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File My 2011 Tax Return For Free

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File my 2011 tax return for free Publication 939 - Main Content Table of Contents General Information Taxation of Periodic PaymentsInvestment in the Contract Expected Return Computation Under the General Rule How To Use Actuarial TablesUnisex Annuity Tables Special Elections Worksheets for Determining Taxable Annuity Actuarial Tables Requesting a Ruling on Taxation of Annuity How To Get Tax HelpLow Income Taxpayer Clinics General Information Some of the terms used in this publication are defined in the following paragraphs. File my 2011 tax return for free A pension is generally a series of payments made to you after you retire from work. File my 2011 tax return for free Pension payments are made regularly and are for past services with an employer. File my 2011 tax return for free An annuity is a series of payments under a contract. File my 2011 tax return for free You can buy the contract alone or you can buy it with the help of your employer. File my 2011 tax return for free Annuity payments are made regularly for more than one full year. File my 2011 tax return for free Note. File my 2011 tax return for free Distributions from pensions and annuities follow the same rules as outlined in this publication unless otherwise noted. File my 2011 tax return for free Types of pensions and annuities. File my 2011 tax return for free   Particular types of pensions and annuities include: Fixed period annuities. File my 2011 tax return for free You receive definite amounts at regular intervals for a definite length of time. File my 2011 tax return for free Annuities for a single life. File my 2011 tax return for free You receive definite amounts at regular intervals for life. File my 2011 tax return for free The payments end at death. File my 2011 tax return for free Joint and survivor annuities. File my 2011 tax return for free The first annuitant receives a definite amount at regular intervals for life. File my 2011 tax return for free After he or she dies, a second annuitant receives a definite amount at regular intervals for life. File my 2011 tax return for free The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. File my 2011 tax return for free Variable annuities. File my 2011 tax return for free You receive payments that may vary in amount for a definite length of time or for life. File my 2011 tax return for free The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds or cost-of-living indexes. File my 2011 tax return for free Disability pensions. File my 2011 tax return for free You are under minimum retirement age and receive payments because you retired on disability. File my 2011 tax return for free If, at the time of your retirement, you were permanently and totally disabled, you may be eligible for the credit for the elderly or the disabled discussed in Publication 524. File my 2011 tax return for free If your annuity starting date is after November 18, 1996, the General Rule cannot be used for the following qualified plans. File my 2011 tax return for free A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries. File my 2011 tax return for free This plan must meet Internal Revenue Code requirements. File my 2011 tax return for free It qualifies for special tax benefits, including tax deferral for employer contributions and rollover distributions. File my 2011 tax return for free However, you must use the General Rule if you were 75 or over and the annuity payments are guaranteed for more than 5 years. File my 2011 tax return for free A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. File my 2011 tax return for free A tax-sheltered annuity is a special annuity plan or contract purchased for an employee of a public school or tax-exempt organization. File my 2011 tax return for free   The General Rule is used to figure the tax treatment of various types of pensions and annuities, including nonqualified employee plans. File my 2011 tax return for free A nonqualified employee plan is an employer's plan that does not meet Internal Revenue Code requirements. File my 2011 tax return for free It does not qualify for most of the tax benefits of a qualified plan. File my 2011 tax return for free Annuity worksheets. File my 2011 tax return for free   The worksheets found near the end of the text of this publication may be useful to you in figuring the taxable part of your annuity. File my 2011 tax return for free Request for a ruling. File my 2011 tax return for free   If you are unable to determine the income tax treatment of your pension or annuity, you may ask the Internal Revenue Service to figure the taxable part of your annuity payments. File my 2011 tax return for free This is treated as a request for a ruling. File my 2011 tax return for free See Requesting a Ruling on Taxation of Annuity near the end of this publication. File my 2011 tax return for free Withholding tax and estimated tax. File my 2011 tax return for free   Your pension or annuity is subject to federal income tax withholding unless you choose not to have tax withheld. File my 2011 tax return for free If you choose not to have tax withheld from your pension or annuity, or if you do not have enough income tax withheld, you may have to make estimated tax payments. File my 2011 tax return for free Taxation of Periodic Payments This section explains how the periodic payments you receive under a pension or annuity plan are taxed under the General Rule. File my 2011 tax return for free Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). File my 2011 tax return for free These payments are also known as amounts received as an annuity. File my 2011 tax return for free If you receive an amount from your plan that is a nonperiodic payment (amount not received as an annuity), see Taxation of Nonperiodic Payments in Publication 575. File my 2011 tax return for free In general, you can recover your net cost of the pension or annuity tax free over the period you are to receive the payments. File my 2011 tax return for free The amount of each payment that is more than the part that represents your net cost is taxable. File my 2011 tax return for free Under the General Rule, the part of each annuity payment that represents your net cost is in the same proportion that your investment in the contract is to your expected return. File my 2011 tax return for free These terms are explained in the following discussions. File my 2011 tax return for free Investment in the Contract In figuring how much of your pension or annuity is taxable under the General Rule, you must figure your investment in the contract. File my 2011 tax return for free First, find your net cost of the contract as of the annuity starting date (defined later). File my 2011 tax return for free To find this amount, you must first figure the total premiums, contributions, or other amounts paid. File my 2011 tax return for free This includes the amounts your employer contributed if you were required to include these amounts in income. File my 2011 tax return for free It also includes amounts you actually contributed (except amounts for health and accident benefits and deductible voluntary employee contributions). File my 2011 tax return for free From this total cost you subtract: Any refunded premiums, rebates, dividends, or unrepaid loans (any of which were not included in your income) that you received by the later of the annuity starting date or the date on which you received your first payment. File my 2011 tax return for free Any additional premiums paid for double indemnity or disability benefits. File my 2011 tax return for free Any other tax-free amounts you received under the contract or plan before the later of the dates in (1). File my 2011 tax return for free The annuity starting date   is the later of the first