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

Free Online Tax Extension

2009 Tax TablesMypay GovAmend Taxes Online Free2010 1040 Ez Tax FormMilitary State Tax ExemptionsH&r Block Advantage FreeCan I File 1040nr OnlineFile 2006 Federal Taxes FreeComplete 1040x FormForm 1040ez 2011Hr Block Free Tax File1040ez State Tax Form1040 X 2011How To Amend Last Year's TaxesIrs Form 1040 EzE File State And Federal Taxes For FreeWhere Can I File Back Taxes OnlineIrs Form 1040 Ez InstructionsIrs Amendment Form InstructionsState Tax RatesIrs 2009 Tax FormsFiling Income Tax For 2012How To File An Amended Tax Return For 2012 TurbotaxWhere To File 1040xTaxact 2011 Sign InHr Block Efile760 State Tax Form 2013E File State Tax Free2012 Irs Tax Forms 1040IrsTax Forms 2011Turbotax 2011Irs Tax Extension 2011Irs Extension FormTurbotax 1040ez Online1040x Instructions 2012Free Tax Filing CompaniesFree Online Tax FilingFree Tax Filing 2012 Online1040nr Ez Online

Free Online Tax Extension

Free online tax extension Index A Accounting method Accrual, Accrual Method, Accrual method. Free online tax extension Automatic procedures, Automatic change procedures. Free online tax extension Cash, Cash Method, Cash method. Free online tax extension Change in, Change in Accounting Method Combination, Combination Method Special, Special Methods Accounting periods, Accounting Periods Accrual method Income - general rule, Income—General Rule Income - special rules, Income—Special Rules Of accounting, Accrual Method Adjusted basis, Adjusted basis. Free online tax extension Administrator, Executor or administrator. Free online tax extension Alternative fuel vehicle refueling property credit, Alternative fuel vehicle refueling property credit (Form 8911). Free online tax extension Alternative motor vehicle credit, Alternative motor vehicle credit (Form 8910). Free online tax extension Appeal rights, Appeals. Free online tax extension Appreciation, Appreciation. Free online tax extension Audits, Examinations (audits). Free online tax extension Automobile (see Car expenses) B Bad debts, Bad Debts Barter income, Bartering for Property or Services Basis of property, Basis. Free online tax extension Bribes, Expenses You Cannot Deduct Business expenses, Business Expenses Business income, Business Income Business use of your home, Business Use of Your Home C Canceled debt, Canceled Debt Cancellation of qualified real property business debt, Cancellation of qualified real property business debt. Free online tax extension Capital gain or loss, Is My Gain or Loss Ordinary or Capital? Car expenses, Car and Truck Expenses, Methods for Deducting Car and Truck Expenses Carbon dioxide sequestration credit, Carbon dioxide sequestration credit (Form 8933). Free online tax extension Cash discount, Cash discounts. Free online tax extension , Cash discounts. Free online tax extension Cash method Expenses, Expenses Income, Income Changing accounting method, Changing accounting method. Free online tax extension Charitable contributions, Expenses You Cannot Deduct Child employed by parent, Child employed by parent. Free online tax extension Claim for refund, Refunds. Free online tax extension Collection of tax, Collections. Free online tax extension Combination method of accounting, Combination Method Comments on publication, Comments and suggestions. Free online tax extension Condemned property, Condemned property. Free online tax extension Consignments, Consignments. Free online tax extension Construction allowances, Construction allowances. Free online tax extension Cost of goods sold, How To Figure Cost of Goods Sold Credit Alternative fuel vehicle refueling property, Alternative fuel vehicle refueling property credit (Form 8911). Free online tax extension Alternative motor vehicle, Alternative motor vehicle credit (Form 8910). Free online tax extension Carbon dioxide sequestration, Carbon dioxide sequestration credit (Form 8933). Free online tax extension Disabled access, Disabled access credit (Form 8826). Free online tax extension Distilled spirits, Distilled spirits credit (Form 8906). Free online tax extension Employer-provided childcare, Credit for employer-provided childcare facilities and services (Form 8882). Free online tax extension How to claim, How To Claim the Credit Indian coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Free online tax extension Investment, Investment credit (Form 3468). Free online tax extension Low sulfur diesel fuel production, Low sulfur diesel fuel production credit (Form 8896). Free online tax extension Low-income housing, Low-income housing credit (Form 8586). Free online tax extension New markets, New markets credit (Form 8874). Free online tax extension Nonconventional source fuel, Nonconventional source fuel credit (Form 8907). Free online tax extension Orphan drug, Orphan drug credit (Form 8820). Free online tax extension Qualified plug-in electric drive motor vehicle, Qualified plug-in electric drive motor vehicle credit (Form 8936). Free online tax extension Refined coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Free online tax extension Renewable electricity, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Free online tax extension Small employer health insurance premiums, Credit for small employer health insurance premiums (Form 8941). Free online tax extension Small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881). Free online tax extension Taxes paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Free online tax extension Work opportunity, Work opportunity credit (Form 5884). Free online tax extension D Damages, Damages. Free online tax extension Debt Bad, Bad Debts Canceled, Canceled Debt Qualified real property business, Qualified real property business debt. Free online tax extension Refund offset against, Offset against debts. Free online tax extension Definitions Accounting methods, Accounting Methods Accounting periods, Accounting Periods Barter, Bartering for Property or Services Basis, Basis. Free online tax extension Business bad debt, Business bad debt. Free online tax extension Calendar tax year, Calendar tax year. Free online tax extension Cash discount, Cash discounts. Free online tax extension , Cash discounts. Free online tax extension Disposition of property, What Is a Disposition of Property? Drawing account, Merchandise withdrawn from sale. Free online tax extension Entertainment expenses, Entertainment expenses. Free online tax extension Fair market value, Fair market value. Free online tax extension Fiscal tax year, Fiscal tax year. Free online tax extension Fringe benefit, Fringe benefits. Free online tax extension Local transportation expenses, Local transportation expenses. Free online tax extension Necessary expense, Introduction Net operating loss, Net Operating Losses (NOLs) Nonbusiness bad debt, Nonbusiness bad debts. Free online tax extension Ordinary expense, Introduction Principal place of business, Principal place of business. Free online tax extension Qualified long-term real property, Qualified long-term real property. Free online tax extension Qualified real property business debt, Cancellation of qualified real property business debt. Free online tax extension Rent, Rent Expense Restricted property, Other Income Retail space, Retail space. Free online tax extension Self-employment (SE) tax, Self-Employment (SE) Tax Sole proprietor, Sole proprietor. Free online tax extension Tax home, Local transportation expenses. Free online tax extension Trade discount, Trade discounts. Free online tax extension , Cash discounts. Free online tax extension Travel expenses, Travel, Meals, and Entertainment Depreciation Deduction, Depreciation Listed property, Listed property. Free online tax extension Depreciation, recapture, Recapture of depreciation. Free online tax extension Direct seller, Direct seller. Free online tax extension , Real estate agent or direct seller. Free online tax extension Disabled access credit, Disabled access credit (Form 8826). Free online tax extension Disposition of property Business property, Introduction Installment sale, Installment sales. Free online tax extension , Installment sales. Free online tax extension Like-kind exchange, Like-kind exchanges. Free online tax extension , Like-kind exchanges. Free online tax extension , Exchange of like-kind property. Free online tax extension Nontaxable exchange, Nontaxable exchanges. Free online tax extension Sale of a business, Sale of a business. Free online tax extension Distilled spirits credit, Distilled spirits credit (Form 8906). Free online tax extension Dividend income, Interest and Dividend Income Donation of inventory, Donation of inventory. Free online tax extension Drawing account, Merchandise withdrawn from sale. Free online tax extension Due date of return, When Is My Tax Return Due? E e-file, IRS e-file (Electronic Filing) Economic injury, Economic injury. Free online tax extension EFTPS, EFTPS Electronic filing, IRS e-file (Electronic Filing) Employee, Employee. Free online tax extension Employee benefit programs, Fringe benefits. Free online tax extension Employees' pay, Employees' Pay Employer identification number (EIN), Employer identification number (EIN). Free online tax extension Employment taxes About, Employment Taxes Deduction for, Employment taxes. Free online tax extension Entertainment expenses, Entertainment expenses. Free online tax extension (see Travel expenses) Escrow, payments placed in, Payment placed in escrow. Free online tax extension Estimated tax, How Do I Pay Income Tax? Examinations (audits), Examinations (audits). Free online tax extension Excise taxes About, Excise Taxes Deduction for, Excise taxes. Free online tax extension Executor, Executor or administrator. Free online tax extension Expenses, Business Expenses Bad debts, Bad Debts Car, Car and Truck Expenses Depreciation, Depreciation Employees' pay, Employees' Pay Entertainment, Travel, Meals, and Entertainment Home, business use, Business Use of Your Home Insurance, Insurance Interest, Interest Legal and professional fees, Legal and Professional Fees Meals, Travel, Meals, and Entertainment Nondeductible, Expenses You Cannot Deduct Other, Other Expenses You Can Deduct Pension plans, Pension Plans Rent, Rent Expense Taxes, Taxes Travel, Travel, Meals, and Entertainment Truck, Car and Truck Expenses F Fair market value, Fair market value. Free