Worksheet A is shown later. Efile com 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). Efile com Bill keeps a copy of the completed worksheet for his records. Efile com It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. Efile com Bill's tax-free monthly amount is $100. Efile com (See line 4 of the worksheet. Efile com ) 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. Efile com 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. Efile com 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. Efile com 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. Efile com 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. Efile com 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. Efile com 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. Efile com Figuring this percentage is complex and requires the use of actuarial tables. Efile com For these tables and other information about using the General Rule, see Publication 939. Efile com 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. Efile com Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. Efile com After your cost was recovered, all payments became fully taxable. Efile com You cannot use another rule to again exclude amounts from income. Efile com The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. Efile com Worksheet A. Efile com Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. Efile com 1. Efile com Enter the total pension or annuity payments received this year. Efile com Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Efile com $ 8,000 2. Efile com Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Efile com See Your cost in Part II, Rules for Retirees, earlier 2. Efile com 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). Efile com Otherwise, go to line 3. Efile com   3. Efile com Enter the appropriate number from Table 1 below. Efile com 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. Efile com 3. Efile com 310 4. Efile com Divide line 2 by the number on line 3 4. Efile com 100 5. Efile com Multiply line 4 by the number of months for which this year's payments were made. Efile com If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Efile com Otherwise, go to line 6 5. Efile com 800 6. Efile com Enter any amounts previously recovered tax free in years after 1986. Efile com This is the amount shown on line 10 of your worksheet for last year 6. Efile com 0 7. Efile com Subtract line 6 from line 2 7. Efile com 31,000 8. Efile com Enter the smaller of line 5 or line 7 8. Efile com 800 9. Efile com Taxable amount for year. Efile com Subtract line 8 from line 1. Efile com Enter the result, but not less than zero. Efile com Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Efile com If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Efile com If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Efile com 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. Efile com $7,200 10. Efile com Was your annuity starting date before 1987?   Yes. Efile com Do not complete the rest of this worksheet. Efile com    No. Efile com Add lines 6 and 8. Efile com This is the amount you have recovered tax free through 2013. Efile com You will need this number if you need to fill out this worksheet next year 10. Efile com 800 11. Efile com Balance of cost to be recovered. Efile com Subtract line 10 from line 2. Efile com If zero, you will not have to complete this worksheet next year. Efile com The payments you receive next year will generally be fully taxable 11. Efile com $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. Efile com Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. Efile com If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. Efile com You are eligible to make this choice if you meet all of the following requirements. Efile com You are retiring, but not on disability. Efile com You have a life-threatening illness or other critical medical condition. Efile com You do not have a former spouse entitled to court ordered benefits based on your service. Efile com 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. Efile com Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. Efile com The tax-free part represents part of your cost. Efile com The taxable part represents part of the earnings on your annuity contract. Efile com 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. Efile com Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. Efile com Your taxable amount may therefore be more than the lump-sum payment you receive. Efile com 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. Efile com 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. Efile com See Rollover Rules , later, for information on how to make a rollover. Efile com OPM can make a direct rollover only up to the amount of the lump-sum payment. Efile com Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. Efile com 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. Efile com 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. Efile com For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Efile com Worksheet B. Efile com   Use Worksheet B. Efile com Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. Efile com Be sure to keep the completed worksheet for your records. Efile com   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. Efile com Lump-sum credit. Efile com   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). Efile com 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. Efile com Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. Efile com Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. Efile com 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. Efile com Present value of your annuity contract. Efile com   The present value of your annuity contract is figured using actuarial tables provided by the IRS. Efile com 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. Efile com Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. Efile com , NW Washington, DC 20224-0002 Example. Efile com David Brown retired from the federal government in 2013, one month after his 55th birthday. Efile com 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. Efile com The present value of his annuity contract was $155,000. Efile com The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. Efile com 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. Efile com See Reduced Annuity , later. Efile com Worksheet B. Efile com Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . Efile com  1. Efile com Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. Efile com $ 31,000 2. Efile com Enter the present value of your annuity contract 2. Efile com 155,000 3. Efile com Divide line 1 by line 2 3. Efile com . Efile com 20 4. Efile com Tax-free amount. Efile com Multiply line 1 by line 3. Efile com (Caution: Do not include this amount on line 6 of Worksheet A in this publication. Efile com ) 4. Efile com $6,200 5. Efile com Taxable