day of the first period for which you receive payment under the contract or the date on which the obligation under the contract becomes fixed. File my 2011 tax return for free Example. File my 2011 tax return for free On January 1 you completed all your payments required under an annuity contract providing for monthly payments starting on August 1, for the period beginning July 1. File my 2011 tax return for free The annuity starting date is July 1. File my 2011 tax return for free This is the date you use in figuring your investment in the contract and your expected return (discussed later). File my 2011 tax return for free Adjustments If any of the following items apply, adjust (add or subtract) your total cost to find your net cost. File my 2011 tax return for free Foreign employment. File my 2011 tax return for free   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. File my 2011 tax return for free The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (without regard to the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer on your behalf if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) if the contributions would be excludible from your gross income had they been paid directly to you. File my 2011 tax return for free Foreign employment contributions while a nonresident alien. File my 2011 tax return for free   In determining your cost, special rules apply if you are a U. File my 2011 tax return for free S. File my 2011 tax return for free citizen or resident alien who received distributions from a plan to which contributions were made while you were a nonresident alien. File my 2011 tax return for free Your contributions and your employer's contributions are not included in your cost if the contributions: Were made based on compensation which was for services performed outside the United States which you were a nonresident alien, and Were not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if they had been paid as cash compensation when the services were performed. File my 2011 tax return for free Death benefit exclusion. File my 2011 tax return for free   If you are the beneficiary of a deceased employee (or former employee), who died before August 21, 1996, you may qualify for a death benefit exclusion of up to $5,000. File my 2011 tax return for free The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion. File my 2011 tax return for free How to adjust your total cost. File my 2011 tax return for free   If you are eligible, treat the amount of any allowable death benefit exclusion as additional cost paid by the employee. File my 2011 tax return for free Add it to the cost or unrecovered cost of the annuity at the annuity starting date. File my 2011 tax return for free See Example 3 under Computation Under General Rule for an illustration of the adjustment to the cost of the contract. File my 2011 tax return for free Net cost. File my 2011 tax return for free   Your total cost plus certain adjustments and minus other amounts already recovered before the annuity starting date is your net cost. File my 2011 tax return for free This is the unrecovered investment in the contract as of the annuity starting date. File my 2011 tax return for free If your annuity starting date is after 1986, this is the maximum amount that you may recover tax free under the contract. File my 2011 tax return for free Refund feature. File my 2011 tax return for free   Adjustment for the value of the refund feature is only applicable when you report your pension or annuity under the General Rule. File my 2011 tax return for free Your annuity contract has a refund feature if: The expected return ( discussed later) of an annuity depends entirely or partly on the life of one or more individuals, The contract provides that payments will be made to a beneficiary or the estate of an annuitant on or after the death of the annuitant if a stated amount or a stated number of payments has not been paid to the annuitant or annuitants before death, and The payments are a refund of the amount you paid for the annuity contract. File my 2011 tax return for free   If your annuity has a refund feature, you must reduce your net cost of the contract by the value of the refund feature (figured using Table III or VII at the end of this publication, also see How To Use Actuarial Tables , later) to find the investment in the contract. File my 2011 tax return for free Zero value of refund feature. File my 2011 tax return for free   For a joint and survivor annuity, the value of the refund feature is zero if: Both annuitants are age 74 or younger, The payments are guaranteed for less than 2½ years, and The survivor's annuity is at least 50% of the first annuitant's annuity. File my 2011 tax return for free   For a single-life annuity without survivor benefit, the value of the refund feature is zero if: The payments are guaranteed for less than 2½ years, and The annuitant is: Age 57 or younger (if using the new (unisex) annuity tables), Age 42 or younger (if male and using the old annuity tables), or Age 47 or younger (if female and using the old annuity tables). File my 2011 tax return for free   If you do not meet these requirements, you will have to figure the value of the refund feature, as explained in the following discussion. File my 2011 tax return for free Examples. File my 2011 tax return for free The first example shows how to figure the value of the refund feature when there is only one beneficiary. File my 2011 tax return for free Example 2 shows how to figure the value of the refund feature when the contract provides, in addition to a whole life annuity, one or more temporary life annuities for the lives of children. File my 2011 tax return for free In both examples, the taxpayer elects to use Tables V through VIII. File my 2011 tax return for free If you need the value of the refund feature for a joint and survivor annuity, write to the Internal Revenue Service as explained under Requesting a Ruling on Taxation of Annuity near the end of this publication. File my 2011 tax return for free Example 1. File my 2011 tax return for free At age 65, Barbara bought for $21,053 an annuity with a refund feature. File my 2011 tax return for free She will get $100 a month for life. File my 2011 tax return for free Barbara's contract provides that if she does not live long enough to recover the full $21,053, similar payments will be made to her surviving beneficiary until a total of $21,053 has been paid under the contract. File my 2011 tax return for free In this case, the contract cost and the total guaranteed return are the same ($21,053). File my 2011 tax return for free Barbara's investment in the contract is figured as follows: Net cost $21,053 Amount to be received annually $1,200   Number of years for which payment is guaranteed ($21,053 divided by $1,200) 17. File my 2011 tax return for free 54   Rounded to nearest whole number of years 18   Percentage from Actuarial Table VII for age 65 with 18 years of guaranteed payments 15%   Value of the refund feature (rounded to the nearest dollar)—15% of $21,053 3,158 Investment in the contract, adjusted for value of refund feature $17,895       If the total guaranteed return were less than the $21,053 net cost of the contract, Barbara would apply the appropriate percentage from the tables to the lesser amount. File my 2011 tax return for free For example, if the contract guaranteed the $100 monthly payments for 17 years to Barbara's estate or beneficiary if she were to die before receiving all the payments for that period, the total guaranteed return would be $20,400 ($100 × 12 × 17 years). File my 2011 tax return for free In this case, the value of the refund feature would be $2,856 (14% of $20,400) and Barbara's investment in the contract would be $18,197 ($21,053 minus $2,856) instead of $17,895. File my 2011 tax return for free Example 2. File my 2011 tax