online tax extension Filing business taxes, Filing and Paying Business Taxes Fishing crew member, Fishing crew member. Free online tax extension , Fishing crew member. Free online tax extension Form 1040 (tax return), How Do I File? 1040-ES (estimated tax), How Do I Pay Income Tax? 1040-V (voucher), Balance due. Free online tax extension 1099-B (barter), Information returns. Free online tax extension 1099-MISC (miscellaneous), Form 1099-MISC. Free online tax extension , Information returns. Free online tax extension 1128 (change tax year), Change in tax year. Free online tax extension 2210 (underpayment of estimated tax), Penalty for underpayment of tax. Free online tax extension 2290 (excise tax for heavy trucks), Form 2290. Free online tax extension 3115 (change accounting method), Change in Accounting Method 3468 (investment credit), Investment credit (Form 3468). Free online tax extension 3800 (general business credit), Useful Items - You may want to see: 4562 (depreciation), Form 4562. Free online tax extension 4684 (casualty and theft), Casualties and thefts. Free online tax extension 4797 (sale of business property), Dispositions of business property and depreciable property. Free online tax extension , Condemned property. Free online tax extension , Listed property. Free online tax extension 4868 (extension), When Is My Tax Return Due? 5884 (work opportunity credit), Work opportunity credit (Form 5884). Free online tax extension 6251 (alternative minimum tax), Useful Items - You may want to see: 6252 (installment sale), Installment sales. Free online tax extension 720 (excise tax return), Form 720. Free online tax extension 8300 (cash payments over $10,000), Form 8300. Free online tax extension 8586 (low-income housing), Low-income housing credit (Form 8586). Free online tax extension 8594 (asset acquisition), Sale of a business. Free online tax extension 8820 (orphan drug credit), Orphan drug credit (Form 8820). Free online tax extension 8824 (like-kind exchange), Like-kind exchanges. Free online tax extension , Like-kind exchanges. Free online tax extension 8826 (disabled access credit), Disabled access credit (Form 8826). Free online tax extension 8829 (business in home), Deduction limit. Free online tax extension 8835 (renewable electricity, coal credit), Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Free online tax extension 8846 (credit for social security on tip income), Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Free online tax extension 8857 (innocent spouse), Innocent spouse relief. Free online tax extension 8874 (new markets credit), New markets credit (Form 8874). Free online tax extension 8879 (self-selected PIN), Using an Authorized IRS e-file Provider 8881 (pension plan startup costs credit), Credit for small employer pension plan startup costs (Form 8881). Free online tax extension 8882 (employer-provided childcare credit), Credit for employer-provided childcare facilities and services (Form 8882). Free online tax extension 8886 (transaction statement), Reminders 8896 (low sulfur diesel fuel production credit), Low sulfur diesel fuel production credit (Form 8896). Free online tax extension 8906 (distilled spirits credit), Distilled spirits credit (Form 8906). Free online tax extension 8907 (nonconventional fuel credit), Nonconventional source fuel credit (Form 8907). Free online tax extension 8910 (alternative vehicle credit), Alternative motor vehicle credit (Form 8910). Free online tax extension , Car and Truck Expenses 8911 (alternative fuel refueling property credit), Alternative fuel vehicle refueling property credit (Form 8911). Free online tax extension 8933 (carbon dioxide sequestration credit), Carbon dioxide sequestration credit (Form 8933). Free online tax extension 8936 (qualified plug-in electric drive motor vehicle), Qualified plug-in electric drive motor vehicle credit (Form 8936). Free online tax extension 8941 (small employer health insurance premiums), Credit for small employer health insurance premiums (Form 8941). Free online tax extension 982 (discharge of indebtedness), Exclusions Schedule C (sole proprietor), How Do I File? Schedule C-EZ (sole proprietor), How Do I File? Schedule SE (self-employment tax), Who must pay self-employment tax. Free online tax extension SS-4 (application for EIN), Employer identification number (EIN). Free online tax extension SS-5 (application for SSN), Social security number (SSN). Free online tax extension W-2 (report wages), Form W-2. Free online tax extension W-4 (employee withholding), Employee. Free online tax extension W-7 (application for ITIN), Individual taxpayer identification number (ITIN). Free online tax extension W-9 (request for TIN), Other payee. Free online tax extension Fringe benefits, Fringe benefits. Free online tax extension Fuel taxes, Fuel taxes. Free online tax extension G Gains and losses, Gains and losses. Free online tax extension General business credits, General Business Credits, Business Credits Gross profit Accuracy, Testing Gross Profit Accuracy Additions to, Additions to Gross Profit Guidelines for selected occupations, Guidelines for Selected Occupations (see also Occupations, selected) H Health insurance, deduction for self-employed, Self-employed health insurance deduction. Free online tax extension Home, business use of, Business Use of Your Home Hotels, boarding houses, and apartments, Hotels, boarding houses, and apartments. Free online tax extension Husband and wife business, Business owned and operated by spouses. Free online tax extension I Identification numbers, Identification Numbers Income, Items That Are Not Income (see also Not income) Accounting for your, Accounting for Your Income Barter, Bartering for Property or Services Business, Business Income Damages, Damages. Free online tax extension Gains and losses, Gains and losses. Free online tax extension Kickbacks, Kickbacks. Free online tax extension Kinds of income, Kinds of Income Lost income payments, Lost income payments. Free online tax extension Other, Other Income Paid to a third party, Income paid to a third party. Free online tax extension Personal property rent, Personal Property Rents Promissory notes, Promissory notes. Free online tax extension Recapture of depreciation, Recapture of depreciation. Free online tax extension Recovery of items previously deducted, Recovery of items previously deducted. Free online tax extension Rental, Real Estate Rents, Personal Property Rents Restricted property, Restricted property. Free online tax extension Income tax About, Income Tax Deduction for, Income taxes. Free online tax extension How to pay, How Do I Pay Income Tax? Underpayment penalty, Penalty for underpayment of tax. Free online tax extension Income tax return, who must file, Do I Have To File an Income Tax Return? Independent contractor, Independent contractor. Free online tax extension , Employment Taxes, Sole proprietor or independent contractor. Free online tax extension Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). Free online tax extension Information returns, Information Returns Information, How to get more, How To Get More Information Innocent spouse relief, Innocent spouse relief. Free online tax extension Installment sales, Installment sales. Free online tax extension Insurance Expense, Insurance Nondeductible premiums, Nondeductible premiums. Free online tax extension Prepayment, Prepayment. Free online tax extension Proceeds, Insurance proceeds. Free online tax extension Self-employed health, Self-employed health insurance deduction. Free online tax extension Insurance agent Former, Insurance agent, former. Free online tax extension Retired, Insurance agent, retired. Free online tax extension Interest Expenses, Interest Income, Interest and Dividend Income Inventories, Inventories Investment credit, Investment credit (Form 3468). Free online tax extension K Kickbacks, Kickbacks. Free online tax extension , Expenses You Cannot Deduct L Lease bonus, Lease bonus. Free online tax extension Lease cancellation payments, Lease cancellation payments. Free online tax extension Legal fees, Legal and Professional Fees Like-kind exchanges, Like-kind exchanges. Free online tax extension , Exchange of like-kind property. Free online tax extension Limited liability company, Limited liability company (LLC). Free online tax extension Listed property, Listed property. Free online tax extension Lobbying expense, Expenses You Cannot Deduct Local transportation expenses, Local transportation expenses. Free online tax extension Lodging, Meals and lodging. Free online tax extension Long-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Lost income payments, Lost income payments. Free online tax extension Low sulfur diesel fuel production credit, Low sulfur diesel fuel production credit (Form 8896). Free online tax extension Low-income housing credit, Low-income housing credit (Form 8586). Free online tax extension M Meals, Meals and lodging. Free online tax extension (see Travel expenses) Methods for figuring net earnings, Methods for Figuring Net Earnings Mileage rate for vehicles, Standard mileage rate. Free online tax extension Motor vehicle, alternative credit, Alternative motor vehicle credit (Form 8910). Free online tax extension N Net operating losses, Net Operating Losses (NOLs) Net profit or loss, Introduction New markets credit, New markets credit (Form 8874). Free online tax extension Newspaper carrier or distributor, Newspaper carrier or distributor. Free online tax extension Newspaper or magazine vendor, Newspaper or magazine vendor. Free online tax extension Nonbusiness bad debt, Nonbusiness bad debts. Free online tax extension Nonconventional source fuel credit, Nonconventional source fuel credit (Form 8907). Free online tax extension Nondeductible insurance premiums, Nondeductible premiums. Free online tax extension Nonemployee compensation, Introduction Nontaxable exchanges, Nontaxable exchanges. Free online tax extension Not income Appreciation, Appreciation. Free online tax extension Consignments, Consignments. Free online tax extension Constructions allowances, Construction allowances. Free online tax extension Exchange of like-kind property, Exchange of like-kind property. Free online tax extension Leasehold improvements, Leasehold improvements. Free online tax extension Loans, Loans. Free online tax extension Sales tax, Sales