amount (net cost in the plan). Efile com Subtract line 4 from line 1. Efile com Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Efile com Also, enter this amount on line 2 of Worksheet A in this publication. Efile com 5. Efile com $24,800   Lump-sum payment in installments. Efile com   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. Efile com You will receive the first installment after you make the choice upon retirement. Efile com The second installment will be paid to you, with interest, in the next calendar year. Efile com (Exceptions to the installment rule are provided for cases of critical medical need. Efile com )   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. Efile com If the payment has a tax-free part, you must treat the taxable part as received first. Efile com How to report. Efile com   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. Efile com 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. Efile com    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. Efile com 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. Efile com These annuity payments each will have a tax-free and a taxable part. Efile com To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). Efile com For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. Efile com 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. Efile com Enter as your net cost on line 2 the amount from Worksheet B, line 5. Efile com 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. Efile com Example. Efile com The facts are the same as in the example for David Brown in the preceding discussion. Efile com In addition, David received 10 annuity payments in 2013 of $1,200 each. Efile com Using Worksheet A, he figures the taxable part of his annuity payments. Efile com He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. Efile com His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). Efile com He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. Efile com David's filled-in Worksheet A is shown on the next page. Efile com Worksheet A. Efile com Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . Efile com 1. Efile com Enter the total pension or annuity payments received this year. Efile com Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Efile com $ 12,000 2. Efile com Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Efile com See Your cost in Part II, Rules for Retirees, earlier 2. Efile com 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). Efile com Otherwise, go to line 3. Efile com   3. Efile com Enter the appropriate number from Table 1 below. Efile com 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. Efile com 3. Efile com 360 4. Efile com Divide line 2 by the number on line 3 4. Efile com 68. Efile com 89 5. Efile com Multiply line 4 by the number of months for which this year's payments were made. Efile com If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Efile com Otherwise, go to line 6 5. Efile com 688. Efile com 90 6. Efile com Enter any amounts previously recovered tax free in years after 1986. Efile com This is the amount shown on line 10 of your worksheet for last year 6. Efile com 0 7. Efile com Subtract line 6 from line 2 7. Efile com 24,800 8. Efile com Enter the smaller of line 5 or line 7 8. Efile com 688. Efile com 90 9. Efile com Taxable amount for year. Efile com Subtract line 8 from line 1. Efile com Enter the result, but not less than zero. Efile com Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Efile com If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Efile com If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Efile com 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. Efile com $11,311. Efile com 10 10. Efile com Was your annuity starting date before 1987?   Yes. Efile com Do not complete the rest of this worksheet. Efile com    No. Efile com Add lines 6 and 8. Efile com This is the amount you have recovered tax free through 2013. Efile com You will need this number if you need to fill out this worksheet next year 10. Efile com 688. Efile com 90 11. Efile com Balance of cost to be recovered. Efile com Subtract line 10 from line 2. Efile com If zero, you will not have to complete this worksheet next year. Efile com The payments you receive next year will generally be fully taxable 11. Efile com $24,111. Efile com 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. Efile com Reemployment after choosing the alternative annuity option. Efile com 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. Efile com 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. Efile com Annuity starting date before November 19, 1996. Efile com   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. Efile com 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. Efile com 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. Efile com 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. Efile com The gift may be taxable for gift tax purposes. Efile com The value of the gift is equal to the value of the annuity. Efile com Joint and survivor annuity. Efile com   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. Efile com This will eliminate any gift tax liability with regard to that gift. Efile com   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. Efile com This may result in a taxable gift. Efile com More information. Efile com   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. Efile com 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. Efile com Annual leave. Efile com   A payment for accrued annual leave received on retirement is a salary payment. Efile com It is taxable as wages in the tax year you receive it. Efile com Voluntary contributions. Efile com   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. Efile com 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. Efile com Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. Efile com See Thrift Savings Plan , later. Efile com Additional annuity benefit. Efile com   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. Efile com This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. Efile com It does not matter that you receive only one monthly check covering both benefits. Efile com 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. Efile com   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. Efile com Refund of voluntary contributions. Efile com   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. Efile com 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. Efile com See Rollover Rules , later. Efile com The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Efile com 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. Efile com For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Efile com Community property laws. Efile com   State community property laws apply to your annuity. Efile com These laws will affect your income tax only if you file a return separately from your spouse. Efile