return for free John died while still employed. File my 2011 tax return for free His widow, Eleanor, age 48, receives $171 a month for the rest of her life. File my 2011 tax return for free John's son, Elmer, age 9, receives $50 a month until he reaches age 18. File my 2011 tax return for free John's contributions to the retirement fund totaled $7,559. File my 2011 tax return for free 45, with interest on those contributions of $1,602. File my 2011 tax return for free 53. File my 2011 tax return for free The guarantee or total refund feature of the contract is $9,161. File my 2011 tax return for free 98 ($7,559. File my 2011 tax return for free 45 plus $1,602. File my 2011 tax return for free 53). File my 2011 tax return for free The adjustment in the investment in the contract is figured as follows: A) Expected return:*       1) Widow's expected return:         Annual annuity ($171 × 12) $2,052       Multiplied by factor from Table V         (nearest age 48) 34. File my 2011 tax return for free 9 $71,614. File my 2011 tax return for free 80   2) Child's expected return:         Annual annuity ($50 × 12) $600       Multiplied by factor from         Table VIII (nearest age 9         for term of 9 years) 9. File my 2011 tax return for free 0 5,400. File my 2011 tax return for free 00   3) Total expected return   $77,014. File my 2011 tax return for free 80 B) Adjustment for refund feature:       1) Contributions (net cost) $7,559. File my 2011 tax return for free 45   2) Guaranteed amount (contributions of $7,559. File my 2011 tax return for free 45 plus interest of $1,602. File my 2011 tax return for free 53) $9,161. File my 2011 tax return for free 98   3) Minus: Expected return under child's (temporary life) annuity (A(2)) 5,400. File my 2011 tax return for free 00   4) Net guaranteed amount $3,761. File my 2011 tax return for free 98   5) Multiple from Table VII (nearest age 48 for 2 years duration (recovery of $3,761. File my 2011 tax return for free 98 at $171 a month to nearest whole year)) 0%   6) Adjustment required for value of refund feature rounded to the nearest whole dollar  (0% × $3,761. File my 2011 tax return for free 98, the smaller of B(3) or B(6)) 0 *Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. File my 2011 tax return for free See the discussion of expected return, later in this publication. File my 2011 tax return for free Free IRS help. File my 2011 tax return for free   If you need to request assistance to figure the value of the refund feature, see Requesting a Ruling on Taxation of Annuity near the end of this publication. File my 2011 tax return for free Expected Return Your expected return is the total amount you and other eligible annuitants can expect to receive under the contract. File my 2011 tax return for free The following discussions explain how to figure the expected return with each type of annuity. File my 2011 tax return for free A person's age, for purposes of figuring the expected return, is the age at the birthday nearest to the annuity starting date. File my 2011 tax return for free Fixed period annuity. File my 2011 tax return for free   If you will get annuity payments for a fixed number of years, without regard to your life expectancy, you must figure your expected return based on that fixed number of years. File my 2011 tax return for free It is the total amount you will get beginning at the annuity starting date. File my 2011 tax return for free You will receive specific periodic payments for a definite period of time, such as a fixed number of months (but not less than 13). File my 2011 tax return for free To figure your expected return, multiply the fixed number of months for which payments are to be made by the amount of the payment specified for each period. File my 2011 tax return for free Single life annuity. File my 2011 tax return for free   If you are to get annuity payments for the rest of your life, find your expected return as follows. File my 2011 tax return for free You must multiply the amount of the annual payment by a multiple based on your life expectancy as of the annuity starting date. File my 2011 tax return for free These multiples are set out in actuarial Tables I and V near the end of this publication (see How To Use Actuarial Tables , later). File my 2011 tax return for free   You may need to adjust these multiples if the payments are made quarterly, semiannually, or annually. File my 2011 tax return for free See Adjustments to Tables I, II, V, VI, and VIA following Table I. File my 2011 tax return for free Example. File my 2011 tax return for free Henry bought an annuity contract that will give him an annuity of $500 a month for his life. File my 2011 tax return for free If at the annuity starting date Henry's nearest birthday is 66, the expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table V, age 66 × 19. File my 2011 tax return for free 2 Expected return $115,200 If the payments were to be made to Henry quarterly and the first payment was made one full month after the annuity starting date, Henry would adjust the 19. File my 2011 tax return for free 2 multiple by +. File my 2011 tax return for free 1. File my 2011 tax return for free His expected return would then be $115,800 ($6,000 × 19. File my 2011 tax return for free 3). File my 2011 tax return for free Annuity for shorter of life or specified period. File my 2011 tax return for free   With this type of annuity, you are to get annuity payments either for the rest of your life or until the end of a specified period, whichever period is shorter. File my 2011 tax return for free To figure your expected return, multiply the amount of your annual payment by a multiple in Table IV or VIII for temporary life annuities. File my 2011 tax return for free Find the proper multiple based on your sex (if using Table IV), your age at the annuity starting date, and the nearest whole number of years in the specified period. File my 2011 tax return for free Example. File my 2011 tax return for free Harriet purchased an annuity this year that will pay her $200 each month for five years or until she dies, whichever period is shorter. File my 2011 tax return for free She was age 65 at her birthday nearest the annuity starting date. File my 2011 tax return for free She figures the expected return as follows: Annual payment ($200 × 12 months) $2,400 Multiple shown in Table VIII, age 65, 5-year term × 4. File my 2011 tax return for free 9 Expected return $11,760 She uses Table VIII (not Table IV) because all her contributions were made after June 30, 1986. File my 2011 tax return for free See Special Elections, later. File my 2011 tax return for free Joint and survivor annuities. File my 2011 tax return for free   If you have an annuity that pays you a periodic income for life and after your death provides an identical lifetime periodic income to your spouse (or some other person), you figure the expected return based on your combined life expectancies. File my 2011 tax return for free To figure the expected return, multiply the annual payment by a multiple in Table II or VI based on your joint life expectancies. File my 2011 tax return for free If your payments are made quarterly, semiannually, or annually, you may need to adjust these multiples. File my 2011 tax return for free See Adjustments to Tables I, II, V, VI, and VIA following Table I near the end of this publication. File my 2011 tax return for free Example. File my 2011 tax return for free John bought a joint and survivor annuity providing payments of $500 a month for his life, and, after his death, $500 a month for the remainder of his wife's life. File my 2011 tax return for free At John's annuity starting date, his age at his nearest birthday is 70 and his wife's at her nearest birthday is 67. File my 2011 tax return for free The expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table VI, ages 67 