tax. Free online tax extension Not-for-profit activities, Not-for-Profit Activities Notary public, Notary public. Free online tax extension , Notary public. Free online tax extension O Occupations, selected Administrator, Executor or administrator. Free online tax extension Direct seller, Direct seller. Free online tax extension , Real estate agent or direct seller. Free online tax extension Executor, Executor or administrator. Free online tax extension Fishing crew member, Fishing crew member. Free online tax extension Insurance agent, former, Insurance agent, former. Free online tax extension Insurance agent, retired, Insurance agent, retired. Free online tax extension Newspaper carrier or distributor, Newspaper carrier or distributor. Free online tax extension Newspaper or magazine vendor, Newspaper or magazine vendor. Free online tax extension Notary public, Notary public. Free online tax extension Public official, Public official. Free online tax extension Real estate agent, Real estate agent or direct seller. Free online tax extension Securities dealer, Securities dealer. Free online tax extension Securities trader, Securities trader. Free online tax extension Office in the home, Office in the home. Free online tax extension (see also Business use of your home) Optional methods, using both, Using Both Optional Methods Ordinary gain or loss, Is My Gain or Loss Ordinary or Capital? Orphan drug credit, Orphan drug credit (Form 8820). Free online tax extension P Parking fees, Parking fees and tolls. Free online tax extension Partners, husband and wife, Business owned and operated by spouses. Free online tax extension Pay, kinds of, Kinds of pay. Free online tax extension Paying Business taxes, Filing and Paying Business Taxes Income tax, How Do I Pay Income Tax? Payments to third parties, Payments to third parties. Free online tax extension Penalties and fines, Expenses You Cannot Deduct Penalty Failure to file Form 8300, Penalties. Free online tax extension Failure to file information returns, Penalties. Free online tax extension Failure to furnish correct payee statements, Penalties. Free online tax extension Underpayment of tax, Penalty for underpayment of tax. Free online tax extension Waiver of, Waiver of penalties. Free online tax extension Pension plans, Pension Plans Personal property tax, Personal property tax. Free online tax extension Prepaid expense Extends useful life, Prepayment. Free online tax extension Rent, Rent paid in advance. Free online tax extension Professional fees, Legal and Professional Fees Promissory notes, Promissory notes. Free online tax extension Public official, Public official. Free online tax extension Punitive damages, Punitive damages. Free online tax extension Q Qualified plug-in electric drive motor vehicle credit, Qualified plug-in electric drive motor vehicle credit (Form 8936). Free online tax extension Qualified real property business debt, Qualified real property business debt. Free online tax extension R Real estate Agent, Real estate agent or direct seller. Free online tax extension Dealer, Real estate dealer. Free online tax extension Rent, Real Estate Rents Taxes, Real estate taxes. Free online tax extension Recovery of items previously deducted, Recovery of items previously deducted. Free online tax extension Refund Inquiries, Refund inquiries. Free online tax extension Offsets against debts, Offset against debts. Free online tax extension Related persons Unreasonable rent, Unreasonable rent. Free online tax extension Renewable electricity, refined coal, and Indian coal production credit, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Free online tax extension Rent expense, Rent Expense Rental income, Real Estate Rents Repayment of income, Repayment of income. Free online tax extension Reportable transaction disclosure statement, Reminders Reporting self-employment tax, Reporting Self-Employment Tax Restricted property, Restricted property. Free online tax extension Retirement plans (see Pension plans) S Salaries, Employees' Pay Sale of a business, Sale of a business. Free online tax extension Sale of property, What Is a Disposition of Property? (see also Disposition of property) Sales of assets, Introduction Sales tax, Sales tax. Free online tax extension Schedule C, How Do I File? Schedule C-EZ, How Do I File? Schedule SE (Form 1040), Who must pay self-employment tax. Free online tax extension Schedule SE, filing requirement, Reporting Self-Employment Tax SE tax About, Self-Employment (SE) Tax Aliens, Aliens. Free online tax extension Child employed by parent, Child employed by parent. Free online tax extension Church employee, Church employee. Free online tax extension Community property income, Community Property Income Deduction for, Self-employment tax. Free online tax extension Earning credits, Earning credits in 2013 and 2014. Free online tax extension Effects of using an optional method, Effects of using an optional method. Free online tax extension Farm optional method, Farm Optional Method Fiscal year filer, Fiscal Year Filer Fishing crew member, Fishing crew member. Free online tax extension Gain or loss, Gain or Loss Government employee, State or local government employee. Free online tax extension , Foreign government or international organization employee. Free online tax extension Joint return, Joint return. Free online tax extension Lost income payments, Lost Income Payments Maximum earnings For 2011, What's New for 2013, Maximum earnings subject to SE tax. Free online tax extension Subject to, Maximum earnings subject to self-employment tax. Free online tax extension Methods for figuring net earnings, Methods for Figuring Net Earnings More than one business, More Than One Business, More than one business. Free online tax extension Nonfarm optional method, Nonfarm Optional Method Notary public, Notary public. Free online tax extension Optional methods Farm, Farm Optional Method Nonfarm, Nonfarm Optional Method Rate, SE tax rate. Free online tax extension Regular method, Regular Method Residing abroad, U. Free online tax extension S. Free online tax extension citizen or resident alien residing abroad. Free online tax extension Special rules and exceptions, Special Rules and Exceptions Tax rate, SE tax rate. Free online tax extension Time limit for posting income, The Social Security Administration (SSA) time limit for posting self-employment income. Free online tax extension Who must pay, Who Must Pay SE Tax? Why use an optional method, Why use an optional method? Section 179 Deduction, Section 179 deduction. Free online tax extension Property, Section 179 property. Free online tax extension Securities Dealer, Securities dealer. Free online tax extension Trader, Securities trader. Free online tax extension Self-employed health insurance deduction, Self-employed health insurance deduction. Free online tax extension Self-employment tax (see SE tax) Settlement payments, Settlement payments. Free online tax extension Short-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Signature, electronic, Electronic signatures. Free online tax extension Small Business Administration, Small Business Administration Small employer health insurance premiums credit, Credit for small employer health insurance premiums (Form 8941). Free online tax extension Social security coverage, Social security coverage. Free online tax extension Social security number (SSN), Social security number (SSN). Free online tax extension Sole proprietor, Sole proprietor. Free online tax extension , Sole proprietor or independent contractor. Free online tax extension Sport utility vehicle, Section 179 deduction. Free online tax extension Standard mileage rate, Standard mileage rate. Free online tax extension For 2011, What's New for 2013 Statutory employee, Statutory employee. Free online tax extension Suggestions for publication, Comments and suggestions. Free online tax extension SUV, Section 179 deduction. Free online tax extension T Tax home, Local transportation expenses. Free online tax extension , Travel expenses. Free online tax extension Tax preparation fees, Tax preparation fees. Free online tax extension Tax refund Claim for, Refunds. Free online tax extension Offset against debts, Offset against debts. Free online tax extension Tax return How to file, How Do I File? Who must file, Do I Have To File an Income Tax Return? Tax year, Accounting Periods Calendar, Calendar tax year. Free online tax extension Change in, Change in tax year. Free online tax extension Fiscal, Fiscal tax year. Free online tax extension Taxes Deduction for, Taxes Employment, Employment Taxes, Employment taxes. Free online tax extension Excise, Excise Taxes, Excise taxes. Free online tax extension Fuel, Fuel taxes. Free online tax extension Income, Income Tax, Income taxes. Free online tax extension Paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Free online tax extension Personal property, Personal property tax. Free online tax extension Real estate, Real estate taxes. Free online tax extension Sales, Sales tax. Free online tax extension Self-employment, Self-Employment (SE) Tax, Self-employment tax. Free online tax extension Taxpayer rights, Declaration of Taxpayer Rights Third parties, Payments to, Payments to third parties. Free online tax extension Tolls, Parking fees and tolls. Free online tax extension Trade discount, Trade discounts. Free online tax extension , Trade discounts. Free online tax extension Trade or business, Trade or business. Free online tax extension Trailer park owner, Trailer park owner. Free online tax extension Transportation expenses, Local transportation expenses. Free online tax extension Travel expenses, Travel expenses. Free online tax extension U Underpayment of tax penalty, Penalty for underpayment of tax. Free online tax extension Uniform capitalization rules, Uniform Capitalization Rules W Wages, Employees' Pay Work opportunity credit, Work opportunity credit (Form 5884). Free online tax extension Prev  Up     Home   More Online Publications
Español

Consumers Reports

Consumer Reports publishes a magazine of the same name. It is an independent, nonprofit testing and information organization serving only consumers. Consumer Reports is a comprehensive source for unbiased advice about products and services, personal finance, health and nutrition, and other categories based on their independent tests.