com   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. Efile com 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. Efile com   At any time, you have only one domicile even though you may have more than one home. Efile com 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. Efile com The question of your domicile is mainly a matter of your intentions as indicated by your actions. Efile com   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. Efile com The division is based on your periods of service and domicile in community and noncommunity property states while you were married. Efile com   For more information, see Publication 555, Community Property. Efile com 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. Efile com The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. Efile com This amount is taxable as wages. Efile com Your annuity will continue to be taxed just as it was before. Efile com If you are still recovering your cost, you continue to do so. Efile com If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. Efile com 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. Efile com A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Efile com Special rule for figuring your total contributions. Efile com   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. Efile com 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. Efile com For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. Efile com Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. Efile com   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. Efile com Limit on taxable amount. Efile com   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. Efile com Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. Efile com The numerator of the fraction is the retiree's total U. Efile com S. Efile com Government basic pay, other than tax-exempt pay for services performed outside the United States. Efile com The denominator is the retiree's total U. Efile com S. Efile com Government basic pay for all services. Efile com    Basic pay includes regular pay plus any standby differential. Efile com It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. Efile com   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. Efile com (For an annuity, first complete Worksheet A in this publication. Efile com ) Worksheet C. Efile com Limited Taxable Amount for Nonresident Alien 1. Efile com 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. Efile com   2. Efile com Enter the total U. Efile com S. Efile com Government basic pay other than tax-exempt pay for services performed outside the United States 2. Efile com   3. Efile com Enter the total U. Efile com S. Efile com Government basic pay for all services 3. Efile com   4. Efile com Divide line 2 by line 3 4. Efile com   5. Efile com Limited taxable amount. Efile com Multiply line 1 by line 4. Efile com Enter this amount on Form 1040NR, line 17b 5. Efile com   Example 1. Efile com You are a nonresident alien who performed all services for the U. Efile com S. Efile com Government abroad as a nonresident alien. Efile com You retired and began to receive a monthly annuity of $200. Efile com Your total basic pay for all services for the U. Efile com S. Efile com Government was $100,000. Efile com All of your basic pay was tax exempt because it was not U. Efile com S. Efile com source income. Efile com The taxable amount of your annuity using Worksheet A in this publication is $720. Efile com You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Efile com Worksheet C. Efile com Limited Taxable Amount for Nonresident Alien — Example 1 1. Efile com 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. Efile com $ 720 2. Efile com Enter the total U. Efile com S. Efile com Government basic pay other than tax-exempt pay for services performed outside the United States 2. Efile com 0 3. Efile com Enter the total U. Efile com S. Efile com Government basic pay for all services 3. Efile com 100,000 4. Efile com Divide line 2 by line 3 4. Efile com 0 5. Efile com Limited taxable amount. Efile com Multiply line 1 by line 4. Efile com Enter this amount on Form 1040NR, line 17b 5. Efile com 0 Example 2. Efile com You are a nonresident alien who performed services for the U. Efile com S. Efile com Government as a nonresident alien both within the United States and abroad. Efile com You retired and began to receive a monthly annuity of $240. Efile com Your total basic pay for your services for the U. Efile com S. Efile com 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. Efile com The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. Efile com S. Efile com source income. Efile com The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. Efile com You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Efile com Worksheet C. Efile com Limited Taxable Amount for Nonresident Alien — Example 2 1. Efile com 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. Efile com $ 1,980 2. Efile com Enter the total U. Efile com S. Efile com Government basic pay other than tax-exempt pay for services performed outside the United States 2. Efile com 40,000 3. Efile com Enter the total U. Efile com S. Efile com Government basic pay for all services 3. Efile com 120,000 4. Efile com Divide line 2 by line 3 4. Efile com . Efile com 333 5. Efile com Limited taxable amount. Efile com Multiply line 1 by line 4. Efile com Enter this amount on Form 1040NR, line 17b 5. Efile com 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. Efile com (However, see Roth TSP balance and Uniformed services TSP accounts, next. Efile com ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. Efile com The way that you withdraw your account balance determines when you must pay the tax. Efile com Roth TSP balance. Efile com   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. Efile com This means Roth TSP contributions are included in your income. Efile com The contribution limits are the same as the traditional TSP. Efile com You can elect to have part or all of your TSP contributions designated as a Roth TSP. Efile com Agency contributions will be part of your traditional TSP balance. Efile com Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. Efile com   Qualified distributions from your Roth TSP are not included in income. Efile com This applies to both your cost in the account and income earned on that account. Efile com 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. Efile com   For more information, go to the TSP website, www. Efile com tsp. Efile com gov, or the TSP Service Office. Efile com See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. Efile com Uniformed services TSP accounts. Efile com   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. Efile com However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. Efile com See Roth TSP balance discussed previously to get more information about Roth contributions. Efile com 