and 70 × 22. File my 2011 tax return for free 0 Expected return $132,000 Different payments to survivor. File my 2011 tax return for free   If your contract provides that payments to a survivor annuitant will be different from the amount you receive, you must use a computation which accounts for both the joint lives of the annuitants and the life of the survivor. File my 2011 tax return for free Example 1. File my 2011 tax return for free Gerald bought a contract providing for payments to him of $500 a month for life and, after his death, payments to his wife, Mary, of $350 a month for life. File my 2011 tax return for free If, at the annuity starting date, Gerald's nearest birthday is 70 and Mary's is 67, the expected return under the contract is figured as follows: Combined multiple for Gerald and Mary, ages 70 and 67 (from Table VI)   22. File my 2011 tax return for free 0 Multiple for Gerald, age 70 (from Table V)   16. File my 2011 tax return for free 0 Difference: Multiple applicable to Mary   6. File my 2011 tax return for free 0 Gerald's annual payment ($500 × 12) $6,000   Gerald's multiple 16. File my 2011 tax return for free 0   Gerald's expected return   $96,000 Mary's annual payment ($350 × 12) $4,200   Mary's multiple 6. File my 2011 tax return for free 0   Mary's expected return   25,200 Total expected return under the contract   $121,200 Example 2. File my 2011 tax return for free Your husband died while still employed. File my 2011 tax return for free Under the terms of his employer's retirement plan, you are entitled to get an immediate annuity of $400 a month for the rest of your life or until you remarry. File my 2011 tax return for free Your daughters, Marie and Jean, are each entitled to immediate temporary life annuities of $150 a month until they reach age 18. File my 2011 tax return for free You were 50 years old at the annuity starting date. File my 2011 tax return for free Marie was 16 and Jean was 14. File my 2011 tax return for free Using the multiples shown in Tables V and VIII at the end of this publication, the total expected return on the annuity starting date is $169,680, figured as follows: Widow, age 50 (multiple from Table V—33. File my 2011 tax return for free 1 × $4,800 annual payment) $158,880 Marie, age 16 for 2 years duration (multiple from Table VIII—2. File my 2011 tax return for free 0 × $1,800 annual payment) 3,600 Jean, age 14 for 4 years duration (multiple from Table VIII—4. File my 2011 tax return for free 0 × $1,800 annual payment) 7,200 Total expected return $169,680 No computation of expected return is made based on your husband's age at the date of death because he died before the annuity starting date. File my 2011 tax return for free Computation Under the General Rule Note. File my 2011 tax return for free Variable annuities use a different computation for determining the exclusion amounts. File my 2011 tax return for free See Variable annuities later. File my 2011 tax return for free Under the General Rule, you figure the taxable part of your annuity by using the following steps: Step 1. File my 2011 tax return for free   Figure the amount of your investment in the contract, including any adjustments for the refund feature and the death benefit exclusion, if applicable. File my 2011 tax return for free See Death benefit exclusion , earlier. File my 2011 tax return for free Step 2. File my 2011 tax return for free   Figure your expected return. File my 2011 tax return for free Step 3. File my 2011 tax return for free   Divide Step 1 by Step 2 and round to three decimal places. File my 2011 tax return for free This will give you the exclusion percentage. File my 2011 tax return for free Step 4. File my 2011 tax return for free   Multiply the exclusion percentage by the first regular periodic payment. File my 2011 tax return for free The result is the tax-free part of each pension or annuity payment. File my 2011 tax return for free   The tax-free part remains the same even if the total payment increases due to variation in the annuity amount such as cost of living increases, or you outlive the life expectancy factor used. File my 2011 tax return for free However, if your annuity starting date is after 1986, the total amount of annuity income that is tax free over the years cannot exceed your net cost. File my 2011 tax return for free   Each annuitant applies the same exclusion percentage to his or her initial payment called for in the contract. File my 2011 tax return for free Step 5. File my 2011 tax return for free   Multiply the tax-free part of each payment (step 4) by the number of payments received during the year. File my 2011 tax return for free This will give you the tax-free part of the total payment for the year. File my 2011 tax return for free    In the first year of your annuity, your first payment or part of your first payment may be for a fraction of the payment period. File my 2011 tax return for free This fractional amount is multiplied by your exclusion percentage to get the tax-free part. File my 2011 tax return for free Step 6. File my 2011 tax return for free   Subtract the tax-free part from the total payment you received. File my 2011 tax return for free The rest is the taxable part of your pension or annuity. File my 2011 tax return for free Example 1. File my 2011 tax return for free You purchased an annuity with an investment in the contract of $10,800. File my 2011 tax return for free Under its terms, the annuity will pay you $100 a month for life. File my 2011 tax return for free The multiple for your age (age 65) is 20. File my 2011 tax return for free 0 as shown in Table V. File my 2011 tax return for free Your expected return is $24,000 (20 × 12 × $100). File my 2011 tax return for free Your cost of $10,800, divided by your expected return of $24,000, equals 45. File my 2011 tax return for free 0%. File my 2011 tax return for free This is the percentage you will not have to include in income. File my 2011 tax return for free Each year, until your net cost is recovered, $540 (45% of $1,200) will be tax free and you will include $660 ($1,200 − $540) in your income. File my 2011 tax return for free If you had received only six payments of $100 ($600) during the year, your exclusion would have been $270 (45% of $100 × 6 payments). File my 2011 tax return for free Example 2. File my 2011 tax return for free Gerald bought a joint and survivor annuity. File my 2011 tax return for free Gerald's investment in the contract is $62,712 and the expected return is $121,200. File my 2011 tax return for free The exclusion percentage is 51. File my 2011 tax return for free 7% ($62,712 ÷ $121,200). File my 2011 tax return for free Gerald will receive $500 a month ($6,000 a year). File my 2011 tax return for free Each year, until his net cost is recovered, $3,102 (51. File my 2011 tax return for free 7% of his total payments received of $6,000) will be tax free and $2,898 ($6,000 − $3,102) will be included in his income. File my 2011 tax return for free If Gerald dies, his wife will receive $350 a month ($4,200 a year). File my 2011 tax return for free If Gerald had not recovered all of his net cost before his death, his wife will use the same exclusion percentage (51. File my 2011 tax return for free 7%). File my 2011 tax return for free Each year, until the entire net cost is recovered, his wife will receive $2,171. File my 2011 tax return for free 40 (51. File my 2011 tax return for free 7% of her payments received of $4,200) tax free. File my 2011 tax return for free She will include $2,028. File my 2011 tax return for free 60 ($4,200 − $2,171. File my 2011 tax return for free 40) in her income tax return. File my 2011 tax return for free Example 3. File my 2011 tax return for free Using the same facts as Example 2 under Different payments to survivor, you are to receive an annual annuity of $4,800 until you die or