Contact the Agency or Department

Website: Consumers Reports http://www.consumerreports.org

E-mail:

Address: 101 Truman Ave.
Yonkers, NY 10703

Phone Number: 914-378-2000

Toll-free: 1-800-666-5261 (Consumer Reports magazine)
1-800-333-0663

The Free Online Tax Extension

Free online tax extension 10. Free online tax extension   Retirement Plans, Pensions, and Annuities Table of Contents What's New Reminder IntroductionThe General Rule. Free online tax extension Individual retirement arrangements (IRAs). Free online tax extension Civil service retirement benefits. Free online tax extension Useful Items - You may want to see: General InformationIn-plan rollovers to designated Roth accounts. Free online tax extension How To Report Cost (Investment in the Contract) Taxation of Periodic PaymentsExclusion limited to cost. Free online tax extension Exclusion not limited to cost. Free online tax extension Simplified Method Taxation of Nonperiodic PaymentsLump-Sum Distributions RolloversIn-plan rollovers to designated Roth accounts. Free online tax extension Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and Beneficiaries What's New For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). Free online tax extension However, these distributions are taken into account when determining the modified adjusted gross income threshold. Free online tax extension Distributions from a nonqualified retirement plan are included in net investment income. Free online tax extension See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. Free online tax extension Reminder Starting in 2013, the American Taxpayer Relief Act of 2012 expanded the rules for in-plan Roth rollovers to include more taxpayers. Free online tax extension For more information, see Designated Roth accounts discussed later. Free online tax extension Introduction This chapter discusses the tax treatment of distributions you receive from: An employee pension or annuity from a qualified plan, A disability retirement, and A purchased commercial annuity. Free online tax extension What is not covered in this chapter. Free online tax extension   The following topics are not discussed in this chapter. Free online tax extension The General Rule. Free online tax extension   This is the method generally used to determine the tax treatment of pension and annuity income from nonqualified plans (including commercial annuities). Free online tax extension For a qualified plan, you generally cannot use the General Rule unless your annuity starting date is before November 19, 1996. Free online tax extension For more information about the General Rule, see Publication 939, General Rule for Pensions and Annuities. Free online tax extension Individual retirement arrangements (IRAs). Free online tax extension   Information on the tax treatment of amounts you receive from an IRA is in chapter 17. Free online tax extension Civil service retirement benefits. Free online tax extension    If you are retired from the federal government (regular, phased, or disability retirement), see Publication 721, Tax Guide to U. Free online tax extension S. Free online tax extension Civil Service Retirement Benefits. Free online tax extension Publication 721 also covers the information that you need if you are the survivor or beneficiary of a federal employee or retiree who died. Free online tax extension Useful Items - You may want to see: Publication 575 Pension and Annuity Income 721 Tax Guide to U. Free online tax extension S. Free online tax extension Civil Service Retirement Benefits 939 General Rule for Pensions and Annuities Form (and Instructions) W-4P Withholding Certificate for Pension or Annuity Payments 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free online tax extension 4972 Tax on Lump-Sum Distributions 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts General Information Designated Roth accounts. Free online tax extension   A designated Roth account is a separate account created under a qualified Roth contribution program to which participants may elect to have part or all of their elective deferrals to a 401(k), 403(b), or 457(b) plan designated as Roth contributions. Free online tax extension Elective deferrals that are designated as Roth contributions are included in your income. Free online tax extension However, qualified distributions are not included in your income. Free online tax extension See Publication 575 for more information. Free online tax extension In-plan rollovers to designated Roth accounts. Free online tax extension   If you are a participant in a 401(k), 403(b), or 457(b) plan, your plan may permit you to roll over amounts in those plans to a designated Roth account within the same plan. Free online tax extension The rollover of any untaxed amounts must be included in income. Free online tax extension See Publication 575 for more information. Free online tax extension More than one program. Free online tax extension   If you receive benefits from more than one program under a single trust or plan of your employer, such as a pension plan and a profit-sharing plan, you may have to figure the taxable part of each pension or annuity contract separately. Free online tax extension Your former employer or the plan administrator should be able to tell you if you have more than one pension or annuity contract. Free online tax extension Section 457 deferred compensation plans. Free online tax extension    If you work for a state or local government or for a tax-exempt organization, you may be able to participate in a section 457 deferred compensation plan. Free online tax extension If your plan is an eligible plan, you are not taxed currently on pay that is deferred under the plan or on any earnings from the plan's investment of the deferred pay. Free online tax extension You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. Free online tax extension You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. Free online tax extension   Your 457(b) plan may have a designated Roth account option. Free online tax extension If so, you may be able to roll over amounts to the designated Roth account or make contributions. Free online tax extension Elective deferrals to a designated Roth account are included in your income. Free online tax extension Qualified distributions from a designated Roth account are not subject to tax. Free online tax extension   This chapter covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. Free online tax extension For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525, Taxable and Nontaxable Income. Free online tax extension   For general information on these deferred compensation plans, see Section 457 Deferred Compensation Plans in Publication 575. Free online tax extension Disability pensions. Free online tax extension   If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. Free online tax extension You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A until you reach minimum retirement age. Free online tax extension Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Free online tax extension    You may be entitled to a tax credit if you were permanently and totally disabled when you retired. Free online tax extension For information on the credit for the elderly or the disabled, see chapter 33. Free online tax extension   Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Free online tax extension Report the payments on Form 1040, lines 16a and 16b, or on Form 1040A, lines 12a and 12b. Free online tax extension    Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income. Free online tax extension For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. Free online tax extension   For more information on how to report disability pensions, including military and certain government disability pensions, see chapter 5. Free online tax extension Retired public safety officers. Free online tax extension   An eligible retired public safety officer can elect to exclude from income distributions of up to $3,000 made directly from a government retirement plan to the provider of accident, health, or long-term disability insurance. Free online tax extension See Insurance Premiums for Retired Public Safety Officers in Publication 575 for more information. Free online tax extension Railroad retirement benefits. Free online tax extension   Part of any railroad retirement benefits you receive is treated for tax purposes as social security benefits, and part is treated as an employee pension. Free online tax extension For information about railroad retirement benefits treated as social security benefits, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Free online tax extension For information about railroad retirement benefits treated as an employee pension, see Railroad Retirement Benefits in Publication 575. Free online tax extension Withholding and estimated tax. Free online tax extension   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable parts of amounts paid to you. Free online tax extension You can tell the payer how much to withhold, or not to withhold, by filing Form W-4P. Free online tax extension If you choose not to have tax withheld, or you do not have enough tax withheld, you may have to pay estimated tax. Free online tax extension   If you receive an eligible rollover distribution, you cannot choose not to have tax withheld. Free online tax extension Generally, 20% will be withheld, but no tax will be withheld on a direct rollover of an eligible rollover distribution. Free online tax extension See Direct rollover option under Rollovers, later. Free online tax extension   For more information, see Pensions and Annuities under Tax Withholding for 2014 in chapter 4. Free online tax extension Qualified plans for self-employed individuals. Free online tax extension   Qualified plans set up by self-employed individuals are sometimes called Keogh or H. Free online tax extension R. Free online tax extension 10 plans. Free online tax extension Qualified plans can be set up by sole proprietors, partnerships (but not a partner), and corporations. Free online tax extension They can cover self-employed persons, such as the sole proprietor or partners, as well as regular (common-law) employees. Free online tax extension    Distributions from a qualified plan are usually fully taxable because most recipients have no cost basis. Free online tax extension If you have an investment (cost) in the plan, however, your pension or annuity payments from a qualified plan are taxed under the Simplified Method. Free online tax extension For more information about qualified plans, see Publication 560, Retirement Plans for Small Business. Free online tax extension Purchased annuities. Free online tax extension   If you receive pension or annuity payments from a privately purchased annuity contract from a commercial organization, such as an insurance company, you generally must use the General Rule to figure the tax-free part of each annuity payment. Free online tax extension For more information about the General Rule, get Publication 939. Free online tax extension Also, see Variable Annuities in Publication 575 for the special provisions that apply to these annuity contracts. Free online tax extension Loans. Free online tax extension   If you borrow money from your retirement plan, you must treat the loan as a nonperiodic distribution from the plan unless certain exceptions apply. Free online tax extension This treatment also applies to any loan under a contract purchased under your retirement plan, and to the value of any part of your interest in the plan or contract that you pledge or assign. Free online tax extension This means that you must include in income all or part of the amount borrowed. Free online tax extension Even if you do not have to treat the loan as a nonperiodic distribution, you may not be able to deduct the interest on the loan in some situations. Free online tax extension For details, see Loans Treated as Distributions in Publication 575. Free online tax extension For information on the deductibility of interest, see chapter 23. Free online tax extension Tax-free exchange. Free online tax extension   No gain or loss is recognized on an exchange of an annuity contract for another annuity contract if the insured or annuitant remains the same. Free online tax extension However, if an annuity contract is exchanged for a life insurance or endowment