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. Efile com You can get more information from the TSP website, www. Efile com tsp. Efile com gov, or the TSP Service Office. Efile com Direct rollover by the TSP. Efile com   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. Efile com However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Efile com Also, see Rollover Rules , later. Efile com Direct rollover by the TSP to a Roth IRA. Efile com   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. Efile com However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Efile com Also, see Rollovers to Roth IRAs for more information, later. Efile com Note. Efile com 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. Efile com This is because you already paid tax on those contributions. Efile com You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. Efile com TSP annuity. Efile com   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. Efile com The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. Efile com 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. Efile com See Roth TSP balance , earlier. Efile com This is because you already paid tax on those contributions. Efile com Cash withdrawals. Efile com   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. Efile com (See Rollover Rules , later. Efile com ) 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. Efile com See Lump-Sum Distributions in Publication 575 for details. Efile com However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. Efile com See Roth TSP balance , earlier. Efile com    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. Efile com   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. Efile com 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. Efile com See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. Efile com 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. Efile com See Roth TSP balance , earlier, for a discussion of those conditions. Efile com Tax on early distributions. Efile com   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. Efile com However, this additional tax does not apply in certain situations, including any of the following. Efile com You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. Efile com You choose to receive your account balance in monthly payments based on your life expectancy. Efile com You are totally and permanently disabled. Efile com You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). Efile com The earnings may be subject to the 10% tax depending on whether you met certain conditions. Efile com See Roth TSP balance , earlier. Efile com   For more information, see Tax on Early Distributions in Publication 575. Efile com Outstanding loan. Efile com   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. Efile com The distribution also may be subject to the additional 10% tax on early distributions. Efile com 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. Efile com See Rollover Rules , later. Efile com   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. Efile com However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. Efile com See Roth TSP balance , earlier. Efile com More information. Efile com   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. Efile com 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). Efile com    The above documents are also available on the TSP website at www. Efile com tsp. Efile com gov. Efile com Select “Forms & Publications. Efile com ” 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. Efile com You do not include the amount rolled over in your income, and you cannot take a deduction for it. Efile com The amount rolled over is taxed later as the new program pays that amount to you. Efile com 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. Efile com 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. Efile com To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. Efile com You can also roll over a distribution from a qualified retirement plan into a Roth IRA. Efile com 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. Efile com See Rollovers to Roth IRAs , later, for more information. Efile com Qualified retirement plan. Efile com   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. Efile com The CSRS, FERS, and TSP are considered qualified retirement plans. Efile com Distributions eligible for rollover treatment. Efile com   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. Efile com You cannot roll over any part of your CSRS or FERS annuity payments. Efile com   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. Efile com   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. Efile com However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. Efile com Direct rollover option. Efile com   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. Efile com   There is an automatic rollover requirement for mandatory distributions. Efile com A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. Efile com The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. Efile com 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. Efile com If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. Efile com No tax withheld. Efile com   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. Efile com 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. Efile com Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. Efile com Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. Efile com Payment to you option. Efile com   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. Efile com However, the full amount is treated as distributed to you even though you actually receive only 80%. Efile com 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. Efile com Rollovers to Roth IRAs are generally included in income. Efile com Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. Efile com 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. Efile com 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). Efile com Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. Efile com See Roth TSP balance , earlier. Efile com Also, see Tax on Early Distributions in Publication 575. Efile com Exception to withholding. Efile com   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. Efile com Partial rollovers. Efile com   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. Efile com See Lump-Sum Distributions in Publication 575. Efile com However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. Efile com Rolling over more than amount received. Efile com   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). Efile com Example. Efile com You left government service at age 53. Efile com On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
Español

Laws and Regulations Concerning Seniors

Learn about the Age Discrimination in Employment Act, the Older Americans Act, the Social Security Act, and more.