remarry. File my 2011 tax return for free Your two daughters each receive annual annuities of $1,800 until they reach age 18. File my 2011 tax return for free Your husband contributed $25,576 to the plan. File my 2011 tax return for free You are eligible for the $5,000 death benefit exclusion because your husband died before August 21, 1996. File my 2011 tax return for free Adjusted Investment in the Contract Contributions $25,576 Plus: Death benefit exclusion 5,000 Adjusted investment in the contract $30,576 The total expected return, as previously figured (in Example 2 under Different payments to survivor), is $169,680. File my 2011 tax return for free The exclusion percentage of 18. File my 2011 tax return for free 0% ($30,576 ÷ $169,680) applies to the annuity payments you and each of your daughters receive. File my 2011 tax return for free Each full year $864 (18. File my 2011 tax return for free 0% × $4,800) will be tax free to you, and you must include $3,936 in your income tax return. File my 2011 tax return for free Each year, until age 18, $324 (18. File my 2011 tax return for free 0% × $1,800) of each of your daughters' payments will be tax free and each must include the balance, $1,476, as income on her own income tax return. File my 2011 tax return for free Part-year payments. File my 2011 tax return for free   If you receive payments for only part of a year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments received during the year. File my 2011 tax return for free   If you receive amounts during the year that represent 12 payments, one for each month in that year, and an amount that represents payments for months in a prior year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments the amounts received represent. File my 2011 tax return for free For instance, if you received amounts during the year that represent the 12 payments for that year plus an amount that represents three payments for a prior year, multiply that amount by the 15 (12 + 3) payments received that the year. File my 2011 tax return for free   If you received a fractional payment, follow Step 5, discussed earlier. File my 2011 tax return for free This gives you the tax-free part of your total payment. File my 2011 tax return for free Example. File my 2011 tax return for free On September 28, Mary bought an annuity contract for $22,050 that will give her $125 a month for life, beginning October 30. File my 2011 tax return for free The applicable multiple from Table V is 23. File my 2011 tax return for free 3 (age 61). File my 2011 tax return for free Her expected return is $34,950 ($125 × 12 × 23. File my 2011 tax return for free 3). File my 2011 tax return for free Mary's investment in the contract of $22,050, divided by her expected return of $34,950, equals 63. File my 2011 tax return for free 1%. File my 2011 tax return for free Each payment received will consist of 63. File my 2011 tax return for free 1% return of cost and 36. File my 2011 tax return for free 9% taxable income, until her net cost of the contract is fully recovered. File my 2011 tax return for free During the first year, Mary received three payments of $125, or $375, of which $236. File my 2011 tax return for free 63 (63. File my 2011 tax return for free 1% × $375) is a return of cost. File my 2011 tax return for free The remaining $138. File my 2011 tax return for free 37 is included in income. File my 2011 tax return for free Increase in annuity payments. File my 2011 tax return for free   The tax-free amount remains the same as the amount figured at the annuity starting date, even if the payment increases. File my 2011 tax return for free All increases in the installment payments are fully taxable. File my 2011 tax return for free   However, if your annuity payments are scheduled to increase at a definite date in the future you must figure the expected return for that annuity using the method described in section 1. File my 2011 tax return for free 72-5(a)(5) of the regulations. File my 2011 tax return for free Example. File my 2011 tax return for free Joe's wife died while she was still employed and, as her beneficiary, he began receiving an annuity of $147 per month. File my 2011 tax return for free In figuring the taxable part, Joe elects to use Tables V through VIII. File my 2011 tax return for free The cost of the contract was $7,938, consisting of the sum of his wife's net contributions, adjusted for any refund feature. File my 2011 tax return for free His expected return as of the annuity starting date is $35,280 (age 65, multiple of 20. File my 2011 tax return for free 0 × $1,764 annual payment). File my 2011 tax return for free The exclusion percentage is $7,938 ÷ $35,280, or 22. File my 2011 tax return for free 5%. File my 2011 tax return for free During the year he received 11 monthly payments of $147, or $1,617. File my 2011 tax return for free Of this amount, 22. File my 2011 tax return for free 5% × $147 × 11 ($363. File my 2011 tax return for free 83) is tax free as a return of cost and the balance of $1,253. File my 2011 tax return for free 17 is taxable. File my 2011 tax return for free Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 × $166). File my 2011 tax return for free The tax-free part is still only 22. File my 2011 tax return for free 5% of the annuity payments as of the annuity starting date (22. File my 2011 tax return for free 5% × $147 × 12 = $396. File my 2011 tax return for free 90 for a full year). File my 2011 tax return for free The increase of $228 ($1,992 − $1,764 (12 × $147)) is fully taxable. File my 2011 tax return for free Variable annuities. File my 2011 tax return for free   For variable annuity payments, figure the amount of each payment that is tax free by dividing your investment in the contract (adjusted for any refund feature) by the total number of periodic payments you expect to get under the contract. File my 2011 tax return for free   If the annuity is for a definite period, you determine the total number of payments by multiplying the number of payments to be made each year by the number of years you will receive payments. File my 2011 tax return for free If the annuity is for life, you determine the total number of payments by using a multiple from the appropriate actuarial table. File my 2011 tax return for free Example. File my 2011 tax return for free Frank purchased a variable annuity at age 65. File my 2011 tax return for free The total cost of the contract was $12,000. File my 2011 tax return for free The annuity starting date is January 1 of the year of purchase. File my 2011 tax return for free His annuity will be paid, starting July 1, in variable annual installments for his life. File my 2011 tax return for free The tax-free amount of each payment, until he has recovered his cost of his contract, is: Investment in the contract $12,000 Number of expected annual payments (multiple for age 65 from Table V) 20 Tax-free amount of each payment ($12,000 ÷ 20) $600 If Frank's first payment is $920, he includes only $320 ($920 − $600) in his gross income. File my 2011 tax return for free   If the tax-free amount for a year is more than the payments you receive in that year, you may choose, when you receive the next payment, to refigure the tax-free part. File my 2011 tax return for free Divide the amount of the periodic tax-free part that is more than the payment you received by the remaining number of payments you expect. File my 2011 tax return for free The result is added to the previously figured periodic tax-free part. File my 2011 tax return for free The sum is the amount of each future payment that will be tax free. File my 2011 tax return for free Example. File my 2011 tax return for free Using the facts of the previous example about Frank, assume that after Frank's $920 payment, he received $500 in the following year, and $1,200 in the year after that. File my 2011 