contract, any gain due to interest accumulated on the contract is ordinary income. Free online tax extension See Transfers of Annuity Contracts in Publication 575 for more information about exchanges of annuity contracts. Free online tax extension How To Report If you file Form 1040, report your total annuity on line 16a and the taxable part on line 16b. Free online tax extension If your pension or annuity is fully taxable, enter it on line 16b; do not make an entry on line 16a. Free online tax extension If you file Form 1040A, report your total annuity on line 12a and the taxable part on line 12b. Free online tax extension If your pension or annuity is fully taxable, enter it on line 12b; do not make an entry on line 12a. Free online tax extension More than one annuity. Free online tax extension   If you receive more than one annuity and at least one of them is not fully taxable, enter the total amount received from all annuities on Form 1040, line 16a, or Form 1040A, line 12a, and enter the taxable part on Form 1040, line 16b, or Form 1040A, line 12b. Free online tax extension If all the annuities you receive are fully taxable, enter the total of all of them on Form 1040, line 16b, or Form 1040A, line 12b. Free online tax extension Joint return. Free online tax extension   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on Form 1040, line 16a, or Form 1040A, line 12a, and report the taxable part on Form 1040, line 16b, or Form 1040A, line 12b. Free online tax extension Cost (Investment in the Contract) Before you can figure how much, if any, of a distribution from your pension or annuity plan is taxable, you must determine your cost (your investment in the contract) in the pension or annuity. Free online tax extension Your total cost in the plan includes the total premiums, contributions, or other amounts you paid. Free online tax extension This includes the amounts your employer contributed that were taxable to you when paid. Free online tax extension Cost does not include any amounts you deducted or were excluded from your income. Free online tax extension From this total cost, subtract any refunds of premiums, rebates, dividends, unrepaid loans that were not included in your income, or other tax-free amounts that you received by the later of the annuity starting date or the date on which you received your first payment. Free online tax extension Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed. Free online tax extension Designated Roth accounts. Free online tax extension   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. Free online tax extension Your cost will also include any in-plan Roth rollovers you included in income. Free online tax extension Foreign employment contributions. Free online tax extension   If you worked in a foreign country and contributions were made to your retirement plan, special rules apply in determining your cost. Free online tax extension See Foreign employment contributions under Cost (Investment in the Contract) in Publication 575. Free online tax extension Taxation of Periodic Payments Fully taxable payments. Free online tax extension   Generally, if you did not pay any part of the cost of your employee pension or annuity and your employer did not withhold part of the cost from your pay while you worked, the amounts you receive each year are fully taxable. Free online tax extension You must report them on your income tax return. Free online tax extension Partly taxable payments. Free online tax extension   If you paid part of the cost of your pension or annuity, you are not taxed on the part of the pension or annuity you receive that represents a return of your cost. Free online tax extension The rest of the amount you receive is generally taxable. Free online tax extension You figure the tax-free part of the payment using either the Simplified Method or the General Rule. Free online tax extension Your annuity starting date and whether or not your plan is qualified determine which method you must or may use. Free online tax extension   If your annuity starting date is after November 18, 1996, and your payments are from a qualified plan, you must use the Simplified Method. Free online tax extension Generally, you must use the General Rule if your annuity is paid under a nonqualified plan, and you cannot use this method if your annuity is paid under a qualified plan. Free online tax extension   If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. Free online tax extension   If your annuity is paid under a qualified plan and 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. Free online tax extension Exclusion limit. Free online tax extension   Your annuity starting date determines the total amount of annuity payments that you can exclude from your taxable income over the years. Free online tax extension Once your annuity starting date is determined, it does not change. Free online tax extension If you calculate the taxable portion of your annuity payments using the simplified method worksheet, the annuity starting date determines the recovery period for your cost. Free online tax extension That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. Free online tax extension Exclusion limited to cost. Free online tax extension   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost cannot exceed your total cost. Free online tax extension Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Free online tax extension This deduction is not subject to the 2%-of-adjusted-gross-income limit. Free online tax extension Exclusion not limited to cost. Free online tax extension   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. Free online tax extension If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. Free online tax extension The total exclusion may be more than your cost. Free online tax extension Simplified Method Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. Free online tax extension For an annuity that is payable for the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. Free online tax extension For any other annuity, this number is the number of monthly annuity payments under the contract. Free online tax extension Who must use the Simplified Method. Free online tax extension   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you both: Receive pension or annuity payments from a qualified employee plan, qualified employee annuity, or a tax-sheltered annuity (403(b)) plan, and On your annuity starting date, you were either under age 75, or entitled to less than 5 years of guaranteed payments. Free online tax extension Guaranteed payments. Free online tax extension   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. Free online tax extension If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. Free online tax extension How to use the Simplified Method. Free online tax extension    Complete the Simplified Method Worksheet in Publication 575 to figure your taxable annuity for 2013. Free online tax extension Single-life annuity. Free online tax extension    If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. Free online tax extension Enter on line 3 the number shown for your age at the annuity starting date. Free online tax extension Multiple-lives annuity. Free online tax extension   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. Free online tax extension Enter on line 3 the number shown for the combined ages of you and the youngest survivor annuitant at the annuity starting date. Free online tax extension   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. Free online tax extension Instead you must use Table 1 and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. Free online tax extension    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity next year. Free online tax extension Example. Free online tax extension Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. Free online tax extension Bill's annuity starting date is January 1, 2013. Free online tax extension The benefits are to be paid for the joint lives of Bill and his wife Kathy, age 65. Free online tax extension Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. Free online tax extension Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. Free online tax extension Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. Free online tax extension Because his annuity is payable over the lives of more than one annuitant, he uses his and Kathy's combined ages and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet. Free online tax extension His completed worksheet is shown in Worksheet 10-A. Free online tax extension Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. Free online tax extension Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. Free online tax extension The full amount of any annuity payments received after 310 payments are paid must be included in gross income. Free online tax extension If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. Free online tax extension This deduction is not subject to the 2%-of-adjusted- gross-income limit. Free online tax extension Worksheet 10-A. Free online tax extension Simplified Method Worksheet for Bill Smith 1. Free online tax extension Enter the total pension or annuity payments received this year. Free online tax extension Also, add this amount to the total for Form 1040, line 16a, or Form 1040A, line 12a 1. Free online tax extension 14,400 2. Free online tax extension Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion*. Free online tax extension See Cost (Investment in the Contract) , earlier 2. Free online tax extension 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). Free online tax extension Otherwise, go to line 3. Free online tax extension         3. Free online tax extension Enter the appropriate number from Table 1 below. Free online tax extension But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. Free online tax extension 310     4. Free online tax extension Divide line 2 by the number on line 3 4. Free online tax extension 100     5. Free online tax extension Multiply line 4 by the number of months for which this year's payments were made. Free online tax extension If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Free online tax extension Otherwise, go to line 6 5. Free online tax extension 1,200     6. Free online tax extension Enter any amounts previously recovered tax free in years after 1986. Free online tax extension This is the amount shown on line 10 of your worksheet for last year 6. Free online tax extension -0-     7. Free online tax extension Subtract line 6 from line 2 7. Free online tax extension 31,000     8. Free online tax extension Enter the smaller of line 5 or line 7 8. Free online tax extension 1,200 9. Free online tax extension Taxable amount for year. Free online tax extension Subtract line 8 from line 1. Free online tax extension Enter the result, but not less than zero. Free online tax extension Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b 9. Free online tax extension 13,200   Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Free online tax extension If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers in Publication 575 before entering an amount on your tax return. Free online tax extension     10. Free online tax extension Was your annuity starting date before 1987? □ Yes. Free online tax extension STOP. Free online tax extension Do not complete the rest of this worksheet. Free online tax extension  ☑ No. Free online tax extension Add lines 6 and 8. Free online tax extension This is the amount you have recovered tax free through 2013. Free online tax extension You will need this number if you need to fill out this worksheet next year 10. Free online tax extension 1,200 11. Free online tax extension Balance of cost to be recovered. Free online tax extension Subtract line 10 from line 2. Free online tax extension If zero, you will not have to complete this worksheet next year. Free online tax extension The payments you receive next year will generally be fully taxable 11. Free online tax extension 29,800 TABLE 1 FOR LINE 3 ABOVE   AND your annuity starting date was— IF the age at annuity starting date was. Free online tax extension . Free online tax extension . Free online tax extension before November 19, 1996, enter on line 3. Free online tax extension . Free online tax extension . Free online tax extension after November 18, 1996, enter on line 3. Free