The Efile Com

Efile com Publication 556 - Introductory Material Table of Contents The IRS Mission Reminders IntroductionOrdering forms and publications. Efile com Tax questions. Efile com Useful Items - You may want to see: The IRS Mission Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. Efile com Reminders Penalty for filing erroneous claim for refund or credit. Efile com  You may have to pay a penalty if you file an erroneous claim for refund or credit. Efile com See Penalty for erroneous claim for refund, later under Claims for Refund. Efile com Interest and penalties suspended if notice not mailed within 36 months. Efile com  If you file your return timely (including extensions), interest and certain penalties will be suspended if the IRS does not mail a notice to you within 36 months. Efile com See Suspension of interest and penalties, later under Examination of Returns. Efile com Fast track mediation. Efile com  The IRS offers fast track mediation services to help taxpayers resolve many disputes resulting from: Examinations (audits), Offers in compromise, Trust fund recovery penalties, and Other collection actions. Efile com See Fast track mediation under If You Do Not Agree. Efile com Introduction The Internal Revenue Service (IRS) accepts most federal tax returns as filed. Efile com However, the IRS examines (or audits) some returns to determine if income, expenses, and credits are being reported accurately. Efile com If your return is selected for examination, it does not suggest that you made an error or are dishonest. Efile com Returns are chosen by computerized screening, by random sample, or by an income document matching program. Efile com See Examination selection criteria, later. Efile com You should also know that many examinations result in a refund or acceptance of the tax return without change. Efile com This publication discusses general rules and procedures that the IRS follows in examinations. Efile com It explains what happens during an examination and your appeal rights, both within the IRS and in the federal court system. Efile com It also explains how to file a claim for refund of tax you already paid. Efile com As a taxpayer, you have the right to be treated fairly, professionally, promptly, and courteously by IRS employees. Efile com Publication 1, Your Rights as a Taxpayer, explains your rights when dealing with the IRS. Efile com Comments and suggestions. Efile com   We welcome your comments about this publication and your suggestions for future editions. Efile com   You can write to us at the following address:  Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Efile com NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Efile com Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Efile com   You can send your comments from www. Efile com irs. Efile com gov/formspubs/. Efile com Click on “More Information” and then on “Comment on Tax Forms and Publications. Efile com ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Efile com Ordering forms and publications. Efile com   Visit www. Efile com irs. Efile com gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Efile com  Internal Revenue Service  1201 N. Efile com Mitsubishi Motorway Bloomington, IL 61704-6613 Tax questions. Efile com   If you have a tax question, check the information available on www. Efile com irs. Efile com gov or call 1-800-829-1040. Efile com We cannot answer tax questions sent to either of the above addresses. Efile com Useful Items - You may want to see: Publication 1 Your Rights as a Taxpayer 5 Your Appeal Rights and How To Prepare a Protest If You Don't Agree 547 Casualties, Disasters, and Thefts 594 The IRS Collection Process 910 Guide to Free Tax Services 971 Innocent Spouse Relief 1546 Taxpayer Advocate Service–Your Voice at the IRS 1660 Collection Appeal Rights 3605 Fast Track Mediation 3920 Tax Relief for Victims of Terrorist Attacks 4134 Low Income Taxpayer Clinic List Form (and Instructions) 843 Claim for Refund and Request for Abatement 911 Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order) 1040X Amended U. Efile com S. Efile com Individual Income Tax Return 2848 Power of Attorney and Declaration of Representative 4506 Request for Copy of Tax Return 4506-T Request for Transcript of Tax Return 8379 Injured Spouse Allocation 8857 Request for Innocent Spouse Relief See How To Get Tax Help , near the end of this publication, for information about getting these publications and forms. Efile com Prev  Up  Next   Home   More Online Publications