tax return for free Frank does not pay tax on the $500 (second year) payment because $600 of each annual pension payment is tax free. File my 2011 tax return for free Since the $500 payment is less than the $600 annual tax-free amount, he may choose to refigure his tax-free part when he receives his $1,200 (third year) payment, as follows: Amount tax free in second year $600. File my 2011 tax return for free 00 Amount received in second year 500. File my 2011 tax return for free 00 Difference $100. File my 2011 tax return for free 00 Number of remaining payments after the first 2 payments (age 67, from Table V) 18. File my 2011 tax return for free 4 Amount to be added to previously determined annual tax-free part ($100 ÷ 18. File my 2011 tax return for free 4) $5. File my 2011 tax return for free 43 Revised annual tax-free part for third and later years ($600 + $5. File my 2011 tax return for free 43) $605. File my 2011 tax return for free 43 Amount taxable in third year ($1,200 − $605. File my 2011 tax return for free 43) $594. File my 2011 tax return for free 57 If you choose to refigure your tax-free amount,   you must file a statement with your income tax return stating that you are refiguring the tax-free amount in accordance with the rules of section 1. File my 2011 tax return for free 72–4(d)(3) of the Income Tax Regulations. File my 2011 tax return for free The statement must also show the following information: The annuity starting date and your age on that date. File my 2011 tax return for free The first day of the first period for which you received an annuity payment in the current year. File my 2011 tax return for free Your investment in the contract as originally figured. File my 2011 tax return for free The total of all amounts received tax free under the annuity from the annuity starting date through the first day of the first period for which you received an annuity payment in the current tax year. File my 2011 tax return for free Exclusion Limits Your annuity starting date determines the total amount of annuity income that you can exclude from income over the years. File my 2011 tax return for free Exclusion limited to net cost. File my 2011 tax return for free   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a return of your cost cannot exceed your net cost (figured without any reduction for a refund feature). File my 2011 tax return for free This is the unrecovered investment in the contract as of the annuity starting date. File my 2011 tax return for free   If your annuity starting date is after July 1, 1986, any unrecovered net cost at your (or last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. File my 2011 tax return for free This deduction is not subject to the 2%-of-adjusted-gross-income limit. File my 2011 tax return for free Example 1. File my 2011 tax return for free Your annuity starting date is after 1986. File my 2011 tax return for free Your total cost is $12,500, and your net cost is $10,000, taking into account certain adjustments. File my 2011 tax return for free There is no refund feature. File my 2011 tax return for free Your monthly annuity payment is $833. File my 2011 tax return for free 33. File my 2011 tax return for free Your exclusion ratio is 12% and you exclude $100 a month. File my 2011 tax return for free Your exclusion ends after 100 months, when you have excluded your net cost of $10,000. File my 2011 tax return for free Thereafter, your annuity payments are fully taxable. File my 2011 tax return for free Example 2. File my 2011 tax return for free The facts are the same as in Example 1, except that there is a refund feature, and you die after 5 years with no surviving annuitant. File my 2011 tax return for free The adjustment for the refund feature is $1,000, so the investment in the contract is $9,000. File my 2011 tax return for free The exclusion ratio is 10. File my 2011 tax return for free 8%, and your monthly exclusion is $90. File my 2011 tax return for free After 5 years (60 months), you have recovered tax free only $5,400 ($90 x 60). File my 2011 tax return for free An itemized deduction for the unrecovered net cost of $4,600 ($10,000 net cost minus $5,400) may be taken on your final income tax return. File my 2011 tax return for free Your unrecovered investment is determined without regard to the refund feature adjustment, discussed earlier, under Adjustments. File my 2011 tax return for free Exclusion not limited to net cost. File my 2011 tax return for free   If your annuity starting date was before 1987, you could continue to take your monthly exclusion for as long as you receive your annuity. File my 2011 tax return for free If you choose a joint and survivor annuity, your survivor continues to take the survivor's exclusion figured as of the annuity starting date. File my 2011 tax return for free The total exclusion may be more than your investment in the contract. File my 2011 tax return for free How To Use Actuarial Tables In figuring, under the General Rule, the taxable part of your annuity payments that you are to get for the rest of your life (rather than for a fixed number of years), you must use one or more of the actuarial tables in this publication. File my 2011 tax return for free Unisex Annuity Tables Effective July 1, 1986, the Internal Revenue Service adopted new annuity Tables V through VIII, in which your sex is not considered when determining the applicable factor. File my 2011 tax return for free These tables correspond to the old Tables I through IV. File my 2011 tax return for free In general, Tables V through VIII must be used if you made contributions to the retirement plan after June 30, 1986. File my 2011 tax return for free If you made no contributions to the plan after June 30, 1986, generally you must use only Tables I through IV. File my 2011 tax return for free However, if you received an annuity payment after June 30, 1986, you may elect to use Tables V through VIII (see Annuity received after June 30, 1986, later). File my 2011 tax return for free Special Elections Although you generally must use Tables V through VIII if you made contributions to the retirement plan after June 30, 1986, and Tables I through IV if you made no contributions after June 30, 1986, you can make the following special elections to select which tables to use. File my 2011 tax return for free Contributions made both before July 1986 and after June 1986. File my 2011 tax return for free   If you made contributions to the retirement plan both before July 1986 and after June 1986, you may elect to use Tables I through IV for the pre-July 1986 cost of the contract, and Tables V through VIII for the post-June 1986 cost. File my 2011 tax return for free (See the examples below. File my 2011 tax return for free )    Making the election. File my 2011 tax return for free Attach this statement to your income tax return for the first year in which you receive an annuity:    “I elect to apply the provisions of paragraph (d) of section 1. File my 2011 tax return for free 72–6 of the Income Tax Regulations. File my 2011 tax return for free ”   The statement must also include your name, address, social security number, and the amount of the pre-July 1986 investment in the contract. File my 2011 tax return for free   If your investment in the contract includes post-June 1986 contributions to the plan, and you do not make the election to use Tables I through IV and Tables V through VIII, then you can only use Tables V through VIII in figuring the taxable part of your annuity. File my 2011 tax return for free You must also use Tables V through VIII if you are unable or do not wish to determine the portions of your contributions which were made before July 1, 1986, and after June 30, 1986. File my 2011 tax return for free    Advantages of election. File my 2011 tax return for free In general, a lesser amount of each annual annuity