online tax extension . Free online tax extension . Free online tax extension 55 or under 300 360 56–60 260 310 61–65 240 260 66–70 170 210 71 or older 120 160 TABLE 2 FOR LINE 3 ABOVE IF the combined ages at annuity starting date were. Free online tax extension . Free online tax extension . Free online tax extension   THEN enter on line 3. Free online tax extension . Free online tax extension . Free online tax extension 110 or under   410 111–120   360 121–130   310 131–140   260 141 or older   210 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Free online tax extension Who must use the General Rule. Free online tax extension   You must use the General Rule if you receive pension or annuity payments from: A nonqualified plan (such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan), or A qualified plan if you are age 75 or older on your annuity starting date and your annuity payments are guaranteed for at least 5 years. Free online tax extension Annuity starting before November 19, 1996. Free online tax extension   If your annuity starting date is after July 1, 1986, and before November 19, 1996, you had to use the General Rule for either circumstance just described. Free online tax extension You also had to use it for any fixed-period annuity. Free online tax extension If you did not have to use the General Rule, you could have chosen to use it. Free online tax extension If your annuity starting date is before July 2, 1986, you had to use the General Rule unless you could use the Three-Year Rule. Free online tax extension   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. Free online tax extension Who cannot use the General Rule. Free online tax extension   You cannot use the General Rule if you receive your pension or annuity from a qualified plan and none of the circumstances described in the preceding discussions apply to you. Free online tax extension See Who must use the Simplified Method , earlier. Free online tax extension More information. Free online tax extension   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. Free online tax extension Taxation of Nonperiodic Payments Nonperiodic distributions are also known as amounts not received as an annuity. Free online tax extension They include all payments other than periodic payments and corrective distributions. Free online tax extension Examples of nonperiodic payments are cash withdrawals, distributions of current earnings, certain loans, and the value of annuity contracts transferred without full and adequate consideration. Free online tax extension Corrective distributions of excess plan contributions. Free online tax extension   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. Free online tax extension To correct an excess, your plan may distribute it to you (along with any income earned on the excess). Free online tax extension For information on plan contribution limits and how to report corrective distributions of excess contributions, see Retirement Plan Contributions under Employee Compensation in Publication 525. Free online tax extension Figuring the taxable amount of nonperiodic payments. Free online tax extension   How you figure the taxable amount of a nonperiodic distribution depends on whether it is made before the annuity starting date, or on or after the annuity starting date. Free online tax extension If it is made before the annuity starting date, its tax treatment also depends on whether it is made under a qualified or nonqualified plan. Free online tax extension If it is made under a nonqualified plan, its tax treatment depends on whether it fully discharges the contract, is received under certain life insurance or endowment contracts, or is allocable to an investment you made before August 14, 1982. Free online tax extension Annuity starting date. Free online tax extension   The annuity starting date is either the first day of the first period for which you receive an annuity payment under the contract or the date on which the obligation under the contract becomes fixed, whichever is later. Free online tax extension Distribution on or after annuity starting date. Free online tax extension   If you receive a nonperiodic payment from your annuity contract on or after the annuity starting date, you generally must include all of the payment in gross income. Free online tax extension Distribution before annuity starting date. Free online tax extension   If you receive a nonperiodic distribution before the annuity starting date from a qualified retirement plan, you generally can allocate only part of it to the cost of the contract. Free online tax extension You exclude from your gross income the part that you allocate to the cost. Free online tax extension You include the remainder in your gross income. Free online tax extension   If you receive a nonperiodic distribution before the annuity starting date from a plan other than a qualified retirement plan (nonqualified plan), it is allocated first to earnings (the taxable part) and then to the cost of the contract (the tax-free part). Free online tax extension This allocation rule applies, for example, to a commercial annuity contract you bought directly from the issuer. Free online tax extension    Distributions from nonqualified plans are subject to the net investment income tax. Free online tax extension See the Instructions for Form 8960. Free online tax extension   For more information, see Figuring the Taxable Amount under Taxation of Nonperiodic Payments in Publication 575. Free online tax extension Lump-Sum Distributions This section on lump-sum distributions only applies if the plan participant was born before January 2, 1936. Free online tax extension If the plan participant was born after January 1, 1936, the taxable amount of this nonperiodic payment is reported as discussed earlier. Free online tax extension A lump-sum distribution is the distribution or payment in one tax year of a plan participant's entire balance from all of the employer's qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans). Free online tax extension A distribution from a nonqualified plan (such as a privately purchased commercial annuity or a section 457 deferred compensation plan of a state or local government or tax-exempt organization) cannot qualify as a lump-sum distribution. Free online tax extension The participant's entire balance from a plan does not include certain forfeited amounts. Free online tax extension It also does not include any deductible voluntary employee contributions allowed by the plan after 1981 and before 1987. Free online tax extension For more information about distributions that do not qualify as lump-sum distributions, see Distributions that do not qualify under Lump-Sum Distributions in Publication 575. Free online tax extension If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. Free online tax extension The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. Free online tax extension The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. Free online tax extension You may be able to use the 10-year tax option, discussed later, to figure tax on the ordinary income part. Free online tax extension Use Form 4972 to figure the separate tax on a lump-sum distribution using the optional methods. Free online tax extension The tax figured on Form 4972 is added to the regular tax figured on your other income. Free online tax extension This may result in a smaller tax than you would pay by including the taxable amount of the distribution as ordinary income in figuring your regular tax. Free online tax extension How to treat the distribution. Free online tax extension   If you receive a lump-sum distribution, you may have the following options for how you treat the taxable part. Free online tax extension Report the part of the distribution from participation before 1974 as a capital gain (if you qualify) and the part from participation after 1973 as ordinary income. Free online tax extension Report the part of the distribution from participation before 1974 as a capital gain (if you qualify) and use the 10-year tax option to figure the tax on the part from participation after 1973 (if you qualify). Free online tax extension Use the 10-year tax option to figure the tax on the total taxable amount (if you qualify). Free online tax extension Roll over all or part of the distribution. Free online tax extension See Rollovers , later. Free online tax extension No tax is currently due on the part rolled over. Free online tax extension Report any part not rolled over as ordinary income. Free online tax extension Report the entire taxable part of the distribution as ordinary income on your tax return. Free online tax extension   The first three options are explained in the following discussions. Free online tax extension Electing optional lump-sum treatment. Free online tax extension   You can choose to use the 10-year tax option or capital gain treatment only once after 1986 for any plan participant. Free online tax extension If you make this choice, you cannot use either of these optional treatments for any future distributions for the participant. Free online tax extension Taxable and tax-free parts of the distribution. Free online tax extension    The taxable part of a lump-sum distribution is the employer's contributions and income earned on your account. Free online tax extension You may recover your cost in the lump sum and any net unrealized appreciation (NUA) in employer securities tax free. Free online tax extension Cost. Free online tax extension   In general, your cost is the total of: The plan participant's nondeductible contributions to the plan, The plan participant's taxable costs of any life insurance contract distributed, Any employer contributions that were taxable to the plan participant, and Repayments of any loans that were taxable to the plan participant. Free online tax extension You must reduce this cost by amounts previously distributed tax free. Free online tax extension Net unrealized appreciation (NUA). Free online tax extension   The NUA in employer securities (box 6 of Form 1099-R) received as part of a lump-sum distribution is generally tax free until you sell or exchange the securities. Free online tax extension (For more information, see Distributions of employer securities under Taxation of Nonperiodic Payments in Publication 575. Free online tax extension ) Capital Gain Treatment Capital gain treatment applies only to the taxable part of a lump-sum distribution resulting from participation in the plan before 1974. Free online tax extension The amount treated as capital gain is taxed at a 20% rate. Free online tax extension You can elect this treatment only once for any plan participant, and only if the plan participant was born before January 2, 1936. Free online tax extension Complete Part II of Form 4972 to choose the 20% capital gain election. Free online tax extension For more information, see Capital Gain Treatment under Lump-Sum Distributions in Publication 575. Free online tax extension 10-Year Tax Option The 10-year tax option is a special formula used to figure a separate tax on the ordinary income part of a lump-sum distribution. Free online tax extension You pay the tax only once, for the year in which you receive the distribution, not over the next 10 years. Free online tax extension You can elect this treatment only once for any plan participant, and only if the plan participant was born before January 2, 1936. Free online tax extension The ordinary income part of the distribution is the amount shown in box 2a of the Form 1099-R given to you by the payer, minus the amount, if any, shown in box 3. Free online tax extension You also can treat the capital gain part of the distribution (box 3 of Form 1099-R) as ordinary income for the 10-year tax option if you do not choose capital gain treatment for that part. Free online tax extension Complete Part III of Form 4972 to choose the 10-year tax option. Free online tax extension You must use the special Tax Rate Schedule shown in the instructions for Part III to figure the tax. Free online tax extension Publication 575 illustrates how to complete Form 4972 to figure the separate tax. Free online tax extension Rollovers If you withdraw cash or other assets from a qualified retirement plan in an eligible rollover distribution, you can defer tax on the distribution by rolling it over to another qualified retirement