payment is taxable if you separately figure your exclusion ratio for pre-July 1986 and post-June 1986 contributions. File my 2011 tax return for free    If you intend to make this election, save your records that substantiate your pre-July 1986 and post-June 1986 contributions. File my 2011 tax return for free If the death benefit exclusion applies (see discussion, earlier), you do not have to apportion it between the pre-July 1986 and the post-June 1986 investment in the contract. File my 2011 tax return for free   The following examples illustrate the separate computations required if you elect to use Tables I through IV for your pre-July 1986 investment in the contract and Tables V through VIII for your post-June 1986 investment in the contract. File my 2011 tax return for free Example 1. File my 2011 tax return for free Bill, who is single, contributed $42,000 to the retirement plan and will receive an annual annuity of $24,000 for life. File my 2011 tax return for free Payment of the $42,000 contribution is guaranteed under a refund feature. File my 2011 tax return for free Bill is 55 years old as of the annuity starting date. File my 2011 tax return for free For figuring the taxable part of Bill's annuity, he chose to make separate computations for his pre-July 1986 investment in the contract of $41,300, and for his post-June 1986 investment in the contract of $700. File my 2011 tax return for free       Pre- July 1986   Post- June 1986 A. File my 2011 tax return for free Adjustment for refund feature         1) Net cost $41,300   $700   2) Annual annuity—$24,000  ($41,300/$42,000 × $24,000) $23,600       ($700/$42,000 × $24,000)     $400   3) Guarantee under contract $41,300   $700   4) No. File my 2011 tax return for free of years payments  guaranteed (rounded), A(3) ÷ A(2) 2   2   5) Applicable percentage from  Tables III and VII 1%   0%   6) Adjustment for value of refund  feature, A(5) × smaller of A(1)  or A(3) $413   $0 B. File my 2011 tax return for free Investment in the contract         1) Net cost $41,300   $700   2) Minus: Amount in A(6) 413   0   3) Investment in the contract $40,887   $700 C. File my 2011 tax return for free Expected return         1) Annual annuity receivable $24,000   $24,000   2) Multiples from Tables I and V 21. File my 2011 tax return for free 7   28. File my 2011 tax return for free 6   3) Expected return, C(1) × C(2) $520,800   $686,400 D. File my 2011 tax return for free Tax-free part of annuity         1) Exclusion ratio as decimal,  B(3) ÷ C(3) . File my 2011 tax return for free 079   . File my 2011 tax return for free 001   2) Tax-free part, C(1) × D(1) $1,896   $24 The tax-free part of Bill's total annuity is $1,920 ($1,896 plus $24). File my 2011 tax return for free The taxable part of his annuity is $22,080 ($24,000 minus $1,920). File my 2011 tax return for free If the annuity starting date is after 1986, the exclusion over the years cannot exceed the net cost (figured without any reduction for a refund feature). File my 2011 tax return for free Example 2. File my 2011 tax return for free Al is age 62 at his nearest birthday to the annuity starting date. File my 2011 tax return for free Al's wife is age 60 at her nearest birthday to the annuity starting date. File my 2011 tax return for free The joint and survivor annuity pays $1,000 per month to Al for life, and $500 per month to Al's surviving wife after his death. File my 2011 tax return for free The pre-July 1986 investment in the contract is $53,100 and the post-June 1986 investment in the contract is $7,000. File my 2011 tax return for free Al makes the election described in Example 1 . File my 2011 tax return for free For purposes of this example, assume the refund feature adjustment is zero. File my 2011 tax return for free If an adjustment is required, IRS will figure the amount. File my 2011 tax return for free See Requesting a Ruling on Taxation of Annuity near the end of this publication. File my 2011 tax return for free       Pre-  July 1986   Post-  June 1986 A. File my 2011 tax return for free Adjustment for refund feature         1) Net cost $53,100   $7,000   2) Annual annuity—$12,000  ($53,100/$60,100 × $12,000) $10,602       ($7,000/$60,100 × $12,000)     $1,398   3) Guaranteed under the contract $53,100   $7,000   4) Number of years guaranteed,  rounded, A(3) ÷ A(2) 5   5   5) Applicable percentages 0%   0%   6) Refund feature adjustment, A(5) × smaller of A(1) or A(3) 0   0 B. File my 2011 tax return for free Investment in the contract         1) Net cost $53,100   $7,000   2) Refund feature adjustment 0   0   3) Investment in the contract adjusted for refund feature $53,100   $7,000 C. File my 2011 tax return for free Expected return         1) Multiple for both annuitants from Tables II and VI 25. File my 2011 tax return for free 4   28. File my 2011 tax return for free 8   2) Multiple for first annuitant from Tables I and V 16. File my 2011 tax return for free 9   22. File my 2011 tax return for free 5   3) Multiple applicable to surviving annuitant, subtract C(2) from C(1) 8. File my 2011 tax return for free 5   6. File my 2011 tax return for free 3   4) Annual annuity to surviving annuitant $6,000   $6,000   5) Portion of expected return for surviving annuitant, C(4) × C(3) $51,000   $37,800   6) Annual annuity to first annuitant $12,000   $12,000   7) Plus: Portion of expected return for first annuitant, C(6) × C(2) $202,800   $270,000   8) Expected return for both annuitants, C(5) + C(7) $253,800   $307,800 D. File my 2011 tax return for free Tax-free part of annuity         1) Exclusion ratio as a decimal, B(3) ÷ C(8) . File my 2011 tax return for free 209   . File my 2011 tax return for free 023   2) Retiree's tax-free part of annuity, C(6) × D(1) $2,508   $276   3) Survivor's tax-free part of annuity, C(4) × D(1) $1,254   $138 The tax-free part of Al's total annuity is $2,784 ($2,508 + $276). File my 2011 tax return for free The taxable part of his annuity is $9,216 ($12,000 − $2,784). File my 2011 tax return for free The exclusion over the years cannot exceed the net cost of the contract (figured without any reduction for a refund feature) if the annuity starting date is after 1986. File my 2011 tax return for free After Al's death, his widow will apply the same exclusion percentages (20. File my 2011 tax return for free 9% and 2. File my 2011 tax return for free 3%) to her annual annuity of $6,000 to figure the tax-free part of her annuity. File my 2011 tax return for free Annuity received after June 30, 1986. File my 2011 tax return for free   If you receive an annuity payment after June 30, 1986, (regardless of your annuity starting date), you may elect to treat the entire cost of the contract as post-June 1986 cost (even if you made no post-June 1986 contributions to the plan) and use Tables V through VIII. File my 2011 tax return for free Once made, you cannot revoke the election, which will apply to all payments during the year and in any later year. File my 2011 tax return for free    Make the election by attaching the following statement to your income tax return. File my 2011 tax return for free    “I elect, under section 1. File my 2011 tax return for free 72–9 of the Income Tax Regulations, to treat my entire cost of the contract as a post-June 1986 cost of the plan. File my 2011 tax return for free ”   The statement must also include your name, address, and social security number. File my 2011 tax return for free   You should also indicate you are making this election if you are unable or do not wish to determine the parts of your contributions which were made before July 1, 1986, and after June 30, 1986. File my 2011 tax return for free Disqualifying form of payment or settlement. File my 2011 tax return for free   If your annuity starting date is after June 30, 1986, and the contract provides for a disqualifying form of payment or settlement, such