plan or a traditional IRA. Free online tax extension For this purpose, the following plans are qualified retirement plans. Free online tax extension A qualified employee plan. Free online tax extension A qualified employee annuity. Free online tax extension A tax-sheltered annuity plan (403(b) plan). Free online tax extension An eligible state or local government section 457 deferred compensation plan. Free online tax extension Eligible rollover distributions. Free online tax extension   Generally, an eligible rollover distribution is any distribution of all or any part of the balance to your credit in a qualified retirement plan. Free online tax extension For information about exceptions to eligible rollover distributions, see Publication 575. Free online tax extension Rollover of nontaxable amounts. Free online tax extension   You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) made to another qualified retirement plan that is a qualified employee plan or a 403(b) plan, or to a traditional or Roth IRA. Free online tax extension The transfer must be made either through a direct rollover to a qualified plan or 403(b) plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to a traditional or Roth IRA. Free online tax extension   If you roll over only part of a distribution that includes both taxable and nontaxable amounts, the amount you roll over is treated as coming first from the taxable part of the distribution. Free online tax extension   Any after-tax contributions that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. Free online tax extension To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. Free online tax extension For more information, see the Form 8606 instructions. Free online tax extension Direct rollover option. Free online tax extension   You can choose to have any part or all of an eligible rollover distribution paid directly to another qualified retirement plan that accepts rollover distributions or to a traditional or Roth IRA. Free online tax extension 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. Free online tax extension Payment to you option. Free online tax extension   If an eligible rollover distribution is paid to you, 20% generally will be withheld for income tax. Free online tax extension However, the full amount is treated as distributed to you even though you actually receive only 80%. Free online tax extension 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 or Roth IRA. Free online tax extension (See Pensions and Annuities under Tax Withholding for 2014 in chapter 4. Free online tax extension )    If you decide to roll over an amount equal to the distribution before withholding, your contribution to the new plan or IRA must include other money (for example, from savings or amounts borrowed) to replace the amount withheld. Free online tax extension Time for making rollover. Free online tax extension   You generally must complete the rollover of an eligible rollover distribution paid to you by the 60th day following the day on which you receive the distribution from your employer's plan. Free online tax extension (If an amount distributed to you becomes a frozen deposit in a financial institution during the 60-day period after you receive it, the rollover period is extended for the period during which the distribution is in a frozen deposit in a financial institution. Free online tax extension )   The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. Free online tax extension   The administrator of a qualified plan must give you a written explanation of your distribution options within a reasonable period of time before making an eligible rollover distribution. Free online tax extension Qualified domestic relations order (QDRO). Free online tax extension   You may be able to roll over tax free all or part of a distribution from a qualified retirement plan that you receive under a QDRO. Free online tax extension If you receive the distribution as an employee's spouse or former spouse (not as a nonspousal beneficiary), the rollover rules apply to you as if you were the employee. Free online tax extension You can roll over the distribution from the plan into a traditional IRA or to another eligible retirement plan. Free online tax extension See Rollovers in Publication 575 for more information on benefits received under a QDRO. Free online tax extension Rollover by surviving spouse. Free online tax extension   You may be able to roll over tax free all or part of a distribution from a qualified retirement plan you receive as the surviving spouse of a deceased employee. Free online tax extension The rollover rules apply to you as if you were the employee. Free online tax extension You can roll over a distribution into a qualified retirement plan or a traditional or Roth IRA. Free online tax extension For a rollover to a Roth IRA, see Rollovers to Roth IRAs , later. Free online tax extension    A distribution paid to a beneficiary other than the employee's surviving spouse is generally not an eligible rollover distribution. Free online tax extension However, see Rollovers by nonspouse beneficiary next. Free online tax extension Rollovers by nonspouse beneficiary. Free online tax extension   If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you may be able to roll over tax free all or a portion of a distribution you receive from an eligible retirement plan of the employee. Free online tax extension The distribution must be a direct trustee-to-trustee transfer to your traditional or Roth IRA that was set up to receive the distribution. Free online tax extension The transfer will be treated as an eligible rollover distribution and the receiving plan will be treated as an inherited IRA. Free online tax extension For information on inherited IRAs, see What if You Inherit an IRA? in chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs). Free online tax extension Retirement bonds. Free online tax extension   If you redeem retirement bonds purchased under a qualified bond purchase plan, you can roll over the proceeds that exceed your basis tax free into an IRA (as discussed in Publication 590) or a qualified employer plan. Free online tax extension Designated Roth accounts. Free online tax extension   You can roll over an eligible rollover distribution from a designated Roth account into another designated Roth account or a Roth IRA. Free online tax extension If you want to roll over the part of the distribution that is not included in income, you must make a direct rollover of the entire distribution or you can roll over the entire amount (or any portion) to a Roth IRA. Free online tax extension For more information on rollovers from designated Roth accounts, see Rollovers in Publication 575. Free online tax extension In-plan rollovers to designated Roth accounts. Free online tax extension   If you are a plan participant in a 401(k), 403(b), or 457(b) plan, your plan may permit you to roll over amounts in those plans to a designated Roth account within the same plan. Free online tax extension The rollover of any untaxed amounts must be included in income. Free online tax extension See Designated Roth accounts under Rollovers in Publication 575 for more information. Free online tax extension Rollovers to Roth IRAs. Free online tax extension   You can roll over distributions directly from a qualified retirement plan (other than a designated Roth account) to a Roth IRA. Free online tax extension   You must include in your gross income distributions from a qualified retirement plan (other than a designated Roth account) that you would have had to include in income if you had not rolled them over into a Roth IRA. Free online tax extension You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of contributions to the plan that were taxable to you when paid. Free online tax extension In addition, the 10% tax on early distributions does not apply. Free online tax extension More information. Free online tax extension   For more information on the rules for rolling over distributions, see Rollovers in Publication 575. Free online tax extension Special Additional Taxes To discourage the use of pension funds for purposes other than normal retirement, the law imposes additional taxes on early distributions of those funds and on failures to withdraw the funds timely. Free online tax extension Ordinarily, you will not be subject to these taxes if you roll over all early distributions you receive, as explained earlier, and begin drawing out the funds at a normal retirement age, in reasonable amounts over your life expectancy. Free online tax extension These special additional taxes are the taxes on: Early distributions, and Excess accumulation (not receiving minimum distributions). Free online tax extension These taxes are discussed in the following sections. Free online tax extension If you must pay either of these taxes, report them on Form 5329. Free online tax extension However, you do not have to file Form 5329 if you owe only the tax on early distributions and your Form 1099-R correctly shows a “1” in box 7. Free online tax extension Instead, enter 10% of the taxable part of the distribution on Form 1040, line 58 and write “No” under the heading “Other Taxes” to the left of line 58. Free online tax extension Even if you do not owe any of these taxes, you may have to complete Form 5329 and attach it to your Form 1040. Free online tax extension This applies if you meet an exception to the tax on early distributions but box 7 of your Form 1099-R does not indicate an exception. Free online tax extension Tax on Early Distributions Most distributions (both periodic and nonperiodic) from qualified retirement plans and nonqualified annuity contracts made to you before you reach age 59½ are subject to an additional tax of 10%. Free online tax extension This tax applies to the part of the distribution that you must include in gross income. Free online tax extension For this purpose, a qualified retirement plan is: A qualified employee plan, A qualified employee annuity plan, A tax-sheltered annuity plan, or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). Free online tax extension 5% rate on certain early distributions from deferred annuity contracts. Free online tax extension   If an early withdrawal from a deferred annuity is otherwise subject to the 10% additional tax, a 5% rate may apply instead. Free online tax extension A 5% rate applies to distributions under a written election providing a specific schedule for the distribution of your interest in the contract if, as of March 1, 1986, you had begun receiving payments under the election. Free online tax extension On line 4 of Form 5329, multiply the line 3 amount by 5% instead of 10%. Free online tax extension Attach an explanation to your return. Free online tax extension Distributions from Roth IRAs allocable to a rollover from an eligible retirement plan within the 5-year period. Free online tax extension   If, within the 5-year period starting with the first day of your tax year in which you rolled over an amount from an eligible retirement plan to a Roth IRA, you take a distribution from the Roth IRA, you may have to pay the additional 10% tax on early distributions. Free online tax extension You generally must pay the 10% additional tax on any amount attributable to the part of the rollover that you had to include in income. Free online tax extension The additional tax is figured on Form 5329. Free online tax extension For more information, see Form 5329 and its instructions. Free online tax extension For information on qualified distributions from Roth IRAs, see Additional Tax on Early Distributions in chapter 2 of Publication 590. Free online tax extension Distributions from designated Roth accounts allocable to in-plan Roth rollovers within the 5-year period. Free online tax extension   If, within the 5-year period starting with the first day of your tax year in which you rolled over an amount from a 401(k), 403(b), or 457(b) plan to a designated Roth account, you take a distribution from the designated Roth account, you may have to pay the additional 10% tax on early distributions. Free online tax extension You generally must pay the 10% additional tax on any amount attributable to the part of the in-plan rollover that you had to include in income. Free online tax extension The additional tax is figured on Form 5329. Free online tax extension For more