as an option to receive a lump sum in full discharge of the obligation under the contract, the entire investment in the contract is treated as post-June 1986 investment in the contract. File my 2011 tax return for free See regulations section 1. File my 2011 tax return for free 72–6(d)(3) for additional examples of disqualifying forms of payment or settlement. File my 2011 tax return for free You can find the Income Tax Regulations in many libraries and at Internal Revenue Service Offices. File my 2011 tax return for free Worksheets for Determining Taxable Annuity Worksheets I and II. File my 2011 tax return for free   Worksheets I and II follow for determining your taxable annuity under Regulations Section 1. File my 2011 tax return for free 72–6(d)(6) Election. File my 2011 tax return for free Worksheet I For Determining Taxable Annuity Under Regulations Section 1. File my 2011 tax return for free 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity               Pre-July 1986   Post-June 1986 A. File my 2011 tax return for free   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. File my 2011 tax return for free )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)   Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages* from Tables III and VII                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. File my 2011 tax return for free If not, the IRS will calculate the refund feature percentage. File my 2011 tax return for free             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. File my 2011 tax return for free   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund feature:                   B(1) minus B(2)                             C. File my 2011 tax return for free   Expected Return             1)   Annual Annuity:                   12 times monthly annuity**             2)   Expected return multiples from Tables I and V             3)     Expected return:                   C(1) times C(2)                             D. File my 2011 tax return for free   Tax-Free Part of Annuity             1)     Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(3)             2)     Tax-free part of annuity:                   C(1) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. File my 2011 tax return for free     Worksheet II For Determining Taxable Annuity Under Regulations Section 1. File my 2011 tax return for free 72-6(d)(6) Election For Joint and Survivor Annuity               Pre-July 1986   Post-June 1986 A. File my 2011 tax return for free   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. File my 2011 tax return for free )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)     Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages*                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. File my 2011 tax return for free If not, the IRS will calculate the refund feature percentage. File my 2011 tax return for free             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. File my 2011 tax return for free   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund future:                   B(1) minus B(2)                             C. File my 2011 tax return for free   Expected Return             1)   Multiples for both annuitants, Tables II and VI             2)   Multiple for retiree. File my 2011 tax return for free Tables I and VI             3)   Multiple for survivor:                   C(1) minus C(2)             4)   Annual annuity to survivor:                   12 times potential monthly rate for survivor**             5)   Expected return for survivor:                   C(3) times C(4)             6)   Annual annuity to retiree:                   12 times monthly rate for retiree**             7)   Expected return for retiree:                   C(2) times C(6)             8)   Total expected return:                   C(5) plus C(7)                             D. File my 2011 tax return for free   Tax-Free Part of Annuity             1)   Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(8)             2)   Retiree's tax-free part of annuity:                   C(6) times D(1)             3)   Survivor's tax-free part of annuity, if surviving after death of retiree:                   C(4) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. File my 2011 tax return for free   Actuarial Tables Please click here for the text description of the image. File my 2011 tax return for free Actuarial Tables Please click here for the text description of the image. File my 2011 tax return for free Actuarial Tables Please click here for the text description of the image. File my 2011 tax return for free Actuarial tables Please click here for the text description of the image. 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File my 2011 tax return for free   Under the law in effect at the time this publication went to print, the IRS must charge a user fee for all ruling requests. File my 2011 tax return for free You should call the IRS for the proper fee. File my 2011 tax return for free A request solely for the value of the refund feature is not treated as a ruling request and requires no fee. File my 2011 tax return for free Send your request to:     Internal Revenue Service  Attention: EP Letter Rulings P. File my 2011 tax return for free O. File my 2011 tax return for free Box 27063 McPherson Station Washington, DC 20038 The user fee is allowed as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit. File my 2011 tax return for free When to make the request. File my 2011 tax return for free   Please note that requests sent between February 1 and April 15 may experience some delay. File my 2011 tax return for free We process requests in the order received, and we will reply to your request as soon as we can process it. File my 2011 tax return for free If you do not receive your ruling by the required filing date, you may use Form 4868, Application for Automatic Extension of Time To File U. File my 2011 tax return for free S. File my 2011 tax return for free Individual Income Tax Return, to get an extension of time to file. File my 2011 tax return for free Information you must furnish. File my 2011 tax return for free   You must furnish the information listed below so the IRS can comply with your request. File my 2011 tax return for free Failure to furnish the information will result in a delay in processing your request. File my 2011 tax return for free Please send only copies of the following documents, as the IRS retains all material sent for its records: A letter explaining the question(s) you wish to have resolved or the information you need from the ruling. 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Understanding your CP152 Notice

This notice acknowledges that we received your Form 8703, Annual Certification of a Residential Rental Project.


What you need to do

You don’t need to do anything.


You may want to...

Keep a copy of this notice for your records.


Answers to Common Questions

Will I receive a notice for each Form 8703 I filed?
Yes. We'll send a separate acknowledgement for each form.

Page Last Reviewed or Updated: 26-Mar-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The File My 2011 Tax Return For Free

File my 2011 tax return for free Publication 15-T - Additional Material Table of Contents This image is too large to be displayed in the current screen. File my 2011 tax return for free Please click the link to view the image. File my 2011 tax return for free Form W-4 (2009) This image is too large to be displayed in the current screen. File my 2011 tax return for free Please click the link to view the image. File my 2011 tax return for free Deductions and Adjustments Worksheet Notice to Employees Please click here for the text description of the image. File my 2011 tax return for free Multi-Media/Back Page Prev  Up  Next   Home   More Online Publications