information, see Form 5329 and its instructions. Free online tax extension For information on qualified distributions from designated Roth accounts, see Designated Roth accounts under Taxation of Periodic Payments in Publication 575. Free online tax extension Exceptions to tax. Free online tax extension    Certain early distributions are excepted from the early distribution tax. Free online tax extension If the payer knows that an exception applies to your early distribution, distribution code “2,” “3,” or “4” should be shown in box 7 of your Form 1099-R and you do not have to report the distribution on Form 5329. Free online tax extension If an exception applies but distribution code “1” (early distribution, no known exception) is shown in box 7, you must file Form 5329. Free online tax extension Enter the taxable amount of the distribution shown in box 2a of your Form 1099-R on line 1 of Form 5329. Free online tax extension On line 2, enter the amount that can be excluded and the exception number shown in the Form 5329 instructions. Free online tax extension    If distribution code “1” is incorrectly shown on your Form 1099-R for a distribution received when you were age 59½ or older, include that distribution on Form 5329. Free online tax extension Enter exception number “12” on line 2. Free online tax extension General exceptions. Free online tax extension   The tax does not apply to distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after your separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. Free online tax extension Additional exceptions for qualified retirement plans. Free online tax extension   The tax does not apply to distributions that are: From a qualified retirement plan (other than an IRA) after your separation from service in or after the year you reached age 55 (age 50 for qualified public safety employees), From a qualified retirement plan (other than an IRA) to an alternate payee under a qualified domestic relations order, From a qualified retirement plan to the extent you have deductible medical expenses that exceed 10% (or 7. Free online tax extension 5% if you or your spouse are age 65 or older) of your adjusted gross income, whether or not you itemize your deductions for the year, From an employer plan under a written election that provides a specific schedule for distribution of your entire interest if, as of March 1, 1986, you had separated from service and had begun receiving payments under the election, From an employee stock ownership plan for dividends on employer securities held by the plan, From a qualified retirement plan due to an IRS levy of the plan, From elective deferral accounts under 401(k) or 403(b) plans or similar arrangements that are qualified reservist distributions, or Phased retirement annuity payments made to federal employees. Free online tax extension See Pub. Free online tax extension 721 for more information on the phased retirement program. Free online tax extension Qualified public safety employees. Free online tax extension   If you are a qualified public safety employee, distributions made from a governmental defined benefit pension plan are not subject to the additional tax on early distributions. Free online tax extension You are a qualified public safety employee if you provide police protection, firefighting services, or emergency medical services for a state or municipality, and you separated from service in or after the year you attained age 50. Free online tax extension Qualified reservist distributions. Free online tax extension   A qualified reservist distribution is not subject to the additional tax on early distributions. Free online tax extension A qualified reservist distribution is a distribution (a) from elective deferrals under a section 401(k) or 403(b) plan, or a similar arrangement, (b) to an individual ordered or called to active duty (because he or she is a member of a reserve component) for a period of more than 179 days or for an indefinite period, and (c) made during the period beginning on the date of the order or call and ending at the close of the active duty period. Free online tax extension You must have been ordered or called to active duty after September 11, 2001. Free online tax extension For more information, see Qualified reservist distributions under Special Additional Taxes in Publication 575. Free online tax extension Additional exceptions for nonqualified annuity contracts. Free online tax extension   The tax does not apply to distributions from: A deferred annuity contract to the extent allocable to investment in the contract before August 14, 1982, A deferred annuity contract under a qualified personal injury settlement, A deferred annuity contract purchased by your employer upon termination of a qualified employee plan or qualified employee annuity plan and held by your employer until your separation from service, or An immediate annuity contract (a single premium contract providing substantially equal annuity payments that start within 1 year from the date of purchase and are paid at least annually). Free online tax extension Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date (defined later). Free online tax extension The payments each year cannot be less than the required minimum distribution. Free online tax extension Required distributions not made. Free online tax extension   If the actual distributions to you in any year are less than the minimum required distribution for that year, you are subject to an additional tax. Free online tax extension The tax equals 50% of the part of the required minimum distribution that was not distributed. Free online tax extension   For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan)(for benefits accruing after 1986). Free online tax extension Waiver. Free online tax extension   The tax may be waived if you establish that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. Free online tax extension See the Instructions for Form 5329 for the procedure to follow if you believe you qualify for a waiver of this tax. Free online tax extension State insurer delinquency proceedings. Free online tax extension   You might not receive the minimum distribution because assets are invested in a contract issued by an insurance company in state insurer delinquency proceedings. Free online tax extension If your payments are reduced below the minimum due to these proceedings, you should contact your plan administrator. Free online tax extension Under certain conditions, you will not have to pay the 50% excise tax. Free online tax extension Required beginning date. Free online tax extension   Unless the rule for 5% owners applies, you generally must begin to receive distributions from your qualified retirement plan by April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. Free online tax extension However, your plan may require you to begin to receive distributions by April 1 of the year that follows the year in which you reach age 70½, even if you have not retired. Free online tax extension   If you reached age 70½ in 2013, you may be required to receive your first distribution by April 1, 2014. Free online tax extension Your required distribution then must be made for 2014 by December 31, 2014. Free online tax extension 5% owners. Free online tax extension   If you are a 5% owner, you must begin to receive distributions by April 1 of the year that follows the calendar year in which you reach age 70½. Free online tax extension   You are a 5% owner if, for the plan year ending in the calendar year in which you reach age 70½, you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the outstanding stock (or more than 5% of the total voting power of all stock) of the employer, or more than 5% of the capital or profits interest in the employer. Free online tax extension Age 70½. Free online tax extension   You reach age 70½ on the date that is 6 calendar months after the date of your 70th birthday. Free online tax extension   For example, if you are retired and your 70th birthday was on June 30, 2013, you were age 70½ on December 30, 2013. Free online tax extension If your 70th birthday was on July 1, 2013, you reached age 70½ on January 1, 2014. Free online tax extension Required distributions. Free online tax extension   By the required beginning date, as explained earlier, you must either: Receive your entire interest in the plan (for a tax-sheltered annuity, your entire benefit accruing after 1986), or Begin receiving periodic distributions in annual amounts calculated to distribute your entire interest (for a tax-sheltered annuity, your entire benefit accruing after 1986) over your life or life expectancy or over the joint lives or joint life expectancies of you and a designated beneficiary (or over a shorter period). Free online tax extension Additional information. Free online tax extension   For more information on this rule, see Tax on Excess Accumulation in Publication 575. Free online tax extension Form 5329. Free online tax extension   You must file Form 5329 if you owe tax because you did not receive a minimum required distribution from your qualified retirement plan. Free online tax extension Survivors and Beneficiaries Generally, a survivor or beneficiary reports pension or annuity income in the same way the plan participant would have. Free online tax extension However, some special rules apply. Free online tax extension See Publication 575 for more information. Free online tax extension Survivors of employees. Free online tax extension   If you are entitled to receive a survivor annuity on the death of an employee who died, you can exclude part of each annuity payment as a tax-free recovery of the employee's investment in the contract. Free online tax extension You must figure the taxable and tax-free parts of your annuity payments using the method that applies as if you were the employee. Free online tax extension Survivors of retirees. Free online tax extension   If you receive benefits as a survivor under a joint and survivor annuity, include those benefits in income in the same way the retiree would have included them in income. Free online tax extension If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule and recovered all of the cost tax free, your survivor payments are fully taxable. Free online tax extension    If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage to your initial survivor annuity payment called for in the contract. Free online tax extension The resulting tax-free amount will then remain fixed. Free online tax extension Any increases in the survivor annuity are fully taxable. Free online tax extension    If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. Free online tax extension This amount remains fixed even if the annuity payments are increased or decreased. Free online tax extension See Simplified Method , earlier. Free online tax extension   In any case, if the annuity starting date is after 1986, the total exclusion over the years cannot be more than the cost. Free online tax extension Estate tax deduction. Free online tax extension   If your annuity was a joint and survivor annuity that was included in the decedent's estate, an estate tax may have been paid on it. Free online tax extension You can deduct the part of the total estate tax that was based on the annuity. Free online tax extension The deceased annuitant must have died after the annuity starting date. Free online tax extension (For details, see section 1. Free online tax extension 691(d)-1 of the regulations. Free online tax extension ) Deduct it in equal amounts over your remaining life expectancy. Free online tax extension   If the decedent died before the annuity starting date of a deferred annuity contract and you receive a death benefit under that contract, the amount you receive (either in a lump sum or as periodic payments) in excess of the decedent's cost is included in your gross income as income in respect of a decedent for which you may be able to claim an estate tax deduction. Free online tax extension   You can take the estate tax deduction as an itemized deduction on Schedule A, Form 1040. Free online tax extension This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. Free online tax extension See Publication 559, Survivors, Executors, and Administrators, for more information on the estate tax deduction. Free online tax extension Prev  Up  Next   Home   More Online Publications